SGN will be able to progress a study into the supply of green hydrogen after being awarded £500,000 of funding from the Department for Business, Energy and Industrial Strategy (BEIS).
The gas network operator along with partners Arup, Kiwa Gastec and the Offshore Renewable Energy (ORE) Catapult, have successfully bidded into BEIS's Hydrogen Supply Competition.
The £500,000 prize will enable SGN to deliver Phase 1 of Project Methilltoune - a feasibility study that will conclude in the autumn, focusing on the potential to supply hydrogen from offshore wind in Fife. If Phase 1 is successful, this could pave the way for construction of the system in Phase 2.
The project is seeking to demonstrate that renewable electricity produced by offshore wind can generate a secure and reliable supply of green hydrogen, which can be used to heat homes.
Using offshore wind to generate zero carbon hydrogen from electrolysis for use in the gas distribution network offers a potential route to decarbonise heat within the UK, taking full advantage of the natural resources at a local community level without the need for major investment in upgrading existing transmission and distribution networks.
SGN's director of energy futures Angus McIntosh commented: "Along with our partners, we're delighted to be awarded this funding to progress our study into the supply of green hydrogen. Hydrogen offers a credible and exciting opportunity to deliver the UK's net zero targets by 2050.
"The UK has all the ingredients to lead the way, from natural resources to engineering excellence and the quantity and quality of research being undertaken reflects this opportunity. We must continue this great work, demonstrate it and deliver the framework for change."