Southern Firm intends to check the proposition that a U.S. utility can attain net-zero carbon emissions by 2050 whereas nonetheless preserving pure gasoline as a central a part of its enterprise, each to generate electrical energy and to promote to its prospects.
That’s a key takeaway from Tuesday’s net-zero carbon plan fleshing out the multi-state utility’s Might dedication to zero out its internet carbon emissions by midcentury.
Like many different utilities with comparable decarbonization objectives, Southern Firm doesn’t but see a transparent path to eliminating pure gas-fired energy crops “except and till expertise emerges that may affordably and effectively change it,” CEO Tom Fanning stated in a written introduction to the plan. Meaning Southern Firm intends to maintain constructing new pure gasoline energy crops to satisfy its provide wants, even because it grows its renewable power portfolio from 9 gigawatts in the present day to about 14 GW by 2024.
Southern Firm additionally received’t embrace in its zero-carbon metrics the carbon emissions generated by prospects of its pure gasoline distribution enterprise burning the gasoline it provides them, though it’s going to transfer to scale back methane leakage and assist prospects use the gasoline extra effectively.
And to achieve its net-zero objectives by 2050, Southern Firm will depend on various fuels akin to biomethane, inexperienced hydrogen or methane generated through carbon-neutral “power-to-gas” strategies to produce its energy crops and gasoline utilities, in addition to cost-effective methods to seize, retailer and reuse the carbon it’s going to proceed to emit in a long time to come back.
“Whereas there are calls by some to remove direct use of pure gasoline altogether, it’s our view that such an method could be an costly, impractical method to tackle GHG discount objectives,” the plan states.
The 35-page plan affords much more element than Southern Firm has beforehand disclosed on the way it intends to decarbonize a 44 GW era portfolio that’s now about 52 p.c pure gasoline, 13 p.c coal, 17 p.c nuclear and 18 p.c “renewable and different.” That features a recommitment to reaching its 2030 purpose of lowering carbon emissions under 50 p.c of their 2007 ranges, doubtlessly forward of schedule.
However it doesn’t provide the identical type of various benchmarks and pathways as have been provided by different long-range plans from utilities pledging zero-carbon objectives such as Duke Vitality, Dominion Vitality or Arizona Public Service.
To make sure, no U.S. utility has but absolutely fleshed out the way it intends to remove pure gasoline energy crops from its era portfolio. That’s as a result of these crops present essential flexibility to satisfy peaks in grid demand and ship energy when wind and photo voltaic assets is probably not reliably producing sufficient to satisfy prospects’ wants.
The pure gasoline conundrum
Opponents of recent pure gasoline energy plant building argue that the falling value of renewable power paired with batteries is undercutting the enterprise case for pure gas-fired peaker crops, leaving them prone to turning into stranded property unable to get well the prices of constructing them.
Very like Duke Vitality, nevertheless, Southern Firm faces wintertime peak electrical energy calls for for heating which can be tough to satisfy with lithium-ion battery-backed intermittent renewables. That’s a unique problem than that confronted by summer-peaking methods that may count on solar energy and power storage to assist meet air con demand.
States which have set 100 p.c zero-carbon or renewable power mandates can drive utilities to forego new fossil gasoline tasks, as has occurred lately in Virginia and New Mexico. However Georgia, Alabama and Mississippi, the states the place Southern Firm’s electrical utilities serve about four.2 million prospects, haven’t set such mandates.
Prior to now yr, Southern Firm’s electrical utilities have laid plans for a mixture of pure gasoline and renewable buildouts of their built-in useful resource plans (IRPs). Georgia Energy’s newest IRP plans so as to add 2,260 megawatts of wind, photo voltaic and biomass era and 80 MW of battery storage, in addition to enhance its hydropower capability, shut 5 coal crops, and produce two new items at its Volgtle nuclear energy plant on-line.
However Alabama Energy plans to construct 1,900 MW of recent natural-gas era, though it’s in search of as much as 400 MW of photo voltaic and choices for added power storage below a just-released request for proposals. And Mississippi Energy’s IRP is proposing to retain pure gas-fired operations at its Kemper plant, the positioning of a failed coal-fired carbon seize challenge, and lengthen operations at its Daniel coal-fired energy plant.
Leaving out emissions from pure gasoline burned by prospects
In the meantime, Southern Firm’s net-zero carbon purpose solely measures direct facility emissions, or “Scope 1” emissions as outlined by the U.S. Environmental Safety Company. That leaves out oblique, “Scope three” emissions from gasoline burned or in any other case consumed by prospects of Southern Firm Fuel, whose pure gasoline utilities Atlanta Fuel Mild, Nicor Fuel in Illinois, Chattanooga Fuel and Virginia Pure Fuel serve about four million prospects.
Southern Firm Fuel will cut back its Scope 1 emissions by in search of out renewable pure gasoline, “minimizing fugitive methane emissions throughout the pure gasoline provide chain and lowering GHG emissions for finish use prospects, together with electrical era.”
However Lila Holman, power program supervisor of nonprofit group As You Sow, known as Southern Firm’s determination to exclude Scope three emissions from its plan an “unacceptable” method. She additionally criticized the plan’s lack of element on the prices and dangers of counting on as-yet unproven applied sciences to chop the carbon footprint of its pure gasoline fleet.
“Whereas Southern refers to ideas like ‘Renewable Pure Fuel,’ hydrogen, and carbon seize, the firm leaves out specifics that might assist buyers perceive the impacts, prices, and chance that such applied sciences are something past wishful considering,” Holman wrote in a Tuesday assertion.
What the longer term holds
Over the subsequent three a long time, Southern Firm has “developed pathways that might permit us to attain 80 to 90 p.c discount” in carbon emissions, the corporate says. That’s completed by a mix of recent photo voltaic, wind, power storage, distributed power assets (DERs) like rooftop photo voltaic and behind-the-meter batteries, and power effectivity and demand response, because the “illustrative instance” graphic under signifies.
To handle the 10 to 20 p.c of its era portfolio nonetheless emitting carbon, Southern Firm might want to pursue “a set of negative-carbon options.” These embrace the aforementioned carbon-neutral substitute fuels, in addition to advances in capturing pure gasoline energy plant emissions being pursued on the Nationwide Carbon Seize Heart, which Southern Firm operates in partnership with the U.S. Division of Vitality.
They may additionally embrace next-generation nuclear energy crops akin to these Southern Firm is pursuing with Invoice Gates-backed startup TerraPower, and long-duration power storage akin to superior move batteries, compressed air power storage (CAES) and thermal power storage applied sciences.