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Monday, January 20, 2020

Forced Decarbonization -- Problems of Industrial Electrification, such as "Emissions Leakage"

SUMMARY:
"Deep decarbonization"
includes electrification 
of all residential buildings 
commercial buildings,
and industrial power 
needs.

The ultimate goal 
is replacing the use
of natural gas, propane
heating oil and coal.

There are
at least two 
important 
commercial 
applications 
where 
electricity 
can't compete 
with the fuels 
they now use:

(1)
Production of steel, 
from iron ore, 
in a blast furnace. 

Steel is Iron 
alloyed 
with carbon 
( around 1% ).

Blast furnace fuel 
is “coke” ( a form 
of processed coal ). 

The electric 
alternative 
to a blast furnace 
is the arc furnace. 

Arc furnaces 
produce steel 
mainly from
recycled scrap.

In blast furnaces, 
using iron ore, 
the coke ( coal )
supplies the carbon. 

Arc furnaces 
get their carbon 
from the scrap 
and/or 
operators 
must add 
some carbon 
to achieve the 
steel recipe 
they're making.

Blast furnaces 
can be gigantic.

Arc furnaces 
tend to be small.

and 

(2)
Commercial flying, 
where jet fuel remains 
the only practical choice.

Electric airplanes 
do exist, and are 
already being used 
commercially,
but only for 
VERY 
short trips



The alleged
environmental and 
economic benefits 
of full scale 
electrification 
are highly 
doubtful. 

The drive for 
full industrial 
electrification
is undermining 
our market 
economy.  

To create 
the strongest 
U.S. economy, 
the right answer 
is to remove 
all subsidies, 
mandates, and 
other forms of 
energy favoritism,
letting energy 
technologies 
advance, 
or fail, 
in markets,
based on
true merits.



DETAILS:
This article is about
commercial needs 
for power.

According to the 
National Academies 
of Science ( NAS ), 
natural gas provides 
the largest portion 
of U.S. industrial 
energy use overall.

Different industries 
have very different 
energy intensities, 
and requirements

Energy costs 
account for 
vastly different 
proportions of 
total production 
costs.

Industries reliant 
on digital controls, 
such as computer 
chip manufacturers, 
require ‘perfect power’, 
zero harmonic distortion 
and voltage/frequency 
variation.  

That requires electricity.

High quality 
electricity 
can also be 
produced 
on-site using
natural gas-fueled 
combined heat 
and power (CHP).

Industries that 
just need heat 
are served 
well by 
inexpensive 
natural gas. 


While the cost 
of renewables 
have been declining, 
fossil-fuel equipment, 
and the fossil fuels
themselves, are also 
becoming cheaper.

Oil and gas costs, 
can be locked-in 
for months, years, 
or longer, to remove 
price risk.



Adding renewables
has NOT lowered 
overall retail electricity 
prices for any sector. 

The EIA says 
the opposite is true: 
 Electricity prices 
are increasing from
the increasing use 
of renewables.


Industrial consumers 
usually choose the 
most affordable energy,
if they have a choice.

Government-imposed 
industrial electrification 
in the U.S. will lower
the probability of 
manufacturing jobs
returning to the U.S., 
from overseas.

Labor costs and 
regulations, especially
environmental regulations,
also affect profitability. 



"EMISSIONS  LEAKAGE"
Forced electrification, 
and other environmental
regulations, cause
industries to shut down, 
or move elsewhere. 

Business flight has 
real environmental 
impacts, often called
"emissions leakage".

Renewable 
energy policies 
are in place 
in Europe.

They are just starting
to spread in the U.S.

These policies accelerate 
the shift of manufacturing
to Asia, Africa and South 
America. 

A manufacturer 
who moves to Asia, 
or expands in Asia
rather than expanding 
in the U.S., 
is likely to cause 
higher CO2 emissions, 
not to mention having 
fewer manufacturing
jobs in the U.S.  

Because jobs 
are moved to, 
or new jobs
are created in, 
countries with 
less stringent 
environmental 
regulations.

At the least, 
there will be higher 
carbon emissions 
from transporting 
the manufactured 
products over 
long distances,
perhaps from Asia
to the U.S.

Exporting 
industrial 
emissions 
out of the U.S.,
and increasing
total global 
CO2 emissions,
makes no sense 
environmentally, 
or economically.

Forced 
commercial 
electrification
encourages 
emissions leakage
to other nations.
that do not force
industries into
"electrification".