EU Could save $170bn/yr with Green Gas: Report
Renewable gas in Europe's existing pipelines could save consumers €140bn ($170bn)/yr in energy bills, according to a report commissioned by seven of Europe's largest transmission system operators and other vested interests.
They say that decarbonised gas will play an important role in reducing Europe’s greenhouse gas emissions to net-zero by mid-century, quoting a study published February 22. This is needed to comply with the Paris Agreement to keep global warming well below 2°C.
Initiated mid-2017, the 'Gas for Climate' group consists of Enagas, Fluxys, Gasunie, GRTgaz, Open Grid Europe, Snam and TIGF; 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.
The study shows that it is possible to scale up renewable gas production between now and 2050 to more than 120bn m³/yr, including both renewable hydrogen and biomethane.
This could save about €140bn/yr in transport, power generation and heating costs by 2050 compared to a future energy system without any gas, the report found. The CEOs of the member companies jointly stated: “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.”
The upstream side of the gas industry, meanwhile, is seeking to secure the future of gas through carbon capture and storage (CCS), decarbonising emissions at the point of combustion. In October 2017, Statoil, Shell and Total formed a partnership to advance development of carbon storage offshore Norway. Also BP CEO Bob Dudley told IP Week February 20 that the world was not racing towards a renewable future but a low emissions future, with CCS playing a part in that. However later that day, he was non-committal when asked if BP itself would fully fund a CCS project.
Also last October, German gas grid owners' association FNB published a report claiming that optimal use of the country’s existing gas grid – including embracing biomethane and 'power-to-gas' – could save €12bn/yr by 2050.