In 2020, the year of decarbonisation, the global importance of renewable gases was made even clearer in terms of helping to achieve the ecological transition that society and the planet are calling for. MRG is developing different projects aimed at promoting biomethane, green hydrogen and synthetic gas, as well as NGV, the use of which as a transition fuel will notably help improve the economy and the environment.
4.1 RENEWABLE GASES
In 2020, the year of decarbonisation, the global importance of renewable gases was made even clearer in terms of helping to achieve the ecological transition being called for by society and by the planet, under threat from climate change.
Renewable gases (biomethane, renewable hydrogen and synthetic gas) are neutral in terms of CO2 emissions, which help in combating climate change. These gases form part of the so-called “circular economy”, as they contribute to the efficient management of how organic waste is processed and valued, contributing to a substantial reduction in greenhouse gases. On the other hand, injecting renewable gases into the gas system will make this green energy available to any consumer without the need for huge investments in the network, as well enabling the production, distribution and consumption of autochthonous gases, which will help boost the local economy.
Madrileña Red de Gas is committed to these renewable gases and implement specific actions such as signing a collaboration agreement with Biovic, the engineering and consultancy company specialising in biogas plants, which we are going to partner with to explore opportunities for projects to inject biomethane into the distribution network. In this regard, we are also working with the main waste management companies to foster synergies between companies with a common aim. We also continue to participate actively in the working groups organised by Sedigas and Gasnam for the development and promotion of renewable gas.
On the other hand, faced with the strategic nature of renewable hydrogen (in October 2020, the Ministry for Ecological Transition and the Demographic Challenge published the “Hydrogen Roadmap”, which established 60 measures with ambitious goals to reach zero emissions in 2050), MRG has signed a collaboration agreement with ARIEMA, a leading Spanish company in hydrogen technologies and fuel batteries, to develop green hydrogen projects.
MRG is working on projects to develop green hydrogen, a renewable gas that is key to energy transition, as well as being a real solution in the medium and long term to decarbonise transport and achieve the goals for sustainable mobility in the Community of Madrid
Another example of our support for this renewable gas is our involvement with the Spanish Hydrogen Association, a key organisation for the energy transition, as well as being a real solution in the medium and long term to decarbonise transport and achieve the goals for sustainable mobility in the Community of Madrid.
MRG is working to establish a public-private framework of collaboration with the aim of studying the possibilities of transforming vehicle fleets and helping to develop refuelling infrastructures. Hydrogen has much greater potential than biomethane, so its development is hugely important for sectors where decarbonisation is difficult to achieve.
It is also important to remember that hydrogen was already an important component in so-called “city gas” (45%) that was used for both light and heating in the 19th century. Pipelines were used to transport the gas from the factory to consumers, just as it is today. Both hydrogen and biomethane can be transported using the current gas infrastructure network, guaranteeing supply safety and making the possibility of full decarbonisation a reality.
4.2 NATURAL GAS FOR VEHICLES (NGV)
As with many other sectors, COVID-19 led to a sharp drop in vehicle sales, so sales of natural gas vehicles were, naturally, also affected, with a 30% drop within the total reduction in automotive sales (35.3%, according to ANFAC).
However, it is worth noting that during the first two months of 2020, the sale of NGV-powered vehicles was not affected by the pandemic; in fact, sales rose by 219%. The fleet of vehicles in Spain in 2020 grew by 5,516 vehicles; 57% of them were registered in Madrid. Bus and light truck registrations remained the same as in 2019, giving some idea of the importance of NGV as a professional fuel.
DIn January and February 2020, sales increased by 219%, and the fleet of natural gas vehicles in Spain grew by 5,516 vehicles, of which 57% were registered in Madrid
Additionally, two new gas refuelling stations came into operation in the Madrileña Red de Gas distribution network in 2020, and another three refuelling stations are in the process of being built (two public and one private), which will form part of the already extensive gas fuelling stations network in Madrid. The network across Spain continues to grow: 99 gas fuelling stations and 64 LNG stations, according to GASNAM.
Two new gas refuelling stations came into operation in the Madrileña Red de Gas distribution network in 2020, and another three refuelling stations are in the process of being built
In the current context and in the short term, NGV development is hugely important to improving the economy and the environment, as increased growth in NGV will allow activity to recover while also respecting the environment and considerably improving the current situation. Using natural gas as a transition fuel will prove a notable benefit in both aspects.
Emissions affecting the local environment (which generate health problems in major cities, where the effects of pollution are more acute) are close to zero with NGV, with reductions of up to 80% of NO and NO2, almost no particles are emitted (95% reduction) and no sulphur oxides are emitted. CO2 emissions are also significantly reduced (by 15% to 25%). This is an exponential reduction based on the use of renewable gases.
Economically, as of today, there is no more competitive solution than NGV, as the purchase cost of the vehicle is similar to that of conventional vehicles, whereas the fuel cost is between 20% and 50% lower, something that at the moment could help save many companies.
And the fact that petrol and diesel vehicles can be easily adapted to NGV use means that environmental needs can be met and money can be saved without having to change the fleet, as existing vehicles can be transformed from conventional fuel, and thus obtain the ECO label.
It should also be taken into account that, in 2023, municipalities with more than 50,000 inhabitants will have to enable low-emission areas, which needs to be given due consideration, as we know that other alternatives do not provide a solution to all transport needs. However, by using natural gas vehicles, companies and individuals may meet the new environmental requirements without any great expense or need for public aid.
Electric mobility is not the only pathway to decarbonisation. Conventional natural gas can be replaced by renewable gases, such as biomethane, which is obtained from different types of waste. Furthermore, in its production the carbon footprint is improved, capturing methane emissions, which are more damaging than CO2. Additionally, developing these renewable gases would boost the circular economy and would help to develop sparsely populated areas of Spain, many of which have great potential.
Developing mobility with gas is an open door to hydrogen (H2), which will be the definitive solution for transport in the medium and long term
Using biomethane means that the range of CO2 emissions in mobility is lower even than that of electric vehicles (the manufacture and processing of electric vehicle batteries is not included in their calculation). Furthermore, developing mobility with gas is an open door to hydrogen (H2), which will be the definitive solution for transport in the medium and long term.
Finally, the gas structure is already prepared for significant NGV growth, has the capacity to absorb the demand and has a sufficiently equipped refuelling network. In short, natural gas as a mobility solution is a reality that is available to users of all kinds, whether professional or private, combines economic and environmental improvements, and there are a great many vehicle models available on the market.
4.3 ENVIRONMENT
With regard to the environment, MRG continued to maintain the environmental performance indicators system, and consolidated its use of the methodology by events to estimate fugitive emissions of methane into the distribution network, the result of which is taken into account when producing the corresponding carbon footprint report. Additionally, notification of reports of contaminated soils in dismantled LPG plants continued at a good pace.
With regard to the integrated management system (IMS) for safety & health, environment and quality, implemented in accordance with the ISO 45001, ISO 14001 and ISO 9001 standards, we continued adding improvements to the digitalisation of personalised IncaWeb processes, as well as consolidating the tool’s various other processes. In this regard, one of the notable landmarks of the year was to align the goals of the integrated prevention, environment and quality management system with the internal needs to improve processes and with the demands of the ESG Gresb platform.
The ESG report includes specific chapters that go into further detail on these issues.