The dilemma of natural gas

Original title: Gassen i klemme

The Danish government has adopted a long term strategy for phasing out fossil based fuels of the economy. This entails a fossil free energy sector in 2035 and a fossil free economy in 2050. Copenhagen Economics was commissioned by HMN Naturgas to assess the implications for society of phasing out gas rapidly. We argued that rapid phasing-out of natural gas was not only bad for our client but also for society as a whole.

To arrive at these conclusions we constructed small models for total cost of energy in various scenarios and for the utilisation of gas infrastructure and the cost associated with this. We concluded that:

Copenhagen Economics made a solid report on welfare effects. The findings made by Copenhagen Economics were very useful in our subsequent work with the government authorities
Kåre Clemmesen, CFO - HMN Naturgas