Plus: Net zero pledges from Santander, Citi, FedEx and TransAlta; $2.75B for electrifying transport in Canada
Hi Everyone,
As always, if you only have time to read a little, start with my comments and scan the rest of the headlines at your leisure.
Though you are scattered across the globe, you are still among a relatively small group of people who get this. Know someone that would appreciate getting this? Encourage them to subscribe.
Have a great couple weeks!
Peter
Comments
I signed up for a free trial to Rethink Energy, based out of the UK. Each week they issue a 40 page briefing, which I admit I never read in full. Their latest includes a projection that electric vehicle (EV) sales in 2035 (just 15 years away) will reach 68 million or about 80% of cars sold, with a cumulative installed base of 532 million EVs. To get a sense of what this would mean for oil demand, energy commentator Peter Tertzakian recently noted how oil consumption dropped by only 20% at the very depths of the COVID lockdown last April – equivalent to a “simulation of what would happen if one-third of the world’s cars and 95% of airplanes and were suddenly converted to electric propulsion.” On one hand, it shows just how deeply embedded in our economy oil use really is. On the other hand, it is the post card from the future for what to expect in reduced demand for transportation fuels. I’ve heard it said that oil sands operations here in Canada are essentially in the transportation business, as most of the production is refined into transportation fuels. So signposts in the transport sector are especially important to the oil sands and by extension to Alberta’s and Canada’s economy.
This week, we see some big moves in the policy arena (scroll to the bottom) – Canada announcing it will invest $2.75 billion over five years in public transit systems and switch them to cleaner electrical power, including supporting the purchase of zero-emission public transit and school buses. Meanwhile VW is accelerating its plans to shift to EVs, and Volvo announced it will completely phase out internal combustion engines and make only electric vehicles by 2030. The parade of these types of announcement just keep getting longer. As I asked in my last post, how will all the batteries be made affordably – and not just for EVs, but for all those big utility batteries (see related story under Energy Storage) as well?
Pivoting to software and data analytics, I often point to the way these are being put to work by smart players to achieve better profit margins as we move through the energy transition. If you’re interested in this area, have a read of the article below. It’s just one example of a growing list.
From Brooklyn to the South Pacific, One Platform Finds Distributed Energy Opportunity Everywhere | GTM
The lush island nation of Samoa and the densely packed urban neighborhood of Brownsville, Brooklyn may seem to have little in common. Yet they are both at the forefront of some of the most cutting-edge clean energy projects in their respective geographies.
VW ID.4 first drive: For the millions, not millionaires | Electrek
We finally got the chance to get behind the wheel of VW’s ID.4 electric CUV this week. This is 36 hours with the 1st Edition RWD, and it was mostly during a winter snowstorm in New York. But we still had time to give it a proper drive and get some initial thoughts to see if VW has a huge hit on its hands.
Consumers & Finance
[Spain’s largest bank] Santander Joins Lenders Pledging Net Zero Emissions by 2050 | BNN Bloomberg
Banco Santander SA pledged to support the goals of the Paris Agreement on climate change and achieve net zero carbon emissions by 2050, including client emissions resulting from its financing, advisory or investment services
Shopify founder buys into Bill Gates-led clean tech fund | BNN Bloomberg
Abigail Johnson, chief executive officer of Fidelity Investments, and Shopify Inc. founder Tobias Lütke have joined as new investors in Breakthrough Energy Ventures, the clean-tech fund led by Bill Gates.
Occidental says low-carbon business profits could match oil | Reuters
Occidental Petroleum Corp expects its low-carbon business to generate earnings equal to its oil and gas production business in the coming decades, Chief Executive Vicki Hollub told analysts on Tuesday.
Oil executives expect crude demand to climb, even as renewables are in vogue | Reuters
Oil company executives at CERAWeek by IHS Markit were adamant on Monday that crude demand will rise over the coming decade and that the fossil fuel will remain a crucial part of the energy mix even as renewables draw increasing attention.
New Citi CEO commits bank to net zero financed emissions target on first day in role | Business Green
Firm joins Morgan Stanley, Bank of America, and JPMorgan Chase in pledging to reduce its operations and activity in line with global climate goals. Citigroup has become the latest major investment bank to commit to net zero financed emissions, after its brand new chief executive announced plans to reduce the emissions of the bank’s operations and investments to net zero by 2050.
Europe’s Biggest Banks Face New Green Asset Ratio Disclosure | BNN Bloomberg
Europe’s biggest banks face new rules to disclose how much of their business contributes to climate change. The “Green Asset Ratio,” announced by the European Banking Authority on Monday, would be a key metric to show if a firm is shifting away from financing fossil fuels and toward renewable energy.
Alberta utility TransAlta vows to be carbon neutral by 2050 as it notes $167M loss | CBC
Company converting its power generation from coal to natural gas, retiring Edmonton-area thermal coal mining. Power generator TransAlta Corp. says it has set a goal to be carbon neutral by 2050 and to cut greenhouse gas emissions to 60 per cent below 2015 levels by 2030.
Technology
Hydrogen
Shell in Germany seeks to speed up drive to go green | Reuters
Royal Dutch Shell in Germany aims to produce aviation fuel and naphtha made from crops and renewable power and to increase to commercial scale an electrolysis plant that makes fossil-free hydrogen, as it seeks to move away from crude oil.
Plug Power plans North America’s largest green hydrogen plant | Bloomberg via JWN
Plug Power Inc. will build the continent’s biggest green hydrogen plant in New York state, as the company once known for selling forklifts aggressively moves into producing the clean-energy fuel.
green Steel
Spotify Billionaire Ek Among Investors in Green Steel Startup | Bloomberg via Yahoo Finance
A green steel startup that will build a plant in northern Sweden has drawn investors including Spotify Technology SA’s founder Daniel Ek, just months after he invested in a battery maker in his home country.
German steel giant Thyssenkrupp plans 500MW green hydrogen plant | RenewEconomy
German industrial engineering and steel production giant Thyssenkrupp will work with German energy company Steag are planning a 500MW hydrogen electrolysis plant intended to power steel production.
Carbon Capture
Japan’s Mitsui to invest in UK carbon capture project | Reuters
Japanese trading house Mitsui & Co Ltd said on Wednesday it would invest in the development of a carbon capture and storage (CCS) project in Britain.
Exxon outlines plan to expand carbon capture efforts | Axios
Exxon on Wednesday said the company sees a $2 trillion “addressable market” in carbon capture and storage by 2040, and argues the company has strong expertise that positions it well.
Shell turns to forests and the earth to soak up its emissions | Reuters
Royal Dutch Shell set out plans on Thursday to boost the use of nature-based carbon offsets and carbon capture and storage (CCS) technology, two climate solutions in their infancy but seen crucial to controlling global warming.
Energy Storage
Japanese company unveils high capacity solid-state battery | Electrek
Japanese industrial manufacturer Hitachi Zosen has developed a solid-state battery claimed to harness one of the highest capacities in the industry. Additionally, the Osaka-based company states this new solid-state battery can operate under a larger range of temperatures. It will soon be tested in industrial machinery and space.
The battery invented 120 years before its time | BBC Future Planet
At the turn of the 20th Century, Thomas Edison invented a battery with the unusual quirk of producing hydrogen. Now, 120 years later, the battery is coming into its own.
US energy storage market shatters quarterly deployment record | Wood Mackenzie
According to Wood Mackenzie and the U.S. Energy Storage Association’s (ESA) latest ‘US Energy Storage Monitor’ report, 2,156 megawatt-hours (MWh) of new energy storage systems were brought online in Q4 2020. This is an increase of 182% from Q3 2020, making Q4 the new record quarter for U.S. storage.
electrification
BNEF: At least $14tn must be spent on power grids worldwide or risk ‘bottleneck’ | Current News
At least $14 trillion (£9 trillion) must be invested in the grid worldwide by 2050 to support an evolved power system, according to new analysis from BloombergNEF (BNEF).
Solar and Wind
Iberdrola to spend €150bn trebling its growing wind and solar empire | RenewEconomy
Iberdrola, the Spanish renewable energy colossus that now owns Australian wind farm operator Infigen, will spend €150 billion growing its renewables capacity almost threefold to 95 gigawatts by 2030.
Tesla Solar Roof coming to Canada and Europe as soon as this year, says Elon Musk | Electrek
Tesla is preparing to expand its Solar Roof product to Canada and Europe, which could happen as soon as this year, according to CEO Elon Musk.
[Portugal] EDP Renovaveis raises 1.5 billion euros to help fund investment | Reuters
EDP last week announced plans to invest 24 billion euros ($29 billion) in green initiatives, mostly renewable power and grids in the United States and Europe, over five years, as it seeks to bring forward its push to go “completely green” by 2030.
[Australia] Network owner Spark ramps up generation plans with 1.5GW of solar, wind and battery | RenewEconomy
Poles and wires owner Spark Infrastructure has continued its foray into generation, purchasing development rights to a string of new renewable energy projects with a collective capacity of 1.5 gigawatts. The announcement comes after the company opened its first 100 megawatt solar farm last year. Spark says it has earmarked $1.15 billion to invest in new solar, wind and battery projects, and is even having “a look at” green hydrogen.
Shell Buys Virtual Power Plant Operator Next Kraftwerke | BNN Bloomberg
Royal Dutch Shell Plc agreed to buy Next Kraftwerke, the operator of a virtual power plant that brings together clean-energy capacity across Europe to sell the electricity into the market. Next Kraftwerke remotely connects and manages more than 10,000 off-grid units — including solar, hydropower and bioenergy facilities — across eight countries, the Hamburg-based company said Thursday in a statement.
Transportation
Canada announces $2.75 billion investment in zero-emissions buses and charging infrastructure | Electrek
The recently announced investment from the Government of Canada includes zero-emissions public transit and school buses. The full $2.75 billion will be funded over the next five years starting in 2021. The Government of Canada expects the investment to promote jobs and economic recovery in a net-zero emissions future.
VW accelerates shift to electric cars and will have to do so again | Electrek
The main announcement is that VW accelerated its targets for the mix of all-electric vehicles in its sales:
- By 2030, the company will double the share of e-cars in Europe from the previously planned 35% to 70% of sales.
- In the US and China, the share of electrically powered vehicles is to rise to 50% by 2030.
“No future” for ICE: Volvo will sell only pure electric cars by 2030 | The Drive
Swedish-Chinese carmaker Volvo has joined a growing number of global car manufacturers to embrace the transition to all-electric vehicles, announcing that it will sell only fully electric cars by 2030.
British Gas makes largest UK commercial EV order with Vauxhall | Vauxhall
British Gas today announces that it is ordering 2,000 new all-electric Vivaro-e vans from Vauxhall and has introduced plans to never purchase another combustion engine vehicle. As part of its commitment to become a net zero organisation, Centrica, owner of British Gas, has committed electrify its 12,000 strong operational fleet by 2025, five years earlier than originally planned.
Lion Electric to bring zero-emission school buses to California’s largest district | Electrek
Lion Electric announced an order to bring its all-electric school buses to the Los Angeles Unified School District (LAUSD). The Quebec-based electric urban vehicle manufacturer will initially provide 10 LionC buses. This helps establish Lion as a leader in electric school buses throughout North America.
FedEx pledges to be carbon neutral by 2040 | GreenBiz
Global logistics giant FedEx on Wednesday announced a goal to be carbon neutral by 2040. The plan includes a $2 billion investment across electric vehicles, clean energy for operations and a new academic center with Yale focused on capturing carbon.
Circular Economy
Coca-Cola Unveils Its New Sustainable Paper Bottles Ready for Testing | My Modern Met
It’s no secret that plastic pollution poses a difficult problem for the planet. As consumers demand more sustainable options, brands are forced to make more responsible decisions and some big changes to their products. Coca-Cola had to reconsider its business practices when it was found to be the worst polluting brand in the world multiple years in a row. Following through with earlier promises, Coca-Cola has now released a prototype of their sustainable paper bottles that might help them drop down the list and become less harmful for the environment.
Burger King to ditch all single-use plastic in the UK | edie
Burger King UK has made a new commitment to phase out all single-use plastic by 2025, replacing packaging with reusables and with recycled or certified plastic-free alternatives.
Policy
Canada announces $2.75 billion investment in zero-emissions buses and charging infrastructure | Electrek
The recently announced investment from the Government of Canada includes zero-emissions public transit and school buses. The full $2.75 billion will be funded over the next five years starting in 2021. The Government of Canada expects the investment to promote jobs and economic recovery in a net-zero emissions future.
U.S. readies $40 billion in loans to boost clean energy – official | Reuters
U.S. Energy Secretary Jennifer Granholm said on Wednesday she is ready to reactivate her department’s loan program office that went mostly unused in the last four years and has more than $40 billion in funds to boost the transition to clean energy.
More states follow California’s lead on vehicle emissions standards | The Hill
An increasing number of states are looking to follow the precedent set by California and adopt stricter vehicle emissions standards as the Biden administration appears poised to green light those efforts. The Virginia legislature this past week passed legislation to toughen its emission rules, and similar proposals are in the works in Minnesota and Nevada.
Bank of England told to put zero emissions target at centre of monetary policy | RenewEconomy
The UK government has told the Bank of England it must prioritise transitioning to a net zero economy when setting monetary policy, in a move that enshrines sustainability in the central bank’s official remit.
The City Where Cars Are Not Welcome | The New York Times
HEIDELBERG, Germany — Eckart Würzner, a mayor on a mission to make his city emission free, is not terribly impressed by promises from General Motors, Ford and other big automakers to swear off fossil fuels.
Pennsylvania looks to boost electric vehicle sales | The Sacramento Bee
Gov. Tom Wolf’s administration has begun drafting a regulation that would require automakers to offer electric cars for sale in Pennsylvania as a way to cut emissions of greenhouse gases and pollutants that cause lung problems, it said Friday.
Hawaii Electric blows past 2020 target on road to 100% renewable energy | RenewEconomy
Hawaii’s largest utility, Hawaiian Electric, says it has blown past its mandated 2020 renewable energy target, reporting that 34.5% of its electricity generation mix was made up of renewable energy sources such as wind and solar.
Threshold met for referendum on $1B utility corridor project | AP News
Maine election officials on Monday certified that opponents of a $1 billion electricity transmission corridor have enough valid signatures to move forward with a referendum.
Britain to introduce greener gasoline at petrol stations by September | Reuters
Britain is set to introduce E10 gasoline, a motor fuel blended with 10% renewable fuels, by September this year, a move that could cut annual CO2 emissions by 750,000 tonnes, the government announced on Thursday.
U.S. oil industry lobby weighs support of carbon pricing -source | Reuters
The American Petroleum Institute (API) is weighing endorsing a price on carbon emissions, a major shift after long resisting mandatory government climate policies, a source familiar with the decision making said.
Nova Scotia to offer $19 million in rebates for electric cars, home energy efficiency | CTV News
Nova Scotia Premier Iain Rankin has announced $19 million in rebates to help people buy electric vehicles and to assist low-income families in making their homes more energy efficient. In a news release, the province says $9.5 million will be used for the rebate program for new and used electric vehicles, plug-in hybrids and e-bikes. The rebates will provide $3,000 per new vehicle, $2,000 for used vehicles and $500 for e-bikes and will be in addition to the $5,000 federal rebate available for new electric vehicles.
Biden Executive Order will put battery materials at heart of US climate technology ‘leadership’ | Energy Storage News
With the US having rejoined the Paris Accord on the climate crisis last week, President Joe Biden has now signed an Executive Order which identifies the importance of mitigating risks in the supply chain for “large capacity batteries”.