Natural gas

We are actively phasing out fossil-based production and investing in a greater share of renewable generation and natural gas can be a transition fuel in the conversion to a sustainable energy system. Natural gas has lower CO₂ emissions compared to other fossil fuels, contributes to security of energy supply and gives Vattenfall a more balanced portfolio that reflects the European energy mix.

Natural gas can play a crucial role in our efforts to reduce CO₂ emissions. In Germany and the Netherlands, Vattenfall is active in almost all parts of the gas value chain, from gas storage, trade and delivery to almost 2.3 million end consumers. We supply natural gas for heating purposes to households, small and medium enterprises, power stations and industry.

Gas-fired power is a bridging fuel to a sustainable energy system. When CO₂ prices increase, natural gas will become increasingly attractive and competitive compared to, for instance, coal-fired power plants.

In our retail customer business, we are increasing the share of biomethane to replace natural gas and investing into heat pump solutions as an alternative to gas heating.

Natural gas storage

We store gas in caverns of disused salt mines in the German town of Epe, near the Dutch border at Enschede. This enables us to respond flexibly to fluctuations in the supply and demand of gas on a daily basis. Furthermore Epe is also used for trading purposes and can be seen as a seasonal financial instrument to arbitrage between winter and summer prices.

Natural gas and the environment

Combustion of natural gas emits CO₂, though to a lesser extent than the combustion of other fossil fuels. The role of natural gas as a balancing power will increase as renewable energy sources with fluctuating production – such as solar and wind power – gain significance.