Role in the energy transition

This means new prospects for the development of the hydrogen and biomethane markets. The national transmission operator’s vision is consistent with the „Energy Policy of Poland until 2040” – the most important strategic document defining priorities for the future of the energy sector and indicating directions for further energy transformation of the country. For GAZ-SYSTEM, this means activities leading to a reduction in the share of conventional energy in favour of technology based on green energy sources. Energy transformation is one of the four strategic directions of GAZ-SYSTEM.

In 2023, GAZ-SYSTEM launched non-binding Market Screening procedure for New Hydrogen, Ammonia and Biomethane Projects. The survey provided:

• The estimation of the interest in the development of new projects dedicated to hydrogen, biomethane and ammonia transport, on the part of both producers and consumers,
• Identification of the biomethane production potential and determination of areas where biomethane plants could be connected to the domestic natural gas transmission grid.

The results of the market screening will contribute to the Company’s hydrogen strategy being developed, as well as to the formulating  of plans to provide suitable infrastructure enabling the transport of hydrogen, biomethane and ammonia, both in terms of collection from production facilities and its delivery to the locations specified by the respondents.

The creation of a hydrogen transmission and storage system is one of GAZ-SYSTEM’s key strategic objectives until 2033. Currently, the Company is in the phase of market research into potential demand and supply for hydrogen expected to serve as the foundation for the transmission network infrastructure development plans. In addition, the Company is actively participating in numerous national and international initiatives supporting technologies in this domain.

In 2023, the European Commission included the Nordic-Baltic Hydrogen Corridor in the list of key projects (PCIs) under the 'Baltic Energy Market Interconnection Plan for Hydrogen’. The project was submitted by GAZ-SYSTEM in cooperation with five European transmission system operators from Finland, the Baltic States and Germany. Its aim is to create a link between areas in Northern Europe, where there is significant potential for renewable hydrogen production, and the main centres of consumption are located in Central Europe.

In 2024, following a tender process, together with the European partners, GAZ-SYSTEM signed an agreement with AFRY Management Consulting for a pre-feasibility study for the corridor. The deliverables shall include the definition of project parameters (such as the route, scope, and capacity of the corridor), preparing financial analysis, development of a roadmap for project implementation and definition of the main risk factors. The study will be completed by mid-2024. The project is scheduled to be completed by 2030.

In addition, two international projects under the HORIZON-JTI-CLEANH2 Clean Hydrogen Partnership were launched in 2023.

• Novel methods of testing for measurement of natural gas and hydrogen mixtures (THOTH2). Apart from GAZ-SYSTEM, the consortium comprises 10 institutions/ enterprises from the European Union. The project is devised to fill the gaps in standards and regulations regarding methodologies and protocols for performance assessment and identification of limits and tolerances of metering equipment in transmission and distribution systems for transport of natural gas with admixtures of hydrogen (up to 30% H₂) or pure hydrogen.
• Safe Hydrogen Injection Modelling and Management for European gas network Resilience (SHIMMER). Apart from GAZ-SYSTEM, the consortium unites 11 institutions/companies from the European Union.  The project aims to develop tools, methodologies and recommendations to overcome technological, administrative and regulatory barriers towards greater integration of decarbonised gases and safer management of hydrogen injection into gas networks across Europe.

GAZ-SYSTEM is actively involved in the Polish energy transition process, paying particular attention to forming the biomethane market. Responding to the growing interest in connecting biomethane plants to the transmission network, the Company is focusing on simplifying the procedures associated with this process. As part of the 'GAZ-SYSTEM for Customers’ initiative, the Company organised a webinar on the principles of connecting biomethane plants to the transmission network in 2023. During the meeting, the Company’s strategy, perspectives for the development of the biomethane market were presented, and the technical requirements for the connection and transmission of biomethane were discussed.

The workshop was conducted by experts from GAZ-SYSTEM and representatives of third-party institutions and companies. Considering the popularity and interest in the topic of biomethane market development in Poland, GAZ-SYSTEM plans to continue this series of meetings also in 2024.

Applications for connection of biomethane plants to the transmission system

The Company’s involvement in the biomethane area also includes participation in the EU and national legislative process, development of guidelines for connecting biomethane plants and communication with market participants. In 2023, the Company also signed an agreement with the Danish gas transmission operator Energinet to ensure continuous gas supply through Baltic Pipe and to develop areas related to biomethane and hydrogen.

CCS / CCUS Technologies (Carbon Capture & Storage / Carbon Dioxide, Capture, Utilization & Storage) should be considered as a means of support for the natural gas market, allowing a significant share of natural gas to be maintained in the energy mix, while meeting the national economy climate neutrality objectives. In 2023, GAZ-SYSTEM joined several initiatives related to the CCS / CCUS value chain. Various Agreements including letters of intent, non-disclosure agreements and declarations to join specific initiatives were concluded in this respect. An important element is the definition of the principles of business activity related with creating the conditions for transporting carbon dioxide from its production and capture facilities to storage sites.