Summary

1. Our gas distribution role
2. Who are GRDF’s stakeholders and partners?
3. Renewable gas producers
4. Making our network safe
5. Innovation and R&D
6. R&D programmes for more sustainable development
7. Gas mobility solution: accelerating road mobility transition thanks to BioNGV and NGV in France’s road transportation

Gas distribution is a public service mission under the combined authority of the French State, regional and local authorities, and the French Energy Regulatory Commission (CRE). GRDF’s activities are governed by a Public Service Contract (PSC), renewed every five years with the French State.   

GRDF’s key commitments to the PSC:   

• Safe gas supply and public service continuity  
• Network and facility safety 
• Relationship quality with all customers and stakeholders 
• Balanced regional and local development 
• Ecological transition via renewable gases 
• Innovation, research, and development

Key figures:  

• Injection anaerobic digestion sites: 685  
• Of which connected to the GRDF network: 575  
• Total installed biomethane capacity: 12.33 TWh/year  
• Heated new home equivalent: 3,081,750  

Reference period: May 2024

Our teams are on hand every day, not only to make sure gas is always available for you, but also to connect new customers to the natural gas network. As distributors, our main missions are to:  

• Bring gas to your home. 
• Maintain and develop the natural gas distribution network. 
• Connect new customers to the distribution network.  
• Read your natural gas consumption twice a year. 
• Transmit your consumption data to your gas supplier for invoicing. 

Our gas distribution role

GRDF’s primary role is to ensure gas delivery to its residential, commercial, and industrial customers under the best possible conditions, prioritizing quality, safety, and cost. We manage a nationwide network that brings essential energy to our 11 million customers. GRDF was founded in 2007 with the deregulation of the French energy market. Our public service mission is to distribute natural gas on behalf of municipalities and other local authorities. GRDF is an independent subsidiary of the ENGIE Group.   

We maintain the network (pipes, connections, valves, etc.), and carry out all necessary emergency work 24/7 in the event of any disruption in supply or suspected leaks. We are also responsible for meters and, since 2016, have fully rolled out smart meters for all our customers.  

The final part of our public service mission is to facilitate the connection of renewable gas plants and promote the use of new gases by all consumers in France to achieve a sustainable energy mix. 

Transmission and distribution operators, installers, and suppliers: what are the differences?

• A gas Transmission System Operator (TSO) is responsible for managing all or part of the high-pressure gas transmission network, normally from entry points (LNG terminals, cross border pipes) to the distribution networks. The gas is transferred to the distributor at a maximum pressure of 25 bar.   
• A Distribution System Operator (DSO) operates the network from the transmission grid interface up to the end-customers.  
• An installer sets up gas equipment used by consumers.  
• A supplier purchases the gas that circulates in the network and sells it to end-customers (like a retailer purchasing wholesale goods to sell on to consumers). Suppliers are responsible for signing contracts with their customers, invoicing them, and collecting their payments.   

Who are GRDF’s stakeholders and partners?

Energy suppliers

Energy suppliers purchase the gas wholesale and sell it to end-customers. They design offers and services in a competitive retail environment. There are more than 50 natural gas suppliers in France, all complying with a framework of strict competition laws. GRDF’s public service mission is to provide all these operators with access to the grid. We work closely with them to ensure a secure, reliable, and safe supply ensuring impartiality of treatment for all players.   

French energy regulator

GRDF is under a legal requirement to carry out its operations fairly and impartially. The French Energy Regulatory Commission (Commission de Régulation de l’Énergie or CRE) is an independent authority that ensures fair play for all: it offers the end-customer protection from abusive pricing by suppliers, and protects suppliers from unfair treatment by DSOs and TSOs. It has the power to sanction unscrupulous practices. In practice, GRDF and other players work closely with the CRE, and operate their activity independently with impartiality and transparency.  

Local authorities

The distribution grid is managed and operated by GRDF on behalf of local authorities who own the infrastructure. Local authorities sign concession contracts with GRDF based on detailed requirements in terms of security, investments, services, and performance. We guarantee the level of performance throughout the duration of the contract.   

Renewable gas producers

Since 2011, new stakeholders have emerged: biomethane producers, who are mainly farmers. GRDF is committed to supporting local gas production through the development of anaerobic digestion. We are mobilized with farmers and regions to support the development of biomethane and the vital role of renewable gases in the ecological transition.  

In recent years, biomethane production through anaerobic digestion has grown exponentially, reaching about 608 production sites with injection in 2023 and 680 in 2024. 

Making our network safe

GRDF is responsible for building, operating, and developing this gas infrastructure and ensuring its economic and industrial performance. We are committed to optimizing safety for our 11 million customers every day, and managing a large-scale gas distribution network of more than 200,000 km of pipes that run through more than 9,000 cities, towns, and villages. Network safety is the cornerstone of our activity: while ensuring supply, quality, and protecting the environment, our top priority is to guarantee the safety of people and assets. To reach this goal, we are continuously monitoring the gas network. Over the years, we have developed an industrial strategy built on a sustained level of investment and a rigorous programme of monitoring and maintenance. This requires unfailing attention to ensure safety and security at all phases of installation and operation.  

Certified network performance

Our highly innovative natural gas infrastructure is designed, built, and operated in full compliance with regulations. During each step, GRDF rolls out a pragmatic feedback process and continuous improvement on an ongoing basis.  

Our construction work industrial policy focuses on three key principles:   

• Rigorous checks on technical quality and regulatory compliance of all new works  
• Reciprocal commitments of quality and performance with subcontractors  
• Development of innovative technologies 

Enhanced monitoring

Each year, GRDF conducts inspections on 70,000 km of pipes. The task is performed by teams using Network Monitoring Vehicles (NMV), which detect and locate any potential leaks from underground pipes. Additionally, GRDF technicians physically carry out preventive actions daily, using a portable device connected to a sampling rod. Along with daily network monitoring, systematic checks are conducted after any event that could potentially cause deterioration.  

GRDF’s geo-positioning system makes it possible to precisely locate all the networks and connections throughout France. The company is investing heavily in the digitalization of the mapping of all new natural gas installations and improving the reliability of the existing mapping system. Three hundred GRDF cartographers perform daily updates on the network’s status.    

Working closely with contractors and network operators

Preventing damage to the natural gas network caused by local construction is also essential. We use every resource available to coordinate our safety efforts with all parties involved (contractors, public works companies, and network operators). Central to this approach are training programmes and standard agreements intended to improve the safety not only of employees and residents, but also of assets.   

Network safety is central to our corporate strategy. GRDF invests €1 million in natural gas network safety every day. This priority expenditure item is aimed at:  

• Modernizing the network (50%)  
• Providing maintenance and repair services for our customers (25%) 
• Monitoring the network and training professionals in their specialized areas (25%) 

A modern and innovative network

GRDF is increasingly integrating technologies for a greener, safer, and more competitive energy system. GRDF invested €43 million in research and development (R&D) projects between 2016 and 2019. During 2020-2023, we increased our R&D budget to approximately €63 million.   

Our R&D programmes are geared to topics that are strategic for our development. Our research orientations are:   

• Development of renewable gas, especially anaerobic digestion.   
• Smart gas grids and smart gas meters as key energy transition enablers throughout regions.  
• Diversification of gas usage such as gas mobility and new gas heating solutions.   
• Development of new technologies and methodologies for a safe, sustainable, and digital distribution network.  

Lastly, we carry out emergency work 24/7 in the event of any disruption in supply or suspected leaks.  

Innovation and R&D

GRDF is deeply involved in research and development work by promoting gas as a key element in the energy transition and our vision for 2050.   

GRDF is leading the transition to a 100% carbon-free gas network by 2050

Against the backdrop of a rapidly changing energy landscape, research and development (R&D) is a sine qua non for providing an efficient, quality service to customers, for developing essential operating tools for managing the gas grid safely, and for taking a leading role in decarbonizing gas.  
  
Our R&D programmes are geared towards areas of research that are strategic for our development and focus on smart gas grids, renewable gases, grid safety and operational excellence, as well as flexibility, and safety of customers’ installations.   

R&D programmes for more sustainable development

GRDF is developing the operating tools needed to manage a gas grid containing an increasingly large percentage of biomethane and H2. To achieve these critical transformations, our R&D focuses primarily on three key areas:  

• Customising our gas infrastructure with technical precision to allow the injection of renewable gases (biomethane, synthetic methane and H2).  

• Innovative technologies to facilitate the emergence and development of renewable gas production, advancing through collaborating with industrial partners, and playing a catalyst role.  

• Smart gas grid enabling real-time network management that provides the flexibility needed to operate a network containing significant volumes of renewable gases (of varying qualities) and an increasing number of injection points.  

R&D on core business areas is maintained, necessary for the key issues of safety, reduction of methane emissions, and performance.  

Collaboration with INRAE (French National Institute of Research for Agriculture, Nutrition and Environment)  

• CEA : Together we support the emergence of a hydrothermal gasification demonstrator as part of the Gazhyvert 2 project. This technology enables biomethane from liquid biomass such as sludge from wastewater treatment plants. The total potential for renewable gas production in France by 2050 is 420 TWh. Hydrothermal gasification could account for up to 50 TWh of this production, alongside other technologies such as anaerobic digestion (which will remain the majority in volume), power-to-gas, or pyro-gasification.  

Gas mobility solution: accelerating road mobility transition thanks to BioNGV and NGV in France’s road transportation

As a public service distributor, GRDF commits daily to the energy and ecological transition of regions through the decarbonization of road, rail, and waterway transportation.  

Interest for BioNGV and NGV

NGV is on average 20% cheaper than diesel fuel. These fuel savings, coupled with tax benefits on vehicles such as enhanced depreciation allowances ranging from 120% to 160% for the acquisition of vehicles with a Gross Vehicle Weight Rating (GVWR) exceeding 2.6 tons, as well as total or partial exemption from vehicle registration tax, enable the initial investment to be amortized and result in savings over the lifespan of the vehicles.  

BioNGV is locally produced through the anaerobic digestion of organic waste including agricultural and food waste. This biomethane is then used for mobility purposes. In 2023, 1,350 GWH of this renewable gas was consumed for the transportation of people and goods, accounting for 20% of total natural gas consumption.  

BioCNG accounts for 40% of CNG consumption.   

With the ability to reduce CO2 emissions by 80% compared to diesel vehicles, BioNGV provides a solution to the challenge of decarbonizing transportation. Furthermore, amidst energy supply tensions, it also addresses sovereignty concerns.   

Challenges and Progress

The transportation sector, vital to our economy and modern society, faces numerous environmental, economic, societal, and regional challenges. It must meet the increasing demand for mobility and logistics while drastically reducing its environmental impact. Currently, nearly all cities with over 200,000 inhabitants have NGV buses or waste collection vehicles, and nearly half of all buses sold in France run on BioNGV/NGV, along with one in four waste collection vehicles. There were 11,000 BioNGV/NGV HGVs operating in France in 2023.   

Today a NGV vehicle is around 20% more expensive than its fossil fuel equivalent but thanks to state financial aid, this expense can be mitigated.   

Future Prospects : As France finalizes criteria for the first call for projects regarding non-injected biomethane production for use as fuel (BioNGV), and with recent announcements from Scania and Iveco promising more powerful engines and increased autonomy, the BioNGV/NGV sector shows promise. Furthermore, with the network of refuelling stations expanding, including 85 new stations commissioned in 2023 on our network, bringing the total to approximately 350 stations open to the public, the future of BioNGV/NGV appears increasingly renewable. In addition, we currently have around 350 private NGV /BioNGV stations. This alternative fuel, capable of reducing CO2 emissions by 80% compared to diesel vehicles, offers an effective solution to the challenge of decarbonizing transportation. In the coming years, in response to the imperative to reduce carbon emissions, BioNGV/NGV has huge potential to play a role in the net-zero goal. Today, BioNGV is the energy source with the most favourable economic ratio for energy production and greenhouse gas emission reduction.  

Studies are being carried out to assess the feasibility of using BioNGV in waterway and rail transportation. The first prototype has already been produced for use on railways and, so far, it has been a real success. This shows we can now play a role in further decarbonizing our different modes of transportation.   

Map of BioNGV Refuelling Stations (French version)  

• https://www.grdf.fr/acteurs-gnv/stations-service-gnv/trouver-station-gnv/carte  

TCO assessment (French version)  

• https://www.grdf.fr/acteurs-gnv/vehicules-roulant-gnv/realisation-projet/tco-vehicule-diesel-gnv  

Vehicle Catalogue (French version)  

• https://www.grdf.fr/acteurs-gnv/vehicules-roulant-gnv/choisir-vehicule/catalogue-vehicules-gnv  

Development of the BioNGV solution for other types of vehicles 

BioGNV in rail transportation :  

The gas sector in rail transportation plays a crucial role in decarbonizing non-electrical rails by providing a cleaner alternative to diesel engines. In particular, BioNGV offers significant advantages, including reduced greenhouse gas emissions and improved air quality, as it is derived from renewable organic sources.   

Faced with decarbonization challenges, rail transportation is turning to emerging solutions such as hydrogen trains and BioNGV. As France has the greatest potential for biogas production and ambitious goals, particularly for biomethane, several French regions could greatly benefit from BioNGV solutions.  

This shift is supported by numerous studies in the energy field, highlighting the potential for gas-powered trains to contribute to a more sustainable and environmentally friendly rail network.   

Les perspectives du train BIOGNV en France - La librairie ADEME

BioNGV in waterway transportation :  

BioNGV offers a host of advantages:  

• Low noise pollution  
• Energy savings  
• Reduction of road traffic and CO2 emissions  

French waterway transportation includes:   

• 6,700 km of network with 4,100 km used for freight transportation  
• 1,620 operating French boats of which 320 are for tourism  
• 1 TWh of annual consumption of the sector in nonroad diesel (NRD)  

GRDF is committed to reducing air pollution through BioNGV in the sector of waterway transportation through two main solutions:   

• Through retrofit, by transforming already-existing diesel boats to 100% or hybrid BioNGV motorization.   

• By developing a 100% or hybrid BioNGV motorization on new boats.  

Thanks to BioNGV/NGV, three options are available for waterway transportation: anaerobic digestion, 100%, and hybrid BioNGV.   

BioNGV / NGV has the following advantages:   

• Low noise pollution  
• Energy savings  
• Reduction of road traffic and CO2 emissions