In a notable departure from the past two years, the United States witnessed a drop in its carbon emissions in 2023. Calculations indicate a reduction ranging from 1.9% to 3%, providing a ray of hope in the battle against climate change. This positive trend can be ascribed to two pivotal factors: the gradual phase-out of coal power generation and a cautious adoption of natural gas.
Source: Rhodium Group
Goodbye to Coal
Once the dominant force in American electricity, coal’s supremacy is rapidly approaching its conclusion. In 2023, the use of coal for power generation hit its lowest point in half a century, marking a significant achievement in the nation’s energy transition. This decline wasn’t abrupt; it represents the culmination of years of environmental concerns, stricter regulations, and economic competition from cleaner sources such as natural gas and renewables.
Rise in Natural Gas
Natural gas has played an undeniable role in diminishing the US reliance on coal for electricity generation. When burned, natural gas emits nearly 50% less carbon dioxide compared to coal. This shift has contributed to the recent decline in US emissions, providing a glimmer of hope in the fight against climate change.
However, natural gas has its drawbacks. Methane, the primary component of natural gas, is a potent greenhouse gas, and leaks throughout the supply chain can significantly offset the emissions benefits. Additionally, solely depending on natural gas poses the risk of tethering ourselves to a fossil fuel-dependent future, potentially delaying the inevitable transition to clean, renewable energy sources.
Blue and Green Hydrogen
This is where blue and green hydrogen come into play, potentially converting natural gas into a bridge to a cleaner future.
- Blue Hydrogen: Envision leveraging the existing infrastructure of natural gas to produce hydrogen with markedly lower emissions. This is the pledge of blue hydrogen. It involves extracting hydrogen from natural gas through a process called steam methane reforming, but with a crucial twist: capturing and storing the resulting carbon dioxide (CO2) underground. This carbon capture and storage (CCS) technology essentially confines the CO2, preventing its release into the atmosphere.
While blue hydrogen isn’t entirely emission-free, it represents a significant enhancement over traditional natural gas, potentially reducing its carbon footprint by up to 90%. This makes it a viable option for industries and sectors where electrification or direct use of renewables might pose challenges.
- Green Hydrogen: The ultimate goal of clean fuels, green hydrogen, is produced through electrolysis powered by renewable energy sources like solar or wind. This process splits water molecules into hydrogen and oxygen, yielding a completely emission-free fuel. Green hydrogen holds tremendous potential for decarbonizing various sectors, ranging from transportation and industry to buildings and even aviation.