Weekly Update

Energy Shift: CNRL aspires to net zero

Posted onAuthorPeter Koning

Plus: new oil sands mining carbon competitive with US; Ford & VW pair up as does Toyota & BYD

Hi Everyone,

Wow, that felt like a long break from Energy Shift, hey? With some time off work, you’ll see my hobby reading didn’t stop. Quite the collection of stories to pick from depending on your interest.

You’ll see I’m bragging up the oil sands this week and for good reason. I think many hold a view of this sort of energy production that is not in step with reality. If that’s you, I want to invite you to consider what Suncor and CNRL have to say about their accomplishments. Canadians ought to be proud of the performance improvements that have been made in the last 10 years. That said, the job is not done and there are many dedicated people working this. So after listening to the podcast and reading the related stories, tell me what you think.

Please do keep sharing this around to others who may be interested and encourage them to subscribe.

Thanks,

Peter

Innovation Energy: Oilsands step up to take on clean tech challenge | Financial Post

Comment: this is worth a read for sure. There are a lot of misconceptions about oil sands.

Excerpts:

  • Indeed, the domestic oil patch is by far the largest spender on clean technology in Canada, accounting for 75 per cent of the $1.4 billion spent annually, according to a study that Global Advantage Consulting Group Inc. conducted for the Clean Resource Innovation Network.
  • The intensity of upstream emissions from the Canadian oilsands has declined by 20 per cent since 2012 “and could fall another approximately 20 per cent over the coming decade,” according to a September 2018 study by IHS Markit. “On a full life-cycle basis, this would bring the industry closer to the U.S. average.”
  • The study, which described oilsands crude as “perhaps the most scrutinized source of crude oil in the world,” noted that many oilsands plants are already emitting at or below the average intensity for oil pumped in the United States.

Suncor: Oil Sands GHG intensity that is on par with the average refined barrel in the US | JWN Energy

Comment: Yet another proof point, this time from Suncor’s CEO Mark Little that newer oil sands mining projects are carbon competitive with the US average.

Excerpt: “When you go and extract carbon out of the barrel and change the signature and reduce greenhouse gas emissions, it actually changes the world. It gets better,” he said, referencing the work of producers like Suncor to reduce emissions from oilsands production.

For example, the oil produced at Suncor’s new Fort Hills mine has GHG intensity that is on par with the average refined barrel in the United States thanks to paraffinic froth treatment technology, which Little has called “a different kind of finishing step.”

CNRL aspires to net zero emissions; says oil sands is no longer high cost or high carbon | ARC Energy Research Institute

Comment: Peter Tertzakian and Jackie Forrest of ARC Energy Research Institute interview Steve Laut, Executive Vice Chairman for Canadian Natural Resources Limited to dispel outdated notions of oil sands environmental and economic performance in their latest podcast. Even if you just listen to the first 13 minutes of this ~ half hour program, it’d be worth your time.

Noteworthy too is CNRL’s ambition to achieve net zero emissions on upstream production. I’m impressed…and I don’t impress easily.

The tax man cometh: How might the government solve the riddle of EV taxation | Current

Comment: I have to say, I don’t like any of the options put forward by the authors. By focusing on electricity used, they miss the connection between actual road use by a vehicle that produces the wear and tear on road infrastructure. But first, a bit of background. Governments collect taxes on fuel to help pay for road infrastructure. Electric vehicles use the roads, but governments haven’t yet found a good way to have EV owners help pay for them. Principles that should guide EV taxation: administratively simple, economical to implement and has tight linkage to road wear and tear. Heavier vehicles are worse than light ones for example. While this is UK focused, various states have looked at flat annual rates, some pricier than others. Anyone have a good idea on this?

Visualizing the varied world energy projections from NGOs and oil companies | Axios

Excerpt: Here are some high-level takeaways from the comparison:

  • The studies agree that absent strong climate efforts, consumption grows “20–30% or more through 2040 and beyond, led largely by fossil fuels,” notes RFF president Richard Newell and colleagues Daniel Raimi and Gloria Aldana.
  • That’s driven largely in the global “east” — that is, Asia-Pacific, Africa and the Middle East — while consumption in the global “west” is largely flat.
  • Renewables surge, but without more ambition on climate, they “primarily add to, rather than displace, fossil fuels.”

Bending the line: How better design can transition a linear economy to a circular one | GreenBiz

Excerpt: Patagonia is an exemplary company when it comes to designing products for the long haul. In his memoir “Let My People Go Surfing,” Patagonia founder Yvon Chouinard wrote, “As individual consumers, the single best thing we can do for the planet is to keep our stuff in use longer.” To encourage the repair rather than replacement of their products, Patagonia has a garment repair facility in Nevada, an archive of most fabrics and trims they have used, and online repair guides for their goods. The company wants customers to be “owners” rather than “consumers,” and Chouinard emphasized the difference. “Owners are empowered to take responsibility for their purchases — from proper cleaning to repairing, reusing, and sharing. Consumers take, make, dispose and repeat — a pattern that is driving us toward ecological bankruptcy.”

BYD, Toyota Enter Agreement to Jointly Develop Battery Electric Vehicles | Toyota

Comment: it has been a long time since I’ve seen a big corporate player use the term ‘global warming’ to frame their impetus for electrifying transport. Toyota only recently embraced battery electric vehicles, having previously focused on hybrids and hydrogen. Now that they’re catching up on EVs, they also need to update their language to use ‘climate change’ instead.

Excerpt: To curb global warming, both BYD and Toyota seek to reduce CO2 emissions by promoting the widespread use of BEVs. To accomplish these goals, both companies believe there is a need to put aside their rivalry and collaborate; therefore, the two companies have agreed to jointly develop BEVs.

All the other stories I thought were interesting…

Energy Storage

  • Australia’s first compressed air energy storage system gets development approval | RenewEconomy
  • $1B Montana pumped storage hydro project secures funding | Utility Dive
  • Rocky Mountain Power proposes 600-battery apartment building among trio of Utah DSM projects | Utility Dive
  • New York regulators assess potential for storage to replace peaking units in the state | Utility Dive
  • Hybrid theory, in practice: energy storage as key to Australia’s energy ‘revolution’ | Energy Storage News
  • Negative? How a Navy veteran refused to accept a ‘no’ to his battery invention | TechCrunch

Solar (and Storage)

  • Los Angeles solicits record solar + storage deal at 1.997/1.3-cents kWh | Utility Dive
  • Coal and gas on notice, as US big solar and battery deal stuns market | RenewEconomy
  • NV Energy Announces ‘Hulkingly Big’ Solar-Plus-Storage Procurement | Greentech Media
  • Two more US utilities make major gas, solar and storage plans | Energy Storage News
  • TVA 20-year plan includes up to 14 GW new solar, 5.3 GW storage | Utility Dive

Wind

  • Tilting of windmills could lead to performance gains, study finds | RenewEconomy
  • Vattenfall wins 760MW zero-subsidy Dutch tender for offshore wind | RenewEconomy
  • Scotland has produced enough wind energy to power its homes twice over | CNBC
  • New York Tops NJ with Plans for Offshore Wind | New Jersey Spotlight

Transportation

Oil & Gas

Other

  • Shell sets blockchain in its sights with LO3 investment | Current News
  • What makes Starbucks’ latest clean energy transaction unique | GreenBiz
  • Reforest an area the size of the US to help avert climate breakdown | RenewEconomy
  • A New Energy Paradigm Must Confront the Old | BNEF Opinion
  • UK to charge hundreds of climate change activists | AP News
  • B.C.’s Carbon Engineering lands $25m from Ottawa | JWN Energy
  • How a Climate Scientist Got Disinvited From a Shell Conference | The Intercept

Review: 25 mph Horizon electric scooter offers full suspension for just US$649 | Electrek

With shipping to Canada that brings the price tag to CAD$1149. But a nice machine and cheaper than many e-bikes.