Max Renewable Energy: eNG-Based Electrification Outperforms Direct Electric Heating

The global push for decarbonization is intensifying, and as cities like New York implement policies such as Local Law 97 (LL97), the tension between energy efficiency and energy storage has come into sharp focus. At the heart of this issue lies a fundamental question: should we prioritize systems that are energy-efficient in isolation, or those that maximize the utilization of renewable electricity while minimizing the reliance on polluting fossil fuel assets like gas-fired peaker plants? Electric Natural Gas (e-NG) Coalition 's approach to electrification incorporates chemical energy storage in the form of eNG and definitively provides the lowest carbon index of heat relative to direct-electric heating.

Direct Electric Heating Systems: Efficiency with Hidden Costs

Electric heat pumps, in particular, can achieve coefficients of performance (COP) exceeding 3.0, producing three units of heat for every unit of electricity consumed. On the surface, this efficiency appears to make them an ideal choice for decarbonizing buildings. However, their dependence on real-time electricity from the grid introduces critical challenges.

The issue arises during peak demand periods—cold winter days when heating requirements are at their highest. These periods coincide with the activation of gas-fired peaker plants, which are the dirtiest and most carbon-intensive assets on the grid. These plants emit not only significant greenhouse gases (GHGs) but also nitrogen oxides (NOx) and particulate matter, contributing to local air pollution and exacerbating health issues in surrounding communities. By relying on electricity at precisely these times, direct-use electric heating systems inadvertently maximize the utilization of these peaker plants, undermining their environmental benefits and amplifying pollution in densely populated areas.

Chemical Energy Storage-Based Electrification: A Cleaner Alternative

Chemical energy storage offers a fundamentally different approach to electrification, one that aligns energy use with the availability of cleaner electricity. Our system exemplifies this approach by producing synthetic natural gas (eNG) using electricity during off-peak hours, when the grid is less stressed, and peaker plants are inactive. This gas can then be stored and used as needed by existing boilers and steam distribution infrastructure; providing a reliable source of energy for heating without placing additional strain on the grid during peak periods.

By decoupling energy generation from consumption, we avoid the real-time reliance on the grid that characterizes direct-use electric heating systems. This eliminates the need for gas-fired peakers to meet heating demands, significantly reducing GHG emissions, NOx, and particulate matter. The result is a cleaner, healthier, and more sustainable approach to building electrification.

The Infrastructure Challenge: Peak Demand vs. Off-Peak Utilization

Direct-use electric heating systems also create infrastructure challenges. Meeting peak heating demand often requires substantial upgrades to a building's electrical service capacity. For example, a building that previously required 1 MW of electrical capacity might need up to 10 MW during extreme weather events to power electric heating systems. This not only incurs significant costs but also places additional strain on the grid, which must be built to accommodate these infrequent peaks.

Our system requires only enough electrical capacity to produce eNG during off-peak hours. By spreading energy consumption over several hours, rather than concentrating it in short, high-demand periods, the system minimizes the need for costly grid upgrades. This makes it a viable electrification solution even for buildings that would otherwise be deemed ineligible due to infrastructure constraints.

A Broader Vision for Decarbonization

The tension between energy efficiency and energy storage highlights a critical challenge in the energy transition. Systems that prioritize efficiency in isolation often fail to address the broader context of grid dynamics, emissions, and public health. Chemical energy storage-based solutions offer a pathway to decarbonization that is not only cleaner but also more aligned with the realities of grid operation and urban infrastructure.

As cities and industries grapple with the complexities of the energy transition, the choice between direct-use electric heating and energy storage-based systems will shape the trajectory of decarbonization efforts.