The Wall Street Journal reports that vast supplies of low cost domestic natural gas are convincing power companies to switch from coal-fired plants to natural gas-powered facilities:
Power companies are increasingly switching to natural gas to fuel their electricity plants, driven by low prices and forecasts of vast supplies for years to come.
While the trend started in the late 1990s, the momentum is accelerating and comes at the expense of coal. Some utilities are closing coal-fired plants; others are converting them to run on gas.
The Journal cited numerous examples of power companies that have made or are considering the switch, including Calpine Corp., Progress Energy, and Xcel Energy. In 2009, coal-burning facilities totaled 18 percent of new capacity in the U.S. By 2013, that percentage is forecast to drop to 10 percent.
The falling price of natural gas in the U.S., to about $4 per one million British thermal units, has helped gas capture an ever-increasing share of power generation. Hardly a week goes by without a company announcing changes that push coal to the sidelines, usually in favor of natural gas, renewables or nuclear plants.
The article, titled “Turning Away From Coal,” also notes that the switch is not just taking place in the U.S. It is a global phenomenon. In Europe in 2009, gas-burning plants totaled 24 percent of new capacity versus 8.7 percent for coal-burning plants.
Read the article HERE (subscription required).