West Virginia is at the Epicenter of Today’s Energy Debate
Written by Matthew McKean, CEO and co-founder of Frontieras North America (LinkedIn)
The energy business is not limited to one state, region or country. Energy production is a global effort that helps move our world forward. In between the basic constructs (production, distribution and consumption) of what makes energy available to consumers and business, lies multiple levels of supporting casts – each with their own vested interests and skill sets. This includes entire industries (mining, fracking, drilling, etc.), middlemen (brokers, pipelines, construction, etc.), shipping (including freight and barges) as well as utilities that deliver energy for consumption.
In addition to this vast consortium of companies and governments working together, there are the politics surrounding the energy sector. Politics, and the policies that governments adopt, can, with a stroke of the pen, create and/or shut entire industries down. Outlined below are three significant developments that are coming out of West Virginia that are focused on protecting the vital role that the state plays within the energy sector. According to the Energy Information Administration, West Virginia ranks No. 2 in coal production, No. 5 in natural gas production and No. 5 in total energy production in the country. And if you are a subscriber to this blog then you know that West Virginia is also the future home of Frontieras North America’s first FASForm facility.
Frontieras feels very fortunate to be aligned with West Virginia, its leaders and the local communities as we look to bring solid carbon fractionation to the world’s coal industry. Frontieras North America’s FASForm technology deconstructs coal to extract the volatiles, moisture, and contaminants into three highly profitable forms of energy: gases, liquids, and solids. When the process is complete, Frontieras produces hydrogen, methane, naphtha, diesel, aviation fuel, and FASCarbon™, a clean coal.
Outlined below are three tailwinds that illustrate how West Virginia is actively changing the conversation around coal.
Champion
At the heart of West Virginia’s political leaders is Democratic Senator Joe Manchin and Republican Shelley Moore Capito . The combination of both Senators provides a one-two punch of bipartisanship when advocating for their state’s constituents and as national leaders when discussing energy. Senator Manchin’s mantra “all-of-the-above energy” has allowed him to address his concerns when making critical decisions that impact millions of people. Specifically, this mantra was pointed to when Manchin sank President Biden’s $1.7 trillion social and climate spending package, jettisoned a high-profile nominee for the Federal Reserve, and objected to a plan by the Securities and Exchange Commission to increase corporate accountability for global warming risks.
Manchin’s role within a number of energy committees provides him a unique perspective and we at Frontieras are excited to bring our technology to his doorstep. We believe Senator Manchin and Capito will continue to represent the interests of their constituents and the businesses that operate within the state’s borders.
Supreme Ruling
Recently the Supreme Court ruled in West Virginia versus the Environmental Protection Agency. Siding with West Virginia, the court limited the authority of the EPA to regulate emissions of individual power plants, and clearly stated that the EPA could not implement broad “generation shifting” on the energy sector. Chief Justice John Roberts added, “Capping carbon dioxide emissions at a level that will force a nationwide transition away from the use of coal to generate electricity may be a sensible solution to the crisis of the day, but it is not plausible that Congress gave EPA the authority to adopt on its own such a regulatory scheme.” In layman’s terms, the EPA had the authority to force operators of coal-fired power plants to transition to renewable energy sources. For West Virginia, this is a significant win considering that about 88% of the state’s power is derived from coal, according to the most recent data from the U.S. Energy Information Administration. Just 6% comes from renewable resources, chiefly hydropower and wind energy.
Frontieras’ solution is introducing new technology to the coal industry. The impact will be significant not only for Frontieras’ new FASForm facilities, but existing coal plants as well. Frontieras will allow existing coal plants to quickly capitalize on the technology to expand their offerings and become aligned with improved regulatory needs.
Power of Money
Senator Manchin is not the only one looking out for the best interests of his state’s citizens. State Treasurer Riley Moore issued warnings this past month to the world’s largest financial organizations that firms will be ineligible to enter or remain in banking contracts with West Virginia based on their discrimination against the state’s coal, oil and natural gas industries. Each of the financial institutions, including BlackRock Inc., Wells Fargo & Co., JP Morgan Chase & Co., Morgan Stanley, The Goldman Sachs Group Inc. and U.S. Bancorp have 30 days to respond with information showing they’re not boycotting the fossil fuel industry.
This is a significant shift in policy and is holding leaders of the world’s largest financial institutions accountable for their actions. Similar to the current administration, we believe that the overall Environmental, Social, and Governance (ESG) movement is discriminating against traditional energy sources. We believe that hydrocarbons will continue to play a significant role in both the short- and long-term correction of the current energy crisis.
For instance, the headlines this week are littered with stories from leading publications about how countries are now backtracking on their use of coal. Specifically, short term coal purchases have increased across the globe as the world’s largest economies work to ensure that power needs are met for both consumers and businesses. This shift in strategy is best represented by Germany. Germany has been a staunch supporter of the 2015 Paris Agreement that is focused on a highly debatable and scientifically questionable mandated means of government actions to avoid the potential consequences of global warming. In its exuberance to lead the charge, Germany took several steps including shutting down its existing nuclear and coal plants to embrace renewable energy and achieve compliance by 2030. With a short-term view now exposed as naive, Germany (along with other countries outside of EMEA) now finds itself among many of the other leading European countries increasing its coal production to satisfy the energy demands.
West Virginia has been a constant in our nation’s energy discussion. Manchin’s “All-of-the-above energy” mantra has allowed him to toe the line in terms of representing not only his constituents and the natural resources that are contained within his state, but also become a voice of reason for the nation in terms of a balanced approach to energy production and use. Manchin’s long term and balanced perspective surrounding energy is in direct conflict with many of today’s leaders that rushed to embrace unproven, non-sustainable and unreliable renewable technology. The impact of this shortsighted view has led to horrible consequences, including the current energy crisis, increased inflation and a level of global backtracking never seen before.
At Frontieras, we believe in affordable, abundant and available energy. Frontieras’ technology builds upon proven technologies to produce yields that have not been recognized in the past. Because Frontieras captures the various volatiles (i.e. hydrogen) and repurposes them within the facility, it creates a carbon-friendly environment that helps achieve the standards set out by politicians.
To learn more about Frontieras North America and its patented energy solution, please visit our site at www.Frontieras.com.