Natural Gas: Navigating Policy & Sustainability

Rinnai Director Chris Goggin reviews UK Natural gas policy and discusses long and medium-term sustainability. Natural gas remains integral towards daily UK commercial operations, so what can current policy reveal when thinking of sustainability and how does energy security and market volatility influence these observations?

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Natural gas is the most dominant and familiar form of energy to most UK customers, and it has been accessed for decades. As climate change has stimulated multiple global governments to begin the phasing out of all gas-based activities, including the UK, what is the current policy and how sustainable is Natural gas usage. 

Although there are many benefits for Natural gas dispersal and usage, there are also several areas in which it can be viewed disparagingly. There are three focal points that have combined to create a turbulent reputation when thinking of natural gas: production, energy security, and market volatility.

Presently employed UK government direction regarding Natural gas production is complex. Although Natural gas is the most widely employed form of energy there are some disadvantages to widespread usage. Production is in an area in which the UK does not hold an advantageous position when analysed.

North Sea oil and gas drilling attracts companies who lease specific parts of the sea that are designated into “blocks.” North Sea oil and gas extraction occurs once areas located on the continental shelf have been surveyed via seismic imaging that bounces sound waves onto the seabed that produces an image, from which it can be attained whether oil and gas and reserves are present.

Once oil and gas is detected then extraction begins and when refined and finished an end-product becomes available to purchase on the international market. This is where the UK loses an advantageous position. Oil and gas extracted from UK territory cannot be sold by terms put forward by the UK government. The international market is dictated by supply and demand, geopolitical events, domestic governments, and other organisations such as OPEC. 

As the UK is a small player on the international energy market, the UK cannot enforce any price to North Sea oil and gas. The UK exists as a price taker on the global energy market, not a price maker.

Natural gas sustainability again perpetuates a negative effect upon the domestic energy security. Fossil fuels have been used as a strategic pressure point upon the customer base of opposing political ideologies twice inside a decade. Before the current Iran conflict a barrel of Brent Crude Oil was trading at $73, the cost is now ranging from $91 - $95 a barrel (Trading Economics). 

UK energy provision is satisfied with a huge contribution from fossil fuels. The UK is second behind Germany in consumption, in a European context, whilst also ranking second in gas-generated electrical power in 2024, with 30.3% of final electricity being produced through Natural gas. Market statistics published by trusted sources and media show that in 2024 there were 1.5 million gas boilers installed across all sectors in the UK, most of which were replacements.

Natural gas is integral to grid flexibility by fulfilling the role of a reliable baseload energy source. When alternative renewable energies such as solar or wind are low on production levels, it can be easily accessed to provide adequate power to UK customers. 

In order to escape the spike in costs related to fossil fuels on the global market, the UK and many other countries that are locked into domestic fossil fuel dispersal have to transition towards clean and renewable sources of energy that are not affected by external factors such as conflict or geopolitical posturing.                  

Market volatility and domestic energy security is a huge reason for Natural gas being considered unsustainable for long-term UK operations. Fossil fuels negate progress in UK energy security and fail to provide a stable marketplace for free–flowing frictionless trade.

In terms of environmental impact fossil fuels are regarded as non-sustainable, as they are responsible for around 80% of all UK emissions. Natural gas can however be used in less harmful ways. One notable example is when Natural gas is used to power hybrid heating and hot water systems. 

Hybrid technology accepts two separate forms of fuel or power, one would be either Natural gas or LPG for example, alongside solar thermal or a heat pump. Hybrid systems are designed to optimise factors such as outside temperature, current energy prices, property heating, and DHW demand. 

Rather than relying on one fuel source or technology such as renewable electricity and heat pumps, hybrid options instead use two forms of power or heat generators to complete daily functions inside commercial applications. 

Using two separate energies offers a range of benefits for UK retrofit projects. The first advantage is from a financial viewpoint: as electrical costs are higher than natural gas, using a system that accepts both renewable electricity and traditional fuel sources means that costs could be lower and more manageable when compared to an exclusively electrical system. From a capital expenditure perspective, the cost of a hybrid is often lower than a full electric system creating lower whole of life costs.

In terms of operational performance, a hybrid heating and hot water system combines two technologies that ensures energy efficiency whilst supporting operational consistency. A hybrid system will benefit from the incorporated heat pump or solar thermal technology during favourable weather conditions whilst using the auxiliary appliance during colder periods. This will optimise the strengths of each technological approach in separate weather condition circumstances; the addition of a combustion-based water heating technology will boost the renewable base load to ensure DHW performance.

A further benefit for the end-user is that both lifecycles of each technology is lengthened. As each technology does not have to apply full effort to satisfy demand, component and overall system longevity will be increased due to a lessening of required workload.

Natural gas although non-sustainable when thinking of domestic energy security, market volatility and production process, can still be called upon to provide less harmful usage especially in buildings with practical, economic and technical constraints.

Rinnai will continue to monitor and share all information that can affect product purchase options for UK customers. Providing a solid base of non-partisan energy news can improve the decision-making process of customers who wish to invest in a renewable, hybrid or natural gas heating and hot water system.

Rinnai offers clear pathways to lower carbon and decarbonisation
Plus customer cost reductions for commercial, domestic
And off-grid heating & hot water delivery and off-grid heating & hot water delivery

• Rinnai’s range of decarbonising products - H1/H2/H3 - consists of hot water heating units in gas/BioLPG/DME, hydrogen ready units, electric instantaneous hot water heaters, electric storage cylinders and buffer vessels, a comprehensive range of heat pumps, solar, hydrogen-ready or natural gas in any configuration of hybrid formats for either residential or commercial applications. Rinnai’s H1/2/3 range of products and systems offer contractors, consultants and end users a range of efficient, robust and affordable low carbon/decarbonising appliances which create practical, economic and technically feasible solutions. 

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• The Rinnai range covers all forms of fuels and appliances currently available - electric, gas, hydrogen, BioLPG, DME solar thermal, low GWP heat pumps and electric water heaters More information can be found on Rinnai’s website and its “Help Me Choose” webpage. 

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