Fuel switching is a climate change mitigation strategy that involves changing the fuels used for energy generation from high GHG-emitting fuels (e.g., fossil fuels) to lower emitting fuels (e.g., renewables, hydro, nuclear). This strategy is a popular approach to decarbonization and can be deployed in buildings, transportation, or regional district energy networks. In practical terms, fuel switching typically involves replacing fossil fuel consuming equipment and systems with equipment and systems that require electricity. This can include a wide range of measures, from replacing a natural gas fueled boiler with an electric boiler to transitioning an internal combustion engine (ICE) vehicle fleet to electric vehicles (EVs). However, it is important to note that fuel switching, or “electrification” as it is often referred to, is only an effective climate change mitigation strategy if the source of the electricity is lower in GHG emissions. Though the concept itself is quite simple, in practice, fuel switching can be quite complex due to the intricate nature of the energy supply mix and grid infrastructure, or the extensive facility retrofits required.
Fuel switching strategies can occur at different scales of implementation. At the energy grid level, governments and utility companies can work to change the supply mix of the energy system through replacing fossil fuel-based power generation facilities (e.g., coal, natural gas) with nuclear or hydro power generation and/or renewables. In 2014, the Ontario government eliminated coal-based power generation from the province’s electricity grid, resulting in a massive reduction in GHG emissions from electricity[1] . The province’s grid capacity was maintained through extended nuclear contracts, renewables, and natural gas-based facilities. Such massive fuel switching efforts are expensive and require extensive planning and time to ensure that the grid has the capacity to accommodate the change in supply mix.
At a facility level, Ontario’s relatively clean electricity grid means that replacing fossil fuel-consuming equipment (typically space heating equipment such as boilers, furnaces, ovens etc.) with electricity consuming equipment can result in significant GHG emissions reductions. Depending on the type of equipment being replaced, additional considerations must be kept in mind, such as grid capacity to support the added electricity demand. To better understand the feasibility of fuel switching at your facility, it is recommended that you contact your local electricity utility company for more information.
Bottom Line
Fuel switching can reduce business GHG emissions and typically involves replacing fossil fuel-consuming equipment and systems with equipment and systems that require electricity. However, this is only an effective climate change mitigation strategy if the source of the electricity is actually lower in GHG emissions. Since Ontario’s electricity gird is relatively clean, fuel-switching for businesses based in Ontario can result in significant climate mitigation efforts.
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[1] Harris, M., Beck, M., and Gerasimchuk, I. 2015. The End of Coal: Ontario’s coal phase-out. IISD Report. Click here for URL.