Prepared by the Salt Lake Chamber
October 6, 2022
A Business Vision for
Utah’s Energy Future
Utah's business community envisions an energy future that places Utah at
the center of the nation's energy transition by harmonizing environmental
and economic progress to ensure a balanced low-carbon energy future
that remains aordable, reliable, and sustainable.
The Salt Lake Chamber, with assistance from the Kem C. Gardner Policy
Institute and R&R Partners, prepared this Business Vision for Utah's Energy
Future. The Business Vision is the outcome of 11 focus groups with college
and university students, members of the Utah Legislature, and business
representatives from the following sectors: agriculture and food, banking,
energy and minerals, health care, hospitality and tourism, real estate and
construction, technology, and transportation.
Table of Contents
Vision in Brief .........................................................1
A Business Vision for Utah's Energy Future .............................1
Utah Energy Production and Consumption ............................4
Utah’s Energy Transition ...............................................4
Note: A Data Compendium that includes additional data, denitions, and focus group
summaries supplements this report. This compendium can be accessed on the
Salt Lake Chamber or Kem C. Gardner Policy Institute websites.
Second Printing
A Business Vision for Utah’s Energy
I
1
U
tah’s business community envisions an energy future that places Utah at the center of the nation's energy
transition by harmonizing and balancing environmental and economic progress to ensure a low-carbon energy
future that remains aordable, reliable, and sustainable. This vision, which will benet from Utah’s diverse
energy portfolio including abundant renewable energy, will set Utah apart from other states. Of particular interest will
be non-fuel mineral assets because of their importance to energy storage and a world rapidly transitioning to electric
vehicles. Six major energy projects, including nuclear and hydrogen, will benet the Beehive State over the next two
decades, even as three coal-red powerplants close and major reneries produce at capacity. As Utah transitions to this
new energy future, business leaders support investment in low and zero-carbon resources, smart grid infrastructure,
research and development of transition technologies, economic assistance for communities impacted by the energy
transition, and optimal utilization of Uintah Basin's low sulfur waxy crude oils. However, Utah business leaders oppose
public and private sector ESG scoring systems and government regulation as catalysts of the energy transition.
A Business Vision for Utah's Energy Future
The business community in Utah envisions a low-carbon energy
future that remains aordable, reliable, and sustainable. This vision
was developed with input from business and policy leaders who
participated in focus group discussions hosted by the Salt Lake Chamber
and shed light on how Utah’s transitioning energy industry will aect
various Utah business sectors. This vision identies key drivers in Utah’s
energy transition such as proper incentives, vast mineral wealth, the
critical role of natural gas in a clean energy future and the need for
technological advances to improve storage capacity of renewable
energy sources. These drivers are described in this vision document.
Utah positioned to lead
Utah possesses unique energy advantages that will help the
state lead out on environmental, energy, and economic progress.
The Beehive State’s diversity of supply (oil and gas, coal, wind, solar,
geothermal, renewable natural gas, hydrogen, and more), energy
storage assets, and built-in energy demand create an environment
where Utah can lead the nation’s energy transition.
Local leadership and innovation
The Utah business community accepts responsibility for leading
the energy transition with state government and Utah’s research
universities playing an important supportive role – one that favors
incentives over regulation and that optimizes ground-breaking
research opportunities to catalyze the transition. A few companies
are highlighted for their commitments and innovative approaches.
PaciCorp plans to reduce its carbon footprint from 2005 levels by 74%
by 2030 across its six-state footprint.
1
Dominion Energy is committed
to net-zero carbon and methane emissions from its power generation
and natural gas operations by 2050. Two local technology companies,
Carbon Solid Products (CSP) and Sustainable Energy Solutions, are
pioneers in sequestering carbon. CSP processes carbon dioxide into
carbon black, which is used in Goodyear tires.
rPlus Energies, a Salt Lake-based company, has developed 2,000
megawatts of renewable energy capacity across the U.S., enough to
power 500,000 homes. rPlus also develops large-scale “pumped hydro”
projects, which shift water between two dierent elevations to store
energy and generate power, to support renewable energy integration
and grid reliability, with several in early development in Utah.
Reneries at capacity
Utah has more rening capacity than any other state in the
Intermountain West (see Table 1). Utah’s ve reneries currently run at
90% of capacity or greater, sending rened products to communities
in Utah, Idaho, Nevada, Wyoming, eastern Washington and Oregon.
Utah reners demonstrated leadership in producing Tier 3 motor fuels
that reduce vehicle emissions by 80% when used in Tier 3 vehicles.
In Utah’s energy transition to lower carbon fuels, Utah reners may
consider production of sustainable aviation fuels and renewable
diesel. These two fuels merit consideration because Salt Lake City is
both an aviation hub and an inland port.
Coal-red powerplant closures
Utah faces scheduled closures of the Bonanza, Huntington, and
Hunter power plants in 2030, 2036, and 2042, respectively. These clo-
sures may commence even sooner due to rapidly changing energy
markets. PacicCorp and other electric utilities across the West have
accelerated retirement dates of various coal plants in recent years be-
cause of market forces. Expected closures such as these signal major
changes ahead for Utah’s energy future.
Vision in Brief
2
I
A Business Vision for Utah’s Energy
Renewable and low-carbon energy projects
Utah has four major renewable/low-carbon energy projects on the
horizon (see Table 2). A Utah Associated Municipal Power Systems
(UAMPS) nuclear plant in Idaho and a PaciCorp nuclear plant in
Wyoming will collectively generate over 800 megawatts to serve Utah
consumers. The Intermountain Power Plant will fuel switch in 2025 from
100% coal to a 30% green hydrogen/70% natural gas mix generating
840 megawatts. Eventually the plant will undergo a second fuel
conversion to run 100% on hydrogen. Advanced Clean Energy Storage
(ACES), a consortium of Magnum Development and Mitsubishi Power
Americas, will generate green hydrogen which will be stored in a
nearby salt cavern. The U.S. Department of Energy (DOE) conrmed
a $505 million loan guarantee for Magnum and Mitsubishi’s green
hydrogen project.
2
The State of Utah is seeking additional funding
from the federal government to establish a regional hub for hydrogen
power that would include several other states.
3
Non-renewable energy
Non-renewable energy resources (coal, natural gas, and crude oil)
account for more than 94% of Utah's energy production, a portion of
which is exported outside the state (net exports represent about 1.5%
of non-renewable energy production in 2019). Two railway projects will
provide additional market opportunities for Utah crude oil producers.
These include railway construction from South Myton Bench in the
Uintah Basin to Helper and terminal construction at South Myton Bench
(see Table 3).
Utah waxy crude oils have low sulfur, low metals, and low nitrogen
content - making them more environmentally friendly than other crude
oil alternatives. Gulf Coast reneries use Uintah Basin waxy crude oil to
produce blend stocks for automobile lubricants and low-sulfur marine
fuels compliant with international standards. Utah reneries have a
combined capacity of about 200,000 barrels of crude oil per day (see
Table 1) but their ability to process Utah waxy crude is limited to about
85,000 barrels per day (see Figure 1). Crude oils from other Utah elds,
Colorado, Wyoming, and Western Canada ll the balance of Utah's
renery capacity.
Table 2: Renewable and Low-Carbon Energy Projects Aecting Utah
Project Description
Commission
Date
Site
Construction
Phase Jobs
Ongoing
Operations Jobs
Nuclear Plants
PaciCorp 2028 Naughton, Wyoming 2000 250
Utah Association of Municipal Power Systems (UAMPS) 2029 Idaho National Lab 1600 334
Mixed Fuel Power Plant
IPP (transition from 100% coal to 30% hydrogen/70% natural gas) 2025 Delta 518 120
Green Hydrogen Facilities
Electrolysis unit & salt cavern storage 2025 Delta 800 290
Source: NuScale Carbon Free Power Project, Wyoming Advanced Energy, IPP Renewed
Table 3: Non-Renewable Energy Projects in Utah
Project Description
Commission
Date
Site
Construction
Phase Jobs
Ongoing
Operations Jobs
Uintah Basin Railway Project
Railway Construction from South Myton Bench to Helper 2026 Uintah Basin 2000 150
Terminal Construction at South Myton Bench 2026 Uintah Basin 450 100
Coal-red Power Plant Closures Projected Closure Date Site Estimated Job Reductions
Bonanza 2030 Uintah County 83
Huntington 2036 Emery County 139
Hunter 2042 Emery County 194
Source: Rio Grande Pacic Railroad, PaciCorp
Table 1: Intermountain West Rening Capacity, 2022
State
Renery Capacity
(barrels per day) Location*
Utah 206,714 North Salt Lake (5 reneries)
Wyoming 125,850 New Castle, Evansville, Evanston, Sinclair
New Mexico 110,000 Artesia
Colorado 103,000 Commerce City
Nevada 2,000 Ely
Idaho 0 -
Arizona 0 -
Total 547,564
Source: Energy Information Administration
*One renery in each location, unless otherwise noted
Source: Estimates based o analysis by sta at the Kem C. Gardner Policy Institute,
Utah Petroleum Association, and the Utah Geological Survey
Figure 1: Estimated Volume of Uintah Basin Waxy Crude, 2022
North Salt Lake Reneries
~85,000 Barrels per day
Gulf Coast Reneries
~30,000 Barrels per day
A Business Vision for Utah’s Energy
I
3
Natural gas
As of 2019, natural gas accounts for 33% of total energy production
in Utah (see Figure 3). Natural gas will have a critical role in the energy
transition since natural gas-red electric generation is capable of
providing low-emitting, low-cost, round-the-clock energy and is
vital to the successful integration of intermittent renewable energy
resources such as wind and solar. Signicant advancement in energy
storage technology and supply chains will be required to support an
increasingly renewable grid in a reliable and cost-eective manner.
Natural gas distributed to homes and businesses provides ecient,
aordable, and environmentally sensitive energy for various home,
business, and industrial applications. Natural gas utilized for home
heating and power generation can be blended with renewable
natural gas, which in certain production forms is carbon negative, or
with hydrogen, which can be produced and utilized carbon free.
Mineral wealth
Utah’s non-fuel mineral wealth, such as lithium, copper and rare
earth elements, may prove as valuable as crude oil, natural gas and
coal. These commodities cannot be grown or manufactured; they must
be mined. Utah's non-fuel mineral wealth will supply components
needed for electric vehicle batteries and renewable energy power
plants in the future.
The International Energy Administration (IEA) projected mineral
demand growth from 2020 to 2040 assuming a global energy
transition to meet the Paris Climate Accord objectives. IEA projects
lithium demand increases 43-fold compared to 2020 levels due to
Table 4. Utah Mineral Production, 2020
Mineral Prodution Location
Copper 417 million lbs. per annum
Bingham Canyon Mine,
Salt Lake County;
Lisbon Valley,
San Juan County
Lithium
By-product of magnesium
recovery in Great Salt Lake brine
Great Salt Lake;
Grand County
Nickel Less than 100 tons per annum
Wells Canyon Nickel
and Clay Pits, Utah County
Manganese
Less than 100 tons manganese
ore per annum
Manganese King
Mine, Kane County
Cobalt
By-product in copper and
uranium deposits
Copper Ridge,
Grand County
Source: Utah Geological Survey; Utah Mining 2020
0.9% Hydro-electric
0.4% Geo-thermal
0.6% Biomass
0.9% Wind
2.8% Solar
0.2% MSW
36.9% Coal
31.3% Natural Gas (Wet/Dry)
24.2% Crude Oil
1.8% Natural Gas (Liquid)
305 (35%) Coal
294 (14%) Natural Gas (Wet/Dry)
213 (24)% Crude Oil
15 (1.7%) Natural Gas (Liquid)
8.5 (1%) Hydro-electric
4.9 (0.6%) Geothermal
6.8 (0.8%) Biomass
7.3 (0.8%) Wind
24 (2.8%) Solar
0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Trillion BTU
Production Consumption
43
41
28
21
16
0
10
20
30
40
50
Index (2020 = 1)
Lithium Nickel Copper Cobalt Manganese
Source: International Energy Administration
Figure 2: Projected Demand Growth of Selected Minerals,
2040 Relative to 2020
increased minerals and metals required by the energy transition
economy (see Figure 2). Utah may meet future copper demands in
the energy transition; however, other minerals require additional
development as noted in Table 4.
Storage and technology
Technology advances such as storage of electricity generated by
renewable energies will be at the forefront of Utah’s energy transition.
The recently begun and aforementioned ACES project ex emplies
storage innovation in Utah. ACES will generate green hydrogen for
storage in a nearby salt dome. The stored hydrogen will generate up
to 300 gigawatt hours of electricity.
4
The environmental impact of
battery production and storage remain areas of needed innovation.
Utah companies are already and will continue to be part of the
solution.
Incentives and regulations
The business community favors energy transition that is market-driv-
en and pragmatic, spurred by incentives and not by government regu-
lation. Utah oers a tax credit for renewable energy generating systems
for residential and commercial installations. This is an example of eorts
underway to spur the energy transition via incentives as opposed to
regulation. From 2015 to 2019, more than 25,000 residential tax credits
for solar photovoltaic systems were issued.
5
Rooftop solar incentives
for Utah homeowners include a 26% federal solar investment tax credit
plus a 25% Utah solar tax credit capped at $800. The Environment Amer-
ica Research & Policy Center honored Salt Lake City as a “Solar Star” city
based on per capita solar capacity and total solar capacity.
Housing aordability is an acute problem along the Wasatch Front.
Focus group participants noted that building code changes requiring
"electric ready" construction would increase housing costs for buyers.
Existing energy eciency programs oer rebates to encourage the
use of equipment and building investments that reduce energy use
and emissions.
Environmental, Social, and Governance (ESG)
ESG standards assess a company’s governance mechanisms and
ability to manage its environmental and social impacts. The U.S.
Securities and Exchange Commission (SEC) currently considers
standardization of decision-useful, climate-related disclosures for
investors. Utah business leaders share the governor, Legislature, and
Utah congressional delegation’s opposition to ESG credit indicators,
both in government and business. These scores have the potential to
impact credit ratings without regard to creditworthiness. Existing credit
ratings already incorporate materially relevant ESG factors. In addition,
state ESG scores mix objective nancial metrics with subjective ESG
metrics and politicize what is best left to rigorous measurement.
Air quality and changing climate
Utah business leaders support research and technology that help
Utah achieve a low-carbon future to address both air quality and
the changing climate and economic transition assistance to energy-
dependent communities.
As of 2019, traditional energy resources (coal, natural gas, crude
oil) make up more than 94% of Utah’s total energy production.
4
I
A Business Vision for Utah’s Energy
Utah’s Energy Transition
Storage capacity is an obstacle to Utah’s economy becoming
more dependent on renewable energy sources. Dispatchability of
energy refers to the ability of a given power source to increase or
decrease output quickly on demand. Renewable energy sources
such as wind power and solar power are not dispatchable due to
their uctuating nature. Solar uctuates because of the day-night
cycle while wind uctuates due to meteorological conditions.
Therefore, renewable energy sources need better storage capacity
to contribute meaningfully to Utah’s energy portfolio mix.
Despite the obstacle of storage capacity for intermittent
renewable energy sources, four major low-carbon energy projects
are on the horizon to spur an energy transition. Some of these
projects will boost low-carbon energy production in Utah while
others, located out of state, will serve Utah consumers:
n Construction of two nuclear plants collectively generating
over 800 megawatts in Idaho and Wyoming, both of which
will service Utah consumers.
n Intermountain Power Plant’s fuel switch in 2025 from
coal to a natural gas/hydrogen blend will generate
840 megawatts.
n An electrolysis plant in Delta will create hydrogen for the
Intermountain Power Plant.
While the nuclear plants won’t generate ongoing jobs in Utah,
the other two projects will bring an estimated 410 ongoing jobs to
the state.
Two railway projects will provide additional market opportu-
nities for Utah crude oil producers. Three coal-red power plants
plan to close over the next 20 years, eliminating a combined
estimated 416 jobs.
Utah Energy Production and Consumption
Renewable sources (solar, hydroelectric, wind, biomass, and
geothermal) account for just under 6% of the state’s energy
portfolio. While non-renewable energy sources account for the
majority of the state’s energy portfolio, the renewable energy
share of Utah’s total energy production increased from just 1% in
2009 to nearly 6% a decade later.
Since 1980, Utah has been a net energy exporter. Utah energy
consumption by source breaks down similarly between non-
renewable (about 94%) and renewable energy (about 6%).
6
Declining coal (-37%) and natural gas (-40%) production levels
between 2009 and 2019 and increased energy consumption (15%)
over that decade reduced the surplus between Utah’s energy
supply and consumption levels from 387 trillion British Thermal
Units (BTUs) to 12 trillion BTUs.
Utah exports coal to the Far East and to neighboring states. Over
the last decade, Utah shipped 13% of its coal production to the
Far East with 16% moving by rail or truck to neighboring states.
California has been the largest domestic importer of Utah coal.
Figure 3: Utah Energy Production by Source, 2019
0.9% Hydro-electric
0.4% Geo-thermal
0.6% Biomass
0.9% Wind
2.8% Solar
0.2% MSW
36.9% Coal
31.3% Natural Gas (Wet/Dry)
24.2% Crude Oil
1.8% Natural Gas (Liquid)
305 (35%) Coal
294 (14%) Natural Gas (Wet/Dry)
213 (24)% Crude Oil
15 (1.7%) Natural Gas (Liquid)
8.5 (1%) Hydro-electric
4.9 (0.6%) Geothermal
6.8 (0.8%) Biomass
7.3 (0.8%) Wind
24 (2.8%) Solar
0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Trillion BTU
Production Consumption
43
41
28
21
16
0
10
20
30
40
50
Index (2020 = 1)
Lithium Nickel Copper Cobalt Manganese
Source: Utah Geological Survey
Figure 4: Utah Energy Production and Consumption,
2009–2019
0.9% Hydro-electric
0.4% Geo-thermal
0.6% Biomass
0.9% Wind
2.8% Solar
0.2% MSW
36.9% Coal
31.3% Natural Gas (Wet/Dry)
24.2% Crude Oil
1.8% Natural Gas (Liquid)
305 (35%) Coal
294 (14%) Natural Gas (Wet/Dry)
213 (24)% Crude Oil
15 (1.7%) Natural Gas (Liquid)
8.5 (1%) Hydro-electric
4.9 (0.6%) Geothermal
6.8 (0.8%) Biomass
7.3 (0.8%) Wind
24 (2.8%) Solar
0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Trillion BTU
Production Consumption
43
41
28
21
16
0
10
20
30
40
50
Index (2020 = 1)
Lithium Nickel Copper Cobalt Manganese
Source: Utah Geological Survey
A Business Vision for Utah’s Energy
I
5
Focus Groups and Research Design Process
The Salt Lake Chamber, with assistance from the Kem C. Gardner
Policy Institute and R&R Partners, hosted 11 focus groups between
September 2021 and May 2022 to seek input on the future of
energy in Utah. These focus groups included representatives from
college and university students, members of the Utah Legislature,
and business representatives from the following sectors: agriculture
and food, banking, energy and minerals, health care, hospitality and
tourism, real estate and construction, technology, and transportation.
R&R Partners facilitated the discussions and sta from the Gardner
Institute captured responses. Forty-six individuals participated in
these focus groups and provided input on the following questions:
1. How would new energy resources (i.e., renewable energy,
hydrogen) aect your business sector?
2. Which national or state energy policies would be either
benecial or detrimental to your business sector?
3. How do your constituents view energy policy goals such as:
• Energy eciency
• Renewable energy development
• Reduction of greenhouse gas emissions
Following the focus groups, the Salt Lake Chamber sought input
from its members to further rene this vision for Utah's energy future.
Key Focus Group ndings are:
1. Incentives - not government regulations - will drive the energy
transition from carbon-intensive fuels to low-carbon fuels.
2. Technologies such as renewable energy battery storage,
carbon capture utilization and sequestration (CCUS), and
harvesting geothermal energy will facilitate the transition to
low-carbon fuels.
3. Base load energies for electricity generation, such as natural gas
and nuclear, should remain in Utah’s energy mix until battery
storage for renewable energies is signicantly improved.
Date Participants
Focus Group 1 Sep. 23, 2021 Energy and Minerals
Focus Group 2 Nov. 18, 2021 Banking
Focus Group 3 Dec. 9, 2021 Real Estate and Const.
Focus Group 4 Jan. 11, 2022 Technology
Focus Group 5 Jan. 12, 2022 Transportation
Focus Group 6 Jan. 28, 2022 Health Care
Focus Group 7 Feb. 16, 2022 Hospitality and Tourism
Focus Group 8 Mar. 24, 2022 Agriculture and Food
Focus Group 9 Mar. 9, 2022 Legislators
Focus Group 10 Mar. 16, 2022 Legislators
Focus Group 11 May 6, 2022 College and Univ. Students
Business Vision Research Process
Research Design 11 Focus Groups Analysis
Salt Lake Chamber
Member Outreach
Business Vision for
Utah’s Energy Future
1. https://www.pacicorp.com/content/dam/pcorp/documents/en/
pacicorp/energy/integrated-resource-plan/2021-irp/Volume%20I%20
-%209.15.2021%20Final.pdf. PaciCorp's Rocky Mountain Power business
unit serves customers in Utah, Idaho, and Wyoming. Pacic Power serves
customers in Oregon, Washington, and California.
2. https://www.utilitydive.com/news/doe-loan-guarantee-utah-hydrogen-
storage-mitsubishi/625190/
3. https://energy.utah.gov/wp-content/uploads/Western-Inter-States-
Hydrogen-Hub-MOU.pdf.
4. https://www.powermag.com/aces-deltas-giant-utah-salt-cavern-hydrogen-
storage-project-gets-504m-conditional-doe-loan-guarantee/
5. Utah Governor’s Oce of Energy Development. (2020). Foundations for
a Better Energy Future. https://energy.utah.gov/wp-content/uploads/
Foundations-for-a-Better-Energy-Future.pdf.
6. ibid.
7. https://energy.utah.gov/wp-content/uploads/2021-Utah-Transmission-
Study-Technical-Report-FINAL-210121.pdf.
8. https://www.westerneim.com/Pages/About/QuarterlyBenets.aspx.
The challenges of poor air quality and the changing climate are
similar: Both negatively aect health, the state's economy, our
environment, and quality of life. By reducing emissions and auto
dependency, improving energy eciency, and advancing innovative
energy solutions, Utah can address both challenges simultaneously
while preserving conditions that promote strong economic growth.
Transmission
Electrical transmission is the process of delivering generated
electricity to distribution grids located in populated areas. A robust
transmission system will allow renewable energies to feature in Utah’s
energy mix. Regional renewable resources such as solar and wind
are projected to support up to 5,000 megawatts of Utah’s electricity
generation by 2030
7
. This increased electricity generation may require
building out up to 290 new line-miles to upgrade transmission
infrastructure in Utah to avoid grid congestion.
The Western Energy Imbalance Market (WEIM) optimizes electricity
resources across the West and integrates renewable energy sources,
creating a market for transmitted energy. WEIM benets accrue when
economic transfers displace more expensive electricity generation.
Since PaciCorp joined WEIM in November 2014, estimated accrued
benets total $453 million through June 2022.
8
Conclusion
Utah's business community supports an energy future that places
the state at the center of the nation's energy transition. Utah possesses
many advantages that will help it lead out on energy, environmental,
and economic progress including its diverse energy portfolio, wealth of
mineral assets, strong state and local leadership, new energy projects
already underway, innovative business culture, and proper incentives.
These advantages will help the state make progress towards a low-car-
bon energy future that will remain aordable, reliable, and sustainable.
201 South Main Street #2300
Salt Lake City, UT 84111
Phone: (801) 364-3631
Email: info@slchamber.com
Salt Lake Chamber Board of Directors
Dr. Donna L. Milavetz, Chair
Gary Hoogeveen, Vice Chair
Lloyd Allen
Nathan R. Callister
Amanda Covington
John Dahlstrom
Darla Gill
Natalie Gochnour
Kay Hall
Dan Hemmert
Clark D. Ivory
Greg M. Johnson
Marti Lolli
Matt Lyon
Derek Miller
Sterling W. Nielsen
Scott Parson
David A. Petersen
Gaby Poirier
Gary B. Porter
Nico Bamberger Priskos
Taylor Randall
Steven Ridge
Steve Starks
Clayton Walker
Linda Wardell