Funding has been announced for two projects that include smart heating and using hydrogen as a potential source of heat.

As part of the new investment, £10m will be sponsored by the Government for the second phase of work by Energy Systems Catapult on its Smart Systems and Heat Programme. The programme is expected to develop local energy plans alongside local authorities to cut down on the cost of energy bills and to support the development of the UK’s low carbon heating projects.

Further £25m shall be invested by the government in the potential use of hydrogen gas for heating, testing the possibility of domestic gas pipes for hydrogen and to developed a range of innovative hydrogen appliances including boilers and cookers.

The programme was launched by the UK Minister of State for Business, Energy and Industrial Strategy Claire Perry. She said The UK government is committed to leading the world in delivering clean energy technology and today’s investment shows that we are prepared to support innovation in this critical area.

“Our aim is for the UK to be a global leader in innovation, science and research and our Industrial Strategy will help us to deliver our ambitious CO2 reduction targets while, creating jobs and opportunities for people across the country.”

Energy Systems Catapult CEO Philip New said: "This is very welcome. It is a reflection of the Energy Systems Catapult’s growing track record in delivering challenging and innovative programmes that have impact on some of the most intractable questions in the transformation of the energy system.

“Phase 2 will see our team working with others, building the foundations for innovative energy service business models, encouraging a new generation of energy service providers and testing new offers for British households.”