Green Week Brussels, June 6th 2013

Simon Blakey Special Envoy

Air quality and home heating: A gas industry perspective

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Members • 32 companies • 17 associations

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• Air quality has improved enormously thanks to home heating switching to natural gas in 40 years since 1970

• It will continue to improve in next 40 years thanks to higher energy efficiency from better heating appliances—driven by climate agenda more than local air quality issues

• Today we can make a realistic assessment of the potential, based on known technologies

Air quality in Europe: The past and future role of natural gas

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WHAT NATURAL GAS HAS DONE …

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Natural gas benefits Europe both north and south

Britain before natural gas

Greece before natural gas

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WHAT NATURAL GAS CAN DO …

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1 kWh natural gas 1.00 kWh heat

Gas heat pump

Condensing boiler

1 kWh natural gas 0.75 kWh heat

Standard boiler

1990

1980

2010 1 kWh natural gas 1.30 kWh heat

increase by 70%

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Home heating efficiency will improve: from existing technology as well as innovation

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• 90 percent of Dutch gas-heated homes have condensing boilers … although take- up was slow in 1980s

• Average household consumption has halved from 3,145 m3 per year in 1981 to 1,620 m3 per year in 2010 in the Netherlands

• Only 25 percent of German gas-heated homes have these boilers; only 35 percent in the UK … there is lots of potential

• Next it will be gas heat pumps … micro CHP … and fuel cells

The penetration rate of improving technologies is key to achieving efficiency

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time

CO

2 e

mis

sion

s

(

& a

ir p

ollu

tion

)

2010 2050

Power Generation Transport Residential/commercial Industry

New

nee

ds

Effi

cien

cy

Evo

luti

on

of

ener

gy

mix

-80% vs 1990

With energy efficiency you must run to stand still … … and run faster to move forward

+ _

EU sectoral energy use

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• >200 million households • 5.5 billion m2 of offices • 70 percent of energy is used for heating • Gas supplies 40 percent of final energy demand

2%13%

40%

8%

30%

7%

2010 Final energy demand by fuel Solids

Oil

Gas

Biogas

Other renewablesElectricity

Heat

Hydrogen

EU Residential/Commercial Sector

68%

14%

1%

11%

6%

2010 Final demand by end use

Heating

Hot Water

Ventilation and Cooling

Lighting and Elec. Appliances

Cooking

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• Renovation of buildings From 1 to 3% per year Energy savings from

15% to 40%-50%

• Behaviour Ave temperatures at

19°C - 20°C

• New equipment and fuel switching

Drivers of change

68%56%

40%

14%

13%

19%

11%

18%

19%

1%4%

6%

6% 10%16%

2010 2050 Baseline 2050 Eurogas Roadmap

Final demand by end use

Heating Hot Water

Lighting and Elec. Appliances Ventilation and Cooling

Cooking

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Three routes to improvement

More efficient equipment and hybrid installations Highly efficient heating technologies Switch to less polluting fuels

Equipment market shares in the residential sector

4%

17%

9%

8%

22%

4%2%

14%

8%

7%5%

2050Solids

Oil

Gas traditional boiler

Gas CHP

Gas heat pump

Gas condensing boiler

Biogas

Biomass

Thermal solar

Electric Direct heating

Electric Heat pump air/air

Electric Heat Pump air/water and Water/water

Heating network

Hydrogen (fuel cells)

3%

19%

38%

8%

7%

17%

8%

2010

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• Incentives to replace existing equipment by promoting

more efficient equipment, such as gas heat pumps, condensing boilers and hybrid solutions;

• Incentives to use less polluting fuels, such as gas, biogas and biomass;

• Investment in rollout of hybrid technologies (gas and renewables);

• More rational use of existing equipment in dwellings; • Stricter energy efficiency standards for electric

appliances; • Active awareness campaigns to influence people’s

behaviour • Research and development in new efficient technologies.

What needs to be done for this to happen?

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Contact details Av. de Cortenbergh 172 1000 Brussels BELGIUM Phone: +32 2 894 48 48 eurogas@eurogas.org www.eurogas.org