Our 30BY30 target is an ambitious greenhouse gas (GHG) emissions reduction target in the Canadian utility industry that aims to reduce our customers’ GHG emissions by 30 per cent by 2030 relative to 2007 levels. Customer emissions are part of our overall Scope 3 emissions.1 And this path extends well beyond 2030. Our Clean Growth Pathway charts a path for FortisBC to contribute to achieving the provincial goal of an 80 per cent GHG emissions reduction by 2050.
Charting the future
To help us understand what a path to 2050 could look like, we hired Guidehouse, a leading energy and environmental consultancy, to test our approach and see what it would take to reach an 80 per cent GHG emissions reduction in BC. They developed a comprehensive analysis that compared two different approaches to emissions reduction–one leaning primarily on electrification and the other, more diversified path that uses natural gas and electricity systems in tandem.
Their analysis showed that a diversified pathway can yield the same deep emissions reduction as widespread electrification while being more affordable, flexible and resilient.
What are the advantages of a diversified pathway?
The summary of Guidehouse’s report, Pathways for British Columbia to achieve its GHG reduction goals, provides a full analysis of each model and how they compare. Some of the key insights of the report include:
Electrification, especially in the transportation sector, is important to ensure a lower-carbon future for BC
Increasing the use of hydroelectricity is important in both pathways. The province has a tremendous hydroelectric capacity that presents a great opportunity for abundant, zero-carbon power. But much more electricity will be needed to meet the province’s growing energy demands. That’s why it’s important to focus electrification on industry sectors where it can serve the greatest benefit and make the biggest GHG emissions reduction impact.
We see electrification as critically important in the transportation sector given it accounts for approximately 41 per cent of provincial GHG emissions. Replacing gas stations with charging stations will help reduce GHG emissions from BC’s roads and highways.
The natural gas system will become a primary distributor of renewable energy
Our business is moving energy to British Columbians and we’re working to make more of that energy renewable and carbon neutral. To reach 2050 targets, almost three quarters of the natural gas moving through our system will need to be renewable, such as Renewable Natural Gas and hydrogen. Similar to how power lines carry electricity generated from renewable sources like hydroelectricity, the gas system can carry clean gas molecules also generated from renewable sources.
Protecting against extreme weather
A key aspect of determining the right energy system of tomorrow is ensuring it can meet the energy needs of the province when they’re at their highest. The natural gas system is specifically designed to deliver energy to heat our homes and businesses affordably and reliably, especially during cold weather. During a cold snap, the gas system in BC can deliver upwards of 60 per cent more energy than our electricity system.2 If we were to use only the electricity system for our heating and transportation needs, we would need new firm electricity generating capacity the equivalent of approximately eight new, large scale hydroelectric dams in BC to meet peak energy demand during cold weather periods as well as other demands.
Pursuing a diversified pathway with the natural gas system playing a role would allow this system to shoulder the load when energy demands spike. One of the advantages of the gas system is its ability to store energy affordably–within the lines, at natural gas storage facilities and at our liquefied natural gas facilities–that can be dispatched at a moment’s notice to meet surging energy demand.
As per the Guidehouse report, using natural gas infrastructure to meet peak energy demand provides a pathway that is lower cost and more resilient. As more renewable gas continues to flow through the system, it will also help us make similar progress on advancing our provincial climate objectives.
Rethinking tomorrow’s energy landscape
We believe the analysis from Guidehouse reaffirmed that the direction we committed to in our Clean Growth Pathway, and are acting upon through our 30BY30 target, is fundamentally solid and will help lead the way to a lower carbon BC. By adopting a flexible approach that enables us to use the right energy for the right use, we can reach 2050 GHG emissions reduction targets while providing reliable and affordable energy to British Columbians. This approach would enable a more resilient provincial energy system and could save upwards of $100 billion in societal cost3 as compared to an approach focused on electrification4.
We remain committed to the GHG emissions reduction targets we share with the provincial government and will continue to partner with government, Indigenous communities, municipalities, industry and our customers to drive toward a cleaner BC for everyone.
1 Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company.
2 Pathways for British Columbia to achieve its GHG reduction goals; Guidehouse, 2020–page 12.
3 The societal value of achieving the diversified pathway is expected to be in excess of $100 billion higher than the electrification pathway.
4 Pathways for British Columbia to achieve its GHG reduction goals; Guidehouse, 2020–page 24-25