Dominion Energy (D - Free Report) announced that it has entered into a partnership with Vanguard Renewables to capture methane from U.S. dairy farms and convert it into clean, renewable energy for U.S. consumers. This $200-million nationwide partnership will lower emission of methane in the atmosphere. Methane is considered to be 25 times more potent than carbon-di-oxide.
This strategic partnership will reduce annual carbon-di-oxide equivalent emissions by more than 450,000 metric tons, which will be equivalent to taking nearly 100,000 cars off the road or planting 7.5 million new trees each year.
Dominion’s Goal of Cutting Emissions
Dominion is among the U.S. utilities that have decided to cut emissions in a phased manner in the process of electricity production. The company aims at cutting carbon emissions in its power generation by 55% in 2030 and further by 80% in 2050 from 2005 levels.
To achieve this target, the company is working on offshore wind projects, battery storage projects and hydropower projects to lower emissions. Earlier, Dominion had entered into an agreement with Smithfield Foods to form an agricultural-based renewable natural gas partnership in the United States. The partnership has committed $500 million over 10 years to convert methane from U.S. hog farms into clean energy for local consumers.
Agreement with Vanguard will allow Dominion to cut emission of methane across the United States and promote increasing usage of renewable energy to produce electricity.
Increasing Usage of Renewable Sources
The U.S. Energy Information Administration (“EIA”) forecasts that the contribution from renewable energy sources to total U.S. electricity production is rising gradually, which is assisting it to attain lower emissions across the United States. The EIA forecasts renewables to contribute 16% to total electricity production in 2019 and the contribution to increase to 17% in 2020.
EIA expects U.S. carbon di-oxide emissions in 2019 to decline, primarily due higher usage of natural gas and renewables in electricity production, and coal’s share in production mix to decrease.
Utilities like NextEra Energy (NEE - Free Report) , Xcel Energy (XEL - Free Report) and Duke Energy (DUK - Free Report) , among others, have long-term plans to promote clean energy sources for producing electricity, which will contribute toward lowering emissions.
In the past six months, shares of Dominion have gained 6.4% compared with its industry's 4.3% growth.
Dominion currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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