Utility major National Grid announces decarbonization plans by 2050

National Grid, the multinational electricity and gas utility company, has announced plans to phase out hydrocarbons from its heating systems in Massachusetts and New York by 2050, mostly by extending the use of electrical heating pumps and obtaining renewable natural gas (RNG).

By 2050, the utility giant hopes to have New York and Massachusetts running entirely on renewable natural gas, relying on RNG obtained from agricultural lands, landfills, water treatment plants, and imports rather than natural gas.

Electric heat pumps use energy supplied from sources such as wind and solar and are expected to provide 50% of building heat. According to the firm, the remaining 50% would be obtained from "fossil-free gas" and a combination of electric fossil-free gas systems. Currently, natural gas fuels approximately 57% of building heating systems in New York and Massachusetts, while oil fuels 25%.

It is worth noting that New York just passed a USD 220 billion budget that excluded a measure that would have made the state the first to prohibit the use of natural gas and other fossil fuels in residential development.

Companies and trade associations such as National Grid have pushed against the bill, claiming that abandoning gas will increase customer bills because electric heat is significantly more expensive. But by 2030, National Grid hopes to meet 10-20% of gas demand using renewable natural gas, while transitioning a lot of consumers who heat with oil to electric heat pumps.

The utility's strategy differs from New York and Massachusetts climate action plans, which suggest that families electrify virtually all their heat pumps by 2050, calling their proposal a hybrid approach. When gas is caught from manure, food waste, or landfills and converted into transportation or heating fuel, RNG is created.

The gas sells for more than market prices, and supplies are more limited than ordinary gas. Other state utilities have set lofty goals for renewable natural gas. Last year, SoCalGas' chief environmental officer announced that the company aims to procure 5% of its gas from renewable energy sources by 2022 and 20% by 2030.

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https://leaderpost.com/pmn/business-pmn/national-grid-announces-plan-to-decarbonize-by-2050