Energy Industry Review
Summary
A study recently published, performed by Navigant for the Gas for Climate consortium, serves as a follow-up to their study published in 2018, including a greatly expanded scope and analysis.
While achieving 100% greenhouse gas reduction requires large quantities of renewable electricity, by far the most cost optimal role to decarbonise is by combining electricity with renewable gases such as hydrogen and biomethane. Renewable gas adds value in the heating of buildings, for high temperature industrial heat, providing flexibility in electricity production alongside wind and solar and in heavy transport.
Using around 2900TWh or approximately 270 billion cubic meters of renewable methane and hydrogen in a smart combination with renewable electricity saves society EUR 217 billion across the energy system compared to reducing gas to an absolute minimum. Existing gas infrastructure is indispensable in transporting this renewable and low carbon gas to the various demand sectors. Gas infrastructure can be used to transport both hydrogen and biomethane in 2050.
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