The transition to carbon-neutral gas
31st March 2020 | Commercial Energy
The provision of renewable electricity continues to expand to meet demand, with the big six, challenger and boutique suppliers now offering 100% renewable electricity as standard. The next step is to offer 100% green gas, however, provision at scale will take time. The climate can’t wait, so what is the solution?
Consumer demand has never been higher for green products. According to a survey conducted by Unilever in 2018, 33% of customers were motivated by green credentials in the products and services they bought, including in utilities. This number has grown since 2018, with a 2019 study by Futerra suggesting that 88% of people are now looking for brands to provide them with sustainable products and services. Companies are keen to tap into this expanding market potential, and nowhere is this more marked than in utilities.
Green tariffs, centred around renewable electricity, have become commonplace within the energy sector – either through direct PPAs or through REGOs. In 2019, renewable electricity provides more electricity to UK homes and businesses for the first time, surpassing all other forms of fossil fuel energy generation. Less than ten years ago, fossils represented four-fifths of the UK’s electricity generation. As renewable electricity becomes the norm – organisations are turning their focus to another component of their energy supply: gas.
It is possible to source green gas in the UK. It is produced through biodigesters, which turn available waste into gas for the grid. Whilst this is an attractive option long term, there are barriers to its widespread adoption. Costs per MWh are prohibitively high, and there are significant issues in regards to capacity. In 2017, renewable gases only represented around 7% of renewable gross inland energy consumption in the EU.
There is a vital need to act on climate change now. And there is an interim solution. To provide carbon-neutral gas through carbon offsetting. This is an internationally recognised way to reduce global carbon emissions, and a cost-effective way to tackle your gas emissions whilst the production of biogas scales.
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