Insights

Natural Gas: A Step Toward Renewables

LNG tanker refueling at sunset

In the face of floods, fire and scorching heat, fossil fuels are often presented as an all or nothing choice, which despite the genuine alarm caused by climate change, isn't an adequate response to such a monumental issue. Going carbon free is the ultimate goal, but it's years away, making it hard to justify a rejection of safe and effective solutions for the interim.

A Rush To Zero Emissions

Climate change is of critical concern, but the rapidity at which we're attempting to leave all fossil fuels behind is somewhat worrying. Several states are now proposing policies that would prohibit or severely limit the use of natural gas in new homes. But the rush to zero emissions belies the fact that we're simply not ready to immediately switch to 100% renewables.

It will be years before clean energy alternatives, and the infrastructure that supports them, will get to the point where carbon-based fuels are by and large no longer necessary.

I'm particularly troubled when government entities commit to reducing the use of natural gas at all costs without considering a workable timetable. It's a short-sighted approach to the problem.

Trying to replace natural gas with renewables is an order of magnitude more immense than our current capacity can handle. Furthermore, the time horizon for rolling out all the necessary infrastructure to increase production is very long. If the shift is not gradual, we're going to create an energy gap for all of the households, businesses, and industries that are dependent upon existing power sources that are inexpensive and readily available.

Prices for fossil fuels are rising dramatically worldwide. The implications of the increase are that we may see energy shortages anyway, and we should be taking steps to address that now. From my nearly three decades of experience, the one thing I know for sure is that the energy industry responds quickly to market conditions.

We need the appropriate signals from the entities that regulate our industry and govern our infrastructure to allow for the increase in production of natural gas to meet the coming need.

A Cleaner Interim

In terms of its environmental impact, natural gas gets an undeserved bad rap. It's an invaluable commodity that's regulated by some of the strictest environmental controls globally. It's not only cleaner than other fossil fuels, it's far more reliable, and can quickly adapt to our nation's shifting demands.

Natural gas is also cost effective, consistently meeting the challenge of producing power at an affordable rate, while easily scaling-up when we need to keep the lights on. It could be an essential component to the grid when demand is high, and when weather dependent resources, like wind and solar, are underperforming or unavailable.

Recent moratoriums on the development of new gas properties may be a push for less reliance on natural gas, but usage is an ongoing factor; we need more energy during colder months.

Utilities should respond to user needs by expanding gas service, not reducing it. We have to consider supply availability as well. There's lots of gas out there but energy companies have to drill for it.

Drilling comes with a lot downsides, but over the last ten years shale has been a big contributor to an increased availability of domestic natural gas. The US is only one of four countries producing this resource, and we've expanded production to the point that we're exporting liquified natural gas to other countries. If we don't drill, we can count on shortages.

By supporting government incentives that encourage natural gas exploration, energy companies will be able to maintain a consistent supply for both domestic use and export.  Sustaining and improving our natural gas infrastructure has also had an unexpected benefit – a decreased dependence on coal.

Decreased Carbon Emissions

According to the US Energy Information Administration, over the past 15 years, the US energy mix has moved away from coal and toward natural gas and renewables, which has  lowered CO2 emissions.

In 2019, the US electric power sector produced 32 percent less CO2 than was produced in 2005. Coal emits significantly more CO2 than natural gas. When paired with efficient generators to generate electricity, natural gas can produce one-half the amount of carbon emissions as coal. A shift from coal to natural gas has resulted in those lower emissions.

Even if we were to continue to cut back on natural gas extraction though, it won't change the fact that the US is producing and exporting coal on the international market. Any buildup in coal production actually creates more environmental damage, and unfortunately, US coal exports have been trending upwards.

The US is offsetting China's coal shortage, as well as that of much of Europe. By reducing our coal output and increasing investment in the cleaner resource base, including natural gas, we'd be course correcting while also assisting other countries in their transition toward renewables.

Driving Innovation: From Trash to Gas

The continued need for natural gas is also driving innovation. One of the greatest culprits of methane emissions are landfills across the US.  According to the EPA, pound for pound, the comparative impact of methane emissions to the atmosphere is 25 times greater than CO2 over a 100-year period.

Traditionally, wells have been drilled into landfills to collect the methane and prevent it from being released directly into the atmosphere. After collection, the methane was burned off. There have since been advancements in recent years as some power companies have installed generators that not only capture the methane, but also use it to produce electricity.

A more recent trend is to use the landfill gas as a transportation fuel known as compressed natural gas (CNG).  Unprocessed landfill gas isn't of pipeline quality, but processing facilities are being built to remove impurities from the fuel to produce renewable natural gas (RNG).

The result is pipeline quality natural gas -- a renewable resource that's injected into the extensive natural gas distribution infrastructure for delivery to CNG end users. That said, the volume of RNG produced is a very small percentage of total US natural gas production and RNG is largely subsidized and supported by clean energy tax credits.

But the fact is methane is being captured, and emissions eliminated. Energy companies are creating a valuable resource that reduces methane emissions and uses the fuel for transportation.

Renewable Biomethane

Initiatives are also being developed to capture methane from dairy and pig farming operations. Much like the landfill gas, this renewable biomethane output is currently low volume, and the process is largely supported by tax credits. While its potential is currently unrealized, methane emissions from industrial farms could be significantly reduced and in turn produce a viable source of RNG.

We're in unprecedented times, but we can't ignore the complexities of the evolving energy space. In the interim, as we begin to phase out fossil fuels, we need to take a long-term look at how we'll survive and thrive.

Utilities, manufacturers, and millions of home and small business-owners have come to rely on affordable natural gas. The energy industry wants policy makers to regard this resource as a necessary step toward mitigating climate change.

It's safe and abundant and will reduce the need for large and immediate investments in the country's energy grid. Allowing natural gas to fill in the gaps as we journey toward a renewable future is not only pragmatic, it's our safest and most reliable solution.

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by Ted Lenart, Vice President, Gas Services, PFES

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Date
April 24, 2024
Category
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