Earlier this year, the New Jersey Board of Public Utilities (NJBPU) announced that electricity bills for most residents of New Jersey would increase by an average of $25 per month beginning on June 1. Each February, the state’s four electric distribution companies participate in an energy auction run by the NJBPU, which dictates the wholesale price for electricity. The electric distribution companies — including my local provider, Public Service Electric and Gas (PSE&G) — pass along that wholesale cost to consumers.
Assuming an average use of 650 kWh per month, power bills in my area will rise by 17.24% in June — an increase of nearly $30 — according to the NJBPU. Thirty dollars seems like a lot, but many NJ residents are bracing for even larger increases. For reference, in February 2025, my small home used 759 kWh. In July of last year, my household used double that amount of electricity. This summer, I need to be much more conscious of my tendency to leave the lights on and air conditioning blasting at night if I want to avoid a massive energy bill.
These price hikes are a result of increasing demand for electricity as electrification efforts expand and supply decreases. In 2023, Governor Phil Murphy signed a series of executive orders to make electricity production in New Jersey fossil-free by 2035 and boost zero-emission car sales. However, plans to greatly expand renewable energy in the state stalled when Danish company Orsted canceled two offshore wind projects, and a Trump administration memo paused permits and leases for new wind projects. According to the NJBPU, the failure of PJM — the regional transmission organization — to interconnect new generation supply in a timely manner is also partially to blame.
In short, the energy supply is not yet in place to meet the demand increases being driven by decarbonization initiatives in some areas of the U.S. So, why are we still talking about fuel switching in CEP?
If we as a collective society are to limit global temperature rise, then the chemical process industries (CPI) must get serious about reducing carbon emissions. Fuel switching remains a key step in diversifying the energy portfolio of the CPI and will drive this broader energy transition.
Companies in the CPI are exploring innovative approaches to balance decarbonization initiatives with affordability. Chemical engineers have a unique perspective on these approaches because we understand the complexities behind scaling new technologies and optimizing processes. We also understand that fuel switching will not be a “switch” we can flip on or off; it’s a gradual, swelling tide — one that can’t be stopped or forced ahead by one (or many) executive orders. Policy, technology, and market forces must align to make the transition a smooth one. The growing pains we are experiencing in NJ are a result of misalignment as market demands and policy outpace technological implementation.
In the pages ahead, you’ll find insights into emerging fuels such as hydrogen and ammonia, strategies for prioritizing safety in these nascent energy markets, and stories from the organizations leading the charge. Fuel switching may not be an easy path, but it’s a journey worth taking.
Emily Petruzzelli, Editor-in-Chief
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