THE ROLE OF GAS IN

THE DECARBONIZATION

OF THE ENERGY SECTOR

A need for supply security:

The Group’s gas-fired energy

production assets (combined

cycle gas turbines, or CCGTs)

are essential today to the

security and balance of the

energy systems of which

they are part. In 2022, for

example, gas assets played a

central role in the balance of

the French electrical power

system when there was

strong pressure on supply.

Needs for balance

and flexibility:

In an electricity mix

dominated by intermittent

renewable energy, the need

for flexibility solutions to

ensure the balance of the

energy system will increase

significantly (fourfold

increase in 2035 according

to the IEA in its Net Zero

Emissions scenario).

In the medium-term, only

thermal assets can provide

this flexibility on an intra-

weekly and inter-seasonal

basis.

Decarbonization of gas

assets in the long term:

Over the long-term, the

fleet of thermal assets will

progressively decline (end of

life of power plants, partially

replaced by renewable

production), but the

remaining assets will stay

to help balance the system

peak assets

In addition biomethane

and renewable hydrogen

will contribute to the

decarbonization of gasfired

thermal plants by 20402045

THE TRAJECTORY SELECTED

Already certified for a 2°C trajectory by the

SBTi since 2020, ENGIE earned

its new well-below 2°C certification early in 2023 with new targets for 2030

(see p. 79). ENGIE committed to reduce the carbon intensity related to energy

generation and consumption (scope 1 and 2) that goes beyond the SBTi

requirements with a commitment of -66% over the period from 2017-2030

instead of the -55% required by the SBTi.

Projections for use of gas-fired thermal power plants do not currently allow ENGIE

to commit to a trajectory of 1.5°C, which would require a 78% reduction in carbon

intensity over the same period. Such a reduction could not be achieved without

the disposal of assets. These assets could not be closed Indeed, these thermal

assets could not be closed otherwise the security of the electrical system to which

they are connected would be jeopardized They would thus continue to emit GHG

emissions ENGIE is therefore playing its role as an industrial company engaged in the

energy transition remaining at this stage a key player in thermal generation resolutely

committed to decarbonizing these assets with different technologies biomethane

carbon capture and depending on technological developments renewable hydrogen

To fully industrialize these technologies despite promising changes in the regulatory

framework particularly in the EU we believe that the credible horizon is 20402045

1

3

2

THE MOST AFFORDABLE TECHNOLOGIES

TO MEET FLEXIBILITY NEEDS

Battery storage

for flexibility needs

in the very

short term

WEEKS HOURS DAYS SEASONAL

Pumped storage and

dams for intra-daily

flexibility needs

CCGTs

(1)

for short- and

long-term flexibility

needs

Gas storage for seasonal

flexibility needs

(1) Combined cycle gas turbines

2023 INTEGRATED REPORT - 67

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