Trump Must Learn The Nation Needs Renewables—Backed Up By Natural Gas
January 2, 2025
The incoming Trump administration promises to promote prosperity by relying on the country’s traditional energies, such as natural gas. His nomination of Chris Wright, who heads a shale gas production company, to run the U.S. Department of Energy underscores that commitment.
Natural gas has significantly transformed America’s energy landscape, enabling the country to become a net exporter and replace coal-fired generation with cleaner fuel options. While natural gas currently dominates the nation’s electricity portfolio, renewable energy sources are the fastest-growing segment in the United States.
Importantly, these two energy sources can complement each other. When the sun isn’t shining, or the wind isn’t blowing, modern peaking plants powered by natural gas can start up within a minute, ensuring a reliable electricity supply. These gas engines can operate between 10% and 30% annually.
“I’m a business leader, and Trump will have a complex agenda,” says Håkan Agnevall, chief executive of Wärtsilä Corporation, in a virtual chat. “When we talk about the switch to renewables and decarbonization, we must consider the social aspects: People need jobs and a future. If we phase out coal, people will need new jobs. The question is, how do we make that transition? The economy has many moving parts, and the president will do many things simultaneously. We need cheap energy, and we must survive as a planet. But there is no easy answer. Green is not black or white.”
According to the National Bureau of Economic Research, a one percent increase in “fast-reacting” fossil fuel technologies leads to a .88 percent increase in green energy over the long run.
Think back to 2015. Trump promised to restore coal to its place atop America’s energy throne while dissing renewable energy and dropping out of the Paris Climate Agreement. However, renewables are now the cheapest form of energy, accounting for 24% of electricity generation, surpassing coal in this country. Meanwhile, natural gas makes up about 46% of the electricity portfolio—the fuel that has replaced coal-fired generation.
President Biden had a plan to replace those lost jobs: According to Energy Innovation, the Inflation Reduction Act, Bipartisan Infrastructure Law, and CHIPS and Science Act spurred more than $500 billion in private investments while creating more than 6.2 million new jobs.
Coal Country Has Suffered Enough
Coal country has seen the benefits. For example, Nucor Corp. said it would buy 250 megawatts of solar energy from NextEra Energy Resources for a steel plant it is building in Kentucky. The electric battery maker SPARKZ is building a 482,000-square-foot factory in Bridgeport, W.V., which will employ at least 350 people and start producing batteries for forklifts and farm equipment.
At the same time, West Virginia sits above the Marcellus Shale basin, which accounts for 95% of the state’s gas production. In 2019, the state produced more natural gas than coal, sending gas from the basin to the Northeast, Midwest, and Gulf Coast. The West Virginia Chamber of Commerce says that 20% to 25% of West Virginia’s jobs are indirectly tied to its energy sector, using the so-called multiplier effect, which accounts for suppliers and vendors.
Natural gas and renewables are symbiotic: They can work together to reduce global CO2 emissions while creating jobs. Wärtsilä internal studies show that by including those “balancing power plants” that provide natural gas, we could save about $67 trillion by 2050. The study also concludes that we can reduce CO₂ emissions by 21% by 2050—a significant figure in the fight for net zero.
“Today, renewables are the most affordable energy source,” says Agnevall. “It is cheaper than anything else. But it has challenges. We conclude that you cannot get to net zero just by using renewables. We need to balance power with natural gas. If we don’t use natural gas to balance the renewables, we will spend more money— equivalent to 2% of the world’s GDP. Using the balancing, we can phase out big coal plants worldwide.”
The natural gas industry must be cautious not to jeopardize its future. One significant issue it faces is methane leakage, which is the most potent greenhouse gas. Marcelo Mena, Chile’s former minister of the environment, told me, “If the industry doesn’t reduce methane leaks, that will be a roadblock to a cleaner tomorrow.”
The Biden Administration has urged the natural gas sector to tackle methane emissions and has implemented several measures to address this problem. However, it is unclear how the Trump Administration will approach the issue.
As for Wärtsilä, it makes gas engines. Agnevall points to Texas, the country’s oil and gas hub. However, it is also the national leader in wind production, accounting for 28% of the country’s output. It’s the second-largest producer of solar power and the second in the nation in terms of battery capacity. Natural gas makes it possible.
The executive adds that a decade ago, combined-cycle natural gas plants were predominately baseload facilities that ran 24 hours a day. Nowadays, 70% of natural gas plants balance power and support renewables, noting that the fuel is a bridge fuel that will last decades, not a few years. Wärtsilä is also providing advanced energy storage services. It has installed 200 megawatts of such capacity in Texas.
“The major technologies for this transition are already here,” says Agnevall. “They don’t hinge on some technology that doesn’t exist today. There are a lot of restrictions to building renewables on the wind power side. We need to create pricing mechanisms. We need to set up a market for the balancing power.”
Biden’s energy strategy is different from Trump’s, who still can’t ignore the impact of renewables on today’s electricity portfolio and climate goals. Natural gas is supporting the growth of green energy—something the incoming administration should acknowledge and support.
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