Ref. Ares(2020)6966373 - 20/11/2020
From:
To:
EC PRESIDENT VDL
Cc:
(CAB-VON DER LEYEN);
(CAB-VON DER LEYEN);
(CAB-VON DER LEYEN);
Subject:
Eurogas Letter on Smart Sector Integration Strategy
Date:
mardi 26 mai 2020 11:54:51
Attachments:
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Eurogas input - EU Strategy for Energy System Integration.pdf
Dear President von der Leyen
I am writing to you, on behalf of the Eurogas President, in anticipation of the publication of the
EU Strategy for Energy System Integration to share our association’s views on how to enable the
cost-effective, just, and timely decarbonisation of the EU economy. The EU Strategy for Energy
System Integration should provide the right framework conditions for the most cost-effective
path to decarbonisation. To do this policy choices must be based on a holistic assessment of
system costs and consider all externalities, rather than promoting specific technology solutions
for specific sectors as a means to an end.
Gas decarbonisation is not an option, but a necessity, for all sectors to meet EU
decarbonisation objectives. The need for flexible power generation will increase with the phase-
out of coal and nuclear to cover production gaps being caused by growing intermittent
renewable electricity generation and variable demand patterns. Energy intensive industries such
as steel, cement, chemicals need molecules as a feedstock, as a source of high-temperature heat
and as a power source. Energy demand for heating is by nature highly seasonal. The energy
infrastructure must be sized to meet the most extreme weather peaks. This is the case for gas,
whereas for electricity a huge build out would be needed raising questions of cost and public
acceptance. Security of supply requires that energy can be stored across seasons. Transport of
goods and people by land, air and sea requires an energy dense energy carrier, such as gas, to
enable long-distance transport and efficient logistics value chains.
Gaseous energy is not a measure of last resort, but key to cost-effective decarbonisation. The
existing gas infrastructure can be used to transport and store increasing shares of renewable and
decarbonised gas. A cost-effective EU Strategy for Energy System Integration will look to
optimize the use of the existing gas infrastructure and limit the need for costly new electricity
infrastructure. Europe is a market leader in anaerobic digestors, methane reforming, pyrolysis,
carbon capture use and storage, LNG engines and turbines manufacturing. Europe must
capitalise on the existing momentum and maintain its industrial leadership in all these
technologies, which will revolutionise the way in which we produce energy and goods around
the world. Gaseous energy offers benefits beyond the energy system. Biomethane for instance,
helps reduce methane emissions from agriculture and it creates additional income for Europe’s
farming community. Carbon capture use and storage will be a prerequisite for climate neutrality.
It will enable the timely supply of large volumes of hydrogen, paving the way for the
development of a hydrogen economy and it will enable the decarbonisation of sectors where
fossil emissions cannot otherwise be cost-effectively reduced. The North Sea basin will be a key
area for the development of CCS and projects are beginning at this very moment.
The EU Strategy for Energy System Integration must be supported by a sound findings and
financing framework. Investments in gas development and a new generation of gas
technologies must be an integral part of the post-Covid economic recovery plan. Concentrating
our economic recovery efforts on climate technology sectors where Europe is leading, like
hydrogen, biomethane and processes such as CCUS, offers Europe the twin benefit of stimulating
economic recovery and jobs, as well as contributing to the energy transition. Indeed, these
sectors have a predominantly European-based value chain.
You will find our more detailed contribution attached. We would like to thank you for your
consideration and remain available to meet and discuss our contributions. We look forward to
continuing this important work to advance our shared objective for an energy transition.
Yours sincerely,
Best wishes
d’Arlon 80 | B-1040 Brussels
EU Transparency Register: 17909506129-41
Eurogas is part of GasNaturally
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