Connect with us

Business

Last orders: Britain's pubs struggle to survive in an atomized, remote-work world

Published

on

Last orders: Britain's pubs struggle to survive in an atomized, remote-work world

Over the bar of a 200-year-old pub in southeast London hangs a sign: “For the people of East Greenwich, by the people of East Greenwich.”

What might sound like a pithy slogan is in fact the truth. The Star of Greenwich, which almost closed for good last year, has been saved by the local community after three residents — all of whom hold down full-time jobs — came to the rescue of their “local.”

“Once these things go, they never come back,” says James Gadsby Peet, who banded together with two friends to take over running the pub. It’s not the drinks that matter here, he says, but preserving “a community space for people to come together.”

Directors and co-founders of the Star of Greenwich community pub are Lisa Donohoe, left, James Gadsby Peet and Kirsty Dunlop.

Advertisement

(Joshua Bright / For The Times)

Had the trio not resolved to save the Star, it would have become one of the many taverns in the British capital that closed at a record pace last year. Hit by a stubborn cost-of-living crisis and post-pandemic economic woes, 383 London pubs called for last orders in the first six months of 2023, compared with 380 in all of 2022.

Earlier this month, four sister pubs in central London — including one believed to have been frequented by two of Jack the Ripper’s victims — were put up for sale, highlighting the struggles of an industry synonymous with British life.

The Star (formerly the Star and Garter, before the new team renamed it) has been serving up pints since the early 1800s, with the dark wooden beams inside believed to be from its original construction. But even its long history wasn’t enough to guarantee its future until the community rallied around it.

Advertisement

Pubs across Britain, not just in London, are suffering a worse fate. Government figures show that from 2000 to 2019, the last full year of business prior to the COVID-19 pandemic, 13,600 pubs around the country, or 22% of the total, shut their doors for good. Last week, the British Beer and Pub Assn. warned that, without economic support, a further 2,000 may be gone by the time this year is out, potentially leading to 25,000 jobs lost — and 288 million fewer pints poured.

Aside from financial pressures, pubs — long the social glue in British communities — are increasingly falling victim to shifting work and leisure patterns. “Old boozers,” as they are affectionately known, are struggling to compete in a world where people work from multiple locations at variable hours and have myriad entertainment options on their phones and computers.

1

2

3

Advertisement

1. Musicians and patrons chat at the Star of Greenwich. James Gadsby Peet said he decided to help run the pub to preserve “a community space for people to come together.” 2. Rolo enjoys some beer at the Star of Greenwich. 3. The Star of Greenwich was on the verge of closing down before the community stepped in to save it. (Photographs by Joshua Bright / For The Times)

Charo Havermans, a historian at University College London who studies the role of pubs in public life, says that such establishments remain vital and inclusive gathering spots in an age when religion is in decline and communication is increasingly virtual.

“There’s a true sense of community that falls away when pubs disappear,” she says. “You lose a sense of history.”

Advertisement

Given the crucial role that pubs have played in local neighborhoods, it’s perhaps no surprise that some communities have stepped in themselves to keep the lights on.

When the Step pub in north London closed in 2020, there was an outcry as property developers tried to take it over, leading Dan Jones, a resident of four years, to consider a different solution: “Why don’t we try and buy it as a community?”

He began handing out fliers and, in a matter of weeks, “very quickly realized there was a large appetite” to enact his plan. Hundreds of people pledged to invest in a fundraising campaign, and within four weeks, the effort raised $357,000 — far in excess of the $319,000 goal — which was topped up by a government grant of $382,000.

“It took us by surprise, the speed at which we were able to raise the money and the fact that we got over target,” Jones says.

He puts this down to the Step being more than just a place to drink. “It was the hub of the area … so people really missed that when that was gone,” he says. “And that’s why there was this feeling to bring it back.”

Advertisement

Border collie Stanley is a favorite at the Star.

(Joshua Bright / For The Times)

Another pub-saving initiative, CityStack, lets bar-hoppers pay $32 for a special beer mat that gives them $13 off tabs of $25 or more at participating establishments. The discount is good for up to 10 visits.

At the Star in East Greenwich, Gadsby Peet admits that financially, things are “really tight,” even though the community-run pub needs to pay only for behind-the-counter staff, with no management costs, and there is no pressure to turn a profit. Currently, the pub welcomes customers from Thursday through Sunday, as the team “can only open [at] the times we can afford to open.”

Advertisement

Strong business over Christmas has meant that “at the moment, it’s sustainable,” he says, though “you never quite know what’s going to happen.”

The crowd on a Saturday night is a mixture of friends, a smattering of solo drinkers and a young couple on a date, mulling whether to head to the jukebox or dartboard. The bar staff knows regulars by name and is primed for chitchat in a part of London best known for its role in maritime history and as the birthplace of notable Tudors, including Henry VIII.

The pub was open until 2021, when its license was suspended following a stabbing outside. After news circulated that the building was to be sold, Gadsby Peet and Kirsty Dunlop fell to chatting at the gates of their children’s school and resolved that, together with another friend, Lisa Donohoe, they would put together a proposal to save it.

1

2

Advertisement

3

1. A sign above the bar at the Star of Greenwich pub. 2. Pete Ribers throws a dart at an old board still bearing the previous name of the Star of Greenwich. 3. Alan Campbell, left, and Rob Calnan play the ring and hook game. (Photographs by Joshua Bright / For The Times)

The building’s owners “bought into the vision,” Gadsby Peet recalls. “They saw this as a great way that they could use some of their assets for community good.”

Advertisement

The team still has to make sure that rent for the premises is paid each month. Gadsby Peet admits that juggling the Star, his job as director of a web design agency and his young family has been more challenging than he imagined.

“At the beginning you don’t realize how much [work] it’s going to be, so the first thing is just, ‘We’ll send a couple of emails,’” he says. “And before you know it, you’ve got a lot of people interested.”

His main measure of success comes at the end of the week, when in the Star he “see[s] people who are working on the railways … next to people who are working in Canary Wharf [a business district] … next to people who have been drinking here since the ’50s. That, for me, is where the really great stuff happens.”

Pat Murray, 86, has been a loyal customer since his early 20s. He recalls coming to the pub when he and his wife “were courting. I’ve since brought my children, grandchildren and now great-grandchildren into the pub. It’s a family tradition for us.”

Keeping prices low — a pint of beer costs from $6, compared with $9 at many London pubs — and offering the space for free to community groups and activities including kids’ clubs, Italian classes and local folk musicians has eased concerns about gentrification and fostered new connections, Gadsby Peet says.

Advertisement

James Gadsby Peet admits that financially, things are “really tight” at the Star. Behind him are co-founders Lisa Donohoe and Kirsty Dunlop.

(Joshua Bright / For The Times)

He adds that throwing the Star’s doors open to a wider group has allowed locals “to meet people that they wouldn’t otherwise run into. We think the more that that happens, the more cohesive the community becomes, the nicer a place it is to live.”

A September report by Co-operatives UK, an organization that represents cooperative businesses, showed that they play “a significant role in community development” and that community-owned pubs have increased by 62.6% in the last five years.

Advertisement

But some pubs in London’s commercial centers have found it harder to weather the current storms. The rise of remote working, with many employees now going into the office only on Tuesdays, Wednesdays and Thursdays, has significantly slashed footfall in neighboring hospitality businesses. Late last year, figures showed that office occupancy in Central London had reached its highest level since the pandemic, at an average of 50.9% — but that is still 10% to 30% lower than before the coronavirus hit.

When the first national lockdown was announced in March 2020, “everybody thought it was just going to be a blip,” says Lorraine Crawford, who took over the Centre Page tavern near St. Paul’s Cathedral, in London’s historic financial district, in 2005. But her business “overnight just took a nosedive. … It never ever really gained momentum again.”

Crawford and her husband, who had by that stage been in the industry for four decades, “tried everything” to keep the place afloat, she says, but paying $127,000 per year in rent, along with $45,000 in business taxes, was “horrendous. We were getting in debt all the time.”

People pass by the lighted-up Star pub. “There’s a true sense of community that falls away when pubs disappear,” says Charo Havermans, a historian at University College London who studies the role of pubs in public life. “You lose a sense of history.”

(Joshua Bright / For The Times)

Advertisement

Add the inflation on alcoholic drinks — which late last year reached 9.9%, the highest since the early ’90s — and the only thing left to do “was back out of it gracefully, which was so sad,” Crawford says. “We were more of a family because we were just a small business.”

The Centre Page closed more than a year ago.

“In our industry, nothing has gone back to being the same,” Crawford laments. “And I don’t think it ever will.”

Lytton is a special correspondent.

Advertisement

Business

Altadena asked Edison to bury power lines. Some fire victims say that could cost them $40,000

Published

on

Altadena asked Edison to bury power lines. Some fire victims say that could cost them ,000

Connor Cipolla, an Eaton wildfire survivor, last year praised Southern California Edison’s plan of burying more than 60 miles of electric lines in Altadena as it rebuilds to reduce the risk of fire.

Then he learned he would have to pay $20,000 to $40,000 to connect his home, which was damaged by smoke and ash, to Edison’s new underground line. A nearby neighbor received an estimate for $30,000, he said.

“Residents are so angry,” Cipolla said. “We were completely blindsided.”

Other residents have tracked the wooden stakes Edison workers put up, showing where crews will dig. They’ve found dozens of places where deep trenches are planned under oak and pine trees that survived the fire. In addition to the added costs they face, they fear many trees will die as crews cut their roots.

“The damage is being done now and it’s irreversible,” homeowner Robert Steller said, pointing Maiden Lane to where an Edison crew was working.

Advertisement

For a week, Steller, who lost his home in the fire, parked his Toyota 4Runner over a recently dug trench. He said he was trying to block Edison’s crew from burying a large transformer between two towering deodar cedar trees. The work would “be downright fatal” to the decades-old trees, he said.

Altadena resident Robert Steller stands in front of his Toyota 4Runner that he parked strategically to prevent a Southern California Edison crew from digging too close to two towering cedar trees.

(Ronaldo Bolaños / Los Angeles Times)

The buried lines are an upgrade that will make Altadena’s electrical grid safer and more reliable, Edison says, and it also will lower the risk that the company would have to black out Altadena neighborhoods during dangerous Santa Ana winds to prevent fires.

Advertisement

Brandon Tolentino, an Edison vice president, said the company was trying to find government or charity funding to help homeowners pay to connect to the buried lines. In the meantime, he said, Edison decided to allow owners of homes that survived the fire to keep their overhead connections until financial help was available.

Tolentino added that the company planned meetings to listen to residents’ concerns, including about the trees. He said crews were trained to stop work when they find tree roots and switch from using a backhoe to digging by hand to protect them.

“We’re minimizing the impact on the trees as we [put lines] underground or do any work in Altadena,” he said.

Although placing cables underground is a fire prevention measure, consumer advocates point out it’s not the most cost-effective step Edison can take to reduce the risk.

Undergrounding electric wires can cost more than $6 million per mile, according to the state Public Utilities Commission, far more than building overhead wires.

Advertisement

Because utility shareholders put up part of the money needed to pay for burying the lines, the expensive work means they will earn more profit. Last year, the commission agreed Edison investors could earn an annual return of 10.03% on that money.

Edison said in April it would spend as much as $925 million to underground and rebuild its grid in Altadena and Malibu, where the Palisades fire caused devastation. That amount of construction spending will earn Edison and its shareholders more than $70 million in profit before taxes — an amount billed to electric customers — in the first year, according to calculations by Mark Ellis, the former chief economist for Sempra, the parent company of Southern California Gas and San Diego Gas & Electric.

That annual return will continue over the decades while slowly decreasing each year as the assets are depreciated, Ellis said.

“They’re making a nice profit on this,” he said.

Tolentino said the company wasn’t doing the work to profit.

Advertisement

“The primary reason for undergrounding is the wildfire mitigation,” he said. “Our focus is supporting the community as they rebuild.”

It’s unclear if the Eaton fire would have been less disastrous if Altadena’s neighborhood power lines had been buried. The blaze ignited under Edison’s towering transmission lines that run down the mountainside in Eaton Canyon. Those lines carry bulk power through Edison’s territory. The power lines being put underground are the smaller distribution lines, which carry power to homes.

A power line currently powering the home

A power line outside the home of Altadena resident Connor Cipolla.

(Ronaldo Bolanos/Los Angeles Times)

The investigation into the fire’s cause has not yet been released. Edison says a leading theory is that one of the Eaton Canyon transmission lines, which hadn’t carried power for 50 years, might have briefly reenergized, sparking the blaze. The fire killed 19 people and destroyed more than 9,000 homes, businesses and other structures.

Advertisement

Edison said it has no plans to bury those transmission lines.

The high cost of undergrounding has become a contentious issue in Sacramento because, under state rules, most or all of it is billed to all customers of the utility.

Before the Eaton fire, Edison won praise from consumer advocates by installing insulated overhead wires that sharply cut the risk of the lines sparking a fire for a fraction of the cost. Since 2019, the company has installed more than 6,800 miles of the insulated wires.

“A dollar spent reconductoring with covered conductor provides … over four times as much value in wildfire risk mitigation as a dollar spent on underground conversion,” Edison said in testimony before the utilities commission in 2018.

By comparison, Pacific Gas & Electric has relied more on undergrounding its lines to reduce the risk of fire, pushing up customer utility bills. Now Edison has shifted to follow PG&E’s example.

Advertisement

Mark Toney, executive director of the the Utility Reform Network, a consumer group in San Francisco, said his staff estimates Edison spends $4 million per mile to underground wires compared with $800,000 per mile for installing insulated lines.

By burying more lines, customer bills and Edison’s profits could soar, Toney said.

“Five times the cost is equal to five times the profit,” he said.

Last spring, Pedro Pizarro, chief executive of Edison International, told Gov. Gavin Newsom about the company’s undergrounding plans in a letter. Pizarro wrote that rules at the utility commission would require Altadena and Malibu homeowners to pay to underground the electric wire from their property line to the panel on their house. He estimated it would cost $8,000 to $10,000 for each home.

Residents who need to dig long trenches may pay far more than that, said Cipolla, who is a member of the Altadena Town Council.

Advertisement
Altadena , CA - February 12: A lone oak tree stands tall

An oak tree stands tall in an area impacted by the Eaton fires. Homeowners worry such trees could be at risk in the undergrounding work.

(Ronaldo Bolanos/Los Angeles Times)

Last week, Cipolla showed a reporter the electrical panel on the back of his house, which is many yards away from where he needs to connect to Edison’s line. The company also initially wanted him to dig up the driveway he poured seven years ago, he said. Edison later agreed to a location that avoids the driveway.

Tolentino said Edison’s crews were working with homeowners concerned about the company’s planned locations for the buried lines.

“We understand it is a big cost and we’re looking at different sources to help them,” he said.

Advertisement

At the same time, some residents are fuming that, despite the undergrounding work, most of the town’s neighborhoods still will have overhead telecommunications lines. In other areas of the state, the telecommunications companies have worked with the electric utilities to bury all the lines, eliminating the visual clutter.

So far, the telecom companies have agreed to underground only a fraction of their lines in Altadena, Tolentino said.

Cipolla said Edison executives told him they eventually plan to chop off the top of new utility poles the company installed after the fire, leaving the lower portion that holds the telecom lines.

“There is no beautification aspect to it whatsoever,” Cipolla said.

As for the trees, Steller and other residents are asking Edison to adjust its construction map to avoid digging near those that remain after the fire. Altadena lost more than half of its tree cover in the blaze and as crews cleared lots of debris.

Advertisement

1 A pedestrian walks past Christmas Tree lane in Altadena. Christmas Tree Lane was officially listed in the National Register of Historic Places in 1990.

2 A 'We Love Altadena' sign hangs from a shrub

3 Parts of a chopped down tree sit on a street curb

1. A pedestrian walks past Christmas Tree lane in Altadena. Christmas Tree Lane was officially listed in the National Register of Historic Places in 1990. 2. A “We Love Altadena” sign hangs from a shrub on Christmas Tree Lane. 3. Parts of a chopped down tree rest on a street curb in Altadena.

Wynne Wilson, a fire survivor and co-founder of Altadena Green, pointed out that the lot across the street from the giant cedar trees on Maiden Lane has no vegetation, making it a better place for Edison’s transformer.

“This is needless,” Wilson said. “People are dealing with so much. Is Edison thinking we won’t fight over this?”

Advertisement

Carolyn Hove, raising her voice to be heard over the crew operating a jackhammer in front of her home, asked: “How much more are we supposed to go through?”

Hove said she doesn’t blame the crews of subcontractors the utility hired, but Edison’s management.

“It’s bad enough our community was decimated by a fire Edison started,” she said. “We’re still very traumatized, and then to have this happen.”

Advertisement
Continue Reading

Business

Super Bowl spots spark fight over whether we’re ready for ads from our chatbots

Published

on

Super Bowl spots spark fight over whether we’re ready for ads from our chatbots

The chatbot wars entered the Super Bowl this year.

At Super Bowl LX, a ChatGPT competitor paid millions of dollars for commercials mocking the leading artificial intelligence chatbot’s plans to put advertisements in its chats.

One of the ads, titled “Betrayal,” showed a man seeking help to communicate better with his mother. His therapist, representing a sponsored bot, offers advice on mending the relationship, then suddenly suggests a mature dating site to connect with “roaring cougars.”

The ads from Anthropic, which has a chatbot named Claude, ends with the tagline: “Ads are coming to AI. But not to Claude.”

AI companies are spending hundreds of billions of dollars and need to generate more revenue to keep spending. Though much of the money comes from subscriptions from companies and other heavy users, companies serving regular consumers will probably need to increasingly rely on ads and other methods to monetize mass market users.

Advertisement

The Super Bowl Sunday ads launched a debate about what a future would look like in which the bots many people talk to all day start pitching products.

OpenAI, which has more than 800 million users, generated around $20 billion in revenue in 2025, according to its chief executive, Sam Altman. That still isn’t enough to cover what it has borrowed and plans to spend.

Last month, OpenAI said it will be testing ads for its free-tier users and its low-cost ChatGPT Go subscribers in the U.S.

“Subscriptions cover the committed users,” said former Google executive Justin Inman, who is the founder of Emberos, a startup that researches brand visibility in AI. “But they have a ton of free users as well.”

Ads have just started rolling out on ChatGPT, and the company has shared examples of what they look like in a chat.

Advertisement

One example showed a static link to purchase hot sauce at the bottom of the answer, labeled ‘sponsored’. Another was more conversational. After answering a user query about Santa Fe, the chatbox provided a link to a desert cottage in the locality.

OpenAI underlined that the ads won’t influence ChatGPT’s answers and will be separate and clearly labeled.

Altman responded to the Anthropic commercial on X, calling it funny but “dishonest.”

“We would obviously never run ads in the way Anthropic depicts them,” he said. “We are not stupid and we know our users would reject that.”

He suggested Anthropic was being elitist.

Advertisement

“Anthropic serves an expensive product to rich people,” he said, while OpenAI feels “strongly that we need to bring AI to billions of people who can’t pay for subscriptions.”

Anthropic was founded in 2021 by former OpenAI employees. Though the two companies have been long-term rivals, the Super Bowl ad was one of the first times the scuffle was so public.

While ChatGPT targeted everyday users, Anthropic has focused on selling chatbot services to business customers. The company has witnessed explosive growth, clocking a reported $9 billion in revenue in 2025, and is projected to reach $26 billion this year.

Demis Hassabis, the CEO of Google DeepMind, which operates Gemini, said in a recent interview that he was surprised by OpenAI’s decision to monetize the chatbot through ads this early. Pushing products mid-conversation inside a chatbot could hurt users’ trust in AI as a helpful assistant, he said.

Though Google’s Gemini chatbot doesn’t push ads, last year the company introduced ads in the AI-generated summaries users see atop Google search results. The company also began testing ads in “AI Mode,” a conversation feature on the Google homepage, where sponsored cards appear below the AI-generated search results.

Advertisement

Elon Musk’s Grok, the AI that is integrated into the platform X, also told advertisers last year that it would start testing ads inside chatbot responses as a way to boost revenue and pay for the expensive chips powering AI.

More U.S. shoppers are already turning to AI chatbots, and a Deloitte survey found that trust in generative AI has been steadily increasing. Younger shoppers are using chatbots for comparison shopping, finding deals, summarizing product reviews, and generating shopping lists.

Even without bribing the bots to provide direct advertising, brands are already trying to find ways to get into the good books of AI search results. An entire cottage industry of startups and consultants has emerged to help retailers and brands ensure their products appear in AI search results, a field called Generative Engine Optimization.

The market for traditional search engine optimization was $20 billion to $25 billion, but the potential for AI-driven commerce is much larger, said Amay Aggarwal, a co-founder of Anglera. His company helped Los Angeles-based e-bike and outdoor goods retailer Retrospec adapt its product catalog so that AI chatbots such as ChatGPT and Gemini could accurately recommend the right bikes for specific conditions.

Even as advertising evolves to embrace AI, many of the top AI companies saw value in old-school Super Bowl television ads. In the era of fragmented internet culture, the Super Bowl remains one of the last major shared American television viewing events that draws more than 100 million viewers. AI companies paid up to $10 million for a 30-second spot.

Advertisement

Super Bowl LX was overrun with advertisements from many AI majors, including OpenAI, which promoted its coding platform Codex, and Google’s Gemini, which spotlighted its photo-generation capabilities.

Despite being the “AI Super Bowl,” none of the major AI companies — OpenAI, Google, Anthropic — made the top 20 brands that performed well in generative AI search and conversation during Super Bowl week.

“Being an AI brand doesn’t automatically translate into being remembered by AI,” said Inman of Emberos, whose company produced The AI Influence Index, which tracked the top seven Super Bowl advertisers and how they were showing up in AI queries.

The seven brands that dominated chatbot searches were XFINITY, Bud Light, Squarespace, Ramp, Budweiser, Volkswagen and Dove.

“As ads move into chatbots, the real competition won’t be for attention — it’ll be for how clearly your message survives retelling by AI,” Inman said.

Advertisement
Continue Reading

Business

Contributor: Blending hydrogen into gas pipelines would enrich utilities and harm Californians

Published

on

Contributor: Blending hydrogen into gas pipelines would enrich utilities and harm Californians

The people of Orange Cove in Fresno County could soon be an unwilling part of an experiment in dangerous, expensive utility boondoggles. And if California’s gas companies get their way, families statewide will be forced to pay higher energy bills, breathe more indoor air pollution and bear greater safety risks.

Southern California Gas Co. wants to use Orange Cove to test blending hydrogen with natural gas in its pipeline network. This might sound futuristic and clean because it would reduce fossil fuel use, but it would waste $64 million in SoCalGas customer money and threaten this community’s health and safety — without actually fighting climate change.

Worse yet, SoCalGas and two other utilities just petitioned state regulators to skip pilot projects altogether. If approved, they could then request to pump a 5% hydrogen blend across California without demonstrating safety.

The problem is blending hydrogen into pipelines and appliances designed for gas. Hydrogen is leakier and more flammable, and it burns hotter and faster than gas. It can’t be smelled or seen, and burning it increases asthma-causing air pollution in homes and risks damaging appliances. Forcing consumers to burn hydrogen worsens fire, explosion and health risks in our homes, where we should feel most safe

The truth is gas utilities’ hydrogen blending proposals intend to keep customers hooked on pipelines. Utilities earn huge profits on infrastructure investment — over 10% for SoCalGas. The wiser approach for Californians would be to switch from gas to electric appliances, protecting customers from volatile gas prices and toxic indoor air. But that would hurt gas utility profits.

Advertisement

In my state of Colorado, our largest utility, Xcel Energy, proposed mixing hydrogen into the natural gas system serving a Denver suburb. When the community learned Xcel was forcing residents into a dangerous, expensive gas alternative disguised as climate action, they pushed back with enough time to force Xcel to pause its effort.

This story is playing out across the country and the world. In Eugene, Ore., backlash from residents made NW Natural cancel its hydrogen blending pilot. In Massachusetts, state regulators prevented utilities from pursuing similar plans. In the United Kingdom, residents of Whitby and Redcar protected themselves from even larger proposals.

Orange Cove is the next flare-up. SoCalGas began campaigning to blend hydrogen in 2022, but residents recently uncovered the truth and are speaking out accordingly. State regulators are expected to act by June, and their decision will have far-reaching consequences.

SoCalGas’ proposal stems from state policy to slash climate pollution from gas utility systems — a good idea, but a threat to utility profits. In theory, replacing natural gas with hydrogen can help gas utilities cut emissions while still investing in pipelines, because hydrogen can be produced and burned without emitting greenhouse gases.

But that’s where hydrogen’s advantages end.

Advertisement

Let’s air out the proposal’s dirty laundry: SoCalGas’ proposal to blend less than 5% hydrogen into Orange Cove’s system — which serves about 2,000 customer gas meters — would cost $64 million over 18 months. That’s comparable to removing the tailpipe pollution of 100 cars for one year.

That same $64 million could permanently remove the pollution of 12 times as many gasoline cars if used to purchase new electric vehicles. It’s also worth around $32,000 per customer gas meter in Orange Cove — more than enough for the community to install electric heat pumps, heat pump water heaters and induction stoves, zeroing out gas use.

Using that $64 million to fund incentives for cleaner, efficient electric appliances could help tens of thousands of Californians eliminate indoor air pollution and climate emissions.

This price tag is ludicrous for an 18-month experiment. Clean hydrogen is an extremely expensive way to heat homes. Current prices are 10 to 25 times higher than that of natural gas, and even the most optimistic forecasts expect it to remain much more expensive for decades.

Gas utilities claim Orange Cove will “inform the feasibility of developing a hydrogen injection standard” to decarbonize their broader systems, but that hides the truth: Hydrogen blending is a dead end that at best would reduce gas utility climate emissions by less than 7%. California’s gas system was not designed to safely handle more than a small share of hydrogen, so this pilot project couldn’t meaningfully scale up without the wholesale replacement of all gas pipelines and appliances.

Advertisement

Pilot projects seem small in the grand scheme of things, but they lend legitimacy to a bad idea debunked as a climate solution and wisely rejected by other communities time and time again. It would be even worse to ditch pilot tests and skip right to harming Californians with statewide blending.

Hydrogen is not categorically a “false solution” for climate. We need it to clean up things like fertilizer, chemicals and aviation fuel — products without cheaper clean alternatives that are made in specialized industrial complexes overseen by trained technicians.

But California doesn’t need hydrogen to clean up its buildings. Families are already choosing electric appliances for higher-quality, fully clean service. Hydrogen can’t save our gas networks; it can only waste money and delay California’s work to stop climate change.

Forcing communities to use hydrogen also reduces consumer choice. People have the freedom to install electric appliances when they’re ready, using government and utility incentives. With hydrogen blending, homes and businesses would have to use a lower-quality gas whether they want it or not, safety and health risks be damned.

The California Public Utilities Commission plays a critical role protecting customers from utility investments that lock in unjustifiable rate increases. Ultimately, the Orange Cove pilot is nothing more than an expensive waste of customer money with no near-term benefit and minuscule contribution toward California’s climate efforts.

Advertisement

The mountain of scientific literature against hydrogen blending, lessons learned by other regulators and communities rejecting similar pilots, and the voices of Orange Cove residents should be enough to slam the door on this would-be boondoggle.

Dan Esposito is a manager in the nonpartisan think tank Energy Innovation’s fuels and chemicals program.

Continue Reading

Trending