North West and St Fergus to Teesside hydrogen Front End Engineering Design (FEED) reopener funding applications
Summary
Ofgem consults on a Front End Engineering Design (FEED) reopener for the North West and St Fergus to Teesside hydrogen transport projects. FEED funding enables detailed design work before final investment decision.
Why it matters
Early-stage funding for hydrogen transport infrastructure. Hydrogen transport sits awkwardly in the regulatory framework: it is not yet a regulated asset class with stable returns, but the Centralised Strategic Network Plan has begun to plan for it. FEED reopener decisions test whether Ofgem treats hydrogen transport as a strategic priority or a speculative bet.
Areas affected
Memo
North West and St Fergus to Teesside hydrogen Front End Engineering Design (FEED) reopener funding applications | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: North West and St Fergus to Teesside hydrogen Front End Engineering Design (FEED) reopener funding applications Publication type: Consultation Publication date: 29 August 2025 Closed date: 1 October 2025 Status: Closed (with decision) Topic: Energy network price controls Subtopic: Gas distribution price control 2021 to 2026 (RIIO-GD2), Transmission price control 2021 to 2026 (RIIO-T2) Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn 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 . Consultation documents RIIO-2 NZASP Re-opener Draft Determinations: NGT Project Union St. Fergus to Teesside and North West Hydrogen Network FEED Studies [PDF, 588.25KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close