How natural gas can boost the transition to cleaner energy sources
Many countries, including Canada, are transitioning from conventional coal-fired electricity to cleaner energy production systems. They are adopting natural gas as one of the viable options to cut energy generation-related greenhouse gas (GHG) emissions because natural gas emits almost 50% less CO2 than coal. However, there is still a debate about whether natural gas is a clean fuel in the true sense.
This article will shed light on how natural gas is being adopted across the globe as an energy transition fuel. Various countries are approaching the adoption of natural gas, its benefits, as well as problems and possible solutions related to it.
Read on to understand how natural gas is being used in the clean energy transition, including how it could be used in the future.
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Global natural gas scenario
According to the International Energy Agency (IEA), the demand for natural gas increased despite electricity demand going down during the pandemic in 2020. This increase in demand can be attributed to switching from coal-fired power plants to natural gas for clean power generation, especially in China and India. However, according to the IEA Global Energy Review 2020, 75% of the growth in the global natural gas demand has come from the industrial and building sectors during the pandemic.
The United States and China continue to be the top consumers of natural gas, followed by the European Union. The Middle East and North Africa region also has seen an increase in natural gas consumption for power generation.
Canada was the fourth-largest producer and sixth-largest exporter of natural gas in 2020.
To encourage cleaner energy production, Canada is converting coal-fired power plants into natural gas-fired ones, especially in fossil fuel-dominating provinces such as Alberta.
Hydrogen is also being looked at as a promising solution for zero-emission power generation in Canada. In this case, natural gas could act as an intermediary solution and a rider for hydrogen gas until the latter becomes commercially competitive. This means natural gas is anticipated to stay around longer.
The advantages of using natural gas in the clean energy transition
According to the World Energy Outlook Report, 2019, the switch from coal to gas has saved around 500 million tonnes of CO2 emissions in the last decade. With more heat content and lesser per unit CO2 emissions than coal and petroleum, natural gas offers the following advantages:
- Natural gas can work as a bridging fuel to support the clean energy transition.
- Since natural gas is present near petroleum reserves, the upstream industry could continue to thrive in the decarbonization era through natural gas production.
- Natural gas is less polluting than coal and petroleum. Natural gas combustion produces negligible sulphur, mercury, and particulates and nitrogen oxides than gasoline and diesel. Natural gas can serve as an initial blending fuel once hydrogen fuel and biomethane become fully commercialized for long-distance transportation. The work on this is actively being done across Europe and North America.
- The transportation sector accounts for almost 21% of GHG emissions globally. Liquified natural gas (LNG) is easy to transport in large quantities. It is used to diversify the fuel mix and reduce air pollution to fuel heavy-duty road transport and shipping. The use of LNG also addresses local air quality problems and reduces CO2 emissions.
- Renewable natural gas produced from landfills can be introduced into the conventional natural gas transmission and distribution systems currently available. This could reduce land drilling for exploration purposes.
Challenges of using natural gas for the clean energy transition
Lack of adequate infrastructure is one of the critical roadblocks hampering the widespread adoption of natural gas to support clean energy transition.
There is still divided support from civic organizations to support the expansion of natural gas infrastructure projects.
Additionally, for the new category of gases, such as hydrogen or renewable natural gas, the existing infrastructure is not yet fully developed for these new era resources to be made mainstream.
According to the Centre for Strategic and International Studies, very few countries are actively constructing new gas networks, meaning gas is a niche market in those countries. For natural gas to contribute to clean energy transition significantly, infrastructure development would be necessary.
With electric vehicles getting a major push across the globe in the transportation sector, natural gas-based transportation has taken a side seat. To cover the transitioning phase and making use of natural gas in the transportation sector, technological changes would be necessary.
Natural gas as a green energy partner
The global efforts to reduce carbon emissions and improve air quality indicate the requirement to reduce fossil fuels. This push is expected to increase the contribution of natural gas to the energy generation mix.
Some of the developments that may positively or negatively affect natural gas growth include:
- Technological advances in power generation technologies;
- Falling costs of renewable energy and energy storage technologies;
- And higher carbon prices, to mention a few.
For natural gas to unleash its full potential and become an effective clean energy partner, specific measures may be needed to promote its growth. These measures could include stricter air quality measures and regulations, more financial investment in innovation and development, and creating a quota for natural gas integration in specific energy-intensive industries.
If energy generators plan to rely on natural gas for a smoother clean energy transition, more innovative mechanisms and natural gas investments will be required. In such a scenario, policymakers and regulators will play a critical part in defining how we will use natural gas in decarbonatization.
