NiSource continues to be a leader in sustainability among the energy industry by announcing a goal to reach net zero greenhouse gas (GHG) emissions from its operations by 2040.
The goal reflects what the company believes is achievable by 2040 and requires supportive regulatory and legislative policies, favorable stakeholder environments and the continued advancement of existing technologies.
"People must be at the center of any effort aimed at shifting to a cleaner, more sustainable energy supply," said NiSource CEO, Lloyd Yates. "Our 2040 Net Zero Goal reaffirms that commitment and focus. And, while reliability, cost and resiliency remain among the most important factors in mapping our nation's energy transition, we believe everyone can benefit from a clean and equitable energy future."
The 2040 Net Zero Goal is an extension of the company's previously announced goal to reduce GHG emissions from its direct operations by 90 percent from 2005 levels by 2030 - with the expanded goal covering emissions reductions from the company's direct and indirect operations (also referred to as Scope 1 and Scope 2 emissions).
Steps to reaching the 2040 Net Zero Goal
NiSource plans to achieve its Net Zero Goal primarily through the continuation and enhancement of existing programs, such as retiring and replacing its remaining coal-fired electric generation by 2026-2028 with a balanced mix of low- or zero-emission electric generation*, ongoing pipe replacement and modernization programs, and deployment of advanced leak-detection technologies.
In addition, NiSource plans to advance other low- or zero-emission energy resources and technologies, such as hydrogen and renewable natural gas, and support the deployment of carbon capture and utilization technologies, if and when these become technologically and economically feasible.
Carbon offsets from projects such as reforestation, building renewable energy, carbon-storing agricultural practices, and waste and landfill management may be necessary to help achieve our Net Zero Goal.
Progress is well underway
NiSource remains on track to achieve previously announced interim GHG emission reduction targets to reduce fugitive methane emissions from main and service lines by 50 percent from 2005 levels by 2025, and reducing Scope 1 GHG emissions from company-wide operations by 90 percent from 2005 levels by 2030.
As of the end of 2021, NiSource had reduced Scope 1 GHG emissions by approximately 58 percent from 2005 levels.
The 2040 Net Zero Goal is the cumulative goal for the six operating companies under NiSource - the Columbia Gas companies and Northern Indiana Public Service Company (NIPSCO) - and specific reductions and timing may vary by state.
Leveraging the natural gas infrastructure
From a cost, reliability and resiliency standpoint, natural gas and our natural gas infrastructure will continue to play an important role in the overall mix of energy resources, as the industry continues to reduce emissions and make advancements with lower carbon fuels that can be delivered through the system. As the transition to more renewable forms of electric generation continues, natural gas increases in importance within the overall mix of energy resources, as it serves as a critical backup resource - especially during extreme weather conditions.
With an abundant and domestically based supply, natural gas is a vital and critical resource to many - ranging from the manufacturing industry to home heating. Eliminating access to this resource would result in significant costs to homes and businesses needing to convert their appliances and equipment. With more than 2.6 million miles of natural gas pipelines across the nation, the industry's vast infrastructure is capable of delivering other low- or zero-emission energy resources and technologies, such as hydrogen and renewable natural gas, which can accelerate decarbonization in an economical manner.
Utilizing the existing and expansive natural gas infrastructure to deliver other forms of energy resources beyond natural gas, in many cases, does not require significant investments or changes to appliances and other equipment within customers' homes and businesses.
Many of these technologies are already being utilized today across the industry, and the Infrastructure Investment and Jobs Act and the Inflation Reduction Act contain considerable federal funding opportunities to spur growth in these areas. Support for expanded energy efficiency programs also plays an important role in driving emissions reductions.
Meanwhile, a highly skilled and trained workforce will remain integral in the future energy transition, as achieving our Net Zero Goal requires continued investments in our natural gas system and infrastructure. As the fuel source itself could evolve in the future, traditional utility investments correlate to sustained jobs. Some of the skillsets and specific duties of today's workforce are expected to evolve, just as they have over the last several decades across the industry, as advancements in technologies and processes enable new ways of working.
"It's encouraging to see the continued progress and transformation occurring across the energy industry and NiSource remains well positioned to meet the diverse needs of its customers and communities now and into the future," added Yates.
*NiSource subsidiary NIPSCO, has sold in the past, and in the future may sell, the Renewable Energy Credits from its electric generating facilities to a third party because this helps lower energy costs for our customers.
