3.1 Strategy
The transmission of natural gas requires energy, energy we use to keep the gas grid at pressure, to blend natural gas with nitrogen, and to compensate for frictional losses during transmission. Gasunie uses natural gas and electricity for this. Burning this natural gas and generating this electricity produces CO2 and NOx emissions.
Gasunie Transition Pathway Calculator
To make our societal contribution to carbon-neutralising the Netherlands even more transparent, Gasunie posted the Gasunie Transition Pathway Calculator. In our base scenario, all new-build projects between now and 2030 will be operational by the delivery year we have set. Using this calculator, everyone can calculate the situation in more favourable and less favourable scenarios. Our Transition Pathway Calculator considers the effects of our investments between 2020 and 2030 and is updated annually.
Furthermore, methane (natural gas) is emitted to the air during management and maintenance work on our infrastructure. Methane (CH4) is a potent greenhouse gas. We have to deal with so-called ‘fugitive emissions’ (natural gas losses due to leaking connections in Gasunie’s gas transmission network) and controlled emissions (gas vented from pneumatic regulators, depressurising compressors, gas vented during work).
We want to help society switch to a carbon neutral energy system, and we set the right example ourselves as well, by reducing both our energy consumption and methane emissions where possible. Only then will we be able to retain our social licence to operate. As a state-owned company, we have to be an example to follow.
3.2 Policy
Gasunie pursues an integrated policy for the reduction of CO2-related emissions. Our CO2e emission reduction policy applies to all Gasunie-operated energy-consuming assets in the Netherlands and Germany. These can also include assets owned by associate companies or third parties but operated by Gasunie. The policy also applies to future assets that fall into this definition.
Through to 2023, our policy revolved around emission reduction targets for 2030, with 2020 as the base year. As of 2024, the target in our policy has shifted to reaching net-zero emissions by the year 2045. Net-zero means cutting the volume of emissions to below 10% of the 2020 level, while offsetting remaining emissions through responsible carbon offsetting measures. Where possible, we do this based on criteria that are similar to those of the Science Based Targets initiative (SBTi). In evaluating our road to zero, we are going by emission data from 2023 as a well developed starting point. Where necessary, we recalculate cost and emission calculations based on this point of reference.
Distribution of Gasunie’s CO₂-related emissions (market-based, reference year 2023) across the various scopes
Scope 1
Scope 1-emissions are all emissions that are a direct result of our own activities. Gasunie’s main focus so far has been to drive back these kinds of emissions. The dominant emissions in this category are methane emissions, which made up 34% of Gasunie’s scope 1 emissions in 2023. The other 66% of Gasunie’s scope 1 emissions consist of emissions from heating up gas at gas receiving stations (GRSs), compressor drive systems, and heating buildings. The new EU Methane Regulation that took effect earlier in 2024 requires us to further reduce our methane emissions.
Scope 2
Scope 2-emissions are indirect emissions from the energy we procure. Gasunie’s scope 2 emissions, consisting partly of emissions from heat procured for EemsEnergyTerminal, are relatively minor thanks to the purchase of Guarantees of Origin (GOs). There are no greening options for the heat procured. Over the coming years, we will gradually replace the GOs with a more sustainable solution: Power Purchase Agreements (PPA).
Scope 3
Scope 3-emissions are all indirect greenhouse gas emissions related to upstream and downstream activities in our value chain. The extent of this category of emissions is the hardest to ascertain. We have mapped all our scope 3 emissions for the year 2023, which was a first for us. Gasunie’s scope 3 footprint is largely made up of purchased goods and services and capital goods. Emissions from these two categories make up 84% of the total corporate scope 3 footprint.
3.3 Action plans
Scope 1 reductions
Scope 1 emissions are all emissions that are a direct result of our own activities, i.e. the emissions that come out of our own chimney. They include the emissions from our compressors, our own gas consumption to heat buildings, the gas used by the boilers at our gas receiving stations, etc. This category also includes our CO2 equivalents in methane emissions and hydrofluorocarbons (HFCs, for cooling processes).
This is how we reduce our scope 1 emissions:
Zero-emission regulating equipment
Gas-emitting regulators are no longer used in newly built or refurbished installations. We will be replacing pneumatically driven components such as pressure regulators and flow regulators. By the end of 2029 we will have replaced all regulating equipment with emissions with zero-emission variants.
LDAR programme
Through our leak detection and repair (LDAR) programme, we detect leaks in connections and appendages (valves, flanges, etc.) at compressor stations, gas receiving stations, metering and regulating stations and valve locations. For this we apply the NEN-EN 15446 standard, which is based on the measuring methodology developed by the US Environmental Protection Agency (EPA).
BERK task force
Over the period from early 2023 to mid-2025, we will be scaling up our LDAR programme by deploying a temporary task force. The BERK task force (‘BERK’ is the Dutch acronym for controlled emission reduction pathway) aims to substantially drive back the number of methane leaks. The basic aim is not to emit any methane, unless there is no other way due to technical or safety reasons. The BERK task force will also get Gasunie ready for the European Commission’s Methane Regulation that came into force in early August 2024. This new EU legislation sets strict requirements for the frequency of leak detection and how quickly leaks are to be repaired.
Nitrogen displacement
One way to avoid having to vent natural gas from a pipeline is to use nitrogen to displace the gas and by this means transfer it to a different section of the pipeline.
Mobile recompression
We use a mobile recompression unit to recompress as much of the gas as possible that would otherwise have had to be vented. This gas is then transferred to another pipeline. In 2023, recompression returned around 0.8 million m3 of gas to the network (2022: 0.9 million m3). With this we avoided the emission of 13 kilotonnes of CO2e in 2023.
Flaring
If recompression is not an option, flaring offers a way to reduce the environmental impact of the methane in the natural gas by burning it off. In 2023, 342,791 m³ of natural gas was flared (2022: 340,522 m³). Flaring instead of venting yielded environmental savings of 5 kilotonnes of CO2e in 2023 (2022: 5 kilotonnes of CO2e).
Mini recompression units
The pressure down to which recompression units can reduce is relatively high. We are looking into whether mini recompression units would be able to reduce to a lower pressure so that there will be less natural gas left over that we have to flare and vent, which would mean a reduction in methane and other emissions.
Temporary decommissioning of compressor stations
As production from the Groningen gas field is phased out, we are decommissioning a number of our compressor stations on a temporary basis so that these can be used later for the energy transition.
Electric-drive compression
In all the operational choices we have to make, emission reduction is a compulsory selection criterion. Where technically and financially possible, we favour electric-drive compression over gas-powered compression.
Limited energy needs
At 900 gas receiving stations we are gradually reducing the pressure of gas at inlet points, reducing the temperature of the gas at outlet points, and using a variable boiler water temperature based on the then current heat demand. This has reduced total gas consumption at our Dutch gas receiving stations. We are also considering replacing the current central heating boilers at gas receiving stations with a hybrid heat pump system. We would only need to switch over to the system’s gas-fired boilers when gas throughput is high, like in winter for example. In the near future, we need to see if this concept is feasible at gas receiving stations, for example, because we depend on larger electricity connections.
Greening our own gas consumption
In 2023, we greened more than 1.9 million m3 of our own gas consumption in the Netherlands with GOs5 , and in Germany we covered 1% of our total own gas consumption with green gas. We requested bids in 2023 to obtain additional volumes for 2023 and 2024; however, these volumes were not yet available on the market on reasonable terms.
Quality measurement tools
We are currently conducting a study to look into ways to reduce methane emissions from our quality measurement tools.
5 Green gas is not covered by the system of guarantees of origin because there is no internationally recognised certification of green gas. At present, green gas certificates are accepted as ways to reduce scope 1 and scope 3 emissions, provided that a party is connected directly to the green gas supply and able to prove that.
The BERK task force
Luuk Pastoor is the programme manager for BERK, the Gasunie programme that sees us work hard on reducing our methane emissions. BERK is a task force, meaning that it is a temporary group of people that we have assembled to step up our efforts to cut our methane leaks in a controlled manner. The BERK task force is made up of a core team of specialists. And they work together with various departments, experts, and stakeholders within and outside Gasunie. Collaboration is a priority for the task force.
‘Within BERK, we work to reduce methane emissions caused by leaks,’ Luuk explains. In order to track down those leaks, Gasunie measures all connection points, including couplings, flanges, valves, etc. every four years in full. We do some of this measuring ourselves as Gasunie and also have third parties do part of it. The task force subsequently decides which leaks need to be repaired first. Together with operators and cluster project managers, we explore ways to streamline this in part through maintenance work or project-based work, so as to do it as efficiently as possible. The regional operators doing the actual work subsequently look into how best to incorporate this into their ongoing work. They are best placed to do that. It all adds up to super-efficient collaboration.’
The BERK task force is expected to stay operational until mid-2025. Luuk says, ‘After that, the measuring activities need to have been reincorporated into the regular organisation in a controlled manner or run as a separate maintenance project. This is why our focus is not only on 2024/2025, but also further ahead to the future. The idea is for us to be able to have anything that we can already see coming incorporated into regular projects now.
BERK draws on lessons learned previously in other projects. ‘That’s right,’ says Luuk. ‘We use the Gasunie Lessons Learned register. It was also the source of inspiration for BERK’s risk management. And we also draw opportunities from that! At BERK, we not only have a risk register but also a special opportunities register.’
Scope 2 reductions
Scope 2 emissions are indirect emissions from the energy we procure. We procure electricity for our electric compressors and for the production of nitrogen we use to convert imported high-calorific gas into Groningen quality low-calorific gas (‘pseudo G-gas’). Scope 2 also includes the electricity used in our offices and the buildings housing our installations. Besides electricity we also procure heat, mainly for the regasification of LNG. Quality conversion from imported high-calorific gas to pseudo G-gas takes place using self-produced nitrogen (Scope 2) and nitrogen procured from third parties (Scope 3). For calculations, we use our market-based scope 2 emissions, i.e. any scope 2 emissions that remain after decarbonisation. In 2023, we decarbonised all the electricity we procured (277 kilotonnes of CO2e) using GOs. As of 2024, we procure part of the electricity we need from green producers directly, meaning that we need fewer GOs.
This is how we reduce our scope 2 emissions:
Smart design and smart management
In designing our transmission systems, we look for ways to reduce the energy needed to operate them. On a daily basis, we try to guide our gas flows through the network in a way that keeps the transmission route as short as possible and minimises the required compression.
Decarbonising our electricity consumption
Our aim is to stop using energy produced in a way that involves emissions. We do that by eliminating electricity generation from coal and gas from Gasunie’s portfolio and replacing it with clean sources of energy. Our electricity consumption in 2023 was completely decarbonised. In 2023, we purchased GOs from European wind farms for our Dutch activities. In Germany, 100% of our electricity needs are covered by electricity from European hydroelectric power stations.
Power Purchase Agreements (PPAs)
Under a five-year contract we signed with Greenchoice, a quarter of all the electricity we consume (250 GWh) will come directly from Dutch wind farms from 2024. Over the coming years, we intend to enter into more such PPAs. Procuring green energy directly at the source creates a direct link between generation and our consumption, which is another step up on decarbonising electricity procurement through GOs in terms of quality. The idea is for the PPAs to push up our 24/7 Carbon-Free Energy (CFE) score. The CFE score measures the degree to which each hour of electricity consumption by Gasunie is matched with procurement of renewable energy from local sources. Gasunie wants to take its CFE up to 25% in 2025 and to 60% by 2030.
Transport and mobility
From 2021, Gasunie employees who have a company-leased car at their disposal can only order electric cars when their lease expires.
Limited energy needs
Boilers at the head office: at the initiative of the Gasunie Green Teams employee platform, all boilers were removed from the pantries, work cabinets, and accessible toilets and replaced (where there was no other option) with energy-efficient alternatives in a project called ‘Boil Off’ in 2023. The old boilers kept the water inside warm at a constant temperature of 80°C, while they were hardly ever used.
Our head office’s annual carbon emissions
Gasunie is committed to emitting as little CO2 as possible, which includes emissions from the generation of the electricity we procure.
In order to calculate how much CO2 is emitted in the process of generating the electricity we procure, we, like most companies, use average emission factors. These provide an overall view of emissions in the Netherlands.
But we want to do more. We want to procure as much of the electricity we need at times with lots of sunshine or wind, because that is when there is a lot of renewable energy in the Dutch electricity production mix.
The first step in this direction is to check our electricity consumption every fifteen minutes and link the resulting readings to real-time data on the carbon intensity of the Dutch electricity production mix.
Knowing exactly when the electricity we need has the smallest carbon footprint sets us up for the next step: dynamic regulation of our power consumption. In other words, it allows us to shift our consumption from times of high carbon intensity to times of lower carbon intensity wherever possible.
The first step we have meanwhile taken over the past few months is to map the carbon footprint of our head office in Groningen by taking a snapshot of our footprint every fifteen minutes. We obtained the electricity production mix data from the National Energy Dashboard (NED.nl), a public online database that Gasunie has set up in partnership with TenneT.
It has already given us a far more realistic picture of our head office’s carbon footprint, and we are now looking into which electricity needs at the head office are suited for dynamic regulation.
We are also considering mapping the carbon footprint of other Gasunie sites in this way. Gasunie has a wide variety of sites, each with different characteristics. Some sites are, therefore, better suited for dynamic consumption regulation than others.
The obvious place to start would be the larger sites, such as Deventer, Ommen, Ravenstein, and Wieringermeer. We also believe that dynamic consumption regulation will deliver major carbon emission reduction gains within our network assets, such as our gas receiving stations.
Scope 3 reductions
Scope 3 is the third and broadest reporting category from the Greenhouse Gas Protocol (GHG) and generally makes up the largest part of a company’s carbon footprint. This scope includes emissions across Gasunie’s value chain, i.e. all indirect greenhouse gas emissions related to upstream and downstream activities in the value chain.
Gasunie has thus far reported only a small part of its scope 3 emissions in its public report: emissions from business travel and commuting6 and from the production of the nitrogen we purchase. In 2024, we identified, for the first time, all of our scope 3 emissions across all categories as per the GHG protocol, using 2023 as the base year from which we start calculating reductions. In doing so, we aimed to collect as much high-quality, primary activity data and emission factor data from suppliers as possible.
6 The Gasunie Green Team (a group of Gasunie employees that initiates sustainability initiatives) is looking into the possibility of offering free public transport passes for the commute to and from work, as well as a tax credit for the purchase of a commuter bicycle.
The main components of our scope 3 footprint are:
- Emissions from purchased goods and services. These are made up mainly of pipeline maintenance activities to guarantee the safety and reliability of our network. Emissions from the production of the nitrogen we procure also constitute a significant part of this category.
- Emissions from capital goods. These are made up mainly of infrastructure development activities (procurement of steel pipes), and then especially projects with hydrogen and CO2 pipelines.
- Upstream emissions from energy consumed. Gasunie consumes a great deal of energy to keep the pressure in the high-pressure network at a constant level and this energy needs to be extracted in the beginning of the value chain, causing emissions there.
For our scope 3 emission calculation for 2023, we were able to obtain primary data that covers 41% of our scope 3 emissions. Wherever primary data was not available or not available in time, we used secondary data such as industry averages. The aim in the long term is to improve data quality and reduce data uncertainty, so as to ultimately be able to track our performance as effectively as possible.
After taking stock of our scope 3 emissions, we have put together a roadmap in 2024 with eleven measures for scope 3 emission reduction7 that we intend to implement along with details of the savings, costs, and implementation timeline of these measures. We have also set a scope 3 goal for 2030 and 2035, with 2023 as the base year, which can help us accelerate and steer our reduction plans. Overall, we believe we can reduce our scope 3 emissions by over 200,000 tonnes of CO2e8 by implementing the following set of measures.9
7 These goals were formulated using SBTI’s Target Setting Tool.
8 This figure was calculated based on the 2023 scope 3 footprint. If growth leads to scope 3 emissions increasing, this figure will have to grow accordingly.
9 The percentages are an indication only: they may change with time as new insights emerge.
This is how we intend to reduce our scope 3 emissions:
| Measure | Share of targeted scope 3 emission reduction |
|---|---|
| Creating zero-emission building sites by using zero-carbon or low-carbon construction equipment. The new engineering and works procurement strategy (see box) specifically seeks to partner with contractors and engineering firms in sustainability endeavours. Together with our partners, we want to adopt clean methods in building infrastructure for renewable energy. | approx. 35% |
| Switching to steel pipelines made using DRI technology that reduces carbon emissions caused by the extraction of iron from iron ore. Switching to steel produced using hydrogen-based DRI technology instead of natural gas-based DRI technology. | approx. 20% |
| Procuring goods with greater fuel efficiency, such as machine components with less frictional resistance. | approx. 15% |
| GTS uses nitrogen to convert high-calorific gas into low-calorific gas (called pseudo Groningen gas, or ‘pseudo G-gas’ for short), which is suitable for use by small-scale gas consumers in the Netherlands. Where possible, we get our nitrogen suppliers to decarbonise the energy they use to produce nitrogen by purchasing Guarantees of Origin (GOs). In 2023, Gasunie purchased GOs for 60% of our nitrogen supplies, and we plan to take this up to 100% green nitrogen procurement in 2024. | approx. 15% |
| Switching to pipelines made of scrap steel produced in electric arc furnaces. We are currently expecting a pilot delivery of the first batch of this circular steel from Mannesmann Line Pipe. Using recycled metal cuts emissions by as much as 80%. The first pilot will let us test feasibility and scale-up options, get a good understanding of the price difference between various supply options, and obtain verifiable data on the degree of circularity of this material. We are also negotiating with other suppliers for similar pilots. | approx. 7% |
| Replacing gas-powered compressors with electric compressors at Gasunie Deutschland (GUD). This avoids emissions from natural gas extraction. | approx. 5% |
| Installing heat pumps at gas receiving stations. This avoids emissions from natural gas extraction. | approx. 1% |
| Decarbonising power consumed by the IT systems running the trading platforms in which Gasunie holds a stake. | less than 1% |
| Reducing emissions from pipelines at GUD’s associate companies where GUD does not have operational control. | less than 1% |
| Reducing emissions at Gate terminal. Since Gasunie holds a 50% stake in Gate, its emissions fall into Gasunie’s scope 3 emissions instead of its scope 1 and 2 emissions. | less than 1% |
In our tendering process, we are going to make scope 3 emission reductions by suppliers and their deliverables/services/works a key factor in our assessment of tenders. Gasunie is working on guidelines on suppliers’ involvement in procurement. We have selected thirty strategic suppliers we want to team up with to tackle our emission hotspots. These parties supply materials (pipelines, valves, flanges, and static drivers) and operate in the contracting or engineering domain. In addition, several IT service providers and nitrogen-producing companies have also joined the programme. Gasunie’s collaboration with its suppliers is intended to result in:
- gaining a better understanding of the options for making the value chain more sustainable;
- identifying decarbonisation and sustainability projects, including the associated conditions and needs;
- having access to better data to calculate greenhouse gas emissions in the value chain, as well as reductions over time.
Gasunie and the Clean and Zero-Emission Construction covenant
With a gas grid stretching out over 17,000 kilometres and an energy transition investment agenda of many billions of euros, Gasunie is set to commission a large number of infrastructure construction projects over the coming years. In the fall of 2023, we signed the Clean and Zero-Emission Construction covenant. This programme sees 45 parties working together on one single approach to cleaner construction, maintenance, and demolition projects using a roadmap. The roadmap sets out step by step how and at what rate construction equipment will be replaced with less polluting versions over the coming years, so as to ultimately switch to clean or zero-emission versions. Lighter equipment will sooner be available in zero-emission versions than heavier or specialist equipment. Various government ministries, provincial authorities, local authorities, water boards, and network and industry associations in the construction domain have signed the covenant.
National Energy Dashboard
Together with TenneT, Gasunie is developing strategic data services for the energy transition and system integration. Initiatives such as EnergieOpwek (energy generation), the CO2 monitor, and the Energieweerbericht (energy weather forecast) provide insight into expected generation and carbon emissions across our energy system. In March this year, all of the joint Gasunie-TenneT initiatives were brought together under the overarching National Energy Dashboard. This dashboard gives households and companies free access to valuable energy data. The core message of the National Energy Dashboard is Smarter together with data.
3.4 Resources
To cut emissions across all three scopes, we have developed work packages. Those packages that will deliver the greatest emission reduction at the lowest cost will be carried out first, which we assess based on an internal carbon price of a maximum of € 200 per tonne10 , i.e. the amount we are currently willing to spend to avoid a tonne of carbon emissions.
For scope 1, we have put together packages of measures that are comparable, and we assess the CO2e efficiency of each package as a whole. Conditions that are adequate for the whole package may not be adequate for individual measures within those packages. If a total package does not meet the requirements under our policy, we will check which individual measures do meet the criteria.
We work based on efficiency, including risk efficiency, as laid down in our risk matrix. Our risk matrix assigns a financial value to the impact of emissions, and we monitor that value on a periodic basis. We are constantly gauging whether there is a way to further tighten this goal while staying within the boundaries set by our risk-based asset management, such as by intensively looking for innovative technologies and working methods.
We put a lot of time into improving the completeness, accuracy, timeliness, and traceability of our reported emission volumes. In 2024, we have a programme running that is called Emissies in Kaart, which translates as ‘Emissions mapped out’. This programme is all about linking emission registration, reporting, and management software to our procurement software systems to get a constant and comprehensive view of our emissions across all scopes. This allows us to add further rigour to our annual plans wherever we can.
10 The Netbeheer Nederland trade association is currently looking into what would be fair internal carbon pricing. Until their findings are revealed, they go by a price of € 150/tonne.
3.5 Risks and opportunities
Based on the double materiality assessment, having and reducing carbon emissions from our own operations leads to the following risks and opportunities for us:
Inside-out impact/risk (impact materiality)
Negative
Gasunie’s operations produce greenhouse gas emissions and nitrogen deposition, which contributes to climate change, human rights issues, and nature and biodiversity loss.
Positive
The financial benefit that comes with reducing methane emissions, i.e. the financial value of the gas is no longer lost. The EU uses this positive to justify stringent requirements: methane emission reduction pays for itself.
Outside-in impact/risk (financial materiality)
Negative
The risk of Gasunie being unable to successfully carry out projects due to inadequate working methods, delayed IT system availability, a lack of experience or expertise on the project team, or an erroneous project management approach, which can cause project delays, budget overruns, and lower-quality results.
Negative
Damage to reputation.
3.6 Measurable goals
Gasunie has currently set itself the following measurable goals. These goals may be adjusted upward or downward with time.
Total emissions
By 2045, Gasunie aims to have reached net-zero emissions across all three scopes. This means that, on balance, i.e. after decarbonisation through GOs or carbon removals, we no longer contribute to global warming. By that year, our absolute emissions (kilotonnes of CO2e) must have been reduced by 90% compared with the respective base years of 2020 (scope 1 and 2) and 2023 (scope 3).
To paraphrase SBTi’s definition, net zero describes a state in which the greenhouse gas emissions in the value chain are in balance with the emissions that are removed from the atmosphere by reducing emissions as much as possible and subsequently using carbon offsetting resources to remove the remaining emissions.
Methane emissions
Our methane emissions (CH4) have to be below 70 kilotonnes of CO2e by 203011, which boils down to a 49% reduction compared to the base year of 2020. Of this 70 kilotonne target, Gasunie’s Dutch assets have to deliver 50 kilotonnes and Gasunie’s German assets 20 kilotonnes. This target is not subject to how our transmission volumes develop. Our methane emissions make up a significant part of our scope 1 emissions.
11 Since methane is a more harmful greenhouse gas than initially thought, we upped methane’s global warming potential in 2022, from 25 to the new AR5 IPPC standard of 28, i.e. 1 tonne of methane emissions means 28 tonnes of CO2 emitted into the atmosphere. Gasunie follows the Dutch government’s lead in this respect. If we are to stick to the target figure for 2030, at a GWP of 28 we will have to reduce more methane in the coming years than would have been the case with a GWP of 25.
Scope 1 and market-based scope 2 emissions
In a year when we transport large volumes of natural gas, we produce more emissions than in a year when we transport less natural gas. With this simple fact in mind, we have set a relative goal for the combination of our scope 1 and market-based scope 2 emissions, based on GTS’ and GUD’s combined transmission volumes equalling those of the base year of 2020 (1,085 TWh).
The formula for this is as follows:
CO2e [kilotonnes] = 70 [kilotones CO2e] + (0,137 × transmission volume [TWh])
In 2020, we emitted a total of 330 kilotonnes of CO2e across scopes 1 and 2 (market-based). By 2030, this figure must not exceed 219 kilotonnes, provided that volumes remain unchanged, which means a 34% drop.
Scope 3 emissions
The biggest part of Gasunie’s scope 3 emissions is caused by the development of new infrastructure to enable the energy transition. Given that we will be running more and more energy transition projects, we will also procure more and more goods and services, causing our scope 3 emissions to rise. With this in mind, Gasunie has adopted a carbon intensity reduction target that covers 77% of all our scope 3 emissions.
The following categories come under Gasunie’s scope 3 goal: emissions from the production and transport of the steel, nitrogen, fuels, and electricity we purchase, and emissions from procured construction services and investments.
| Emissions in target range | % of scope 3 |
|---|---|
| Emissions caused by the production of purchased steel materials (associated with the production of steel pipes, valves, flanges, etc.) | 29% |
| Emissions caused by procured construction services (occurring at Gasunie’s construction sites) | 28% |
| Emissions caused by the production of procured nitrogen | 8% |
| All emissions caused by the production and transport of purchased fuel and energy, i.e. the upstream component of reported scope 1 and 2 emissions, except for emissions associated with EemsEnergyTerminal* | 11% |
| Emissions associated with Gasunie’s investments | 1% |
| Total | 77% |
Gasunie has committed to reducing scope 3 emissions by 51.6% in kilogrammes of CO2e per euro of procurement spending by 2030, as well as to a 66.3% reduction by 2035 compared to the base year of 2023. This target is an economic intensity target in terms of kilogrammes of CO2e per euro spent, creating room for spending to grow while minimising the impact on the climate.
The ambition level is aligned with projects that limit the global warming rate to below 2°C.12 The time frame proposed for this target is 2023-2030, in line with the SBTi criteria, with an additional target for 2035 for a future net-zero target.
12 This is known as the WB2D (well-below 2°C) pathway.
Our end users’ emissions
Although Gasunie is committed to cutting its overall carbon footprint, it is important to draw attention to the limitations that are inherent to addressing emissions caused by end users’ burning of natural gas (scope 3, category 11).
Being the operator of a transmission network, Gasunie is in the business of transporting natural gas, not burning natural gas. Natural gas is burnt by the end users to whom Gasunie transports and distributes it. Emissions from end users’ burning of natural gas occur beyond Gasunie’s direct scope of influence and are, therefore, excluded from the target.
Not including these natural gas combustion emissions in the target enables Gasunie to set ambitious but attainable targets and focus on areas where we can exert the most influence and achieve significant greenhouse gas emission reduction.
However, we do share responsibility for the climate impact caused by the use of natural gas by our customers and report regularly on these emissions to Dutch authorities. We have set the emissions produced by end users as they burn the natural gas we transported at 197 megatonnes of CO2e for 2023.
SBTi requires companies to include at least two thirds of their total scope 3 emissions in their greenhouse gas reduction targets for the short term. Gasunie proposes limiting the target for scope 3 emissions in the short term to sources that produced 77% of the scope 3 emissions in 2023. We cannot yet have SBTi validate the target proposed by Gasunie because Gasunie generates more than 50% of its revenue from fossil fuels.13
13 Currently, SBTi does not validate the targets of companies that generate more than 50% of their revenue from fossil fuels. This will change as soon as SBTi releases its latest oil and gas sector guidance.
3.7 Achievement of our goals
Since our scope 3 goal was formulated recently, there is no progress to report on yet. We can, however, report on the progress we have made on the overall goal for our scope 1 and 2 emissions. We want to reduce these by 34% by 2030, compared to 2020, assuming unchanged transmission volumes at both Gasunie Nederland and Gasunie Deutschland. Given that transmission volumes affect the extent of the emissions, we use the following formula: CO2eq [kilotonnes] = 70 [kilotonnes CO2eq] + (0.137 × transmission volume [TWh]).
In 2020, Gasunie Nederland and Gasunie Deutschland transported 1,085 TWh of natural gas between them. Assuming that these transmission volumes do not change, this means emissions cannot exceed 219 kilotonnes of CO2e at corporate level in 2030. The share of methane emissions must not exceed 70 kilotonnes of CO2e (regardless of the transmission volumes), with 50 kilotonnes of CO2e emitted in the Netherlands and 20 kilotonnes of CO2e in Germany, compared to 2020.
When this target was set, the global warming potential (GWP14) of one kilotonne of methane was assumed to be 25 times higher than that of a kilotonne of CO2e. In 2022, we upped the GWP to 28 based on new scientific insights, but we did not adjust our formula accordingly, meaning that our reduction target became more ambitious. 2022 was also the year that EemsEnergyTerminal was put into operation. Due to the large amount of energy needed to power this LNG terminal, we are no longer on track to hitting our 2030 reduction target for scopes 1 and 2.
In June 2024, we announced that we, for the sake of security of supply, are considering extending operation of EemsEnergyTerminal beyond 2027. This would mean an increase in our scope 1 and 2 emissions, putting the 2030 emissions target out of reach, unless we can also compile a significant emission reduction package for the restarted EemsEnergyTerminal. We are currently considering how to proceed in this situation and exploring emission reduction options that would be feasible if we were to keep running the LNG terminal after 2027.
14 In order to be able to add up the impact of different greenhouse gas emissions (GHGs), emissions are converted to CO2e. GHG emissions are not only methane emissions but also CO2 emissions caused by the burning of fossil fuels and, to a minor degree, also refrigerants, SF6, and diesel. The conversion is based on the global warming potential figure over a 100-year time frame (GWP100). The GWP100 value (factor) is in line with the value set by the Dutch government. The current factor for methane is 28. The GWP100 factor used in cost-benefit analyses follows the most recent insights (IPCC). This factor currently stands at 29.8 for methane.
Our methane emissions in 2023: on track to meet our reduction target in 2030
Our total CO₂ emissions in 2023: not on track to meet our reduction target in 2030
The increase is mainly due to the use of EemsEnergyTerminal. In the first half of 2023, the electricity required for the processes on the FSRUs was supplied by onboard generators powered by engines that run on LNG. These engines produce methane emissions. In the second half of the year, the FSRUs at Eemshaven no longer used their own generators but ran on onshore power. EemsEnergyTerminal also uses a lot of heat to regasify the LNG supplied. There are no greening options for the heat procured.
Our emissions in 2023 by scope
| in kilotonnes of CO2e | 2023 | 2022 | 2020 (base year) | % change compared to base year |
|---|---|---|---|---|
| Scope 1 emissions | ||||
| Gas consumption in installations | 229.3 | 241.3 | 169.3 | |
| Methane | 122.1 | 135.0 | 154.3 | |
| Leased cars and company cars | 2.3 | 2.5 | 1.8 | |
| Gas consumption in buildings | 2.1 | 1.1 | 2.5 | |
| Refrigerants | 0.7 | 0.6 | 1.5 | |
| Emergency generators | 0.0 | 0.4 | - | |
| Total scope 1 emissions | 356.6 | 380.9 | 329.4 | 8% |
| Percentage of scope 1 emissions from regulated emissions trading systems (%) | 76% | 77% | ||
| Scope 2 emissions | ||||
| Electricity consumption in installations | 274.9 | 336.1 | 394.0 | |
| Heat consumption in installations | 133.6 | 8.8 | - | |
| Electricity consumption in buildings | 2.3 | 2.5 | 3.5 | |
| Electricity consumption by company-leased vehicles | - | - | - | |
| Total scope 2 emissions (location-based) | 410.8 | 347.4 | 397.5 | 3% |
| Decarbonising through GOs | ||||
| Share of green power used in installations | 274.9 | 336.1 | 394.0 | |
| Share of green power used in buildings | 2.3 | 2.5 | 3.5 | |
| Total decarbonisation through GOs | 277.2 | 338.6 | 397.5 | |
| Total scope 2 emissions (market-based) | 133.6 | 8.8 | - | - |
| Total scope 1 + 2 emissions (location-based) | 767.4 | 728.3 | 726.9 | 6% |
| Total scope 1 + 2 emissions (market-based) | 490.2 | 389.7 | 329.4 | 49% |
| in kilotonnes of CO2e | 2023 |
|---|---|
| Scope 3 emissions | |
| (1) Capital goods | 191.3 |
| (2) Purchased goods and services | 141.4 |
| (3) Fuel-related and energy-related activities (not included in scope 1 or scope 2) | 49.8 |
| (5) Waste generated in operations | 4.6 |
| (15) Investments | 2.8 |
| (6) Business travel | 1.2 |
| (4) Upstream transportation and distribution | 1.1 |
| (7) Employee commuting | 0.9 |
| (12) End-of-life treatment of sold products | 0.6 |
| Total indirect scope 3 emissions | 393.7 |
Location-based
This figure is based on the greenhouse gas emissions caused by the generation of electricity in the region where the electricity is used. The location-based figure is then calculated by multiplying the electricity consumption (in kilowatt-hours, kWh) by the CO2 emission factor for electricity in accordance with the list of CO2 emission factors.
Market-based
This figure is calculated based on the greenhouse gas emissions from the energy installations where the procured electricity originates. We use Guarantees of Origin (GOs) to prove the origin of the electricity we procure.14 In the Netherlands, Gasunie purchased GOs from European wind farms in 2023. In Germany, Gasunie procured green electricity directly from its electricity supplier.
14 Part of Renewable Energy Certificates (RECs).
Notes
| Energy consumption and mix in MWh | 2023 |
|---|---|
| Consumption of energy from fossil sources | |
| Consumption of fuel from crude oil and petroleum products | 7,357 |
| Consumption of fuel from natural gas | 1,303,726 |
| Consumption of purchased or obtained electricity, heat, steam, and cooling from renewable sources | 485,200 |
| Total consumption of energy from fossil sources | 1,796,282 |
| Share of consumption of energy from fossil sources (%) | 72% |
| Consumption of energy from renewable sources | |
| Consumption of fuel from renewable sources, including biomass | 118 |
| Consumption of purchased or obtained electricity, heat, steam, and cooling from renewable sources | 713,981 |
| Consumption of self-generated energy | 1,609 |
| Total consumption of energy from renewable sources | 715,708 |
| Share of consumption of energy from renewable sources (%) | 28% |
| Total energy consumption | 2,511,990 |
Methane emissions
Reducing our carbon footprint is hugely important to us. We can make the most impact by reducing our methane emissions: 1 kg of methane emissions is equivalent to the emission of 28 kg of CO2. Our methane emissions over the past five years were as follows:
| In tonnes of methane | 2023 | 2022 |
|---|---|---|
| Netherlands | 3,544 | 3,331 |
| Germany | 817 | 1,491 |
| Total | 4,361 | 4,822 |
Gas consumption in installations
Our natural gas consumption in 2023 in the Netherlands was lower than our consumption in 2022. There has been a shift, however. The reduction in gas consumption was mainly due to the lower need for compression at our compressor stations. Approximately 40% of the company’s own natural gas consumption in the Netherlands can be attributed to the use of the EemsEnergyTerminal. In Germany, natural gas consumption was on par with that of 2022. Since 2022, use of Gasunie Deutschland infrastructure has been higher than previously. This is down to natural gas transmission routes having to be rerouted due to the war in Ukraine. This has resulted in our compressors having to work harder and more often.
| In millions of kWh; conversion factor 9.77 kWh = 1m3 | 2023 | 2022 |
|---|---|---|
| Netherlands | 389 | 445 |
| Germany | 879 | 886 |
| Total | 1,268 | 1,331 |
Heat consumption in installations
Since it was brought into operation at the end of 2022, EemsEnergyTerminal has been by far the largest consumer of heat within Gasunie. At the terminal, liquefied natural gas is converted into gaseous natural gas using heat. Aside from this, we use a relatively small amount of heat from third parties to heat natural gas at the gas receiving stations. Gasunie Deutschland does not consume heat.15
| In millions of kWh | 2023 | 2022 |
|---|---|---|
| Netherlands | 417 | 51 |
| Germany | - | - |
| Total | 417 | 51 |
15 At a number of gas receiving stations, we use heat procured from third parties to heat up natural gas. Whenever we have the option to choose between different energy carriers, emission reduction is a compulsory criterion in selecting a carrier.
Electricity consumption in installations
We saw opposing effects in our electricity consumption in 2023. On the one hand, because less natural gas was transmitted in 2023 compared to 2022, less electrical compression was required as well. On the other hand, the commissioning of the EemsEnergyTerminal has had a significant impact on our electricity consumption.
| In millions of kWh | 2023 | 2022 |
|---|---|---|
| Netherlands purchased | 705 | 749 |
| Netherlands self-generated | 2 | 2 |
| Germany | 9 | 10 |
| Total | 715 | 761 |
Our energy efficiency goal
Gasunie has an internal energy efficiency target: we are aiming to use 12.5% less energy by 2030 compared to the base year 2020. We have seen now that this target is unrealistic given Gasunie’s ever-growing remit of activities relating to security of supply and the energy transition. We are in the process of formulating a new energy efficiency target to replace the old energy efficiency target.
3.8 Financial impact
As stated previously, Gasunie intends to invest a total of € 11.5 billion as part of Vision 2030. Of this amount, € 3.6 will go towards maintenance on and replacement of existing infrastructure. The investments we deem necessary to be able to cut carbon emissions in our day-to-day operations are incorporated into this amount.