The Essential Role of Gases in Europe's Energy Transition
Key Ideas
  • Gases, including hydrogen and biomethane, are projected to be crucial for Europe's energy transition and will remain essential in final energy demand by 2050.
  • Gases can support the energy system by enabling cost-efficient transitions, lowering energy prices, and maintaining energy security, especially with the rise of renewable energy sources.
  • Eurogas recommends European leaders focus on investing in renewable and low carbon gases, building a hydrogen value chain, and repurposing existing infrastructure to ensure a resilient energy system.
  • The report emphasizes the significance of striking a balance between affordability, security, and sustainability, with gases uniquely positioned to achieve this balance in Europe's energy transition.
A new report commissioned by Eurogas highlights the indispensable role of gases in Europe's journey towards net zero energy targets. Contrary to the perception of gas as a mere transition fuel, the report by Frontier Economics underscores that gases, including hydrogen and biomethane, will continue to be crucial components of the energy mix, particularly in final energy demand by 2050. The report emphasizes that gases will play a significant role in ensuring energy resilience, especially in the face of potential deviations from desired transition pathways and geopolitical challenges impacting energy prices. In terms of affordability, gases are seen as facilitators of a cost-efficient energy transition process by leveraging existing infrastructure and contributing to lower energy prices for industry and consumers through the availability of renewable gases. The report projects that the increased availability of gases could lead to significant reductions in hydrogen prices in the coming decades. Regarding security, gas and hydrogen-fired power plants are highlighted as essential for maintaining energy security as renewable electricity and final demand electrification increase. Additionally, in terms of sustainability, gases are identified as key enablers for the EU to achieve its decarbonization goals, playing a crucial role even in scenarios with high electrification. Eurogas urges European leaders to take immediate action based on the report's recommendations to ensure the timely delivery of essential gases. The recommendations focus on investments in renewable and low carbon gases, the development of a hydrogen value chain, and the repurposing of existing gas infrastructure to enhance the resilience of the European energy system. By striking a balance between affordability, security, and sustainability, gases are positioned to be vital components in Europe's successful energy transition.
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