National Grid PLC outlined a vision for eliminating standard natural gas transportation in its Massachusetts and New York distribution network by midcentury.
On the supply side, National Grid USA would entirely replace fossil gas with renewable natural gas, or RNG, and low-carbon hydrogen by 2050. The company would drive down gas demand by supporting energy efficiency improvements, uptake of hybrid electric-gas heating systems, limited building electrification and development of geothermal networks.
"We have a critical responsibility to lead the clean energy transition for our customers and communities," National Grid CEO John Pettigrew said in an April 19 news release.
The move comes as Massachusetts and New York seek pathways to achieve ambitious reductions targets for greenhouse gases, including through building electrification. Utility commissions in both states are reviewing the future role of gas distributors, while policymakers explore ways to decarbonize the building sector. Building electrification mandates are moving forward in New York, as Massachusetts lawmakers are seeking to grant local governments authority to prohibit gas use in new buildings.
The fossil-fuel-free commitment does not apply to Rhode Island, where National Grid also distributes gas.
Plan relies on growing RNG, hydrogen supplies
The first part of the plan focuses on accelerating energy efficiency in buildings, which can reduce heat demand in by 55% from today's levels by 2050, according to National Grid. The company said it would support stricter codes for new buildings and continue operating programs that reduce peak demand.
To eliminate natural gas from its system, National Grid said it would need to procure 10% to 20% of the total annual RNG supply potential in the Eastern U.S. Factoring in economic constraints, the region has the potential to produce 685 trillion Btu to 1,500 trillion Btu of RNG by 2040, according to a 2019 report cited by National Grid. RNG is an alternative fuel processed from methane waste at farms, landfills and other sources.
To procure low-carbon hydrogen, National Grid said it could rely on imports from other regions and green hydrogen production from Northeast renewable power projects, including 40 GW of planned offshore wind development through 2050. During the S&P Global Market Intelligence Annual Power and Gas M&A Symposium in March, Ben Wilson, chief strategy and external affairs officer at National Grid, explained how the company's offshore wind investments would help supply green hydrogen, a form of the fuel made by breaking down water using zero-carbon power.
The company said it can blend up to 20% hydrogen in the existing gas grid without significant distribution system or end-use equipment upgrades. In areas of high gas demand, pure hydrogen infrastructure could help heat homes as part of hydrogen clusters.
Hybrid heating, geothermal play supporting role
As a third strategy, National Grid would help customers pair gas appliances with electric heat pumps, which use outdoor air to condition buildings. That would allow residents and businesses to rely on electric power to heat and cool homes during warm and temperate months and switch to gas during cold snaps. Hybrid systems would let customers install smaller heat pumps and avoid costly building and heating system modifications, National Grid said.
National Grid also said it would support cost-effective building electrification, though it would prioritize converting customers who heat with fuel oil and propane to heat pumps. National Grid said it would encourage ground-source heat pump adoption wherever possible because the equipment reduces strain on the electric grid and underground heat is more consistent than heat in the air.
Prioritizing ground-source heat pumps would also help preserve a role for National Grid in energy distribution. The company said utilities could leverage their skilled workforce and underground construction experience to install and maintain geothermal networks, which allow neighbors to share heating and cooling resources.
National Grid said it would support policies to scale renewable fuel supply and demand, revise building codes, provide customer incentives and develop greenhouse gas emissions accounting.
The company aims to deliver up to 20% of its gas supply as RNG through 2030 while piloting hydrogen blending and converting most fuel oil customers to electric heat. By 2040, it seeks to achieve a 20% blend of hydrogen and a 30% blend of RNG, as it also endeavors to deploy hybrid heating systems widely, expand geothermal networks and targeted building electrification and eliminate oil heating.
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