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Green Steel in the Ohio River Valley: The Timing is Right for the Rebirth of a Clean, Green Steel Industry

By Jacqueline Ebner, Ph.D., Kathy Hipple, Nick Messenger, and Irina Spector, MBA - Bob Muehlenkamp, April 17, 2023

For more than a century, steel has played an important role in the economy and culture of the Ohio River Valley. But the traditional method of making steel, known as BF-BOF (blast furnace-blast oxygen furnace), requires lots of energy and produces lots of climate-warming emissions. The iron and steel sector is currently responsible for about 7% of global greenhouse gas (GHG) emissions, according to the International Energy Agency.

Shifting to fossil fuel-free steelmaking could reduce greenhouse gas emissions, boost jobs, and grow the region’s economy. Fossil fuel-free DRI-EAF (direct reduced iron-electric arc furnace) steelmaking uses green hydrogen—created with wind and solar energy—to make steel with nearly zero climate-warming emissions.

Investing in fossil fuel-free steelmaking is a win for the climate and the economy. This report looks at Mon Valley Works, a steelmaking facility in southwestern Pennsylvania, as a model for transitioning from carbon-intensive BF-BOF steelmaking to fossil fuel-free DRI-EAF steelmaking.

Key takeaways:

  • A transition to fossil fuel-free steelmaking could grow total jobs supported by steelmaking in the region by 27% to 43% by 2031, forestalling projected job losses. Regional jobs supported by traditional steelmaking are expected to fall by 30% in the same period, data show.
  • Transitioning to fossil fuel-free steelmaking will cut Pennsylvania’s industrial sector emissions by 4 million metric tons of CO2e per year, improving quality of life and saving the state $380 million in health, community, and environmental costs.
  • The Ohio River Valley is uniquely positioned to become a decarbonized industrial hub. A skilled workforce with applicable manufacturing experience, ready access to water and iron ore, and high potential for solar, wind, and green hydrogen development situate the region to lead a growing green manufacturing industry.
  • Billions in federal funding from the Bipartisan Infrastructure Law, the Inflation Reduction Act, and the CHIPS and Science Act will boost demand for American-made steel while supporting worker retraining programs, hydrogen infrastructure, and renewable energy development.

Download a copy of this publication here (PDF).

New Bigger Risks Await Poorly Regulated Rail Industry

By Justin Mikulka - DeSmog, March 31, 2023

In July of 2013, a train carrying Bakken oil from North Dakota derailed and exploded in Lac-Mégantic, Quebec, killing 47 people and destroying the downtown. I spent the five years after that accident researching what happened, following the railroad regulatory process that spans the U.S.-Canada border, and publishing a book about that experience. The main lesson of that book was that the regulatory process in America is deeply flawed and controlled by industry — both rail and oil interests. 

As we approach the 10-year anniversary of Lac-Mégantic, the disaster in East Palestine shows just how little was done to protect the public from these dangerous trains. Meanwhile, the public is facing new rail risks that are receiving scant attention — and once again federal regulators are allowing industry to move forward without proper consideration of the health and safety risks. I live three blocks from a busy rail line and what worries me the most when I hear the trains rumble past is not that they’re carrying vinyl chloride or even Bakken oil, but the looming risk of mile-long trains of liquefied natural gas (LNG) and hydrogen. 

In 2019, then-President Trump issued an executive order to fast-track new regulations that would allow shipping liquefied natural gas by rail without any meaningful guardrails on its transport. 

But Earthjustice and other organizations sued the administration over this move, citing the perils. “It would only take 22 tank cars to hold the equivalent energy of the Hiroshima bomb,” according to Earthjustice attorney Jordan Luebkemann. 

Modeling by the Pipeline and Hazardous Materials Safety Administration (PHMSA) estimates that for a train pulling 100 tank cars of LNG and traveling at 40 miles per hour, a derailment is expected to cause four punctures in the tank cars. 

The Biden administration is reviewing this Trump-era regulation, but the only sensible option is to ban the movement of LNG-by-rail. 

Over the last year, Russia’s invasion of Ukraine has upset global energy markets, giving a big boost to plans to increase exports of American LNG overseas and placing pressure to move as much LNG as possible as quickly as possible — including by rail.

Hydrogen: Fossil Fuel's Latest Hype

US Railroads Lag Behind the World in Railroad Electrification, and the Reason is Private Ownership

By Maddock Thomas - Brown Political Review, March 7, 2023

Railroads in the United States have avoided electrification, lagging behind much of the rest of the world. Consequently, American railroads are some of the largest consumers of diesel. In 2018, they used 4.2 billion gallons of diesel, second only to the US military. This diesel becomes quite expensive when prices spike during fuel crises. While railroads often claim to be improving fuel efficiency, they have failed to invest in the obvious solution: electrification. Railroad electrification would massively reduce pollution, improve operating efficiency, lower costs, and clear the way for faster rail service. With all these benefits, why have American railroads failed to electrify? The answer has to do with monopolization, a short-sighted focus on profit, and lack of national planning. However, it is not too late to correct our failures now. The US can still create a world-class, electrified rail network by nationalizing railroad infrastructure and recognizing it as a public good.

The US rail network is privately owned, largely by two sets of regional duopolies: CSX and Norfolk Southern in the east, and BNSF and Union Pacific in the west. These companies are fastidiously opposed to deploying capital that would improve infrastructure. As a result, they are unwilling to fund electrification and focus on cutting costs and services in order to reap higher profits. 

This refusal to invest in better rail infrastructure in pursuit of short-term profits is short-sighted at best and downright counterproductive at worst. The operating cost of electrified railways is markedly lower than that of those that run on diesel. A study from the 1980s found that electrification had an “economic advantage” over diesel, with a 19 percent pre-tax rate of return on electrifying 29,000 miles of US mainlines. Additionally, it is more than 50 percent cheaper to power a train on electricity than on diesel, especially considering current price hikes. Plus, with regenerative braking and catenaries, when trains are going downhill or slowing, they can sell power back to the grid.

Debunking the Skeptics: Real Solutions For A Clean, Renewable Energy Future - EcoJustice Radio

Alberta’s Roadmap to the New Energy Economy

By Simon Dyer - Pembina Institute, February 21, 2023

Alberta has always been an international leader on energy. Our abundant natural resources, coupled with our proud history of technological innovation in the oil and gas sector— particularly the oilsands—means we are renowned for our ability to use a skilled labour force to reach new frontiers in energy production.

In 2023, Alberta has an opportunity to build on that history and move towards a new energy future. In doing so, it can begin to capitalize on the multiple opportunities associated with the globally emerging clean economy.

To achieve this, Alberta needs a robust, credible plan on climate and energy. The number of governments worldwide that are legislating emissions reduction targets and policy measures to deliver them is rapidly growing each year, and it is time that Alberta joined them. This province — home to some of the world’s foremost experts on carbon capture technology, methane reduction techniques, wind and solar power, and so many other clean energy solutions— has much to offer to the energy transition, and much to gain. The International Energy Agency, for example, estimates 14 million new energy jobs and 16 million new jobs in energy efficiency will be created, worldwide, between now and 2050.

To take advantage of these opportunities, Alberta must also be willing to confront the realities of the global shift towards low-carbon energy sources, and take steps to adapt and futureproof its economy and workforce. The global outlook for fossil fuels, for example, has fundamentally shifted in the last twelve months. In 2022, for the first time, a range of assessments — including from within the oil industry — projected that the current level of worldwide policy momentum on emissions reductions will result in a sustained decline in global demand for oil, beginning this decade. If the world successfully achieves its goal of reaching net-zero emissions by 2050 and avoiding the worst effects of climate change, that demand decline will begin sooner and be steeper — and will have a significant impact on Alberta’s industry. 

Acknowledging these realities, and choosing to show leadership on climate and energy policy, is integral to Alberta’s overall attractiveness as an investment destination. Now more than ever before, companies are looking for opportunities to invest in climate solutions, and for jurisdictions where they can operate while meeting their own climate goals. Choosing instead to remain out of step with the global trend towards low-emissions economies would leave Alberta at a significant disadvantage in the years ahead.

The Pembina Institute is, and has always been, proudly headquartered in Alberta; this is our home. We are committed to seeking out effective, evidence-based policy solutions that can support this province’s communities, economy, and environment. 

As the 2023 provincial election approaches, this document provides our recommendations to future leaders in Alberta to advance this province’s position in the transition towards low-carbon energy. Above all, we think Alberta can and should be a leader on climate and the energy transformation in Canada.

Read the report (link).

How Much Will It Take For A Just Climate Transition In Spain?

By Carolyn Fortuna - Clean Technica, February 4, 2023

Spain will receive almost €869 million from the Just Transition Fund to kickstart its energy transformation in equitable ways.

It’s imperative that the climate transition in Spain work to phase out coal for energy production ahead of its 2030 initial energy scheme planning. If successful, the end result will be a region invested in energy efficiency, circular economy, and clean energy sources. It will foster economic resilience, renewables, and jobs.

And it looks like it just might happen. Spain will receive almost €869 million from the Just Transition Fund (JTF) following the adoption of the Just Transition Program, which includes its Territorial Just Transition Plan (TJTP).

The Just Transition Mechanism (JTM) is a key tool to ensure that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind. The JTM addresses the social and economic effects of the transition, focusing on the regions, industries, and workers who will face the greatest challenges, through 3 pillars.

  • A new Just Transition Fund of €19.2 billion in current prices, is expected to mobilize around €25.4 billion in investments.
  • The InvestEU “Just Transition” scheme will provide a budgetary guarantee under the InvestEU program across the 4 policy windows and an InvestEU Advisory Hub that will act as a central entry point for advisory support requests. It is expected to deploy €10-15 billion in mostly private sector investments.
  • A new Public Sector Loan Facility will combine €1.5 billion of grants financed from the EU budget with €10 billion of loans from the European Investment Bank, to marshall €18.5 billion of public investment.

The JTF will invest in solar, offshore wind, renewable hydrogen, and the green transformation of the country’s industry in several concerning areas, according to the EU:

  • the province of A Coruña in Galicia
  • the provinces of Teruel in Aragón, León, and Palencia in Castilla y León
  • the provinces of Almería, Cádiz, and Córdoba in Andalusia
  • a group of municipalities around Alcúdia on the island of Mallorca

The region of Asturias will receive almost one third of the Spanish JTF funding, in part to support an innovation hub for artificial intelligence in a former mining site.

Pros and Cons of Hydrogen in California’s low-carbon fuel mix

By staff - Climate Action California, February 2023

Hydrogen is touted as the next big thing for non- carbon energy and energy storage. Yet when we look at the facts, it’s not that simple.

Unlike fossil fuels, when hydrogen burns it emits water vapor and NOx, but no CO2. But over its lifecycle, hydrogen is extremely polluting— because making hydrogen is highly energy intensive, and making “green hydrogen” from renewable sources is expensive and likely to displace other uses of renewable electricity. For these reasons, oil and gas interests see the path to hydrogen as a highway to perpetual use of their planet-wrecking products.

Read the entire statement (PDF).

Understanding the Impacts of Hydrogen Hubs on EJ with The Equity Fund

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