The Energy Secretary is poised to approve a landmark hydrogen heating trial in a north Yorkshire town despite growing local protests.
It is understood Claire Coutinho is “minded to approve” the scheme in Redcar, with an announcement expected in weeks.
Government support for the project will pave the way for Northern Gas Networks (NGN) to start supplying up to 2,000 homes with hydrogen instead of gas for heating and cooking, in the first trial of its size.
The scheme has major implications for UK energy policy because the experiment is seen as the gas industry’s last chance to prove hydrogen heating can be implemented amid a wave of growing criticism.
Another trial in Whitby, near Ellesmere Port, was cancelled over the summer after local opposition.
Ministers have said they will not approve the Redcar trial without community support, raising questions over whether local opposition could jeopardise the scheme.
However, it is understood Ms Coutinho is concerned that the UK risks falling behind other European countries on hydrogen heating.
Similar trials are already underway in Germany and the Netherlands.
On Wednesday, a spokesman for the Department for Energy Security insisted no final decision on the Redcar trial had been made.
However, potential approval risks angering residents in a key marginal seat ahead of the next election.
If the trial proceeds, residents would be able to choose between having their gas heating converted to hydrogen or – if they do not wish to participate – having an electrical alternative installed, such as a heat pump.
Opposition in Redcar has not yet been as strong as in Whitby but a protest is scheduled for this weekend.
Campaigners also hosted an event earlier this month during which some attendees claimed they were being “railroaded” into accepting the hydrogen scheme.
Concerns have also been raised about safety, although NGN insists any plan would have to be approved by health and safety officials.
Jacob Young, the Conservative MP for Redcar, has backed the scheme on the basis it will put the town at the forefront of hydrogen technologies.
It is also expected to deliver a boost to the local economy, with NGN vowing to make investments worth £300m and create hundreds of jobs.
Supporters have argued that “green hydrogen” – fuel made from electrolysis, powered by wind power – could eventually become a climate-friendly replacement for natural gas, piped through existing gas network infrastructure.
But the case for using hydrogen as a mass solution for heating was dealt a significant blow last month when the National Infrastructure Commission told the Government that it would be inefficient and pile extra costs onto households.
The commission has instead recommended that electric-powered heat pumps be the main replacement for natural gas-fired boilers.
Ministers have put off a decision about what role hydrogen heating will play until 2026.
A small trial of hydrogen heating is first set to begin in Fife, Scotland, next year – involving about 300 households.
Elsewhere in Europe, the Dutch town of Lochem is trialling hydrogen heating in a dozen homes and in Germany, about 10 households in Hohenwart, near Munich, are trying the technology as well.
The Redcar trial would easily be one of the largest trials of its kind in Europe, although it is not clear how many households would ultimately participate.