In our latest podcast, Aaron and Alex delve into the pressing issue of Europe’s looming energy crisis, specifically concerning natural gas and why the E.U. might be in for a harsh winter.
The U.S. has emerged as the clear winner in the race to export natural gas globally as it’s spent the last ten years building LNG terminals and related infrastructure. Aaron portends that the U.S. is the world’s energy superpower but cannot solely supply Europe, given its robust domestic demand.
There are many infrastructure-related issues threatening the EU’s sovereignty, but ultimately its Achilles heel may be its absence of natural gas storage capacity. Germany, along with other European nations, continues to decommission base load energy sources from coal to nuclear; however, if it proves to be a cold winter in Europe, Germany may need to stall or even reverse some of those regulations…
Natural Gas is Essential for Many Reasons
Most people know natural gas is used to heat homes and create electricity. But it is also used in the manufacturing of materials and goods, ranging from glass to clothing, and in products like paint and plastics. It’s also critical to the agriculture industry…
According to Fertilizers Europe,
“For nitrogen-based fertilizers, the largest product group, the process starts by mixing nitrogen from the air with hydrogen from natural gas at high temperature and pressure to create ammonia. Approximately 60% of the natural gas is used as raw material, with the remainder employed to power the synthesis process.”
Natural gas consumption can vary, but as a rough estimate, it might take around 20-30 gigajoules (G.J.) of natural gas to produce one metric ton (1,000 kilograms) of ammonia.
As Europe grapples with the many challenges of Russia’s invasion of Ukraine and its transition to cleaner, more sustainable energy sources, we explore the intricate web of factors that make the European Union vulnerable. If a cold winter falls on Europe, it may face an energy crisis yet again.
We hope you enjoy the pod!
