Supply chain disruptions, a lack of storage, and a recovering global economy have caused natural gas prices to go through the roof — now at $6 per million BTUs in the United States and $25 in Europe (the equivalent of $130/bbl oil)! This has sent European power prices to more than 100 euros per megawatt hour, up from just 20 euros a couple months ago, threatening outright electricity shortages across the Continent. China too is scrounging for coal and paying even more than Europe for cargoes of LNG. On Wednesday, Energy Secretary Jennifer Granholm said that the feds reserved the right to halt exports of American oil, and indicated a willingness to tap strategic heating oil stockpiles. The warning signs are bleak — a frigid winter could kill hundreds. Beyond convincing President Vladimir Putin to send more gas and stockpiling firewood, there are few short term solutions.
It’s tough to plan for a crisis while still recovering from the last one. In Texas, which suffered a deadly deep freeze last winter, the waiting line for Generac backup generators is months long. There are other solutions. Solar panels, batteries, and efficient appliances help.
But Tony Pan, CEO of Modern Electron, was interested in a more holistic approach. The Seattle-based company sells hardware that enables home heating furnaces and hot water tanks to also provide electricity — which it makes by capturing wasted heat.
While this feature adds to the cost of the furnace and heater, it produces power for less money than centrally generated electricity. It is also less carbon-intensive. The payback occurs within 5 years. “Electricity is more valuable than heat,” says Pan. “The irony is that there is plenty of energy in the furnace. But it is wasted.”
If the heat is not immediately captured and re-used, it will degrade and become worthless. If it travels long distances, it loses its efficiency and thus, the technology must be used for onsite generation. In some cases, the so-called “thermionic converter” — integral to the process — can be added to existing equipment. Modern Electron’s partners are the heating, air conditioning, and ventilation manufacturers, which are installing those converters inside of new appliances.
Grid-based electricity has an efficiency rate of about 51%, whereas combined heat and power units — similar to Modern Electron’s technology — can achieve 75%, says ICF International. Industrials have long-been using “combined heat and power:” 82,000 megawatts of that power now exists across the country at almost 4,000 of those facilities, says ICF. That’s 8% of the U.S. electric generation base and it prevents 1.8 quadrillion BTUs of fuel consumption each year — a notable statistic during a natural gas shortage. And now, residential users have access to some of those same tools.
About half of all U.S. homes use natural gas for heating. And that number is at least that in Europe. So if natural gas prices spike this winter, households around the globe will feel it. Consider the 2021 Texas winter freeze: millions lost heat and power. But if their heat had been recaptured and used to make electricity, it could have saved lives and eased the pain. Sadly, Texas does a comparatively poor job of enacting energy-efficient solutions.
“One-hundred people froze to death,” says Tony Pan. “Pipes froze and burst. The irony is that there is plenty of energy in the furnace. But it is wasted. This will harm the poorest amongst us. When you have an energy crisis, it shows the importance of energy efficiency. If the heat was captured and re-used, it could supply the needed electricity. If you are short on natural gas, you are far better off using that gas in homes and buildings for combined heat and power.”
All this dovetails with a new study released by E4TheFuture, which works for clean, efficient, and safe energy solutions and E2, comprised of business leaders, investors, and professionals who advocate for environmentally healthy business solutions. Their latest research shows that low-income families and households of color spend 8% of their take-home pay on energy. That compares to a 2% national average. Adding insulation, for example, can reduce those energy burdens by 25%.
To shed light on the scale of energy efficiency’s contribution to meeting 2030 climate goals, the study released yesterday looks at retrofitting homes with everything from insulation to modern home heating and hot water tanks: it concludes that such an undertaking could create 1 million new jobs while it would also save households $66 billion in energy and prevent the release of 242 million tons of CO2 each year.
“Energy efficiency saves money, reduces emissions, improves air quality and public health; it also makes us more energy independent — while tackling climate change and creating jobs. It is an energy source we must invest in,” says the Energy Efficiency Jobs in America paper, produced by E4TheFuture and E2.
As the global economy recovers from the coronavirus blues, it will need more energy to fuel the expansion. The world is now short of natural gas, making it more expensive than it has been in years. Enter energy-efficient technologies, which can reduce both energy costs and emissions. What’s new is the ability for homeowners to access some of the same tools that industrials have long used — an innovation that is underscored by the current energy conundrum.