Ineos to Supply Hydrogen for Testing in U.K. Gas Pipelines

(Bloomberg) -- Chemicals giant Ineos Group Ltd. is set to supply hydrogen that will be used in a pilot project to test whether the fuel can provide a greener alternative to natural gas in Britain's pipelines.

The U.K. government is setting more ambitious targets for hydrogen usage, as part of efforts to accelerate decarbonization and shore up energy security. Trials are part of efforts to show it's safe and efficient to add the gas to pipelines, and to find out if adjustments may be needed.

A feasibility study is now analyzing how hydrogen could flow through 29 kilometers (18 miles) of decommissioned pipelines in Scotland between Ineos' site in Grangemouth and Granton, northern Edinburgh. Experts will start by looking at modification that's required before testing gas in the pipeline from 2024, according to a company spokesman.

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Ineos announced plans in January to build a low-carbon hydrogen manufacturing plant on its Grangemouth site as part of the government's plans to blend the gas into the country's network of fuel pipes. The company's hydrogen trial is in partnership with distribution company SGN, which delivers gas to 5.9 million homes and businesses in the U.K.

Companies such as Unilever Plc have already started running initial tests for hydrogen in their facilities to asses the viability of using it more widely. The gas is a greener alternative to fossil fuels and is also more reliable than using renewable energy for some manufacturing processes.

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