Ofgem has launched a consultation on its proposed decision regarding modifications to the Net Zero North Sea Storage Limited project following the discontinuation of the Blue Hydrogen and Carbon Capture (BOC) and Hydrogen to Teesside (H2T) projects. The consultation seeks stakeholder views on changes to the approved project scope, primarily relating to the removal of the BOC and H2T spur pipelines from the development plan. The consultation opened on 31 August 2026 and closes on 27 September 2026.
The proposed changes follow the Department for Energy Security and Net Zero’s announcement in September 2025 that the BOC project would not proceed, together with the subsequent withdrawal of the H2T development by its sponsor. Ofgem’s consultation considers how these project withdrawals should be reflected within the regulated carbon capture and storage infrastructure framework and associated licence arrangements.
Considerations for AMO Members
While the consultation does not directly impact metering obligations, it provides an important indication of the challenges associated with delivering large-scale decarbonisation infrastructure projects. The removal of hydrogen-related infrastructure from the approved project scope highlights the commercial and regulatory uncertainties that continue to affect elements of the UK’s energy transition programme.
For meter operators and associated service providers, the consultation reinforces the importance of maintaining flexibility within industry planning assumptions. Many AMO members are actively considering the future implications of hydrogen, carbon capture, heat pumps, electrification and other low-carbon technologies as part of the evolving energy landscape. The outcome of this consultation may influence wider discussions regarding future network investment priorities and the pace at which alternative decarbonisation pathways are deployed.
Net Zero Perspective
From a net zero perspective, the consultation should not be viewed as a reduction in government commitment to decarbonisation. Rather, it reflects a reassessment of specific projects within a broader transition strategy. Achieving net zero will continue to require significant investment in low-carbon infrastructure, smart technologies, electrification, flexibility services, and energy efficiency improvements.
For AMO members, the longer-term direction of travel remains unchanged. Metering will continue to play a critical role in supporting the transition through accurate measurement, settlement, consumer engagement, smart energy management, demand flexibility, and the integration of emerging technologies. The consultation serves as a reminder that the pathway to net zero is likely to evolve over time, with some projects progressing, others being modified, and new solutions emerging as technologies mature and market conditions develop.
Consultation closes: 27 September 2026. Stakeholders wishing to respond should submit comments directly to Ofgem.