Biomethane to “gradually replace natural gas in final energy consumption”

Gases are uniquely positioned to ensure the affordability, security and sustainability of Europe’s energy system, according to a new report by Frontier Economics.
The report, entitled Ensuring Resilience in the European Energy Transition: Strategic Use of Gases to Deliver EU Climate Ambition, was commissioned by industry body Eurogas.
The findings demonstrate the importance of natural gas, renewable and low-carbon gases in delivering Europe’s net zero energy transition by 2050.
Working alongside increasing electrification, gases can help ensure the energy system is fit to support industrial competitiveness and protected from geopolitical risk, according to the study.
Contrary to common framing of gas as merely a transition fuel, the report shows 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 if deviations from desired transition pathways occur, the report finds, as gases build the resilience of Europe’s energy system.
This is already being tested today, as geopolitical turbulence is impacting prices across the EU, according to Eurogas.
Based on the findings of the report, Eurogas urged European leaders to act now to deliver essential gases on time.
This means focusing investment and policies on rapidly phasing in renewable and low carbon gases and using existing infrastructure. Many of these gas-based solutions can be delivered domestically, reducing reliance on imports, said the trade association.
Andreas Guth, secretary general of Eurogas, said: “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. 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.”