Society cannot yet function without the large-scale use of fossil fuels and associated greenhouse gas emissions. It is these emissions that must be rapidly reduced if we are to slow global warming. As we transform from a natural gas transmission system operator to an energy infrastructure company, we need to reduce, in our daily operations, our carbon footprint and that of our value chain partners.
Our carbon footprint reduction ambitions
In 2021 we set a corporate-wide target for both our CO2 and methane emissions. Our target for 2030 uses 2020 as the base year, given that 2020 is a sufficiently recent year with reliable, up-to-date data. This group-wide target enables third parties to compare our total results with the total results of other network operators.
Our methane reduction target Methane (CH4) is emitted to the air as we operate and maintain our infrastructure, in particular when starting and stopping compressors, when operating equipment with natural gas pressure (pneumatic components), while work is being done on the transmission network, and from fugitive leaks (in couplings, flanges and valves at compressor stations, gas receiving stations, metering and regulating stations and valve locations). Methane is a potent greenhouse gas.
Our methane emissions must be below 70 kt CO2e by 2030. In line with the increase in the methane conversion factor (GWP; see the box Adjustment in calculation of GWP of methane emissions), in our 2022 annual report we also recalculated the CO2 equivalent figures for methane for the years 2020 and 2021. 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.
Results to date Methane emissions totalled 122 kt Co2e in 2023, a decrease from the 135 kt CO2e in methane emissions in 2022 (applying a GWP of 28 for both figures). In the Netherlands, Gasunie’s methane emissions were up slightly compared to 2022, mainly due to the use of the 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. In Germany, our methane emissions decreased in 2023 compared to 2022, mainly because better emission factors could be applied using the data from the most recent measurement campaign*.
* Emission factors are representative values which quantify the environmental impact of various materials, products, services and processes, like the number of kilogrammes of methane emissions per unit of time from a controller, for example. Emission factors are sometimes derived from secondary sources (i.e. published information), but more reliable emission factors are often obtained through primary research (i.e. actually carrying out measurements).
Our methane emissions in 2023: on track to meet our reduction target in 2030
In our view, the methane emission target of 70 kt CO2e in 2030 is still within reach. It leaves us with the challenge of achieving another 52 kt CO2e between now and 2030. Our methane emission reduction projects will yield results in the coming years, and we want to end a number of emitting activities by 2030 as well. We will be replacing pneumatically driven components such as pressure regulators and flow regulators. We also expect to decommission a number of large facilities.
Our CO2 reduction target 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 emissions.
We are aiming to reduce our total CO2e emissions (i.e. including methane emissions) related to our natural gas transmission (Scope 1 and 2, market-based) by 34% by 2030 compared to 2020, assuming constant transmission volumes*. Written as a formula this is: total CO2e (in kt) = 70 (kt CO2e) + (0.137 × transmission volume).
* With lower transmission volumes, our reduction target measured in kilotonnes of CO2e also decreases in absolute terms.
Results to date The realised value for 2023 was 490 kt CO2e based on transmission of 973 TWh, a significant increase compared to the 390 kt CO2e in 2022 for the transmission of 1,108 TWh. This means we are not on track to meet our 2030 target. This situation can largely be attributed to the use of the EemsEnergyTerminal. The LNG is regasified using both seawater and heat from the Eemshaven power plant operated by RWE. The CO2 emission factor associated with the heat from the power plant is high. The use of the vessels’ own generators (because the onshore power supply was not yet ready) also led to higher methane emissions in the first few months of the year*.
* The use of EemsEnergyTerminal does not count towards the targets for our sustainability-linked bonds (SLBs), given that this entity had not yet been established at the time the SLB framework was drawn up.
We believe that our reduction target for our total CO2e emissions in 2030 is still within reach, as we expect to decommission a number of methane-emitting facilities (like the EemsEnergyTerminal, for example) before 2030.
Our total carbon emissions in 2023: not on track at the moment to meet our reduction target in 2030
Gasunie and SBTi
Gasunie would like to join the Science Based Targets initiative (SBTi), an organisation that checks whether companies’ climate targets are ambitious enough to provide a decarbonisation pathway in line with the 1.5°C scenario. This is not yet possible, given that the SBTi guidelines for the oil and gas industry are still being developed.
Our measures regarding CH4 emissions
We are reducing our methane emissions by making use of:
Emission-free regulating equipment: Gas-emitting regulators are no longer used in newly built or refurbished installations. By the end of 2029 we will have replaced all regulating equipment with emissions with zero-emission variants.
LDAR programme: With 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).
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 gas was flared (2022: 340,522 m3). Flaring instead of venting yielded environmental savings of 5 kt CO2e in 2023 (2022: 5 kt CO2e).
Our emissions reporting
In our emissions reporting we split our carbon emissions into three groups (called ‘Scopes’). We calculate the contribution to the greenhouse gas effect (our ‘carbon footprint’) in carbon dioxide equivalents (CO2e). We report and evaluate our emissions internally several times a year. Gasunie uses the operational control method for disclosing its carbon emissions.
Gasunie’s emissions according to the GHG Protocol (in kilotonnes of CO2e)*
Location-based
This figure is based on the GHG 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 (expressed 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 of the energy installations where the procured electricity originates. We prove the origin of the electricity (from renewable sources) through Guarantees of Origin (GOs), In the Netherlands in 2023 Gasunie purchased Guarantees of Origin from European wind farms. In Germany, Gasunie procured green electricity directly from its electricity supplier.
Scope 1
This comprises all emissions that are a direct result of our own activities, like the emissions from our compressors, our own gas consumption to heat buildings, the gas used by the boilers at the gas receiving stations, etc. This category also includes our CO2 equivalents in methane emissions and hydrofluorocarbons (HFCs, for cooling processes).
Scope 2
This includes the indirect emissions of energy we have procured. 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. In 2023, we completely decarbonised our electricity consumption by purchasing Guarantees of Origin (GOs). This will be changing in 2024. Besides electricity we also procure heat, mainly for the regasification of LNG.
Scope 2
Scope 2 emissions are shown on the basis of a market-based method. The location-based figures for Scope 2 emissions from the generation of procured electricity are: 339 kt CO2e in 2022 and 277 kt CO2e in 2023. We had completely decarbonised our electricity consumption by 2023.
Scope 3
Included in this scope are all indirect greenhouse gas emissions related to upstream and downstream activities in our value chain that are outside our direct control. For the purpose of this annual report, under Scope 3 activities we again include the same (very limited) activities we have included in recent years: emissions from business travel and commuting and from the production of the nitrogen that we purchase. 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).
Scope 3
This is because, for a full understanding of our Scope 3 emissions, we need to calculate the lifetime emissions of all capital goods we procure. To do this, we will need to collect and verify such a large quantity of data from suppliers and other parties that we will not yet be ready to disclose the results by the date of publication of this annual report.
* Differences in the column totals may occur due to rounding.
What we are doing to reduce emissions
Reducing our carbon footprint is hugely important to us. We can make the most impact by reducing our methane emissions: in terms of global warming potential, 1 kg of methane emissions is equivalent to the emission of 28 kg of CO2.
International joint efforts to reduce methane emissions
We are an active participant in the study groups of the Oil and Gas Methane Partnership (OGMP). Energy companies participating in the OGMP make voluntary agreements on methane emission recording, calculating and reporting. Gasunie is reporting the methane emissions for its operational assets for the reporting year 2023 in accordance with the ‘Gold Standard’, the highest OGMP reporting standard.
Gasunie anticipates that in 2024 the European Commission will adopt a regulation aimed at reducing methane emissions. This regulation includes restricting the use of venting and flaring to strictly necessary situations and tightening up the LDAR (leak detection and repair) programme. Changes in the LDAR programme will result in a higher inspection frequency and require short repair times. Gasunie actively contributed to the development of the draft regulation.
Other activities in 2023 were:
We participated in an international GERG project for top-down measurements and reconciliation at a compressor station in Europe.
We contributed to standardisation at CEN in the area of quantification, leak detection and repair of natural gas emissions, and the prevention of these emissions.
Our measures regarding CO2 emissions This is how we reduce our carbon emissions:
Decarbonisation of our electricity consumption: In 2023, we purchased Guarantees of Origin (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. In 2023, we greened more than 1.9 million m3 of our own gas consumption in the Netherlands with GOs, 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.
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.
Gas receiving stations: 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 it will become clear whether this concept can be used at gas receiving stations.
Transport & mobility: Since 2021, we have been replacing our fossil fuel company cars with fully electric vehicles.
Head office: Thanks to the Green Teams employee initiative, all boilers at the head office were replaced by energy-efficient alternatives in 2023.
Green procurement of nitrogen at third parties: 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. The producer from which GTS sources its nitrogen decarbonised its emissions through the purchase of GOs. In 2023, this portion concerned around 85% of the total amount of electricity that was required for the production of all nitrogen procured.
Lower emissions thanks to local wind energy
Dutch wind power to cover a quarter of our electricity needs thanks to our contract with Greenchoice Gasunie consumes a lot of electricity to keep the natural gas network under pressure. A lot of electricity will also be needed in the future for the transmission of hydrogen, green gas, CO2 and heat. Up to now, we have been decarbonising our power consumption by purchasing Guarantees of Origin. That will now change thanks to the five-year Power Purchase Agreement (PPA) we concluded with Greenchoice in 2023, under which, from 2024, about 25% of the energy we use (250 GWh) will come directly from Dutch wind farms.
Sourcing locally Procuring green energy directly at the source creates a direct link between generation and our consumption and allows us to reduce the share of our emissions that arises from the production of ‘grey electricity’ (power generated from non-renewable sources). We did set a number of quality conditions for this, like that the energy really had to come from the Netherlands or the Dutch part of the North Sea, for example; otherwise this would not officially be considered ‘green energy’. We issued a call to tender with this and other conditions and Greenchoice’s bid came out on top.
Moving with the wind What is special about the agreements with Greenchoice is that Gasunie will procure what is referred to as a ‘wind profile’ from 2025, which means that we purchase more green power on a windy day than on a calm day. The effect of this is that it encourages us to ‘move with the wind’, adapting our consumption to the energy generated at a given time. This will seldom be necessary at first: even with strong winds, we are not procuring more energy from Greenchoice than what we can use. In the longer term, however, this is an important step towards realising what’s called ‘24/7 CFE’.
Moving towards 60% CFE CFE stands for ‘carbon-free energy’, and 24/7 CFE means that all energy consumed, every hour of every day, comes from local, renewable sources. This is not always easy to ensure, but it is essential for the transition to a more sustainable energy system. Gasunie wants at least 60% of its own hourly electricity consumption to be CFE by 2030. This way we can cut our emissions and be less dependent on fossil energy. The PPA with Greenchoice brings the realisation of this target much closer.
We are very pleased that, through this collaboration, we can further strengthen our position in the market for generating electricity from wind and sun. With the certainty such a large client provides, we can increase our investments, constructing new solar and wind farms, for example. And that can only be beneficial for the energy transition.
Cookie settings
To enhance your experience, we use cookies. Cookies help us optimize the website and collect statistics.
You can adjust your cookie preferences by clicking on the 'Cookie preferences' button. Here you can specify which types of cookies you want to accept or reject.
You can change your choices at any time by going back to these settings via the 'Cookie settings' link at the bottom of every page.
