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North West and St Fergus to Teesside hydrogen Front End Engineering Design (FEED) reopener funding applications

Publication type:
Consultation
Status:
Closed (with decision)
Publication date:
Closed date:
Topic:
Energy network price controls
Subtopic:
Gas distribution price control 2023 to 2028 (RIIO-GD2), Transmission price control 2021 to 2026 (RIIO-T2)
Industry sector:
Distribution Network,
Transmission Network

We are seeking views on our Draft Determinations for two RIIO-2 reopener funding applications for hydrogen network Front End Engineering Design (FEED) applications from National Gas Transmission (NGT).

Details of outcome 

As part of the RIIO-2 price control, network companies can apply for additional allowances via re-opener uncertainty mechanisms.  

In September 2025, we consulted on our draft determinations and associated draft directions for PU: North-West and PU: St Fergus to Teesside Hydrogen Network FEED re-opener funding applications. 

Our decisions, having taken account of all consultation responses, are set out in these Final Determinations and associated Final Directions to implement our decisions.

Read the full outcome

Final Determinations: North West and St Fergus to Teesside hydrogen Front End Engineering Design (FEED) reopener funding applications [PDF, 440.72KB]
NGT PU: North-West Direction [PDF, 222.56KB]
NGT PU: St Fergus to Teesside Direction [PDF, 204.14KB]
Non-confidential responses for FEED reopener [ZIP, 1.80MB]

Original consultation

Who should respond

We would like views from people with an interest in gas transmission (GT) or gas distribution (GD). We would also welcome responses from other stakeholders and the public. 

Background

Hydrogen networks may be vital to connect producers with consumers of hydrogen and to balance misalignment in supply and demand. We consider that there is consumer value in providing some funding for the highest priority hydrogen feasibility and FEED studies. The studies will assist understanding of the costs of hydrogen infrastructure and the proposed level of repurposing that could be expected to reduce the stranding risk of existing gas network assets.   This consultation seeks input from stakeholders in relation to our draft determinations for two hydrogen network FEED projects that will connect hydrogen production in the North of Scotland to industrial clusters in Grangemouth Scotland and the North East and North West of England.  

Why your views matter

We want to hear your views on our assessment of these funding applications. We encourage respondents to consider the specific questions outlined within this consultation. Your responses to this consultation will inform our decision.  

How to respond

This consultation closes on 30 September 2025. Please send your response to allan.rankine@ofgem.gov.uk.