Managing different gasses
Working with gas transporters to understand potential system impacts that would arise from future decarbonisation developments.
Xoserve, as the Central Data Service Provider (CDSP) for the gas market, manages the systems and data that underpin settlement, billing and network operations. Our role is to ensure that billing and settlement processes remain accurate, fair and transparent as the UK transitions to a lower carbon energy system.
Through the Managing Different Gases programme, we have analysed the impact of four transition scenarios on CDSP systems:
- Injection of non-propanated biomethane
- Up to 5% hydrogen blending
- Up to 20% hydrogen blending (with dynamic daily injections)
- 100% hydrogen
Through our well-considered analysis, we present these findings as realistic considerations based on the four scenarios. We’d like to stress that our commitment to the decarbonisation of gas is steadfast and of paramount importance to energy sustainability.
Key findings
Biomethane without Propane (low to medium impact)
- A lower calorific value (CV) would affect current billing arrangements.
- Additional charging zones may be required to ensure accuracy.
Up to 5% Hydrogen (low impact)
- Represents a manageable, low-risk step towards decarbonisation.
- Minimal changes to CDSP systems are expected.
- Additional data items would only be required if differentiation between blended and non-blended gas is needed
Up to 20% Hydrogen (medium to high impact)
- Significant implications for CV management and billing accuracy.
- Local Distribution Zones (LDZs) would likely need to be split into multiple charging zones.
- Dynamic daily injections add further complexity, requiring multiple CVs per zone each day.
- Substantial system, data, and regulatory changes would be needed.
100% Hydrogen (medium impact)
- Feasible for CDSP systems if implemented independently as a standalone network.
- Running in parallel with natural gas would require major system redesign to manage two regimes concurrently.
Decarbonisation scenarios
We evaluated the scenarios against 18 different Central Data Service Provider process areas and produced a RAG matrix for the estimated level of change to central systems.
- RED – expected process impacts
- AMBER – suspected process impacts
- GREEN – no process impacts anticipated
This analysis is based on a view of central systems from 2024/25.
Click on one of the following scenarios to view the RAG matrix and find out more about its impacts.
Injecting biomethane only into the gas network, without the addition of propane.
Adding a very small amount of hydrogen through the current network.
Adding no more than 20% hydrogen, on a consistent level throughout the day.
Using hydrogen only, through an independently operated network.
Conclusion
All four scenarios will require:
- Gas quality monitoring to ensure system integrity and safety.
- Adjustments to network operations to manage CV variation and blending impacts.
- Updates to the Gas (Calculation of Thermal Energy) Regulations to reflect new gas compositions and charging requirements.
- Ongoing transparency and accuracy in CV calculation and billing to maintain stakeholder and consumer confidence.
Final remarks
- Low-level hydrogen blending (5%) and non-propanated biomethane can be accommodated with minimal disruption.
- Higher-level hydrogen blending (20% with dynamic injections) and biomethane without propane present significant challenges, requiring new charging structures and regulatory change.
- A fully hydrogen network is technically feasible, but parallel operation with natural gas would demand extensive system development.
Xoserve stands ready to work with gas networks, DESNZ, Ofgem, and the wider industry to deliver a fair, robust, and future-proof system for a multi-gas energy future.
More information
If you want to know more about any of the above please email us at decarbonisation@xoserve.com.
More information
Contact us if have any questions or would like to know more about the four decarbonisation scenarios.