WHITE

PAPER

A greener gas 800

Range

grid: What are

Average
600

Greenhouse gas emissions (g CO2 eq/ kWh H2)

the options?
400

Natural gas emissions (supply and combustion) 230 - 318 gCO2eq/kWh

200

0
Thursday 20th July 2017

BACKGROUND -200

Gas networks are used in many countries to -400

deliver natural gas to industrial and domestic Coal gasification NG SMR/ATR Nuclear thermo Solar PV Bio gasification Coal gasification NG SMR/ATR Wind Bio gasification
without CCS without CCS splitting Alkaline without CCS with CCS with CCS Alkaline with CCS
consumers, supplying energy for a range
of services such as heating and cooking.
However, the future for gas networks is Figure 1 Ranges of estimates of total greenhouse gas (GHG) emissions associated with
uncertain mainly due to the carbon dioxide hydrogen production from different technologies and feedstocks, expressed in gCO2eq/
(CO2) and methane emissions associated with kWh hydrogen produced. Notes: NG = natural gas, ATR = Autothermal Reformer, SMR =
natural gas systems. Steam Methane Reformer, CCS = Carbon Capture and Storage

The emissions from natural gas systems and

the difficulty in capturing them is a problem
20
for global carbon reduction ambitions.
18
Electricity
While electricity and heat pumps could 16
be used to decarbonise domestic and Range
14
commercial energy services, there are
Retail gas price (p/kWh)

Average
significant technical, economic and consumer 12
Electricity

barriers to electrifying heat. Low-carbon gas 10 Gas

networks could therefore still play a significant 08
role in the future energy system and
06
contribute significantly to decarbonisation. Gas

04

In the third report in the Sustainable Gas 02

Institute White Paper Series, we review the
0
evidence on the options for the future use Biomethane Hydrogen

of gas networks. The paper focuses on the

use of biomethane and hydrogen, and their
technical potential, carbon intensity and the Figure 2 Estimate of retail price of decarbonised hydrogen and biomethane compared to
costs associated with decarbonisation. the EU average retail prices of natural gas and electricity in 2015.

KEY FINDINGS:

1 Gas networks could play an important
role in decarbonising the future energy
system.
• There are significant benefits to
decarbonising the gas network. For
example, there is value to the existing
assets, and in the inherent flexibility of
gas. There is also a general consumer
preference for gas appliances; and it is
relatively low cost and easy to install gas-
fired heating systems.
• However, the technical capabilities
of existing networks, and the level of
decarbonisation achievable, still need to
be explored, and resulting costs remain
uncertain.
2 The storage potential of low carbon 3 Decarbonised gas offers a range of
gas offers a significant advantage over advantages, but there is no ‘best option’.
electricity networks. • Biomethane is the most compatible with
• Gas has relatively low-cost flexibility, existing gas networks and may deliver
particularly for seasonal fluctuations in negative emissions. However, there are
energy demand. limitations on the future availability of
• Future decarbonised gas also has this biomass, used to generate biomethane.
flexibility but this is more technically • Hydrogen could be delivered through
challenging and expensive for an electrolysis from renewable energy without
electricity system. Per kilowatt-hour the the need for carbon capture and storage
cheapest forms of electricity storage are (CCS). However, electrolysis is currently
approximately four times more expensive expensive relative to other methods,
than the highest cost estimates for although it is likely that costs will decrease.
hydrogen storage (salt caverns). However, Producing hydrogen through steam
the value of this flexibility is unclear methane reformers (SMR) is scalable at
and depends on the future balance of relatively low cost. But using natural gas to
decarbonised gas and electricity demand. generate hydrogen in SMR could increase

Download the full white paper from: www.sustainablegasinstitute.org/a-greener-gas-grid

 gas demand by 15% to 66% per unit of • Developing consumer awareness
6 Countries with mature gas networks
energy delivered to consumers, relative to approaches for network conversion.
may find decarbonisation options
direct use of natural gas. Choosing areas of the existing gas network
attractive given the value of their existing
to convert to hydrogen will be challenging.
assets (e.g. Netherlands, UK and USA)
4 The range of CO2 emissions estimates Questions will arise around what rights
• Existing low-pressure gas networks are
for the different methods to produce low consumers have, and how to ensure equity
compatible with biomethane, and the cost
carbon gas is extremely large. between all network consumers and what
of converting networks to carry hydrogen
• This is -371 to 642 gCO2eq/kWh for this means for competitive energy markets.
is expected to be small relative to total
hydrogen and -50 to 450 gCO2eq/kWh for • Advancing the evidence and standards for
system costs.
biomethane. hydrogen safety. While there is evidence
• Countries with gas networks connected to
• The highest and most variable emissions that the safety of hydrogen networks
less than 50% of consumers may continue
come from fossil fuel routes to produce is not a barrier, there is, currently, little
to develop low-pressure networks and
hydrogen that do not include CCS. demonstration evidence. An evidence
may be able to design those assets to
These technologies are likely to produce base on safety issues should be developed
be compatible with future hydrogen
carbon intensities greater than current before significant commitments are made
conversion.
gas networks. CCS is therefore needed to on hydrogen networks.
• Where low-pressure gas distribution
ensure this gas is low carbon.
networks are very small or non-existent
• Emissions estimates for SMR with CCS are 9 Future research is needed to develop
the cost of building may be significant,
between 23 to 150 gCO2eq/kWh, while practical demonstration projects, and
but not prohibitive. For example, to build
for electrolysis using renewable electricity new whole-system modelling that
a new hydrogen low-pressure distribution
sources the range is from 25 to 178 incorporates evidence from practical
network similar in length to the networks
gCO2eq/kWh. The carbon intensity of heat experience and quantifies the system-
existing in the UK or Japan might cost
might be between 26 and wide impacts.
£145 billion. Spread over 20 million
167 gCO2eq/kWh for methane based • Future demonstration projects could
domestic gas consumers (UK) this is
hydrogen and 27 to 198 gCO2eq/kWh for include examining the options to
£7,250 per household, which is similar to
hydrogen from electrolysis, assuming a understand real world efficiencies, carbon
the cost of installing air or ground source
90% efficient hydrogen boiler. Heat pumps intensities and costs achievable. In
heat pumps. This can be compared to an
with 250% efficiency using the same addition, it is important to test hydrogen
estimated cost for repurposing an existing
electricity might deliver heat with a CO2 safety, in households, commercial
natural gas network of the same length to
intensity of 10 to 71 gCO2eq/kWh. premises and in the existing low-pressure
transport hydrogen of £2 billion or £10,000
gas network. Research should also be
per km.
5 The cost estimates for different undertaken into consumer and system-
decarbonised gas options vary level impacts associated with new
7 There is limited real-world evidence
significantly. technologies such as hybrid gas/electric
on the capability of low-pressure gas
• The resulting retail price estimate for heat pumps, fuel cells or gas heat pumps.
networks to transport 100% hydrogen gas
biomethane might be 4.4 to 13.6 p/kWh • Better whole-systems modelling analysis is
streams effectively.
(average 8.1 p/kWh) compared to an also needed. This could involve examining
• Several studies have tested the durability,
estimate for hydrogen of 4.9 to the conditions and locations under which
integrity and safety of existing low-
18.4 p/kWh (average 9.3 p/kWh). This can gas networks may be competitive in
pressure gas distribution infrastructure in
be compared to an EU average retail price addition to modelling the interactions
a small number of countries. They found
in 2015 for natural gas of 5.4 p/kWh, and between gas, electricity and other energy
increased, but manageable gas leakage
electricity at 17p/kWh. Prices are in pence infrastructures to better quantify the
rates and safety concerns.
per kilowatt hour [p/kWh]. system value of gas flexibility.
• However, this evidence often focusses on
• If the future efficiency of methane or
hydrogen/methane blends and not on
hydrogen-fired boilers is 90%, the costs of
100% hydrogen gas streams. The diversity
delivered heat ranges from 4.9 to
of materials and variable quality and age
15.1 p/kWh heat for biomethane and
of existing low-pressure gas networks is an
5.4 to 20.4 p/kWh heat for hydrogen. SUPPLY CHAIN EMISSIONS
issue for extrapolating these findings to
• For comparison, at heat pump efficiencies
real-world gas systems. Supply chain emissions are
of 250% and a retail electricity price of
increasingly important as emissions
17 p/kWh, heat pumps could produce heat
8 Key considerations for policy include: from decarbonised gas production
for 6.8 p/kWh.
• Setting gas decarbonisation standards. decrease. This includes methane and
• Converting consumers to hydrogen
The carbon intensity of decarbonised CO2 emissions in the natural gas supply
gas networks may cost over £3,000 per
gases differs due to a range of factors. chain, the embodied CO2 emissions in
household including appliances and
Policy approaches should ensure these electricity generation, and the negative
supporting equipment. This can be
systems are sufficiently low carbon which emissions associated with biomass
compared to the cost of installing air
could include a standard for low carbon cultivation.
source heat pumps at between £4,000 to
gas or a market based mechanism.
£11,000 or ground source heat pumps at
£13,000 to £20,000.

For further information on this subject

The Sustainable Gas Institute at Imperial
please contact the lead author at DOWNLOAD THE WHITE PAPER:
College London aims to explore the role
SGI@imperial.ac.uk W W W.SUSTAINABLEGASINSTITUTE.
of natural gas in the world energy mix.
ORG/A-GREENER-GAS-GRID
For media enquiries, please contact
Follow us on twitter: @SGI_London
Zara Qadir (z.qadir@imperial.ac.uk)