IEEFA North America

Utilities and pipeline developers in the U.S. Southeast are planning a major buildout of #naturalgas infrastructure over the next 15 years, largely driven by forecasted demand for artificial intelligence (AI) #datacenters. In her latest report, IEEFA Energy Consultant Cathy Kunkel found that there is a real threat of overbuilding power plants and pipelines, as it is uncertain whether data center demand will materialize at the levels forecasted, in part due to the questions around the financial viability of #AI. “In the absence of proactive decisions by utilities or regulators, electric ratepayers will subsidize the building of new infrastructure that would not be needed in the absence of data centers and will be on the hook for overbuilt infrastructure," said Cathy. Building out electrical infrastructure—especially gas infrastructure—to serve data centers that may not ever exist is slowing the #energytransition. Learn more in the report: https://hubs.li/Q038qzn00 and the associated fact sheet: https://hubs.li/Q038qhYX0 or watch Cathy Kunkel and Dennis Wamsted unpack the report's findings in a recorded webinar: https://hubs.li/Q038qp5l0

Cost challenges threaten the ability of the large, planned Pathways Alliance carbon capture and storage (CCS) project in Alberta to achieve financial #sustainability, according to a recent report from IEEFA Energy Finance Analyst Mark Kalegha. The report examined the two currently operating #CCS projects in Canada and identified troubling cost implications for the Pathways CCS project, raising the concern that the Canadian federal government and the province of Alberta may be pressured to make up the likely shortfall. Key findings: ?? Total costs including interest, insurance, depreciation and taxes for existing commercial-scale #carboncapture plants in Alberta are approaching thresholds that threaten profitability. ?? Rising project costs are not being offset by commensurate increases in CO2 capture volumes and associated revenue ?? CCS operating revenues are uncertain. ?? Performance risk is financial risk.Without substantial efficiency improvements, the cost per tonne of CO2 captured is likely to exceed the revenue that the project can generate for each tonne captured. The lack of demonstrated success and heightened financial risks for CCS in #Canada indicate public investments are unlikely to yield the desired environmental or economic benefits. Read the report here: https://hubs.li/Q038qh0L0 and watch Mark unpack the findings of this report in a recorded webinar: https://hubs.li/Q038qbQ20

The Institute for Energy Economics and Financial Analysis (IEEFA) is excited to announce the launch of our newest regional showcase page: IEEFA North America! With the launch of this dedicated showcase page, our goal is to provide you with the latest insights, analysis, and data from the experts on IEEFA's North America team. In our latest report, two of our analysts examined the opportunities and challenges facing hydrogen as an alternative fuel for maritime shipping: https://hubs.li/Q037gmC20 Whether you're looking for updates on hydrogen and other emerging technologies, #LNG, fossil fuel divestment, or #petrochemicals, our North America team has got it covered. Follow IEEFA North America today for IEEFA content tailored specifically to the North American #energytransition! #EnergyPolicy #GreenEnergy #Sustainability #Renewables #RenewableEnergy #Canada #UnitedStates #Mexico #PuertoRico