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Phoenix Natural Gas: Delivering a Lower Carbon Future

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Phoenix Natural Gas: Delivering a Lower Carbon Future Section 1 — Background Natural Gas in NI Natural Gas Delivering a lower carbon future 1 Natural Gas August Delivering a lower carbon future 2019 Introduction 4 Since the introduction of natural gas into Northern 5 Ireland (NI) over 20 years ago the industry has been recognised as one of the most successful greenfield infrastructure projects of its generation 6 introducing fuel choice as well as consumer competition, adding value to the environmental, 7 social and economic prosperity of NI. During this time the industry has demonstrated its ability to deliver to a consistently high quality and level of output to include the development of an effective and competitive wider industry and supply chain providing for gas consumer’s needs. Furthermore the industry has a proven track record when it comes to delivery on regulated and governmental targets by creating a strong consumer brand and responding to marketplace demands. The gas industry has been a key enabler for the reduction in carbon emissions in NI over the last 20 years, however the worldwide challenges associated with climate change will demand further action to move to a lower carbon economy in the future. Critically, NI must have a focused plan and direction supported by relevant policies, incentive support and a regulated framework that allows the industry, investors and marketplace to collaboratively deliver on challenging targets. The natural gas industry 17 is ready and equipped to be front and centre 18 of this energy transition. 20 This paper, divided into three sections, covers the significant contribution the NI Natural Gas Industry has made to a carbon reduction to date and how increased utilisation of natural 22 gas can support a lower carbon future. 24 3 Natural Gas August Section 1 — Background Natural Gas in NI Delivering a lower carbon future 2019 Executive Summary Section 1 Greenhouse Gases: The Challenge In this paper we will provide an insight into the significant contribution the natural 6 Greenhouse Gases—The worldwide challenge gas industry has and will continue to make in providing solutions for a lower carbon future in NI. 7 UK Greenhouse Gas Statistics Outlined below are some of the most pertinent points from the paper which are further detailed within: 8 NI Greenhouse Gas Emissions 9 NI Energy Policy Position Gas Emissions • NI benefits from one of the most modern and • In the absence of government policy or efficient gas networks in the world and by the legislation, NI energy users have embraced end of 2022 will be distributing gas to around natural gas due to its wider environmental, 320,000 homes and businesses economic and lifestyle benefits Section 2 • The gas infrastructure is equipped and • The gas industry recognises that consumers Northern Ireland Natural Gas Industry uniquely sized to be able to support the must be at the heart of the energy transition long-term lower carbon needs of NI and that cost effective and less disruptive 10 Development of the Natural Gas Industry technologies will be favoured • No other utility infrastructure can provide by energy consumers affordable, practical solutions to a lower 12 Natural Gas: The Greener Option carbon economy without the need for • The gas industry recognises the importance significant investment in network upgrade, of energy efficiency in delivering a lower 14 Natural Gas: The Fuel of Choice disruption to existing homes and businesses carbon economy and the importance of and considerable behavioural changes to continuing to educate consumers on the role 14 energy users heating needs both technological innovation and behavioural changes can have on reducing energy usage Section 3 Future of Natural Gas in Northern Ireland • To date 12 million tonnes of C02 have been • The natural gas infrastructure will play removed from the atmosphere as a result a key role in the delivery of a lower carbon 18 Future utilisation of natural gas network of NI energy user’s conversion to natural gas future through further connections to (1996 – 2018) the gas network and future gas utilisation opportunities 19 Maximising gas availability • In 2018 NI natural gas users saved 1.1m tonnes of CO2 – the equivalent of 747,294 cars being • Future utilisation opportunities will include 20 Improved Energy Efficiency within Domestic Homes removed from NI roads the injection of biomethane into the existing gas network, Compressed Natural Gas to help 22 Biomethane: Greening our Gas Network • By 2022 (based on forecast growth in gas reduce NI transport greenhouse gases and the connections) NI gas users will save 1.3m introduction of hydrogen into the gas network 24 Decarbonisation of NI Transport tonnes of C02 annually • Local Energy Policy and regulatory frameworks must act as enablers for the required 26 Decarbonisation of Gas Network investment that facilitates the acceleration of lower carbon solutions 30 Conclusions 4 5 Natural Gas August Section 1 — Background Natural Gas in NI Delivering a lower carbon future 2019 Greenhouse Gases UK Greenhouse A worldwide challenge Gas Statistics What are greenhouse gases? 1,000 The earth is surrounded by a layer of gases that act like the walls of a greenhouse – they Total Greenhouse e) Gas Emissions 2 allow sunlight to pass through but stop much of its heat from leaving. These greenhouse 800 gases are a good thing, without them the planet would be very cold, but as a consequence of how we are living our lives there are too many greenhouse gases in the atmosphere. As a result, we are seeing changes in our climate which if continued could cause significant 600 harm to our environment and our future. Carbon Dioxide Emissions 400 The main greenhouse gases are water vapour, carbon dioxide, methane, ozone, nitrous Decrease in the use oxide and chlorofluorocarbons. Carbon dioxide is the most significant greenhouse gas of coal for electricity affected by human activity which is why there is a focus on how to reduce the amount 200 generation led to of it being released into the atmosphere. reduced emissions Greenhouse gas emissions (MtCO 0 Current Trends 1990 1995 2000 2005 2010 2015 Figure 1.1 illustrates the 1990–2017 trends in total greenhouse gas emissions of the five Figure 1.2 Source: Department for Business, Energy & Industrial Strategy largest emitting countries and the European Union, who collectively have a 63% share in global emissions. Most of these five countries and the EU showed a real increase in greenhouse gas emissions in 2017, except in the United States, where emissions remained constant. Latest figures estimate UK emissions reduced Within the European Union, the United Kingdom, Germany and the Netherlands showed by 43.5% between the base year (1990) and 2018, decreasing emissions whereas the largest increases in 2017 were seen in Spain and France. a further 2.5% reduction from 2017 figures. Together the five largest emitting countries and the European Union account for 51% of the world population, 65% of global gross domestic product (GDP), accounted for 68% of total global CO2 emissions and about 63% of total global greenhouse gas emissions. UK Emissions Activity 2018 UK Greenhouse Gas Emissions are provisionally Global greenhouse gas emissions, estimated to be lower than 2017. per country and region gigatonnes CO2 eq International Transport 2017 -2018 Changes 60 Other Countries Total Greenhouse Carbon Dioxide 50 Other G20 Countries Gas Emissions Emissions Japan 40 Russian Federation 3% 2% 30 India European Union (EU-28) 20 United States China 10 Emissions do not include 449 364 0 pblnl those from land-use change MtCO2e MtCO2e 1990 1995 2000 2005 2010 2015 2020 Figure 1.1 Source: EDGAR v5.0 (CO2: IEA and others), v4.3.2 (CH4, N20) FT2017 (EC-JRC/PBL, 2018). Figure 1.3 Source: Department for Business, Energy & Industrial Strategy 6 7 Natural Gas August Section 1 — Background Natural Gas in NI Delivering a lower carbon future 2019 NI Greenhouse Gas Emissions NI Energy Policy Position Based on the latest data available (2017), NI’s greenhouse gas emissions were estimated to be 20 million tonnes of carbon dioxide equivalent. This was a decrease of 3% compared to 2016. The challenge The trends and challenges in terms of greenhouse gas reductions are complex and vary across different parts of the world and indeed different parts of the UK. Importantly, NI has devolved control of the power and energy sector, where effective policy is crucial to deliver long term carbon reductions. The challenges with greenhouse gases extend across a number of key sectors in NI that impact upon business, community and social policies. Northern Ireland accounted for UK Therefore, the Energy Policy that the Department m for the Economy are currently drafting, which 4% 460 is due for consultation in 2020 must grasp of UK greenhouse Tonnes of CO2 gas emissions the opportunity to tailor an energy policy that in 2017. supports the role natural gas can play in the 4% delivery of a lower carbon future. The energy policy needs to challenge the traditional role of economic regulators and be an enabler for the delivery of a sustainable, affordable, lower carbon future, shaped for the Greenhouse Gas Emissions specific needs of NI. 44%% by Sector NI 2017 4% 27% To effectively influence continued decreases in greenhouse gases, a multi-stranded, cross government departmental range of solutions, technological advances, behavioural Agriculture - Includes emissions from livestock, changes and policy changes will need to be implemented and adopted across the largest agricultural soils, stationary combustion and 12% off-road machinery. polluting sectors. Transport - Road transport is the most significant source. Also includes domestic & shipping aviation. NI Energy Supply - Predominantly from power stations 13% 20m but also oil refineries and other fuel production. Tonnes of CO2 23% Residential - Includes fuel combustion for heating and cooking.
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