Natural Gas: A Competitive Energy Solution Compared to Renewables Through CCS

Natural gas combined with carbon capture achieves emission levels comparable to wind and solar power, positioning itself as an economical alternative to renewables despite intermittency and high battery storage costs.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Natural gas remains a critical component of global electricity generation due to its flexibility and constant availability, essential characteristics for balancing energy grids. However, its usage is constrained by the need to control greenhouse gas (GHG) emissions. In this context, Carbon Capture and Storage (CCS) technology significantly reduces these emissions, positioning natural gas at emission levels comparable to renewable energy sources like wind or solar.

Emission Reduction: A Strategic Necessity

According to current data, life-cycle emissions from gas-fired power plants equipped with CCS can reach levels similar to renewable energies. Achieving this performance depends on optimizing industrial processes, such as electrifying gas compressors and minimizing fugitive methane emissions. In British Columbia (Canada), stringent regulations reduced fugitive methane emissions by 81% between 2006 and 2021, making the region a model for other jurisdictions.

Methane emissions represent a major factor in the environmental assessments of natural gas, contributing approximately 50% of global emissions in several regions. Strict implementation of leak detection and repair programs and drastically limiting gas flaring are therefore crucial. These measures, combined with using electrically powered compressors supplied by low-carbon energy, could reduce natural gas emissions to only 1.46 gCO₂e/MJ.

Natural Gas with CCS: Enhanced Competitiveness

By incorporating carbon capture rates of up to 98.5%, gas-fired power plants equipped with CCS can achieve emission intensities similar to wind facilities. Thus, a combined-cycle gas power plant with CCS can present emissions ranging from 22 to 62 kgCO₂e/MWh, depending on the processes employed. By comparison, wind power ranges from 13 to 18 kgCO₂e/MWh, and photovoltaic solar from 59 to 77 kgCO₂e/MWh, depending on location.

The economic competitiveness of natural gas equipped with CCS becomes even more attractive when considering additional costs associated with intermittent renewable energy sources. Battery storage solutions significantly increase the overall cost of electricity from solar or wind sources, making CCS-equipped natural gas economically competitive, particularly in grids requiring reliable and steady production.

Impact of Operational Cycles on Emissions

Frequent start-stop cycles of gas-fired power plants increase GHG emissions, primarily due to the increased energy demand to restart carbon capture systems. However, technical solutions, such as temporary storage of CO₂-loaded solvents, effectively limit these emissions. Recent studies demonstrate that these devices could significantly minimize the impact of cold starts, reducing the environmental vulnerability of CCS-equipped natural gas even during intermittent operations.

The superior operational flexibility of combined-cycle gas plants compared to nuclear or coal-fired plants provides a strategic advantage in responding to rapid demand fluctuations. This flexibility, combined with optimized carbon capture processes, makes natural gas particularly suitable for modern energy grids characterized by a high penetration of intermittent renewable energies.

Key Policies and Regulations for Successful Integration

Energy policies represent a fundamental lever for promoting widespread adoption of low-emission natural gas. Mechanisms such as border adjustment tariffs based on lifecycle GHG emissions from imported gas could encourage cleaner production globally. In the United Kingdom and Canada, regulations already require a minimum CO₂ capture rate of 95% from gas plants, a trend that may expand to other regions to ensure environmental and economic competitiveness of this technology.

The regulatory evolution observed in several jurisdictions, including British Columbia, demonstrates the feasibility and effectiveness of emission-reduction policies associated with natural gas production and utilization. These regulatory models are expected to play a critical role in shaping the global energy future, facilitating the integration of natural gas with CCS into low-emission energy strategies.

McDermott has signed a contract amendment with Golden Pass LNG Terminal to complete Trains 2 and 3 of the liquefied natural gas export terminal in Texas, continuing its role as lead partner on the project.
Exxon Mobil will acquire a 40% stake in the Bahia pipeline and co-finance its expansion to transport up to 1 million barrels per day of natural gas liquids from the Permian Basin.
The German state is multiplying LNG infrastructure projects in the North Sea and the Baltic Sea to secure supplies, with five floating terminals under public supervision under development.
Aramco has signed 17 new memoranda of understanding with U.S. companies, covering LNG, advanced materials and financial services, with a potential value exceeding $30 billion.
The Slovak government is reviewing a potential lawsuit against the European Commission following its decision to end Russian gas deliveries by 2028, citing serious economic harm to the country.
The European Union is extending its gas storage regime, keeping a legal 90% target but widening national leeway on timing and filling volumes to reduce the price pressure from mandatory obligations.
The Mozambican government has initiated a review of the expenses incurred during the five-year suspension of TotalEnergies' gas project, halted due to an armed insurgency in the country’s north.
The number of active drilling rigs in the continental United States continues to decline while oil and natural gas production reaches historic levels, driven by operational efficiency gains.
Shell sells a 50% stake in Tobermory West of Shetland to Ithaca Energy, while retaining operatorship, reinforcing a partnership already tested on Tornado, amid high fiscal pressure and regulatory uncertainty in the North Sea.
Russian company Novatek applied major discounts on its liquefied natural gas cargoes to attract Chinese buyers, reviving sales from the Arctic LNG 2 project under Western sanctions.
A first vessel chartered by a Ukrainian trader delivered American liquefied gas to Lithuania, marking the opening of a new maritime supply route ahead of the winter season.
A German NGO has filed in France a complaint against TotalEnergies for alleged war crimes complicity around Mozambique LNG, just as the country seeks to restart this key gas project without any judicial decision yet on the substance.
Hut 8 transfers four natural gas power plants to TransAlta following a turnaround plan and five-year capacity contracts secured in Ontario.
By selling its US subsidiary TVL LLC, active in the Haynesville and Cotton Valley formations in Louisiana, to Grayrock Energy for $255mn, Tokyo Gas pursues a targeted rotation of its upstream assets while strengthening, through TG Natural Resources, its exposure to major US gas hubs supporting its LNG value chain.
TotalEnergies acquires 50% of a flexible power generation portfolio from EPH, reinforcing its gas-to-power strategy in Europe through a €10.6bn joint venture.
The Essington-1 well identified significant hydrocarbon columns in the Otway Basin, strengthening investment prospects for the partners in the drilling programme.
New Delhi secures 2.2 million tonnes of liquefied petroleum gas annually from the United States, a state-funded commitment amid American sanctions and shifting supply strategies.
INNIO and Clarke Energy are building a 450 MW gas engine power plant in Thurrock to stabilise the electricity grid in southeast England and supply nearly one million households.
S‑Fuelcell is accelerating the launch of its GFOS platform to provide autonomous power to AI data centres facing grid saturation and a continuous rise in energy demand.
Aramco is reportedly in talks with Commonwealth LNG and Louisiana LNG, according to Reuters, to secure up to 10 mtpa in the “2029 wave” as North America becomes central to global liquefaction growth.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.