Revisiting energy transition projects future with "coal-to-gas" energy projects: assessing through life-cycle project cost method.

Abstract

This research aims to evaluate the life-cycle project costs associated with "coal-to-gas" energy transition projects in the context of the present energy environment. Determining the possible role of such initiatives in attaining a sustainable and economical energy future is at the heart of the problem statement. Four major coal seam gas (CSG) projects have affected the local population in China. The study applied structural equation modeling (SEM) and quantile process estimation (QPE) techniques. In this piece, we analyze the methods used to calculate the societal costs of such populations. The people of impacted regions are concerned about increasing economic disparity, have poor trust in the future, and are experiencing a falling standard of living, according to a cross-sectional survey (n = 428) and structural equation modeling (SEM). Most people are worried about the future of their town (reported by 77.3% of respondents), the long-term effects on groundwater (reported by 77.4% of respondents), and the growing cost of living (reported by 83.4% of respondents). The study encompasses the project's life cycle, from conception and construction to decommissioning and site restoration. The findings indicate that although coal-to-gas projects may provide short-term benefits, they may not be economically sustainable in the long term. Factors such as rising natural gas prices, prospective carbon taxes, and decommissioning and site restoration costs can significantly influence the overall project expense. Hence, policymakers and energy companies must carefully evaluate the life-cycle cost of such projects before investing in them as an interim solution.