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24 October

Autumn Budget and Beyond: Policies to cement Britain’s place as a Clean Energy Superpower

Autumn Budget and Beyond: Policies to cement Britain’s place as a Clean Energy Superpower

Ian Radley, Chief Commercial Officer, National Gas

As we approach another busy few months of important policy announcements, smart investment and clear policy signals will be essential for accelerating Britain’s journey to net zero, strengthening energy security, and maintaining our industrial competitiveness.

At National Gas, we are pioneering a three-molecule strategy - with ambitious plans to repurpose some of our world-class transmission network to transport hydrogen and carbon dioxide, whilst continuing to deliver the natural gas that our country relies on for decades to come. 

Recent months have brought encouraging momentum in this endeavour.

The Government’s commitment to the Scottish Cluster CCS programme was a major milestone. To enable the Scottish Cluster’s full potential, our SCO₂T Connect project will repurpose 174 miles of existing infrastructure and add 37 miles of new pipeline to transport captured CO₂ from Scotland’s Central Belt to offshore storage at St Fergus.

The Scottish Cluster could abate up to 10 million tonnes of CO₂ annually by 2030, helping decarbonise key industrial sites such as Grangemouth, Mossmorran, and Peterhead power station. As well as the storage component, this onshore pipeline infrastructure will be the linchpin that empowers Scottish industry to thrive in a low-carbon future.

Analysis by CBI Economics projects that SCO₂T Connect will support nearly 15,000 jobs, deliver £1.8 billion in gross value added, and generate £132 million in tax receipts. This is the kind of return on investment that drives long-term growth while decarbonising industry.

On hydrogen, progress is also building. Regulatory funding approvals for key pipeline projects and policy developments in blending on the National Transmission System signal hydrogen’s critical role in meeting the UK’s energy ambitions. But there’s more we can do in the coming months.

We will continue to work with government to confirm plans for a core hydrogen network, using Project Union as the proposed delivery vehicle. This national network could unlock £13 billion in private investment, support 185,000 jobs, and generate £650 million in additional tax revenues by 2050. Ofgem’s recent decision to fund our early design work for more than 50% of this national hydrogen network is a welcome development.

Similarly, a positive decision on hydrogen blending—starting at 2% and building towards 5% will reduce project risk, boost investor confidence and turbocharge Britain’s hydrogen economy. 

At National Gas, we’ve shown blending hydrogen into the methane network can work through our pioneering FutureGrid innovation programme and our most recent trial at Brigg Power Station, in partnership with Centrica.
In the coming weeks, supporting government to deliver these vital policy signals will be integral to moving these ambitious projects forward.

But as we look to the future, we must not lose sight of the importance of investing in Britain’s national gas network today - ensuring it continues to meet the needs of the public and our industries, just as it always has.

At National Gas, we stand ready to help power that progress - cementing our country’s place as a clean energy superpower while continuing to fuel our industries and securing Britain’s energy.

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