Utility Week

UTILITY WEEK | MARCH 2023 | 29 Gas F ormerly the chief executive of National Grid Gas Transmission & Metering, Jon Butterworth has known for the past two years that he would be retained at the helm when it was spun off as a separate entity, National Gas, in January this year. He has clearly spent the time honing his message that the gas sector – through the transition to hydrogen – is in the vanguard of decarbonisation. It must be a relief, I suggest, to be free to now make that argument – unshackled from a parent company that has made clear its focus, in the UK at least, is on electricity. Butterworth pauses: "The way I would describe it is that it's now far more helpful." National Grid remains a minority shareholder in the business, which operates the gas transmission network, manages seven million gas meters and incorporates the gas system operator. However, new owners Macquarie and British Colum- bia Investment Management Corporation (BCI) are widely expected to buy the remaining 40% stake this year. He describes the separation as "clean split" and stresses that his deep-pocketed owners "understand the opportunity to invest in us". He describes them as "a breath of fresh air". Butterworth, who spent seven years working on National Grid's interconnectors arm before taking the lead on the gas business, is well aware that not all inves- tors see that opportunity. He accepts that the gas sector has suffered from an image problem and is not always associated with the solutions for climate change. This is something he wants to change with a well- polished message around decarbonisation, security of supply and the chance for the UK to be a global leader in hydrogen. "People don't o'en seem to fathom that everyone in the gas industry is passionate about net zero and wants to do the right thing. We know we have a role to play. "As we've bet the farm on wind, and we'll go from 20GW to 50GW, we need to think about what we do when the wind doesn't blow for the 146 days it didn't blow in 2022. Gas has got to keep the lights on for electricity. If we throttle demand on the electricity interconnectors that also takes gas demand up." He points out that on several days in December, National Gas was pushing up to 90,000 tonnes of natu- ral gas into power stations. "People underestimate just how big a role gas plays," he insists. He is adamant that this is not about electricity versus gas but says: "We need to have a proper debate about what's the right thing to do in the next decade so the lights don't go out and people do get the option to have the cheapest cost [of net zero) that we can deliver."] He adds: "Let's look at GB as a system and look at energy in it's totality so we can have a balanced response for gas, electricity and emerging technologies." Butterworth is unapologetically evangelical about hydrogen, even if he accepts many people take a differ- ent view. He sums up his argument as: "Once you get into data and into the science you will immediately come up with the conclusion it is impossible to transition without hydrogen or natural gas. If you take the emotion out of it and look at the data, you can't escape that conclusion." Butterworth talks enthusiastically about a number of projects National Gas is involved with that aim to display the potential of hydrogen. They include the FutureGrid hydrogen test facility in Spadeadam, Cumbria, which has seen decommissioned assets used to trial hydrogen at blends of up to 100%. He says he is "delighted" with the results and believes it can help to bust some of the myths around hydrogen use. "While I'm the CEO of a gas company, I'm also a patriot. I genuinely believe hydrogen can protect jobs but also show the world the UK is open for business. We can be at the vanguard of hydrogen. I would love us to not yet again lose an opportunity for a major new emerging renewable sector that we could be a world leader in." While the government has talked up the potential of hydrogen it has remained on the fence about its future potential in domestic heating. How much does that deci- sion in 2026 keep Butterworth awake at night? "I would simply ask, if we're going to stop sending 400 million cubic metres of gas into the UK and Ireland what are we going to do instead? If the wind is not blow- ing, and we're not using gas for heat, what are we going to do? Batteries will last minutes and as yet there's no other viable solution. It might be inconvenient that the UK is o'en at its coldest at the same time the wind isn't blowing, but you need a solution for that." He adds: "I would just like us to have that mature debate. We have to give people a choice because I don't think it's for the industry to tell people what they should have to heat their homes. It requires a debate and we'd like to input into that." Affordability is also a key part of this debate and But- terworth insists that green gas is "a very cheap option" in comparison with electrifying all heat. Key to Butterworth's well-rehearsed pitch are the 210,000 businesses that rely on natural gas at the moment. "Many businesses are medium to small industry units on the outskirts of our towns and villages. It's just not feasible for all of them to move to the coast. It's not feasible for them all to be electrified. What are they going to do if there's no gas? That's the debate we need to be having." National Gas's FutureGrid hydrogen test facility in Cumbria

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