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Burning gas to produce electricity is “ridiculous,” says Enel, CEO of power giant Enel.

Eneru CEO Francesco Stares shot in 2019. In an interview with CNBC on May 24, 2022, Stares said, “We can produce better and cheaper electricity without the use of gas.”

Giulio Napolitano | Bloomberg | Getty Images

CEO of an Italian power company Eneru He questioned the ongoing benefits of using gas to produce electricity, telling CNBC that it was “ridiculous” and that cheaper and better alternatives were available.

Francesco Stares spoke with CNBC’s Steve Sedgwick at the World Economic Forum, confirming the names of both Libya and Russia, and discussing where Europe has been procuring gas for years.

Russia was the largest supplier of oil and natural gas to the EU last year. According to Eurostat..The Brock is now trying to pull himself away from Russian hydrocarbons Following the country’s invasion of Ukraine.

“I think this is a big awakening call,” said Stares. “Burning gas to produce electricity is ridiculous today, so” too much gas “is used in a ridiculous way. It was broken. “

Instead, Stares said there were more attractive options.

“We can produce electricity better and cheaper without the use of gas … Gas is a valuable molecule and we should leave it for the purposes it needs,” he said. Added.

He said these industrial uses include chemical applications, paper industry, and use in the manufacture of ceramics and glass.

“Reserve gas for them,” said Stares. “Stop using gas for heating and stop using gas for power generation when there is a better alternative.”

Alternatives to power generation include, among other things, wind and solar power.

According to a recent report from EmberFossil fuels, a think tank focused on moving the planet from coal to what is called “clean electricity,” accounted for 37% of the EU’s electricity generation in 2021.

Analyzing the above figures, fossil gas generation generated 18% of EU electricity, the lowest level in three years, according to Ember’s report released in February. Renewable energy accounted for 37% last year, and nuclear power produced 26% of the block’s electricity, according to Ember.

Throughout the Atlantic Ocean, US Energy Information Administration preliminary figures show that in 2021, natural gas was used in 38.3% of US utility-scale power generation.

Read more about energy from CNBC Pro

In Stares’ view, changes are taking place in Europe, where the EU wants to be carbon-neutral by 2050. “Stupid” use, “he said.

“So it’s no longer wise to burn it to generate electricity, there’s a better way,” he said. “It’s not wise to burn it to warm our house, there is a better way.”

The Enel Group, whose largest shareholder is Italy’s Ministry of Economy and Finance, has announced that it will stop producing gas by 2040. It also plans to withdraw from the retail gas market in 2040.

Stares was asked if focusing on the transition to Net Zero and the use of more renewable energy in Europe would be supercharged by the current crisis.

“I think so,” he said. “In addition to economics, in addition to climate, now [a] Supply problem security. ”

“That is, there is definitely an acceleration because there is a combination of three elements instead of two,” he added.

He said it could take a couple of years, but “you will definitely see dents in gas consumption in the future.”

Burning gas to produce electricity is “ridiculous,” says Enel, CEO of power giant Enel.

Source link Burning gas to produce electricity is “ridiculous,” says Enel, CEO of power giant Enel.

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