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Natural gas leads the transition from using polluting fuels to using renewable energies, while maintaining the reliability and efficiency of the power supply and continually reducing the environmental footprint.

The production of natural gas enables the execution and implementation of the plan announced by the Government of Israel to end the use of coal by 20251. Phasing out of coal while transitioning to natural gas will cause a decrease of approx. 10 million tons of CO2 emissions in 2025 compared to 2020, despite the consistent increase in power generation:

Electricity production capacity in Israel using coal (TWH)

20.0
15.0
10.0
5.0
0.00
2020
*2025

CO2 emissions from electricity production (in millions of tons)

36.0
29.5
23.0
16.5
10.0
2020
*2025

Positive environmental impact of the transition from coal use to natural gas

NewMed Energy's operations improve the air quality in Israel by reducing emissions of greenhouse gases and other pollutants into the air. NewMed Energy strives to minimize the negative impact and to expand and maximize the positive impact that its business creates.

According to the Ministry of Energy's data, the shift to natural gas from 2013-2020 enabled Israel to reduce by more than 70% the emissions of pollutants caused by power generation and roughly 50% reduction in the national level. It also led to savings of over NIS 130 billion in environmental costs. In addition, the use of natural gas over coal, diesel, LPG, and fuel oil from 2013-2020 resulted in approx. NIS 51 billion in economic savings.

The significance of the production of natural gas versus the production of coal2:

  • A 92-fold reduction in sulfur dioxide emissions3
  • A 2.8-fold reduction in nitrogen oxides.
  • A 7.5-fold reduction in particles that are harmful to the health of people, animals, plants, and to the air and water quality in the emission area.
  • A 2.4-fold reduction in carbon dioxide emissions.
  • Power plants that use natural gas are not necessarily located on the shore, as opposed to coal-fired power plants, leading to the improvement of air quality in such areas and to the significant decrease of their environmental footprint
Emissions (thousands of tons per year)
Total market production (TWH)
85
64
120
90
43
60
21
30
0
0
2012
2013
2014
2015
2016
2017
2018
2019
2020
2022
Electricity production
SO2 emissions
NO2 emissions

Economic impact of the transition from coal to natural gas

  • Increasing national energy security.
  • Decreasing the dependence on importing energy products4.
  • Increasing the GDP.
  • Reducing the import of polluting fuels.
  • Contributing to the country's revenues.

The gas that NewMed Energy exports to Egypt and Jordan helps such countries to reach their decarbonization environmental targets, by decreasing their use of more polluting fuels. Beyond the many environmental, economic, and security benefits, natural gas discoveries contribute to strengthening Israel's foreign relations with its neighbors, who consume its natural gas on a long term commercial relationship.

  1. Partnership information, BDO, EIA, World Nuclear Organisation reshut_hasmal_2020_data https://www.gov.il/BlobFolder/policy/electricity_nov_2019/he/electricity_nov_2019.pdf
  2. https://www.gov.il/he/departments/publications/reports/mediniyout_peham
  3. https://www.gov.il/he/Departments/publications/reports/mediniyout_peham
  4. https://economy.pmo.gov.il/CouncilActivity/Documents/mithadesh180917.pdf

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