A Decline in Emissions in 2023: Focus on Natural Gas

February 1, 2024

For the first time in two years, the United States breathed a sigh of relief as its carbon emissions took a dip in 2023. Estimates range from a 1.9% to 3% decrease, offering a glimmer of hope in the fight against climate change. This positive shift can be attributed to two key factors: the gradual fade-out of coal power generation and a cautious embrace of natural gas.

Source: Rhodium Group

Farewell to Coal

Once the undisputed champion of American electricity, coal’s reign is rapidly approaching its end. In 2023, coal use for power generation hit its lowest level in half a century, marking a significant milestone in the country’s energy transition. This decline wasn’t sudden; it’s the culmination of years of environmental concerns, stricter regulations, and economic competition from cleaner sources like natural gas and renewables.

Increase in Natural Gas

Natural gas has undeniably played a crucial role in reducing US reliance on coal for electricity generation. Compared to coal, natural gas emits nearly 50% less carbon dioxide when burned. This shift has contributed to the recent decline in US emissions, offering a glimmer of hope in the fight against climate change.

But natural gas isn’t without its downsides. Methane, the primary component of natural gas, is a potent greenhouse gas, and leaks throughout the supply chain can significantly negate the emissions benefits. Additionally, relying solely on natural gas risks locking us into a fossil fuel-dependent future, delaying the inevitable transition to clean, renewable energy sources.

Blue and Green Hydrogen

This is where blue and green hydrogen step in, potentially transforming natural gas into a stepping stone towards a cleaner future.

  • Blue Hydrogen: Imagine harnessing the existing infrastructure of natural gas to produce hydrogen with significantly lower emissions. That’s the promise of blue hydrogen. It’s created by 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 traps the CO2, preventing it from entering the atmosphere.

While blue hydrogen isn’t emission-free, it represents a significant improvement over traditional natural gas, potentially slashing 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 be challenging.

  • Green Hydrogen: The holy grail of clean fuels, green hydrogen, is produced using electrolysis powered by renewable energy sources like solar or wind. This process splits water molecules into hydrogen and oxygen, resulting in a completely emission-free fuel. Green hydrogen boasts immense potential for decarbonizing various sectors, from transportation and industry to buildings and even aviation.