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WATER RISK TO COAL: Fossil fuel plants, long considered a more reliable source of power, could also be at risk as persistent drought and heat wreak havoc in the West, sending water levels at the Colorado River— which supplies water to seven states and the nation’s two largest reservoirs — plummeting to historic lows.
The Colorado River provides water to some 40 million Americans, and feeds a roughly $15 billion agricultural industry. But it is also crucial to the region’s 30 coal plants.
Large quantities of water are required throughout the generation process— first, to burn coal to generate power, and then later, for the cooling process.
A 2020 study from S&P Global found that more than 61% of fossil fuel plants and nuclear power plants in the Lower 48 are located in areas that could face medium-high to extremely high water stress in 2030.
This is exacerbated for coal plants. Larger coal plants can consume between 10 and 20 million gallons of water per day, said Joe Smyth, a research manager at the utility watchdog Energy and Policy Institute.
Combined, these facilities in the West use more than 155 million gallons of water a day, according to data from the U.S. Energy Information Administration.
“As climate change fuels hotter and drier conditions in the West, utilities and their regulators will need to take into account those conditions as they consider how to operate their existing power plants and plan new resources,” Smyth told Breanne.
“For example, replacing coal plants with wind, solar, and battery storage resources essentially removes this water supply risk, because those resources require almost no water. Gas plants use less water than coal and nuclear plants, so the water supply risk is lower— but still there, especially in arid regions like the West,” he said.
“Adding carbon capture projects to coal plants would significantly increase water needs, so that approach exacerbates water supply risks,” he added.
But that’s not the only area whose coal plants are threatened by hotter and drier conditions: In its summer reliability assessment, the North American Electric Reliability Corporation said drought conditions near the Missouri River Basin could also affect power plants and coal plants in the area.
As Smyth notes, this includes parts of North Dakota, Wyoming, Montana, Nebraska, Kansas, and Missouri–which are home to several large coal plants.
“Those power plants face water supply risks over the coming years, and this is something that utilities and state regulators will need to consider as the plan for the future,” he told Breanne.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment Writers Jeremy Beaman (@jeremywbeaman) and Breanne Deppisch (@breanne_dep). Email jbeaman@washingtonexaminer.com or bdeppisch@washingtonexaminer.com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
U.K. TO SEE 80% SPIKE IN ENERGY COSTS, REGULATOR SAYS: Energy prices for most British residents are expected to soar roughly 80% higher beginning this fall, Britain’s energy regulator said, further exacerbating a cost-of-living crisis in a country already hard-hit by high gas costs and its highest inflation rate in four decades.
Ofgem CEO Jonathan Brearley said today that U.K. residents should expect to see an 80% increase in their annual household electricity bills, sending average consumer costs from $2,332 a year to $4,205.
MEANWHILE, IN RUSSIA: Russia is burning off large amounts of natural gas at one of its plants near the border with Finland—supplies that would have otherwise been sent to Europe amid the bloc’s ongoing energy crisis, BBC News reports.
Citing analysis from Rystad Energy, BBC said the plant, located near the Portovaya compressor station, is burning an estimated $10 million worth of gas each day. Since June, researchers have noted a “significant” increase of heat emanating from the facility, indicating the potential burning of natural gas. (That’s the same month Russian state-owned energy giant Gazprom announced it would slash gas deliveries to the EU by 40% via its Nord Stream 1 pipeline.)
Experts say that gas previously would have been sent to Germany—which is racing to fill its gas storage tanks, finish construction of floating LNG terminals, and secure alternative energy supplies before winter.
Germany’s ambassador to the U.K, Miguel Berger, suggested Russia is burning the gas because they couldn’t sell it elsewhere: "They don't have other places where they can sell their gas, so they have to burn it," he said.
U.S. CLAIMS ‘CONSTRUCTIVE TALKS’ WITH INDIA ON OIL PRICE CAP: Deputy Treasury Secretary Wally Adeyemo said today that he had good conversations with Indian leaders and private sector officials on the Russian oil price cap plan, as he wrapped a three-day trip to the country aimed in part at ginning up support for the price cap effort, which was endorsed by G-7 nations in June.
"I had a very constructive conversation with my Indian counterparts about the price cap proposal, but also talked extensively with private sector participants in India as well," Adeyemo told reporters in New Delhi.
In setting the price cap, Adeyemo said, leaders are working to find a number low enough to curb Russia’s main source of war revenue while also still incentivizing them to continue production. He noted that inflation is a “top priority” for the U.S., which wants to ensure global oil markets remain adequately supplied.
"We are very concerned that come December 5... we will be in a place where access to Russian crude will diminish for the world and would potentially lead to higher prices," Adeyemo said.
India has benefited heavily from discounted Russian crude, increasing its imports to some 950,000 barrels per day in June—a 23% jump from the same point last year—and has long been considered a key holdout in adopting the plan.
ZAPORIZHZHIA RECONNECTED TO POWER GRID AFTER FIRST-EVER OUTAGE: The Zaporizhzhia nuclear power plant has been reconnected to Ukraine’s country’s power grid, regulators said today, one day after fires knocked it offline for the first time ever— triggering a temporary blackout in the region and heightening fears of a catastrophic meltdown scenario at Europe’s largest nuclear power plant.
To avert a radiation disaster, state-owned nuclear operator Energoatom said it turned to backup emergency diesel generators, which it said were activated “immediately.”
"The world must understand what a threat this is: If the diesel generators hadn't turned on, if the automation and our staff of the plant had not reacted after the blackout, then we would already be forced to overcome the consequences of the radiation accident," Ukrainian President Volodymyr Zelensky said last night during a public address.
The disruption occurred after a fire broke out at a nearby ash pit Thursday, interfering with the plant’s last operational power line, and causing the station's two working power units to be disconnected from the network.
News of the supply disruption underscores the perilous situation playing out at Zaporizhzhia, Europe’s largest nuclear power plant, which fell under Russian control at the start of the war.
Recent shelling in the area has heightened fears of catastrophe at the plant, and late last week, French President Emmanuel Macron said Russian President Vladimir Putin had agreed to allow a team of international inspectors to visit the facility.
International Atomic Energy Agency Director-General Rafael Grossi said yesterday that his team was “very, very close” to sending IAEA inspectors to the plant, and hopes the mission can be carried out within “days.”
Inspectors are also expected to be given wider power than initially sought in investigating the plant: Two diplomats with knowledge of the plans told Bloomberg that the international delegation of inspectors will include security and safety authorities along with officials responsible for accounting for nuclear materials at the facility. The security and safety officials could allow the IAEA to potentially perform a forensic investigation of the shelling which could be used to hold attackers responsible for the damage.
BIDEN ADMINISTRATION PROPOSES DESIGNATING TWO ‘FOREVER CHEMICALS’ AS HAZARDOUS: The Environmental Protection Agency announced today that it plans to designate two types of “forever chemicals” as hazardous substances, in an effort to expand cleanup efforts and ensure accountability for polluters.
The agency is proposing adding two new chemicals—known as “PFOA” and “PFOS” – to its list of hazardous substances under the Superfund regulations, a move it plans to make official in the next several weeks. The proposed rule would then be opened to a 60-day public comment period before taking effect.
“Communities have suffered far too long from exposure to these forever chemicals. The action announced today will improve transparency and advance EPA’s aggressive efforts to confront this pollution, as outlined in the Agency’s PFAS Strategic Roadmap,” EPA Administrator Michael Regan said in a statement announcing the proposed rules. “Under this proposed rule, EPA will both help protect communities from PFAS pollution and seek to hold polluters accountable for their actions.”
BLACKROCK SWIPES BACK AT TEXAS: BlackRock is fighting back against Texas after Comptroller Glenn Hegar included it in a list of companies that “boycott” fossil fuels and are subject to divestment.
Mark McCombe, the asset manager’s chief client officer, claimed that BlackRock is the single largest investor in the state’s oil and gas industry and that he had made multiple trips to Texas to lobby officials regarding the list.
“We have never turned our back on Texas oil and gas companies,” the Financial Times quoted McCombe as saying. “This is anti-competitive.”
“Trying to stop a US company from doing business in its own backyard is bad for business,” he also said.
Bloomberg Climate law raises DOE stakes to help lower hydrogen’s hurdles
E&E News Trouble on pipeline’s path hits home for Manchin
Financial Times Saudi Arabia sends message to Biden on oil
9:30 a.m. Silver Spring, Md. The Department of Commerce and the National Oceanic and Atmospheric Administration will hold a meeting of the Science Advisory Board; tasked with reviewing NOAA activities and priorities. Learn more about the advisory board meeting and register here.
1 p.m. The White House, the EPA’s Office of Water, and the American Association for the Advancement of Science (AAAS) hold a virtual discussion titled. "Regional Reflections on Green Infrastructure and Nature-Based Solutions: Southwest." Register for the virtual event here.