Natural Gas and Cleantech
Cleantech fans: it is time to educate yourselves. Set aside for a moment your interest in wind energy, solar, bio-based chemicals, biofuels, and electric vehicles and read this week’s story about what the U.S. may do with its abundant natural gas.
Here are some things that the country can do with natural gas: it can make electricity, upgrade it to useful chemicals, use it as a transportation fuel, or export it. The U.S. has access to so much natural gas that it could do all four things. And do them all cheaply, and profitably compared to our trade partners.
At this point, even if you only use your knowledge about the promise of cleantech at cocktail parties, you should start to think about the impact of abundant natural gas on your favorite technologies.
My colleagues Jeff Johnson and Alex Tullo’s feature asks what effect DOE policies on liquefied natural gas exports might have on the chemical industry and the wider economy. The flip question – not addressed in the story — is what impact natural gas that stays in the U.S. will have on the competitiveness of renewable energy and materials innovations.
At the recent ARPA-E show, I saw energy technology that is seeking to take advantage of abundant natural gas – and the speakers at the conference were rather fixated on the topic. (see my story on the ARPA-E Show in this week’s issue). Alert readers will recognize which minority member of the Senate appears in both articles.
I hate to give away the ending of the natural gas story but (spoiler alert!) U.S. natural gas prices will stay low even if we ramp up exports. When I was in school and my class learned about the Panama Canal, one of my classmates couldn’t understand why engineers had to build locks to compensate for the different sea levels between the Pacific and Atlantic. Once you connected the two oceans, wouldn’t they level out? Well, no.
Similarly, there is a small aperture through which natural gas would escape U.S. borders via the export market. Liquification imposes a significant surcharge on every unit of gas, it costs a lot to build a plant to do it, the export hubs need to be brought online, and there is a backlog in approving facilities. But read the full story and get the full picture.