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Projects: Projects for Investigator
Reference Number	NIA_CAD0086
Title	Hydrogen Village - Property Market Evaluation
Status	Completed
Energy Categories	Other Cross-Cutting Technologies or Research(Demographics) 10%; Other Cross-Cutting Technologies or Research(Energy system analysis) 10%; Hydrogen and Fuel Cells(Hydrogen, Hydrogen end uses (incl. combustion; excl. fuel cells)) 60%; Other Cross-Cutting Technologies or Research(Energy Economics) 10%; Other Cross-Cutting Technologies or Research(Environmental, social and economic impacts) 10%;
Research Types	Applied Research and Development 100%
Science and Technology Fields	SOCIAL SCIENCES (Town and Country Planning) 10%; SOCIAL SCIENCES (Business and Management Studies) 10%; ENGINEERING AND TECHNOLOGY (Mechanical, Aeronautical and Manufacturing Engineering) 40%; ENGINEERING AND TECHNOLOGY (Architecture and the Built Environment) 40%;
UKERC Cross Cutting Characterisation	Not Cross-cutting 50%; Sociological economical and environmental impact of energy (Technology acceptance) 50%;
Principal Investigator	Project Contact No email address given Cadent Gas
Award Type	Network Innovation Allowance
Funding Source	Ofgem
Start Date	01 November 2022
End Date	30 April 2023
Duration	ENA months
Total Grant Value	£150,000
Industrial Sectors	Energy
Region	London
Programme	Network Innovation Allowance
Investigators	Principal Investigator	Project Contact , Cadent Gas (99.996%)
	Other Investigator	Project Contact , Cadent Eastern (0.001%) Project Contact , Cadent North London (0.001%) Project Contact , Cadent North West (0.001%) Project Contact , Cadent West Midlands (0.001%)
	Industrial Collaborator	Project Contact , Northern Gas Networks (0.000%) Project Contact , Cadent Gas (0.000%)
Web Site	https://smarter.energynetworks.org/projects/NIA_CAD0086
Objectives	"This project will be led by Cadent and principally by Cadents Research and Engagement team. Cadent are experienced in conducting consumer research and engagement and have accumulated experience on hydrogen projects such as HyDeploy and HyDeploy2. Expert engagement partners will be appointed to deliver the research. The project will follow a rigorous project management framework to ensure that the project remains on track, its outputs are of a sufficient standard, the material and planning for the projects next stage is undertaken and is fully aligned with RIIO-GD2 funding mechanisms. This project will be undertaken in 3 stages Stage 1 – complete a comprehensive and detailed study; consolidate existing research and identify key stakeholders to create a stakeholder map. Stage 2 – build upon the literature review with qualitative interviews from key stakeholders and produce an impact analysis report. Stage 3 - Provide the recommendations and mitigations. The Measurement Quality Statement and Data Quality Statement include the fact that there will be expert engagement partners and one network licensee involved in the project who will constantly measure the quality output of the project. Expert engagement partners will be required to have their own quality assurance process in place. This will also be reinforced and further scrutinised by the project management board, which will compromise of a number of experienced gas industry professionals and engagement specialists who will regularly monitor the output of the project. There is also expected to be a regular interface with the BEIS hydrogen trials team, through the HyNet Homes (Technical Research) project, who will have full access to the documents available and will be able to provide comment. Any consumer data gathered throughout this project will be anonymised and will be compliant with General Data Protection Regulations (GDPR) and the UK Data Protection Act. Any compliant data can be made available for review upon request. " "Cadent and NGN have commissioned an expert engagement partner who will be able to assimilate information for both Cadent and NGN to establish the impact the hydrogen transition could have on the following (this information will also be shared with the other gas distribution networks): Impact on property rental prices Availability and cost of mortgages Ease of buying and selling properties Ability to find new tenants Changes in availability and cost of house insurance The initial scope of the project will be a literature review for comparable examples to hydrogen village conversion and evaluation of the drivers in the above policies/ procedures to create a fact base for all areas listed above. This fact base will consider National sources and be available for all gas network providers (GDNs). In addition, a key stakeholder map will be produced to ensure there is focus on the main players in the above areas (with a consideration of the stakeholders that may be particularly relevant to the residents and businesses of Whitby and Redcar e.g., landlords and mortgage/insurance providers, as well as national stakeholders - acknowledging the benefit in engaging with national stakeholders particularly in relation to providers of finance or insurance.) Once the fact base has been created the second phase of the project will be toengage further with the key stakeholders to obtain qualitative data on the hydrogen transition with primary research through interviews and workshops with these key players. This will enhance the data from the literature and ensure that conclusions drawn have been validated, with potential knowledge gaps filled. The data generated from both processes will be used to inform a relative impact analysis, for each of the areas listed above, in transitioning to hydrogen. Conclusions drawn will also consider the various trial phases (i.e., some areas may have a different impact at trial stages 3, 4, 5 and only under certain assumptions on the post-trial decisions see below). The final stage of the project will be to design a set of recommendations, tested with stakeholders to mitigate any issues found that impact the property market. The recommendations will have an indicative costing and relative ease of implementation and will include if consumer compensations are required (with indicative costings). The recommendations will focus on conclusions for the trial areas (Whitby and Redcar), once again considering the various stages of the project and the post-trial scenarios as shown below. (i) During the trial (Stage 3- 5 onwards) and the potential reversion back to natural gas at the end of the trialDuring the trial with a heat policy decision that support the transition to hydrogen for heating for the rest of the UK but factors in that this will take 15-20 years (i.e., small numbers of properties are on hydrogen initially) " "This project aims to establish the impact on the property market of converting residential properties from natural gas to hydrogen. This project will give consideration to the impact on property rental prices; availability and cost of mortgages; ease of buying and selling properties; ability to find new tenants; and changes in availability and cost of house insurance. The objectives of the project are to answer the following questions: - Are there any other technology transitions that have had an impact on house prices and insurances? - Is the EPC rating of the home the most important consideration for house evaluation and rental? What is the impact of having a “U” rating? - For insurance what are the risk drivers for creating premiums and how could these be impacted by changing the energy source to hydrogen? - Does existing insurance consider the historical data for incidents relating to gas? - Who are the key decisions makers in property valuation and insurance? - What may be the key standards that need to be achieved? - Are perceptions of hydrogen important for certain groups? Customers and insurers, estate agents.- Will the hydrogen trial stop home moves or not be a factor at all? - What would be the best way to communicate that there is a trial going on in the area/house to potential new homeowners?"
Abstract	The UK Governments Ten-Point Plan targets the need for a hydrogen village by 2025. To successfully deliver a hydrogen village trial we need to fully understand the implications a hydrogen trial would have on the property prices, mortgages, attitudes toward renting and buying properties connected to Hydrogen and property insurance policies and prices. This project provides a unique opportunity to explore the impact hydrogen conversion will have on the property market within the two proposed village areas of Whitby and Redcar. By identifying and engaging with key stakeholders we will be able to bring an expert and informed view to policy discussions and further support the next phases of the Hydrogen village project and other subsequential hydrogen projects.
Publications	(none)
Final Report	(none)
Added to Database	01/11/23