Eurogas has published the report “Ensuring Resilience in the European Energy Transition”

Eurogas, the trade association representing gaseous energy in Europe, has published the report “Ensuring Resilience in the European Energy Transition”.

Frontier Economics, who produced the report, conclude that natural gas, hydrogen and green gas are uniquely positioned to successfully shape Europe’s energy transition. Given the uncertainty surrounding how quickly electrification will progress, molecules provide a balance between affordability, security of supply and sustainability. The report also concludes that molecules support Europe’s competitiveness and that a diversity of gases is even more important if there are deviations from transition policies already underway, such as delays in expanding renewable electricity infrastructure or seasonal variations in demand.

Eurogas recommends that European energy policy should focus on rapidly phasing in renewable and low-carbon gases rather than winding down natural gas. Eurogas believes that the current gas infrastructure in Europe is essential to this. Rather than dismantling the gas infrastructure it should be used for carrying renewable gases. To support electrification, many gas-based solutions can be ‘homegrown’, reducing reliance on imports and exposure to geopolitical risks. This will ultimately lead to price stability and improved industrial competitiveness for Europe, according to Eurogas.

The report finds as follows regarding affordability, security of supply and sustainability:

A balanced energy transition that includes a range of gases will cost less than a pathway based solely on electrification. A diverse energy supply is essential if we want to minimise the costs of the energy transition.  This will also reduce energy prices for industry and consumers, thereby supporting European competitiveness on the global market.

Gases are critical to maintaining energy security, especially as an increasingly volatile  energy supply requires energy to be stored over long periods and transported over long distances. Gases become more important the more we deviate from model assumptions about demand, supply and electricity infrastructure.

Gases are crucial for the EU to achieve its sustainable energy system targets. Even in scenarios with high electricity supply, gases will continue to play a key role in ultimate energy requirements in 2050: the proportion of gases in final energy demand will increase, with hydrogen and its derivatives being the second-largest energy carrier after electricity. Green gas will gradually replace natural gas.

Eurogas is urging European leaders to invest in renewable and low-carbon gases and to repurpose existing infrastructure. These gases support industry and reduce reliance on imports. 

More information about the report can be found on the Eurogas websiteEurogas websiteEurogas websiteEurogas website.