CERAWEEK: US clean energy transition 'undeniable,' Granholm says

The US is undergoing an "undeniable" shift toward cleaner sources of energy despite an equally indisputable need to secure fossil fuel supplies for the foreseeable future, US Energy Secretary Jennifer Granholm said March 18 at the CERAWeek by S&P Global symposium in Houston.

"And these truths are not in conflict," Granholm said. "The momentum of the clean energy transition is undeniable. Even as we are the largest producer of oil and gas in the world, and the largest exporter of LNG in the world, the expansion of America's energy dominance to clean energy is striking.''

Granholm pointed to surging investments into electric vehicles, renewable energy and clean energy manufacturing.

"This year, for the first time in American history, we expect energy from wind and solar in the US to outpace coal generation," she said. "And by 2030, our modelers expect our electric grid will run on 80% clean energy on the path to get to 100% clean electricity by 2035."

Companies investing billions of dollars into US clean energy installations and factories "are not making these choices out of charity or because they're nice to have," Granholm added. "They're doing it because their bottom lines demand it — goosed, by the way, by incredible tax credits [authorized by the Inflation Reduction Act of 2022]."

The US must "manage this transition" and "keep the lights on" while investing in clean energy, according to the energy secretary.

"So we are in the middle of this historic transition," she said.

'Heat beneath our feet'

Granholm's comments came after several oil and gas CEOs defended fossil fuel industries as essential while also highlighting their investments in renewable energy, hydrogen and other low- to zero-emission technologies.

Saudi Arabian Oil Co. CEO Amin Nasser, for instance, called efforts to phase out of fossil fuels a "fantasy." He also highlighted Saudi Aramco's growing clean energy investments, including through a $7.5 billion venture capital arm.

During her remarks, Granholm announced a new DOE report on geothermal energy that highlights the potential for oil and gas industries to deploy their drilling expertise for clean energy.

"Geothermal has such enormous potential," she said. "If we can capture the heat beneath our feet, it can be clean, reliable, baseload scalable power for everybody, from industries to households."

The report outlines a new Biden administration goal for next-generation geothermal power plants to provide 90 GW by 2050.

"This market is significant," Granholm said. "We're talking about at least ... a $250 billion investment opportunity."