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That's the business model of Terraform Industries[1]. They're betting on solar getting cheap enough to make synthesis of hydrocarbons economically competitive.
by ggreer 1y ago
That's the business model of Terraform Industries[1]. They're betting on solar getting cheap enough to make synthesis of hydrocarbons economically competitive. It looks like they're selling synthesized natural gas for $35/MCF, which is 2.5x the national average. As panels get cheaper and they optimize their processes, it seems likely that they'll be able to make natural gas for cheaper than uhh... natural natural gas.
1. https://terraformindustries.com/ https://terraformindustries.com/
- tln 1y agoI'm rooting for them but $35/MCF is more like 10x current market price. "Henry Hub Natural Gas Spot Price is at a current level of 3.21, down from 3.22 the previous market day and up from 2.17 one year ago." That's in $/MMBTU, divide by 1.038 to get $/MCF.
- ggreer 1y agoThat's the price at a hub before distribution & transport. For comparison, the cost in Hawaii is $23/MCF. Terraform's plan is to make synthesis plants closer to where the natural gas would be used, reducing distribution & transport costs.