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when burnt. In contrast using hydrogen produces water and heat but no carbon dioxide at point of use. So, could hydrogen replace methane? A UK Government feasibil- ity study – Hydrogen for Heat (Hy4Heat) is investigating what needs to be done to transition to hydrogen. The project, which Arup is project managing on behalf of the UK Government, has so far found no barrier to using 100 per cent hydrogen for domestic heat. The next phase of the project is planning community pilots to understand more about consumer accept - ance of hydrogen appliances, the conversion process, and funding and delivery options. Balancing supply and demand To kickstart the market, we should consider early opportu- nities to blend hydrogen into existing gas to build up supply and demand. Up to 20 per cent can be blended into methane with no need to change existing domestic appliances. Through blending into the natural gas system, hydrogen can achieve rapid decarbonisation results as we transition to a fully decarbonised system. Blend - ing provides an opportunity to scale up production, and market mechanisms used by the gov- ernment to support renewable electricity could provide one op- tion to incentivise the demand for hydrogen. Arup's research points to other options for building demand in the short to medium term: 1. In transport improved technology around hydrogen buses, trains and ferries is demonstrating an ability to compete on price with fossil fuels, and can provide increased efficiency when compared with some electric alternatives 2. Heavy industry, for example glassmaking and pottery con - tinue to use high temperature furnaces that emit large volumes of CO2. A move to hydrogen offers a big oppor - NETWORK / 27 / JUNE 2019 Phil Dingle, marketing director at Lucy Electric, discusses using data to deliver benefits for network operators. Driven by the decarbonisation agenda and the associated decentralisation and digitisation of the network, the UK electricity industry is undergoing major transformation. Components of this transformation to a greener and decentralised energy system, such as greater use of renewables, electric vehicles and storage, place increased pressure on the grid, especially the medium and low voltage network. Evaluating and understanding this will be essential to a truly smart grid and consequently we are now seeing the greatest innovation and change happening at medium and low voltage levels. As distribution network operators (DNOs) transition into distribution system operators (DSOs); monitoring and control systems need to become more advanced, to deliver actionable intelligence faster and serve multiple purposes. This will be further influenced by the European Union's Clean Energy Package, which places requirements on Ofgem to monitor the smartness of DSOs. How this will be embedded in the UK and implemented by the regulator is a key topic of discussion at the moment. DNOs are already thinking about this, but how will these outcomes align with future requirements? Lucy Electric's Gridkey monitoring system is demonstrating how data and its analysis can deliver real benefits for distribution networks. Whether by reducing losses, better fault identification and management, improving power quality or enhancing asset planning – having a smarter network will benefit the industry, consumers and the environment. With the Clean Energy Package indicating these factors are how Ofgem should measure DSO smartness, monitoring that adds real value to how the UK networks can stay ahead on smart grid developments. I N D U S T RY I N S I G H T Data is key to delivering smarter DSOs tunity to decarbonise these. Large scale domestic conversion could be a significant opportu- nity. Both an approved safety case, and consumer acceptance would be necessary with the process developing out from regional hydrogen hubs. And what about supply? The two main options for produc- ing low carbon hydrogen exist: electrolysis of water using renewable electricity and refor- mation of methane with carbon capture and storage. Both can be integrated into existing sys- tems – we're currently working on a number of commissions to explore both. This includes working with National Grid, SGN and Cadent to explore the feasibility of a reformation plant on the Isle of Grain that could supply hydro - gen in South London via the gas network. International consensus The UK is not alone in explor- ing the potential of hydrogen. Internationally, governments are investigating the role that hydrogen can play in a low- carbon future. Colleagues in New Zealand are supporting the development of the country's first hydrogen production and refuelling facil - ity being built by the Port of Auckland. Due to open by the end of 2019, the facility will support hydrogen fuel cell vehicles in - cluding port equipment, buses and potentially trains. Future of Energy in 2035 As outlined in our research, the technical, business and consumer case for hydrogen still needs to be proven, and production of hydrogen will not happen without demand and an effective supply chain, nor will it succeed without policy and investment providing market stimulation. Now is the time for government and industry to work together to close the evidence gap. The hydrogen economy is an opportunity we cannot afford to miss.