September 2025: Hydrogen's Role in Our Tomorrow
In the latest issue, the International Energy Agency (IEA) has called for a more coordinated global approach to the deployment of Liquefied Natural Gas (LNG) in power generation. The emphasis is on international cooperation to ensure a smooth and sustainable energy transition.
The rise of LNG in developing economies is a trend that is gaining momentum. According to a new report, LNG's share in the global power mix could double by 2050, driven by its dispatchable nature and declining costs. This shift is particularly notable in Asia, where the growing demand for electricity is being met, in part, by LNG.
LNG is being repositioned as a long-term, lower-carbon solution, often in conjunction with carbon capture and storage (CCS) technology. While major US midstream operators like ONEOK are involved in LNG development and production, explicit corporate plans for CCS integration in LNG operations are not detailed in the sources. However, the importance of CCS and carbon capture utilization and storage (CCUS) in broader energy transition strategies involving fossil fuels and gas use is recognized.
The IEA predicts that CCS could reduce LNG's emissions by up to 90% by 2050. This integration is expected to significantly reduce LNG's carbon footprint, moving it towards a more permanent role in the net-zero energy mix.
Financial institutions are re-engaging with projects that integrate LNG and decarbonisation. The expansion of LNG infrastructure is seen as crucial for the widespread adoption of LNG as a power source, especially in regions with limited grid connectivity.
The use of LNG in power generation is also being leveraged to balance the grid, especially in regions with high renewable energy penetration. This is particularly important as renewables cannot yet provide the dispatchable reliability that LNG offers.
Energy security needs are a significant driver for the increased demand for LNG. The IEA also emphasizes the importance of investing in LNG infrastructure to ensure energy security, particularly in regions vulnerable to supply disruptions.
Carbon intensity metrics are being incorporated into LNG offtake agreements, further underscoring the industry's commitment to reducing its carbon footprint.
In conclusion, the September issue delves into the growing use of LNG in power generation, a trend that is shaping the energy landscape. As the world moves towards a net-zero future, LNG is poised to play a crucial role, provided it can effectively integrate carbon capture and storage technologies.
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