Gas must not be sidelined in the net-zero debate

“There’s no doubt time is running out on decarbonisation. We have 30 years and 28 million houses in the UK, so it’s getting down to really quite a simple mathematical equation in terms of the pace of change that is needed.”

Matt Hindle, of the Energy Networks Association (ENA), is sanguine about the relatively low profile of the gas sector in the national conversation on decarbonisation compared to its electrical cousin.

However, the trade body’s head of gas, is confident this is all about to change as the UK is forced to get into the details of its commitment to get to zero emissions by 2050.

He says: “What’s going on in electricity around decarbonisation is very visible. You see wind turbines on the horizon and solar panels on roofs. Then with electric vehicles, people are really seeing what decarbonisation means for their day-to-day lives.

“While there’s been plenty of progress on gas, it’s nowhere near as visible. Your typical biomethane plant is on a farm or a wastewater treatment plant and even if you did notice it, you could be forgiven for not knowing what it was.

“But that is all going to change when we get into the debate, which we know is coming, on heat decarbonisation. That is going to affect every single household in the country over the next few decades. While we can’t predict where that conversation will lead, there’s no way in which gas isn’t going to be part of the conversation.”

It’s not just in the domestic setting that gas is still hugely important. Hindle also points to the major industrial users across the UK and their role in the net-zero journey.

Finding answers to these questions is at the centre of the Gas Goes Green initiative, launched by the ENA and the five gas networks earlier this year. The project was set up in response to the Pathways to Net Zero report, compiled by energy consultancy Guidehouse (formerly Navigant), which recommended 15 steps towards transforming the UK’s 284,000km of gas pipelines to deliver zero-carbon hydrogen and biomethane.

The workstreams set out in Gas Goes Green range from safety measures, to developing a smart grid and finding ways to engage the public in the debate. But, clearly the key is to prove the case for for the mas distribution of hydrogen – both on a technical and a cost basis.

Hindle refuses to be drawn into the often acrimonious discourse on whether hydrogen, heat pumps or a combination of the two currently have the most compelling case for unlocking the decarbonisation of heat.

His concern is simply that real progress is made on testing all the potential technologies that could help this transition.

“We need to see two things – firstly, we have to try these technologies at scale and in the real world. This can’t just be academic, we have to see how they will work for consumers and what the system impact will be in a concentrated way.

“Then it’s going to ultimately be a policy-led process. The level of change that is needed can’t be driven by the market under current conditions. The government needs to set the ball rolling.”

UK can be a world leader on green gas

This brings us to the role the gas networks have to play in the green recovery and what the industry’s pitch is to government.

“If you just look at the opportunities around industrial clusters, those go so much further than commercial users”, Hindle insists. “The benefits ripple out to the areas around them in terms of jobs, investment and the low-carbon energy sources provided.”

Hindle also believes gas gives the UK the chance to become a global leader, ushering in a new zero-carbon industrial revolution.

“There is real potential, particularly around domestic heating. The UK has an extensive gas grid and by pioneering its use for green gas we can develop the technology, expertise and skills that will be very marketable, given the interest in hydrogen for many countries.”

He adds: “We still have a leading position in the thinking and the technology around hydrogen for domestic heat and we have some fantastic projects that are pushing that forward. There’s real advantage if you marry that up with work on distribution network conversion. I don’t think any other country is doing that.”

Hindle says that for real progress to be achieved this work needs to be linked to policy around hydrogen production.

Missed opportunities

As well as ambition from government, the ENA is keen to see Ofgem embrace the opportunities presented over the next five-year price control period.

While gas networks fared better than their counterparts in electricity transmission out of Ofgem’s draft determinations, there was still disquiet about the lack of support for key projects and the liberal use of uncertainty mechanisms.

Hindle says: “The timing of the decisions is key. The mechanisms in the price control are capable of delivering the investment and the programmes that are set out in our zero-carbon commitment. But, the question is around the speed at which you can use those mechanisms. That’s where we’re concerned.

“For instance, what changes in heat policy would trigger that re-opener.

“We could use the price control to really drive that investment and innovation. At the moment it feels like a missed opportunity.”

While the gas networks may sometimes be the wallflower of the energy sector, when the public does notice them, it tends to approve. This is another incentive to give them a leading role in decarbonisation, Hindle insists.

“When you look at strength of companies in terms of trust and support, the networks always come out really strongly. Given that consumers will need a trusted voice, the networks can provide that.

“We also have a really important role in advising local authorities on their climate plans. There is a danger of the networks becoming the forgotten piece of the jigsaw in all of this. But it’s vital that the ambition shown by local authorities is informed by an understanding of the impact on the energy system, and the opportunities there. We can be a vital enabler to those plans all across the country.”

Find out more about the utilities sector’s plans to Build Back Better in our dedicated series, culminating in the Build Back Better Forum on 20-21 October