Around 300 homes in Fife in Scotland will be fitted with 100% green hydrogen to cook food and heat their properties as part of the new trial that aims to help the transition from natural gas to a zero-carbon option in late 2022.
An additional 1,000 homes could be included, if the first phase of the trial is completed successfully.
The trial has been backed by Ofgem, which has awarded £18m to SGN to develop the pioneering project, where hydrogen boilers and cookers will be installed free of charge and monitored over the period of four years.
Hydrogen fuel will be created using renewable energy and water. The grant is part of a funding competition which supports innovation to help prepare Britain's energy grids for a low-carbon future. The Scottish Government will support the project with a grant of £6.9m.
Green hydrogen is seen as an essential part of reducing Britain's carbon emissions from burning fossil fuels, because it can be used in the same way as methane in boilers and cookers, but produces no carbon emissions when burned. Emissions from heating homes are significant, as 85% of homes use a gas boiler.
The head of National Grid's hydrogen project, Anthony Green, said: "If we truly want to reach a net-zero decarbonised future, we need to replace methane with green alternatives like hydrogen.
"Sectors such as heat are difficult to decarbonise, and the importance of the gas networks to the UK’s current energy supply means projects like this are crucial if we are to deliver low carbon energy, reliably and safely to all consumers."
