natural gas shortages, which result in unemployment in the short term, and higher prices and reduced economic growth in the longer term. Natural gas also provides over 40 percent of total energy requirements in the residential/commercial sector, with 57.5 percent of this amount devoted to residential consumption and 42.5 percent to commercial needs. In the residential sector, most (75 percent) of the natural gas consumed is used for space heating. Indeed, 57 percent of all American residences depend on gas for space heating. Of the gas used in the commercial sector, almost all is used for direct heating, primarily for space heating but also for heating water and cooking. Finally, 15 percent of all natural gas consumed is used in the nation's electricity-generation facilities. Most is used to generate baseload supply electricity in the South and Southwest, but some is used in diesels and turbines to meet electric cycling loads. Need for Gas Conservation Research - - The technologies created over the years for using inexpensive, readily available gas in industry, residences, commercial establishments, and utilities have been developed in terms of prevailing criteria such as low initial capital costs, reliability, and longevity. But the efficient use of gas i.e., the conservation of gas did not become a primary driving force in technology development until the early 1970's. The energy crisis resulting from declining gas production, the Arab oil embargo in the winter of 1973-74, and the severe weather conditions in the winter of 1976-77 made the public at large acutely aware of the need to conserve our energy resources. People many, for the first time -- recognized that the vast supply of cheap natural gas from relatively shallow wells was rapidly dwindling, causing the nation to rely on more expensive, more difficult to produce, gas resources. Despite the presence of significant amounts of natural gas at higher prices, the nation's energy future will remain secure only with increased production of the economically available gas and improved efficiency in its end use. In other words, we must capitalize on the opportunity to conserve significant amounts of natural gas while providing needed end-use energy. Such an effort can have very significant results. As shown in Exhibit 2, in 1985 gas savings could range from 0.32 Quads per year to as much as 2.68 Quads per year with an accelerated RD&D effort designed to improve the energy efficiencies of gas-using equipment and to develop advanced technologies. Even more dramatic results would occur in 1990 2.03 Quads of gas saved with current levels of effort and funding versus 4.33 Quads per year with an unconstrained, fully accelerated RD&D program undertaken jointly by the Gas Research Institute, the Department of Energy, and private industry. The opportunities are many and diverse. Five major areas in which success- GRI is accelerating its conservation research from a 1979 funding level of $9.7 million to a 1980 funding level of $16 million. A corresponding acceleration is required in the DOE program with specific increases as follows: The natural gas saved could be used in other applications throughout the nation to maintain our standard of living and enhance our economic well-being, both of which depend on the availability of adequate supplies of energy in needed end-use forms. Specifically, it could be used to expand gas usage in the residential/commercial sector. It could continue to be used also by much of industry, expecially in those processes and for those products that require an energy source with the combustion properties unique to natural gas. All of these new and expanded uses of natural gas would be in the best national interest because natural gas provides energy service at the lowest cost and with the lowest negative environmental impact of all major fuels. The increased use of natural gas would also reduce our use of petroleum and then our dependency on expensive, interruptible oil imports. Moreover, obtaining this needed end-use energy through more efficient energy use has the minimal impact on the resource base. The GRI Program The Gas Research Institute (GRI) has developed a Conservation Program to accelerate the implementation of higher efficiency gas-using appliances, equipment, and processes to increase the availability of affordable, environmentally acceptable gaseous fuel. The research and development (R&D) program is organized into five major subprograms, each having a separate set of objectives: Residential and Commercial Space Conditioning: Accelerate the development and commercialization of more efficient space conditioning equipment. Gas Appliances: Improve the efficiency of domestic and commercial gas appliances, without compromising safety and reliability. Fuel Cell Energy Systems: Evolve fuel cell technology into operating, gas-using equipment that will be highly efficient and highly acceptable environmentally. Industrial Utilization: Accelerate the implementation of more efficient gas consuming industrial processes and hardware in order to increase the availability of affordable and environmentally acceptable gaseous fuel for industrial processes. Solar/Gas Energy Systems: Increase the natural gas availability by using solar energy as a supplemental energy input in a variety of thermal applications, ranging from residential/commercial space conditioning and water heating to industrial processes. To achieve these objectives, the Conservation Program is carrying out the following major tasks: · Identify the R&D needs of the gas industry Conduct analytical and experimental programs to select the Conduct laboratory development and full scale demonstrations Enhance rapid commercialization of technology through working To ensure that the technologies offering the greatest potential energy savings are commercially available at the earliest possible date, GRI has developed a commercialization schedule (see Exhibit 3). Between 1979 and 1981, a range of near term technological options to increase the energy efficiency of gas furnaces and appliances will be developed to be used in the residential and commercial sector. The most promising options for improving industrial process efficiency will be identified and developed. Between 1982 and 1984, gas fueled heat pumps will be commercially introduced for space conditioning in residential and commercial buildings. More efficient gas appliances, including ranges, ovens and clothes dryers, will be ready for commercialization. Higher efficiency waste heat recovery equipment that will meet environmental standards will also be available to industrial end users. In addition, the first generation of phosphoric acid fuel cells will eventually be integrated as part of space conditioning systems, providing both electric and thermal needs of residential and commercial buildings. Beyond 1985, new, technically efficient, cost effective, and environmentally acceptable technologies such as molten carbonate fuel cells or solar/gas energy systems will be commercialized for a variety of gas fuel residential, commercial and industrial applications. To meet the commercialization schedule, GRI will undertake specific activities for each subprogram (see Exhibit 4). In the Residential and Commercial Space Conditioning subprogram, emphasis is being placed on developing prototypes, primarily of heat pumps, for field tests. The Gas Appliance and Solar/Gas Energy Systems subprograms will focus on concept design and feasibility studies. In the Fuel Cell Energy Systems subprogram, first generation phosphoric acid prototypes will be constructed for a major field test, while initial designs for a second generation system will be developed. In the Industrial Utilization subprogram, the major effects will be to design new equipment and test its efficiency. |