Mercedes Mullins
New Jersey is the most densely populated state in the US, with nearly 1,300 residents per square mile. Despite its small size, the state plays a significant role in supplying energy to the entire Northeast region. While New Jersey has no fossil energy reserves, it is a hub for the distribution of petroleum products. Natural gas and nuclear energy have fueled more than 90% of the state's electricity generation since 2011. The state also has three operating crude oil refineries, including the largest asphalt producer on the East Coast. New Jersey is exploring a shift in its energy policy, potentially phasing out fossil fuel power plants and transitioning to renewable energy sources.
| Characteristics | Values |
|---|---|
| Fossil fuels | Petroleum products, natural gas, coal, oil |
| Fossil fuel projects | South Jersey Gas pipeline, New Jersey Natural Gas’s Southern Reliability Link, the PennEast Pipeline, Meadowlands Power Plant |
| Fossil fuel power plants | Nuclear power plants, incinerators |
| Fossil fuel companies | Exxon |
| Fossil fuel divestment | New Jersey ranked 12th in the nation for small-scale solar capacity in 2023 |
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What You'll Learn
New Jersey's fossil fuel power plants
New Jersey is the nation's 14th-largest natural gas consumer. In 2023, natural gas and nuclear power fuelled 91% of New Jersey's total electricity generation. Natural gas and nuclear energy have fuelled more than 90% of New Jersey's total electricity generation every year since 2011. In 2022, roughly 51.3% of the energy generated in New Jersey came from natural gas plants, with nuclear power accounting for 43.5% of the remainder.
New Jersey is also the 13th-largest petroleum-consuming state, with the transportation sector accounting for about 80% of the petroleum consumed in the state. Despite this, New Jersey uses less petroleum per capita than all but seven other states.
New Jersey is the most densely populated state in the US, with nearly 1,300 residents per square mile. Although the state has no fossil energy reserves, it plays a major role in supplying energy to the entire Northeast region. Shipping terminals on the Delaware River and at the New York-New Jersey harbour have extensive connecting pipelines, rail, and storage terminals, making the state a hub for the distribution of petroleum products throughout the northeastern states.
In recent years, there has been a push for New Jersey to divest from fossil fuels and transition to renewable energy sources. The New Jersey Sierra Club has joined the Divest NJ Coalition to encourage the New Jersey State Investment Council (SIC) to divest from fossil fuels. In addition, New Jersey lawmakers are exploring a shift in the state's energy policy that could phase out almost all of its fossil fuel power plants in the coming decades. A proposed constitutional amendment would bar the creation or reactivation of fossil fuel power plants, allowing existing plants to run through the end of their life cycles. However, this proposal has faced opposition from business groups, petroleum producers, and engineers, who argue that the transition would be too sudden and could impact New Jersey's energy needs.
Despite the push for divestment, there are concerns that New Jersey is investing in new fossil fuel infrastructure projects that could increase greenhouse gas emissions. These projects include the South Jersey Gas pipeline, the Meadowlands Power Plant, and several others.
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Natural gas and nuclear energy
New Jersey does not produce natural gas and does not have any reserves or storage fields for it. The state is, however, the nation's 14th-largest natural gas consumer. In 2023, natural gas accounted for 49% of New Jersey's total electricity generation, with seven out of ten households using it as their primary home heating fuel. The residential sector accounted for about 31% of the state's natural gas consumption, while the commercial and industrial sectors accounted for 21% and 12% respectively. A small amount of natural gas was also consumed by the transportation sector.
In addition to natural gas, nuclear energy is a significant source of electricity in New Jersey, providing 42% of the state's total electricity generation in 2023. Together, natural gas and nuclear energy have fueled more than 90% of New Jersey's total electricity generation since 2011. The state has two nuclear power stations, both operated by PSEG Nuclear. One of them, the Oyster Creek Nuclear Generating Station, permanently ceased operations in 2018. It was the nation's oldest operating nuclear power reactor at the time. Following the closure of Oyster Creek, New Jersey provided financial support to the state's three nuclear power reactors at its two remaining nuclear power plants to prevent their closures.
Despite being the most densely populated state in the nation, New Jersey has no fossil energy reserves. However, the state plays a major role in the supply of energy to the entire Northeast region. Shipping terminals on the Delaware River and at the New York-New Jersey harbor have extensive connecting pipelines, rail, and storage terminals, making the state a hub for the distribution of petroleum products. There are over a dozen new fossil fuel infrastructure projects in New Jersey, including the South Jersey Gas pipeline, New Jersey Natural Gas' Southern Reliability Link, and the PennEast Pipeline. These projects have raised concerns among environmental advocates, who argue that they will increase greenhouse gas emissions and expose residents to toxic air pollutants.
To address these concerns, New Jersey lawmakers are considering a proposed constitutional amendment that would phase out almost all fossil fuel power plants in the state. The amendment would allow existing plants to operate until the end of their life cycles. Additionally, there is a push toward small modular reactors, a smaller and less maintenance-intensive type of nuclear reactor. New Jersey is also investing in renewable energy sources, with plans to construct one of the largest food waste-to-renewable natural gas projects in Linden, scheduled to come online in 2026.
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Fossil fuel divestment
New Jersey is the most densely populated state in the US, with every county considered urban. The state plays a major role in supplying energy to the entire Northeast region. While New Jersey has no fossil energy reserves, it is the nation's 14th-largest natural gas consumer. Natural gas and nuclear energy account for almost all of the state's electricity net generation.
Despite this, New Jersey has been exploring a shift in its energy policy towards phasing out fossil fuel power plants. The state has taken steps to cut state pension fund investments in fossil fuels, with legislators voting to end investments in 200 of the largest fossil fuel companies. The Fossil Fuel Divestment Bill, introduced by Senators Bob Smith and Linda Greenstein, aims to divest the state pension fund from fossil fuels. However, the New Jersey Treasury Department has opposed the bill, citing potential lower returns for the fund.
Clean-energy advocates and organisations like the New Jersey Sierra Club have been pushing for fossil fuel divestment. They argue that investing in fossil fuels is detrimental to the state's future and that New Jersey should join lawsuits against fossil fuel companies for their role in climate change. Additionally, they highlight the financial underperformance of the fossil fuel sector compared to the overall economy.
Opponents of divestment, including some in the business community, argue that reducing investment in fossil fuel companies exploring new technologies is short-sighted. They believe that the state will continue to rely on fossil fuels, particularly natural gas, for decades to come.
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Fossil fuel infrastructure projects
New Jersey is the most densely populated state in the US, with nearly 1,300 residents per square mile. Despite being the fourth-smallest state by land area, it plays a significant role in supplying energy to the entire Northeast region. The state has an extensive network of shipping terminals, pipelines, rail, and storage terminals, making it a hub for distributing petroleum products. However, New Jersey does not have any fossil energy reserves.
In recent years, there has been a growing movement in New Jersey to divest from fossil fuels and transition to renewable energy sources. The state has no natural gas reserves or storage fields, and it is exploring a shift in energy policy that could phase out its fossil fuel power plants. The New Jersey Sierra Club and the Divest NJ Coalition have advocated for the state investment council to stop investing in fossil fuels and protect its finances and the environment from the declining fossil fuel industry.
Despite this, New Jersey has several fossil fuel infrastructure projects underway, including the South Jersey Gas pipeline, New Jersey Natural Gas' Southern Reliability Link, the PennEast Pipeline, and the Meadowlands Power Plant. These projects are expected to increase greenhouse gas emissions by over 32% and expose residents to toxic air pollutants.
To address this issue, organisations like Empower NJ have called for an immediate moratorium on all new fossil fuel infrastructure projects. They suggest that financial resources would be better invested in renewable energy projects like wind and solar power plants, which would help meet the state's energy needs while reducing greenhouse gas production. Additionally, they propose removing the cost cap on renewable energy projects and implementing a full ban on fracking in the Delaware River Basin and New Jersey.
New Jersey has made some progress in renewable energy, ranking sixth in the nation for small-scale solar capacity in 2023. The state also has a community solar program that provides households with access to solar power and offers financial incentives for solar installations. However, there is a recognition that the transition to renewable energy will take time and political will, and a plan is needed to execute this transition effectively.
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Crude oil refineries
New Jersey does not have any crude oil production or reserves, but the state has three operating oil refineries. These refineries have a combined capacity of about 451,000 barrels per calendar day and produce a wide range of refined petroleum products.
One of these refineries is the Paulsboro refinery, the largest producer of asphalt on the East Coast. The refinery works in combination with the Delaware City refinery to process a wide variety of crude oils and produce finished products including gasoline, heating oil, and aviation jet fuel. The Paulsboro refinery specifically manufactures Group I lubricant base oils.
Another notable refinery in New Jersey is the Bayway Refinery, which is operated by Phillips 66. The Bayway Community Advisory Panel, sponsored by Phillips 66 and four other member companies, hosts approximately 35 citizen members from four local communities: Linden, Elizabeth, Rahway, and Staten Island. These members are selected due to their interest in plant operations and related topics, and they are associated with various groups, including civic, educational, emergency response, environmental, healthcare, business, and municipal government organisations.
The Linden Terminal, located on the New Jersey side of the New York-New Jersey Harbor, is one of the ten largest petroleum terminals in the United States, with a storage capacity of 4.3 million barrels. Several major petroleum product pipelines cross New Jersey, including the Colonial Pipeline, the nation's largest refined product pipeline, which has its northern terminus in Linden.
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Frequently asked questions
Fossil fuels are natural fuels, such as coal and petroleum, that are formed in the ground from the remains of dead plants and animals.
Yes, New Jersey uses fossil fuels. Natural gas and nuclear energy fuel more than 90% of New Jersey's electricity generation.
Fossil fuels used in New Jersey include natural gas and petroleum products.
Yes, New Jersey has several fossil fuel power plants. However, there are efforts to phase out these power plants and transition to renewable energy sources.
Examples of fossil fuel infrastructure projects in New Jersey include the South Jersey Gas pipeline, New Jersey Natural Gas' Southern Reliability Link, and the PennEast Pipeline.
