NATURAL GAS nature’s choice for clean energy Technical Review Provided By: ecology and environment, inc. www.nationalfuelgas.com Global Environmental Specialists www.ene.com Introduction Natural gas is part of the carbon management and energy security solution. Clean, efficient, abundant, American-produced natural gas offers a realistic solution, helping to reduce greenhouse gas emissions while at the same time providing the reasonably priced, reliable energy source our country needs to sustain and grow our economy. With global climate change on everyone’s mind and how to lighten our “carbon footprint” on everyone’s to-do list, all the talk is about switching to renewable “green” fuels, such as wind and solar energy. Realistically, however, these energy sources currently only supply about 2% to 3% of our nation’s energy needs and cannot be the only solution to help us reduce greenhouse gas emissions to levels considered “safe” by most scientists. You might ask why natural gas? When compared to other traditional fuels it’s the natural choice. IT’S MORE EFFICIENT… 2 HAS LOWER EMISSIONS… IS MORE ECONOMICAL… …AND PROMOTES ENERGY SECURITY EMISSIONS POUNDS PER BILLION BTU OF ENERGY INPUT SOURCE: Energy Information Administration NATURAL GAS NATURAL GAS CO 2 NATURAL GAS NO X OIL COAL NATURAL GAS SO 2 NATURAL GAS PARTICULATES Emissions Natural gas—among the cleanest, most efficient, cost effective, and abundant energy sources in the United States—produces less harmful emissions than its fuel counterparts: coal, oil, and propane. Natural gas produces less carbon dioxide (CO2)—the primary greenhouse gas believed to be contributing to global climate change—than other commonly used energy sources. The primary byproducts from the use of natural gas are CO2 and water. In fact, natural gas energy emits approximately 45% less CO2 than coal fueled electricity and nearly 30% less CO2 than fuel oil. Natural gas produces virtually no emissions of sulfur dioxide (SO2)—the primary pollutant that forms acid rain—particulate matter, or mercury, and far less nitrogen oxides (NOx)—the primary precursor in the formation of smog— than either coal or oil. In addition, it produces virtually no solid waste and has much less impact on water quality than these competing energy sources. Natural gas is among the most efficient and cleanest energy sources. 3 Efficiency Natural gas is three times as efficient as electricity when total energy efficiency is compared. 100 UNITS OF SOURCE ENERGY Electricity has to be produced at large central plants by using something else as a fuel source. While this process can generate a lot of power, it also generates a lot of waste—and wastes a lot of energy. The environmental impacts from energy consumption apply to more than the energy used directly at our homes and businesses. When the entire cycle of producing, processing, and transporting is considered, natural gas is delivered to the consumer with a “total energy efficiency” of about 90% compared with about 27% for electricity. Extraction, Processing, and Transportation Losses 92 Distribution Losses UNITS OF ENERGY 90 UNITS DELIVERED TO CUSTOMER NATURAL GAS 100 UNITS OF SOURCE ENERGY Extraction, Processing, and Transportation Losses 88 UNITS OF ENERGY Conversion Losses 29 UNITS OF ENERGY Distribution Losses 27 UNITS DELIVERED TO CUSTOMER ELECTRICITY Based on Current Fossil Fuel Mix of Coal, Oil, and Natural Gas SOURCE: Energy Solutions Center Centralized electricity consumes significant energy, with resulting polluting emissions, during all stages of production and delivery. The point of greatest inefficiency is at the electric generating plant, where roughly two-thirds of the input energy is lost as heat in the production of steam to turn large turbine/generators. Don’t be fooled by the stated higher end-use efficiency of electric equipment. In a particular end-use application, such as water heating, the total energy required for the gas option is less when total fuel cycle is considered. The overall efficiency of natural gas more than offsets the difference. 4 ELECTRICITY $33.41 MMBTU Compared with Other Energy Sources, Natural Gas is the Most Economical 2009 U.S. REPRESENTATIVE AVERAGE UNIT COST SOURCE: US DOE, Federal Register, Vol. 74 PROPANE $21.02 MMBTU OIL $16.22 Although the actual prices vary across the country, natural gas is largely the most economical form of energy available regardless of which competing fuel it is measured against, the application involved, or the geographic location of the consumer. MMBTU NATURAL GAS $11.12 MMBTU When equivalent energy content is considered, natural gas is the most economical energy choice for residential and commercial applications. Energy Security Today, approximately 85% of the natural gas used in the U.S. is produced domestically, with the remaining 15% coming primarily from Canada. Advances in technology have made finding and producing natural gas more efficient and successful with less impact on the environment. New and evolving technology also helps natural gas producers extract new resources from old, mature fields. The natural gas resource base continues to expand—estimates of its size are larger today than in the early 1990s, with the current estimate at a 100-year supply. Since natural gas is produced here in the U.S., higher demand for gas will create jobs here in the U.S. Furthermore, natural gas is a reliable source of fuel because the pipeline delivery system is underground and protected from weather-related and unforeseen disruptions. Nearly all of the natural gas used in the U.S. is from North America sources, unlike oil, 60% of which is imported from foreign, and often, politically unstable countries. OF SUPPLY FROM U.S. NATURAL GAS RESERVES 5 Comparing the bene Energy Source 6 Emissions Natural Gas Low NOx, SOx, and CO2 emissions, virtually no particulates, and no solid waste or mercury generation Electricity Fossil fuel generating plants produce more NOx, SOx, CO2 , particulates, solid waste, and mercury than the direct use of natural gas Oil Oil equipment produces more CO2, NOx, SOx, particulates and mercury than natural gas Propane Propane equipment produces more CO2 than natural gas Wood Wood equipment produces more CO2, particulates and solid waste than natural gas, and can produce significant smoke and odors efits of natural gas Efficiency and Economics Energy Reliability/Security Very efficient, delivering approximately 90% of source energy to households, and typically less expensive than competing fuels 97% of U.S. natural gas supply is produced in North America, 85% within the U.S. itself, with the bulk of the remainder from Canada Fossil fuel plants are very inefficient, delivering less than 30% of source energy to households, electricity is typically 2 to 4 times more expensive on an energy-equivalent basis Electric systems/equipment are more subject to outages due to weather conditions and high system demands, often generated by foreign oil Fuel oil is more expensive on an energyequivalent basis and requires higher expense to clean and maintain The majority of the oil supply is sourced from overseas production, requires storage tank and prepayment, and often originates in unstable countries Propane is more expensive on an energy equivalent basis, very regionalized and highly variable The majority of propane supply is from overseas production and requires storage tanks and prepayment Wood is very inefficient and requires hauling, storage, and ash disposal; prices are regionalized and highly variable Requires constant stoking to maintain the availability of heat; there are restrictions on wood supplies; and availability jeopardizes carbon capturing forests 7 The Direct Use of Natural Gas Maximizes Efficiency and Minimizes Environmental Impact The most environmentally friendly and economical way to benefit from natural gas is to use it directly in our homes and businesses. When comparing efficiency and environmental impact, it is important to consider the full fuel cycle of the energy source. Considering only the energy used at the point of use can dramatically understate the total energy consumed and the associated emissions and pollutants, particularly with secondary energy sources such as electricity. Incorporating the true overall energy efficiency and emissions on a full fuel cycle basis reveals that the direct use of natural gas delivers significant benefits…less total energy consumed, lower energy costs and reduced emissions. Space heating is the most common use of natural gas in our region due to the comfort, convenience, reliability, and lower operating costs. But these same savings and benefits are available for a wide variety of indoor and outdoor residential equipment and commercial and industrial applications, including: RESIDENTIAL NON-RESIDENTIAL •Space Heating •Space Heating and Air Conditioning •Water Heating •Clothes Drying •Cooking •Fireplaces •Outdoor Equipment •On-site Power Generation •Advanced Heating and Cooling Systems •Emergency Generators 8 •Domestic Water Heating •Humidity Control •On-site Power Generation •Compressed Air •Process Water Heating •Water and Wastewater Pumping •Industrial Process Heating •Solids and Liquid Waste Treatment •Commercial Food Service •Transportation Fuel •Process Cooling and Refrigeration •Emergency Generators High-Efficiency natural gas uses—space heating, water heating, household/ commercial appliances, and industrial process equipment—are integral parts of high performance building design. Installed within well insulated buildings with high performance windows and doors, integrated high efficiency lighting, heat recovery and control systems, natural gas equipment provides increased energy savings and exceptional comfort. And for those wishing to take energy efficiency to the next level, the use of natural gas for on-site electric generation, cooling, commercial refrigeration, and other non-traditional uses of natural The Tom Ridge Environmental Center in Erie Pennsylvania gas, presents exciting new opportunities to signifiearned LEED accreditation from the U.S. Green Building Council, thanks in part to the high-efficiency cantly reduce the total use of our energy resources. natural gas boiler system chosen for this state-ofThe direct use of natural gas benefits both the the-art educational, research, and visitor center. environment and the bottom line, reducing our dependence on power obtained from less efficient and more polluting fossil-fueled electric generating plants and reducing the need to construct costly new generating plants. Natural gas can warm our homes and businesses, provide hot water, cook our food, dry our clothes, generate clean power, and fuel our industries—all without destroying our environment. It does so economically, with proven and reliable technology and it is produced right here in North America…all of which makes natural gas the fuel of choice. Partnering with Renewables Natural gas has significantly fewer emissions than oil, coal, and propane. Additionally, there is an abundant, domestic supply that is readily available for use. This creates an unprecedented opportunity to use gas as a path to a new, greener energy economy that relies on efficiency and conservation, renewable energy, and low-carbon natural gas. A solar thermal-assisted, gas hot water heater is an example of combined technologies delivering increased efficiencies. Natural Gas is a critical piece of the hybrid energy solution, providing a reliable clean fuel for central electrical generation or on-site applications. Natural gas is part of the sustainable mix that will meet America’s energy needs. 9 Green Buildings and Natural Gas The use of natural gas can advance green building. Also referred to as sustainable design, green building is a whole-building and systems approach to facility design, construction, and operation that employs techniques and strategies to minimize environmental impacts and reduce energy consumption of buildings while contributing to the health and productivity of the occupants. Therefore, the use of high efficiency natural gas technologies and equipment can help a building project achieve environmental certification. Leadership in Energy and Environmental Design (LEED) is the nationally recognized rating system for green buildings in the U.S. developed by the United States Green Building Council (USGBC). The LEED system awards points in five categories— Sustainable Sites, Water Efficiency, Energy and Atmosphere, Materials and Resources, and Indoor Environmental Quality—and includes options to achieve additional points for innovation and regional credits. The level of LEED certification is based on the number of points achieved. Certification levels are Certified, Silver, Gold, and Platinum. The LEED category with the most number of points available is Energy and Atmosphere. Green Globes is another green building rating system administered by The Green Building Initiative. Green Globes utilizes an on-site assessment and rating tool assessing building performance on a 1,000-point scale in multiple categories: Site, Energy, Water, Resources, Indoor Environment, Emissions, and Project/Environmental Management. Energy Star is a label introduced by the EPA in 1992 to identify and promote energy efficient products as well as residential and non-residential buildings. The Energy Star label is available for 13 types of commercial buildings, including retail stores, hotels, schools, supermarkets, and more. Energy Star buildings normally use 35% less energy and emit 35% less CO2 into the atmosphere than average buildings. 10 Natural gas has many uses: residential, commercial, and industrial. It is among the CLEANEST energy sources and its many applications serve to decrease harmful pollution levels from all sectors. Summary of Natural Gas Benefits More Efficient Lower Cost per BTU Less CO2 Domestic Supply Reduce Demand on Electric Grid Less SO2 and NOx The cleanest energy is the energy not consumed—SO PLEASE CONSERVE! 11 For Additional Information on the Benefits and Uses of Natural Gas, See the Following Resources: American Clean Skies Foundation www.cleanskies.org American Gas Association www.aga.org American Gas Foundation www.gasfoundation.org American’s Natural Gas Alliance www.newnaturalgas.org Council for Responsible Energy www.comfortableresponsible.org Energy Solutions Center www.energysolutionscenter.org Natural Gas Supply Association www.naturalgas.org Technical Review Provided By: ecology and environment, inc. www.nationalfuelgas.com Global Environmental Specialists www.ene.com