Gas utility engineering stories from the field

Gas utilities are facing new challenges as they adapt to increasing pressure from stringent codes, standards and electrification policies. During our Gas Utility Engineering session at the 2024 CLEAResult Energy Forum, industry experts discussed the novel approaches that are keeping natural gas programs viable. This session offered practical insights on how utilities can continue to deliver energy savings through emerging technologies, from gas heat pumps to carbon capture. 

Natural gas heat pumps: Staying in the conversation

One of the session's key discussions focused on gas heat pumps (GHPs), a technology that is playing an important role in balancing the push toward electrification with the continued relevance of gas. In regions that are difficult to electrify, such as remote areas or large-scale industrial sites, gas engine heat pumps (GEHPs) and gas absorption heat pumps (GAHPs) offer efficient heating solutions that still reduce energy consumption. GAHPs, which use ammonia-water solutions instead of a traditional compressor, have shown impressive results as a replacement for gas boilers, consistently achieving a coefficient of performance (COP) above 1.0.

One panelist piloted GAHPs in two low-rise office buildings, achieving 25% energy savings by integrating them with existing hydronic heating systems. These systems allow the GAHPs to carry the heating load before the less efficient boilers kick in. However, the payback period remains long, between 13–16 years. One client conducted a similar pilot with 14% savings and a shorter payback period, but both pilots highlight the challenges of implementing gas heat pumps in the current market. High costs and the need for specialized installers create barriers, though public facilities have more options to tap into grants and incentives.

Gas heat pumps offer a pathway to improved efficiency in areas where electrification is difficult or impractical, but the industry must address cost and market barriers, including installer training and incentive alignment.

Small-scale carbon capture: the next frontier?

Small-scale carbon capture has the potential to make gas-fired equipment more sustainable. Although carbon capture technology has existed for decades, it has mostly been used in large-scale applications like power generation. Small-scale carbon capture aims to create refrigerator-sized units that can capture emissions from boilers, furnaces and industrial processes.

This technology still faces hurdles. Capturing and storing CO2 on a smaller scale is less efficient and more costly than larger systems. One example was a high-rise building using combined heat and power systems, where carbon capture equipment was installed in the basement to store CO2 for use in building materials like concrete. Despite its potential, small-scale carbon capture struggles with high energy needs and challenges in CO2 storage and transportation.

Small-scale carbon capture is a promising development, but it’s not yet cost-effective for widespread use. Utilities should monitor this technology but recognize the current limitations in scaling it for smaller projects.

New opportunities for energy efficiency programs

The future of gas energy efficiency programs was a major focus, with panelists emphasizing the importance of maintaining gas’s role in meeting grid capacity needs. Natural gas is still the most reliable option for certain applications, particularly in energy-intensive industries like data centers and crypto mining, where electricity alone cannot meet demand. The panelists argued that gas utilities should advocate for non-energy benefits and cost-effectiveness tests that include the environmental and societal value of reducing carbon emissions through gas-based technologies.

For example, carbon capture utilization and storage has shown promise at larger scales but needs further development to be feasible for commercial and residential applications. The panel highlighted the importance of continuing to invest in technologies like gas heat pumps and carbon capture, while also working to integrate hydrogen-ready equipment into the gas infrastructure.

Gas utilities should innovate around emerging technologies, while also pushing for policies that account for the full environmental benefits of gas.

Key takeaways

• Explore gas heat pumps. GAHPs and GEHPs provide a valuable tool for areas that are hard to electrify. Focus on finding incentives and training programs to lower installation costs and overcome market barriers.
• Watch carbon capture developments. Although small-scale carbon capture isn’t ready for mass deployment, keeping an eye on future advancements can position utilities to lead when the technology becomes more practical.
• Advocate for policy support. Utilities should work to ensure that non-energy benefits like emissions reductions are considered in cost-effectiveness tests for gas programs, making it easier to justify continued investment in gas efficiency technologies.
• Look toward hydrogen. Hydrogen-ready equipment can help future-proof gas infrastructure and keep natural gas in the conversation as renewable energy sources expand.
   

Check out more lessons learned from our 2024 CLEAResult Energy Forum conference.