Energy Shift: Impact to European energy of Ukraine war

Plus: EU to spend US$20B covid cash on renewables; HSBC targets emissions from oil and gas; carbon capture investment taking off

Hi Everyone,

Start with my comments and the feature stories, then give the rest of the headlines a quick scan. 

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Thanks and have a great week!
Peter


Observations & Comments

I’ve tuned into nightly news this week to watch the Ukraine situation unfold (yes, I still have cable). So check out the first feature story to hear from Nat Bullard and Peter Tertzakian. I am pretty picky about the opinions I post. Too often they have an agenda, but in this case they help us look to history to understand how this war will impact the future of European energy investment and policy.

Again, there are a lot of stories with big numbers, but I thought I’d highlight an important one that might otherwise easily be missed: the formation of the Canadian Council for Sustainable Aviation Fuels. See the second Feature Story. This is strategic move and one that has the prospect of positioning Canada well for a future where flying and net-zero ambitions coincide. Kudos to Geoff Tauvette for his leadership in standing up this new organization. What is needed next: government leadership to support growing sustainable aviation fuels in Canada – using policy to drive the scaling up of production to bring the costs down.

For the third Feature Story, I encourage you to watch David Dodge’s video featuring the work by Peter Amerongen to “wrap old homes in a parka” to make them net-zero. And where did this technology come from: the Dutch of course! David puts out lots of great explainer videos – consider subscribing to his YouTube channel.

I include a few stories that point to the importance of software, something I’ve said many times. It is helping unlock insights, efficiencies and enabling creative new ways to save money. For some companies, it keeps them close to the customer and enables full value chain capture for improved returns. Blockchain for smart contracts, machine learning, Internet of Things and more are creating new opportunities to change the way we interact with energy.

Feature Stories

The Shock of the Old, the Promise of the New | Nathaniel Bullard – Bloomberg Green
[Comment] Nat Bullard offers his perspective on how Russia’s invasion of Ukraine is likely to shape the future of European energy policy and investment. More heat pumps, more LNG imports and more renewables. For those those that can be done reasonably fast, like more LNG imports, there are limits to supply. As Peter Tertzakian wrote recently, “Unfortunately, there are not a lot of near-term options for supplying cheap, clean, safe and secure energy.” See: The dream of cheap, clean, safe and secure energy is being put on hold.

Common to both Nat and Peter is what can be learned from the 1970’s oil shock.


Airlines, industry join to spur sustainable jet fuel growth in Canada | JWN

A new organization aims to spur Canadian development of sustainable aviation fuel, a technology advocates say is the airline industry’s best shot at reducing its greenhouse gas emissions. The Canadian Council for Sustainable Aviation Fuels (C-SAF) was launched Wednesday by a consortium of 60 airlines operating in Canada, both domestic (Air Canada, WestJet Airlines Ltd) and foreign-owned (British Airways, Cathay Pacific).


VIDEO: Sundance EnergieSprong – Deep Energy Retrofitting 59 Homes to Net-Zero
By David Dodge of Green Energy Futures

Buildings are responsible for 30-40% of greenhouse gas emissions. Edmonton builder Peter Amerongen is tackling this head-on by piloting the Dutch idea called EnergieSprong. New walls and roofs are built in a factory and craned onto old energy-inefficient homes transforming them all the way to net-zero. It’s the largest project of its kind in North America as 59 homes are being transformed to net-zero energy.

Deep Energy Retrofitting 59 Homes to Net-Zero (9 min.)


Finance & Sentiment

Chile Set to Be First Nation to Sell Sustainability-Linked Bond | BNN Bloomberg
Chile is assessing investor interest in a potential sale of bonds tied to its sustainable goals, a move that would make it the first nation to issue sustainability-linked bonds. The country is planning to sell $2 billion in environmental, social and governance bonds overseas this month, adding to the $4 billion raised in that format already this year.

Apollo Sees Opportunity to Invest Over $100 Billion in Energy Transition, Industrial Decarbonization | ESG Today
Global alternative investment manager Apollo announced today the launch of a new sustainable investing platform focused on financing and investing in the energy transition and decarbonization of industry. The new platform will invest across asset classes, and will span Apollo’s equity, hybrid and yield businesses

HSBC to Slash Financed Emissions from Oil & Gas Clients by 34% by 2030, 75% for Power & Utilities | ESG Today
Global banking and financial services company HSBC announced today new financed emissions reduction targets for the carbon intensive Oil & Gas and Power & Utilities sectors, initiating the next step on its stated strategy to align its financing activities with the goals of the Paris Agreement and move to net zero by 2050.

U.S. Clean Energy Draws Record $105 Billion in Private Investment | BNN Bloomberg
Private investment into U.S. clean-energy assets reached a record $105 billion last year as the country added an unprecedented amount of renewable-power capacity.

Technology

Hydrogen 

Open Hydrogen Initiative calls for transparent accounts of emissions | Upstream
The Gas Technology Institute (GTI), the National Energy Technology Laboratory (NETL) and S&P Global Platts have launched the Open Hydrogen Initiative (OHI) to make the environmental impacts of hydrogen production more transparent.

Australians back Texas plan for 60GW green “Hydrogen City” | RenewEconomy
An Australia-backed plan to develop a world-leading renewable hydrogen hub in Texas, in the US, is targeting production of more than 2.5 billion kilograms of green hydrogen a year from 60GW of solar and wind.

SoCalGas begins developing 100% clean hydrogen pipeline system | Utility Dive
Growing demand and political support have prompted SoCalGas to begin developing a pure hydrogen pipeline, but environmentalists question whether California water supplies are adequate.

Carbon Capture 

Fracking Billionaire Harold Hamm Plans To Reverse Course And Pump Millions Of Tons Of Carbon Into The Earth | Forbes
Continental Resources will invest $250 million in a project to capture and inject 8 million tons of carbon dioxide a year into the rocks beneath North Dakota. Publicly traded Continental (80% owned by Hamm and his children), will invest $250 million toward a $4.5 billion project to capture 8 million tons per year of carbon dioxide (the most copious fossil fuel by-product), move it across five states via a 2,000-mile pipeline and inject it into a highly porous and permeable rock formation more than a mile beneath North Dakota farmland.

Neptune Energy aims to store more carbon than it emits by 2030 | World Oil 
Neptune Energy announced its aim to go beyond net zero and store more carbon than is emitted from its operations and the use of its sold products by 2030. The company is currently progressing two carbon capture and storage (CCS) developments in the Dutch and UK sectors of the North Sea that could see it store more than 9 million tons of carbon dioxide (CO2) emissions per year for third parties by the end of this decade. That would exceed its projected direct emissions (Scope 1) and emissions from the use of its sold products (Scope 3).

Chevron announces investment in Carbon Clean | Carbon Clean
Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), announced it has made a new investment in Carbon Clean, a global leader in cost-effective industrial carbon capture.

Exxon to Build $400 Million Wyoming Carbon-Capture Project After Delay | BNN Bloomberg
Exxon Mobil Corp. reached a final investment decision on expanding a carbon capture facility at LaBarge in Wyoming with the $400 million project expected to start up by 2025.

Eni signs deals with 19 companies for carbon storage in UK project | Reuters
Italian energy group Eni said it had signed a total of 19 agreements with companies to capture and store their carbon emissions as part of its HyNet North West project in the UK.

Inpex set to build giant carbon capture hub in Australia | Energy Voice
Japan’s Inpex has confirmed it aims to lead an effort to build one of the world’s largest carbon capture and storage (CCS) facilities near Darwin, Australia, as it strives to hit its Net Zero 2050 pledge and decarbonise its business.

£80 million to support Scottish carbon capture hub | Scottish Government
Financial backing of up to £80 million is being offered to help the Scottish Cluster carbon capture project accelerate its effort to help Scotland’s just transition to net zero.

The Grid 

The Netherlands’ Friesland and Gelderland regions reach maximum grid capacity | pv magazine
Grid bottlenecks are increasing in the northern Netherlands and solar project developers will see fewer chances to build PV facilities there.

Fortescue strikes deal with Queensland for green hydrogen transmission link | RenewEconomy
Fortescue Future Industries has secured support from the Queensland government to connect two proposed green hydrogen projects to the grid so that they can access supplies of renewable electricity.

AEP to spend $38B over 5 years on transmission, distribution, renewables | Utility Dive
[Excerpt] Over the next five years starting this year, American Electric Power (AEP) expects it will spend $38 billion on capital investments, including $14.4 billion on transmission infrastructure, $10.4 billion on distribution systems and $8.2 billion on utility-based renewable energy projects.

Buildings / Software 

GridPoint Closes $75M Strategic Investment from Goldman Sachs and Shell Ventures | GridPoint
GridPoint, a leader in building energy management and optimization technology that decarbonizes commercial buildings and drives grid modernization, today announced it has closed a $75 million strategic capital raise led by the Sustainable Investing Group within Goldman Sachs Asset Management (Goldman Sachs), with additional participation by Shell Ventures.

Schneider snaps up solar marketplace EnergySage, aims to electrify homes | Canary Media
With backing from conglomerate Schneider Electric, EnergySage will expand its comparison-shopping platform from rooftop solar to a broad range of home electric equipment.

UrbanChain and PPAYA partner to match green generators and corporate customers | Current±
Peer-to-peer power exchange company UrbanChain and renewable price comparison platform PPAYA have announced a new partnership. It will enable PPAYA to negotiate fixed power prices directly between renewable energy generators and corporate customers.

Energy Storage 

Construction begins on 3.5GWh Gran Canaria pumped hydro plant | Energy Storage News
Construction has started on a 3.5GWh pumped hydro plant in Gran Canaria, Spain, and progress has been made on two other projects totalling 18GWh of storage in mainland Spain and Nevada, US.

Enel X deploying 40MWh behind-the-meter battery storage system at Imperial Oil refinery in Ontario | Energy Storage News
The energy transition arm of Italy’s Enel Group has started construction on a 20MW/40MWh behind-the-meter (BTM) battery energy storage system (BESS) at Imperial Oil’s petrochemical complex in Sarnia, Ontario, Canada.

Enel to build 1.6 GW/6.6 GWh of storage under Italy’s capacity market scheme | pv magazine
The planned storage capacity will come from 20 projects selected by Italian grid operator Terna through the latest capacity market auction. Half of them will be located on the island of Sardinia.

Capacity Market contracts awarded to more than 2GW of battery storage in UK and Italy | Energy Storage News
The award of contracts to 1GW of battery storage was the “biggest news” to emerge from the latest round of Capacity Market auctions held in the UK, according to energy consultancy EnAppSys.

World’s largest off-grid battery project reaches financial close | pv magazine
A consortium of developers led by ACWA Power has secured financing for the Red Sea project, on the west coast of Saudi Arabia, which is set to feature a 320MW solar array and a 1.3GWh off-grid battery.

Primergy picks contractors, suppliers for US$1.2bn Gemini solar-plus-storage project in Nevada | Energy Storage News
Quinbrook’s solar and storage developer Primergy has chosen the equipment and construction partners for its US$1.2 billion Gemini Project in Nevada, US, which will have a 1,416MWh battery energy storage system (BESS).

 

Solar and Wind 

Barbados to host 50MW/128 MWh solar-hydrogen-battery facility | pv magazine

View of the Renewstable Barbados (RSB) project.  Image: Hydrogène de France (HDF)

The complex will combine a 50MW photovoltaic plant with 128MWh of long-term green hydrogen storage and batteries. The solar part is described by the company as an agrivoltaic plant that will host a herd of 1,830 sheep.

US offshore wind auction for NY Bight is final, attracts a record $4.37B in bids [Update] | Electrek
On January 12, Secretary of the Interior Deb Haaland announced that the Bureau of Ocean Energy Management (BOEM) would hold an offshore wind energy auction for more than 488,000 acres in the New York Bight. It’s now complete, and the auction achieved $4.37 billion in high bids. It’s a huge leap forward for the fledgling US offshore wind industry

Polysilicon price reaches $39.3/kg — the highest since 2011 | pv magazine
The price of polysilicon last week reached its highest level since 2011 and, according to Chinese module manufacturer JinkoSolar, there are no visible signs that it could drop this year, as predicted by several analysts.

Thailand’s CK Power set to double in size through 2.8GW renewables investment | pv magazine
One of Southeast Asia’s biggest generators of renewable electricity, Thailand’s CK Power, is set to double in size over the next three years after announcing plans to add 2.8GW of new renewable electricity generation, including a ten-fold increase in its solar capacity.

Oil giant Shell buys half share in one of Australia’s biggest wind farm developers | RenewEconomy
Global oil giant Shell has bought a half share in one of Australia’s biggest wind project developers. The company announced on Tuesday that Shell Energy Operations, a wholly owned unit, had agreed to buy a 49 per cent share of Australian wind farm developer WestWind Energy Development, which has a 3GW project pipeline across Victoria, New South Wales and Queensland.

US coal giant unveils giga-scale solar and battery storage plans | RenewEconomy
United States coal giant Peabody announced this week the launch of a new joint venture, R3 Renewables, which will focus on developing 3.3GW worth of solar PV and 1.6GW worth of battery storage capacity over the next five years.

EU member states to spend €18bn of Covid cash on renewables | pv magazine
The 22 nations which have had their “recovery and resilience” spending plans approved by the European Commission are set to devote billions to clean energy facilities, with the cash set to be disbursed in three payments to the end of next year.

 

Transportation 

Major milestone reached as Gogoro produces its 1 millionth swappable EV battery | Electrek

Time flies when you’re making revolutionary batteries capable of changing the world’s transportation landscape. Since launching in 2015, Gogoro has expanded from a local electric scooter producer to a worldwide leader in swappable battery technology.

Einride purchases 200 Class 8 battery-electric trucks from BYD to be deployed in the US | Electrek
BYD has announced that Swedish freight technology company, Einride, has purchased 200 of its 8TT battery-electric trucks – the company’s largest heavy-duty BEV sale outside of Asia. The BYD electric trucks will be built in the US and delivered to Einride over the next 12 months to support its fleet customers stateside. Einride will then integrate its Saga holistic operating system into the electric trucks to support US fleet customers in transitioning, managing, and streamlining their vehicle electrification.

Paris’s great experiment will ban cars in much of the city, instead opting for bikes, scooters, legs | Electrek
In a bid to clean up the city and reduce the chokehold of traffic congestion, Paris plans to ban cars from much of the historic part of the French capital.

Ford splits off EV business into new Model e division, leaves ICE cars with the blues | The Driven
US auto giant Ford has decided to split off its electric vehicle division, bestowing it the coveted “Model e” name it prevented Tesla from using for its Model 3.

CP and CN set sights on putting first zero-emission locomotives into operation | Electric Autonomy
After both companies announced their first forays into the market last year — CP choosing hydrogen fuel cell, CN buying battery-electric — they are now readying plans to put their pilots into service in late 2022 and 2023..

Renewable Fuels 
Chevron to Buy Biofuel-Maker Renewable Energy Group for $3.1 Billion | Bloomberg via Yahoo Finance
Chevron Corp. agreed to buy green diesel producer Renewable Energy Group Inc. for $3.1 billion in the biggest low-carbon deal of Chief Executive Officer Mike Wirth’s four-year tenure.

 

Circular Economy 

Electric-Car Battery Recycling Kicks Off in California | BNN Bloomberg
Redwood Materials Inc., the startup founded by former Tesla Inc. Chief Technical Officer J.B. Straubel, is launching its battery-recycling efforts in California. Ford Motor Co. and Volvo Group are the first automakers to join the program.

The UN plastics treaty: Everything you need to know | edie
The UN has today (2 March) concluded its latest Environment Assembly conference in Nairobi, with the agreement of terms for a global treaty to stop plastic pollution making headlines. Here, edie rounds up what – precisely – the treaty entails. Ultimately, attendees from 175 nations agreed on a text which covers the full lifecycle of plastic, from production to waste management. It also covers plastics of all types and sizes, from large pieces of abandoned fishing gear, to nurdles and microplastics.

UN agrees to create world’s first-ever plastics pollution treaty in a blow to big oil | Reuters via CNN
[Excerpt] Any treaty that puts restrictions on plastic production, use or design would impact oil and chemicals companies that make raw plastic, as well as consumer goods giants that sell thousands of products in single-use packaging. This would also have a significant impact on the economies of major plastic-producing countries, including the United States, India, China and Japan.

Policy

B.C. government rules out carbon tax freeze or price cap amid record-breaking gas prices | Global News
The B.C. government is vowing to take action against record-breaking gas prices, but says freezing carbon tax increases or capping gas prices aren’t on the table.