Xcel Energy sets goal of net-zero carbon emissions from natural gas business by 2050

Published on November 02, 2021 by Dave Kovaleski


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Xcel Energy has set a goal of achieving net-zero greenhouse gas emissions from its natural gas business by 2050.

This announcement came on top of its already stated goal to achieve net-zero carbon emissions in its electricity business by 2050. All in all, the company is committed to being an overall net-zero company by 2050. This commitment makes Xcel the only major U.S. energy provider to set a vision and goals for reducing greenhouse gas emissions across three large sectors of the economy — electricity, natural gas use in buildings, and transportation.

“Our vision for delivering net-zero energy by 2050 is an important evolution in our clean energy leadership,” Bob Frenzel, president and CEO of Xcel Energy, said. “We’ve expanded our commitment to deliver clean energy across all the ways we power customers’ lives while keeping our service reliable and affordable. These efforts will promote innovation, provide customers with even more new energy options and significantly reduce emissions.”

In 2018, Minneapolis-based Xcel, which provides energy across eight Western and Midwestern states, established a net-zero carbon emissions plan for its electricity business, with an interim goal of reducing emissions 80 percent by 2030. Further, in 2020, the company pledged to power 1.5 million electric vehicles in its service area by 2030. Now, in 2021, Xcel Energy is committing to deliver net-zero gas service by 2050, with a goal to cut emissions by 25 percent by 2030.

To accomplish this, Xcel Energy will accelerate its plans for reducing methane emissions, including purchasing natural gas only from suppliers with certified low emissions. It will also continue to improve its natural gas delivery system to achieve net-zero methane emissions by 2030. In addition, Xcel will offer customers new and expanded programs to reduce carbon emissions from their own natural gas use. Also, Xcel Energy is launching a series of pilot programs to test renewable natural gas, smart electric water heaters, and air source heat pumps with customers, as well as testing both hydrogen production and the blending of hydrogen in its natural gas delivery system.

“Earlier this year, Colorado released our roadmap for 100 percent clean electricity generation by 2040, cleaner air, and bold climate action,” Colorado Gov. Jared Polis said. “This exciting new commitment by Xcel Energy represents a major step forward that will support Colorado in achieving our state’s climate goals and illustrates how Colorado is encouraging the innovation and collaboration needed to foster a clean economy.”

By 2030, Xcel Energy expects to reduce nearly 80 million tons of carbon. The company is currently more than halfway to that goal, having reduced carbon emissions by more than 40 million tons since 2005.

“Xcel Energy’s commitment sets a new bar for U.S. electric and gas utilities,” Armond Cohen, executive director at Clean Air Task Force, said. “A path to achieving net-zero greenhouse gas emissions, including end-use emissions, by 2050 is necessary for avoiding the most damaging and costly climate outcomes, and reaching net-zero methane emissions on gas systems in this decade is a particularly key enabler. All utilities should aggressively reduce their own methane leaks, use their purchasing power to minimize upstream emissions and leaks, and work to electrify as many gas uses as feasible. Xcel Energy’s goals are ambitious, realistic, and necessary.”