Daily on Energy: The overlooked promise of capturing carbon from gas plants

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THE OVERLOOKED PROMISE OF CAPTURING CARBON FROM GAS PLANTS: Carbon capture for coal gets all the attention, but removing C02 from natural gas plants may be more important to achieving the goal of eliminating emissions from the power sector.

Carbon capture and storage (CCS) technology removes carbon dioxide from a power plant’s exhaust, so as to not release it into the atmosphere, and traps the emissions underground.

“Gas has been overlooked in the CCS discussion, which has historically been about coal,” Rich Powell, executive director at ClearPath, a conservative clean energy group, told me. “If we can crack that technology, the work of getting the power sector to zero emissions starts to look easy.”

The Senate Energy and Natural Resources Committee took a step toward recognizing the importance of carbon capture for natural gas Tuesday morning, passing a bipartisan bill that would require the Department of Energy to establish a carbon capture technology research program for gas plants.

The LEADING Act, as it’s known in shorthand, sets a goal for the Energy Department to have three carbon capture demonstration projects for gas plants up and running by 2025, requiring the cost of the building projects to be shared by the government and private industry.

“In the past when DOE has aggressive goals out there, that is when they are successful,” Powell said of the bill, which is co-sponsored by Republican Senators John Cornyn of Texas and Bill Cassidy of Louisiana, along with Democrats Chris Coons of Delaware and Kyrsten Sinema of Arizona.

Why CCS for gas matters: Carbon capture is especially important for gas plants because gas, which emits half the carbon as coal, is not going anywhere soon — whereas coal is in a rapid decline. Thanks to the shale boom, cheap natural gas generated 35% of U.S. electricity in 2018, more than any other fuel source. Gas is often seen as a “transition fuel” until renewables with batteries can fully dominate the grid. But the oil and gas industry wants gas to be a “fuel of the future,” and recognizes the importance of CCS in fulfilling that promise.

“Gas will have a rich and vibrant future,” Julio Friedmann, a researcher who studies carbon capture at the Center for Global Energy Policy at Columbia University, told me in an interview. “The question is: Will you be emitting or not?”

He added that many oil and gas companies and power companies are taking CCS seriously, in contrast to coal companies.

Projections are already being developed: For example, U.S.-based Occidental Petroleum is an investor in a project with Net Power, a North Carolina-based energy startup, for a $140 million 50-megawatt CCS demonstration facility on a gas plant in La Porte, Texas.

If proven successful, Net Power hopes the technology powering the facility, designed by one of the company’s investors, 8 Rivers, can be used to capture and store carbon in other power plants around the world, mostly ones generating natural gas — which is simpler and cheaper than doing it for coal.

Net Power says the 8 Rivers system uses a turbine built by Toshiba to produce energy more efficiently, allowing it to capture emissions at effectively no cost.

The company projects its carbon capture technology will be deployed commercially in late 2022 or early 2023.

Oil and gas major Exxon has partnered with FuelCell Energy on another CCS project being piloted in Bucks, Alabama that would use fuel cells to separate carbon dioxide from the exhaust of a natural gas plant, making the C02 easier to capture and store.

Canadian company Inventys is developing a carbon capture technology for gas plants that could be used on U.S. plants.

“There are a lot of horses already in the race. We hope the existence of this program drives even more players to attempt to demonstrate CCS for natural gas plants,” Powell said of the LEADING Act’s promise of a new DOE research program.

Welcome to Daily on Energy, written by Washington Examiner Energy and Environment Writer Josh Siegel (@SiegelScribe). Email [email protected] for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.

EPA VIOLATED ETHICS RULES IN RESHAPING ADVISORY BOARDS: The Environmental Protection Agency violated internal ethics rules rules when it appointed industry-connected members to science advisory boards without consulting career staff, a federal watchdog said Monday.

The Government Accountability Office said EPA also did not “consistently ensure” that members to two advisory panels — Scientific Advisory Board and Clean Air Scientific Advisory Committee — met federal ethics requirements.

The GAO study focused on former EPA administrator Scott Pruitt’s reshaping of the agency’s science advisory committees.

Pruitt appointed new members, many with energy industry ties, with the goal of “ensuring independence, geographic diversity, and integrity,” according to the agency.

He also barred scientists from serving on the committee if they receive EPA grants, which had the effect of limiting the participation of certain academics. President Trump recently issued an executive order requiring federal agencies to cut the number of advisory committees.

“This report shows that the Trump administration rigged influential advisory boards to favor its polluter backers,” said Senator Sheldon Whitehouse of Rhode Island, one of several Democrats who requested the GAO report.

The EPA disputed the report’s findings, contending in a letter to GAO that its selection process for advisory committees is “more rigorous” than past administrations.

TRUMP LOOKS TO STEM RED TIDE AHEAD OF CAMPAIGN SEASON: Trump is focusing on coastal fisheries as part of his environmental agenda going into campaign season, an approach particularly geared to the key battleground state of Florida, where he is aiming to eradicate the “red tide” of toxic algae.

Trump laid out his coastal priorities on July 8 in a major White House speech on the environment, targeting recent outbreaks of red tide — so named for its dark toxic algae blooms that make swimming and fishing hazardous.

Trump touted the $100 million he authorized to address the red tide, which he called “a big problem” causing “tremendous havoc” and economic damage in coastal areas. Last year, red tides were a problem for Palm Beach, where Trump’s Mar-a-Lago resort is located.

Trump’s property values could be one reason for his interest in the toxic algae problem. But it is also a problem that worries voters, including thousands of commercial fishermen that rely on the coastal waters for their livelihood.

The National Oceanic and Atmospheric Administration said last month that red tide had killed 174 dolphins off of Florida’s coast in the last year. It can also destroy fish habitats and make shellfish poisonous and unfit for human consumption.

Higher surface water temperatures and climate change are among the reasons for the increased frequency of red tide in recent years. Trump did not mention climate change in his speech.

Read more of John’s last story for us in this week’s Washington Examiner magazine.

STUDY REFUTES GRID OPERATOR’S ATTEMPT TO RESTRICT ENERGY STORAGE: A study released Monday rebuts an effort by the nation’s largest grid operator to try to impose restrictions on the deployment of energy storage in its power market.

The study by the Energy Storage Association and National Resources Defense Council found that a proposal by grid operator PJM requiring a storage technology to run for 10 continuous hours in order to qualify for participation in a capacity market is “unnecessary and unduly restrictive.”

The study argues storage that runs for as low as four hours can provide significant value to power grids.

PJM issued its proposal in response to an order by the Federal Energy Regulatory Commission issued last year to remove long-standing barriers to energy storage in power markets.

The FERC order requires regional grid operators such as PJM to revise their pricing to recognize the benefits of energy storage and allow the technology to compete with generators in wholesale power markets.

“Energy storage is being installed on electric grids across the country at a rapid pace, helping transform our electric system to a more resilient, efficient, sustainable and affordable one,” said Energy Storage Association CEO Kelly Speakes-Backman. “This study clearly affirms FERC’s judgement to include a broader set of technologies to participate, saving consumers money and supporting a diverse supply of clean energy generation.”

MORE THAN 30K PEOPLE WITHOUT POWER AFTER TROPICAL STORM BARRY: About 33,000 customers were without power as of Monday night in the wake of Tropical Storm Barry, with most outages in Louisiana.

The Edison Electric Institute, a trade group representing U.S. utilities, said power companies had restored electricity to more than 325,000 customers since the storm began.

But the group warned the most challenging restoration work are located in areas that experienced flooding, multiple road closures, and significant structural damage. Companies are performing aerial damage assessments with drones to help recovery work in these areas.

The Rundown

Washington Post Interior to move one-fifth of BLM’s staff out west as part of reorganization push

Wall Street Journal PG&E braces for power cuts to manage wildfires; Tesla, others see an opening

New York Times ‘Toxic stew’ stirred up by disasters poses long-term danger, new findings show

Reuters Alpine resorts grapple with climate change

Calendar

TUESDAY | July 16

1 p.m., Webinar. The Nuclear Regulatory Commission holds a webinar on the decommissioning of the Three Mile Island 1 nuclear power plant in Londonderry, Pa.

WEDNESDAY | July 17

10 a.m., 406 Dirksen. The Senate Environment and Public Works Committee holds a hearing entitled, “Electric Battery Production and Waste: Opportunities and Challenges.”

THURSDAY | July 18

8:45 a.m., 1616 Rhode Island Avenue NW. The Center for Strategic and International Studies holds a conference on “Energy Investment and Infrastructure in Asia.” Sen. Cory Gardner, R-Colo. and Assistant Secretary of State for Energy Resources Frank Fannon address the event.

10 a.m., 366 Dirksen. Senate Energy and Natural Resources Committee holds a hearing to examine opportunities to increase water storage and conservation through rehabilitation and development of water supply infrastructure, and to receive testimony on a number of bills.

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