ENGIE : GREEN GASES notebook 2022

GREEN GASES NOTEBOOK 2022

GREEN GASES NOTEBOOK

02 I GREEN GASES NOTEBOOK

RENEWABLE GASES, AN ESSENTIAL ENERGY SOURCE FOR CARBON NEUTRALITY

As a renewable resource, biomethane is a component of the circular economy. Though it remains marginal in the global energy mix, it is an energy source of the future that is needed, alongside low- carbon hydrogen and synthetic gases, to achieve carbon neutrality.

What are renewable gases?

GREEN GASES NOTEBOOK I 03

KEY FIGURES:

1 million

jobs by 2050 in Europe

thanks to renewable energies and

low-carbon hydrogen

27,000

hydrogen charging stations

needed by 2030

ENGIE'S RENEWABLE GAS

GREEN GASES NOTEBOOK

Biogas

Renewable gas obtained from a natural process: the fermentation of organic matter. The production of biogas makes it possible to recover organic waste from agricultural (manure, residues) or urban (sludge, food waste) environments.

Biomethane

A gas with a very high methane concentration derived from biogas purification and injected into the networks. BioNGV or bioLNG (or liquefied biomethane) are used as clean fuels.

Renewable hydrogen

Synthetic methane

This name covers different types of renewable gases (CH4):

• renewable gases produced from various organic waste according to different processes, such as pyrogasification (a high-temperature thermochemical process that uses waste to produce a gas that can be injected into existing networks) and hydrothermal gasification (a high-pressure,high-temperature thermochemical process for converting liquid biomass into a synthetic gas).
• gases from methanation processes based on low-carbon hydrogen and carbon.

Greening gas across the entire value chain

ENGIE has set itself the objective in France of greening gas to reach 100% renewable gas by 2050. In particular, the Group is present throughout the entire biomethane chain, from the development of industrialization projects

TARGETS FOR 2030

4 GW

of green hydrogen production Work was underway in 2021 in the United Arab Emirates.

700 km

of hydrogen dedicated networks (of which 170 km as from 2025)

1 TWh

of storage capacity

Hydrogen is a gas that is naturally present in the universe.	Low-carbon hydrogen
When produced from renewable resources, hydrogen can	Hydrogen produced with natural gas using various CO2
provide low-CO2 electricity and heat, both directly or	capture technologies, which allow it to be stored or reused
through fuel cells. As a highly versatile fuel, hydrogen can
be transported and stored in liquid or gaseous form.

Hydrogen: an accelerator of decarbonization

To achieve a carbon-neutral future, ENGIE relies on a diversified energy mix and, in particular, on an ambitious program to develop hydrogen production, transport, storage and distribution capacities. This gas can be stored in underground saline cavities over long periods. It can be injected as a mixture into the gas network, or used in pure form for a variety of purposes, in particular in industry and the mobility sector, or converted into low-carbon electricity. It contributes to solving the problem of the intermittence of renewable energies.

Another fundamental advantage of hydrogen is the fact that it can be produced from locally established renewable energies, thereby promoting the short energy circuit and local jobs. Thanks to in-depth knowledge of the regions in which it operates and its ability to intervene in the entire value chain - from the development and financing of hydrogen projects to sales to end customers - ENGIE has major assets to bolster its development.

Hydrogen is therefore the promise of a new technological, energy and industrial sector, both locally and globally, with new jobs at stake, essential as a contribution to the decarbonization of the energy mix. The governments have understood this: in Europe, more than 10 countries (including France) and the European Commission have published their "National Hydrogen Strategy" road map, with the related promises of funding.

to its distribution. In France, ENGIE BiOZ initiates, develops, finances, builds and operates units for injecting biomethane into the gas network, with a long-term commitment to the regions. In 2021, it inaugurated three methanization units in Sarthe, Ille-et-Vilaine and Haute-Marne in order to produce biomethane by collecting several types of organic matter in the surrounding area. The energy produced can supply thousands of homes and therefore reduce CO2 emissions. At the same time, the Group is working to adapt its networks to inject biomethane, for instance, through the deployment of a temporary storage solution for biomethane when demand falls or the construction of back-up stations on the distribution and transmission networks that make it possible to transport local biomethane surpluses to other regions. At the end of the chain, efficient, low-carbon solutions (such as hybrid heat pumps for heating or high-performance engines for land and sea mobility) are helping customers green their consumption.

dedicated to hydrogen

(of which 270 GWh as from 2025)

See HyPSTER and HYGreen projects underway

+100

hydrogen charging stations (of which 50 as from 2025)

Project underway with CERTAS

4 TWh

of biomethane produced

by ENGIE in France

2021 results: 0.33 TWh

40 TWh

of biomethane production

injected into ENGIE's networks in France

2021 results: 6 TWh

A strategic partnership for the decarbonization of maritime transport

The CMA CGM Group - a world leader in maritime transport and logistics - and ENGIE have entered into a long-term strategic and industrial cooperation on projects to produce low-carbon fuels. The goal is to ensure the development of a synthetic methane production and distribution chain that can benefit the maritime transportation sector. An initial project for the production of liquefied biomethane (bioLNG) dedicated to maritime transport has already been initiated at the Marseille Maritime Port Authority, and other industrial projects are in the pipeline. The partnership will facilitate the pooling of knowledge and R&D efforts, particularly in key technologies such as carbon capture and green hydrogen production. Today, liquefied natural gas (LNG) reduces sulfur oxide emissions by 99%, fine particle emissions by 91% and nitrogen oxide emissions by 92%.

GREEN GASES NOTEBOOK

04 I GREEN GASES NOTEBOOK

Adapting networks

The development of methanization units in France is accompanied by the development of injection points on the network, leading gas distribution and transport networks to adapt their services and methods of operation: taking charge of the operation and maintenance of the injection stations, creating backflows to the transport network in order to unload distribution zones that may be saturated, adapting daily balancing and storage management. Furthermore, the production of hydrogen on an industrial scale requires the development and planning of future transport and storage networks. ENGIE is committed to the European H2 Backbone initiative and is supporting the deployment of a network

of nearly 40,000 km of hydrogen networks in 21 countries, two-thirds of which would be made up of existing networks that have been repurposed. This vision is already taking shape through the MosaHYc pilot project developed in the Moselle region, which aims to convert two existing gas pipelines to transport pure hydrogen so as to guarantee a secure supply for mobility use (trains, buses, cars, trucks) and industrial purposes. Other R&D projects currently being deployed, such as HyPSTER and Hygreen, aim to experiment with hydrogen storage in salt cavities on sites previously used to store natural gas.

2021 KEY FIGURES

351

biomethane injection stations

operated by the Group's networks

in France (147 commissioned in 2021)

95

new Natural Gas Vehicle (NGV)

refueling stations

connected in 2021 in France, 460 stations installed in total

GREEN GASES NOTEBOOK I 05

GREEN GASES NOTEBOOK

Industrializing the renewable gas solutions of the future

After producing the first cubic meters of green gas from wood in 2020 thanks to the Gaya demonstrator, ENGIE is now aiming to scale up the pyrogasification process. With the Salamandre project, the Group's objective is to build an industrial biomethane production unit in the port area of Le Havre as early as 2026 in order to gasify nearly 70,000 metric tons of non-recyclable waste per year and produce up to 150 GWh of renewable gas, the equivalent of the consumption of 670 city buses.

The Group is also developing the MéthyCentre, a demonstrator aimed at storing electrical energy in the form of renewable gas through hydrogen. Scheduled to be operational by the end of 2022, it will produce 50 kg of green hydrogen per day from renewable electricity - the equivalent of 15 to 20 full tanks of light vehicles - as well as methane gas that will be injected into the local gas network.

Based on the same model, the HyPSTER demonstrator will be commissioned in 2023 in a region close to the Zero Emission Valley in the Auvergne-Rhône-Alpes region and will be used to test hydrogen production and marketing (for mobility and industry) as well as the storage of hydrogen in saline cavities.

ENGIE is also developing several initiatives aimed at using hydrogen to decarbonize industry and to develop new industrial sectors:

• The Yuri project in Australia involves converting a fertilizer production plant into a green hydrogen production unit. It is scheduled to be commissioned in 2024.
• The HyNetherlands projectwill enable the deployment of an electrolyzer to produce renewable hydrogen for industry and heavy mobility in the Netherlands from 2025.
• The Masshylia project aims to develop, build and operate one of the largest renewable hydrogen production sites in France in the South-Provence-Alpes-Côte d'Azur region.
• The HyEx project in Chile aims to power an ammonia plant with green hydrogen by 2025.

To further scale up low-carbon and renewable hydrogen projects, in 2021 ENGIE announced a partnership with Equinor, Norway's leading energy provider, to explore the development of low-carbon hydrogen value chains in Belgium, the Netherlands and France.

Drive and support the changes required for the development of renewable gas

Europe and France have set ambitious carbon-neutrality	biomass potential that can now be put to good use to
targets for 2050. Considering that an all-electric energy mix	produce biomethane. This will green a number of uses,
would lead to significant additional costs and would not	including industries that are difficult to electrify. In a circular
guarantee security of supply, especially during peak periods,	economy, this local resource will not only provide secure
ENGIE is calling for a more balanced alternative in which the	supply at competitive costs but also positive externalities
decarbonized or low-carbon (CCS) gas vector will continue	for employment and farming. In the medium term, synthetic
to play an essential role. France, for example, has significant	gases and hydrogen will complete this energy mix.

Interview with Edouard Sauvage,

Executive Vice President in charge of Networks activities

What are the main objectives of the Networks GBU in 2022?

Our priority in 2022 will be to ensure the safety of our employees and any third parties working for the Group, as well as the safety of our property, at all Group entities. Our other primary objective will be to guarantee the operational and financial performance of our electricity and gas networks. In France, we are actively preparing the future of our gas networks by developing renewable gas sectors and promoting the key role of gas and gas networks in achieving the energy transition. Lastly, in Brazil, ENGIE will continue the construction of its electric transmission lines.

What were the key achievements of the Networks GBU in 2021?

We should note, first of all, that despite the impacts of the health crisis, we maintained a high level of operational and financial performance in our gas networks, both in France and abroad.

Using new technologies to reduce methane leakage

ENGIE is involved in a European scientific project whose objective is to improve knowledge and the use of new technologies in order to quantify methane emissions in networks and thereby bolster actions to reduce these emissions. 14 European gas network managers and gas associations are involved in the project coordinated by the European Gas Research Group (GERG) and ENGIE is present via GRTgaz's Research and Innovation Centre (RICE), which has identified the most promising technologies to be tested. In addition to on-site measurements, as close as possible to the equipment, these new remote measurement technologies aim to quantify the overall emissions of a geographical area and give an overall assessment. Embedded in drones, moving vehicles on the ground or in the air, or installed on site, 12 different technologies are being tested to assess their accuracy and reliability. This collective project illustrates the efforts being made by gas operators to significantly reduce methane emissions in order to contribute to short-term climate change mitigation and reinforce the environmental value of gas and gas networks in the energy transition.

In addition, we continued to prepare the future of our gas networks in France. We took many actions to promote and scale up the biomethane sector. As such, we should applaud the fact that, at the end of December 2021, France had 351 units in production for a capacity of 6.2 TWh, two years ahead of the target set by the PPE. We also helped our customers with ambitious projects, as demonstrated by the signing of a partnership agreement with CMA-CGM to support the decarbonization of maritime transport through the development of synthetic methane and bio- LNG. We pursued our innovation efforts as well, with the inauguration of GRTgaz's R&D platform (FenHYx) and demonstration projects for the conversion of our gas networks to hydrogen (MosaHYc, HYpster, Jupiter 1000, etc.).

Lastly, we continued the construction and commissioning of our 2,800 km of electric transmission lines in Brazil (Gralha Azul and Novo Estado projects).

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