Duke unit sees little immediate impact from CAIR, CAMR rulings

By SNL Securities


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The Duke Energy Kentucky Inc. unit of Duke Energy Corp. told the Kentucky Public Service Commission in a Sept. 29 filing that appeals court rulings striking down two federal air emissions rules are having little effect at the moment on its coal-fired power facilities.

DE-Kentucky was answering a question posed by the PSC as part of an ongoing integrated resource plan review process. The commission asked about the impact earlier this year of two federal appeals courts striking down the federal Clean Air Interstate Rule and the companion Clean Air Mercury Rule.

"The recent court decision to vacate the CAIR (& CAMR) results in DE-Kentucky being required to continue to comply with the existing Acid Rain SO2 cap & trade program and the ozone season NOx Budget Trading Program," said the utility. "However, states will immediately begin to revise their State Implementation Plans to attain the fine particulate matter National Ambient Air Quality Standard, since their previous submittal relied on CAIR.

It is likely that equipment installed to comply with CAlR will be mandated to operate annually to meet new SIP requirements very soon. Furthermore, in order to address emissions transport, the U.S. Congress may act to reinstate CAIR or more stringent multi-pollutant legislation or states may file Section 126 petitions with USEPA against upwind states. DE-Kentucky is actively monitoring these activities."

DE-Kentucky was also asked about plans to operate the selective catalytic reduction system for NOx control at the East Bend plant for an additional time in 2008 in order to earn NOx Compliance Supplement Pool Allowances.

"With the court decision to vacate CAIR, there is no immediate requirement to operate the East Bend Station SCR outside of the ozone season — either to earn early reduction credits or the January 2009 implementation date. However, as stated in [the prior answer about CAIR and CAMR being struck down], the Kentucky DEP will be revising its fine particulate matter SIP very quickly and will likely require the operation of installed controls to attain the NAAQS."

In response to another PSC question, DE-Kentucky attached a fact sheet describing a small CO2 sequestration demonstration project at East Bend. "Duke Energy has volunteered to take part in a field test of a promising technique for permanently storing carbon dioxide deep under its East Bend Generating Station," according to the fact sheet. "The test is one of several being conducted in the Midwest by the U.S. Department of Energy's (USDOE's) Midwest Regional Carbon Sequestration Partnership (MRCSP)."

DE-Kentucky added: "Although the field test at East Bend is a very small-scale test, it represents an important step in building our knowledge and helping future generations to address climate change. If successful, geologic sequestration could also be economically important to Kentucky and other Midwestern states by allowing the region to produce carbon-neutral, affordable energy to support our region's economy in the future."

DE-Kentucky said various project activities will be spread over a period of about three years. The exact timing of individual activities will depend on what is learned during the previous step, as well as on the availability of needed equipment. Before injecting CO2, Duke Energy will prepare an application for a permit to the U.S. Environmental Protection Agency Region 4 office.

The permit application requires an operational plan, which will include factors such as determining the pressure at which the CO2 should be injected and a plan for monitoring the safety of the operations. These activities are expected to take place during 2008.

In the project, a very small amount of CO2 will be injected over a period of one to three months. Before injection, the CO2 will be compressed to a liquid-like state. It will then be injected through a well into rock formations filled with saline water. Injection will occur at a depth of 3,000 to 3,500 feet, far below drinking water sources, which are at a depth of less than 100 feet in this region.

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Russia suspected as hackers breach systems at power plants across US

US Power Grid Cyberattacks target utilities and nuclear plants, probing SCADA, ICS, and business networks at sites like Wolf Creek; suspected Russian actors, malware, and spear-phishing trigger DHS and FBI alerts on critical infrastructure resilience.

 

Key Points

Intrusions on energy networks probing ICS and SCADA, seeking persistence and elevating risks to critical infrastructure.

✅ Wolf Creek nuclear plant targeted; no operational systems breached

✅ Attackers leveraged stolen credentials, malware, and spear-phishing

✅ DHS and FBI issued alerts; utilities enhance cyber resilience

 

Hackers working for a foreign government recently breached at least a dozen US power plants, including the Wolf Creek nuclear facility in Kansas, according to current and former US officials, sparking concerns the attackers were searching for vulnerabilities in the electrical grid.

The rivals could be positioning themselves to eventually disrupt the nation’s power supply, warned the officials, who noted that a general alert, prompting a renewed focus on protecting the U.S. power grid, was distributed to utilities a week ago. Adding to those concerns, hackers recently infiltrated an unidentified company that makes control systems for equipment used in the power industry, an attack that officials believe may be related.

The chief suspect is Russia, according to three people familiar with the continuing effort to eject the hackers from the computer networks. One of those networks belongs to an ageing nuclear generating facility known as Wolf Creek -- owned by Westar Energy Inc, Great Plains Energy Inc, and Kansas Electric Power Cooperative Inc -- on a lake shore near Burlington, Kansas.

The possibility of a Russia connection is particularly worrying, former and current official s say, because Russian hackers have previously taken down parts of the electrical grid in Ukraine and appear to be testing increasingly advanced tools, including cyber weapons to disrupt power grids, to disrupt power supplies.

The hacks come as international tensions have flared over US intelligence agencies’ conclusion that Russia tried to influence the 2016 presidential election, and amid U.S. government condemnation of Russian power-grid hacking in recent advisories. The US, which has several continuing investigations into Russia’s activities, is known to possess digital weapons capable of disrupting the electricity grids of rival nations.

“We don’t pay attention to such anonymous fakes,” Kremlin spokesman Dmitry Peskov said, in response to a request to comment on alleged Russian involvement.

It was unclear whether President Donald Trump was planning to address the cyber attacks at his meeting on Friday with Russian President Vladimir Putin. In an earlier speech in Warsaw, Trump called out Russia’s “destabilising activities” and urged the country to join “the community of responsible nations.”

The Department of Homeland Security and Federal Bureau of Investigation said they are aware of a potential intrusion in the energy sector. The alert issued to utilities cited activities by hackers since May.

“There is no indication of a threat to public safety, as any potential impact appears to be limited to administrative and business networks,” the government agencies said in a joint statement.

The Department of Energy also said the impact appears limited to administrative and business networks and said it was working with utilities and grid operators to enhance security and resilience.

“Regardless of whether malicious actors attempt to exploit business networks or operational systems, we take any reports of malicious cyber activity potentially targeting our nation’s energy infrastructure seriously and respond accordingly,” the department said in an emailed statement.

Representatives of the National Security Council, the Director of National Intelligence and the Nuclear Regulatory Commission declined to comment. While Bloomberg News was waiting for responses from the government, the New York Times reported that hacks were targeting nuclear power stations.

The North American Electric Reliability Corp, a nonprofit that works to ensure the reliability of the continent’s power system, said it was aware of the incident and was exchanging information with the industry through a secure portal.

“At this time, there has been no bulk power system impact in North America,” the corporation said in an emailed statement.

In addition, the operational controls at Wolf Creek were not pierced, according to government officials, even as attackers accessed utility control rooms elsewhere in the U.S., according to separate reports. “There was absolutely no operational impact to Wolf Creek,” Jenny Hageman, a spokeswoman for the nuclear plant, said in a statement to Bloomberg News.

“The reason that is true is because the operational computer systems are completely separate from the corporate network.”

Determining who is behind an attack can be tricky. Government officials look at the sophistication of the tools, among other key markers, when gauging whether a foreign government is sponsoring cyber activities.

Several private security firms, including Symantec researchers, are studying data on the attacks, but none has linked the work to a particular hacking team or country.

“We don’t tie this to any known group at this point,” said Sean McBride, a lead analyst for FireEye Inc, a global cyber security firm. “It’s not to say it’s not related, but we don’t have the evidence at this point.”

US intelligence officials have long been concerned about the security of the country’s electrical grid. The recent attack, striking almost simultaneously at multiple locations, is testing the government’s ability to coordinate an effective response among several private utilities, state and local officials, and industry regulators.

Specialised teams from Homeland Security and the FBI have been scrambled to help extricate the hackers from the power stations, in some cases without informing local and state officials. Meanwhile, the US National Security Agency is working to confirm the identity of the hackers, who are said to be using computer servers in Germany, Italy, Malaysia and Turkey to cover their tracks.

Many of the power plants are conventional, but the targeting of a nuclear facility adds to the pressure. While the core of a nuclear generator is heavily protected, a sudden shutdown of the turbine can trigger safety systems. These safety devices are designed to disperse excess heat while the nuclear reaction is halted, but the safety systems themselves may be vulnerable to attack.

Homeland Security and the FBI sent out a general warning about the cyber attack to utilities and related parties on June 28, though it contained few details or the number of plants affected. The government said it was most concerned about the “persistence” of the attacks on choke points of the US power supply. That language suggests hackers are trying to establish backdoors on the plants’ systems for later use, according to a former senior DHS official who asked not to be identified.

Those backdoors can be used to insert software specifically designed to penetrate a facility’s operational controls and disrupt critical systems, according to Galina Antova, co-founder of Claroty, a New York firm that specialises in securing industrial control systems.

“We’re moving to a point where a major attack like this is very, very possible,” Antova said. “Once you’re into the control systems -- and you can get into the control systems by hacking into the plant’s regular computer network -- then the basic security mechanisms you’d expect are simply not there.”

The situation is a little different at nuclear facilities. Backup power supplies and other safeguards at nuclear sites are meant to ensure that “you can’t really cause a nuclear plant to melt down just by taking out the secondary systems that are connected to the grid,” Edwin Lyman, a nuclear expert with the Union of Concerned Scientists, said in a phone interview.

The operating systems at nuclear plants also tend to be legacy controls built decades ago and don’t have digital control systems that can be exploited by hackers. Wolf Creek, for example, began operations in 1985. “They’re relatively impervious to that kind of attack,” Lyman said.

The alert sent out last week inadvertently identified Wolf Creek as one of the victims of the attack. An analysis of one of the tools used by the hackers had the stolen credentials of a plant employee, a senior engineer. A US official acknowledged the error was not caught until after the alert was distributed.

According to a security researcher who has seen the report, the malware that activated the engineer’s username and password was designed to be used once the hackers were already inside the plant’s computer systems.

The tool tries to connect to non-public computers, and may have been intended to identify systems related to Wolf Creek’s generation plant, a part of the facility typically more modern than the nuclear reactor control room, according to a security expert who asked to note be identified because the alert is not public.

Even if there is no indication that the hackers gained access to those control systems, the design of the malware suggests they may have at least been looking for ways to do so, the expert said.

Stan Luke, the mayor of Burlington, the largest community near Wolf Creek, which is surrounded by corn fields and cattle pastures, said he learned about a cyber threat at the plant only recently, and then only through golfing buddies.

With a population of just 2,700, Burlington boasts a community pool with three water slides and a high school football stadium that would be the envy of any junior college. Luke said those amenities lead back to the tax dollars poured into the community by Wolf Creek, Coffey County’s largest employer with some 1,000 workers, 600 of whom live in the county.

E&E News first reported on digital attacks targeting US nuclear plants, adding it was code-named Nuclear 17. A senior US official told Bloomberg that there was a bigger breach of conventional plants, which could affect multiple regions.

Industry experts and US officials say the attack is being taken seriously, in part because of recent events in Ukraine. Antova said that the Ukrainian power grid has been disrupted at least twice, first in 2015, and then in a more automated attack last year, suggesting the hackers are testing methods.

Scott Aaronson, executive director for security and business continuity at the Edison Electric Institute, an industry trade group, said utilities, grid operators and federal officials were already dissecting the attack on Ukraine’s electric sector to apply lessons in North America before the US government issued the latest warning to “energy and critical manufacturing sectors”. The current threat is unrelated to recently publicised ransomware incidents or the CrashOverride malware, Mr Aaronson said in an emailed statement.

Neither attack in Ukraine caused long-term damage. But with each escalation, the hackers may be gauging the world’s willingness to push back.

“If you think about a typical war, some of the acts that have been taken against critical infrastructure in Ukraine and even in the US, those would be considered crossing red lines,” Antova said.

 

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US judge orders PG&E to use dividends to pay for efforts to reduce wildfire risks

PG&E dividend halt for wildfire mitigation directs cash from shareholders to tree clearing, wildfire risk reduction, and probation compliance under Judge William Alsup, amid bankruptcy, Camp Fire liabilities, and power line vegetation management mandates.

 

Key Points

A court-ordered dividend halt funding vegetation clearance and wildfire mitigation as PG&E meets probation terms.

✅ Judge Alsup bars dividends until mitigation targets met

✅ 375,000 trees cleared near power lines in high-risk zones

✅ Measures tied to probation amid bankruptcy and liabilities

 

A U.S. judge said on Tuesday that PG&E may not resume paying dividends and must use the money to fund its plan for cutting down trees to reduce the risk of wildfires in California, stopping short of more costly measures he proposed earlier this year.

The new criminal probation terms for PG&E are modest compared with ones the judge had in mind in January and that PG&E said could have cost upwards of $150 billion.

The terms will, however, keep PG&E under the supervision of Judge William Alsup of the U.S. District Court for the Northern District of California and hold the company, which also is in Chapter 11 bankruptcy and whose bankruptcy plan has drawn support from wildfire victims, to its target for clearing areas around its power lines of some 375,000 trees this year.

PG&E's probation stems from its felony conviction after a deadly 2010 natural gas pipeline blast in San Bruno, California, near San Francisco, that killed eight people and injured 58 others.

PG&E filed for bankruptcy protection on Jan. 29 in anticipation of liabilities from wildfires, including a catastrophic 2018 blaze, the Camp Fire, for which PG&E later pleaded guilty to 85 counts in state court. It killed 86 people in the deadliest and most destructive wildfire in California history.

At a January hearing, Alsup, who is overseeing PG&E's probation, said he felt compelled to propose additional probation terms in the aftermath of Camp Fire. San Francisco-based PG&E expects its equipment will be found to have caused the blaze.

The probation process is separate from San Francisco-based PG&E's bankruptcy filing and from operational measures such as its pandemic response and shutoff moratorium implemented to protect customers.

As the company faces $30 billion in wildfire liabilities and bankruptcy proceedings and has opened a wildfire assistance program for affected residents, the energy company is expected to name as its new chief executive Bill Johnson, a source said on Tuesday. Johnson has been the CEO of the Tennessee Valley Authority since 2013 and is retiring on Friday.

Additional probation terms imposed by Alsup on Tuesday will require PG&E to meet goals in a wildfire mitigation plan it unveiled in February.

The goals include removing 375,000 dead, dying or hazardous trees from areas at high risk of wildfires in 2019, compared with 160,000 last year.

The judge said PG&E will not be able to pay shareholders until it complies with his new probation terms.

Shares fell 2% on Tuesday to close at $17.66 on the New York Stock Exchange and are down 63% since November 2018 due to concerns about the company's bankruptcy and wildfire liabilities, though the utility has said rates are set to stabilize in 2025 as part of its long-term plan. The shares traded as low as $5.07 in January.

PG&E in December 2017 suspended its quarterly cash dividend, while continuing to pay significant property taxes to California counties, citing uncertainty about liabilities from wildfires in October of that year that struck Northern California.

PG&E paid $798 million in dividends in 2017 and $925 million in 2016, a period in which the company did a poor job of clearing areas around its power lines of hazardous trees, according to Alsup.

Money meant for shareholders should have been spent on efforts to reduce wildfire risks in recent years, Alsup said at Tuesday's hearing.

"PG&E has started way more than its share of these fires," Alsup said.

"I want to see the people of California safe," the judge added.

Lawyers for PG&E did not contest the new terms, which the company considers more feasible than terms Alsup proposed in January.

To comply with the terms Alsup proposed in January, PG&E said it would have to remove 100 million trees. The company added that shutting power lines during high winds as Alsup proposed would not be feasible because the lines traverse rural areas to service cities and suburbs.

Idling lines could also affect the power grid in other states, PG&E said.

Alsup on Tuesday said he was still considering his proposal to require PG&E to shut down power lines during windy weather to prevent tree branches from making contact and sparking wildfires linked to power lines in the region.

 

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27,000 Plus More Clean Energy Jobs Lost in May

U.S. Clean Energy Job Losses highlight COVID-19 impacts on renewable energy, solar, wind, and energy efficiency, with PPP fatigue, unemployment, and calls for Congressional stimulus, per Department of Labor data analyzed by E2.

 

Key Points

Pandemic-driven layoffs across renewable, solar, wind, and efficiency sectors, risking recovery without federal aid.

✅ Over 620,500 clean energy jobs lost in three months

✅ Energy efficiency, solar, and wind hit hardest nationwide

✅ Industry urges Congress for stimulus, tax credit relief

 

As Congress this week begins debating economic stimulus support for the energy industry, a new analysis of unemployment data shows the biggest part of America's energy economy - clean energy - lost another 27,000 jobs in May, bringing the total number of clean energy workers who have lost their jobs in the past three months to more than 620,500.

While May saw an improvement in new unemployment claims over March and April, the findings represent the sector's third straight month of significant job losses across solar, wind, energy efficiency, clean vehicles and other industries. With coronavirus cases once again rising in many states and companies beginning to run out of the Payroll Protection Program (PPP) funding that has helped small businesses keep workers employed, and as households confront pandemic power shut-offs that heighten energy insecurity, the report increases concerns the sector will be unable to resume its economy-leading jobs growth in the short- or long-term without a significant policy response.

Given the size and scope of the clean energy industry, such a sustained loss would cast a pall on the nation's overall economic recovery, as shifting electricity demand during COVID-19 complicates forecasts, according to the analysis of the Department of Labor's May unemployment data from E2 (Environmental Entrepreneurs), E4TheFuture and the American Council on Renewable Energy (ACORE).

Prior to COVID-19, clean energy - including energy efficiency, solar and wind generation, clean vehicles and related sectors - was among the U.S. economy's biggest and fastest-growing employment sectors, growing 10.4% since 2015 to nearly 3.4 million jobs at the end of 2019. That made clean energy by far the biggest employer of workers in all energy occupations, employing nearly three times as many people as the fossil fuel industry. For comparison, coal mining employs about 47,000 workers, even as clean energy projects in coal communities aim to revitalize local economies.

The latest monthly analysis for the groups by BW Research Partnership runs contrary to recent Bureau of Labor Statistics (BLS) reports, which indicated that a more robust economic rebound was underway, even as high fuel prices haven't spurred a green shift in adoption, while also acknowledging misclassifications and serious reporting difficulties in its own data.

Bob Keefe, Executive Director at E2, said:

"May's almost 30,000 clean energy jobs loss is sadly an improvement in the rate of jobs shed but make no mistake: There remains huge uncertainty and volatility ahead. It will be very tough for clean energy to make up these continuing job losses without support from Congress. Lawmakers must act now. If they do, we can get hundreds of thousands of these workers back on the job today and build a better, cleaner, more equitable economy for tomorrow. And who doesn't want that?"

Pat Stanton, Policy Director at E4TheFuture, said:

"Most of the time, energy efficiency workers need to go inside homes, businesses and other buildings to get the job done. Since they couldn't do that during COVID lockdowns, they couldn't work. Now states are opening up. But utilities, contractors and building owners need to protect employees and occupants from possible exposure to the virus and need more clarity about potential liabilities."

Gregory Wetstone, President and CEO of ACORE, said:

"In May, we saw thousands of additional renewable energy workers join the ranks of the unemployed, further underscoring the damage COVID-19 is inflicting on our workforce. Since the pandemic began, nearly 100,000 renewable energy workers have lost their jobs. We need help from Congress to get American clean energy workers back to work. With commonsense measures like temporary refundability and a delay in the phasedown of renewable energy tax credits, Congress can help restore these good-paying jobs so the renewable sector can continue to provide the affordable, pollution-free power American consumers and businesses want and deserve."

Phil Jordan, Vice President and Principal at BW Research Partnership, said:

"We understand the challenges and limitations of data collection for BLS in the middle of a global pandemic. But any suggestion that a strong employment rebound is underway in the United States simply is not reflected in the clean energy sector right now. And with PPP expiring, that only increases uncertainty in the months ahead."

The report comes as both the Senate Committee on Energy and Natural Resources and the House Energy and Commerce Committee are considering clean energy stimulus to restart the U.S. economy, and amid assessments of mixed results from the climate law shaping expectations, and as lawmakers in both the House and Senate are increasing calls for supporting clean energy workers and businesses, including this bicameral letter signed by 57 members of Congress and another signed today by 180 House members.

Industries Hit Hardest

According to the analysis, energy efficiency lost more jobs than any other clean energy sector for the third consecutive month in May, shedding about 18,900 jobs. These workers include electricians, HVAC technicians who work with high-efficiency systems, and manufacturing employees who make Energy Star appliances, LED lighting systems and efficient building materials.

Renewable energy, including solar and wind, lost nearly 4,300 jobs in May.

Clean grid and storage and clean vehicles manufacturing -- including grid modernization, energy storage, car charging and electric and plug-in hybrid vehicle manufacturing -- lost a combined 3,200 jobs in May, as energy crisis impacts electricity, gas, and EVs in several ways.

The clean fuels sector lost more than 650 jobs in May.

States and Localities Hit Across Country

California continues to be the hardest hit state in terms of total job losses, losing 4,313 jobs in May and more than 109,700 since the COVID-19 crisis began. Florida was the second hardest hit state in May, losing an additional 2,563 clean energy jobs, while Georgia, Texas, Washington, and Michigan all suffered more than 1,000 job losses across the sector. An additional 12 states saw at least 500 clean energy unemployment filings, and reports like Pennsylvania's clean energy jobs analysis provide added context, according to the latest analysis.

For a full breakdown of clean energy job losses in each state, along with a list of the hardest hit counties and metro areas, see the full analysis here.

 

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Are major changes coming to your electric bill?

California Income-Based Electricity Rates propose a fixed monthly fee set by income as utilities and the CPUC weigh progressive pricing, aiming to cut low-income bills while PG&E, SCE, and SDG&E retain usage-based charges.

 

Key Points

CPUC plan adds income-tiered fixed fees to lower low-income bills while keeping per-kWh usage charges.

✅ Adds fixed monthly fees by income to complement per-kWh charges

✅ Cuts bills for low-income households; higher earners pay more

✅ Utilities say revenue neutral; conservation signals preserved

 

California’s electric bills — already some of the highest in the nation — are rising as electricity prices soar across the state, but regulators are debating a new plan to charge customers based on their income level. 

Typically what you pay for electricity depends on how much you use. But the state’s three largest electric utilities — Southern California Edison Company, Pacific Gas and Electric Company and San Diego Gas & Electric Company — have proposed a plan to charge customers not just for how much energy they use, but also based on their household income, moving toward income-based flat-fee utility bills over time. Their proposal is one of several state regulators received designed to accommodate a new law to make energy less costly for California’s lowest-income customers.

Some state Republican lawmakers are warning the changes could produce unintended results, such as weakening incentives to conserve electricity or raising costs for customers using solar energy, and some have introduced a plan to overturn the charges in the Legislature.

But the utility companies say the measure would reduce electricity bills for the lowest income customers. Those residents would save about $300 per year, utilities estimate.

California households earning more than $180,000 a year would end up paying an average of $500 more a year on their electricity bills, according to the proposal from utility companies. 

The California Public Utilities Commission’s deadline for deciding on the suggested changes is July 1, 2024, as regulators face calls for action from consumers and advocates. The proposals come at a time when many moderate and low-income families are being priced out of California by rising housing costs.  

Who wants to change the fee structure?
Lawmakers passed and Gov. Gavin Newsom signed a comprehensive energy bill last summer that mandates restructuring electricity pricing across the state. 

The Legislature passed the measure in a “trailer-bill” process that limited deliberation. Included in the 21,000-word law are a few sentences requiring the public utilities commission to establish a “fixed monthly fee” based on each customer’s household income. 

A similar idea was first proposed in 2021 by researchers at UC Berkeley and the nonprofit thinktank Next 10. Their main recommendation was to split utility costs into two buckets. Fixed charges, which everyone has to pay just to be connected to the energy grid, would be based on income levels. Variable charges would depend on how much electricity you use.

Utilities say that part of customers’ bills still will be based on usage, but the other portion will reduce costs for lower- and middle-income customers, who “pay a greater percentage of their income towards their electricity bill relative to higher income customers,” the utilities argued in a recent filing. 

They said the current billing system is unjust, regressive and fails to recognize differences in energy usage among households,

“When we were putting together the reform proposal, front and center in our mind were customers who live paycheck to paycheck, who struggle to pay for essentials such as energy, housing and food,” Caroline Winn, CEO of San Diego Gas & Electric in a statement. 

The utilities say in their proposal that the changes likely would not reduce or increase their revenues.

James Sallee, an associate professor at UC Berkeley, said the utilities’ prior system of billing customers mostly by measuring their electric use to pay for what are essentially fixed costs for power is inefficient and regressive. 

The proposed changes “will shift the burden, on average, to a more progressive system that recovers more from higher income households and less from lower income households,” he said.

 

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Climate Solution: Use Carbon Dioxide to Generate Electricity

Methane Hydrate CO2 Sequestration uses carbon capture and nitrogen injection to swap gases in seafloor hydrates along the Gulf of Mexico, releasing methane for electricity while storing CO2, according to new simulation research.

 

Key Points

A method injecting CO2 and nitrogen into hydrates to store CO2 while releasing methane for power.

✅ Nitrogen aids CO2-methane swap in hydrate cages, speeding sequestration

✅ Gulf Coast proximity to emitters lowers transport and power costs

✅ Revenue from methane electricity could offset carbon capture

 

The world is quickly realizing it may need to actively pull carbon dioxide out of the atmosphere to stave off the ill effects of climate change. Scientists and engineers have proposed various carbon capture techniques, but most would be extremely expensive—without generating any revenue. No one wants to foot the bill.

One method explored in the past decade might now be a step closer to becoming practical, as a result of a new computer simulation study. The process would involve pumping airborne CO2 down into methane hydrates—large deposits of icy water and methane right under the seafloor, beneath water 500 to 1,000 feet deep—where the gas would be permanently stored, or sequestered. The incoming CO2 would push out the methane, which would be piped to the surface and burned to generate electricity, whether sold locally or via exporters like Hydro-Que9bec to help defray costs, to power the sequestration operation or to bring in revenue to pay for it.

Many methane hydrate deposits exist along the Gulf of Mexico shore and other coastlines. Large power plants and industrial facilities that emit CO2 also line the Gulf Coast, where EPA power plant rules could shape deployment, so one option would be to capture the gas directly from nearby smokestacks, keeping it out of the atmosphere to begin with. And the plants and industries themselves could provide a ready market for the electricity generated.

A methane hydrate is a deposit of frozen, latticelike water molecules. The loose network has many empty, molecular-size pores, or “cages,” that can trap methane molecules rising through cracks in the rock below. The computer simulation shows that pushing out the methane with CO2 is greatly enhanced if a high concentration of nitrogen is also injected, and that the gas swap is a two-step process. (Nitrogen is readily available anywhere, because it makes up 78 percent of the earth’s atmosphere.) In one step the nitrogen enters the cages; this destabilizes the trapped methane, which escapes the cages. In a separate step, the nitrogen helps CO2 crystallize in the emptied cages. The disturbed system “tries to reach a new equilibrium; the balance goes to more CO2 and less methane,” says Kris Darnell, who led the study, published June 27 in the journal Water Resources Research. Darnell recently joined the petroleum engineering software company Novi Labs as a data scientist, after receiving his Ph.D. in geoscience from the University of Texas, where the study was done.

A group of labs, universities and companies had tested the technique in a limited feasibility trial in 2012 on Alaska’s North Slope, where methane hydrates form in sandstone under deep permafrost. They sent CO2 and nitrogen down a pipe into the hydrate. Some CO2 ended up being stored, and some methane was released up the same pipe. That is as far as the experiment was intended to go. “It’s good that Kris [Darnell] could make headway” from that experience, says Ray Boswell at the U.S. Department of Energy’s National Energy Technology Laboratory, who was one of the Alaska experiment leaders but was not involved in the new study. The new simulation also showed that the swap of CO2 for methane is likely to be much more extensive—and to happen quicker—if CO2 enters at one end of a hydrate deposit and methane is collected at a distant end.

The technique is somewhat similar in concept to one investigated in the early 2010s by Steven Bryant and others at the University of Texas. In addition to numerous methane hydrate deposits, the Gulf Coast has large pools of hot, salty brine in sedimentary rock under the coastline. In this system, pumps would send CO2 down into one end of a deposit, which would force brine into a pipe that is placed at the other end and leads back to the surface. There the hot brine would flow through a heat exchanger, where heat could be extracted and used for industrial processes or to generate electricity, supporting projects such as electrified LNG in some markets. The upwelling brine also contains some methane that could be siphoned off and burned. The CO2 dissolves into the underground brine, becomes dense and sinks further belowground, where it theoretically remains.

Either system faces big practical challenges, and building shared CO2 storage hubs to aggregate captured gas is still evolving. One is creating a concentrated flow of CO2; the gas makes up only .04 percent of air, and roughly 10 percent of the smokestack emission from a typical power plant or industrial facility. If an efficient methane hydrate or brine system requires an input that is 90 percent CO2, for example, concentrating the gas will require an enormous amount of energy—making the process very expensive. “But if you only need a 50 percent concentration, that could be more attractive,” says Bryant, who is now a professor of chemical and petroleum engineering at the University of Calgary. “You have to reduce the [CO2] capture cost.”

Another major challenge for the methane hydrate approach is how to collect the freed methane, which could simply seep out of the deposit through numerous cracks and in all directions. “What kind of well [and pipe] structure would you use to grab it?” Bryant asks.

Given these realities, there is little economic incentive today to use methane hydrates for sequestering CO2. But as concentrations rise in the atmosphere and the planet warms further, and as calls for an electric planet intensify, systems that could capture the gas and also provide energy or revenue to run the process might become more viable than techniques that simply pull CO2 from the air and lock it away, offering nothing in return.

 

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Freezing Rain Causes Widespread Power Outages in Quebec

Quebec Ice Storm 2025 disrupted power across Laurentians and Lanaudiere as freezing rain downed lines; Hydro-QuE9bec crews accelerated grid restoration, emergency response, and infrastructure resilience amid ongoing outages and severe weather alerts.

 

Key Points

Quebec Ice Storm 2025 brought freezing rain, outages, and grid damage, hitting Laurentians and Lanaudiere hardest.

✅ Peak: 62,000 Hydro-QuE9bec customers without electricity

✅ Most outages in Laurentians and Lanaudiere regions

✅ Crews repairing lines; restoration updates ongoing

 

A significant weather event struck Quebec in late March 2025, as a powerful ice storm caused widespread power outages across the province. The storm led to extensive power outages, affecting tens of thousands of residents, particularly in the Lanaudière and Laurentians regions. ​

Impact on Power Infrastructure

The freezing rain accumulated on power lines and vegetation, leading to numerous power outages across the network. Hydro-Québec reported that at its peak, over 62,000 customers were without electricity, with the majority of outages concentrated in the Laurentians and Lanaudière regions. By the afternoon, the number decreased to approximately 30,000, and further to just under 18,500 by late afternoon. 

Comparison with Previous Storms

While the March 2025 ice storm caused significant disruptions, it was less severe compared to the catastrophic ice storm of April 2023, which left 1.1 million Hydro-Québec customers without power. Nonetheless, the 2025 storm's impact was considerable, leading to the closure of municipal facilities and posing challenges for local economies, a pattern echoed when Toronto outages persisted for hundreds after a spring storm.

Ongoing Challenges

As of April 1, 2025, some areas continued to experience power outages, and incidents such as a manhole fire left thousands without service in separate cases. Hydro-Québec and municipal authorities worked diligently to restore services and address the aftermath of the storm, while Hydro One crews restored power to more than 277,000 customers after damaging storms in Ontario. Residents were advised to stay updated through official channels for restoration timelines and safety information.

Future Preparedness

The recurrence of such severe weather events highlights the importance of robust infrastructure and emergency preparedness, as seen in BC Hydro's storm response to an 'atypical' event that demanded extensive coordination. Both utility companies and residents must remain vigilant, especially during seasons prone to unpredictable weather patterns, with local utilities like Sudbury Hydro crews working to reconnect service after regional storms.

 

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