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Ofgem backs green gas project but households should stay cautious

Ofgem backs green gas project but households should stay cautious

Ofgem has awarded an undisclosed sum to a University of Exeter-led consortium to study how the UK gas grid can be decarbonised, through hydrogen blending, biomethane injection, and carbon capture on existing gas infrastructure. The project, reported by the University of Exeter News, joins a growing list of publicly funded trials that promise a future where households burn gas without the carbon. But for the 23 million homes still connected to the gas network, the question is not whether the science works. It is whether this research will ever reach their meter box at a price they can afford.

What the project actually involves

The consortium, which includes National Grid and several energy companies, will examine how existing gas pipelines can carry hydrogen blends of up to 20% without leaking or degrading. They will also model biomethane production from waste and assess the feasibility of small-scale carbon capture at gas-fired peaking plants. Ofgem’s Strategic Innovation Fund, which backs the work, is built to de-risk technologies that could eventually be rolled out at scale. The catch: hydrogen trials in the UK have been running since 2020, and no major domestic conversion has yet been mandated.

What this means for your gas bill and EPC

For a typical 3-bed semi using 12,000 kWh of gas per year, a 20% hydrogen blend would reduce carbon emissions by roughly 7%, but it would not change your EPC rating. The Energy Performance Certificate measures fabric efficiency and heating system type, not the carbon intensity of the fuel. A gas boiler running on 20% hydrogen is still scored as a gas boiler. Meanwhile, the Boiler Upgrade Scheme offers £7,500 towards an air-source heat pump, which can lift an EPC band from D to C or B on its own. Ofgem’s funding is a bet on the grid. Your EPC is a bet on your walls.

Who qualifies for hydrogen-ready boilers today

Hydrogen-ready boilers, units that can switch from natural gas to pure hydrogen with a minor valve change, are on sale from Worcester Bosch, Vaillant, and Baxi, but they cost roughly the same as a standard combi boiler, between £1,500 and £3,500 installed. No government grant currently covers them, and no hydrogen supply exists to fuel them. The UK government’s own 2024 hydrogen strategy confirmed that a household hydrogen conversion programme will not begin before 2030, and only then if the technical and cost hurdles are cleared. Ofgem’s project may accelerate that timetable, but for now, any homeowner buying a hydrogen-ready boiler is paying a premium for a promise.

The smarter move for most households

Energy Saving Trust data shows that the average 3-bed semi loses 35% of its heat through walls and roof. Spending £2,000 on cavity wall and loft insulation cuts annual gas use by roughly 2,500 kWh, saving £100–£150 per year at current price cap levels. That same money invested in a heat pump, with the £7,500 grant, delivers a 75% reduction in heating emissions and a clear EPC uplift. Ofgem’s green gas project is interesting. But it is not a substitute for the work that needs doing in your home today.

Households on standard variable tariffs can compare insulation and heat pump quotes via the gov.uk energy advice service. Eligibility for the Boiler Upgrade Scheme runs until at least 2028. No action is needed on hydrogen boilers until the grid operator confirms a conversion date for your region, which is not expected before 2032.

Frequently Asked Questions

No. EPC ratings assess the efficiency of the heating system and the building fabric, not the fuel source. A hydrogen-ready boiler scores the same as a standard gas boiler. To improve your EPC, invest in insulation, draught-proofing, or a heat pump.

No. The Boiler Upgrade Scheme covers heat pumps and biomass boilers only. Hydrogen-ready boilers are not currently subsidised by the UK government or Ofgem.

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