EVs, or electric vehicles, are certainly a step in the right environmental direction. After all, manufacturers plan to replace the current fossil fuel-guzzling vehicles with their electric cousins to fight climate change and reduce emissions. However, they aren’t as emission-free as people think. Indirectly, the overall impact of EVs may not be so rosy.

Samik Mukherjee explains that many experts are strongly considering the downsides of the EV shift, from the use of rare-earth metals to the increased electricity requirements to the near-impossible recyclability of certain components. 

The Mining of Rare Earth Metals

Manufacturers use neodymium, a rare-earth metal, to make ultra-strong magnets found in electric motors. And, as many can imagine, mining it isn’t emission-free. 

In fact, it produces thorium contamination. Thorium is a radioactive element found inside metal that can have negative impacts on the environment. 

But it isn’t just the mining emissions that can be problematic. 

From 1965 to 1995, Mountain Pass near the Mojave Desert in California was the globe’s primary supplier of rare-earth elements. However, the extraction of such metals wreaked havoc on the Californian wilderness, with a federal investigation finding roughly 2,300 liters of radioactive wastewater in the desert soil. 

While that investigation didn’t stop mining in the region, it certainly prevented other rare-earth mines from being discovered in the United States of America. 

So, where do manufacturers obtain neodymium and other rare earth metal required for electric vehicles? From China and other geopolitically sensitive countries. 

US manufacturers fear China will begin reducing rare earth metal exports, meaning supply chain security is somewhat diminished. And while the nation struggles to obtain a bolstered supply, there are concerns about the dirty extraction processes that would once again bring devastation to the country’s natural habitats. 

The Rising Electricity Load

As their name suggests, EVs use electricity as their primary fuel source, potentially overloading utility companies as their popularity increases.

While McKinsey analysts suggest the e-mobility growth won’t drive substantial increases in overall electrical-grid power demand in the midterm, it will certainly shape the load curve.

Forecasts suggest evening peak loads will be the most substantial change, as people return home from work and plug in their electric vehicles. Although, it’s safe to say that the effect will represent just a small percentage. 

That said, there are issues surrounding the source of EV power. If it’s coal-based power plants leading the charge, are they really any better than their petrol- or diesel-hungry cousins?

The Recyclability Proves Challenging

Finally, recyclability is difficult for electric vehicles due to their batteries. If sent to a landfill, the green benefits of such cars become null and void. The batteries’ cells emit problematic toxins, damaging environments around the world. 

Unfortunately, industry leaders state that recycling the batteries might be even more dangerous. One wrong move and they can short-circuit, release harmful fumes, or combust. 

Currently, EV batteries aren’t made to be recycled. But that will have to change if the future of an all-electric mobile future is to be a genuinely healthy reality. 

Tackling climate change necessitates a drastic switch in the way the world produces and consumes energy that won’t impede economic growth or quality of life. Moreover, Samik Mukherjee explains that the Sustainable Development Goals (SDGs) have added another caveat — access to secure, sustainable, and affordable resources.

Energy has been a major propeller of economic and social growth, allowing the alleviation of hunger, increased food production, and access to clean water. However, that doesn’t take away from the fact that it’s also raised atmospheric pollution exponentially.

Enhanced quality of life means access to energy from natural gas. But the supply and demand around the world aren’t consistent. Thus, every region is working to source cleaner energy instead of contributing to global warming. And that’s where liquefied natural gas (LNG) comes in.

Natural gas is turned into LNG to ensure the cleaner-burning fuel can be transported safely through oceans. Thanks to the introduction of FSRUs (or floating storage and regasification units), transportation methods have changed slightly, giving LNG the potential to produce cleaner energy for transport and electricity.

LNG’s Role in Producing a Safe and Reliable Energy Source

Over the past 20 years, LNG’s role has been positive, contributing to reduced carbon emissions and offering reliable backup for renewable energy.

The globe’s largest decarbonizers, the United Kingdom and the United States, have considerably reduced their amount of coal burnt, while boosting their natural gas penetration.

The UK has adopted a modest carbon tax to extricate coal from its power generation mix. But the USA has taken a different route. Instead of enacting a carbon tax, the revolution of shale gas has decreased the cost of natural gas so much that coal-fired plants can’t compete.

Emerging markets have also embraced natural gas for power generation. However, they are yet to utilize it as a genuine component of their clean energy mixes.

The Importance of LNG in Producing Cleaner Energy

LNG is more cost-effective than hydro and dirty resources in producing electricity. Even in circumstances where power is utilized flexibly, there’s space for other domestic applications like lighting, heating, and cooking.

Keeping the LNG door open as an alternative to dirty energy offers innovation scope, increasing communities’ ability to generate more electricity for homes and factories.

On top of that, LNG could become a larger part of the transport mix as a lower-carbon fuel option, possibly providing environmental and economic benefits.

Furthermore, it can decrease poor air quality problems when used in generating power and providing fuel for industrial plants and transportation. So far, liquefied natural gas has contributed to lowering carbon emissions and supporting renewable energy applications.

Due to all the above, natural gas can become a companion to renewable energy and play a major role in transitioning the world to a low-carbon energy system.

LNG’s Potential for Cleaner Energy Is Massive

LNG has proven its carbon advantage. And, as developed regions have shown, it has a near-immediate enhancement to local pollution.

Meeting the demand for power generation, distribution, and transmission requires cleaner energy — LNG is part of the answer.

In light of the United Nations’ sixth IPCC climate assessment, drastic and immediate changes must be made to limit the release of greenhouse gases and maintain average global temperatures to within 2°C of pre-industrialized levels.

Samik Mukherjee explains that the global natural gas market has grown substantially in recent years, positioning itself as a viable transitionary fuel source with much lower carbon emissions compared to oil and coal. Natural gas is a reliable, high energy intensity fuel, affordable to transport globally in large volumes as LNG (1 to 600 reduction in volume makes for efficient storage) and drives sustainable energy mix for the future replacing high emissions fuels like coal & oil.

As Europe, Japan, China, South Korea, and the United States continue to work toward zero net emissions by 2050, liquid natural gas could play a vital role in helping to transition away from high emission emitting fuels. Below, the risks and benefits of natural gas, why and how demand has grown, and examination of how it could act as a step toward zero net emissions is discussed.

A Cost-to-Benefit Analysis of Using Liquid Natural Gas

The primary benefit of natural gas is that it is a much cleaner burning fuel source than oil and coal, emitting up to 60 percent less carbon dioxide (CO2) when combusted. This is especially beneficial for countries that heavily rely on fossil fuels for electricity, heating, and transportation, such as those in the developing world with substantial industrial energy requirements.

Natural gas is also more efficient than coal, requiring less fuel to produce the same amount of energy. This helps to further reduce carbon emissions and offset the cost of producing energy on a wider scale. Finally, natural gas is a more versatile fuel source and can be used to power a wide variety of industrial and residential applications. The capital cost of a gas turbine power station represents a significant capital cost reduction when compared to coal, oil or nuclear of a similar output of power. Installation time from design to operation is around half the time of any alternative options

Although natural gas is a cleaner burning fuel source than oil and coal, it is not without its hazards. Natural gas extraction is energy and water intensive and can lead to environmental contamination if not properly managed. The natural gas production, transportation, liquefaction (LNG) and shipping industry is highly regulated to ensure highest standards of HSE (health, safety and environment) are implemented in the design and in the operation phase.

Understanding the Rise in Demand for Natural Gas

2020 marked a watershed moment for the natural gas industry as global infrastructure grew to meet rising demand. Both Russia and Qatar have invested heavily in natural gas extraction, creating a surplus of natural gas fuel to power Europe and Asia. Specifically Europe got heavily dependent of Russian gas through pipeline. However, in light of the 2022 Russian invasion of Ukraine, Europe has had to source its fuel from elsewhere for example importing more from other natural gas producers to meet the demand for residential, commercial and industrial users.

This shift has encouraged other players to stake their claim in the European market—namely Norway, USA, and Qatar. With new suppliers taking on a greater role in the global fuel trade, the overall size of the LNG market will grow to even greater heights. This will further cement LNG’s place in the industrial landscape and push out older, high emission emitting forms of fuel such like coal and oil from power generation and heating/cooling applications.

However, ongoing sanctions against Russia have driven up fuel prices, making it a more expensive and, therefore, less favorable fuel source. Developing economies may be priced out of using LNG and, instead, return to burning carbon-rich coal. It is important to look at the overall energy mix in a holistic manner. The world population is growing, and the majority of the growth is coming from developing economies where people have strong aspiration to improve the quality of their lives following the footsteps of developed western economies. So, the energy consumption per person is expected to grow significantly in developing economies. Focusing only on renewable energy sources is not a pragmatic view and can lead to highly volatile situations as the events of 2022 taught us. Therefore, in my opinion the world needs a balanced view of all available energies as part of the mix, looking at all three factors – Security/Reliability, Affordability and Sustainability.

Natural Gas’s Role in Restricting Climate Change

The IPCC emphasizes that drastic and immediate changes must be made to reduce global carbon emissions to within 2°C of pre-industrialized levels. Natural gas is a viable transitionary fuel source that can help reduce emissions while the world transitions to renewable energy sources such as wind and solar.

Not only can natural gas be used in the short term to reduce emissions, but it can also be used to offset the cost of transitioning to renewables. For instance, natural gas can be used to power industrial processes while the infrastructure necessary for renewable energy sources is built.

Additionally, natural gas can be used to store energy from renewable sources. When the sun is not shining or the wind is not blowing, natural gas can be used to maintain a steady supply of electricity.

Finally, natural gas can replace the most carbon-intensive sources of electricity, such as coal. This will further reduce global carbon emissions, helping to keep global temperatures within the 2°C threshold outlined by the IPCC.

Final Thoughts

The global natural gas market has experienced substantial growth in recent years, and this trend is likely to continue as countries work to reduce their carbon emissions. If used correctly, natural gas could become an effective tool in meeting growing energy demand, reducing carbon emissions and helping in keeping global temperatures within the 2°C threshold outlined by the IPCC.

Meeting the world’s ever-expanding energy needs is one of the biggest concerns of our time. Human populations are growing exponentially all over the planet, putting increased pressure on existing power grids and creating a necessity for new and innovative energy solutions to keep our society going.

At this time, most of the energy we consume comes from nonrenewable resources like coal and natural gas. These resources are finite, meaning they can’t be replenished once they’re gone, and harvesting them and turning them into energy puts untenable pressure on our climate and the delicate ecosystems we rely on and are part of.

For the health of the Earth as well as for the sake of the billions of people who depend on electricity to keep them safe, sheltered, and connected to the outside world, developing and utilizing renewable power sources like wind, water, solar, and geothermal energy must be a priority. However, Samik Mukherjee says that fossil fuels and renewables can and must co-exist if we are to successfully maintain a society that doesn’t leave anyone behind.

The Myth of “All-or-Nothing”

As the planet’s overall temperature continues to rise, more and more advocates are demanding a virtually immediate switch to renewable energy sources such as solar and wind. The loudest voices often declare that nothing short of a total 180 from fossil fuels to renewables will save our climate from heating up beyond a reclaimable point.

While climate researchers largely agree that increasing our investment in renewable energy sources is a vital aspect of our response to climate change, the world cannot afford to be so black and white in its views on fossil fuels. Nonrenewable energy sources provide 80% of the planet’s power, and many countries simply do not have the infrastructure or the resources to pivot away from natural gas or coal consumption any time soon. If we were to completely cut out nonrenewable resources tomorrow, more than three-quarters of the world would slip into darkness.

Powering Forward Together

The truth is that an all-or-nothing approach to renewable energy leaves out billions of people in countries around the world who wouldn’t have access to electricity, clean water, or viable shelter without fossil fuels. Not only can fossil fuels and renewables co-exist: it’s the only way forward for our planet, at least until renewable power plants are as ubiquitous as nonrenewable ones.

This co-existence is already working in many parts of the world. A 2021 study examining the efficacy of India’s ambitious plan to build hundreds of solar plants and wind farms by 2030 found that the plan will succeed in meeting the country’s carbon mitigation goals without sacrificing its energy needs as long as a few fossil fuel plants are built as well. Projections suggest that no new fossil fuel plants will need to be built after 2030, though the ones that currently exist will need to remain in operation for some time.

In Conclusion

Making forward progress, even at a slower pace than may be preferable, is infinitely better than grinding to a halt over perceived irreconcilable differences. 

The reality is that fossil fuels and renewables will both power the planet for the foreseeable future. Therefore, investing in new ways to improve their safety and efficiency is vital. The well-being of the entire world depends on it.

Despite its name, the Inflation Reduction Act has been hailed as one of the most significant pieces of legislation to reduce greenhouse gas emissions and bolster renewable energies in modern history. With such a major investment in renewables, many people are now wondering how the law will affect the natural gas and oil industries. Nevertheless, the bill is quite complex and is slated to expand drilling throughout the United States.

As with most legislation, the Inflation Reduction Act includes a long list of clauses designed to help it garner votes from both Republican and Democratic Congressmen. To better understand the full extent of these clauses, Samik Mukherjee takes a moment to discuss more about the bill and explains how it will impact the fossil fuel industry.

The Inflation Reduction Act Will Undoubtedly Increase Investment in Wind Energy

First and foremost, the Inflation Reduction Act will significantly impact the renewable energy sector by greatly reducing taxes and increasing royalties for solar and wind energy producers. Additionally, the bill effectively overturns the Trump Administration’s 10-year bar on new wind farms, opening the nation to a new era of wind energy development.

These provisions will have a direct impact on the natural gas and oil industries because they will make renewable energy more competitive with fossil fuels. In particular, the bill’s tax credits and subsidies will make it easier for developers to build new wind farms, which will lead to a decrease in demand for natural gas and oil.

Provision to Expand Drilling

While the Inflation Reduction Act may negatively impact demand for natural gas and oil, it is important to note that the bill also contains a provision to expand drilling. This provision comes just in time after a federal judge barred the oil industry from purchasing a section of the Gulf Coast for drilling for $192 million.

Thanks to the bill’s provisions, companies can now expand their drilling operations in the Gulf of Mexico, which could offset some of the losses experienced by the fossil fuel industry. Additionally, the Inflation Reduction Act will increase the royalty rate for both onshore and offshore drilling from 12.5% to 16.6%, helping to increase profits for the industry.

Despite a Rise in Drilling, the Act is Slated to Reduce Carbon Emissions by Up to 40%

When the Inflation Reduction Act first came up for debate, many analysts assumed that it would fall dead on arrival yet, thanks to a wide array of clauses that benefit most stakeholders’ interests, the bill surprisingly passed with bipartisan support.

For environmentally conscious Democrats, the bill will increase investments in renewables, cementing their position within the American energy sector. For business-minded Republicans, the bill will spur economic growth by expanding drilling and reducing regulations. However, the most significant result is a bill that is designed to reduce carbon emissions by up to 40%.

The Takeaway

In the end, the Inflation Reduction Act is a complex piece of legislation that will have a major impact on the natural gas and oil industries. While the bill will undoubtedly increase investment in renewable energy, it also contains a provision that could open up new drilling opportunities.

Natural gas is supercooled combination of hydrocarbon gases composed mostly of methane. It may also include trace amounts of nitrogen, CO2, hydrogen sulfide, and other higher alkanes It’s commonly used as a fuel for industrial processes, as well as in many home kitchens. Yet, for something so common, most people know very little about liquified natural gas.

Samik Mukherjee takes a minute to discuss what liquified natural gas is, where it comes from, how it’s used in both industrial and residential environments, and how it can be safely transported and used throughout the nation. Your home likely already uses LNG in some capacity, so take a moment to learn more about it now.

What is Liquified Natural Gas?

As the name suggests, LNG is natural gas that has been cooled to a liquid state. This process is done for a few reasons, the most common being storage and transportation. When natural gas is liquified, it can be transported via tanker trucks, rail cars, or ships. It can also be stored in large tanks, making it much easier to store large quantities of natural gas.

How is LNG Used?

Liquified natural gas has a variety of uses, both industrial and residential. In industry, it’s used as a fuel for a number of different processes, including power generation, heating, and cooling. It’s also used as a feedstock for the production of a number of chemicals, including ammonia, methanol, and hydrogen. In the home, LNG is most commonly used for cooking and heating. Many people use natural gas stoves in their kitchens, and natural gas is also used to heat water in many homes. By the time gas reaches your home, though, it’s usually warmed back into a gas.

The Safety of Liquified Natural Gas

There are some safety concerns associated with using liquified natural gas, but these can be mitigated with proper safety precautions. One concern is that natural gas is flammable, and if there is a leak, the gas can accumulate and lead to an explosion. Another concern is that natural gas is odorless, so if there is a leak, it can be difficult to detect.

Generally, gas companies add an odorant to make leaks more easily detectable. If you use liquid natural gas in your home, it’s important to be aware of these safety concerns and take the necessary precautions. Make sure to have a working carbon monoxide detector in your home, and if you smell gas, open windows, and doors to ventilate the area and then call your gas company.

Final Thoughts

LNG is a popular fuel that has a variety of uses, both industrial and residential. Although it’s less talked about than oil or gasoline, LNG plays an important part in our daily lives. And it’s important to be aware of the safety measures required with using liquid natural gas and before working on any gas fittings or connections.