Plus: Green hydrogen build-out in Spain; Carbon capture in Exxon’s $3B pledge; VW recycling batteries
Hi Everyone,
I hope this email finds you well. Not just physically, but mentally as well. The slower roll out of vaccines, the continuation of lock down measures and inability to connect with family and friends the way we’d like all add up to many of us finding this a challenge. Take time to reach out and make those check in’s and connections.
I encourage you to start with my comments and skim the other headlines. As always, continue to forward on to others you think would be interested and encourage them to subscribe.
Thanks and have a great couple weeks!
Peter
Observations, Comments & Questions
Automakers around the world are increasingly committing to going electric. For me, the stories that stand out from the past two weeks are the plans by GM and Ford to accelerate their plans and investments to electrify their vehicles. GM now says all models will be electric by 2035, embracing California’s plan to ban the sale of new gas-powered cars and trucks by 2035. Meanwhile, Ford with an equivalent plan to electrify its models by 2045, is nearly doubling its electric vehicle investment to $22 billion by 2025. Its popular F-150 truck will be available in an all electric version by mid-2022. See the related stories under “Transportation”. Other vehicles, like bus fleets are increasingly seeing the switch to electric, with more city transportation departments seeing the benefits. On the policy front, President Biden announced a plan to replace the entire 645,000 federal fleet with electric vehicles made in the US. (see “Policy” section)
Balancing all this ambition to electrify is the escalating competition for all the raw materials needed for the batteries. Not just in vehicles, but now also in home batteries to store rooftop solar and for ever-larger batteries utilities are installing to store solar power generated during the day and make it available during peak evening use. That is a lot of escalating demand for batteries happening simultaneously. Prices for nickel, copper and cobalt are all up substantially. This is sure to pinch already thin margins for electric car makers. Exactly how that will dampen their ambitions and temper EV adoption is the new question emerging.
Consumers & Finance
Norway Wealth Fund Dumps Oil Stocks Amid $10 Billion 2020 Loss | BNN Bloomberg
Norway’s sovereign wealth fund has sold its entire portfolio of companies focused on oil exploration and production, marking a major step away from fossil fuels for the investing giant.
BlackRock’s Larry Fink warns CEOs that ‘no issue ranks higher than climate change’ | edie
BlackRock’s chief executive Larry Fink has written to businesses to warn them that “no issue ranks higher than climate change” and that the current coronavirus pandemic serves as a “stark reminder” of the need to drastically combat climate-related risks. Fink’s annual letter to the chief executives of companies in which BlackRock invests in notes that a “tectonic shift” to sustainable investment is accelerating as nations and investors driver towards a net-zero economy.
Three NYC Pension Funds to Divest $4 Billion From Fossil Fuels | BNN Bloomberg
Three of New York City’s five public employee pension funds are divesting $4 billion from securities related to fossil-fuel companies. Pensions for teachers, school administrators and civil servants voted to divest their holdings, according to a statement Monday from Mayor Bill de Blasio, Comptroller Scott Stringer and retirement board trustees. Police and fire department pension funds haven’t voted to divest.
Technology
Hydrogen
Spain’s Endesa unveils ambitious plans for green hydrogen | PV Magazine
The Spanish power utility announced it wants to deploy 23 green hydrogen projects by 2024. The company plans to build around 340 MW of electrolyzer capacity. Spain’s largest utility, Endesa, a unit of Italian energy company Enel, has submitted to the Ministry for the Ecological Transition and the Demographic Challenge (Miteco) a plan to invest approximately €2.9 billion in green hydrogen projects on the Spanish mainland and the country’s extra-peninsular regions.
Home hydrogen storage start-up lands equity investor – and major battery order | RenewEconomy
The Australian start-up behind a hydrogen-based energy storage system targeting homes and businesses has secured a cornerstone investor, alongside a bulk order of its innovative hydrogen batteries that claim to offer three-times the storage capacity of comparable technologies.
13 hydrogen clusters secure seed funding to nurture Australia’s new green industry | RenewEconomy
More than a dozen hydrogen industry clusters are set to be created across Australia, with seed funding awarded to support growth and industry collaboration within the emerging green fuel industry. Each of the clusters has received between $75,000 and $250,000, sharing in a total of $1.75 million in funding, that will aid the required skills and expertise needed to establish a thriving green hydrogen industry in Australia, and to identify the necessary supply chain investments.
Carbon Capture
Exxon creates unit to commercialize carbon-reduction technology | Reuters
Exxon Mobil Corp has created a division to commercialize its technology that helps reduce carbon emissions, as the U.S. oil major looks to step up efforts against climate change amid rising pressure from investors and activists. The oil major said it would invest $3 billion on lower emission solutions through 2025.
Energy Storage
VW opens a recycling plant for batteries at the end of their lives | New Atlas
We’ve seen a number of automakers take steps to give their electric vehicle batteries a second life in highway charging stations or storage systems for the home, but at some point these deteriorating devices do reach the end of the road. Volkswagen has just opened a recycling plant for this very scenario, where it hopes to recover the raw materials from its fully depleted batteries, which can then be used to build brand new ones.
Guidehouse: Fluence ahead of Tesla in global utility-scale energy storage leaderboard | Energy Storage News
There are seven utility-scale energy storage system integrator companies that currently lead a global market poised for significant expansion, with Fluence and Tesla currently competing for the top spot, according to a new industry ranking report from Guidehouse Insights.
Solar and Wind
Spain renewable energy auction achieves record low wind price | RenewEconomy
In the first of the country’s new renewable energy auctions, Spain’s Ministry for Ecological Transition awarded over 3GW of solar and wind capacity, including over 2GW of solar PV and Europe’s lowest onshore wind energy bid at a price of €20/MWh. (CAD$31/MWh; USD$24/MWh; AUD$32/MWh)
Renewables overtake fossil fuels in Europe but must triple to reach carbon neutrality by 2050 | Current
Renewables have overtaken fossil fuels in Europe in what is being hailed as a “landmark” moment.Renewables officially overtook fossil fuel generation in three separate countries as well in 2020, with the UK – which had its greenest year ever with numerous renewables records set – Germany and Spain all celebrating the milestone.
Shell Agrees to Buy 51% Stake in Irish Floating Wind Project | BNN Bloomberg
Royal Dutch Shell Plc agreed to buy a 51% stake in an Irish project to develop a floating wind farm in the Celtic Sea. Simply Blue Energy’s Kinsale venture will develop the Emerald floating wind farm, with 300 megawatts of capacity initially and the potential to scale up to 1 gigawatts. The companies didn’t disclose the value of the deal.
Corporations purchased record 24GW of renewables in 2020 | RenewEconomy
Despite the absurdity and mountain of adversity that was 2020, corporations around the globe purchased a record 23.7GW of clean energy, led by the United States with companies purchasing 11.9GW.
Next three years will be huge for big wind and solar projects in Australia | RenewEconomy
Fully operational wind and solar in Australia’s main grid will almost double from today’s level in three years, adding an average of more than 500MW a month
Siemens Energy unit picked to install ‘next generation turbines’ at $9 billion offshore wind hub | CNBC
Siemens Gamesa Renewable Energy has been given the nod to supply and install turbines for the £6.5 billion (around $9 billion) East Anglia Hub, a major offshore wind development planned for waters off the east coast of England.
BP completes stake acquisition in offshore wind farms from Equinor | Power Technology
BP has completed a 50% stake acquisition in two offshore wind lease areas from Equinor for $1.1bn, as announced in September.
Total Eren, EDF reach fin close on 450-MWp Indian solar project | Renewables Now
Paris-based independent power producer Total Eren SA and EDF Renouvelables, of the Electricite de France SA group (EPA:EDF), have achieved financial close on a 450-MWp solar project in India.
Turkey Installed 4.8 GW Renewable Energy in 2020 | TAIYANG News
In 2020, the Turkish renewable energy capacity addition was highest for any single year in the country with some 4.8 GW installed, however half of this capacity was contributed by hydropower plants, according to the state run news agency Anadolu Agency (AA).
Transportation
GM plans to sell only zero-emission models by 2035 | BNN Bloomberg
General Motors Co. is promising to go green by making all of its global operations and vehicles carbon neutral by 2040, including selling only zero-emission models by 2035. The pledge is a bold embrace by the automaker of emission-reduction goals set by California.
Ford doubles electric vehicle investment to $22 billion through 2025 | Electrek
Ford announced today that it plans to almost double its electric vehicle investment to $22 billion through 2025 – raising the stakes in the race to electrification.
BP Says Its Electric Car Chargers Aren’t Profitable Yet | BNN Bloomberg
BP Plc isn’t yet turning a profit on its car-charging stations, but the U.K. oil giant expects that to change as more electric vehicles come onto market.
Shell to acquire UK’s largest electric vehicle charging network | Reuters
Royal Dutch Shell said on Monday it was acquiring the owner of the UK’s largest public electric vehicle charging network, ubitricity, for an undisclosed amount. The deal for the company that has over 2,700 on-street charge points in the country is expected to be completed late this year.
Boeing says it will deliver 100% biofuel planes by 2030 | Electrek
Boeing today announced that it will begin to deliver commercial airplanes capable of flying using 100% biofuel, or sustainable aviation fuel, by 2030. In order to power aircraft with biofuel, or fuel derived from living matter, Boeing will need to work with engine makers and change its aircraft systems, and also achieve safety certification by global regulators.
Circular Economy
We waste 1/3 of all the food produced in the U.S—here’s how to fix it | Fast Company
In 2019, more than a third of the food produced in the U.S.—worth around $408 billion dollars—wasn’t sold. While a small portion was donated, much of it went to waste. But by the end of the decade, the government aims to cut food waste in half. It’s a complex challenge, as waste happens at every step of the food system, from produce that isn’t harvested on farms to food forgotten in fridges.
Policy
Saudi Arabia Aims to Become the Germany of Renewable Energy | BNN Bloomberg
Saudi Arabia wants to emulate Germany’s success with renewable energy as well as pioneer the production of hydrogen. “We will be another Germany when it comes to renewables,” Energy Minister Prince Abdulaziz bin Salman said Wednesday at the Future Investment Initiative conference in Riyadh. “We will be pioneering.”
[Canada] Federal government procurement of solar electricity in Alberta | Dentons
In December 2019, the Government of Canada committed to using 100% clean electricity to satisfy the power requirements for all federal buildings in jurisdictions where available by 2022, and by 2025, in other locations where renewable power is less accessible. In furtherance of this mandate, on January 7, 2021, Public Services and Procurement Canada issued four requests for proposals (RFPs) as a first step to meet this target.
President Biden will make entire 645k federal vehicle fleet US-made electric | Electrek
President Joe Biden has just announced that he will replace the entire US federal fleet with electric vehicles made in the US. The US federal fleet consists of over 645,000 vehicles, according to the latest Federal Fleet Report. This includes 245k civilian vehicles, 173k military vehicles, and 225k post office vehicles.
Denmark secures backing for $34-billion clean energy island | Bloomberg via JWN
The government has secured broad political backing for Denmark’s largest ever construction project, a 210-billion kroner ($34-billion) manmade ‘energy island’ and hundreds of offshore wind mills that will deliver clean electricity and help the country achieve climate neutrality by 2050.