Smart use of renewable gas to meet climate targets can save Europe €140 billion per year

Release date: February 22, 2018

  • Study published today by the Gas for Climate initiative sets out plan to meet Paris Agreement target in a cost-effective way
  • Study sets out a vision for net zero greenhouse gas emissions in the EU by 2050
  • Renewable gas used in existing infrastructure can be combined with renewable electricity to limit the cost of the energy transition

Renewable gas used in existing gas infrastructure could play an important role in reducing Europe’s greenhouse gas emissions to net-zero by mid-century, according to a study published today by the Gas for Climate initiative. Such a reduction is needed to comply with the Paris Agreement to keep global warming well below 2°C, avoiding dangerous levels of climate change.

Initiated mid-2017, the Gas for Climate group consists of seven leading European gas transport companies (Enagás, Fluxys Belgium, Gasunie, GRTgaz, Open Grid Europe, Snam and Teréga) and two renewable gas industry associations (European Biogas Association and Consorzio Italiano Biogas). Gas for Climate is committed to achieve net zero greenhouse gas emissions in the EU by 2050 and the group commissioned Ecofys, a Navigant company, to prepare a study into the future role of gas in a net-zero emissions energy system.

Their study shows that it is possible to scale up renewable gas production between now and 2050 to more than 120 billion cubic metres annually, including both renewable hydrogen and biomethane. The biomethane potential is based on an early and conservative scenario on the sustainable use of European biomass potential. Using this renewable gas in existing gas infrastructure for the heating of buildings, to produce dispatchable electricity as a complement to wind and solar, and to fuel heavy transport, could save about €140 billion annually by 2050 compared to a future energy system without any gas.

The CEOs of the nine Gas for Climate members (Marco Alverà, Snam, Marcelino Oreja Arburúa, Enagás, Dr. Jörg Bergmann, Open Grid Europe, Pascal De Buck, Fluxys Belgium, Han Fennema, Gasunie, Piero Gattoni, Consorzio Italiano Biogas, Dominique Mockly, Teréga, Jan Štambaský, European Biogas Association, Thierry Trouvé, GRTgaz) jointly declared:

We are committed to achieve net zero greenhouse gas emissions in the EU by 2050 to meet the Paris Agreement target. Renewable gas used in existing gas infrastructure can play an important role in this.

We want to facilitate a large scale-up of EU produced renewable hydrogen and biomethane that is transported, stored and distributed through existing gas infrastructure to be used in our energy system in a smart combination with renewable electricity. This will help Europe to meet the Paris Agreement target at the lowest possible costs while enhancing Europe’s energy security.”

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  1. Sequential cropping is the cultivation of a second crop before or after the harvest of main food or feed crop on the same agricultural land during an otherwise fallow period. Sequential cropping does not impact existing food or feed markets as no existing food or feed is used for biogas.
  2. The deployment of energy crops should be prioritised on abandoned and degraded land.
  3. Municipal solid waste is first pre-processed into refuse derived fuel (RDF). Non-combustible materials such as glass and metals are removed from the waste, leaving biogenic material and plastics.
  4. Gas for Climate (2021), The future role of biomethane (Link)
  5. Dutch TTF natural gas price (Link)
  6. Gas for Climate (2021), The future role of biomethane (Link)
  7. EBA (2021), Gasification – A Sustainable Technology for Circular Economies (Link)
  8. Gas for Climate (2021), The future role of biomethane (Link)
  9. Biomethane replaces mainly natural gas, with a lifecycle emission of about 75 g CO2eq/MJ, and partially diesel (and other fuels) with a lifecycle emission of 95 g CO2eq/MJ or above.
  10. 350 TWh on basis of gross calorific value equals 315 TWh on basis of net calorific value, or 1,134 PJ. The 100 g CO2eq/MJ emission reduction is expressed on basis of Lower Heating Value (=net calorific value). 1,134 PJ * 97 g/MJ = 113 Mtonne CO2eq emissions avoided.
  11. IEA Bioenergy (2020): Production of food grade sustainable CO2 from a large biogas facility (Link)
  12. Based on current EU average salaries in this sector
  13. Gas for Climate (2022) Biomethane production potentials in the EU (Link)
  14. Gas for Climate (2022) Biomethane production potentials in the EU (Link)
  15. European Commission (2018). In-depth analysis in support of the Commission Communication COM (2018) 773. A Clean Planet for all. A European long-term strategic vision for a prosperous, modern, competitive and climate neutral economy.
  16. Eurostat (2022) Natural gas supply statistics (Link)
  17. Gas for Climate (2022) Biomethane production potentials in the EU (Link)
  18. European Commission (2022), Commission Staff Working Document, SWD(2022) 230 final, Implementing the REPowerEU Action Plan: Investment needs, hydrogen accelerator, and achieving the bio-methane targets (Link)
  1. Eurostat (2020), Final energy consumption by sector, EU, 2020 (Link)
  2. Feedstocks refer to raw materials fed into a process for conversion into another product
  3. The Guardian (2021), Why it’s so hard to electrify shipping and aviation (Link)
  4. Commission (2020), Energy efficiency in buildings (Link)
  5. Eurostat (2020), Final energy consumption in the residential sector by use (Link)
  6. Gas for Climate (2019), The optimal role for gas in a net-zero emissions energy system (Link)
  7. DG ENER (2018) Request for services n° ENER/B2/2018-260 – Potentials of sector coupling for the EU natural gas sector – Assessing regulatory barriers.
  8. Sector coupling: how can it be enhanced in the EU to foster grid stability and decarbonise? (Link)
  9. European Commission (2020). A hydrogen strategy for a climate-neutral Europe (Link)
  10. European Commission (2022). Commission Staff Working Document, SWD (2022) 230 final, Implementing the REPowerEU Action Plan: Investment needs, hydrogen accelerator, and achieving the bio-methane targets (Link)
  11. Gas for Climate recently assesses the options the facilitate the 10 Mt import target by 2030. Gas for Climate (2022), Facilitating hydrogen imports from non-EU countries (Link)
  12. Gas for Climate (2022) Assessing the benefits of a pan-European hydrogen transmission system (Link)
  13. Gas for Climate (2023). Assessing the benefits of a pan-European hydrogen transmission infrastructure (Link)
  14. Guidehouse (2020) European Hydrogen Backbone (Link)
  15. Gas for Climate (2023). Assessing the benefits of a pan-European hydrogen transmission infrastructure (Link)
  16. Recharge (2022). ‘From niche to scale’ | EU launches €3bn European Hydrogen Bank with a bang but keeps quiet about the details (accessed in September 2022). (Link)
  17. Gas for Climate (2023). Assessing the benefits of a pan-European hydrogen transmission infrastructure (Link)
  18. Gas Infrastructure Europe (2021). Picturing the value of underground gas storage to the European hydrogen system (Link)
  19. Guidehouse (2020) European Hydrogen Backbone (Link)
  1. European Commission (2022). Commission Staff Working Document, SWD (2022) 230 final, Implementing the REPowerEU Action Plan: Investment needs, hydrogen accelerator, and achieving the bio-methane targets (Link)
  2. Gas for Climate recently assesses the options the facilitate the 10 Mt import target by 2030. Gas for Climate (2022), Facilitating hydrogen imports from non-EU countries (Link)
  3. Gas for Climate (2019). The optimal role for gas in a net-zero emissions energy system (Link)
  4. EHB (2021) Analysing future demand, supply, and transport of hydrogen. (Link)
  5. Gas for Climate (2019). The optimal role for gas in a net-zero emissions energy system (Link)
  6. Gas for Climate (2019). Job creation by scaling up renewable gas in Europe. (Link)
  7. This is without accounting for additional measures such as energy efficiency and overall demand reduction.
  8. As the natural gas consumption is supposed to significantly decline by 2050, most of natural gas imports could be replaced by domestically produced biomethane.
  9. Part of the 666 TWh could be supplied by blue hydrogen, i.e. by applying carbon capture and storage technologies on hydrogen production from natural gas. Blue hydrogen could help to accelerate market and infrastructure development as a complementary measure to green hydrogen. However, blue hydrogen would not help with reducing natural gas import dependency of the EU
  10. EHB (2021) Analysing future demand, supply, and transport of hydrogen. (Link)
  11. Gas for Climate (2022) Biomethane production potentials in the EU. (Link)
    Gas for Climate (2023). Assessing the benefits of a pan-European hydrogen transmission network (Link)
  12. Gas for Climate (2023). Assessing the benefits of a pan-European hydrogen transmission network (Link)
  13. Gas for Climate (2022) Facilitating hydrogen imports from non-EU countries. (Link)
  14. Gas for Climate (2023). Assessing the benefits of a pan-European hydrogen transmission network (Link)
  15. Gas for Climate (2023). Assessing the benefits of a pan-European hydrogen transmission network (Link)
  16. Gas for Climate (2023). Assessing the benefits of a pan-European hydrogen transmission network (Link)

End-use decarbonization and energy system integration

Renewable gas can be massively scaled up by 2050. Biomethane should be allocated based on the highest societal value. Hydrogen will be used in hard-to-decarbonise sectors – in industry as feedstock and for high-temperature heating, in the building sector, in power system balancing on long-time scales (e.g. hydrogen peaking plants), and in mobility applications, either as hydrogen or hydrogen-based synthetic fuel (aviation, maritime, heavy-trucking). Hydrogen is a prime candidate to facilitate sector coupling and fits well into the efforts for increased electrification by providing long-term storage and possibly also dispatchable power generation.

Energy security of supply

A substantial part of the current gas imports from Russia (155 bcm in 2021) can be replaced by domestic biomethane production (35 bcm) and renewable hydrogen production and import (50 bcm) by 2030. At the European level, supply potential is sufficient to meet the demand for renewable gases at all time scales (2030, 2040, and 2050), subject to acceleration of Renewable Energy Sources (RES) build-out beyond current targets. Individual regions might experience an abundance or lack of sufficient renewable energy and accelerated development of the European Hydrogen Backbone will help reconcile these differences can help to reconcile these differences.

Climate action and meeting climate goals

Gas for Climate fully supports the Fit for 55 package, aimed at a 55% reduction in European emissions by 2030 and the accelerated goals under REPowerEU. Gas for Climate also promotes a target 35 bcm of biomethane and 20 Mt of hydrogen in the European Union by 2030. Scaling up of renewable hydrogen (deployment of electrolysis) and biomethane (driven in large by sequential cropping) production is possible. Renewable gases are the solution in removing barriers to decarbonisation and creating the conditions for a more cost-effective transition. Policymakers are to adapt the European Union’s regulatory framework so that the production of renewable and low-carbon gases is incentivised, and gas infrastructure can fully unleash its great potential in a future integrated energy system.