There is increasing pressure on all sectors to contribute as the UK moves closer to its goal of achieving net-zero greenhouse gas emissions by 2050, and the gas supply sector is no exception. Natural gas has been a vital component of the UK’s energy system for many years, supplying energy for everything from commercial building heating to industrial operations. But gas suppliers now need to change dramatically as climate targets get more stringent and consumer demands move towards more environmentally friendly practices.
This shift is a comprehensive overhaul that includes renewable gas alternatives, infrastructure improvements, regulatory reform, and customer-facing innovation. It goes beyond simply changing fuels.
The Roadmap
Knowing how gas suppliers are changing can help you align your operations with sustainability goals while maintaining affordability and dependability, whether you’re a small business controlling heating costs or a multi-site enterprise looking to reduce carbon emissions.
From hydrogen blending experiments and biomethane integration to green tariffs, policy changes, and more, we examine the pragmatic measures UK gas providers are adopting to meet the net-zero challenge.
The Evolving Landscape
In spite of its pledge to reach Net Zero by 2050, the UK still relies heavily on gas, which accounts for 40% of power generation and about 30% of final energy consumption. In order to move away from natural gas, regulators, government policy frameworks, and the suppliers of gas must coordinate a number of strategies.
Integrating Low-Carbon Substitutes in the Gas Mix
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Hydrogen Experiments & Mixtures
With the support of Ofgem, National Gas has carried out the first-ever tests in the world to blend hydrogen to 100% purity on a test loop in Cumbria. With initial commercial blends limited at 2% volume pending safety approvals, this demonstrates that existing pipelines can transport hydrogen safely. Policies to permit up to 20% hydrogen blending by volume are being considered by the UK government.
GOV.UK evaluates the preparedness of hydrogen heating, including hydrogen-ready boilers, for broader adoption and highlights government plans for local pilot hydrogen villages by 2025.
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Green Gas and Biomethane
The goal of the Green Gas Support Scheme (GGSS) is to inject biomethane, which is created through anaerobic digestion, into the gas grid to provide 2.8 TWh of renewable energy in the upcoming years
Origin Guarantees (RGGOs): RGGOs, which are certified by Ofgem, track the origins of gas for suppliers. Utility providers such as 100Green provide commercial customers with 100% green gas, which is becoming a more distinctive option in the UK.
The Regulatory and Policy Reforms Supporting Transition
Energy Act 2023 establishes a regulatory framework for gas decarbonisation by including provisions to license CO₂ transport and carbon capture (CCS), hydrogen pipeline networks, and low-carbon heat schemes.
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Redesign of the Industry
OFGEM and BEIS are collaborating on legislation to modernise gas quality standards, permit the use of low-carbon gas, and guarantee that pricing structures encourage decarbonisation while preserving supply stability.
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Consumer Protections for Businesses
In order to provide stability during this transition, OFGEM ordered stricter requirements for non-domestic UK gas suppliers starting in July 2024. These requirements included fee transparency and improved complaint handling.
Network & Infrastructure Modifications
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Gas Network Evolution
Sia Partners and National Grid Gas emphasise changes towards a hybrid network that can deliver natural gas, biomethane, and hydrogen while providing new services like data analytics and multi-fuel metering.
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Hydrogen Pipeline Licensing
In order to future-proof distribution infrastructure, operators may apply for specialised hydrogen pipeline licenses under the Energy Act 2023.
How Can You Gain Benefits From This?
Low-carbon gas and carbon offsets are business options provided by many gas suppliers. These green tariffs help businesses to stay aligned with environmental goals and get a cost-effective gas supply.
RGGO-backed gas and hydrogen-swap provisions are becoming more common in contracts. Such contracts ensure future proofing and enhance reliance on the suppliers.
Businesses can now more easily see their sustainability credentials and contractual fairness thanks to improved regulatory standards.
According to industry consensus and policy, gas, including natural, blended, and hydrogen, will sustain the energy system until 2050. This protocol is accelerating the shift towards a net-zero journey and minimising the carbon footprint.
Concluding Remarks
Over the next two to three years, blending policies, village trials, and local hydrogen heating projects will direct larger rollouts. Energy laws and UK net-zero milestones are in line with CCS projects (like Net Zero Teesside) and pipelines that are ready for hydrogen.
With a dynamic mix of infrastructure improvements, sustainability-driven products, and the blending of hydrogen and biomethane, UK gas suppliers are speeding up their transition to Net Zero. Supported by laws, regulatory changes, and technological advancements, these adjustments guarantee that companies can continue to move towards net-zero while maintaining supply security even in the face of decreased reliance on gas.
