The Future Energy Industry in North America

When we think about the future of energy in North America, it’s not just about the technology or the latest trends. It’s about where we’re all headed as a community, how we’ll power our homes, fuel our cars, and support our industries in a way that’s cleaner, smarter, and more sustainable. North America’s energy industry is on the brink of big transformations, and the decisions made today by governments, businesses, and communities will shape how we get energy—and how we think about it—for years to come.

Let’s dive into what’s happening in the energy world, the role of government investments, and why this matters for all of us. By the end, you’ll have a clearer idea of what the future of North American energy could look like—and why you might want to keep an eye on it.

1. The Energy Landscape Today: Where We’re Coming From

First, let’s look at the current situation. For a long time, North America’s energy industry has relied on fossil fuels—oil, natural gas, and coal. These energy sources have fueled economic growth and helped build the infrastructure we use today. Natural gas, in particular, has taken center stage over the last couple of decades. Thanks to new technologies like fracking, natural gas has become cheap and plentiful, powering everything from our homes to our industries.

Here’s the data on energy sources in 2022.

The U.S.

・Natural gas: 38%

・Coal: 20%

・Nuclear: 19%

・Wind: 10%

・Hydropower: 6%

・Solar: 5%

Canada

・Hydropower: 60%

・Nuclear: 15%

・Natural Gas: 10%

・Coal: 5%

・Other Renewables: 10%

2. Government Investment: A Catalyst for Change

This industry is primarily propelled by government action. As global awareness of the need for cleaner energy increases, the demand for renewable sources is also rising. However, the shift to cleaner energy poses challenges and comes with significant costs. This is where government funding and incentives play a crucial role. Therefore, to stay informed about developments in the energy industry, it’s essential to monitor government initiatives and actions.

In the U.S., the 2022 Inflation Reduction Act (IRA) is a big game-changer. This is signed into law by President Joe Biden in August 2022, and it is a significant piece of legislation aimed at addressing inflation, advancing clean energy initiatives in the United State. IRA act puts nearly $370 billion into climate and energy initiatives over the next ten years. So, what does that mean? Thanks to these tax credits and grants, companies are finding it increasingly feasible to enter the clean energy sector. This movement is also promoting electric vehicle (EV) infrastructure, energy-efficient manufacturing, and battery storage solutions to store renewable energy.

In Canada, the government is also all-in on clean energy. They’re aiming for net-zero emissions by 2050 and have invested billions in initiatives like the Net-Zero Accelerator program, which funds projects to cut down emissions across the board. They’re also heavily investing in Carbon Capture and Storage (CCS) technology.

The Canadian government has committed to a suite of major economic investment tax credits valued at approximately $93 billion by 2034-35. This initiative includes substantial support for carbon capture, utilization, and storage (CCUS) projects.

3. The Cool and Critical Technologies Changing the Game

So, what kinds of technologies will power this shift? Here are a few innovations:

• Battery Storage: Imagine capturing extra energy from a solar farm during a sunny afternoon and storing it for use at night. Battery storage makes this possible. It’s essential for balancing supply and demand when we rely more on renewables, which are less predictable than fossil fuels.
• Green Hydrogen: “Green hydrogen” is the latest buzzword, referring to hydrogen produced from renewable energy. It’s highly versatile, powering industries, fueling transportation, and heating buildings—all without carbon emissions.
• Small Modular Reactors (SMRs): Nuclear energy is making a comeback, but in a new form. SMRs are compact, next-gen nuclear reactors that produce a lot of energy without taking up much space. Canada, in particular, is looking into SMRs as a way to produce reliable, low-carbon energy that can complement renewables.
• Carbon Capture and Storage (CCS): As I briefly mentioned, CCS is a technology that captures carbon dioxide emissions from power plants or industrial sites and stores it underground.

These technologies are currently evolving.  Advancements in battery storage allow us to harness solar and wind energy even when the sun isn’t shining or the wind isn’t blowing. And as another example, Ontario Power Generation is spearheading the Darlington New Nuclear Project, which aims to build up to four small modular reactors (SMRs) with a total capacity of 1,200 megawatts. This would be sufficient to power approximately 1.2 million homes.

4. What the Future Could Look Like

This movement for renewable and cleaner energy doesn’t come without disadvantages. For example, there are so many places that heavily rely on conventional sources like fossil fuels such as in Texas in the U.S. or in Alberta in Canada. Moreover, it wasn’t designed for the decentralized and variable nature of renewables like solar and wind. To support a greener energy mix, the grid needs to be modernized.

So where are we heading to?

The future of the U.S. energy sector hinges on the presidential election outcome. If Donald Trump is re-elected, he is expected to prioritize fossil fuels, promoting domestic oil and gas production while rolling back regulations and questioning the viability of renewable energy, which could slow progress toward cleaner alternatives.

On the other hand, if Kamala Harris assumes the presidency, she will likely advance the Biden administration’s clean energy agenda, bolstered by the Inflation Reduction Act. This would entail increased investment in renewable energy and electric vehicles, aiming for significant emissions reductions and a quicker transition to sustainability.

The Canadian government has set ambitious targets, aiming to achieve net-zero emissions in the electricity sector by 2035, and the overall economy by 2050. This includes a significant push towards renewable energy, with wind energy expected to see the most substantial growth.

Final Thoughts: A Future We Can All Be Part Of

The North American energy sector is rapidly evolving, and we all have a vested interest in its development. As we’ve discussed, staying informed is essential. We are publishing numerous articles filled with insights about this transition.

We also actively seek out projects that generate carbon credits to offset unavoidable emissions and consumption. By preparing for upcoming changes, including new regulations or laws, we can support you and your businesses in taking proactive measures. Let’s take action in advance!