The funding will support NGN’s programme to upgrade its pipelines to make the gas distribution network hydrogen-ready and reduce carbon emissions.
Three quarters of its pipework has already been upgraded from metallic mains to polyethylene and the investment will help replace a further 2,900km by 2026.
Bruce Davis, Co-founder and Managing Director, Abundance said: “Abundance’s customers want to back a range of solutions to deliver a net zero future and this is the first time we’ve been able to offer them something that directly tackles heating in the home. It’s also the first time we’ve worked with a major utility which has chosen crowdfunding to enable their customers to participate directly in the net zero transition.
“The development of hydrogen, alongside other technologies like heat pumps, offers a practical solution that will make a real difference to cutting emissions. The UK needs urgent investment in the infrastructure that can deliver this if we are going to meet our targets to decarbonise how we heat our homes.”
The investment seeks to raise £1 million through a lower risk, long term investment with returns of 1.6% per annum over a 10-year term.
As with all Abundance products, the minimum investment is only £5.
Mark Horsley, CEO, Northern Gas Networks added: “The UK energy sector is facing an exciting transition. Whilst focus is often placed on how energy production must change, the networks that distribute our energy must change too. At NGN, we’re delivering on a clear plan for a net zero carbon network by 2050.
“Working in collaboration with our regulator Ofgem, central government and the energy industry across the UK, our research is proving that hydrogen offers a safe, affordable and deliverable net zero solution and with this investment we want our customers to be involved in this important transition. Repurposing the gas network to transport hydrogen is likely to be the least disruptive and most cost-effective solution to zero carbon home heating for the vast majority of the UK homes.”