While much is made of gas demand growth fueled by gas-firedpower generation, a study sponsored by the American Gas Foundationsuggests advancing technologies for gas-powered distributedgeneration — namely fuel cells — and gas-powered vehicles willspearhead increased demand.

“Visionary market leaders are using these innovative natural gastechnologies to create competitive advantages,” said David Parker,a trustee of the American Gas Foundation and CEO of the AmericanGas Association.

According to the study, titled “Fueling the Future: Natural Gas& New Technologies for A Cleaner 21st Century,” newtechnologies may grow gas consumption by almost 60% over currentlevels, from 22 quadrillion BTUs (quads) in 1998 to 35 quads by2020 if domestic policies encourage greater gas use. On-site powergeneration using gas fuel cells and microturbines is among manytechnologies holding significant potential for the gas industry,according to the study.

“Our study is the first to forecast this level of growth by2000,” said study co-author and former deputy U.S. secretary ofenergy William Martin. “But what makes our study truly unique iswhere and how we see the growth occurring – primarily through theuse of new technologies.”

Besides the promise of distributed generation, the reportforecasts growth in the industrial market as a result ofimprovements in high-efficiency industrial gas equipment, whichshould attract plant operators to natural gas from other fuels. Thestudy says gas cooling and dehumidification systems will drivedemand in the commercial market, including hospitals andrestaurants. The use of gas-powered fleet vehicles, such as transitbuses, will continue to expand in urban areas with air qualityconcerns.

The study was done by Washington Policy Analysis with aneditorial review board that included scientists representing theMassachusetts Institute of Technology and the World ResourcesInstitute

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