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Global Renewable & Low-Carbon Gas Report

Author(s) : IGU

Type of monograph: Report

Summary

This is the first edition of the IGU Global Renewable and Low-Carbon Gas Report, which seeks to set a baseline and to promote interest among policymakers, industry stakeholders, and other relevant players in all forms of renewable and low-carbon gas. For this first edition of the report, the authors used a combination of data collected in the survey and project team’s own benchmarking work to assess the state of play in global renewable and low-carbon gases. The primary conclusions of the report are:
• Total global production of both biogas and biomethane is approx. 400 TWh, or approx. 1% of total global natural gas production. Over half of this production is concentrated in a few countries in Europe, with a further 25% in China.
• While sustainable biogas production potential could replace about 20% of the current global natural gas demand, according to the IEA, the current production pipeline is 20 times smaller.
• The production level for low-carbon hydrogen is also low at approx 0.5% of current hydrogen production, that is only approx 0.03% of global natural gas production.
• A stronger policy focus on increasing production of low-carbon hydrogen is a vital driver for future growth in hydrogen project pipeline.
• Green hydrogen is significantly more expensive than any other form of renewable gas, but as the costs of both renewable electricity and electrolysers decrease over time, costs are expected to fall. In the meantime, blue hydrogen provides the most cost-effective and commercially ready source of this clean fuel.
• There is much stronger interest among policy makers and the broader commentariat in low-carbon hydrogen rather than biomethane. However, the the current levels of
production (much more biogas) and the relative costs of biomethane and hydrogen suggest that it is important to raise biomethane up the near-term policy agenda.
• Given the scale of the decarbonisation challenge, and the need for as many workable solutions as possible to ease the pains of a global energy transition, all forms of renewable gas should be pursued as quickly as possible. This will require strong and clear policy support from governments globally, robust entrepreneurial initiative from the incumbent industry players and disruptors alike.
• Access to capital is of vital importance if these projects are to get to a viable global market. From non-commercial R&D seed funding all the way through to commercial debt finance and liquidity provision.

Details

  • Original title: Global Renewable & Low-Carbon Gas Report
  • Record ID : 30029042
  • Languages: English
  • Subject: Figures, economy, Environment
  • Publication: Igu (international gas union) - United kingdom
  • Publication date: 2021/11

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