Construction on the ACES Delta green hydrogen project in Utah is 95% complete and commissioning has begun, according to media reports. It would be one of the largest green hydrogen production and storage facilities in the U.S. once operational.
In many parts of the world, the shift away from coal-fired to natural gas-fired generation and renewables has been gaining momentum in an attempt to curtail the output of carbon dioxide (CO2) and other greenhouse gases. The Canadian province of Alberta kicked off such an initiative in 2016 to eliminate all of its coal-fired power generation sources and replace these with either gas-fired plants, wind farms, or solar by 2030. In the past two years, the province’s major electric utilities and independent power producers (IPPs) have been accelerating these plans, such that the complete phase-out of coal will be accomplished many years in advance of the original deadline. Today, we consider this transition and highlight what should be a pivotal year for Alberta’s use of natural gas in power generation.
For the first time ever, U.S. natural gas-fired power plants are routinely generating more electricity than their coal-fired counterparts, at least during the spring, summer and fall. Prior to 2015 coal held a clear lead over natural gas in power generation but last year they were neck and neck at 33% of fuel consumed for power generation according to the latest Energy Information Administration (EIA) statistics released Friday (February 26, 2016). This is partly due to tightening federal environmental rules, but another major driver is very low natural gas prices, which have been averaging below $2/MMBtu. Coal prices have been falling too as coal markets respond to stronger-than-ever competition from gas, but not enough to prevent a lot of coal-to-gas switching in the power sector. Today, we update last fall’s analysis of the death-match battle between coal and natural gas with a look at how persistently low gas prices may keep gas on top.
