NGN has partnered with ethical investment crowdfunding platform Abundance on the bond, which will help fund the upgrade of pipes to prepare the gas distribution network to transport hydrogen.
The investment, in Northern Gas Networks’ Finance Plc, seeks to raise £1m, with returns of 1.6 per cent a year over a ten-year term.
As part of NGN’s plans to transition its network to net zero, three quarters of the region’s pipework has already been upgraded from metallic mains to polyethylene and the investment will help replace a further 2,900 km by 2026.
Gareth Mills, NGN director of regulation and strategic planning, said: “We want to give the communities we serve the opportunity to help with this transition by investing directly into our pipe replacement programme. It provides a means by which we can engage with each other on the energy transition, build trust and create a roadmap to Net Zero that feels like a just transition for all.”
Bruce Davis, co-founder and managing director of Abundance, added: “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.”
NGN, which has offices in Sunderland and Leeds, provides gas to 2.7 million homes and businesses in the North East, Northern Cumbria and much of Yorkshire and Humber.
