US electric and gas utility Exelon has pledged to greatly reduce its carbon emissions by 2020 at a cost, it estimates, of more than US$10 billion. Exelon emitted 15.7 million tonnes (Mt) of carbon dioxide (CO2) equivalent in 2001, its first full year of operations, and its low-carbon roadmap calls for at least this quantity of greenhouse gas emissions to be reduced, offset or displaced each year by 2020. “Best estimates indicate that our plan could reduce Exelon’s direct emissions in 2020 by 10% to 15% (from 2001 levels),” the company said.

The Chicago-based firm produces some 150 GWh of electricity each year and distributes electricity to approximately 5.4 million customers in northern Illinois and Pennsylvania, and natural gas to 480,000 customers in the Philadelphia area.

As the leading US operator of nuclear power plants, its CO2 emissions per unit of electricity generated are already almost 90% below the national average for the industry. “This means we will have to work even harder to achieve further emissions reductions from our generation fleet,” the company noted.

Exelon said it will pursue three broad strategies: reducing the carbon footprint of its own operations (contributing around 4.9 Mt to the goal); helping customers reduce energy consumption (contributing 6.9 Mt); and offering more low-carbon electricity to the marketplace (contributing up to 12 Mt, with 7.2 Mt from possible new nuclear plants).

“We found that energy-efficiency programmes can provide the least expensive near-term reductions … Our next most cost-effective options are to boost output from existing nuclear facilities, which emit virtually no greenhouse gases, and build new highly efficient, natural gas-fired power plants that will reduce utilisation of older, higher emitting plants.

“By comparison, new nuclear plants and renewable energy are more costly, although both are needed in the long run.”

The initiatives planned include reducing energy consumed by its buildings by 25%, implementing a $250 million residential and commercial energy-efficiency programme in Illinois, and the potential development of a 600MW combined-cycle natural gas plant in Pennsylvania to displace higher-emitting generation.