Electric vehicle charging station with a green leaf symbol.

Low-Carbon Fuels

Advance the use of low-carbon fuels in the hardest-to-electrify end uses and to maintain a reliable electric grid.    

Today, fuels play a critical role in providing energy for transportation, heating homes and businesses, producing electricity, and powering our industries. These include gasoline, diesel, natural gas, biomass, propane, and other fuels. Most are fossil-based and emit greenhouse gases when combusted. In the Reference Scenario, which represents the least-cost scenario modeled, most fossil fuel consumption is replaced by clean electricity or low-carbon fuel consumption over time.

Zero- or low- carbon fuels are lower carbon intensity versions of fuels we currently use such as renewable diesel, natural gas, and propane, or fuels like hydrogen and ammonia that have the potential to expand their commercial use in Oregon.

These fuels are in limited supply today but will have an increasingly strategic role in powering applications where electrification is not currently feasible or cost effective. In the modeling, vehicle and building electrification was identified as a more cost-effective strategy than producing large volumes of low-carbon fuels to replace fossil fuels, while many industrial and agricultural sector applications were powered by low-carbon fuels because they can’t cost effectively or feasibly electrify.

Oregon will need to balance the increasing demand for these fuels and potential economic development opportunities with the potential impact to land use, natural resources, health, and life cycle emissions of production and delivery. Based on available data and technology projections, these fuels are expected to remain limited in supply and costly to produce. It will also be important to recognize the burden that may be placed on low-income, rural, and coastal households and businesses who may not have the same access to electrification and could be stranded/left behind to carry more of the cost of maintaining fuel infrastructure with fewer users.

While fuel volume is predicted to decline gradually over time, fuels remain foundational to providing essential energy services for the foreseeable future. For these reasons, it will be important to advance the use of low-carbon fuels over time in strategic sectors, including aviation, rail, and marine transport, long-haul trucking, agricultural and off-road equipment, and high-heat industrial processes, such as steel, cement, and chemical refining, as well as for power sector reliability.

Low-carbon fuels present a potential economic and resilience opportunity for Oregon to use waste feedstocks, such as woody biomass or biogas from municipal waste or wastewater facilities. These local energy sources can be distributed, used onsite, or stored to fuel local renewable energy generation or improve community resilience. These opportunities may create new revenue streams that can support community or municipal facility improvements. Improving the efficiency of how businesses and communities are using resources through measures such as industrial symbiosis can further capture opportunities to reduce emissions and increase competitiveness.

In the least cost pathway modeled in the Reference Scenario, fuel use across the economy declined by 70 percent by 2050.

Low-Carbon Fuels Policies

Each policy has a short-hand reference shown in italics used throughout the strategy.

4a

Foster development and expansion of low-carbon fuels and fuel infrastructure to serve the hardest-to-electrify sectors in Oregon as a strategic resource, while mitigating environmental and community impacts. (Low-carbon fuels and fuel infrastructure)

4b

Support low-carbon fuel adoption in the hardest-to-electrify sectors including aviation, rail, marine transport, long-haul trucking, agricultural and off-road equipment, high-heat industrial processes and resources that support electric system reliability. (Low-carbon fuels adoption)

4c

Support a managed fuels transition that minimizes stranded assets as end-uses electrify, identifies opportunities to leverage existing infrastructure and expertise to support clean fuel alternatives, and encourages technological innovation to advance new opportunities. (Managed fuels transition)