CHINA: Carbon Neutral by 2060

the business opportunities for EU energy solutions providers

WORKSHOP 5: The Future of Gas


Session Four: Renewable Gases (Downloads: Summary, Presentations)

  • Joachim von Scheele – Global Director Commercialisation, LINDE
  • Ning-ke Peng – Biomethane Lead – SNAM CHINA
  • Jan Braun – Senior Expert Hydrogen Economy (MENA Region) at Fraunhofer
  • Nicola Rega – Energy Director, CEFIC (European Chemical Industry Council)
  • Moderator: Erik Rakhou, Associate Director, Boston Consulting Group

Video of Session 4

(English subtitled)

(English subtitled)

Discussion highlights

Russia’s invasion of Ukraine has led to a complete restructuring of gas markets, making LNG an immediate solution. Europe and China are sticking to their decarbonisation goals despite challenges. European policy targets the increase of renewable gas and hydrogen imports by 2030, as well as power-to-gas.

If the current hydrogen targets are met, Europe could be the leader for hydrogen in terms of percentage of the mix replacement by 2030. In China, around 5-6% of the energy mix will be replaced by 2030.

The certification of hydrogen and other renewable gases is not yet complete, and a uniform system is lacking. Transporting hydrogen and other renewable gases is a challenge, and the question of whether it is more beneficial to transport the end product is controversial. Transport should be included in the sustainability rating of the gases.

Current situation in Europe

  • By 2030, 50% of the hydrogen consumed by the industry is to be renewable. However, the question of how this will be achieved is still unclear.
  • About 10% of Europe’s natural gas consumption is used by the chemical industry, of which 56% is used for energy purposes, and the remaining 44% as a feedstock and for ammonia production.

Renewable gases in China

  • The target for annual biomethane production in China is 10 bcm by 2025 and 20 bcm by 2030 (NDRC, 2019).
  • The hydrogen plan of China’s 14th Five-Year Plan contains a rather moderate target for hydrogen production of 100,000 to 200,000 tonnes by 2025.