Summary

Sweden has already made considerable headway in the transition to a sustainable, fossil free society. Nevertheless, there are still major challenges in a number of areas and energy gases can offer a solution.

Sweden is still using 122 TWh of fossil oil products that need to be phased out in areas like road transport, shipping, and industry. Industry is faced with the task of making the transition in line with Swedish climate goals and at the same time compete on the global market.

The electricity system needs to be developed to meet the expected increase in demand, as well as the growing proportion of electricity from weather-dependent technologies. Our air needs to be clean and free of pollutants. Furthermore, we need to switch from a linear to a circular economy, where resource consumption and waste generation are minimised, and their potential is maximised. Agriculture must become more organic, and security of supply must increase to meet the country’s need for fuel, raw materials, and crop nutrients.

Through our trade organisation, the Swedish Gas Association, and within the framework of Fossil Free Sweden, we in the Swedish gas industry have drawn up this roadmap to show how energy gases can contribute to promoting fossil-free competitiveness. The roadmap is the result of the commitment and collaboration that has emerged between many of the companies and organisations responsible for the following vision:

THE GAS INDUSTRY’S JOINT VISION
All energy gases used in Sweden will be completely fossil free by 2045 at the latest. The potential for producing renewable gas will be realised.

As part of the realisation of the vision, the climate roadmap
includes the following objectives:

GAS INDUSTRY OBJECTIVES THROUGH TO 2023 AND 2030

2023: All CNG (Compressed Natural Gas) for transport will be biomethane.

2030: Liquefied gas used to power vehicles will reduce greenhouse gas emissions by an average of 70–90 per cent compared with fossil fuels such as petrol and diesel.

2030: All energy gases in the power and heating sectors will be completely fossil free.

If current energy gas use is to become fossil free, 20TWh of renewable gas is required. This can be compared with the current level of use of renewable gas, which is less than 4 TWh annually, and where approximately half is produced in Sweden.

Even higher volumes of renewable gas will probably be required as industry and the transport sector continue to make the switch from oil to gas in a concerted effort to reduce emissions quickly and effectively.

The production potential exists in Sweden but needs to be realised more rapidly than is the case at present. During the build-up phase in particular we are aware that domestic production may need to be supplemented with imports of renewable gas.

If current energy gas use is to become fossil free, 20TWh of renewable gas is required. This can be compared with the current level of use of renewable gas, which is less than 4 TWh annually, and where approximately half is produced in Sweden.

Even higher volumes of renewable gas will probably be required as industry and the transport sector continue to make the switch from oil to gas in a concerted effort to reduce emissions quickly and effectively.

The production potential exists in Sweden but needs to be realised more rapidly than is the case at present. During the build-up phase in particular we are aware that domestic production may need to be supplemented with imports of renewable gas.

The most central and challenging undertaking is that as an industry we need to invest to bring about a substantial increase in the production of renewable gas. We have identified a number of obstacles that need to be eliminated if we are to boost production. The most obvious obstacles are:

• Many of our customers want to be free of fossil fuels but cannot afford to do so.

• The demand for renewable gas is uncertain.

• Distorted competition is impeding Swedish biogas production.

• Policy instruments are channelling certain raw materials towards end-products other than renewable gas.

• We are dependent on other sectors for the production of bioLPG.

• There is a considerable economic risk when investing on an industrial scale.

• The market for renewable gas is still undeveloped.

We urge the Government and Parliament to introduce the following concrete measures immediately:

• Implement the proposals and assessments from the governmental biogas market inquiry (Biogasmarknadsutredningen).

• Develop the Green Gas Concept.

• Reinforce differentiation in shipping tariffs based on environmental considerations and apply fund solutions to stimulate environmental and climate measures.

• Promote a global price on climate emissions.

We can also see the need for new strategies and working
methods within the political sphere:

• A national strategy is needed to improve the availability
of renewable gases to industry.

• Sweden’s planning of the electricity and gas infrastructure needs to take place on a collective basis.

• A plan of action is needed for Sweden as a net exporter within the circular bioeconomy.

• Climate policy measures need to be evaluated from a broader sustainability perspective.