Zero Emissions Day
September 21, 2023
Research shows that decarbonizing natural gas is important to reducing emissions cost effectively, while maintaining a stable energy supply. In honor of Zero Emissions Day, we look at 3 areas where natural gas companies can invest in reducing emissions and future-proofing their businesses for the clean energy transition.
- Invest in carbon capture and transport
A 2022 report by the Electric Power Research Institute found that the cost of decarbonizing the US electric sector could be reduced by $300 billion if natural gas fired power plants came equipped with carbon capture technology. As natural gas companies look for ways to decarbonize existing production sources, the Inflation Reduction Act (IRA) can help finance carbon capture technology. The Inflation Reduction Act includes incentives for carbon capture and sequestration projects through an expanded 45Q tax credit. For more information on how natural gas companies can benefit from the IRA check out this byline by our CEO, Freddie Sarhan. In the past year, several energy companies like TVA and Chevron have invested in carbon capture technology.
Additionally, midstream natural gas companies can consider investing in carbon pipelines to transport carbon from capture sites where sequestration and utilization is not collocated with capture.
- Invest in supplements to natural gas that utilize existing infrastructure
Green hydrogen, produced with electricity from a renewable source and water, can be transported through existing natural gas infrastructure. A study conducted by the California Public Utility Commission in 2022 found that hydrogen can be blended up to 5% with natural gas and transported through existing infrastructure. In test scenarios, mixing up to 20% hydrogen with natural gas has proven possible without impacting pipelines.
- Invest in renewable natural gas
Renewable natural gas, or natural gas derived from organic waste material, is another area where natural gas companies can and are investing in decarbonizing their overall portfolios. The Inflation Reduction Act has provided incentives for investment in renewable natural gas, which can help offset its substantially higher cost compared to natural gas. Several applications already exist for RNG. RNG can be used in gas-fired power plants, to heat homes, and even as a fuel – for example, Walmart uses RNG to fuel their owned and operated fleets.
Of course, these are just a few areas where natural gas companies can invest in all areas of the supply chain to help decarbonize natural gas – a power source that will be vitally important through the energy transition and in a future net-zero energy economy.
