Rep. Garrett Graves of Louisiana gets it. On a February 17, 2022 ACCF webinar, he noted that we must develop technologies that enable us to offset carbon emissions and continue developing the energy advantages we enjoy in the U.S. Graves was referring, of course, to carbon capture, utilization and storage, or CCUS. CCUS is a suite of technologies that enable the removal of carbon dioxide from power generation or other industrial operations, or even from ambient air, and then use the CO2 in industrial applications or store it deep underground.
Many energy and climate experts from both parties support further development of CCUS. Former Obama Energy Secretary Ernie Moniz is a strong supporter, as are former Trump Energy Secretary Dan Broillette and Sen. Joe Manchin and a slew of his colleagues on both sides of the aisle.
Perhaps our greatest opportunity to benefit from CCUS is that it – along with efforts to reduce methane emissions from natural gas production – can offset the greenhouse gas emissions of natural gas. Today, natural gas reduces power plant CO2 emissions by about 50% when it replaces coal in electricity generation. This is the primary reason U.S. GHG emissions have dropped since 2005 and will continue to provide climate benefits until CCUS technology is widely deployed to help offset gas-fired power generation emissions entirely. The U.S. also has an abundant supply of natural gas; recent estimates project that the U.S. has the equivalent of 84 years of gas. This means that we not only have ample supply to meet our domestic needs, but have additional supply to export as liquified natural gas (LNG).
LNG is simply natural gas that is supercooled so that it condenses into a liquid state, making it much more dense and therefore easier and cost-effective to transport by ship. The economic benefits of exporting LNG are numerous. A 2018 study by NERA for the Department of Energy found that provided the U.S. maintains conditions conducive to natural gas production and transport, LNG exports will have positive economic impacts on gross domestic product (GDP), household income and consumer welfare, with minimal upward impact on domestic gas price. This would require a more supportive stance from the Federal Energy Regulatory Commission (FERC) which recently added barriers to pipeline permitting.
There are significant climate benefits to LNG exports as well. Like the U.S., the rest of the world will witness a decades-long transition to 100% zero-emission sources of energy. Scenarios to achieve net-zero emissions in 30 years – like the International Energy Administration’s (IEA’s) – are by their own account, extremely aggressive, and assume significant use of natural gas, along with growth in CCUS. So, as we transition, nations around the world will be able to make progress towards their climate goals by switching from coal to cleaner burning natural gas. U.S. LNG exports can help make that possible.