EU 'Should Insist on Reciprocity in Trade': MEP

The European Union should stop being "naive" in its dealings with China and must insist on reciprocity, including taking measures to prevent dumping, said a French member of the European parliament April 21.

Speaking at a Eurogas webinar April 21, Christophe Grudler listed instances where China's market had been closed to European firms, while the European market was open to Chinese firms to buy assets, such as trains. "We have to be very attentive," he said. Europe's industry has to "stay ahead of the game," and impose some barriers to prevent cheap goods being delivered at its borders. He mentioned Chinese solar panels as a case in point. 

Grudler, as a member of the European parliamentary committee on industry, research and energy, had been working on the new industrial strategy for Europe, published in March. He said he sees a "very important" role for gas, given its relatively low-carbon content and the future possibilities of injecting different gases into the extensive gas network.

Biogas, hydrogen and other green gases will be able to edge natural gas out and will be essential for decarbonising. Wind and solar only account for 12% of the energy mix, he said: of that, two thirds is wind. 

Following him, Marcus Newborough of UK electrolysis company ITM Power and Marko Vainikka of Finnish Wartsila also commented on the need to use the natural gas network, but less and less natural gas will flow through it over time, and more energy will come in the form of alternative gaseous fuels.

Newborough said that the harmful consequences of releasing carbon dioxide and methane into the atmosphere were obvious and climate change is irreversible: it is time to seize the rudder of the ship and set course for net zero carbon, he said. However, there was no getting away from the fact that Europe consumes six times more energy as molecules than as electrons, and the storability of gases means that it can be tailored to demand patterns, unlike the supply of electrons from renewable energy. He said he was looking forward to sectoral integration of gas and power markets: “It is normal when you solve someone’s problems to be paid,” he said.

Green hydrogen, where renewable energy is used to split water into hydrogen and oxygen, will have a role to play in this and his company is building a 1-GW electrolysis plant in Sheffield, north England, which will start up later this year. Electrolyser capital costs are coming down as their scale goes up; and offshore wind is generating more power than can be consumed otherwise, making a perfect match for his project.

Vainikka said that technology would be vital to Europe’s success in achieving the zero carbon goal, and Wartsila is building a €200 ($220)mn research centre in Finland open to other stakeholders where ideas can be tested out co-operatively.

The two agreed that the European industrial strategy should be revised in the light of Covid-19. Newborough said that Europe’s emergence from the crisis should be the starting point for reconsidering some aspects of it, even if parts of the industrial strategy were excellent.

Eurogas is an industry group comprising utilities and associations with an interest in wholesale and retail gas supply and distribution.