The future of gas is changing and we're right behind it

The gas used in Kiwi homes currently makes up less than 1% of the country’s total greenhouse gas emissions, while commercial and industrial gas users contribute 8%. It’s not much – but we think we can do better!

Natural gas and LPG are cleaner burning fuels, with lower CO2 emissions than coal or wood burners. But (along with the rest of New Zealand’s energy sector) we need to go a step further[1].

That’s why we’ve been investigating the possibilities of low carbon gas–primarily hydrogen, biogas and bioLPG – some of which are already being tested in New Zealand and are well-advanced overseas.

With these potentially low carbon gas alternatives, we’ll be able to continue using our existing pipeline networks and distribution channels to distribute gas. It’s a pretty good way for us to help reach New Zealand’s net zero carbon goal by 2050, while still enjoying a good ol’ fashioned Summer barbie.

1. Emissions and climate

With the support of the government, we’re already looking at how we can use our existing gas pipelines to carry renewable gas to New Zealand homes and businesses, including leading part of a Hydrogen Pipeline Trial and being involved in a Biogas Industry Study. We’re also closely following the results of extensive hydrogen research and development in Australia and Europe – where some gas networks are already successfully blending up to 20% hydrogen.

As part of the World Energy Council’s Global Hydrogen Initiative, we’ve started planning to introduce hydrogen into our existing gas networks from 2030. Our research shows that we should be able to convert the Firstgas pipeline network to 100% hydrogen by 2050. This step would reduce New Zealand’s energy emissions by nearly 25%.

Most appliances will work on up to a 20% blend of hydrogen, and our network is already set up to deliver this. So, while we help change the future of gas to meet New Zealand’s zero carbon goal, you can continue enjoying the benefits of gas.

We’ve investigated what New Zealand’s hydrogen future could look like and how our network can play its part.

In 2019, Firstgas received $260,000 in government funding managed by the Provincial Development Unit to investigate how existing gas infrastructure could adapt to transporting hydrogen. The first phase of the work programme was a hydrogen pipeline trial study to investigate the role of hydrogen in decarbonisation and what we will need to do for our network to carry hydrogen.

This Hydrogen Pipeline Trial Study shows we have sufficient network capacity and a viable strategy for converting the networks to hydrogen blends and then 100% hydrogen. Our study findings confirm that our network could be delivering a blend of hydrogen by 2035, with a move to 100% hydrogen by 2050. This would be supported by large scale storage of hydrogen in Taranaki to provide inter-seasonal and inter-year flexibility for the energy system.

Hydrogen is a cleaner alternative to natural gas. It can be produced by electrolysis, which is the process of using electricity to split water into hydrogen and oxygen. If the electricity is generated using renewable resources, like wind and solar, then the process creates no new carbon emissions, and the hydrogen produced is “green” hydrogen.

Based on our study, hydrogen could replace natural gas demand in most sectors by 2050. Hydrogen has the potential to displace a range of different fossil fuels currently used for high-temperature process heat, building heating, electricity generation and large-scale energy storage which goes a long way to supporting a 100% renewable electricity system.