Ofgem Funds UK Gas Decarbonisation Project

University of Exeter

A new project that aims to help decarbonise the UK gas network has been awarded funding by energy regulator Ofgem.

The Green Molecule Project is exploring using power-to-gas (P2G) technology to convert excess wind energy into renewable methane.

The project is led by SGN, which runs the gas network in the south of England and across Scotland, with partners including the University of Exeter.

This "discovery phase" (feasibility) funding comes from Ofgem's Strategic Innovation Fund.

"What excites me is the opportunity to explore how synthetic methane could help bridge the gap between renewable energy generation and the energy people actually need, when they need it," said project manager Niyati Dave, from SGN.

"If we can turn curtailed wind energy into low-carbon gas that can be stored and used through the existing network, we can get closer to a more flexible and resilient net zero energy system."

Professor Paul Halloran, from the University of Exeter, said: "Storing renewable energy long-term and transporting it to where it's needed most are major hurdles for net-zero.

"Renewable methane offers a potential solution because it is chemically identical to the natural gas our existing networks already use, avoiding the infrastructure changes required by hydrogen.

"This project will evaluate the costs and benefits of these competing pathways to help identify the most viable routes forward."

Dr Fran Taylor, from the University of Exeter, added: "The Green Molecule Project team is delighted to be part of this innovative collaboration, bringing together leading organisations from across industry and academia to deliver a project that has the potential to transform how renewable energy is stored and utilised across the UK.

"We are proud to contribute our expertise to such a forward‑thinking initiative and are enthusiastic about the opportunities this project will create for innovation, collaboration and long‑term impact."

In this phase, the team will focus on understanding how the Green Molecule Project method works in practice, what it takes to scale, where it adds most value, and how it could support a more resilient energy system.

The project aims to combine three core processes:

  • Direct Ocean Carbon Capture via the SeaCURE method led by the University of Exeter.
  • Electrolysis, which extracts hydrogen from water.
  • Biological methanation, which converts carbon dioxide and hydrogen into methane.
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