There's no silver bullet for clean energy. We need an all-hands-on-deck approach, writes Scott Nyquist. Photo via Getty Images

People in the energy industry don’t have the Oscars. For us, the big event of the year is CERAWeek — a conference stuffed with CEOs, top policymakers, and environmental and energy wonks held annually in March.

CERAWeek 2022, with the theme“Pace of Change: Energy, Climate, and Innovation," meant the return of in-person activations, panels, and networking. Walking and talking between sessions and around the coffee table, it occurred to me that the unofficial theme of the event was “Maybe now we can find middle ground on energy.” This idea came up time and time again, from all kinds of people.

As with too many other issues, the discussion of the future of US energy has become polarized. On one end of the spectrum are those who want everything renewable and/or electrified by ….. last week, whatever the cost. Their mantra for fossil fuels: “Keep them in the ground.”

On the other end, are those who dismiss climate change, saying we can always adapt and that it doesn’t much matter, anyway. Just keep digging and drilling and mining as we have always done. And in the middle are the great majority of Americans who are not passionate either way, but want to be responsible consumers, and also to be able to visit grandma without breaking the bank.

I believe that the transition toward an energy system that is cleaner and less reliant on fossil fuels is realand will ultimately bring substantial benefits. At the same time, I believe that energy security and economics also matter. At a time when inflation was already running high, paying an average of $4.25 a gallon at the pump is piling pain on tens of millions of US households. Ultimately, over decades, the use of electric vehicles will reduce the need for oil and that lower-emissions sources, including renewables, will provide a larger share of the power supply, which today depends largely on gas and coal. But that moment is not now, or next week. Indeed, fossil fuels continue to account for almost 80 percent of US primary energy consumption, and a similar figure globally.

Here is one way to think about the interplay between the energy transition and energy security: “We need an energy strategy for the future—an all-of-the-above strategy for the 21st century that develops every source of American-made energy.” No, that isn’t some apologist for Big Oil; it was President Obama. In 2014, the Obama White House also noted the role of US domestic oil and gas production in enhancing economic resilience and reducing vulnerability to oil shocks. In short, the White House argued, US oil and gas production can bring real benefits for the country. I think that is still true.

Does that mean throwing in the towel on the energy transition and climate change? Absolutely not. There are a variety of ways to pursue the goal of reducing emissions and eventually getting to net-zero emissions. I’ve touched on many of them in previous posts—including reducing methane emissions,pricing carbon, hydrogen, renewables, electric vehicles, urban planning, carbon capture, and negative emissions technologies. In other words, an “all of the above strategy” makes sense in this regard, too.

I don’t know how, or if, a middle ground can be captured. But from what I heard at CERAWeek last year, from people of otherwise widely divergent views, there just may be momentum to get there. A middle-ground consensus rests on three premises. First, we need fossil fuels for energy security and reliability now and until the time when technologies are in place to secure the energy transition. Second, at the same time, we need to be investing in the energy transition because climate change is real and matters. And third, for sustained and systematic progress, government and industry need to work together.

Or, in a phrase, “all of the above.”

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Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally ran on LinkedIn.

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ExxonMobil signs biggest offshore CCS lease in the U.S.

big deal

Spring-based ExxonMobil continues to ramp up its carbon capture and storage business with a new offshore lease and a new CCS customer.

On October 10, ExxonMobil announced it had signed the biggest offshore carbon dioxide storage lease in the U.S. ExxonMobil says the more than 271,000-acre site, being leased from the Texas General Land Office, complements the onshore CO2 storage portfolio that it’s assembling.

“This is yet another sign of our commitment to CCS and the strides we’ve been able to make,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, says in a news release.

The offshore site is adjacent to a CO2 pipeline network that ExxonMobil acquired in 2023 with its $4.9 billion purchase of Plano-based Denbury Resources.

Ammann told Forbes that when it comes to available acreage in the Gulf Coast, this site is “the largest and most attractive from a geological point of view.”

The initial customer for the newly purchased site will be Northbrook, Illinois-based CF Industries, Forbes reported.

This summer, ExxonMobil sealed a deal to remove up to 500,000 metric tons of CO2 each year from CF’s nitrogen plant in Yazoo City, Mississippi. CF has earmarked about $100 million to build a CO2 dehydration and compression unit at the plant.

A couple of days before the lease announcement, Ammann said in a LinkedIn post that ExxonMobil had agreed to transport and annually store up to 1.2 metric tons of CO2 from the $1.6 billion New Generation Gas Gathering (NG3) pipeline project in Louisiana. Houston-based Momentum Midstream is developing NG3, which will collect and treat natural gas produced in Texas and Louisiana and deliver it to Gulf Coast markets.

This is ExxonMobil’s first CCS deal with a natural gas processor and fifth CCS deal agreement overall. To date, ExxonMobil has contracts in place for storage of up to 6.7 metric tons of CO2 per year.

“I’m proud that even more industries are choosing our #CCS solutions to meet their emissions reduction goals,” Ammann wrote on LinkedIn.

ExxonMobil says it operates the largest CO2 pipeline network in the U.S.

“The most fundamental thing we’re focused on is making sure the CO2 is stored safely and securely,” Ammann told Forbes in addressing fears that captured CO2 could seep back into the atmosphere.

Houston-area researchers score $1.5M grant to develop storm response tech platform

fresh funding

Researchers from Rice University have secured a $1.5 million grant from the National Science Foundation to continue their work on improving safety and resiliency of coastal communities plagued by flooding and hazardous weather.

The Rice team of engineers and collaborators includes Jamie Padgett, Ben Hu, and Avantika Gori along with David Retchless at Texas A&M University at Galveston. The researchers are working in collaboration with the Severe Storm Prediction, Education and Evacuation from Disasters (SSPEED) Center and the Ken Kennedy Institute at Rice and A&M-Galveston’s Institute for a Disaster Resilient Texas.

Together, the team is developing and hopes to deploy “Open-Source Situational Awareness Framework for Equitable Multi-Hazard Impact Sensing using Responsible AI,” or OpenSafe.AI, a new platform that utilizes AI, data, and hazard and resilience models "to provide timely, reliable and equitable insights to emergency response organizations and communities before, during and after tropical cyclones and coastal storm events," reads a news release from Rice.

“Our goal with this project is to enable communities to better prepare for and navigate severe weather by providing better estimates of what is actually happening or might happen within the next hours or days,” Padgett, Rice’s Stanley C. Moore Professor in Engineering and chair of the Department of Civil and Environmental Engineering, says in the release. “OpenSafe.AI will take into account multiple hazards such as high-speed winds, storm surge and compound flooding and forecast their potential impact on the built environment such as transportation infrastructure performance or hazardous material spills triggered by severe storms.”

OpenSafe.AI platform will be developed to support decision makers before, during, and after a storm.

“By combining cutting-edge AI with a deep understanding of the needs of emergency responders, we aim to provide accurate, real-time information that will enable better decision-making in the face of disasters,” adds Hu, associate professor of computer science at Rice.

In the long term, OpenSafe.AI hopes to explore how the system can be applied to and scaled in other regions in need of equitable resilience to climate-driven hazards.

“Our goal is not only to develop a powerful tool for emergency response agencies along the coast but to ensure that all communities ⎯ especially the ones most vulnerable to storm-induced damage ⎯ can rely on this technology to better respond to and recover from the devastating effects of coastal storms,” adds Gori, assistant professor of civil and environmental engineering at Rice.

Expert: Repurposing Houston’s infrastructure for a clean energy future

guest column

Houston, often dubbed the “Energy Capital of the World,” is at a pivotal moment in its history. Known for its vast oil and gas reserves, the city is now embracing a new role as a leader in the clean energy transition. This shift is not just about adopting new technologies but also about creatively repurposing existing infrastructure to support sustainable energy solutions.

Houston’s offshore oil wells, many of which are old or abandoned, present a significant opportunity for carbon capture. By repurposing these wells, we can sequester carbon dioxide, reducing greenhouse gas emissions and mitigating climate change. This approach not only utilizes existing infrastructure but also provides a cost-effective solution for carbon management. According to the Greater Houston Partnership, initiatives like these are crucial as Houston aims to lower its climate-changing greenhouse gas emissions. Exxon estimates that just their proposed CCS hub could capture and store 50 million metric tons of CO2 annually by 2030 and 100 million metric tons by 2040.

The proximity of abandoned offshore platforms to the coast makes them ideal candidates for renewable energy substations. These platforms can be transformed into hubs for wind, solar or tidal energy, facilitating the integration of renewable energy into the grid. This repurposing not only maximizes the use of existing structures but also minimizes environmental disruption.

Decommissioned pipelines, which are already in place, offer a ready-made solution for routing renewable energy cables. By using these existing rights of way, Houston can avoid disturbing additional seafloor and reduce the environmental impact of new cable installations. This strategy ensures a smoother transition to renewable energy infrastructure. The U.S. Energy Information Administration notes that Texas, including Houston, leads the nation in wind-generated electricity, highlighting the potential for further renewable energy development.

Onshore oil and gas facilities in Houston also hold potential for clean energy repurposing. Wells that were drilled but never used for oil or gas can be adapted for geological thermal energy storage. This process involves storing excess renewable energy in the form of heat, which can be retrieved when needed, providing a reliable and sustainable energy source. This innovative use of existing wells aligns with Houston’s broader energy transition strategy, which aims to leverage the city’s industrial expertise for a low-carbon future.

Once the land has been remediated, old and abandoned oil fields can be converted into solar farms. This transformation not only provides a new use for previously contaminated land but also contributes to the generation of clean, renewable energy. Solar farms on these sites can help meet Houston’s energy needs while supporting environmental restoration. The Environmental Protection Agency in recent years recognized Houston as the top city in the U.S. for green energy usage, with annual green power usage topping 1 billion kilowatt-hours in 2021.

Houston’s journey towards a clean energy future is a testament to the power of innovation and adaptability. By repurposing existing infrastructure, we can create a sustainable energy landscape that honors the city’s industrial past while paving the way for a greener tomorrow. These strategies highlight the potential for Houston to lead in the clean energy transition, setting an example for cities worldwide.

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Tershara Mathews is the national offshore wind lead at WSP.