Key part of the puzzle: No energy transition without gas

The energy transition is not a revolutionary new term, it is something we have lived through for a very long time.

From the early days of coal-fired power plants to gas turbines to wind farms. And just like any transition in the world, it does not happen overnight. It evolves gradually, defined by technologies, market incentives, policy shifts, and consumer behaviour.

Perhaps the cycle we are experiencing today is the most radical one, with pressure mounting due to the drastic effects of climate change and the environmental disasters looming at every corner.

The urgency to act cannot be overstated. But we must not let these circumstances push us towards an unbalanced shift that will ultimately create new crises. Because radical solutions are not the answer to radical problems.

What we need is a responsible energy transition that leaves no one behind. We cannot exclude any energy source that can help lead us to a decarbonised future; and certainly not one that still powers about 25% of the world’s electricity.

The world needs gas

As the energy landscape and its geopolitical and environmental surroundings have changed drastically in recent years, so too has the perception of the role of natural gas as an energy source.

Gas is not just a back-up solution when the sun doesn’t shine, and the wind doesn’t blow. The world needs a tremendous amount of energy to power life for 8 billion people.

With new challenges on the horizon, like the AI revolution, that demand is only expected to increase.

Bloomberg estimates that by 2034, global energy consumption by data centres is expected to top 1,580 TWh, about as much as is used by all of India. This energy supply is required non-stop 24/7 and cannot afford intermittency, making natural gas, or nuclear, the go-to choices for immediate uninterrupted power.

Decarbonisation has more than one pathway

Gas is needed not only to meet growing energy demands, but also for the energy transition to materialise. When it comes to decarbonisation, replacing coal-fired power generation with gas-fired power plants is one of the fastest ways to reduce emissions in the power sector. Since 2010, coal-to- gas switching has saved around 500 million tonnes of CO2, an effect equivalent to putting an extra 200 million electric vehicles running on zero-carbon electricity on the road at the same time.

Gas and renewables go hand- in-hand

Today, gas is also a necessary element for sustainable renewable energy systems to run reliably. Even in developed economies that are shifting towards renewables, natural gas is still needed to provide a stable supply of power.

The hybridisation of renewable energy systems with gas turbines allows for a high share of renewables while maintaining high fossil fuel efficiency. This is particularly important because there is often a gap between power demand and the variable power supply from solar and wind. High- efficiency gas turbine power plants can fill this gap, ensuring a stable and reliable energy supply.

A sustainable future

But even with reduced emissions, natural gas is still a fossil fuel, so carbon capture, utilisation, and storage (CCUS) technologies hold great promise to mitigate its’ CO2 emissions. The International Energy Agency estimates that there are over 700 projects across the CCUS value chain for power and industrial plants worldwide.

And just as gas is still needed to provide uninterrupted power and compensate for the intermittency of renewables, hydrogen and green fuels will also play an important role in making gas turbines more sustainable and efficient. These solutions can, and should, go hand in hand for a decarbonised future that helps us meet critical climate targets.

Today, major gas turbine OEMs, including Siemens Energy, make turbines capable of operating with hydrogen as part of combined- cycle power plants. These turbines are fuel-flexible and can be operated not only with natural gas but also with hydrogen.

The silver lining

The energy transition is a complex puzzle, and gas is a crucial piece. It provides the flexibility and reliability needed to support the growth of renewables and drive decarbonisation efforts. As we look towards a sustainable future, it is clear that no energy transition will happen without gas, and it will continue to be an indispensable part of the energy puzzle.