Energy UK has published the first in a series of briefings looking at the challenges involved with managing the changing role of gas in the transition to Net Zero.
Produced in partnership with the Carbon Capture and Storage Association (CCSA), “Fuelling the Future” underlines the UK’s continuing reliance on gas while it develops its world-leading sources of clean power. Natural gas currently provides more than a third of the UK’s total energy demand, is responsible for a similar proportion of its electricity generation, and heats over 70% of UK homes.
However, the document also highlights the need for change on environmental, economic and security of supply grounds. Gas is responsible for over half of the UK’s greenhouse gas emissions, is subject to volatile pricing which directly impacts customers – as seen by record energy bills over the last two years – and with the UK now importing over half of its gas, our reliance leaves us exposed to instability and conflict in other parts of the world.
Gas will continue to play an important but changed role in the future energy system – so this evolution will need to be carefully managed. The role of gas will change from a major source of power to one which provides extra supply at times of peak demand. Its carbon emissions will need to be captured and stored and other technologies will need to provide much of the flexibility it currently provides, including by reducing demand.
So, the series will look at how to manage this process across power, heating and industry, through supporting the development and roll-out of low carbon alternatives and technologies like hydrogen, carbon capture, storage and heat pumps – including having the necessary supply chains and skills in place.
Energy UK’s Deputy Director, Kisha Couchman said:
“Given the continuing reliance on natural gas right across our economy, managing its transition to a future where it plays a reduced but still vital role is one of the biggest challenges we face. While the overall ambition is clear, we need much greater clarity and certainty, including detailed plans on how we develop and introduce emerging technologies and the exact role they will be expected to play. We need to have that discussion and then make those decisions quickly so we hope these briefings will contribute to that.”
Olivia Powis, UK Director, Carbon Capture & Storage Association said:
“The UK still relies on gas to heat our homes, power our economy and provide energy security. Reducing emissions from gas production with methods such as Carbon Capture Utilisation and Storage (CCUS) will allow us to develop a decarbonised energy system, by providing flexible, low-carbon power generation, enabling more renewables on the system and reducing reliance on imported fossil fuels, making an important contribution to a resilient energy mix. We look forward to working closely with Energy UK to further developing this series of work.”
Notes to editors
- Energy UK is the trade association for the energy industry with over 100 members – from established FTSE 100 companies right through to new, growing suppliers, generators and service providers across energy, transport, heat and technology. Our members deliver nearly 80% of the UK’s power generation and over 95% of the energy supply for 28 million UK homes as well as businesses. The sector invests £13bn annually and delivers nearly £30bn in gross value – on top of the nearly £100bn in economic activity through its supply chain and interaction with other sectors. The energy industry is key to delivering growth and plans to invest £100bn over the course of this decade in new energy sources. The energy sector supports 700,000 jobs in every corner of the country. Energy UK plays a key role in ensuring we attract and retain a diverse workforce. In addition to our Young Energy Professionals Forum, which has over 2,000 members representing over 350 organisations, we are a founding member of TIDE, an industry-wide taskforce to tackle Inclusion and Diversity across energy.
- The CCSA is the trade association promoting the commercial deployment of Carbon Capture, Utilisation and Storage (CCUS), an essential solution to deliver net zero emissions across the economy, predominantly in power, industrial and transport sectors. It works with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations.