SGN Signs Landmark Deal With Nel ASA

Scottish Gas Network (SGN) has announced a landmark agreement with dedicated hydrogen technology provider Nel ASA to supply the electrolyser for their world-first hydrogen-to-homes heating network on the east coast of Scotland.

The 5MW alkaline water electrolyser will deliver up to 2,093kg of green hydrogen per day for SGN's H100 Fife project in Levenmouth. H100 Fife is a groundbreaking demonstration project that will evidence the role hydrogen can play in decarbonising heat. Customers who choose to opt-in to the project will have their homes supplied with hydrogen through a new distribution network in 2023, providing zero-carbon fuel for heating and cooking. In its initial phase, H100 Fife will supply around 300 homes.

Nel is a dedicated hydrogen company which works with energy companies across the world. With roots dating back to 1927, it has a proud history of development and continuous improvement of hydrogen technologies.


One of the advantages of hydrogen over fossil fuels is it doesn't produce carbon when it burns. H100 Fife is going one step further to decarbonise the process by using electricity from the Offshore Renewable Energy Catapult's nearby offshore wind turbine to generate the hydrogen for the H100 Fife project.

Hydrogen is created by a process called electrolysis which uses electricity to split water into hydrogen and oxygen. This is referred to as green hydrogen when the electricity is derived from renewables.

Our Director of Energy Futures Angus McIntosh said: "This is a milestone achievement towards delivering our H100 Fife project. We’re delighted to be working with global leading partners like Nel who share our vision to drive a sustainable energy transition. 

"Hydrogen can allow us to decarbonise homes with minimal change or disruption to how customers heat their homes. We believe this is will be a crucial factor in delivering our net zero targets as quickly as possible."

Raymond Schmid, VP Sales and Marketing EMEA, at Nel said: "Nel is honoured to be part of the development of a commercial green hydrogen infrastructure, clearly showing that hydrogen for domestic use is becoming a reality today. We look forward to deliver a reliable, safe and efficient source of green hydrogen."

The new Nel electrolyser will be installed in Energy Park Fife, Methil, in 2022 and will be supplying hydrogen to homes in H100 Fife’s first phase in early 2023.