On this page, you'll find information about the HyDeploy phase 2 demonstration in Winlaton and the processes that are in place to support this.
HyDeploy is a pioneering hydrogen gas blending project, designed to test the impact of blending up to 20% hydrogen into natural gas.
Following a successful initial trial, HyDeploy 2 took place during 2021 and blended hydrogen gas into a public network, in Winlaton.
The demonstration finished at the end of June and the data is now being analysed and used to inform future blending decision-making.
Guest blog: Lessons and learnings from HyDeploy phase 2
Joanna Ferguson at NGN describes the HyDeploy 2 demonstration and shares some of the most significant learnings and plans for the future.
Future Billing Methodology project
For more detailed information on hydrogen gas blending and the potential impacts on the industry, read about the Future Billing Methodology project and consultation.
HyDeploy 2 in more detail
For more detailed information on HyDeploy 2, we're sharing below the material we produced to support the industry ahead of - and during - the demonstration.
More information about the HyDeploy demonstration
HyDeploy project overview
Find out more about what HyDeploy has been doing at Keele University to demonstrate the feasibility of using hydrogen gas to heat our homes.
About the second phase live demonstration
More about the second HyDeploy demonstration in the North East of England in Winlaton, near Gateshead.
How Northern Gas Networks prepared for the demonstration
Joanna Ferguson, Head of Market Services & Regulatory Compliance at Northern Gas Networks, explains how her organisation prepared for HyDeploy.
Xoserve’s role in the HyDeploy demonstration
We're working closely with stakeholders across the industry to deliver HyDeploy in a transparent manner operationally.
We're responsible for ensuring the data infrastructure underpinning the transformation is fit for purpose, effective and scalable. This ensures the infrastructure could be adopted for similar projects in future.
As the Central Data Service Provider (CDSP), we ensured all Meter Point Reference Numbers (MPRNs) included in the second phase were readily available. We also established processes and controls to protect these MPRNs (and consumers) from being adversely impacted during the demonstration.
Xoserve readied its systems and processes
An explanation of our involvement in hydrogen gas demonstrations and how we prepared our systems and processes for HyDeploy.
Xoserve's role in supporting HyDeploy
A high-level overview of our involvement in the HyDeploy Winlaton demonstration and what processes changed as a result.
Process information for Xoserve customers
Introducing hydrogen into the live gas network may have an impact to the calculation of energy. This has implications on the Annual Quantity (AQ), procurement and reconciliation charges – meaning process changes for Networks, Shippers and Suppliers.
Invoicing and voluntary consumer payments
Identifying HyDeploy sites on UK Link
The Annual Quantity Backstop process
HyDeploy MPRNs in Data Discovery Platform
A short video on how to identify HyDeploy MPRNs in the Data Discovery Platform (DDP).
There are process changes required to ensure a successful outcome of the HyDeploy North East demonstration:
- An indicator will be applied to UK Link, Data Enquiry Service (DES) and Data Discovery Platform (DDP) to provide Shippers and Suppliers visibility of the Meter Point Reference Numbers (MPRNs) included within the demonstration.
- An AQ Backstop date will be applied to all MPRNs in the demonstration from 1 September 2021. This will prevent any changes to the AQ during the demonstration.
- Voluntary consumer payments will be calculated by Northern Gas Networks. These compensation payments will be issued to the Shipper by Xoserve for passing onto the consumer.
- All MPRNs are monitored to review performance and manage any unforeseen issues that may arise.
There are no impacts to the switching process. Consumers are able to switch Suppliers in the normal manner.
Shippers and Suppliers must understand the process changes and their obligations involved for the affected Meter Point Reference Numbers (MPRNs).
Both Xoserve and Northern Gas Networks are monitoring all activities relating to the MPRNs involved in the demonstration. When notice is received of a change of Shipper or Supplier through the existing industry processes, the new Shipper and/or Supplier will be contacted to talk them through how having a HyDeploy demonstration Meter Point will affect them and what they will need to do differently.
The use of the hydrogen blend will result in a lower Calorific Value (CV) being passed through the consumer’s meter compared to natural gas; the exact calorific value being received by the isolated demonstration area will be monitored for the duration.
More gas will need to pass through the customer’s meter than usual, which may inflate Annual Quantities (AQs).
To ensure the AQs are not impacted, an AQ Backstop date will be applied to the MPRNs, effective from 1 September 2021. The AQ Backstop date prevents any changes in the AQ, even when meter readings are submitted, a revised AQ will not be re-calculated during the demonstration.
Transportation charges will not be impacted as the rate applied will be the Formula Year AQ set as at 1 April 2021 (or the FYAQ set as a result of an AQ Correction request accepted between 1 December and 19 August 2021).
During the HyDeploy demonstration, increased gas consumption may be registered through affected meters. Northern Gas Networks and Cadent have agreed with Ofgem to provide voluntary consumer payments, to offset the increase in consumers' bills during the demonstration.
There should be no change to the charges applied by Shippers to Suppliers and Suppliers to consumers. The consumer credit payment will offset any increase in consumers' bills during the demonstration.
Northern Gas Networks will submit HyDeploy offset payment information to Xoserve in advance, monthly. Xoserve will then invoice the offset payments to those Shippers with HyDeploy Meter Point Reference Numbers (MPRNs).
A methodology approved by Ofgem is used to calculate the adjustments for each MPRN, this has been agreed with Ofgem.
- A factor is used to calculate the adjustment based on the AQ for each meter point.
- The adjustment also uses a seasonal factor (the same used for Demand Estimation Methodology) to ensure any seasonal impacts in the weather are accounted for. The credit payments will therefore reflect the changes in the seasons; winter are likely to be higher credits than in summer (when more gas is consumed).
The credit compensation payment issued on 10 August will be for the period of August (4–31 August). Future payments will be issued at the beginning of each month during the demonstration and will be for that calendar month.
Where there is a Supplier or Shipper changes mid-month, the credit payment will be issued to the Shipper registered of the MPRN on the first of the month. The Shipper must submit to the Supplier to pass to the consumer.
It is the Shipper’s responsibility to transfer the HyDeploy offset payments to the relevant Supplier. The Supplier must then credit the relevant customer with the HyDeploy offset payment.
The compensation payments are in line with Schedule 45 - Transmission of Transporter Distributed Payments to Consumers which states that “Where a Supplier receives a payment from a Gas Transporter which is intended for onward transmission to a Consumer, the Supplier shall, within 10 Working Days of receipt, pay or set-off an equal sum”.
The compensation payments are exempt of VAT.
A change in UK Link has been applied to set an indicator against those specific MPRNs that have been approved as part of a HyDeploy demonstration.
The new information held in the UK Link system will be extracted into SAP Business Warehouse (BW) to allow this data to be visible in the Data Enquiry Service (DES); a system that can be accessed via the Xoserve Portal.
For each MPRN within a demonstration, the following new data items will be
viewable in Data Enquiry Service (DES):
- Network Indicator: HYDEP2NGN
- Network Project start date 13 August 2021 (although actual start date was 4 August 2021)
- Network Project end date 4 June 2022
A new package is available to Data Discovery Platform (DDP) users, to help them manage the MPRNs which are part of the HyDeploy demonstration area:
Network Management Information (MI) – HyDeploy Data Package
This dashboard focuses on MPRNs within a portfolio which are part of the HyDeploy demonstration. It will specifically focus on portfolio data such as Annual Quantity (AQ), Supplier, Shipper and other Supply Point details. The focus of the dashboards is changes within the portfolio, i.e. when a Supplier or Shipper change takes place, Networks will receive a notification when changes occur.
Through our DDP and our new dashboards, Shippers and Networks can drill down on data at Meter Point Reference Number (MPRN) level, to obtain more insights. Networks will also be able to export and download data if required.
The process will remain the same. Northern Gas Networks will ensure that the additional health and safety checks that are needed, will be carried out on site.
26 January 2023DeliveringDecarb – January 2023
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