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.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. These forward-looking statements include, but are not limited to, statements concerning our plans, strategies, objectives, expected performance, expenditures, recovery of expenditures through rates, stated on either a consolidated or segment basis, and any and all underlying assumptions and other statements that are other than statements of historical fact. Expressions of future goals and expectations and similar expressions, including "may," "will," "should," "could," "would," "aims," "seeks," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue," reflecting something other than historical fact are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially.
Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this presentation include, among other things, our ability to execute our business plan or growth strategy, including utility infrastructure investments; potential incidents and other operating risks associated with our business; our ability to adapt to, and manage costs related to, advances in technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and natural gas costs and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demands; the attraction and retention of a qualified, diverse workforce and ability to maintain good labor relations; our ability to manage new initiatives and organizational changes; the actions of activist stockholders; the performance of third-party suppliers and service providers; potential cybersecurity attacks; increased requirements and costs related to cybersecurity; any damage to our reputation; any remaining liabilities or impact related to the sale of the Massachusetts Business; the impacts of natural disasters, potential terrorist attacks or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our net-zero goal; our debt obligations; any changes to our credit rating or the credit rating of certain of our subsidiaries; any adverse effects related to our equity units; adverse economic and capital market conditions or increases in interest rates; inflation; recessions; economic regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; continuing and potential future impacts from the COVID-19 pandemic; economic conditions in certain industries; the reliability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; changes in the method for determining LIBOR and the potential replacement of the LIBOR benchmark interest rate; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; potential remaining liabilities related to the Greater Lawrence Incident; compliance with the agreements entered into with the U.S. Attorney's Office to settle the U.S. Attorney's Office's investigation relating to the Greater Lawrence Incident; compliance with applicable laws, regulations and tariffs; compliance with environmental laws and the costs of associated liabilities; changes in taxation; other matters in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022, many of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time.
All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to the future results over time or otherwise, except as required by law.