The CEO of Williams Companies, a pipeline giant, believes that the growing demand for wind and solar-generated electricity will necessitate the development of more natural gas infrastructure to prevent power outages.
These remarks from Alan Armstrong contradict climate policies that aim to reduce the use of fossil fuels like natural gas in US power grids.
While clean energy sources like wind and solar have become cheaper and gained market share, the increase in electric vehicle and heavy industry usage will put additional strain on the grid. Armstrong argues that more pipelines will be necessary to supply gas-fired generators that can serve as backup for intermittent renewable systems.
Armstrong told the Financial Times, “Nobody’s ever going to be comfortable saying: ‘Oh, we’re willing to risk that for five days, we don’t have wind or solar and we’re not going to have a back-up’.”
Williams Companies, with a market value of $37bn, is responsible for gas transportation and operates over 30,000 miles of pipelines, including the Transco system used to transport shale gas from Texas to the east coast.
The federal Energy Information Administration predicts a significant increase in wind and solar power generating capacity in the coming decades due to clean energy subsidies signed into law by President Joe Biden. However, forecasts for natural gas demand by 2050 vary widely, with a doubling of total generation capacity expected to meet the increased load on the grid.
Armstrong stated, “It’s great to have renewables, but it doesn’t change the need for incremental gas capacity as we electrify.”
These comments come shortly after the Biden administration agreed to expedite approvals for the Mountain Valley gas pipeline, highlighting their support for gas infrastructure.
Armstrong criticized the delayed and cost-inflated Mountain Valley gas pipeline project while acknowledging its inclusion in the recent debt ceiling deal as a show of support.
According to Armstrong, US energy secretary Jennifer Granholm has recognized the practical limitations of transitioning to clean energy at an accelerated pace after meetings with utility company representatives.
Armstrong also expressed understanding for climate activists who oppose hydrogen and carbon capture and storage technologies. He explained that these technologies consume significant amounts of electricity during production, potentially leading to an increase in fossil fuel usage.
Williams is involved in hydrogen hubs and sees potential benefits in shipping carbon dioxide and hydrogen across the country. However, Armstrong stressed the economic and emissions drawbacks of these technologies.
Climate Capital
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