Plus: home batteries set to boom in Australia; Sweden bans EV from 2030; Disasters change thinking
Hi Everyone,
Just two assignments for you this week: 1) read the REUTERS article about the oil industry under siege, my take and answer my questions; 2) forward this on to someone you think would be interested.
Enjoy skimming the rest and have a great week!
Thanks,
Peter
‘Under siege’, oil industry mulls raising returns and PR game (Read this one from REUTERS)
A rather unfortunately negative slant to this title that suggests oil companies just don’t ‘get it’ and are directing efforts in the wrong places. Yet there are some realities to be faced: how does the oil and gas industry meet growing demand (forecasted to grow another 1.4 million barrels in 2019) and meet evolving expectations to meaningfully demonstrate it is part of the solution to climate change, not just a problem. Shell is already showing the way in taking responsibility for not just its own emissions, but those of consumers as well.
Even if one were to start with its own emissions, it is challenged to deliver ever higher returns to investors, when returns from renewables are a fraction of those achievable with low cost production of oil and gas. Shell, BP, Total, Equinor and others (including Suncor) are investing in renewables, electrification of transport (EV charging stations), and energy storage. The proportion of overall capital spend has been small initially, with aspirations for growth. Big integrated companies (those that produce oil and gas, but also refine and sell directly to consumers at gas stations) can rationalize protection of market share as transportation electrifies. I can’t help but think their returns are being diluted somewhat.
But what should upstream producers (those that only explore for and produce oil and gas) do? Are they too accountable for consumer emissions? How do they show they are not just part of the problem, but helping with the solution to climate change as well? I want to hear what you think.
Electric Vehicles
- Toyota and Panasonic formed a joint venture to produce prismatic lithium-ion batteries, solid-state batteries, and next-generation batteries for electric vehicles – Greentech Media
- Petro Canada starts deploying its own electric vehicle chargers at gas stations – Electrek
- Tesla still hasn’t delivered on its promise for a $35,000 Model 3 – Electrek
- Honda is expected to showcase in March the car it intends to move to mass production later this year – Electrek
- Ford confirms all-electric F-Series pickup truck coming – Electrek
- GM is considering making all-electric GMC SUVs and pickup trucks – Electrek
- Australia’s NSW government commits millions to electric vehicle push – The Driven
Comment on the Toyota/Panasonic deal: Toyota had a history of more emphasis towards hydrogen, with a more recent opening of the door to EVs. There nothing like securing supply of batteries to really show they’re commitment to electrification, interestingly with mention of solid state batteries. It’s also a big move for Panasonic, who until now was tied up supplying batteries to Tesla.
Solar, Storage
- Google announced it is building its two largest ever solar farms in Tennessee and Alabama, with a combined capacity of 413 MW of power, from 1.6 million panels.
- Solar-Plus-Storage Beats Combined-Cycle Gas in Jordan and Morocco – Greentech Media
- CellCube announces sales of Vanadium Redox Flow Batteries to Germany and Czech Republic. Never heard of these before? Check out this YouTube video.
Surveys said…
- 73% of Americans believe global warming is happening, with concern growing – Smart Cities Dive
- A YouGov survey found 1 in 9 Americans would consider buying an EV. Another study by McKinsey&Company showed nearly half would consider an EV, with the high cost being a concern – Utility Dive
- Two-thirds support a carbon tax if the proceeds were used for environmental restoration and more than half support it if the funds were used towards research and development for renewable energy programs and public transportation. AP & NORC
How Long Before Renewable Energy Causes Disruption?
This is another great podcast from Peter and Jackie at ARC Energy Research Institute. Granted, it is a very Alberta centric view though it helps to understand the current context. Importantly, two thirds of power bills here has nothing to do with how much electricity used. So you can see how hard it is to make a case for displacing a portion of the remaining one third with renewables under a decent payback period, and even more challenging with storage.
On one of the point raised: the reason we are not seeing more solar in Alberta is due to the cost of labour to install panels. To this, I saw that Canada’s federal government is contributing C$15.3 million towards a C$49 million 23MW solar farm in southeast Alberta, enough to power about 7400 homes.
BP invests in Chinese electric vehicle charging platform
Excerpt: BP (BP.L) said on Thursday it had invested in Chinese start-up PowerShare, which links electric vehicle drivers to charging points and helps power suppliers balance distribution. REUTERS
Sweden passes bill to ban new ICE car sales by 2030
Comment: Another bold move, in this case by politicians who seem unfazed by the potential uneven trade exposure with the EU neighbours to the south. 11 years is not that far away.
Excerpt: Sweden is joining Scandinavian neighbours Denmark and Norway in the push to ensure a transition to zero emissions transport, passing a bill last week that will see the sale of new petrol and diesel cars banned from 2030. …more from The Driven
Blockchain Goes Big: 55,000 Rooftops Eyeballed For Peer-To-Peer Solar Trading – CleanTechnica
We don’t often see news like this from Japan. The opening up of the market is helping to introduce competition from new players, including the application of new technology, like a block-chain enabled pilot to link 100 solar rooftops, with ambitions for much more.
Australia to Be Largest Residential Storage Market in 2019
Excerpt: BNEF expects over 70,000 Australian households will install batteries this year – driven by A$147 million in state government subsidies, as well as low-interest loans and demand response schemes. If the federal opposition wins the election this year, a further A$200 million will subsidize another 100,000 household batteries from 2020. Learn more in this report excerpt. …more from BNEF
Corporate America Is Getting Ready to Monetize Climate Change – Bloomberg
Business risks related to climate change are increasingly a mainstream concerns for banks, investors and insurance companies, yet there are also opportunities, according to Bloomberg.
Run Faster—Your Treadmill Might Be Generating Electricity – Bloomberg
What is old is new again. My mom lived through the German occupation of Holland in World War II, taking turns riding a bike to power a light to do evening homework. Now, modern exercise equipment is being configured to do the same – feed power to your home.
Hi Peter. Just signed up for your newsletter. Great stuff.
As to the challenge you mentioned that two thirds of people’s power bill every month is non-related to energy use, making the economics of installing a home solar system marginal, one option to help in that regard is to purchase an EV at the same time and displace the money you are spending on gas every month. It’s not for everyone, because to charge your EV probably will mean keeping it at home during the peak sun hours and doing most of your driving in the evenings. Also, then you have to consider the cost of the EV (not cheap, although the resale market for EVs is getting bigger all the time). But at least then the monthly savings is in the hundreds of dollars as opposed to $30-$40.