Much has been made of the benefits of natural gas in the “de-carbonization” of energy. This only holds true if natural gas is compared to coal, since each unit of energy produced by gas generates 60 % of the CO2 compared to coal. However, the expectation in policy making has been that over time natural gas would serve as a bridge from coal to renewable energy.
In this sense, the massive increase in global gas supply (due to shale gas, coal bed methane, deep gas, etc.) may actually go against de-carbonization, since natural gas may become cheap enough, for a long enough period of time, that it competes against renewable energy, and results in less renewable energy penetration.
At CRH, our extensive background in natural gas and de-carbonization strategies over three decades brings us to believe that there will be a significant increase in natural gas use in time to come, which will cause a large increase in CO2 emissions that has not yet been factored into global climate change policy. In such a scenario, CRH will be very beneficial to situations where CCS projects are linked to natural gas intensive projects, and the resulting CO2 streams are utilized as feedstock for CRH Energy production.
In this energy substitution process, WHySGO renewable energy will effectively increase its penetration in the global energy mix via the production of CRH fuels, which creates significant opportunities for renewable energy firms to partner with us and expand their business, which is facing a threat currently from cheap natural gas.
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