Tuesday 27 June 2023

National Gas CEO wants an affordable energy transition for all

Some might think that natural gas will not be around for long, but not National Gas’ CEO, Jon Butterworth. At the Big Zero Show, he said: “We need a balanced response that this country can afford.”

He believes that the transition to net zero will need an approach that is affordable for all and this means that a hybrid energy system will be essential. Gas, whether natural gas or hydrogen will continue to play an important role in power generation.

Hydrogen, he said: “Is not a project, it's an endeavour to change our society.”

Mr Butterworth said: “23 million homes and families - gas provides their heating and hot water. 500,000 businesses wouldn't function if they don't have a gas, whether it's natural gas or hydrogen.

“And this morning, 53.2% of UK's electricity generation was from gas. So, gas is really important to us. In 2022, 30% of the energy to make electricity was from gas.

"So, I'm going to talk about the reality of it, the importance of it and how we then lean into hydrogen as the mayor has talked about previously.”

Although electrification is necessary, it must be supplemented with gas to maintain low costs.

He said: “86% of all the houses that will be around in 2050 are already built, so how are we going to insulate them so hardworking families can afford to get on the net zero bandwagon?

“We are going to need hydrogen, if we're not going to use natural gas, not just for electricity, but for industry on the domestic population. And I think we've got to be careful that in the domestic scene around net zero.

“Electrification solely without a balanced response, using gas and then leaning into hydrogen, means that it becomes the preoccupation of the wealthy and the privileged.”

What does the future of National Gas look like? Watch the full session the find out.