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SoCalGas – New Economy-wide Decarbonization Analysis Details key role of Clean Fuels Network in Achieving California’s 2045 Climate Goals, Hydrogen Included

socalgas clean fuels network hydrogen

SoCalGas – new economy-wide decarbonization analysis details key role of clean fuels network in Achieving California’s 2045 Climate Goals, hydrogen included.

A new economy-wide technical analysis released by Southern California Gas Co. (SoCalGas) underscores the essential role that clean fuels like hydrogen and renewable natural gas (RNG) will play in a carbon-neutral California.

SoCalGas’ The Role of Clean Fuels and Gas Infrastructure in Achieving California’s Net Zero Climate Goal examines the complexity of reaching 100% net zero emissions in California by 2045, and for the first time offers detailed solutions that include the clean fuels1 infrastructure needed to support and accelerate decarbonization efforts.

The analysis also offers solutions for the hard-to-abate transportation and industrial sectors and supports existing state climate and energy policies, including resilient and reliable electrification.

Maryam Brown, SoCalGas President.

Climate change and the imperative to reduce and eliminate greenhouse gas emissions are driving a transformation of our nation’s entire energy system.

“Across the United States, electric and gas utilities are re-envisioning how they deliver the energy Americans need. SoCalGas, having set the goal to achieve net zero carbon emissions in everything we do by 2045, is leading the effort in California to accelerate a more equitable and affordable energy transition and to help establish Los Angeles as North America’s first clean fuels hub.”

Key Findings and Analysis

SoCalGas’ technical analysis highlights that a clean fuels network made, in part, by leveraging existing gas infrastructure to deliver clean fuels and to manage carbon can allow California to achieve its net zero goals more affordably and with less risk than pursuing other pathways.

Key takeaways from the new technical analysis include:

  • Electrification combined with clean fuels, carbon management, and technologies like fuel cells deliver the most affordable, resilient, and technologically proven path to full carbon neutrality.
  • California, by leveraging the gas system to deliver clean fuels and to manage carbon, can reach 100% net zero goals more affordably, more equitably, and with less risk of power disruptions, customer conversion barriers, and technological limitations.
  • Rapidly scaling up clean fuels initiatives today is vital to putting a clean fuels network in place in time to help California meet its climate goals. The faster stakeholders can collaboratively act to expand and accelerate clean fuels initiatives, the quicker California can decarbonize.

The technical analysis supporting The Role of Clean Fuels and Gas Infrastructure in Achieving California’s Net Zero Climate Goal builds on existing climate models used in similar studies previously commissioned by the California Air Resources Board and the California Energy Commission. In addition, the modeling work and results of the technical analysis released were independently verified by scientists at leading research institutions.

Jack Brouwer, director of the National Fuel Cell Research Center and Advanced Power and Energy Program at the University of California, Irvine.

Clean fuels, including green hydrogen, have an important role to play as California transforms to a carbon neutral economy over the next 20 years.

“As this analysis shows, a clean fuels network that carries decarbonized gas provides important features of lower cost, massive and long-duration storage, and resiliency that Californians demand.”

Lew Fulton, Director of the Sustainable Transportation Energy Pathways Program, of the Institute for Transportation Studies at University of California Davis.

Solving the carbon neutrality puzzle will take the work of many collaborators and numerous technologies to provide resilient, reliable and decarbonized energy, economy-wide.

“SoCalGas’ in-depth analysis, building on previous studies, shows it can be done, with the development of a clean fuels network.”

Erin M. Blanton, senior research scholar at the Center on Global Energy Policy at Columbia University’s School of International and Public Affairs.

Carbon neutrality goals, whether local, regional or national, cannot be achieved without accounting for ways to decarbonize hard-to-abate sectors of the economy.

“This analysis shows there is a way to achieve these goals, utilizing California’s vast, existing, natural gas infrastructure.”

SoCalGas’ technical analysis demonstrates that a clean fuels network helps support the most cost-effective, resilient, and lowest risk pathway to full carbon neutrality by:

  • Supporting electricity decarbonization: As more solar and wind are integrated onto the grid, and as more end uses are electrified, a clean fuels network supports the reliability of the electric grid by providing indispensable, flexible, and dispatchable power at times when renewables are intermittent.
  • Providing decarbonized energy for hard-to-abate sectors: clean fuels will be essential to decarbonizing hard-to-abate sectors of the economy like heavy-duty transportation and industrial activities, which currently account for ~20% of California’s greenhouse gas emissions.
  • Lowering risk through diversification: The analysis shows a diverse set of decarbonization levers reduces the risk of over-dependence on any one technology.
  • Delivering a more affordable and equitable transition: The modeling reveals a clean fuels network is worth between ~$45-$75 billion in savings in transition costs compared to full, economy-wide decarbonization in 2045 with a no fuels network.

Hghlights:

  • Building on previous state and industry studies, new research evaluates potential pathways to reach 100% carbon neutrality in California by 2045
  • Analysis demonstrates how a clean fuels network supports decarbonization and electrification
  • Findings outline the role existing natural gas infrastructure can play in advancing clean fuels adoption and achieving the most cost-effective, resilient, and lowest risk pathway to carbon neutrality

READ the latest news shaping the hydrogen market at Hydrogen Central

New Economy-Wide Decarbonization Analysis Details Key Role of Clean Fuels Network in Achieving California’s 2045 Climate Goals, LOS ANGELES, October 26, 2021

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