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There are three fossil fuels we must stop burning if we are to save our planet: coal, oil, and methane (aka “natural”) gas. Coal is declining precipitously. Scientists think we hit peak coal in 2013, and American use of coal has fallen by over 50% in the last 10 years (though, we need to quickly nail this coffin closed considering how dirty and polluting coal is). Oil is seeing the writing on the wall as major automakers commit to electric vehicles. Many think 2019 may have been the year we hit peak oil, and EVs are expected to make the internal combustion engine a “historical technology” by 2040. The faster we historicize petroleum, the better, so please buy that electric car or e-bike today. 

Natural gas (aka methane) now comes into sight as the next fossil fuel we need to banish in the quest to rescue ourselves from the most catastrophic climate catastrophe. Burning methane is currently responsible for nearly 25% of all carbon emissions in the US, and its use is growing. Methane is also deeply embedded in many of our homes, and this will make it a challenge to extricate. We aren’t anywhere near hitting peak natural gas usage on our current trajectory.

But, as of recently, some American cities, mostly in California, have recognized the need to eliminate gas and slowly get us off the fossil sauce. In 2019, these leading cities did something that had never been done in the history of our species — they started banning future use of methane in new construction. The idea has been to stop digging a hole that we have to quickly climb out of, so they legislated that no new homes or buildings should be built with methane hookups. This will avoid costly retrofits later. The city-led ban began in California, has reached over 50 cities, and is spreading up the West Coast like a good kind of wildfire. 

Enter “Renewable” Natural Gas

Any entrenched industry will fight with all its might not to disrupt revenue streams, regardless of the effects of their products on humanity (see: oxycontin and tobacco). So, it is to be expected that methane peddlers will spend the next crucial decades resisting efforts to ban their product. They’ll use lots of arguments to slow humanity’s inexorable push towards a fossil fuel future. The most ingenious/insidious one that we must quickly debunk is that their carbon polluting fuel is actually clean or has the potential to become so.

Enter, stage right, “renewable natural gas,” or RNG, a brilliant buzzword for a product that companies are counting on consumers to believe in, to continue with business mostly as usual. Renewable natural gas is methane that comes from biological sources like human and cow sewage or landfills. It differs from current methane, which is fracked from the earth’s interior, some of which escapes through pipes, while the rest is burned, adding to our dangerous warming blanket. RNG harnesses methane being created anyway and thus, doesn’t add new layers to our greenhouse problem. A group of nonprofits in my region just released an in-depth look at renewable natural gas and the numbers aren’t good. 

How to Make Renewable Natural Gas — Anaerobic Digestion and Gasification

Before we can examine how much RNG our society will be able to realistically produce, let’s briefly talk about the two ways to make renewable natural gas. Even though, as we’ll shortly see, RNG won’t come remotely close to meeting our current gas demand, it still has the potential to be an important, lower-carbon tool in reducing the emissions of hard-to-decarbonize applications (like industry). 

The first way to make RNG is through anaerobic digestion technology. This is a process where bacteria eat waste in an atmosphere that doesn’t contain oxygen (anaerobic). Sewage treatment plants and pig farms use this process. They gather fecal matter, bring bacteria to a specific temperature, do a lot of other magic in pipes, and out comes methane gas. Landfills are another source of this methane as wasted food and other fun stuff are eaten by bacteria underground and methane is created as a byproduct.

The second way to make RNG is through thermal gasification, which “uses energy to turn agriculture and commercial forest harvest residues” into something called Syngas. Syngas can then be converted to methane with more processing. According to a large survey by the State of Oregon, “There are currently no commercial-scale thermal gasification plants in the United States that convert biomass into methane. The existing plants produce syngas, which is burned and used to generate heat and electricity.” So thermal gasification is a potentially important, but unproven technology that should not make us believe that we can simply keep burning gas in our homes. 

How Much Renewable Natural Gas Could We Conceivably Produce?

In the 2018 Oregon study cited above, (which had many gas industry officials involved in its writing) researchers looked at what we could optimistically hope for from RNG production. The numbers aren’t good. The potential for anaerobic digestion is 4.6% while the potential for thermal gasification is 17.5% of current natural gas usage in the state. So RNG could potentially cover 20% of the methane gas we use today, assuming significant investments in technology and distribution systems that do not exist today – in other words and not anytime soon.Think about it. We could work our tushies off over the next couple, crucial decades, to try to decarbonize natural gas pipes, while the planet is heating up and wildfire smoke is crossing our country coast to coast, and after crucial time and work, we’d still be using 80% fracked, fossil natural gas. If that’s not backing the wrong horse, then I don’t know what is. 

Oregon’s numbers are similar to national numbers. Another study found that, nationally, we could hope for about 16% renewable natural gas, and again, this is far in the future and only if we invest heavily in RNG.

Compare that to electricity as a fuel, and you’ll see a stark difference. Right now, the national electric grid gets 20% of its power from renewables and 20% from nuclear, making electricity 40% carbon free. Biden wants to get to 100% by 2035. Oregon recently passed a law to get to 80% clean electricity by 2030 and 100% by 2040. Wind and solar are carbon neutral and are the cheapest and most installed forms of new energy generation. We have the roadmap and the tools to completely decarbonize electricity over the next 10–20 years and are doing so faster than anyone expected. Clean electricity is real, proven, happening and the horse we should be backing. 

Electrifying our house and capping our natural gas pipe was one of the best things my family has done for the climate.

Other problems with renewable natural gas

There are other significant problems with renewable natural gas which are highlighted in depth in this brilliant article by Laura Feinstein and Eric de Place. Renewable natural gas isn’t even zero carbon. It is true that it often comes from existing sources of methane, but often those sources of methane could be avoided. Take landfills for example. When we toss food scraps into landfills it creates methane. We could capture that methane to make renewable natural gas or we could compost the food scraps like many cities and nations do, and avoid making that methane in the first place and get the benefits of richer, healthier soil in our communities. Relying on renewable natural gas could thus lock us into wasteful, inefficient practices when other options exist. 

Another significant problem is that RNG costs a lot to make. A million BTUs of methane gas currently costs $3. The median cost for the equivalent amount of RNG is about 6 times that, at $18. Yipes! Imagine telling consumers that their gas bills are going to sextuple, and you’ll start to see how viable RNG is as a long term solution. 

Scratch the surface, and it’s easy to see how RNG meets the classic definition of a red herring; “something that misleads and distracts us from a relevant or important question.” There won’t be very much of it, and it’s going to be very expensive. Let’s not get sidetracked from real climate solutions. When our local methane suppliers use the word “renewable” to keep pumping fossils into our homes, we need to understand that this is at best a stalling tactic and a greenwash to distract from the dangers of methane gas. Let’s stay focused on more realistic solutions for heating our homes and addressing the climate crisis like electrification.

I’ll be co-hosting a free webinar with Electrify Now on “The Future of Natural Gas” on Wednesday, September 22. Register and get more information here

Check out this in-depth report on methane gas released by a coalition of 62 organizations recently. 

Related: Natural Gas Leaks Deadly For Trees (Video)

 

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AI could drive a natural gas boom as power companies face surging electricity demand

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AI could drive a natural gas boom as power companies face surging electricity demand

A chimney from the Linden Cogeneration Plant is seen in Linden New Jersey April 22, 2022. 

Kena Betancur | View Press | Corbis News | Getty Images

Natural gas producers are planning for a significant spike in demand over the next decade, as artificial intelligence drives a surge in electricity consumption that renewables may struggle to meet alone.

After a decade of flat power growth in the U.S., electricity demand is forecast to grow as much as 20% by 2030, according to a Wells Fargo analysis published in April. Power companies are moving to quickly secure energy as the rise of AI coincides with the expansion of domestic semiconductor and battery manufacturing as well as the electrification of the nation’s vehicle fleet.

AI data centers alone are expected to add about 323 terawatt hours of electricity demand in the U.S. by 2030, according to Wells Fargo. The forecast power demand from AI alone is seven times greater than New York City’s current annual electricity consumption of 48 terawatt hours. Goldman Sachs projects that data centers will represent 8% of total U.S. electricity consumption by the end of the decade.

The surge in power demand poses a challenge for Amazon, Google, Microsoft and Meta. The tech companies have committed to powering their data centers with renewables to slash carbon emissions. But solar and wind alone may be inadequate to meet the electricity load because they are dependent on variable weather, according to an April note from consulting firm Rystad Energy.

“Economic growth, electrification, accelerating data center expansion are driving the most significant demand growth in our company’s history and they show no signs of abating,”

Robert Blue

Dominion Energy, Chief Executive Officer

Surging electricity loads will require an energy source that can jump into the breach and meet spiking demand during conditions when renewables are not generating enough power, according to Rystad. The natural gas industry is betting gas will serve as the preferred choice.

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Natural gas prices year to date

“This type of need demonstrates that the emphasis on renewables as the only source of power is fatally flawed in terms of meeting the real demands of the market,” Richard Kinder, executive chairman of pipeline operator Kinder Morgan, told analysts during the company’s first-quarter earnings in April.

“The primary use of these data centers is big tech and I believe they’re beginning to recognize the role that natural gas and nuclear must play,” Kinder said during the call. Kinder Morgan is the largest natural gas pipeline operator in the U.S. with 40% market share.

Natural gas is expected to supply 60% of the power demand growth from AI and data centers, while renewables will provide the remaining 40%, according to Goldman Sachs’ report published in April.

Gas demand could increase by 10 billion cubic feet per day by 2030, according to Wells Fargo. This would represent a 28% increase over the 35 bcf/d that is currently consumed for electricity generation in the U.S, and a 10% increase over the nation’s total gas consumption of 100 bcf/d.

“That’s why people are getting more bullish on gas,” said Roger Read, an equity analyst and one of the authors of the Wells Fargo analysis, in an interview. “Those are some pretty high growth rates for a commodity.”

The demand forecasts, however, vary as analysts are just starting to piece together what data centers might mean for natural gas. Goldman expects a 3.3 bcf/d increase in gas demand, while Houston-based investment bank Tudor, Pickering, Holt & Co. sees a base case of 2.7 bcf/d and a high case of 8.5 bcf/d.

Powering the Southeast boom

Power companies will need energy that is reliable, affordable and can be deployed quickly to meet rising electricity demand, said Toby Rice, CEO of EQT Corp., the largest natural gas producer in the U.S.

“Speed to market matters,” Rice told CNBC’s “Money Movers” in late April. “This is going to be another differentiator for EQT and natural gas to take a very large amount of this market share.”

Natural gas market looks oversupplied right now, says EQT CEO Toby Rice

EQT is positioned to become a “key facilitator of the data center build-out” in the Southeast, Rice told analysts on the company’s earnings call in April.

The Southeast is the hottest data center market in the world with Northern Virginia in the thick of the boom, hosting more data centers than the next five largest markets in the U.S. combined. Some 70% of the world’s internet traffic passes through the region daily.

The power company Dominion Energy forecasts that demand from data centers in Northern Virginia will more than double from 3.3 gigawatts in 2023 to 7 gigawatts in 2030.

Further south, Georgia Power sees retail electricity sales growing 9% through 2028 with 80% of the demand coming from data centers, said Christopher Womack, CEO of Georgia Power’s parent Southern Company, during the utility’s fourt-quarter earnings call in February.

“Economic growth, electrification, accelerating data center expansion are driving the most significant demand growth in our company’s history and they show no signs of abating,” Dominion CEO Robert Blue said during the company’s March investor meeting.

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EQT shares over the past year.

The surging power demand in the Southeast lies at the doorstep of EQT’s asset base in the Appalachian Basin, Rice said during the earnings call. Coal plant retirements and data centers could result in 6 bcf/d of new natural gas demand in EQT’s backyard by 2030, the CEO said.

EQT recently purchased the owner of the Mountain Valley Pipeline, which connects prolific natural gas reserves that EQT is operating and developing in the Appalachian Basin to southern Virginia. EQT is the only producer that can access the growing data center market through the pipeline, said Jeremy Knop, the company’s chief financial officer.

“I think we are very uniquely positioned in that sense,” Knop said during the call. Rice said the Southeast will become an even more attractive gas market than the Gulf Coast later in the decade. EQT is planning to expand capacity on the Mountain Valley Pipeline from 2 bcf/d to 2.5 bcf/d. The pipeline is expected to become operational in June.

The level of electricity demand could help lift natural gas prices out of the doldrums.

Prices plunged as much more than 30% in the first quarter of 2024 on strong production, lower demand due to a mild winter and historic inventory levels in the U.S. By 2030, prices could average $3.50 per thousand cubic feet, a 46% increase over the 2024 average price of $2.39, according to Wells Fargo.

Grid reliability worries

Dominion laid out scenarios in its 2023 resource plan that would add anywhere from 0.9 to 9.3 gigawatts of new natural gas capacity over the next 25 years. The power company said gas turbines will be critical to fill gaps when production drops from renewable resources such as solar. The turbines would be dual use and able to take clean hydrogen at some point.

“We’re building a lot of renewables, which all of our customers are looking for, but we need to make sure that we can operate the system reliably,” Blue told analysts during Dominion’s earnings call Thursday.

Renewables will play a major role in meeting the demand but they face challenges that make gas look attractive through at least 2030, Read, the Wells Fargo analyst, told CNBC.

An all of the above strategy is the only thing that we see as the way to maintain the reliability and the affordability that our customers count on.”

Lynn Good

Duke Energy, Chief Executive Officer

Many of the renewables will be installed in areas that are not immediately adjacent to data centers, he said. It will take time to build power lines to transport resources to areas of high demand, the analyst said.

Another constraint on renewables right now is the currently available battery technology is not efficient enough to power data centers 24 hours a day, said Zack Van Everen, director of research at investment Tudor, Pickering, Holt & Co.

Nuclear is a potential alternative to gas and has the advantage of providing carbon free energy, but new advanced technology that shortens typically long project timelines is likely a decade away from having a meaningful impact, according to Wells Fargo.

Robert Kinder, chief executive of pipeline operator Kinder Morgan, said significant amounts new nuclear capacity will not come online for the foreseeable future, and building power lines to connect distant renewables to the grid will take years. This means natural gas has to play an important role for years to come, Kinder said during the company’s earnings call in April.

“I think acceptance of this hypothesis will become even clearer as power demand increases over the coming months and years and it will be one more significant driver of growth in the demand for natural gas that will benefit all of us in the midstream sector,” Kinder said.

Environmental impact

Any expansion of natural gas in meeting U.S energy demand is likely to be met with opposition from environmental groups who want fossil fuels to be phased out as soon as possible.

Goldman Sachs forecast carbon emissions from data centers could more than double by 2030 to about 220 million tons, or 0.6% of global energy emissions, assuming natural gas provides the bulk of the power.

Virginia has mandated that all carbon-emitting plants be phased out by 2045. Dominion warned in its resource plan that the phase out date potentially raises system reliability and energy independence issues, with the company relying on purchasing capacity across state lines to meet demand.

Duke Energy CEO Lynn Good said natural gas “can be a difficult topic,” but the fossil fuel is responsible for 45% of the power company’s emissions reductions since 2005 as dirtier coal plants have been replaced. Good said electricity demand in North Carolina is growing at a pace not seen since the 1980s or 1990s.

“As we look at the next many years trying to find a way to expand a system to approach this growth, I think natural gas has a role to play,” Good said at the Columbia Global Energy Summit in New York City in April. The CEO said natural gas is needed as a “bridge fuel” until more advanced technology comes online.

“An all of the above strategy is the only thing that we see as the way to maintain the reliability and the affordability that our customers count on,” Good said.

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US Gov’t set to spend $46 million to electrify container ports

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US Gov't set to spend  million to electrify container ports

Multi-million-dollar grants adding up to more than $46 million from the US Federal Highway Administration (FHWA) will help support electrification efforts at several American ports.

The Long Beach Container Terminal (LBCT) in Long Beach, California has received a $34.9 million grant from the FHWA to replace 155 on-site commercial trucks and buses with zero-emission vehicles (ZEV). The grant will fund both the purchase of new electric trucks and the necessary charging infrastructure to support them.

LBCT said the grant dollars will allow it to continue its multi-billion dollar investments in more sustainable logistical operations. “Our vehicle electrification project, coupled with previous investments, enables LBCT to achieve a unique status that is reframing the way the world views sustainable goods movement, enhancing community quality of life and climate change,” said Anthony Otto, CEO of LBCT.

Real progress at Port of Long Beach

Long Beach Container Terminal, photo by LBCT.

Back in 2018, Power Progress reported that the Port of Long Beach had plans to install zero-emissions cranes and cargo handling equipment at its terminals. True to its word, the port has invested more than $2.5 billion to convert its cranes and terminal tractors vehicles to electric equipment. It’s a project that LBCT says has led to an 86 percent (!) reduction in harmful carbon emissions.

“This investment is a huge win for clean air, electrification and the region,” said US House Rep. Robert Garcia. “These federal dollars will make our port cleaner, safer and help us meet our climate goals.”

In a separate announcement, charging infrastructure operator Voltera said that its sites in California and Georgia would receive $11.4 million of the FHWA funding.

Electrek’s Take

No matter what you call it… …yard dog, yard truck, terminal truck, hostler, spotter, shunt truck, yard horse, goat, mule … …Orange EV pure electric trucks deliver.
e-Triever terminal tractor; via Orange EV.

Container ports used to be some of the dirtiest, most heavily polluted areas in the world. That was bad for everyone – but it was especially bad for the people who lived and worked near them. That’s why any positive change is good. Beyond just “positive change,” however, ports today seem to be leading the way when it comes to electric vehicle and hydrogen adoption.

How things change!

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Kramer shows off electric wheel loader and telehandler at Intermat

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Kramer shows off electric wheel loader and telehandler at Intermat

German equipment manufacturer Kramer showed off a pair of zero-emission equipment options at the Paris Intermat show last week – the 5065e electric wheel loader and 1445e electric telehandler.

Kramer says the quiet operation of its new electric wheel loader and telehandler are ideal for noise-sensitive areas such as city centers, cemeteries and golf courses, hotels, and suburban parks and recreation areas, where it can operate without emitting harmful diesel particulate matter and other forms of air pollution.

Kramer-Werke GmbH is serious about promoting its new EVs in the French market. “That’s why Intermat is an important platform for us,” explains Christian Stryffeler, Kramer’s Managing Director. “We are also looking forward to showcasing our new generation of (electric) wheel loaders and telescopic wheel loaders here.”

Kramer 5065e wheel loader

The 5065e loader is powered a 37.5 kWh, 96V lithium-ion battery that’s good for up to four hours of continuous operation – which is a lot more than it sounds, considering idle time in an EV doesn’t drain batteries the way idling a diesel drains fuel. A 23 kW (30 hp) electric motor drives the electric wheel loader around the job site, while a 25 kW (approx. 35 hp) motor powers the machine’s 40 liters hydraulic system.

Kramer says the battery on its electric loader can be fully charged in just 5.1 hours using a “Type 2 Wallbox” (that’s an L2 charger to you and me). Max payload is 1750 kg, with a 2800 kg tipping load. Top speed is 20 km/h (approx. 12.5 mph).

Kramer 1445e telehandler

The 1445e telehandler uses a 96V battery architecture that’s similar to the one in the wheel loader, but in a smaller 18 kWh or 28 kWh pack. This enables a fleet manager to right-size their equipment’s batteries to provide four hours of run time in different types of work environments. And, also like the wheel loader, a 23 kW (30 hp) electric motor provides the drive while a 25 kW (approx. 35 hp) powers the hydraulics.

Level 2 charging comes standard on Kramer’s electric telehandler, enabling a full charge of the larger, 28 kWh battery in about five hours. Max payload is 1450 kg.

Electrek’s Take

Kramer 5056e electric wheel loader; image via Kramer.

It’s always good to see more manufacturers pushing out electric equipment options. It’s still the “wild west” out there, even more so than in automotive, and Kramer’s offerings seem to be a step behind in some ways (no DCFC capability) and ahead in others (96V where others are 48V), so it’s hard to know where they stand.

More than anything, the lesson seems to be that fleet managers need to choose wisely when they choose to electrify – and work closely with the dealers and OEMs to ensure that they’re buying the right tool for the right job.

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