Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Are These Small Companies Putting An End To Global Warming?

Published 08/27/2017, 01:43 AM
NG
-

Allam Cycle Power Plants Vs Conventional

Environmentalists generally don’t get along with the natural gas industry.

Although it burns cleaner than coal, natural gas is still a fossil fuel - and the emissions from conventional gas power plants still contribute to global warming.

It’s simple science. Natural gas is made up of hydrocarbon molecules. When we burn gas to power steam turbines, those hydrocarbons react with the oxygen in the air. And that reaction produces greenhouse gases like carbon dioxide.

For decades, scientists have seen this as an unavoidable downside of gas power. But today, a consortium of small energy companies is building a new kind of gas power plant on the Texas coast. It uses a revolutionary technology called the Allam Cycle.

As you can see from this week’s chart, the Allam Cycle paves the way for something that sounds like an oxymoron - a zero-emissions gas power plant.

How the Allam Cycle Works

As we mentioned above, a conventional power plant burns natural gas to heat water and turns it into steam. That steam is then used to spin turbines and power a generator. The combustion produces carbon dioxide and other greenhouse gases as byproducts - and these are released into the atmosphere through smokestacks.

By contrast, the Allam Cycle doesn’t use steam to drive turbines. It uses carbon dioxide itself. This relatively inert gas can be recycled through the power plant again and again - no smokestack necessary.

In other words, the Allam Cycle is a zero-emissions technology that is much simpler (and cheaper) to use than fossil fuel alternatives like wind and solar power. And you don’t have to be a passionate environmentalist to see the investment appeal of this technology.

More Power From Less Gas

As this week’s chart shows, an Allam Cycle power plant isn’t just cleaner than a conventional combined-cycle plant. It’s also roughly 47% more efficient.

This is, once again, simple science. In a conventional power plant, hot steam and pollutant gases billow out of smokestacks all day. These emissions aren’t just dirty - they’re also a waste of heat energy. There’s no way to generate electricity from a cloud of smog in the sky.

But in an Allam Cycle power plant, these gases are looped back into the furnace. That means much less heat is wasted. And it means more electricity can be generated by the same quantity of fuel.

We understand that our readers have varying views on the severity of global warming. But no matter your opinion, the appeal of this technology should be clear. It’s paving the way for a more efficient energy system - and freeing up more American gas for export.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.