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DTE Energy Upgrades Gas Distribution, to Cut Emission by 80%

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DTE Energy Company DTE announced that it will lower methane emissions from its natural gas utility operations by more than 80% within 2040. Since 2011, the company has been able to lower methane emission by 16%, courtesy of improvement in its natural gas distribution system.

The company is set to achieve its emission reduction target by replacing steel and cast iron pipelines, along with installing new materials such as polyethylene tubing for main and service lines, as well as epoxy coated high-strength steel for transmission lines.

Long-Term Plans

After investing $12 billion within the 2013-2017 time period, the company aims to invest $17 billion in the 2018-2022 time frame to further strengthen its utility infrastructure and midstream operations. The company will spend $2.1 billion in the said period to strengthen its Gas operations.

DTE Energy will also retire all its coal-fired plants, having a total generation capacity in excess of 6,400 megawatt (MW), by 2020 and replace them by adding in excess of 7,500 MW of power from renewable sources within 2050.

The company aims to achieve a balanced mix of renewable energy sources, and gradually lower its methane emission and promote increasing usage of natural gas.

Rising Renewable Investment

Per the U.S. Energy Information Administration (“EIA”), as of February 2018, renewables accounted for 22% of the total U.S. electricity generation capacity. The percentage of renewables in the total generation mix is expected to rise, thereby curbing the share of fossil fuel generation.

Despite efforts of the new administration to revive the usage of coal in different industries, we notice that large utilities like NextEra Energy NEE and Dominion Energy D are increasingly investing in renewables, and lowering emission.

Another utility Xcel Energy XEL is also investing regularly to lower its carbon footprint and aims to achieve 60% carbon reduction by 2030. Electricity production from renewables is expected to reach 45% in 2027 from 3% in 2004, while power production from coal is likely to drop to 22% in 2027 from 56% in 2005.

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