Policy & Socio-Economics

With more renewables on the Swedish electricity market while decommissioning nuclear power plants electricity supply increasingly fluctuates and electricity prices are more volatile. There is hence a need for securing the electricity supply before energy storage solutions become widespread. Electricity price fluctuations moreover affect operating income of nuclear power plants due to their inherent operational inflexibility. Since the anticipated new applications of hydrogen in fuel cell vehicles and steel production producing hydrogen has become a potential source of income particularly when there is a surplus supply of electricity at low prices. The feasibility of investing in hydrogen production was investigated in a nuclear power plant applying Swedish energy policy as background. The analysis applies a system dynamics approach incorporating the stochastic feature of electricity supply and prices. The study revealed that hydrogen production brings alternative opportunities for large-scale electricity production facilities in Sweden. Factors such as hydrogen price will be influential and require in-depth investigation. This study provides guidelines for power sector policymakers and managers who plan to engage in hydrogen production for industrial applications. Although this study was focused upon nuclear power sources it can be extended to hydrogen production from renewable energy sources such as wind and solar.

The world is undergoing a substantial energy transition with an increasing share of intermittent sources of energy on the grid which is increasing the challenges to operate the power grid reliably. An option that has been receiving much focus after the COVID pandemic is the development of a hydrogen economy. Challenges for a hydrogen economy are the high investment costs involved in compression storage and long-distance transportation. This paper analyses an innovative proposal for the creation of hydrogen ocean links. It intends to fill existing gaps in the creation of a hydrogen economy with the increase in flexibility and viability for hydrogen production consumption compression storage and transportation. The main concept behind the proposals presented in this paper consists of using the fact that the pressure in the deep sea is very high which allows a thin and cheap HDPE tank to store and transport large amounts of pressurized hydrogen in the deep sea. This is performed by replacing seawater with pressurized hydrogen and maintaining the pressure in the pipes similar to the outside pressure. Hydrogen Deep Ocean Link has the potential of increasing the interconnectivity of different regional energy grids into a global sustainable interconnected energy system.

This report provides you with the information you need if you have plans to interact with or connect to our gas networks. Our vision is to set the standards that all of our customers love and others aspire to. This means that our long-term plans are shaped by our customers and stakeholders. This annual publication is an important opportunity to share our latest long-term plan and our strategic thinking and seek feedback so we can continue to adapt our activities going forward. We want to make it as easy and efficient as possible for you to interact with us.

​Cadent Long Term Development Plan 2019​​​

Decentralisation and sector coupling are becoming increasingly crucial for the decarbonisation of the energy system. Resources such as waste and water have high energy recovery potential and are required as inputs for various conversion technologies; however waste and water have not yet been considered in sector coupling approaches but only in separate examinations. In this work an open-source sector coupling optimisation model considering all of these resources and their utilisation is developed and applied in a test-bed in an Israeli city. Our investigations include an impact assessment of energy recovery and resource utilisation in the transition to a hydrogen economy with regard to the inclusion of greywater and consideration of emissions. Additionally sensitivity analyses are performed in order to assess the complexity level of energy recovery. The results demonstrate that waste and water energy recovery can provide high contributions to energy generation. Furthermore greywater use can be vital to cover the water demands in scarcity periods thus saving potable water and enabling the use of technology. Regarding the transition to hydrogen technologies resource energy recovery and management have an even higher effect than in the original setup. However without appropriate resource management a reduction in emissions cannot be achieved. Furthermore the sensitivity analyses indicate the existence of complex relationships between energy recovery technologies and other energy system operations.

The North Sea region located in the Northwest of Europe is expected to be a frontrunner in the European energy transition. This paper aims to analyse different optimal system configurations in order to meet net-zero emission targets in 2050. Overall the paper presents two main contributions: first we develop and introduce the IESA-NS model. The IESA-NS model is an optimization integrated energy system model written as a linear problem. The IESA-NS model optimizes the long-term investment planning and short-term operation of seven North Sea region countries (Belgium Denmark Germany the Netherlands Norway Sweden and the United Kingdom). The model can optimize multiple years simultaneously accounts for all the national GHG emissions and includes a thorough representation of all the sectors of the energy system. Second we run several decarbonisation scenarios with net-zero emission targets in 2050. Relevant parameters varied to produce the scenarios include biomass availability VRE potentials low social acceptance of onshore VRE ban of CCUS or mitigation targets in international transport and industry feedstock. Results show a large use of hydrogen when international transport emissions are considered in the targets (5.6 EJ to 7.3 EJ). Electrolysis is the preferred pathway for hydrogen production (up to 6.4 EJ) far ahead of natural gas reforming (up to 2.2 EJ). Allowing offshore interconnectors (e.g. meshed offshore grid between the Netherlands Germany and the United Kingdom) permits to integrate larger amounts of offshore wind (122 GW to 191 GW of additional capacity compared to reference scenarios) while substantially increasing the cross-border interconnection capacities (up to 120 GW). All the biomass available is used in the scenarios across multiple end uses including biofuel production (up to 3.5 EJ) high temperature heat (up to 2.5 EJ) feedstock for industry (up to 2 EJ) residential heat (up to 600 PJ) and power generation (up to 900 PJ). In general most of the results justify the development of multinational energy system models in which the spatial coverage lays between national and continental models.

The independent cross-party report highlights a ‘sensible middle ground’ in the renewables debate and calls for more effort in building cross-party consensus. It finds that the UK has only just begun to harness low carbon renewable resources bigger than North Sea oil and gas and argues that the Government could do more to narrow the scope of debate about the technology mix beyond 2020. It argues that it should work with industry and academia first to establish ‘low regrets’ levels of technology deployment and second to ensure that policies are in place to incentivise investments such as supply chain investment needed to deliver these low regrets actions.

This approach would help provide the longer term clarity that could secure supply chain investments giving the UK a head-start in the global race. The report finds that these investments could be missed delayed or more expensive if there is insufficient confidence about long term demand for key technologies such as offshore wind. Work by Government to help incentivise these investments would increase the likelihood that technology cost reductions are achieved and help mitigate against high costs if new nuclear or carbon capture and storage development fail or are delayed.

On affordability the report finds that there are ‘hidden’ benefits that the UK could see from investing more in renewables through electricity bills between now and 2020. These include: avoiding bill increases driven by fossil fuels; making electricity bills more predictable; and providing an economic boost. The extra money paid to support renewables and other low carbon generation such as nuclear power could be more than offset by energy efficiency savings although Government needs to do more to show how these savings will arise.

On sustainability the report tackles myths about the carbon emitted in manufacturing renewable technologies or in backing up varying technologies such as wind solar wave and tidal. It finds that even when considering these factors renewables are still amongst the most low carbon options. The report also looks at the sustainability of electricity from biomass. Bioenergy overall could provide up to ten per cent of energy and reduce the cost of cutting carbon by £44 billion per year in 2050. The Government’s new biomass policies are a pragmatic response to concerns about the sustainability of biomass power which balances protecting the environment building public confidence and enabling the sector to grow.

On security of supply the inquiry argues that debate should focus on the whole electricity system and that individual technologies should be considered in the context of how they add to or reduce system risks. Considered like this renewables reduce some risks such as fuel supply risks which caused concern last winter and add to others such as system balancing risks. System balancing risks from varying renewables (wind solar wave and tidal technologies) are manageable using a number of existing and developing technologies.

The independent report chaired by former Energy Minister Charles Hendry MP and Shadow Energy Minister Baroness Worthington was compiled between May and September 2013 and was sponsored by Siemens and DONG Energy. It is part of a year-long independent and cross party inquiry into the UK power sector the Future Electricity Series sponsored by the Institution of Gas Engineers and Managers.

Link to Launch Video

Hydrogen mobility is one option for reducing local emissions avoiding greenhouse gas (GHG) emissions and moving away from a mainly oil-based transport system towards a diversification of energy sources. As hydrogen production can be based on a broad variety of technologies already existing or under development a comprehensive assessment of the different supply chains is necessary regarding not only costs but also diverse environmental impacts. Therefore in this paper a broad variety of hydrogen production technologies using different energy sources renewable and fossil are exemplarily assessed with the help of a Life Cycle Assessment and a cost assessment for Germany. As environmental impacts along with the impact category Climate change five more advanced impact categories are assessed. The results show that from an environmental point of view PEM and alkaline electrolysis are characterized by the lowest results in five out of six impact categories. Supply chains using fossil fuels in contrast have the lowest supply costs; this is true e.g. for steam methane reforming. Solar powered hydrogen production shows low impacts during hydrogen production but high impacts for transport and distribution to Germany. There is no single supply chain that is the most promising for every aspect assessed here. Either costs have to be lowered further or supply chains with selected environmental impacts have to be modified.

Hydrogen production using renewable power is becoming an essential pillar for future sustainable energy sector development worldwide. The Sultanate of Oman is presently integrating renewable power generations with a large share of solar photovoltaic (PV) systems. The possibility of using the solar potential of the Sultanate can increase energy security and contribute to the development of the sustainable energy sector not only for the country but also for the international community. This study presents the hydrogen production potential using solar resources available in the Sultanate. About 15 locations throughout the Sultanate are considered to assess the hydrogen production opportunity using a solar PV system. A rank of merit order of the locations for producing hydrogen is identified. It reveals that Thumrait and Marmul are the most suitable locations whereas Sur is the least qualified. This study also assesses the economic feasibility of hydrogen production which shows that the levelized cost of hydrogen (LCOH) in the most suitable site Thumrait is 6.31 USD/kg. The LCOH in the least convenient location Sur is 7.32 USD/kg. Finally a sensitivity analysis is performed to reveal the most significant influential factor affecting the future’s green hydrogen production cost. The findings indicate that green hydrogen production using solar power in the Sultanate is promising and the LCOH is consistent with other studies worldwide.

Energy system integration enables raising operational synergies by coupling the energy infrastructures for electricity methane and hydrogen. However this coupling reinforces the infrastructure interdependencies increasing the need for integrated modeling of these infrastructures. To analyze the cost-efficient sustainable and secure dispatch of applied large-scale energy infrastructures an extensive and non-linear optimization problem needs to be solved. This paper introduces a nested decomposition approach with three stages. The method enables an integrated and full-year consideration of large-scale multi-energy systems in hourly resolution taking into account physical laws of power flows in electricity and gas transmission systems as boundary conditions. For this purpose a zooming technique successively reduces the temporal scope while first increasing the spatial and last the technical resolution. A use case proves the applicability of the presented approach to large-scale energy systems. To this end the model is applied to an integrated European energy system model with a detailed focus on Germany in a challenging transport situation. The use case demonstrates the temporal regional and cross-sectoral interdependencies in the dispatch of integrated energy infrastructures and thus the benefits of the introduced approach.

Electrification of the heat network in buildings together with a rise in popularity of Electric Vehicles (EVs) will result in a need to make investments in the electrical energy infrastructure in order to prevent congestion. This paper discusses the influence of hydrogen in future smart microgrids on these investments. Moreover smart control strategies i.e. EV management and demand response programs are used in this paper to lower the peak of electrical energy demand resulting in the reduction of these investments. Performances of microgrid with different levels of hydrogen penetration are discussed. It is shown that an increase in the level of hydrogen in the microgrid will reduce the electric grid investments costs but is not economically more beneficial than using ‘green’ gas due to the higher total economic costs.

To meet ambitious targets for greenhouse gas emissions reduction in the 2035-2050 timeframe hydrogen has been identified as a clean “green” fuel of interest. In comparison to fossil fuel use the burning of hydrogen results in zero CO2 emissions and it can be obtained from renewable energy sources. In addition to zero CO2 emissions hydrogen has several other attractive properties such as higher gravimetric energy content and wider flammability limits than most fossil fuels. However there are practical limitations to its widespread use at present which include low volumetric energy density in the gaseous state and high well-to-wheel costs when compared to fossil fuel production and distribution. In this paper a review is undertaken to identify the current state of development of key areas of the hydrogen network such as production distribution storage and power conversion technology. At present high technology costs still are a barrier to widespread hydrogen adoption but it is envisioned that as scale of production increases then costs are likely to fall. Technical barriers to a hydrogen economy adoption are not as significant as one might think as key technologies in the hydrogen network are already mature with working prototypes already developed for technologies such as liquid hydrogen composite cryotanks and proton exchange membrane fuel cells. It is envisioned that with continuous investment to achieve requisite scale that a hydrogen economy could be realised sooner rather than later with novel concepts such as turboelectric distributed propulsion enabled by a shift to hydrogen-powered network.

There is an increasing body of evidence that leakage of hydrogen to the atmosphere will have an indirect warming effect on the climate and so should be minimised.<br/>This study investigates and quantifies the current understanding of potential hydrogen emissions in the different sectors across a future hydrogen value-chain. It shows that there are some key areas in production distribution and end-use where there could potentially be significant leaks of hydrogen to the atmosphere. In some of these areas there are clear mitigation options while with others the options are less clear due to uncertainty in either data or future technology development.<br/>The report recommends further research and development to reduce the main leak pathways and additional evidence gathering in key areas where there is currently inadequate data to make accurate predictions.<br/>The study was commissioned by BEIS and conducted by the Frazer-Nash consultancy.

The aim of this study was to evaluate the motorization market of electric vehicles powered by hydrogen cells in Poland. European conditions of such technology were indicated as well as original proposals on amendments to the law to increase the development pace of electromobility based on hydrogen cells. There were also presented economic aspects of this economic phenomenon. Moreover survey research was conducted to examine the preferences of hydrogen and electric vehicle users in 5 primary Polish cities. In this way the level of social acceptance for the technological revolution based on hydrogen cells and taking place in the motorization sector was determined.

Climate change primarily caused by the greenhouse gases emitted as a result of the consumption of carbon-based fossil fuels is considered one of the biggest challenges that humanity has ever faced. Moreover the Ukrainian crisis in 2022 has complicated the global energy and food status quo more than ever. The permanency of this multifaceted fragility implies the need for increased efforts to have energy independence and requires long-term solutions without fossil fuels through the use of clean zero-carbon renewables energies. Hydrogen technologies have a strong potential to emerge as an energy eco-system in its production-storage-distribution-utilization stages with its synergistic integration with solar-wind-hydraulic-nuclear and other zero-carbon clean renewable energy resources and with the existing energy infrastructure. In this paper we provide a global review of hydrogen energy need related policies practices and state of the art for hydrogen production transportation storage and utilization.

The urgency to achieve net-zero carbon dioxide (CO2) emissions by 2050 as first presented by the IPCC special report on 1.5°C Global Warming has spurred renewed interest in hydrogen to complement electrification for widespread decarbonization of the economy. We present reflections on estimates of future hydrogen demand optimization of infrastructure for hydrogen production transport and storage development of viable business cases and environmental impact evaluations using life cycle assessments. We highlight challenges and opportunities that are common across studies of the business cases for hydrogen in Germany the UK the Netherlands Switzerland and Norway. The use of hydrogen in the industrial sector is an important driver and could incentivise large-scale hydrogen value chains. In the long-term hydrogen becomes important also for the transport sector. Hydrogen production from natural gas with capture and permanent storage of the produced CO2 (CCS) enables large-scale hydrogen production in the intermediate future and is complementary to hydrogen from renewable power. Furthermore timely establishment of hydrogen and CO2 infrastructures serves as an anchor to support the deployment of carbon dioxide removal technologies such as direct air carbon capture and storage (DACCS) and biohydrogen production with CCS. Significant public support is needed to ensure coordinated planning governance and the establishment of supportive regulatory frameworks which foster the growth of hydrogen markets.

"Green hydrogen” i.e. hydrogen produced by splitting water with a carbon “free” source of electricity via electrolysis is set to become the energy vector enabling a deep decarbonisation of society and a virtuous water based energy cycle. If to date water electrolysis is considered to be a scalable technology the source of water to enable a “green hydrogen” economy at scale is questionable. Countries with the highest renewable energy potential like Australia are also among the driest places on earth. Globally 380000 GL/year of wastewater is available and this is much more than the 34500 GL/year of water required to produce the projected 2.3 Gt of hydrogen of a mature hydrogen economy. Hence the need to assess both technically and economically whether some wastewater treatment effluent are a better source for green hydrogen. Analysis of Sydney Water’s wastewater treatment plants alone shows that these plants have 37.6 ML/day of unused tertiary effluents which if electrolysed would generate 420000 t H2/day or 0.88 Mt H2/year and cover ∼100% of Australia’s estimated production by 2030. Furthermore the production of oxygen as a by-product of the electrolysis process could lead to significant benefits to the water industry not only in reducing the cost of the hydrogen produced for $3/kg (assuming a price of oxygen of $3–4 per kg) but also in improving the environmental footprint of wastewater treatment plants by enabling the onsite re-use of oxygen for the treatment of the wastewater. Compared to desalinated water that requires large investments or stormwater that is unpredictable it is apparent that the water utilities have a critical role to play in managing water assets that are “climate independent” as the next “golden oil” opportunity and in enabling a “responsible” hydrogen industry that sensibly manages its water demands and does not compete with existing water potable water demand.

This is the tenth annual Progress Report to the Scottish Parliament as required by the Climate Change (Scotland) Act 2009. This year’s report shows that in 2019 Scotland’s greenhouse emissions fell by 2% compared to 2018 and are now 44% below 1990 levels. The reductions were largely driven by the manufacturing and construction and fuel supply sectors with electricity generation remaining the biggest driver of emissions cuts over the past decade (2009-2019). The potential for further emissions savings from electricity generation has however largely run out.

The focus must now shift to ensuring that rapid emissions reductions are delivered with no further delay to allow Scotland to meet its legislated 2030 target.

This report and other reports by the Climate Change Committee can be downloaded on their website.

This study aimed to simulate the sector-coupled energy system of Germany in 2030 with the restriction on CO2 emission levels and to observe how the system evolves with decreasing emissions. Moreover the study presented an analysis of the interconnection between electricity heat and hydrogen and how technologies providing flexibility will react when restricting CO2 emissions levels. This investigation has not yet been carried out with the technologies under consideration in this study. It shows how the energy system behaves under different set boundaries of CO2 emissions and how the costs and technologies change with different emission levels. The study results show that the installed capacities of renewable technologies constantly increase with higher limitations on emissions. However their usage rates decreases with low CO2 emission levels in response to higher curtailed energy. The sector-coupled technologies behave differently in this regard. Heat pumps show similar behaviour while the electrolysers usage rate increases with more renewable energy penetration. The system flexibility is not primarily driven by the hydrogen sector but in low CO2 emission level scenarios the flexibility shifts towards the heating sector and electrical batteries.

South Korea has a plan to realize a hydrogen economy and it is essential to establish a main hydrogen pipeline for hydrogen transport. This study develops a cost estimation model applicable to the construction of hydrogen pipelines and conducts an economic analysis to evaluate various scenarios for hydrogen pipeline construction. As a result the cost of modifying an existing natural gas to a hydrogen pipeline is the lowest however there are issues with the safety of the modified hydrogen pipes from natural gas and the necessity of the existing natural gas pipelines. In the case of a short-distance hydrogen pipeline the cost is about 1.8 times that of the existing natural gas pipeline modification but it is considered a transitional scenario before the construction of the main hydrogen pipeline nationwide. Lastly in the case of long-distance main hydrogen pipeline construction it takes about 3.7 times as much cost as natural gas pipeline modification however it has the advantage of being the ultimate hydrogen pipeline network. In this study various hydrogen pipeline establishment scenarios ware compared. These results are expected to be utilized to establish plans for building hydrogen pipelines and to evaluate their economic feasibility.

With the rising threat of climate change green hydrogen is increasingly seen as the high-capacity energy storage and transport medium of the future. This creates an opportunity for low- and middle-income countries to leverage their high renewable energy potential to produce use and export low-cost green hydrogen creating environmental and economic development benefits. While identifying ideal locations for green hydrogen production is critical for countries when defining their green hydrogen strategies there has been a paucity of adequate geospatial planning approaches suitable to low- and middle-income countries. It is essential for these countries to identify green hydrogen production sites which match demand to expected use cases such that their strategies are economically sustainable. This paper therefore develops a novel geospatial cost modelling method to optimize the location of green hydrogen production across different use cases with a focus on suitability to low- and middle-income countries. This method is applied in Kenya to investigate the potential hydrogen supply chain for three use cases: ammonia-based fertilizer freight transport and export. We find hydrogen production costs of e3.7–9.9/kgH2 are currently achievable across Kenya depending on the production location chosen. The cheapest production locations are identified to the south and south-east of Lake Turkana. We show that ammonia produced in Kenya can be cost-competitive given the current energy crisis and that Kenya could export hydrogen to Rotterdam with costs of e7/kgH2 undercutting current market prices regardless of the carrier medium. With expected techno-economic improvements hydrogen production costs across Kenya could drop to e1.8–3.0/kgH2 by 2030.

This report analyses five case study reports in-depth across five EU countries as part of a broader analytical and critical exercise. This analytical work seeks to contribute to the development of new models for regional and local authorities aiming to boost support for Green Transition of their economies through smarter innovation policies using the smart specialisation (S3) approach. The work covered five regions from across the European Union representing a diversity of approaches to using S3 for Green Transition: the Basque Country in Spain the Centro region in Portugal the region of East and North Finland the region of Western Macedonia in Greece and the region of West Netherlands. The case studies included in this report consists of three sections on (i) Profile of the region and key development challenges; (ii) Innovation strategies and policies for green transition: incorporating societal challenges; (iii) Understanding and monitoring innovationled green transition. Drawing together the different elements presented the conclusion provides a summary overview of the case and the authors’ opinion on it.

Worldwide energy systems are experiencing a transition to more sustainable systems. According to the Hydrogen Roadmap Europe (FCH EU 2019) hydrogen will play an important role in future energy systems due to its ability to support sustainability goals and will account for approximately 13% of the total energy mix in the coming future. Correct hydrogen supply chain (HSC) planning is therefore vital to enable a sustainable transition. However due to the operational characteristics of the HSC its planning is complicated. Renewable hydrogen supply can be diverse: Hydrogen can be produced de-centrally with renewables such as wind and solar energy or centrally by using electricity generated from a hydro power plant with a large volume. Similarly demand for hydrogen can also be diverse with many new applications such as fuels for fuel cell electrical vehicles and electricity generation feedstocks in industrial processes and heating for buildings. The HSC consists of various stages (production storage distribution and applications) in different forms with strong interdependencies which further increase HSC complexity. Finally planning of an HSC depends on the status of hydrogen adoption and market development and on how mature technologies are and both factors are characterised by high uncertainties. Directly adapting the traditional approaches of supply chain planning for HSCs is insufficient. Therefore in this study we develop a planning matrix with related planning tasks leveraging a systematic literature review to cope with the characteristics of HSCs. We focus only on renewable hydrogen due to its relevance to the future low-carbon economy. Furthermore we outline an agenda for future research from the supply chain management perspective in order to support HSC development considering the different phases of HSCs adoption and market development.

Kazakhstan has long been regarded as a major exporter of fossil fuel energy. As the global energy sector is undergoing an unprecedented transition to low-carbon solutions new emerging energy technologies such as hydrogen production require more different resource bases than present energy technologies. Kazakhstan needs to consider whether it has enough resources to stay competitive in energy markets undergoing an energy transition. Green hydrogen can be made from water electrolysis powered by low-carbon electricity sources such as wind turbines and solar panels. We provided the first resource assessment for green hydrogen production in Kazakhstan by focusing on three essential resources: water renewable electricity and critical raw materials. Our estimations showed that with the current plan of Kazakhstan to keep its water budget constant in the future producing 2–10 Mt green hydrogen would require reducing the water use of industry in Kazakhstan by 0.6–3% or 0.036–0.18 km3/year. This could be implemented by increasing the share of renewables in electricity generation and phasing out some of the water- and carbon-intensive industries. Renewable electricity potential in South and West Kazakhstan is sufficient to run electrolyzers up to 5700 and 1600 h/year for wind turbines and solar panels respectively. In our base case scenario 5 Mt green hydrogen production would require 50 GW solar and 67 GW wind capacity considering Kazakhstan's wind and solar capacity factors. This could convert into 28652 tons of nickel 15832 tons of titanium and many other critical raw materials. Although our estimations for critical raw materials were based on limited geological data Kazakhstan has access to the most critical raw materials to support original equipment manufacturers of low-carbon technologies in Kazakhstan and other countries. As new geologic exploration kicks off in Kazakhstan it is expected that more deposits of critical raw materials will be discovered to respond to their potential future needs for green hydrogen production.

The modelling underpinning the scenarios for the EU long-term strategy did not include hydrogen trade. The assumption was that each Member State (MS) supplies its own needs for hydrogen and synthetic fuels. The goal of this study is to develop a model to undertake optimal geolocation of hydrogen production between MS including the possibility to trade hydrogen and therefore use the RES potential more optimally and decrease energy system costs at EU level. Specifically the new model helps to identify the geo-location of: 1. Renewable energy production (PV wind biomass hydro) 2. Location of RES and hydrogen production facilities 3. Storage infrastructure also for natural gas and storage technologies i.e. batteries pumping etc. 4. Infrastructure by road and pipeline

The European Union’s target to reach greenhouse gas neutrality by 2050 calls for a sharp decrease in the consumption of natural gas. This study assesses impacts of greenhouse gas neutrality on the gas system taking France and Germany as two case studies which illustrate a wide range of potential developments within the European Union. Based on a review of French and German GHG-neutral scenarios it explores impacts on gas infrastructure and estimates the changes in end-user methane price considering a business-as-usual and an optimised infrastructure pathway. Our results show that gas supply and demand radically change by mid-century across various scenarios. Moreover the analysis suggests that deep transformations of the gas infrastructure are required and that according to the existing pricing mechanisms the end-user price of methane will increase driven by the switch to low-carbon gases and intensified by infrastructure costs.