Gas here to stay in Europe finds Eurogas study

Gases are essential for Europe to sustain net zero energy targets, a new report commissioned by the gas trade association Eurogas has found.

Contrary to the common framing of gas as merely a transition fuel, the report by Frontier Economics finds that by 2050 gases will remain crucial in final energy demand.

Hydrogen and its derivatives may emerge as the second-largest energy carrier, with biomethane gradually replacing natural gas in final energy consumption.

Gases will be even more crucial in building resilience if deviations from desired transition pathways occur, the report adds, commenting that this is already being tested today, as geopolitical turbulence is impacting prices across the EU.

Have you read?
Green hydrogen injected into Spanish gas grid
Why the new EU Commission and US administration will not slow gas tech

The report finds that gases can support the energy system in three key areas.

In terms of affordability, gases can enable a cost-efficient energy transition process, including by repurposing existing infrastructure. In the long term, gases can help lower energy prices for industry and consumers, with increased availability of renewable gases projected to lower average electricity prices by up to 21%.

In 2030 and 2040, hydrogen prices could be nearly 30% lower with greater availability of
gases.

In terms of security, gas and hydrogen-fired power plants are crucial for maintaining energy security, especially as the share of intermittent renewable electricity and the electrification of final demand increases.

In terms of sustainability gases are a key enabler for the EU to meet its decarbonisation objectives. Even in high electrification scenarios, gases continue to play a major role in final energy demand in 2050.

“A successful energy transition in Europe relies on striking the right balance between affordability, security and sustainability – a balance that gases are uniquely positioned to achieve,” commented Andreas Guth, Secretary General of Eurogas, in a statement.

“Natural gas, renewable and low carbon gases are essential to a resilient energy system that not only safeguards Europe’s industrial competitiveness and stabilises energy prices, but also provides the flexibility needed to adapt to evolving circumstances as we move towards net zero.”

Gas recommendations

Based on the findings of the report Ensuring Resilience in the European Energy Transition, Eurogas urges European leaders to act now to deliver essential gases on time with five specific recommendations focusing on investment and policies on rapidly phasing in renewable and low carbon gases and using existing infrastructure.

These are to maximise the potential of biomethane as a ‘must have’ option to serve remaining methane demand, build a value chain for hydrogen and its derivatives to enable them as a key energy carrier in the long-term, and to enable carbon capture and storage as a necessity for achieving sustainability and energy security objectives in Europe.

Others are to repurpose the existing gas infrastructure for renewable and low-carbon gases as a backbone of the European energy system and to leverage domestic natural gas and biomethane resources to improve the security of supply.