South Jersey Industries Commits to Eliminating Greenhouse Gas Emissions by 2040

Strategic Insights -

As one of New Jersey's largest natural gas utilities, South Jersey Industries Inc. (SJI) has made a commitment to eliminating greenhouse gas emissions from its operations by 2040. This move aligns with growing pressure from regulators, investors, and the public to reduce carbon emissions. SJI's plan includes increasing spending to eliminate carbon emissions from its operations, promoting energy efficiency among customers, and dedicating a quarter of its future capital budget to sustainability projects. The company serves over 700,000 families and businesses across the state, and its commitment to clean energy is seen as a response to the need to reduce the nation's reliance on fossil fuels.

Key Takeaways:

  • South Jersey Industries (SJI) commits to eliminating greenhouse gas emissions from its operations by 2040, joining other fossil fuel companies in adopting green initiatives.
  • The company's comprehensive clean energy plan includes increased spending to eliminate carbon emissions, energy efficiency programs for customers, and 25% of its future capital budget dedicated to sustainability projects.
  • SJI will install solar panels on all facilities, replace aging transmission pipes, and upgrade leak detection technologies to reduce emissions.
  • The company has invested in renewable natural gas (RNG) technology and "green" hydrogen production, which aims to reduce the carbon footprint of the gas it delivers.
  • Climate activists have criticized SJI's plan as "greenwashing," calling for the utility to transition out of the gas business altogether.
  • The commitment follows a trend of fossil fuel companies engaging in green initiatives in response to growing pressure to reduce carbon emissions.
  • Other companies, such as BP PLC, EQT Corp., and Chesapeake Energy Corp., have also taken steps to mitigate the climate impact of their operations.

Statistics:

  • SJI serves over 700,000 families and businesses across New Jersey.
  • The company plans to spend 25% of its future capital budget on sustainability projects.
  • SJI has invested $216 million to expand energy efficiency programs for its South Jersey Gas and Elizabethtown Gas customers.
  • BP PLC plans to spend $1.3 billion to capture natural gas produced as an unwanted byproduct from its oil wells in west Texas and New Mexico.
  • EQT Corp. and Chesapeake Energy Corp. have signed up with third-party verification companies to certify that they produce "responsibly sourced gas" from wells equipped with leak-reduction technology.
  • Project Canary, a Denver company, provides monitoring services for methane leaks and is willing to certify gas as "responsibly sourced" for utilities and exporters.

Sources:

  • Andrew Maykuth, The Philadelphia Inquirer, "South Jersey Industries to eliminate greenhouse gas emissions by 2040," April 20, 2021
  • Jeff Tittel, New Jersey Sierra Club, "If South Jersey Industries is really serious about being carbon neutral, they would be getting out of the gas business."
  • Doug O'Malley, Environment New Jersey, "Policymakers need to reduce the nation's reliance on fossil fuels."
  • Project Canary, "Responsibly Sourced Gas: A New Standard for the Natural Gas Industry"
  • South Jersey Industries Inc., "Comprehensive Clean Energy Plan"