259994 Phoenix Energy Responsible Business Report 2025.pdf

Responsible Business Report 2025

Phoenix’s key climate-related risks and opportunities are summarised below:

Category Risks

Timeframe

Opportunities Timeframe

Our Response

Transition (Policy & Legal)

Government policy and action does not support the use of the existing

Medium-term (10 – 20 years) / Long-term (20 – 50 years)

The Northern Ireland (NI) gas industry remains at growth stage, providing an immediate opportunity to reduce carbon in the short-term by switching from oil (by up to 50%). Natural gas opportunities, such as biomethane and hydrogen represent opportunities for Phoenix. Natural gas opportunities, such as biomethane and hydrogen represent opportunities for Phoenix. Energy transition provides a range of upstream investment opportunities for Phoenix e.g. Anaerobic Digestion plants,

Short-term (<10 years) / Medium-term (10 – 20 years)

Phoenix regularly engages with government bodies and other relevant stakeholders in relation to energy transition and on the role that gas network can play as part of the net zero carbon emissions solution – including bimonthly meetings of a Network Strategy Working Group. By continuing to feed into government calls for evidence and consultation processes, Phoenix help ensure that NI policy is shaped by industry evidence and examples of best practice in other regions. In addition, Phoenix continue to strengthen the environmental benefits of gas within the NI context for consumers and stakeholders by promoting the use of biomethane, along with exploring solutions for sectors like agriculture and transport. Phoenix work closely with all energy system providers, including the electricity sector to champion the merits of an increasingly integrated energy system and the utilisation of demand side consumer appliances such as hybrid heating systems. In 2024, Phoenix commenced feasibility studies and regulatory processes to facilitate the injection of biomethane gas into the natural gas network. These processes are now nearing completion and will support the first biomethane connections to the Phoenix network. By establishing an effective route to market for biomethane gas, Phoenix will support early adopter production and therefore the commercial appeal of green gas. With > 99% of Phoenix’s network being constructed with polyethylene pipe, that is compatible with the distribution of green gas (e.g. biomethane / hydrogen ), Phoenix is well placed to capitalise on the distribution of green gas. Phoenix are progressing a number of hydrogen readiness projects, including under Energy Strategy Funding from the Utility Regulator. Learning in this area is further supported by Great Britain trial data and outcomes. In 2024, Phoenix has undertaken several hybrid heat pump trials with private rented and social housing partners and is planning a large-scale NI-wide hybrid heating trial.

gas network as part of the net zero solution.

Connections to the existing gas network become less attractive to potential customers and existing customers may switch to alternative energy solutions, resulting

Medium-term (10 – 20 years) / Long-term (20 – 50 years)

in reduced investment potential for Phoenix.

Transition (Technology)

Readiness and feasibility of the existing gas infrastructure not forming part of the long term zero-carbon heating solution.

Medium-term (10 – 20 years) / Long-term (20 – 50 years)

Medium-term (10 – 20 years) / Long-term (20 – 50 years)

Commercial production of green gas (including

Medium-term (10 – 20 years) / Long-term (20 – 50 years)

biomethane and hydrogen) is not feasible.

biomethane production, hydrogen production / pipelines.

Demand for green gas solutions for the transport sector also provides potential sector/volume growth potential.

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