Britain's first hydrogen heating trial in Fife has been branded a "nightmare" after burning through £100 million, including more than £50 million in the past year, new figures show. The two-year H100 pilot in Methil, run by SGN, was previously hailed by John Swinney as a "shining example" of net zero policy and intends to switch 300 homes to hydrogen for cooking and heating.
The project, which was supposed to begin by the end of 2022, is now four years behind schedule and "burning through cash" with "off the scale" losses, insiders say. Details released under freedom of information show just 181 households have signed up for the trial, almost 120 short of its target, with 74 residents having already dropped out.
Whistleblower claims and financial losses
In since-deleted social media posts, one whistleblower who claims to work on the site wrote on X last week: "I'm an engineer working on a hydrogen production project. Trying to get it commissioned is proving a nightmare and costs are through the roof." Questioned over whether the plant was making green hydrogen, which is less polluting, or blue hydrogen, he replied: "At the moment no hydrogen. To be honest, I'll never see it ever working." Both posts were deleted within a day.
In another post in September, the same individual wrote: "The money being spent on it is off the scale and I suspect it will never ever work. People don't want hydrogen in their houses." Newly-filed accounts also show the project has lost £100 million to date, equal to more than £550,000 for each of the 181 homes signed up.
Expert criticism and government stance
Chemical engineering expert Professor Tom Baxter, of Strathclyde University, said: "Public resources have been spent on a concept that should never have been progressed. Nothing speaks in favour of hydrogen for home heating." Prof Baxter and other experts have repeatedly warned how the technology is inefficient, much more expensive than electricity and gas and carries inherent safety risks due to hydrogen's explosive properties.
It comes as the UK Government said in March it no longer favours hydrogen-powered homes and sees only a "limited" role for them in future domestic heating. The Fife scheme covers one of the most deprived areas in Scotland. Local households joining were offered £1000, paid in instalments, for free hydrogen appliances and a promise that bills would match what they pay for gas.
Project delays and future outlook
SGN has asked the gas industry's code panel to push the H100 project's legal end date back four years, from April 2027 to April 2031, and in a recent update said connections will now not begin until next year. Last week, the National Energy System Operator warned SGN had not shown why four more years were needed. The panel is due to make a final decision on November 19.
The accounts for SGN Futures (H100) Limited, the SGN subsidiary set up to build the project, show it spent £47.6 million in the year to March 2026, up from £36.8 million the year before, and lost £50.6 million, taking its losses since 2022 to £100 million. The subsidiary's accounts, signed last month, say "forecast costs to complete have increased significantly" and that it depends on a guarantee from its parent company to keep trading.
The project was billed as "the world's first 100 per cent hydrogen to homes heating and cooking network" supplying 300 homes in Buckhaven and Denbeath. Swinney visited the scheme last year and praised it as an "innovative solution to tackle climate change". An SGN spokesman said: "H100 Fife is a pioneering project that is generating real-world evidence on the production, storage and distribution of hydrogen, and its use in home heating. Construction of this complex project is now complete, and commissioning is underway, marking an important milestone as we prepare for customer connections."
SNP energy minister Stephen Gethins said: "Hydrogen has an important role to play in Scotland's journey to net zero, particularly in decarbonising industry, supporting clean fuels and reducing emissions where electrification is not practical. While we do not expect hydrogen to be the primary route for decarbonising domestic heat, it could still have a role where other technologies are not the best solution. Delays to UK Government hydrogen funding decisions continue to undermine investor confidence in Scotland and are damaging the prospects of hydrogen projects."
