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NETWORK / 14 / MAY 2016 Do you see gas distribution opera- tors and the existing gas pipe infra- structure having a role to play if the nascent shale gas industry takes off in the UK? I think we do, but to be honest I look at it more as the pipe as a me- dium for a number of things. It could be hydrogen, it could be natural gas, it could be biomethane. It could be shale, it would be great if it was, without a shadow of doubt. Shale is looked at largely across in the US as a transmission gas that feeds power stations, and but also feeds homes. The transportation medium of shale gas probably hasn't even been thought about yet because the industry is very much in its infancy, but yes it could. I think it could bring gas to rural communities that don't have gas at the moment and a lot of those people are in fuel poverty as well. But I don't say it is all for shale, all for one, there is a whole range. At one point it was believed that gas had no future in the UK as heat would gradually be electrified. Has this attitude changed? I think it is changing, but there is no silver bullet. What is nice is the fact that gas is really on the agenda again as a form of heat. It's extremely economic and a third less than the price of electricity, so from a customer point of view we have to find a solution that keeps it at that sort of level. I don't say you should heat every home by gas – you should look at the most economical solution G a s o n t h e a G e n d a There's no silver bullet, but the future is looking rosy, Northern Gas Networks' chief executive Mark Horsley explains. for that customer and then develop that technology. I do think we were steering towards heat from electric- ity, but I think there is a general realisation that gas and other forms have a role as well. You have been looking at the fea- sibility of running the city of Leeds entirely on hydrogen. How much of a role do you see hydrogen playing in the future? I think it's so early in the stage, we have invested with our sister company Wales and West Utility in the initial feasibility stuff that we have done, which has been really good, really exciting. There is obvi- ously an opportunity there, but I think now that we need that next phase of that investment, which is about £50 million on about 56 projects to look at the whole feasibility of it. How feasible would it be to see all cities in the UK in the future using hydrogen? The indications are yes, it could be a great opportunity for some- where like Leeds, which has the right network, the right customer base, the skills and attributes to be able to develop the CCS technology. We have offshore salt caverns so we can use them to fill that back out in summer months. Leeds is a perfect pilot for it, but imagine if you could get Leeds to hydrogen, say Newcastle, Glasgow, Birmingham or Nottingham, and Bristol, you then have quite a net- work of hydrogen. Gas Potential The future's bright, the future's hydrogen A s the site of Northern Gas Net- works' H21 hydrogen project, Leeds was the perfect location last month for the company to launch its report, Power- ing the North. Energy min- ister Andrea Leadsom was in attendance. She joined a panel to discuss the future of gas, particularly within the government's "Northern Powerhouse". And when it comes to the future of gas, there is a lot to ponder. The abandonment of ideas about the full electrification of heat, which once threat- ened the very existence of gas distribution networks, coupled with the potential for alternative types and sources of gas, such as shale and hydrogen in the North, offer GDNs a more secure future. But both shale and hydrogen are in their infancy, and govern- ment policy would need to change to allow them to realise their potential. Several years ago the future for the gas industry looked bleak, with forecasts point- ing to the full electrification of the UK's heating sector, which would render gas infrastructure, and gas distribution opera- tors, surplus to requirements. That scenario is now widely seen as impractical because it would cause such a huge rise in demand for electricity generation during the cold winter months. Leadsom is firm in her view that gas will continue to have a role to play in the future, with the big question being where the UK can expect to secure its supplies. One answer could be shale. The govern- ment has been vocal in its support for the technology, believing it will deliver eco- nomic benefits, particularly to the North, and a lower carbon footprint. But not a sin- gle commercial well has yet been drilled, and the government's enthusiasm for shale gas seems to be at odds with its lukewarm support of carbon capture and storage (CCS) – a vital technology if hydrogen is going to play a part in the UK's low carbon future. Although in its infancy, Leadsom said the idea that GDNs and the existing gas infrastructure could have a role to play in the transportation of shale gas was an interesting one, potentially providing an economically viable gas supply not just to local homes but also to homes not currently connected to the mains gas grid, helping to address fuel poverty in the process. Shale could also provide a gas source Future oF gas Future oF gas