Investing in coal plants carries real risk

By The Bond Buyer


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Andrew Ackerman's January 13 article "Climate Disclosure Sought" accurately reflects the current state of public debate on disclosure of financial risk to investors in tax-exempt bonds that support new and existing coal-fired electric generation plants. It is a debate fraught with paradox and risk.

Federal energy experts, the Rural Utility Service, have stopped allowing federal tax dollars to be invested in these coal plants because they are risky investments. In large measure this is due to impending costs imposed due to new carbon regulations.

Federal finance experts at the Treasury Department have ignored this energy expertise and issued no guidance to bond investors, as if the risk to a federal tax dollar were somehow different than a bondholder's dollar.

Our credit rating agencies seem equally confused. In your article a representative of Moody's defends a recent bond disclosure for a new coal plant because the offering document contains some discussion of carbon risk. The disclosure he defends ignores the same worrisome set of credit risks that Moody's warned about in February 2008 in a special report on climate risk.

Developers of coal plants and utilities face not only the risk of new carbon regulations and the costs from them, but they also face compliance costs with regard to sulfur dioxide, mercury and other air pollution requirements.

The recent ash spill in Tennessee has added future regulation of ash disposal onto the list of new costs. The volatility of future coal costs have been raised as a matter of concern by federal agencies as well.

Moody's and Standard & Poor's have raised the issue of "cumulative risk" in their reports. Future carbon regulation alone creates a significant financial risk to coal as a future resource for electricity generation. However, as a pure financial play it is the combination of regulatory burdens and shifting market realities related to coal generation that requires a full explanation for investors.

The recent changes in the nation's fortunes related to its natural gas supply have placed the rising cost of coal into stark relief against its competition: wind, solar, natural gas and energy efficiency. Progress Energy's recent decision to close much of its existing coal fleet rests on its own cost-benefit analysis of these risks.

Comprehensive disclosure of information to bond investors is essential to smooth market functioning. This needs to include untidy facts like the federal government pulling out of financing coal plants, as well as disclosure of the cumulative costs from factoring the real cost of coal into the price of electricity, even if it shows that coal-plant investments are no longer competitive.

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Entergy Creates COVID-19 Emergency Relief Fund to Help Customers in Need

Entergy COVID-19 Emergency Relief Fund provides financial assistance to ALICE households, low-income seniors, and disabled customers via United Way grants for rent, mortgage, utilities, food, and bill payment support during COVID-19, alongside a disconnect moratorium.

 

Key Points

A shareholder-funded program offering essential grants and bill support to Entergy customers affected by COVID-19.

✅ Shareholders commit $700,000; grants distributed via United Way partners.

✅ Focus on ALICE families, low-income seniors, and disabled customers.

✅ Disconnects suspended; bill tools and LIHEAP advocacy underway.

 

In an effort to help working families experiencing financial hardships as a result of the coronavirus pandemic, the Entergy Charitable Foundation has established the COVID-19 Emergency Relief Fund, recognizing the need for electricity across communities.

"The health and safety of our customers, employees and communities is Entergy's top priority," said Leo Denault, chairman and CEO of Entergy Corporation. "For more than 100 years, Entergy has never wavered in our commitment to supporting our customers and the communities we serve. This pandemic is no different. During this challenging time, we are helping lessen the impact of this crisis on the most vulnerable in our communities. I strongly encourage our business partners to join us in this effort."

As devastating and disruptive as this crisis is for everyone, we know from past experience that those most heavily impacted are ALICE households (low-wage working families) and low-income elderly and disabled customers, who often face energy insecurity during such events - roughly 40%-50% of Entergy's customer base.

"We know from experience that working families and low-income elderly and disabled customers are hardest hit during times of crisis," said Patty Riddlebarger, vice president of Entergy's corporate social responsibility. "We are working quickly to make funds available to community partners that serve vulnerable households to lessen the economic impact of the COVID-19 crisis and ensure that families have the resources they need to get by during this time of uncertainty."

To support our most vulnerable customers, Entergy shareholders are committing $700,000 to the COVID-19 Emergency Relief Fund to help qualifying customers with basic needs such as food and nutrition, rent and mortgage assistance, and other critical needs, alongside measures like Texas utilities waiving fees that ease household costs, until financial situations become more stable. Grants from the fund will be provided to United Way organizations and other nonprofit partners across Entergy's service area that are providing services to impacted households.

Company shareholders will also match employee contributions to the COVID-19 relief efforts of local United Way organizations up to $100,000 to maximize impact.

In addition to establishing the COVID-19 Emergency Relief Fund, Entergy is taking additional steps to support and protect our customers during this crisis, similar to PG&E's pandemic response measures, including:

With support from our regulators, we are temporarily suspending customer disconnects, as seen in New Jersey and New York policies, as we continue to monitor the situation.

We are working with our network of community advocates, as the industry coordination with federal partners continues, to request a funding increase of the Low Income Home Energy Assistance Program to help alleviate financial hardships caused by COVID-19 on vulnerable households.

We are developing bill payment solutions and tools to help customers pay their accumulated balances once the disconnect moratorium is lifted.

Already in place to support vulnerable customers is Entergy's The Power to Care program, which provides emergency bill payment assistance to seniors and disabled individuals. To mark the 20th anniversary of Entergy's low-income customer initiative, the limit of shareholders' dollar for dollar match of customer donations was increased from $500,000 to $1 million per year. Shareholders continue to match employee donations dollar for dollar with no limit.

 

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Three Mile Island at center of energy debate: Let struggling nuclear plants close or save them

Three Mile Island Nuclear Debate spotlights subsidies, carbon pricing, wholesale power markets, grid reliability, and zero-emissions goals as Pennsylvania weighs keeping Exelon's reactor open amid natural gas competition and flat electricity demand.

 

Key Points

Debate over subsidies, carbon pricing, and grid reliability shaping Three Mile Island's zero-emissions future.

✅ Zero emissions credits vs market integrity

✅ Carbon pricing to value clean baseload power

✅ Closure risks jobs, tax revenue, and reliability

 

Three Mile Island is at the center of a new conversation about the future of nuclear energy in the United States nearly 40 years after a partial meltdown at the Central Pennsylvania plant sparked a national debate about the safety of nuclear power.

The site is slated to close in just two years, a closure plan Exelon has signaled, unless Pennsylvania or a regional power transmission operator delivers some form of financial relief, says Exelon, the Chicago-based power company that operates the plant.

That has drawn the Keystone State into a growing debate: whether to let struggling nuclear plants shut down if they cannot compete in the regional wholesale markets where energy is bought and sold, or adopt measures to keep them in the business of generating power without greenhouse gas emissions.

""The old compromise — that in order to have a reliable, affordable electric system you had to deal with a significant amount of air pollution — is a compromise our new customers today don't want to hear about.""
-Joseph Dominguez, Exelon executive vice president
Nuclear power plants produce about two-thirds of the country's zero-emissions electricity, a role many view as essential to net-zero emissions goals for the grid.

The debate is playing out as some regions consider putting a price on planet-warming carbon emissions produced by some power generators, which would raise their costs and make nuclear plants like Three Mile Island more viable, and developments such as Europe's nuclear losses highlight broader energy security concerns.

States that allow nuclear facilities to close need to think carefully because once a reactor is powered down, there's no turning back, said Jake Smeltz, chief of staff for Pennsylvania State Sen. Ryan Aument, who chairs the state's Nuclear Energy Caucus.

"If we wave goodbye to a nuclear station, it's a permanent goodbye because we don't mothball them. We decommission them," he told CNBC.

Three Mile Island's closure would eliminate more than 800 megawatts of electricity output. That's roughly 10 percent of Pennsylvania's zero-emissions energy generation, by Exelon's calculation. Replacing that with fossil fuel-fired power would be like putting roughly 10 million cars on the road, it estimates.

A closure would also shed about 650 well-paying jobs, putting the just transition challenge in focus for local workers and communities, tied to about $60 million in wages per year. Dauphin County and Londonderry Township, a rural area on the Susquehanna River where the plant is based, stand to lose $1 million in annual tax revenue that funds schools and municipalities. The 1,000 to 1,500 workers who pack local hotels, stores and restaurants every two years for plant maintenance would stop visiting.

Pennsylvanians and lawmakers must now decide whether these considerations warrant throwing Exelon a lifeline. It's a tough sell in the nation's second-largest natural gas-producing state, which already generates more energy than it uses. And time is running out to reach a short-term solution.

"What's meaningful to us is something where we could see the results before we turn in the keys, and we turn in the keys the third quarter of '19," said Joseph Dominguez, Exelon's executive vice president for governmental and regulatory affairs and public policy.

The end of the nuclear age?

The problem for Three Mile Island is the same one facing many of the nation's 60 nuclear plants: They are too expensive to operate.

Financial pressure on these facilities is mounting as power demand remains stagnant due to improved energy efficiency, prices remain low for natural gas-fired generation and costs continue to fall for wind and solar power.

Three Mile Island is something of a special case: The 1979 incident left only one of its two reactors operational, but it still employs about as many people as a plant with two reactors, making it less efficient. In the last three regional auctions, when power generators lock in buyers for their future energy generation, no one bought power from Three Mile Island.

But even dual-reactor plants are facing existential threats. FirstEnergy Corp's Beaver Valley will sell or close its nuclear plant near the Pennsylvania-Ohio border next year as it exits the competitive power-generation business, and facilities like Ohio's Davis-Besse illustrate what's at stake for the region.

Five nuclear power plants have shuttered across the country since 2013. Another six have plans to shut down, and four of those would close well ahead of schedule. An analysis by energy research firm Bloomberg New Energy Finance found that more than half the nation's nuclear plants are facing some form of financial stress.

Today's regional energy markets, engineered to produce energy at the lowest cost to consumers, do not take into account that nuclear power generates so much zero-emission electricity. But Dominguez, the Exelon vice president, said that's out of step with a world increasingly concerned about climate change.

"What we see is increasingly our customers are interested in getting electricity from zero air pollution sources," Dominguez said. "The old compromise — that in order to have a reliable, affordable electric system you had to deal with a significant amount of air pollution — is a compromise our new customers today don't want to hear about."

Strange bedfellows

Faced with the prospect of nuclear plant closures, Chicago and New York have both allowed nuclear reactors to qualify for subsidies called zero emissions credits. Exelon lobbied for the credits, which will benefit some of its nuclear plants in those states.

Even though the plants produce nuclear waste, some environmental groups like the Natural Resources Defense Council supported these plans. That's because they were part of broader packages that promote wind and solar power, and the credits for nuclear are not open-ended. They essentially provide a bridge that keeps zero-emissions power from nuclear reactors on the grid as renewable energy becomes more viable.

Lawmakers in Pennsylvania, Ohio and Connecticut are currently exploring similar options. Jake Smeltz, chief of staff to state Sen. Aument, said legislation could surface in Pennsylvania as soon as this fall. The challenge is to get people to consider the attributes of the sources of their electricity beyond just cost, according to Smeltz.

"Are the plants worth essentially saving? That's a social choice. Do they provide us with something that has benefits beyond the electrons they make? That's the debate that's been happening in other states, and those states say yes," he said.

Subsidies face opposition from anti-nuclear energy groups like Three Mile Island Alert, as well as natural gas trade groups and power producers who compete against Exelon by operating coal and natural gas plants.

"Where we disagree is to have an out-of-market subsidy for one specific company, for a technology that is now proven and mature in our view, at the expense of consumers and the integrity of competitive markets," NRG Energy Mauricio Gutierrez told analysts during a conference call this month.

Smeltz notes that power producers like NRG would fill in the void left by nuclear plants as they continue to shut down.

"The question that I think folks need to answer is are these programs a bailout or is the opposition to the program a payout? Because at the end of the day someone is going to make money. The question is who and how much?" Smeltz said.

Changing the market

Another critic is PJM Interconnection, the regional transmission organization that operates the grid for 13 states, including Pennsylvania, and Washington, D.C.

The subsidies distort price formation and inject uncertainty into the markets, says Stu Bresler, senior vice president in charge of operations and markets at PJM.

The danger PJM sees is that each new subsidy creates a precedent for government intervention. The uncertainty makes it harder for investors to determine what sort of power generation is a sound investment in the region, Bresler explained. Those investors could simply decide to put their capital to work in other energy markets where the regulatory outlook is more stable, ultimately leading to underinvestment in places where government intervenes, he added.

Three Mile Island nuclear power plant, Londonderry Township, Pennsylvania
PJM believes longer-term, regional approaches are more appropriate. It has produced research that outlines how coal plants and nuclear energy, which provide the type of stable energy that is still necessary for reliable power supply, could play a larger role in setting prices. It is also preparing to release a report on how to put a price on carbon emissions in all or parts of the regional grid.

"If carbon emissions are the concern and that is the public policy issue with which policymakers are concerned, the simple be-all answer from a market perspective is putting a price on carbon," Bresler said.

Three Mile Island could be viable if natural gas prices rose from below $3 per million British thermal units to about $5 per mmBtu and if a "reasonable" price were applied to carbon, according to Exelon's Dominguez. He is encouraged by the fact that conversations around new pricing models and carbon pricing are gaining traction.

"The great part about this is everybody understands we have a major problem. We're losing some of the lowest-cost, cleanest and most reliable resources in America," Dominguez said.

 

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Chief Scientist: we need to transform our world into a sustainable ‘electric planet’

Hydrogen Energy Transition advances renewable energy integration via electrolysis, carbon capture and storage, and gas hybrids to decarbonize industry, steel, and transport, enable grid storage, replace ammonia feedstocks, and export clean power across continents.

 

Key Points

Scaling clean hydrogen with renewables and CCS to cut emissions in power and industry, and enable clean transport.

✅ Electrolysis and CCS provide low-emission hydrogen at scale.

✅ Balances renewables with storage and flexible gas assets.

✅ Decarbonizes steel, ammonia, heavy transport, and exports.

 

I want you to imagine a highway exclusively devoted to delivering the world’s energy. Each lane is restricted to trucks that carry one of the world’s seven large-scale sources of primary energy: coal, oil, natural gas, nuclear, hydro, solar and wind.

Our current energy security comes at a price, as Europe's power crisis shows, the carbon dioxide emissions from the trucks in the three busiest lanes: the ones for coal, oil and natural gas.

We can’t just put up roadblocks overnight to stop these trucks; they are carrying the overwhelming majority of the world’s energy supply.

But what if we expand clean electricity production carried by the trucks in the solar and wind lanes — three or four times over — into an economically efficient clean energy future?

Think electric cars instead of petrol cars. Think electric factories instead of oil-burning factories. Cleaner and cheaper to run. A technology-driven orderly transition. Problems wrought by technology, solved by technology.

Read more: How to transition from coal: 4 lessons for Australia from around the world

Make no mistake, this will be the biggest engineering challenge ever undertaken. The energy system is huge, and even with an internationally committed and focused effort the transition will take many decades.

It will also require respectful planning and retraining to ensure affected individuals and communities, who have fuelled our energy progress for generations, are supported throughout the transition.

As Tony, a worker from a Gippsland coal-fired power station, noted from the audience on this week’s Q+A program:

The workforce is highly innovative, we are up for the challenge, we will adapt to whatever is put in front of us and we have proven that in the past.

This is a reminder that if governments, industry, communities and individuals share a vision, a positive transition can be achieved.

The stunning technology advances I have witnessed in the past ten years, such as the UK's green industrial revolution shaping the next waves of reactors, make me optimistic.

Renewable energy is booming worldwide, and is now being delivered at a markedly lower cost than ever before.

In Australia, the cost of producing electricity from wind and solar is now around A$50 per megawatt-hour.

Even when the variability is firmed with grid-scale storage solutions, the price of solar and wind electricity is lower than existing gas-fired electricity generation and similar to new-build coal-fired electricity generation.

This has resulted in substantial solar and wind electricity uptake in Australia and, most importantly, projections of a 33% cut in emissions in the electricity sector by 2030, when compared to 2005 levels.

And this pricing trend will only continue, with a recent United Nations report noting that, in the last decade alone, the cost of solar electricity fell by 80%, and is set to drop even further.

So we’re on our way. We can do this. Time and again we have demonstrated that no challenge to humanity is beyond humanity.

Ultimately, we will need to complement solar and wind with a range of technologies such as high levels of storage, including gravity energy storage approaches, long-distance transmission, and much better efficiency in the way we use energy.

But while these technologies are being scaled up, we need an energy companion today that can react rapidly to changes in solar and wind output. An energy companion that is itself relatively low in emissions, and that only operates when needed.

In the short term, as Prime Minister Scott Morrison and energy minister Angus Taylor have previously stated, natural gas will play that critical role.

In fact, natural gas is already making it possible for nations to transition to a reliable, and relatively low-emissions, electricity supply.

Look at Britain, where coal-fired electricity generation has plummeted from 75% in 1990 to just 2% in 2019.

Driving this has been an increase in solar, wind, and hydro electricity, up from 2% to 27%. At the same time, and this is key to the delivery of a reliable electricity supply, electricity from natural gas increased from virtually zero in 1990 to more than 38% in 2019.

I am aware that building new natural gas generators may be seen as problematic, but for now let’s assume that with solar, wind and natural gas, we will achieve a reliable, low-emissions electricity supply.

Is this enough? Not really.

We still need a high-density source of transportable fuel for long-distance, heavy-duty trucks.

We still need an alternative chemical feedstock to make the ammonia used to produce fertilisers.

We still need a means to carry clean energy from one continent to another.

Enter the hero: hydrogen.


Hydrogen could fill the gaps in our energy needs. Julian Smith/AAP Image
Hydrogen is abundant. In fact, it’s the most abundant element in the Universe. The only problem is that there is nowhere on Earth that you can drill a well and find hydrogen gas.

Don’t panic. Fortunately, hydrogen is bound up in other substances. One we all know: water, the H in H₂O.

We have two viable ways to extract hydrogen, with near-zero emissions.

First, we can split water in a process called electrolysis, using renewable electricity or heat and power from nuclear beyond electricity options.

Second, we can use coal and natural gas to split the water, and capture and permanently bury the carbon dioxide emitted along the way.

I know some may be sceptical, because carbon capture and permanent storage has not been commercially viable in the electricity generation industry.

But the process for hydrogen production is significantly more cost-effective, for two crucial reasons.

First, since carbon dioxide is left behind as a residual part of the hydrogen production process, there is no additional step, and little added cost, for its extraction.

And second, because the process operates at much higher pressure, the extraction of the carbon dioxide is more energy-efficient and it is easier to store.

Returning to the electrolysis production route, we must also recognise that if hydrogen is produced exclusively from solar and wind electricity, we will exacerbate the load on the renewable lanes of our energy highway.

Think for a moment of the vast amounts of steel, aluminium and concrete needed to support, build and service solar and wind structures. And the copper and rare earth metals needed for the wires and motors. And the lithium, nickel, cobalt, manganese and other battery materials needed to stabilise the system.

It would be prudent, therefore, to safeguard against any potential resource limitations with another energy source.

Well, by producing hydrogen from natural gas or coal, using carbon capture and permanent storage, we can add back two more lanes to our energy highway, ensuring we have four primary energy sources to meet the needs of the future: solar, wind, hydrogen from natural gas, and hydrogen from coal.

Read more: 145 years after Jules Verne dreamed up a hydrogen future, it has arrived

Furthermore, once extracted, hydrogen provides unique solutions to the remaining challenges we face in our future electric planet.

First, in the transport sector, Australia’s largest end-user of energy.

Because hydrogen fuel carries much more energy than the equivalent weight of batteries, it provides a viable, longer-range alternative for powering long-haul buses, B-double trucks, trains that travel from mines in central Australia to coastal ports, and ships that carry passengers and goods around the world.

Second, in industry, where hydrogen can help solve some of the largest emissions challenges.

Take steel manufacturing. In today’s world, the use of coal in steel manufacturing is responsible for a staggering 7% of carbon dioxide emissions.

Persisting with this form of steel production will result in this percentage growing frustratingly higher as we make progress decarbonising other sectors of the economy.

Fortunately, clean hydrogen can not only provide the energy that is needed to heat the blast furnaces, it can also replace the carbon in coal used to reduce iron oxide to the pure iron from which steel is made. And with hydrogen as the reducing agent the only byproduct is water vapour.

This would have a revolutionary impact on cutting global emissions.

Third, hydrogen can store energy, as with power-to-gas in pipelines solutions not only for a rainy day, but also to ship sunshine from our shores, where it is abundant, to countries where it is needed.

Let me illustrate this point. In December last year, I was privileged to witness the launch of the world’s first liquefied hydrogen carrier ship in Japan.

As the vessel slipped into the water I saw it not only as the launch of the first ship of its type to ever be built, but as the launch of a new era in which clean energy will be routinely transported between the continents. Shipping sunshine.

And, finally, because hydrogen operates in a similar way to natural gas, our natural gas generators can be reconfigured in the future as hydrogen-ready power plants that run on hydrogen — neatly turning a potential legacy into an added bonus.

Hydrogen-powered economy
We truly are at the dawn of a new, thriving industry.

There’s a nearly A$2 trillion global market for hydrogen come 2050, assuming that we can drive the price of producing hydrogen to substantially lower than A$2 per kilogram.

In Australia, we’ve got the available land, the natural resources, the technology smarts, the global networks, and the industry expertise.

And we now have the commitment, with the National Hydrogen Strategy unanimously adopted at a meeting by the Commonwealth, state and territory governments late last year.

Indeed, as I reflect upon my term as Chief Scientist, in this my last year, chairing the development of this strategy has been one of my proudest achievements.

The full results will not be seen overnight, but it has sown the seeds, and if we continue to tend to them, they will grow into a whole new realm of practical applications and unimagined possibilities.

 

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New fuel cell concept brings biological design to better electricity generation

Quinone-mediated fuel cell uses a bio-inspired organic shuttle to carry electrons and protons to a nearby cobalt catalyst, improving hydrogen conversion, cutting platinum dependence, and raising efficiency while lowering costs for clean electricity.

 

Key Points

An affordable, bio-inspired fuel cell using an organic quinone shuttle and cobalt catalyst to move electrons efficiently

✅ Organic quinone shuttles electrons to a separate cobalt catalyst

✅ Reduces platinum use, lowering cost of hydrogen power

✅ Bio-inspired design aims to boost efficiency and durability

 

Fuel cells have long been viewed as a promising power source. But most fuel cells are too expensive, inefficient, or both. In a new approach, inspired by biology, a team has designed a fuel cell using cheaper materials and an organic compound that shuttles electrons and protons.

Fuel cells have long been viewed as a promising power source. These devices, invented in the 1830s, generate electricity directly from chemicals, such as hydrogen and oxygen, and produce only water vapor as emissions. But most fuel cells are too expensive, inefficient, or both.

In a new approach, inspired by biology and published today (Oct. 3, 2018) in the journal Joule, a University of Wisconsin-Madison team has designed a fuel cell using cheaper materials and an organic compound that shuttles electrons and protons.

In a traditional fuel cell, the electrons and protons from hydrogen are transported from one electrode to another, where they combine with oxygen to produce water. This process converts chemical energy into electricity. To generate a meaningful amount of charge in a short enough amount of time, a catalyst is needed to accelerate the reactions.

Right now, the best catalyst on the market is platinum -- but it comes with a high price tag, and while advances like low-cost heat-to-electric materials show promise, they address different conversion pathways. This makes fuel cells expensive and is one reason why there are only a few thousand vehicles running on hydrogen fuel currently on U.S. roads.

Shannon Stahl, the UW-Madison professor of chemistry who led the study in collaboration with Thatcher Root, a professor of chemical and biological engineering, says less expensive metals can be used as catalysts in current fuel cells, but only if used in large quantities. "The problem is, when you attach too much of a catalyst to an electrode, the material becomes less effective," he says, "leading to a loss of energy efficiency."

The team's solution was to pack a lower-cost metal, cobalt, into a reactor nearby, where the larger quantity of material doesn't interfere with its performance. The team then devised a strategy to shuttle electrons and protons back and forth from this reactor to the fuel cell.

The right vehicle for this transport proved to be an organic compound, called a quinone, that can carry two electrons and protons at a time. In the team's design, a quinone picks up these particles at the fuel cell electrode, transports them to the nearby reactor filled with an inexpensive cobalt catalyst, and then returns to the fuel cell to pick up more "passengers."

Many quinones degrade into a tar-like substance after only a few round trips. Stahl's lab, however, designed an ultra-stable quinone derivative. By modifying its structure, the team drastically slowed down the deterioration of the quinone. In fact, the compounds they assembled last up to 5,000 hours -- a more than 100-fold increase in lifetime compared to previous quinone structures.

"While it isn't the final solution, our concept introduces a new approach to address the problems in this field," says Stahl. He notes that the energy output of his new design produces about 20 percent of what is possible in hydrogen fuel cells currently on the market. On the other hand, the system is about 100 times more effective than biofuel cells that use related organic shuttles.

The next step for Stahl and his team is to bump up the performance of the quinone mediators, allowing them to shuttle electrons more effectively and produce more power. This advance would allow their design to match the performance of conventional fuel cells, but with a lower price tag.

"The ultimate goal for this project is to give industry carbon-free options for creating electricity, including thermoelectric materials that harvest waste heat," says Colin Anson, a postdoctoral researcher in the Stahl lab and publication co-author. "The objective is to find out what industry needs and create a fuel cell that fills that hole."

This step in the development of a cheaper alternative could eventually be a boon for companies like Amazon and Home Depot that already use hydrogen fuel cells to drive forklifts in their warehouses.

"In spite of major obstacles, the hydrogen economy, with efforts such as storing electricity in pipelines in Europe, seems to be growing," adds Stahl, "one step at a time."

Financial support for this project was provided by the Center for Molecular Electrocatalysis, an Energy Frontier Research Center funded by the U.S. Department of Energy, Office of Science, Office of Basic Energy Sciences, and by the Wisconsin Alumni Research Foundation (WARF) through the WARF Accelerator Program.

 

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Nevada on track to reach RPS mandate of 50% renewable electricity by 2030: report

Nevada Renewable Portfolio Standard 2030 targets 50% clean energy, advancing solar, geothermal, and wind, cutting GHG emissions, phasing out coal, and expanding storage, EV infrastructure, and in-state renewables under PUCN oversight and tax abatements.

 

Key Points

A state mandate requiring 50% of electricity from renewables by 2030, driving solar, geothermal, wind, and storage.

✅ 50% clean power by 2030; 100% carbon-free target by 2050

✅ Growth in solar, geothermal, wind; coal phase-out; natural gas remains

✅ RETA incentives spur 6.1 GW capacity, jobs, and in-state investment

 

Nevada is on track to meet its Renewable Portfolio Standard of 50% of electricity generated by renewable energy sources by 2030, according to the Governor's Office of Energy's annual Status of Energy Report.

Based on compliance reports the Public Utilities Commission of Nevada has received, across all providers, about 20% of power is currently generated by renewable resources, and, nationally, renewables ranked second in 2020 as filings show Nevada's investor-owned utility and other power providers have plans to reach the state's ambitious RPS of 50% by 2030, according to the report released Jan. 28.

"Because transportation and electricity generation are Nevada's two largest contributors to greenhouse gas emissions, GOE's program work in 2021 underscored our focus on transportation electrification and reaching the state's legislatively required renewable portfolio standard," GOE Director David Bobzien said in a statement Jan. 28. "While electricity generated from renewable resources currently accounts for about 25% of the state's electricity, a share similar to projections that renewables will soon provide about one-fourth of U.S. electricity overall, we continue to collaborate with the Public Utilities Commission of Nevada, electricity providers, the renewable energy industry and conservation organizations to ensure Nevada reaches our target of 50% clean energy by 2030."

The state's RPS, enacted in 1997 and last modified in 2019, requires an increase in renewable energy, starting with 22% in 2020 and increasing to 50% by 2030. The increase in renewables will reduce GHG emissions and help the state reach its goal of 100% carbon-free power by 2050, while states like Rhode Island have a 100% by 2030 plan, highlighting varying timelines.

Renewable additions
The state added 1.332 GW of renewable capacity in 2021 as part of the Renewable Energy Tax Abatement program, at a time when U.S. renewable energy hit a record 28% in April, for a total renewable capacity of 6.117 GW, according to the report.

The RETA program awards partial sales and use tax and partial property-tax abatements to eligible renewable energy facilities, which increase Nevada's tax revenue and create jobs in a growing industry. Eligible projects must employ at least 50% Nevada workers, pay 175% of Nevada's average wage during construction, and offer health care benefits to workers and their dependents.

Since its adoption in 2010, the GOE has approved 60 projects, including large-scale solar PV, solar thermal, biomass, geothermal and wind projects throughout the state, according to the report. Projects granted abatements in 2021 include:

  • 100-MW Citadel Solar Project
  • 150-MW Dry Lake Solar + Storage Project
  • 714-MW Gemini Solar Project
  • 55-MW North Valley Power Geothermal Project
  • 113-MW Boulder Flats Solar Project
  • 200-MW Arrow Canyon Solar Project

"Nevada does not produce fossil fuels of any significant amount, and gasoline, jet fuel and natural gas for electricity or direct use must be imported," according to the report. "Transitioning to domestically produced renewable resources and electrified transportation can provide cost savings to Nevada residents and businesses, as seen in Idaho's largely renewable mix today, while reducing GHG emissions. About 86% of the fuel for energy that Nevada consumes comes from outside the state."

Phasing out coal plants
Currently, more than two-thirds of the state's electricity is produced by natural gas-fired power plants, with renewables covering most of the remaining generation, according to the report. Nevada continues to phase out its remaining coal power plants, as renewables surpassed coal nationwide in 2022, which provide less than 10% of produced electricity.

"Nevada has seen a significant increase in capturing its abundant renewable energy resources such as solar and geothermal," according to the report. "Renewable energy production continues to grow, powering Nevada homes and business and serves to diversify the state's economy by exporting solar and geothermal to neighboring states, as California neared 100% renewable electricity for the first time. Nevada has more than tripled its renewable energy production since 2011."

 

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Nova Scotia Power says it now generates 30 per cent of its power from renewables

Nova Scotia Power Renewable Energy delivers 30% in 2018, led by wind power, hydroelectric and biomass, with coal and natural gas declining, as Muskrat Falls imports from Labrador target 40% renewables to cut emissions.

 

Key Points

It is the utility's 30% 2018 renewable mix and plan to reach 40% via Muskrat Falls while reducing carbon emissions.

✅ 18% wind, 9% hydro and tidal, 3% biomass in 2018

✅ Coal reliance fell from 76% in 2007 to 52% in 2018

✅ 58% carbon emissions cut from 2005 levels projected by 2030

 

Nova Scotia's private utility says it has hit a new milestone in its delivery of electricity from renewable resources, a trend highlighted by Summerside wind generation in nearby P.E.I.

Nova Scotia Power says 30 per cent of the electricity it produced in 2018 came from renewable sources such as wind power.

The utility says 18 per cent came from wind turbines, nine per cent from hydroelectric and tidal turbines and three per cent by burning biomass.

However, over half of the province's electrical generation still comes from the burning of coal or petroleum coke. Another 13 per cent come from burning natural gas and five per cent from imports, even as U.S. renewable generation hits record shares.

The utility says that since 2007, the province's reliance on coal-fired plants has dropped from 76 per cent of electricity generated to 52 per cent last year, as Prairie renewables growth accelerates nationally.

It says it expects to meet the province's legislated renewable target of 40 per cent in 2020, when it begins accessing hydroelectricity from the Muskrat Falls project in Labrador.

"We have made greener, cleaner energy a priority," utility president and CEO Karen Hutt said in a news release.

"As we continue to achieve new records in renewable electricity, we remain focused on ensuring electricity prices stay predictable and affordable for our customers, including solar customers across the province."

Nova Scotia Power also projects achieving a 58 per cent reduction in carbon emissions from 2005 levels by 2030.

 

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