Gasgrid is building a solid foundation for a low-emission, multi-gas platform. The multi-gas platform means that going forward Gasgrid’s pipelines will transport not only conventional natural gas, biogas and liquefied natural gas (LNG), but also hydrogen and synthetic methane (e-methane), which, in addition to biogas, are low or zero emission gases.
A multi-gas platform is needed as society is undergoing an accelerating transformation towards emission-free forms of energy and Finland aims to reach carbon neutrality by 2035.
“Our job is to adapt the market model in response to the needs and requirements of an ever-evolving gas market and our customers. The market model must take into account the different gases that are transported in our pipelines and that the model creates the conditions for a functioning gas market,” says Mika Myötyri, Head of Market and Customers at Gasgrid.
“In addition, the development trend of the energy market needs to be considered.”
Janne Grönlund, SVP, Gas Business at Gasgrid, says that a multi-gas platform creates value for market participants – and more broadly for society.
“System flexibility is largely due to the fact that the gas infrastructure itself is also a 60 GWh energy storage facility,” says Grönlund. By way of comparison, the Loviisa nuclear power plant, when operating at full power, produces the same amount of electricity in about two and a half days.”
Breakthrough of synthetic methane?
One concrete example of this breakthrough is synthetic methane (e-methane), which is identical in structure to natural gas. However, synthetic methane outperforms conventional natural gas in meeting CO2 targets because it is produced using emission-free hydrogen and carbon dioxide captured from flue gases or air.
“Synthetic methane use could increase 20 to 30 times from current levels in a few years,” Myötyri says. Demand is being driven by sea vessels and heavy-duty transport, for example.
Grönlund, too, believes in the potential of synthetic methane.
“There are already plenty of reserves and injection into the pipeline system is also effortless.”
Eventful decade
Much has happened in the industry in a short time. On 1 January 2020, the Finnish natural gas market was opened up to competition when Gasgrid took over responsibility for gas transmission in Finland. The vast majority of gas buyers are wholesale customers, i.e. large and medium-sized industrial companies, district heating and electricity companies, district heating companies and local distribution and power companies.
“A major share of gas trade is bilateral on the Finnish gas market. Besides bilateral trading, gas can be purchased on the GET Baltic gas exchange,” Myötyri explains. The target schedule is for the GET Baltic gas exchange to be replaced by the European Energy Exchange (EEX) from the end of May.”
The gas transmission capacity will be reserved separately from Finland’s transmission system operator, i.e. Gasgrid.
“Our customers can buy capacity, or the right to have gas transported, in our pipeline via our customer portal,” Myötyri says.
Balticconnector, the gas pipeline interconnecting Finland and Estonia, is also a fairly recent event. Since the start of 2020, Finnish gas users have, through Balticconnector, been able to buy gas from the Baltic states, from the Klaipeda LNG terminal, the largest gas reserve in Latvia, or from Europe through the Gas interconnection pipeline between Poland and Lithuania (GIPL). Balticconnector has thus opened up several alternatives for Finnish gas users to purchase their gas.
“The reserve facility in Latvia can hold more gas than Finland uses in a year,” Myötyri visualises.
Municipalities on a new playing field
How does a multi-gas platform serve Finnish companies and municipalities then?– Myötyri says that municipalities for example can benefit from the new age of multi-gases in a couple of ways.
“Firstly, there are plans for production facilities for gases, such as biogas or e-methane, in municipalities across Finland. When completed, these will bring jobs and tax revenue to the municipality.”
Similarly, on the use side, there is new industrial potential as clean, “zero-carbon” gases in particular take over.
“For example, a local chemical industry actor will have access to a secure supply of emission-free gas, flexibly and quickly,” Myötyri explains.
Not just a playground for giants
Myötyri says that the great thing about a multi-gas platform is that it serves both large and small market participants and end users. The multi-gas platform connects numerous points of gas production and consumption, offering gas users alternatives to run their business where gas creates value in their operations.
”The platform is able to respond to even big changes in power demand. Our multi-purpose platform is already creating huge value for Finland.
Janne Grönlund points out that the important role of the multi-gas platform in balancing the electricity market has not yet been fully taken on board.
“The security and stability of supply that gases will bring is not yet fully understood. But the electricity system is very sensitive and needs to be balanced – and gases will help a lot.”
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How is the origin of gases certified?
Gasgrid acts as the register of guarantees of origin for gas and hydrogen and is authorised to issue both national and European EECS (European Energy Certificate Systems) guarantees of origin.
The guarantee of origin of gases certifies that clean gases, such as biogas and hydrogen, are produced from renewable energy sources. The purpose of guarantees of origin is to ensure that consumers can have confidence in the origin of the energy they buy. They serve as proof that the amount of clean gases or hydrogen corresponding to the guarantees of origin issued has been produced from renewable energy sources.
“Gasgrid is interested in creating the conditions for an emerging clean gas market and facilitating the path towards this important goal. The clean gas market offers significant growth opportunities for Finland,” Mika Myötyri says.
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