Beyond the Light Switch: How Energy Demand Reveals a Society’s Strength
March 19th, 2024
Written by Matthew McKean, CEO and co-founder of Frontieras North America (LinkedIn)
With Super Tuesday complete and the U.S. presidential candidates now established, the American public is witnessing two contrasting views surrounding energy production, storage, and distribution. Energy is the lifeline of societal advancement, the global economy, and innovation. A nation's ability to deliver energy is a measuring stick of its health, as it facilitates much more than simply turning on the lights.
Regardless of political views, continued regulation restricting the use of America's abundant energy sources will lead to similar challenges and struggles that face our European allies today. Frontieras North America’s state-of-the-art FASForm™ technology delivers abundant, affordable, and available energy through hydrocarbon processing to deliver solid, liquid, and gaseous energy products.
U.S. utilities and grid operators project electricity demand to rise 2.6% to 4.7% over the next five years. This growth, beyond population increase, is driven by new technologies like cloud computing, telecommunications, digitization, and artificial intelligence (AI). AI is expected to significantly improve efficiency and innovation across industries, further increasing electricity demand. I covered this topic specifically in my recent blog - “AI and Frontieras Converge As Demand for Energy Consumption Expected to Rise 10+ Fold.”
We need only look to Europe to understand the downsides of poor energy regulations and unrealistic objectives. A recent Bloomberg article delivered a stark message: "Germany's days as an industrial superpower are coming to an end." This decline isn't limited to Germany, as Europe too is witnessing shrinking industrial capacity. For example, Tata Steel's closure of its last British blast furnaces, potentially leading to 2,800 job losses, and Slovalco's aluminum smelter closures in Slovakia are clear indicators of Europe's economic challenges. These closures stem from flawed policies, including unrealistic net-zero goals, over-reliance on now scarce Russian natural gas, and aggressive decarbonization mandates.
The repercussions are evident within the European Commission’s own data that shows a 5.8% decline in industrial output within the past year. Electricity prices throughout Europe have tripled since pre-pandemic times, burdening businesses and consumers. Large businesses in Britain now pay up to five times more for electricity than in 2004.
In contrast to Europe's decline, China and India, with robust economic expansion, lead the charge in electricity demand. China's power demand surged by 6.4% in 2023, while India experienced a 7% jump. Predictably coal remains the primary source for this demand, highlighting its continued importance for growing economies.
Embracing the Power of Coal as a Solution
While Europe grapples with deindustrialization, coal emerges as a potential solution. China and India's economic growth, largely fueled by coal, showcases its resilience and importance for meeting energy demands. Europe's staggering 6% decline in industrial electricity use in 2023 alone underscores the urgent need for a strategic reevaluation of energy policies.
Coal, a proven and stable source of energy, is poised to play a crucial role in revitalizing European industries. The over reliance on renewables has led to an unstable grid and exorbitant electricity prices. Introducing a balanced energy mix that includes coal as a reliable baseload power source could provide the stability needed to revive industrial output.
Europe's industrial decline is not irreversible; it's a result of misguided policy decisions. Neglecting the rational role of coal in ensuring energy security and economic stability has contributed to this decline. As we navigate the complex energy transition landscape, a reassessment of European energy policies is imperative. By acknowledging coal's importance in meeting the energy demands of growing economies, Europe has the opportunity to reverse its decline and pave the way for a more robust and sustainable future.
How Frontieras’ New Processing Technology is Poised to Influence the Market
Frontieras' innovative clean technology, FASForm™, promises to revitalize coal use, extend the lifespan of existing coal plants, and significantly increase the output of available hydrocarbon-based energy.
The FASForm plant offers a solution for existing coal plants. It allows them to adopt new technology, produce cleaner products, and achieve more efficient yields in the form of gas, liquids, and solid energy. Frontieras believes FASForm technology has the potential to be a game-changer for American coal plants.
Frontieras has a two-pronged go-to-market strategy for the FASForm plant. We plan to operate both independently and collaboratively with existing coal plants facing decommissioning. Firstly, we are developing the first standalone plant in West Virginia. Secondly, the footprint of FASForm plants allows them to be built adjacent to existing facilities since they can co-utilize existing infrastructure and logistics This approach expands the lifecycle and value of these coal plants.
Frontieras' cooperative approach offers multiple benefits. It allows for the modernization of existing coal plants, helping them meet evolving regulatory requirements. Additionally, it improves output by generating higher-quality energy products, ultimately extending the lifespan of the plants.
The Frontieras Difference: Coal Processing
Frontieras' Coal-Plant Conversion equips existing plants with key infrastructure to utilize hydrogen, natural gas, and FASCarbon™. This significantly reduces coal combustion, CO2 emissions, and pollutants.
Frontieras' Solid Carbon Fractionation process truly embodies the concept of clean technology. Built alongside existing plants, it processes coal before it enters the main facility. This eliminates waste from processing and extracts valuable liquids and gases from the solid material. The process also produces a purified solid carbon product known as FASCarbon™.
The advantage of FASCarbon is that the volatiles are already removed during the FASForm process. This makes it ideal for industrial uses like steel and cement production, where carbon is used for heat generation. Additionally, FASCarbon boasts a 90% reduction in sulfur compared to Petcoke. This translates to a lower carbon footprint and reduced CO2 emissions (when the coal plant burns the FASCarbon through its existing processing plant).
Furthermore, Frontieras' FASForm technology produces a range of other high-value gas and intermediate liquid fuels, including methane, naphtha, kerosene, and diesel. These products provide additional revenue streams for the plants. The production of these diverse energy products helps address the current energy crisis by providing energy security for multiple sectors. It can also contribute to a stronger and more vibrant community around the plant's location.
These perspectives on the global energy market are my own. If you are interested in learning more about Frontieras, its FASForm technology or the Frontieras management team, please visit www.frontieras.com