At-a-Glance: 

President Biden aims to decarbonize the U.S. power sector by 2035 and to be net-zero by 2050. His administration considers clean energy to be any facility that produces no CO2 or that can capture carbon and bury it, which keeps natural gas in the fold. The U.S. Energy Information Administration says that natural gas comprises 40% of the electric generation portfolio while coal is at 19% and falling. Natural gas has been replacing coal because it releases about half the emissions when it is burned in a power plant. For more, read With Coal On The Way Out, Policymakers Have Their Eye On Natural Gas

 

Key Takeaways:

  • Over the last 10 years, the cost of wind energy has fallen by 70% while the price of utility-scale solar power has dropped by 80%. He says that 80% of the country’s coal plants are 30 years or older and they are unable to compete.
  • Net-zero does not mean the elimination of fossil fuels. It means off-setting those emissions with measures like using underground pipelines to transport CO2 that has to be stored.
  • Most experts say that the United States can get 70% of the way to its net-zero goals by 2035. The technologies to do so now exist. But the real challenge is to get the rest of the way. 
  • The American Gas Association says natural gas delivers three times more energy on the coldest days of the year than does the electric system on the hottest days. 
  • Natural gas can be used to firm-up wind and solar when the weather is not favorable for producing power.

Path to 100% Perspective:

Based on the competitive prices of renewables in the US we have seen this renewable transition taking place, regardless of political wills. As we transition to carbon neutrality, natural gas may be required to fill the gap until it can be replaced by more sustainable fuels, such as synthetic methane or green hydrogen. The storage of those fuels, along with improved battery storage in the future, will provide a cleaner alternative over the long term.