Plus: $30M from CRIN to promising tech; CPP & Blackrock to stay in oil and gas; France investing in hydrogen and nuclear; Biden makes moves
Hi Everyone,
A fascinating sweep of stories to share again in this issue. It is getting harder to short-list the most meaningful stories across such a wide set of topics. I hope you don’t find this too overwhelming. Start with my comments and just skim the headlines for what interests you.
Have a great couple weeks.
Thanks,
Peter
Observations & Comments
This issue has a larger number of stories in the finance and policy sections.
In the finance world, the tension between financing the transitioning away from fossil fuels and the financing necessary to support oil and gas companies to lower emissions is becoming more visible. Yet it is the lack of investment in oil and gas over the past couple years that is driving up energy prices. I believe there is a balance here – to maintain the tension on oil and gas to lower emissions AND invest in new low carbon energies. Money will be needed for both for some time yet, so simple calls to divest oil and gas do not reflect the realities of our energy system.
In the policy world, we had a bit of a dry spell after COP26, but governments are back at it again. Be sure to skim the stories in that section to understand the global sweep of actions and investments being taken by governments. A notable one I placed under ‘Hydrogen’ is France’s plan to inject $4.5 billion into that technology and others for decarbonizing heavy industry. While I’m on hydrogen, check out the scale of the green hydrogen investment led by ArcelorMittal (a steel producer) in Spain. Also not to be missed in the policy arena is France’s plan to build six nuclear reactors and the US Department of Energy boosting nuclear with $6 billion. Duke and Xcel, two US utilities are getting off coal while the state of Illinois is doing likewise – all with pivots that include renewables.
Feature Story
Significant emissions reduction anticipated from new technologies via CRIN Low Emission Fuels and Products Technology Competition | JWN
CALGARY, Alberta, Feb. 16, 2022 (GLOBE NEWSWIRE) Today, CRIN is announcing four projects identified for funding through its $80 million CAD oil and gas technology competitions aimed at accelerating solutions that have the potential to contribute significantly to achieving Canada’s 2050 climate targets and position Canada as a global leader in clean, sustainable, diverse energy systems.
Early analysis by proponents suggests that the four projects announced today are anticipated to result in combined accumulative emissions reduction of 55.43 megatonnes (MT) of CO2 equivalent (CO2e) by 2033. Combined project value is estimated at $106 million CAD, including CRIN funding of over $30 million CAD.
Finance & Sentiment
Canada’s Biggest Bank Faces Shareholder Vote on Climate Standards | Financial Post
Royal Bank of Canada shareholders will vote on whether the bank should tighten its standards for sustainable finance, action inspired by a 2021 pipeline financing deal that was criticized for greenwashing and general concern over lax standards for so-called sustainability-linked debt.
Canada Pension Plan [$55B] Pledges Net-Zero, but Won’t Drop Fossil Investments | The Energy Mix
The fund manager for the Canada Pension Plan has committed to make its portfolio net-zero by 2050 but said it would not be making any blanket divestments. CPPIB said in December that investing is critical to help decarbonize high-emitting sectors like agriculture, chemicals, cement, conventional power, oil and gas, steel, and heavy transportation CP writes. It said those sectors would need to decarbonize both to reduce emissions and to sustain economic growth, stability, and a responsible energy transition.
EY to hire 1,300 UK professionals for new ‘Carbon’ arm | edie
EY is launching a new sustainability service business and is planning to hire 1,300 people in the UK to staff its operations – equivalent to around one-tenth of its current UK employee base.
BlackRock’s Larry Fink Meets Big Oil and Its Foes to Navigate Climate Fight | BNN Bloomberg
[Excerpt] Working with oil and gas companies is important to help develop decarbonization technologies and BlackRock, which oversees more than $500 billion in sustainable investments, doesn’t have a policy of divestment, Fink has said. BlackRock also has said that fossil-fuel exploration remains a necessary pursuit, at least for now, and Fink warned in a July speech that surging oil prices could threaten the transition to net-zero, as that will result in a greater dependence on coal in some emerging economies.
BlackRock Commits to Guide Investors Through Net Zero Transition | ESG Today
In a new letter to clients, investment giant BlackRock pledged to guide and advise investors through the net zero transition, outlining a broad approach to protect portfolios from climate-related risks and to identify and invest in opportunities arising from the multi-decade global decarbonization drive.
Facing Texas pushback, BlackRock says it backs fossil fuels | Reuters
At the risk of being dropped from Texas pension funds, BlackRock Inc has ramped up its message that the world’s largest asset manager is a friend of the oil and gas industries.
Net-zero corporate commitments largely over-reliant on carbon offsetting, report finds | edie
An analysis of 25 corporates’ net-zero commitments has found that they cover, on average, just 40% of annual greenhouse gas emissions, with the likes of Unilever, Nestle and BMW Group named among the worst offenders.
Finance giants team up to launch digital carbon offset trading platform | edie
NatWest Group, BNP Paribas and Standard Chartered are among the coalition of major financial institutions co-launching a new digital platform for trading carbon credits for offsetting.
More than three in five Britons worried about the source of their energy | Current±
A new research by OnePoll, on behalf of Statkraft, showed that 63% of Britons are concerned whether the energy they use comes from renewable sources.
Technology
Hydrogen
France injects $4.5bn into hydrogen and other ‘innovative technology’ to decarbonise heavy industry | Recharge News
France has announced plans to spend €5bn ($5.7bn) in “direct aid” for the deployment of decarbonisation solutions for heavy industry — €4bn of which will be spent on “innovative technologies” such as hydrogen and carbon, capture, utilisation and storage (CCUS).
ArcelorMittal leads world’s largest-scale H2 project in Spain | EuroMetal
ArcelorMittal says it has agreed to partner with Spanish energy companies Enagás and DH2 Energy, as well as one of the main producers of fertilisers – the Fertiberia Group – to create the world’s largest integrated renewable and competitive hydrogen hub. The start of production is scheduled for 2025. Total installed capacity should reach 9.5 gigawatts of solar power and 7.4GW of electrolysers by 2030, ArcelorMittal explains.
German green hydrogen developer inks €200 million to supply fuel for maritime, aviation projects | IHS Markit
Green hydrogen producer Hy2Gen AD has secured €200 million ($227.3 million) from a variety of investors to construct facilities to deliver this clean fuel for use in a variety of aviation, maritime, ground transport, and industrial applications in Europe and North America.
Carbon Capture
CCUS: Petronas partners with Japan’s MOL on liquefied CO2 transportation | Upstream
Malaysian state-run giant Petronas is teaming up with Japan’s Mitsui OSK Lines (MOL) to collaborate on the transportation of liquefied carbon dioxide, as part of the carbon capture, utilisation and storage (CCUS) value chain.
GE-led CCUS project gets $5.8MM US govt grant for Alabama gas power plant | Trade Arabia
[Excerpt] GE Gas Power will work with Southern Company, Linde, BASF, and Kiewit to develop a detailed plan for integrating carbon capture technologies with a natural gas combined cycle plant to capture approximately 95 percent of carbon dioxide emissions generated.
Nuclear
France plans six new nuclear reactors as part of climate goals | AP NewsPresident Emmanuel Macron is preparing to unveil France’s plans to build new nuclear reactors as part of the country’s strategy to reduce the greenhouse gas emissions that cause global warming. French electricity giant EDF, which is over 80% owned by the French state, has submitted a plan to build six of the pressurized water reactors for an estimated 50 billion euros ($57 billion).
DOE Advances $6 Billion Nuclear Energy Program | Hart Energy
The U.S. Department of Energy (DOE) said on Feb. 11 it is seeking input from utilities, communities and advocates as it develops its new program to boost struggling nuclear power plants with $6 billion in credits.
Grid
First poles erected in $2.4bn transmission link to create “renewables superpower” | RenewEconomy
The first transmission poles have been installed in the 900km transmission link between South Australia and NSW that will help accelerate the transition to a grid based around wind, solar and storage. The $2.4 billion Project EnergyConnect is the first of a number of main transmission lines proposed by the Australian Energy Market Operator and various state authorities as they build up the infrastructure needed to support a grid transitioning to 100 per cent renewables.
Energy Storage
Powin agrees to supply 5.8GWh of battery storage to developers for projects in US and Taiwan | Energy Storage News
Powin’s modular Centipede BESS platform will be used for the projects. Image: Powin Energy.
Powin Energy has signed framework agreements with four developers for 5.8GWh of battery storage solutions to be delivered in the 2022-2024 timeframe.
Ayana, Greenko partner on 6GWh of pumped-hydro storage | pv magazine
Ayana Renewable Power (Ayana), a Bengaluru-based renewable energy platform, has partnered with Hyderabad-based Greenko Group for 6GWh of pumped-hydro storage capacity. Greenko Group will offer the capacity from a pumped-hydro storage project it is developing in the Indian state of Andhra Pradesh.
Solar and Wind
Spain largest PPA market in Europe last year with almost 4 GW of deals | pv magazine
According to Swiss consultancy Pexapark, around 11 GW of power purchase agreements were closed in Europe last year. For 2022, the analyst expects shorter deals and the presence of more new entrants.
Fortescue plans huge 5.4GW wind, solar and battery storage hub in Pilbara | RenewEconomy
Andrew Forrest plans massive 5.4GW renewables hub in Pilbara to power his mines and further his green hydrogen dreams. The up to 5.4GW project, proposes to generate electricity from up to 340 wind turbines (totalling more than 2GW) and a solar farm, up to 3,333MW, alongside a battery energy storage system sized up to 9,100 MWh.
State regulators approve Xcel plan that shifts from coal to nuclear energy, renewables | Star Tribune
Company wants to close its coal plants by 2030, extend the life of its Monticello reactor by 10 years and add new solar and wind farms.
Duke plans to exit all coal by 2035, double renewables | Duke | S&P Global
Duke energy Corp. intends to close its remaining 11 coal plans by 2035, representing 16GW of capacity.
Indian hydropower producer to deploy 10GW of PV over next 5 years | pv magazine
SJVN Limited, an Indian state-owned hydropower producer, has revealed plans to develop 10 GW of solar power projects over the next five years.
Norway to launch 1.5 gigawatt offshore wind tender | Reuters
Norway will launch later this year its first tender for bottom-fixed offshore wind turbines in the southern North Sea, planning to develop 1.5 gigawatt of electricity that will supply the Norwegian mainland, the country’s government said on Wednesday [Feb. 9].
Australia boasts $830bn pipeline of wind, solar, hydrogen and storage projects | RenewEconomy
Australia boasts a pipeline of nearly $1 trillion of large scale renewable projects, encompassing technologies including onshore and offshore wind, solar PV, hydrogen electrolysers and storage, according to a new analysis.
Iberdrola to Invest Over $10 Billion to Develop Offshore Wind in Massachusetts | ESG Today
Global energy and electricity provider Iberdrola announced today plans to invest more than $10 billion in the development of three offshore wind complexes in Massachusetts.
Transportation
Volta Trucks announces €230 million in Series C funding to support start of production for 16-ton Volta Zero truck | Electrek
As Volta Trucks works toward start of production for its all-electric Zero truck later this year, it has gained the funding to get it over the finish line. The zero-emission truck manufacturer announced it has garnered an additional €230 million (~$260.6 million) in Series C funding. Furthermore, Volta Trucks’ 5,000+ soft pre-orders offer a potential revenue value of over €1.2 billion (~$1.4 billion).
Volvo Cars to invest over $1 billion to upgrade Swedish plant for its next generation of BEVs | Electrek
Volvo Cars has shared news that it plans to invest SEK 10 billion (~$1.09 billion) in its Torslanda manufacturing plant in Sweden, to deliver advanced production practices for its next generation of fully electric vehicles. This includes mega casting of aluminum body parts, a new battery assembly plant, and more.
Tesla expands access to Supercharger network to all electric cars at all stations in the Netherlands | Electrek
Tesla announced that it is expanding access to the Supercharger network for non-Tesla electric cars to all stations in the Netherlands. Tesla operates 36 Supercharger stations in the Netherlands covering the whole country.
Battery manufacturing prospects in Windsor grow with new $20-million innovation centre | Electric Autonomy
The R&D facility, bankrolled by a local subsidiary of auto parts giant Flex-N-Gate and the Ontario government, will house a team of scientists working on battery designs and chemistries that its founders hope will help bring a battery cell gigafactory to the province.
Circular Economy
Recycled Lithium-Ion Batteries Can Perform Better Than New Ones | Scientific American
[Excerpt] The researchers found that batteries they made with their new cathode-recycling technique perform just as well as those with a cathode made from scratch. In fact, batteries with the recycled cathode both last longer and charge faster.
Policy
Biden Allocates Over $9 Billion to Develop Clean Hydrogen Capacity in US | ESG Today
The Biden administration announced a series of actions on Tuesday aimed at advancing climate action in the industrial sector and helping foster clean manufacturing, helping manufacturers use clean energy, efficiency upgrades, and other innovative technologies to reduce emissions. Among the actions announced was the launch of $9.5 billion of investments targeting clean hydrogen initiatives
Biden announces $5 billion over 5 years for a nationwide EV charging network | Electrek
The US Departments of Transportation and Energy today announced that nearly $5 billion is earmarked for a national electric vehicle charging network under the new National Electric Vehicle Infrastructure (NEVI) Formula Program established by President Joe Biden’s Bipartisan Infrastructure Law.
EPA to expand California clean car authority — and the nation’s | Gov. Wind & Solar Energy Coalition
The Biden administration is preparing to reinstate California’s authority to set auto emissions rules that are more stringent than federal standards, taking a major step toward cutting transportation-related climate pollution and continuing to chip away at former President Trump’s environmental rollbacks.
California approves plan for more renewable power, batteries | Energy Now
California utility regulators this week approved plans to add more renewables and batteries to ensure the state has enough power resources over the next decade to keep the lights on and reduce greenhouse gas emissions. That plan comes after California last year was forced to rely more on natural gas for power generation after a severe drought and massive wildfires left the state with few other options.
Illinois to shut all fossil fuel plants by 2045 and invest $580M a year in renewables | Electrek
Governor JB Pritzker today signed the Climate and Equitable Jobs Act into law today. In the new bill signed into law, the Prairie State coal plant will be required to cut its emissions by 45% by 2038, and to close altogether by 2045.
UK Government to rollout CfD auctions annually to boost renewables deployment | edie
The UK Government has announced that the funding auctions through the Contracts for Difference (CfD) scheme will occur annually, rather than every two years, in a bid to boost the nation’s clean energy supply chain.
UK Government introduces £179m energy efficiency scheme for social housing | edie
The Government has today (7 February) unveiled a new £179m investment drive to improve the energy efficiency of social housing, in a bid to reduce emissions and cut back on spiraling energy costs for households.
France announces 100 GW solar target for 2050 | pv magazine
France has set a new target under which it will install 5GW of new PV capacity per year. [Comment] President Macron also signaled intent to address regulatory barriers to speed up development timelines as well as developing domestic solar supply chain capabilities.
India introduces green hydrogen policy | pv magazine
The Green Hydrogen Policy is designed to promote green hydrogen and green ammonia projects with provisions like a 25-year waiver of inter-state transmission system (ISTS) charges and ISTS connectivity priority for renewable energy capacity set up for the purpose.