Fortune Minerals : COBALT NEWS

National Public Radio - May 11, 2021

The Royal Dutch Shell refinery in Norco, Louisiana. The state is a major petrochemical and oil and gas producer, but Governor John Bel ...

or develop. Now, the climate commission will explore the potential for electriccars, mass transit, solar power, and offshore wind turbines

It may be the most surprising addition to the growing number of states setting aggressive climate goals...Louisiana's economy has long relied on the production of oil, gas and petrochemicals. But in a major shift, officials are looking to dramatically reduce the fossil fuel emissions that disproportionately ravage the state with powerful hurricanes, intense floods, rising seas and extreme heat…'Taking action to address climate change can strengthen our communities and our economy,' said Democratic Gov. John Bel Edwards last week in a statement announcing his plan to join the U.S. Climate Alliance. It follows an executive order late last year setting a goal of making Louisiana carbon-neutral by 2050…The move would put Louisiana in line with President Biden's ambitious climate target for the entire country, and what scientists say is needed globally to avoid the most catastrophic consequences of the warming climate. But it's not clear how Louisiana could achieve that, or if Edwards can overcome political and industry pushback…Louisiana is the fifth-largest carbon producing state, and its petrochemical industry has been growing in recent years. For decades, it has subsidized the oil and gas industry with tax breaks and incentives, but made it hard for wind and solar companies to operate or develop…Now, the climate commission will explore the potential for electric cars, mass transit, solar power, and offshore wind turbines in the Gulf of Mexico…In many ways the energy transition is already happening. Shell Oil is closing a major refinery on the Mississippi River, citing consumer demand for cleaner fuels. Less of Louisiana's GDP comes from oil and gas every year; it's now just under 20 percent, half of what it was in the 1980's…Meanwhile, large renewable energy companies are eying investments in the state. Several major biofuels plants are in the works in northern Louisiana and near Baton Rouge…Noemie Tilghman of Deloitte Consulting says the winners in a new marketplace dominated by renewables will be the companies, and states, that can diversify. 'Those who choose to ignore it, and just believe the cycle will simply work itself, out will be the losers,' she says…Meantime, just 4 per cent of Louisiana's total energy production currently comes from renewables like biomass, hydroelectric and solar, putting it far behind neighboring states Georgia and Texas…Louisiana's climate task force will make its formal recommendations early next year, aiming to balance the state's long identity as an oil and gas state with the reality that climate change is forcing people, industries, and governments to rethink everything.