America’s liquefied natural gas boost has a climate change problem, following a report released on Monday.
The US energy industry is scrambling to construct dozens of pricey export terminals that can be utilized to ship low-cost natural gas to China and different fast-growing economies that want to move away from coal.
Whereas these investments make sense today, they are going to possibly be derailed in the longer run by a mix of plunging renewable energy costs and rising local weather change issues, based on the Global Energy Monitor, a network of researchers monitoring fossil gas projects.
These dual forces will make many LNG projects “unprofitable in the long run,” placing a lot of the $1.3 trillion of investments within the sector at risk, the report mentioned.
The issue is that the LNG boom will create harmful methane emissions — a greenhouse gas that’s roughly 30 times more harmful than carbon dioxide emissions. Each coal and pure gasoline produce CO2 emissions, although pure gasoline creates far lower than coal.
If the proposed LNG enlargement goes ahead, the local weather effect can be twice as damaging as the present put in base of coal in the USA.
“We all know that LNG isn’t an excellent reply climate-clever,” Ted Nace, founder, and director of the Global Energy Monitor mentioned in an interview. “It would even be fairly silly financially — for all the reasons that coal turned out to be a bad investment ten years ago.”
Nace stated that natural gas can now not credibly be seen as a bridge fuel between coal and renewables due to methane leaks. These accidental emissions happen throughout drilling, within the pipelines or throughout delivery.
He stated that is why the United Nations’ Intergovernmental Panel on Climate Change has referred to as for reducing natural gas within the coming a long time to limit global warming to 1.5 degrees Celsius above pre-industrial levels.