The public have been handed the opportunity to invest in a hydrogen-ready network for the first time after the launch of Northern Gas Networks (NGN)’s green transition bond.
On 24 March, NGN announced it has joined forces with Abundance to launch the bond, helping to fund the upgrade of pipes to prepare the gas distribution network to transport hydrogen. It is aiming to raise £1mn through a lower-risk, long-term investment with returns of 1.6% over a 10-period. It marks the first time a regulated energy distributor has offered a green transition bond exclusively for members of the public.
Three quarters of the region’s pipework has already been upgraded to polyethylene as part of NGN’s plans to transition its network to net zero. The investment will support the replacement of a further 2,900km by 2026, creating a hydrogen-ready gas network and reducing emissions from the day-to-day operation of the network.
NGN Director of Regulation and Strategic Planning, Gareth Mills, said: “We want to give the communities we serve the opportunity to help with this transition by investing directly into our pipe replacement programme. It provides a means by which we can engage with each other on the energy transition, build trust and create a roadmap to Net Zero that feels like a just transition for all.”
