The Use of Natural Gas as the Means of the Green Energy Transition

Abstract:

The European Green Deal, by its commitment towards greenhouse gas net-zero emissions by 2050, by reducing pollution and restoring biodiversity, transforms climate and environmental challenges into opportunities to change the current unsustainable context in the long term. In this respect, Romania has entered a path of replacing classic fuels with clean energy, which is very efficient and as safe as the one people are used to; and this is the main objective of this article. In carrying out this approach, in the first part of the paper, the problems related to how gases ensure the continuity of the energy system and the opportunities for the energy transition towards a green economy are addressed. And natural gas remains essential in this process. Therefore, beyond the challenges related to the security of energy supply, Romania must find and adopt a strategy to optimally cross this transition. Even today natural gas plays an important role in balancing variable renewables at an affordable cost, reducing CO2 emissions, and ensuring system reliability. In this context, the paper considers that gas remains essential to facilitate the integration of renewable and decarbonized energy, by replacing current coal-based energy production capacities, but also by contributing to the creation of hydrogen infrastructure at lower costs. Moving on, in the second part of the paper, the main projects that make natural gas a "partner" for renewable resources are presented; it is mainly about the installation of new wind and photovoltaic energy capacities, and the use of hydrogen as an alternative fuel. For the stability of the system, there is a need to install backup capacities on natural gas mixed with hydrogen, or storage capacities and the use of intelligent electrical network management techniques, which implies the creation of new distribution infrastructure ready for the mix of natural gas with hydrogen, according to Romania's orientation to rely on natural gas in the green transition. In this respect, the paper points out that there are currently investors, but (yet) there is no market, nor sufficient demand for green hydrogen, although the potential is huge. Anyway, in the current context of energy paradigm changes, Romania's major natural gas producers, Romgaz and OMV Petrom, have announced their intention to invest in a joint hydrogen production project in a wind farm in Dobrogea, a first for the Romanian market, which would determine that Dobrogea could become a real "Hydrogen Valley". Finally, the paper concludes that for the energy sector and not only, natural gas represents the optimal solution in this process, Romania is in the privileged position of owning its resources, while the versatility of natural gas can ensure a just energy transition.