New Gas for Climate report
The new Gas for Climate report provides an unique overview on the latest developments in renewable and low-carbon gases: industry is ready for scale-up.
Highlights of the report
The new Market State and Trends report published by the Gas for Climate consortium was developed by Guidehouse, describes key market trends and highlights leading project examples.
- Biomethane production is scaling up rapidly, with an increased share of biowaste and bio-residues as feedstock, while production costs are starting to decrease and grid injection levels are increasing.
- Many green and blue hydrogen projects are described in the report. These projects focus on scaling up hydrogen demand in new industrial sectors, exploring hydrogen use in heavy transport, or aim to decarbonise existing grey hydrogen demand.
- The report also highlights how existing gas infrastructure is increasingly being used to transport biomethane and is being prepared to transport hydrogen. Several showcase projects focus on enabling renewable and low-carbon gas transport; this is significant because it shows how gas infrastructure can accelerate the scale-up of hydrogen and biomethane.
- All these developments provide a solid basis to achieve the EU 2030 decarbonisation target and show that industry is ready to scale up biomethane and hydrogen. Regulatory certainty would help to accelerate ongoing developments and spur investments.
About Gas for Climate
Gas for Climate was initiated in 2017 to analyse and create awareness about the role of renewable and low carbon gas in the future energy system in full compliance with the Paris Agreement target to limit global temperature increase to well below 2 degrees Celsius. To this end, the entire economy has to become (net) zero carbon by mid-century.
The Gas for Climate group consists of ten leading European gas transport companies (Enagás, Energinet, Fluxys Belgium, Gasunie, GRTgaz, ONTRAS, OGE, Snam, Swedegas and Teréga) and two renewable gas industry associations (European Biogas Association and Consorzio Italiano Biogas).
In January 2021, Gas for Climate will publish a policy paper which calls for a mandatory renewable gas target. Such a target would further boost the identified trends that are needed to stay on track for the decarbonisation of the European energy system.