Transformation

We are actively shaping the transformation of the energy industry.

 

VNG's commitment to a fundamental transformation towards a decarbonized and future-proof energy sector, together with our customers, contributes to achieving Europe's climate objectives. As an organization, we are facilitating the transition into new business sectors.

For us, one thing is certain: we are there for our customers and partners, accompanying them on their journey towards the energy world of tomorrow, particularly in the future-oriented fields of hydrogen and biomethane.

Against this backdrop, VNG launched the Group-wide strategy process "VNG 2030+" in 2017, outlining how we intend to further develop our role in the transformation of the energy sector. To support this ambition, VNG Handel & Vertrieb GmbH, our parent company, established a team of experts dedicated to coordinating and driving projects and initiatives related to the energy transition and the ramp-up of renewable and low-carbon gases.

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Grüne Transformation GIF ENG final

'Green gases' roadmap

Beyond the VNG 2030+ strategy, we are continuing to follow our roadmap for engagement in the field of renewable and decarbonized gases. Through concrete projects and research priorities, it paves the way for the further development of our business areas as part of the energy transition. In the long term, renewable gases can help future-proof existing applications that currently rely on natural gas. This particularly includes hydrogen and biomethane, which are seeing growing demand, especially in emissions-intensive industries and heavy-duty transportation.

These so-called “green gases” can not only contribute to security of supply but also offer significant potential for reducing greenhouse gas emissions in specific application areas. While the majority of final energy consumption is still based on fossil fuels, green gases currently account for less than one percent of total gas consumption. This ratio must be reversed over the coming years and decades in order to achieve Germany’s and Europe’s long-term climate protection targets.

Hydrogen

Hydrogen has strong potential to become a key technology in the energy market over the long term. There are various processes that can be used to produce hydrogen. Depending on the type of generation and production-related CO2-emissions, a distinction is made between green, blue, turquoise and grey hydrogen. Currently, the most cost-effective hydrogen production process is natural gas steam methane reforming (SMR), as the production of green hydrogen from renewable energies via water electrolysis is associated with very high costs.

The hydrogen colour spectrum

Green H2

Hydrogen that is produced through electrolysis using electricity from renewable energy sources. Alternatively, green hydrogen can also be produced from climate-friendly biogas or biomethane, for example through steam reforming.

Blue H2

Hydrogen produced from natural gas by steam reforming. The resulting CO2 is stored in suitable geological structures by means of carbon capture and storage (CCS).

Turquoise H2

Hydrogen obtained by splitting methane (pyrolysis). During production, instead of CO2, the end product is solid carbon, which can be stored and used in various industries.

Grey H2

Hydrogen obtained from fossil energy sources, the production of which produces CO2-emissions. One common process is steam reforming from natural gas. 

Biomethane

Produced from organic residues and renewable feedstocks, biogas is already a key component of a reliable and low-carbon energy supply. Upgrading biogas to biomethane (also known as renewable natural gas) enables its injection into the existing natural gas grid, thereby helping to replace fossil natural gas. Thanks to its refinement to natural gas quality, biomethane can be used as an alternative to fossil fuels in passenger and heavy-duty transport, power and heat generation, as well as in industrial and commercial applications.

Biogas plays an important role in a decarbonized energy world. Together with BALANCE Erneuerbare Energien GmbH, a subsidiary of VNG AG and the infrastructure investor CVC DIF, and bmp greengas GmbH, a wholly-owned subsidiary of VNG Handel & Vertrieb, we are actively driving the development of our business centered on this domestic energy source and thus accelerating our transition to renewable gases.

"Only by working together we will be successful in the long term, because the transformation of the energy system is a joint task. If this succeeds, we will all benefit. Through our numerous projects, our goal is to find innovative solutions that help drive the transition toward a decarbonized society."

Alexander Lück
Managing Director VNG Energie Czech

VNG's role in the transformation of the energy system


We want to actively shape the transformation of the energy system and to support you as a strategic partner in implementing your transformation initiatives. On the path toward a decarbonized energy economy, it is essential for us as an organization to both advance our established gas-related business activities and drive the transition toward new business areas. The implementation of our decarbonization strategy brings with it a wide range of new projects, topics, and challenges. It requires cross-functional thinking and proactive action in order to achieve our shared goals. This approach lays the foundation for our future growth and for the achievement of long-term energy and climate objectives.

More information about VNG Handel & Vertrieb GmbH's activities and projects related to renewable and decarbonized gases can be found on the website.
 

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For further information on our projects and initiatives in the field of renewable and low-carbon gases, please visit the website of our parent company, VNG Handel & Vertrieb.

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