Understanding Green Gas in The Energy Industry
In the gas industry, we often hear the phrase “green gas”, but what does it mean? Green gas does not actually refer to the color of the gas, but the methods in which it was created. The production methods for green gases are low-carbon and use renewable resources, and therefore contribute to “greener” and cleaner energy grids. This article explores the characteristics, types (e.g., hydrogen, biomethane), and benefits of green gases, as well as current market trends for the green gas industry.
Characteristics of Green Gas
The key characteristics that define a “green gas” are origin, composition, and environmental impact. The production methods used to create these gases are sourced from renewable energy sources, like wind, solar, and even agricultural waste and food scraps. Biomethane green gases utilize bacteria to digest organic waste and materials in anaerobic (or oxygen-free) environments. The process of anaerobic digestion is followed by the conditioning and enrichment to decrease the carbon and increase the methane in the biogas. The graphic below illustrates the production of biomethane green gas, including the inputs, outputs, and end-uses.
Biomethane green gas production cycle from input to end-use. (Source 1)
One of the main goals of the green gas industry is to significantly reduce greenhouse gas emissions, and by utilizing agricultural waste to create energy in the form biomethane, green gas helps to achieve that goal. Similarly, the production of hydrogen green gas is also sourced from renewable resources and can help decrease carbon emissions in the heating, power, and transportation industries.
Green hydrogen gas is produced by sourcing electricity from renewable sources like wind, nuclear, or solar power. This power is used to generate the process of electrolysis: the splitting of water into pure hydrogen and oxygen molecules. Electrolysis is extremely low carbon-intensity and is one of the safest ways to produce pure hydrogen. Interested in learning more about the specific hydrogen production methods? Read our in-depth article Hydrogen from Production to Usage. The graphic below displays the production of hydrogen, including electricity generation, distribution, and end-uses.
Lifecycle of hydrogen gas from energy generation to end-use (Source 1)
Another main goal of green gas is to provide a substitute for fossil fuels. Because of this, the composition of green gas must be similar enough to certain fossil fuels, provide the same function and meet the same energy demands. In the case of biomethane gas, the gas is composed primarily of methane (CH4), however it is produced through the anaerobic digestion or organic matter. In the case of hydrogen gas, the gas is composed of either pure hydrogen (H2), or a blended hydrogen-methane mix. Both of these green gases provide the same function and meet the energy requirements of fossil fueled applications like heating, power, and transportation.
Environmental Benefits of Green Gases
One of the most important environmental benefits of green gases is related to carbon emissions. As mentioned earlier, the production methods used to generate green gases emit significantly less carbon dioxide than traditional fossil fuels. The energy that is powered by green gases is therefore less polluting and “cleaner” than traditional forms of energy generation. This is a huge factor as industries across the world aim to decarbonize and meet sustainability goals (Source 4). A second environmental benefit of green gases is the versatility for use. Green gases are versatile enough to be used for heating, cooking, and transportation, making them a fine substitute for natural gas applications. Another environmental benefit of green gases are the sources for generation. The supply of resources that are required to produce green gases are plentiful and can be found in any part of the world (e.g., organic scraps, wind, solar). This not only lowered the demand for mining and drilling but also promotes the repurposing of various wastes and potential pollutants (Source 5).
What Does it Mean for the Gas Market?
In addition to the environmental impacts of green gas, there are also impacts to the overall gas market. Green gas opens up opportunities for new businesses and creates new jobs. Many concerns related to the green gas market impacting natural gas jobs have been raised in the US. But as energy grids transition from fossil fuels to more sustainable methods, workers will have opportunities to support green gas initiatives in the gas industry.
Green gases are also responsible for new funding and incentive programs from governments around the world, including the Green Gas Levy (GGL) in the UK and the hydrogen and gas decarbonization package in the EU. The UK’s GGL acts as funding source for the Green Gas Support Scheme (GGSS) by taxing fossil fuel gas suppliers and funding biomethane and green gas grid projects. The EU’s hydrogen and gas decarbonization package consists of Directive 2024/1788 and Regulation 2024/1789, which both promote the development of cost-effective and cross-border hydrogen infrastructure (Source 6). Both of these programs promote a competitive green gas market, which can ultimately lead to a global energy trade market that helps provide power to areas of the world that struggle to generate it themselves.
Overall, the gas market can expect to see a decrease in energy supply from natural gas, and a surge in the supply of green gases. The timing of the market change is still unknown, as researchers and policymakers help pave the way for the green gas market.
Conclusion:
In 2024, the global energy demand grew by about 18%, and about 15% of the world’s population remains energy insecure with little or no access to electricity (Source 7). The versatility and sustainability characteristics of green gases put them in a unique position to help address these global issues, without exacerbating the environmental impacts we see from other energy sources.
Sources:
Source 1. https://www.eesi.org/papers/view/fact-sheet-biogasconverting-waste-to-energy
Source 2. https://currentaffairs.adda247.com/issues-with-green-hydrogen/
Source 3. https://www.greengas.org.uk/green-gas
Source 7. https://www.mckinsey.com/industries/energy-and-materials/our-insights/global-energy-perspective