Plus: Shareholders vote down climate resolutions; BP poised to invest $10B in hydrogen; €1B coming for heat pumps; Norway targets 30GW offshore wind
Hi Everyone,
I’ll be taking a break for our May long weekend here, so watch for the next issue in a couple weeks. Continue to forward this on to others and encourage them to subscribe!
Thanks and have a great couple weeks,
Peter
Observations & Comments
Shareholders of oil and gas companies are rejecting shareholder resolutions calling for further-reaching climate targets. See stories for each company here: ConocoPhillips, Oxy and BP. Dutch activist shareholder Follow This recycled similar resolutions from last year. So the erosion in support compared to last year demonstrates the realization among investors that these companies are indeed pursuing pragmatic plans to address climate change. Nonetheless, in particular for upstream oil and gas companies that have no direct influence over final consumption, the tension will remain for how to address scope 3 emissions – those of the consumer.
Check out the rest of the feature stories and my related comments below. If you have to pick only one, read the Arcadia story.
Feature Stories
Investors bet big on energy data startup Arcadia | Green Biz
Does your company know exactly how much energy it uses? What efficiency incentives are available for its facilities? Where are the most beneficial sites for its clean energy investments? What tariffs are involved?
Answering such questions is table stakes for planning carbon emissions reductions and renewable power procurements, but getting accurate data from utilities is still remarkably difficult for one location, let alone multiple sites.
That’s the challenge addressed by data analytics company Arcadia, which is developing software to provide access to scads of commercial energy data. Its customers already include the likes of Ford Motor Co., along with climate tech powerhouses such as EnelX and Aurora Solar.
[Comment] This is one to watch. I encourage you to also check out Arcadia’s website. They just raised $200 million this week. It is another fine example of a point I’ve made over and over – that software is key to unlocking value in an ever increasingly connected energy system. Smart IoT devices are everywhere. Smart meters. Smart EV chargers. Smart thermostats, Smart water heaters. The list goes on.
India Can’t Afford Its Coal Addiction | Washington Post
Nothing makes you appreciate air-conditioning like high summer in India. Here in Delhi, temperatures are running over 100 degrees for much of the day, with two full months still to go before the cooling monsoon rains arrive. Unfortunately, just as everyone decided to crank up their ACs or at least their ceiling fans, electricity supply collapsed under the strain in large parts of the country.
This is not, sadly, a rare occurrence. It happens almost every summer and on other occasions when power demand spikes. There’s no clearer evidence that India’s electricity sector, dominated by coal-guzzling power plants and state-run utilities, simply isn’t up to the job. And the problem is only going to get worse: India has rapidly electrified in recent years and peak power demand has been growing between 8% and 10% a year.
The reasons for these successive power crises are almost always the same. Thermal power plants produce three-fourths of India’s electricity. But they can never seem to get their hands on enough coal.
[Comment] This one is worth a read for most of us, since we don’t usually get insights into the energy system of a place like India. Economies across Asia matter big time for their differential impact on emissions impacting climate change. The speed with which places like India electrify and decarbonize their economy matters. This article unpacks the very real issues acting as a brake on progress. Yet there are areas of hope. I’m seeing more stories of how there is growing demand for all those 2 and 3 wheeled vehicles to be electric, as one example.
Canada, industry in talks to cement future carbon price hikes | Reuters
The Canadian government is in talks with heavy industrial emitters about ways to ensure Ottawa’s planned carbon price increases will remain in place even if Prime Minister Justin Trudeau’s Liberal government is voted out of power. Federal Natural Resources minister Jonathan Wilkinson told Reuters most of the discussions have focused on “carbon contracts for differences.” These contracts set a price on tradable carbon credits, which heavy emitters can get if they reduce pollution. If the market price for the credit falls below the minimum in the contract, the government would make up the difference.
[Excerpt] Some heavy emitters such as oil sands producers say lack of pricing certainty has held them back from making significant investments in emission reduction projects like carbon capture and storage. They are also concerned that costly projects could be a waste of money if carbon pricing is scrapped in future.
[Comment] Canada has an opportunity here to follow the lead of other countries that have put the right fiscal framework in place to trigger industry investment. If you’re one of those people wondering why this is needed for oil sands for example, consider this: it starts with a premise that Canada can meet transition pathway demand for oil. Next, that oil production needs to compete on both emissions performance and cost. Carbon capture can help make oil sands not just carbon-competitive, but perhaps even out-compete others, Yet it is costly. But oil companies are making windfall profits you say. This is true all across the globe, including in jurisdictions where production is not exposed to carbon taxes like they are in Canada. So Canada is already disadvantaged for being a higher cost jurisdiction. Expecting companies to make multi-billion dollar investments in carbon capture here in Canada does not account for the fact that companies operating elsewhere are returning most of those windfall profits to shareholders. Shareholders of Canadian companies are expecting the same treatment and if they don’t get it, can invest elsewhere. This is a pretty hefty topic for a short comment, so drop me a note if you think there are aspects worthy of a follow-up.
NYC wants to take 25% of its street space away from cars in favor of a walkable/bikeable city | Electrek
Back when COVID-19 ravaged New York City and turned the city’s transportation needs upside down, significant portions of the road space were repurposed for non-car use. From bike lanes to public seating and urban parks, roads that previously saw gridlocked traffic were nearly instantly transformed into public spaces that benefitted a wider group of residents.
After being forced to realize the benefits of such repurposing of streets, the city is now asking, “Why shouldn’t it just stay that way?”
[Comment] I’ve been spending more time recently learning how important city zoning and proper urban design that enables walking and biking over driving everywhere. This is a prime example of cities realizing an alternative is possible. We need more to wake up to the reality that especially North American cities are entirely car-centric, whereas Europe offers models of urban design that is more pleasant in so many ways and is better for our health and our climate. An easy entry into this topic – check out the YouTube channel: Not Just Bikes
Finance & Sentiment
Companies worth more than $38trn now committed to science-based climate targets, with Europe leading the way | edie
More companies set approved science-based climate targets in 2021 than in any other year to date, with companies collectively representing $38trn of global market capitalisation now working with the Science-Based Targets Initiative (SBTi).
Moody’s Pledges to Cut Scope 1, 2 and 3 Emissions by 90% by 2040 | ESG Today
Information services and risk assessment firm Moody’s Corporation announced today a new commitment to cut greenhouse gas (GHG) emissions across its operations and value chain by 90% by 2040, compared to a 2019 base year.
Powering Net-Zero Pact: Energy giants sign collective commitments on social and environmental sustainability | edie
A coalition of companies from across the power value chain, collectively representing annual turnover in excess of £55bn, has been formed to accelerate the sector’s net-zero transition in a “fair and just” way.
Technology
Hydrogen
Enbridge, Humble Midstream to Develop Low-carbon Hydrogen, Ammonia Export Facilities | P&G Journal
Enbridge Inc. and Humble Midstream LLC, an EnCap Flatrock Midstream portfolio company, have announced the joint development and marketing of a low-carbon hydrogen and ammonia production and export facility which will be located at the Enbridge Ingleside Energy Center (EIEC), near Corpus Christi, Texas.
BP stake swoop to lead $36bn Asian Renewable Energy Hub green hydrogen mega-project: report | RECHARGE
BP is poised to take a major stake in the Asian Renewable Energy Hub (AREH), one of the planet’s biggest projects to produce vast amounts of green hydrogen from wind and solar, Australian media reported.
Egypt Strikes Deal To Produce 300,000 Tonnes of Green Ammonia Per Annum | Forbes
Egypt plans to produce 300,000 tonnes of green ammonia per annum in the Suez Canal Economic Zone (SCZone) as part of its wider green push.
Fort Nelson First Nation propose super green hydrogen plant | BIV
The Fort Nelson First Nation have partnered with Hydrogen Naturally Inc. (H2N) to explore a plan to develop a $1.2 billion “bright green” hydrogen production plant in Fort Nelson that would use wood waste as a feedstock, with carbon capture and storage or use.
Carbon Capture
UK Carbon Capture Startup Raises $150 Million to Scale Tech | BNN Bloomberg
A London-based startup that makes small, modular units to capture carbon emissions from smokestacks has raised $150 million from investors that include the venture arms of Chevron Corp., Saudi Arabian Oil Co., and Samsung Group. Carbon Clean Solutions Ltd. has tested its technology at more than 40 sites around the world, and says it can capture as much as 97% of carbon dioxide released by steel and cement factories and power plants.
Cement industry bets on carbon capture start-ups to help reach net-zero | edie
A trade body representing more than 40 of the world’s biggest cement and concreate companies has invested in five carbon capture, utilisation and storage (CCUS) innovators as part of its work to help the sector achieve net-zero emissions by 2050.
Renewable Natural Gas
North American biogas industry gets $2-billion infusion | S&P Global
The two largest landfill operators in North America have committed nearly $2 billion recently for new renewable natural gas (RNG) installations, indications that the fossil fuel substitute is overtaking production of electricity as the preferred end-use of the captured methane.
Billion-dollar bioethanol plant proposed for S.E. Calgary | Calgary Herald
Calgary-based Green Impact Partners is working on a $1-billion project that could reshape the future of Alberta energy.
Buildings
Beyond net-zero buildings: ‘Carbon-negative’ homes and a ‘net-positive’ logistics centre completed | edie
Developer St Modwen Homes has touted the delivery of two ‘carbon-negative’ homes in West Sussex, in the same week that construction was completed at the site for a new ‘environmentally positive’ logistics hub in Northamptonshire.
Viessmann pledges €1bn for heat pumps and green solutions | Cooling Post
GERMANY: Viessmann says it will invest €1bn over the next three years to extend its heat pump and green climate solutions portfolio. The announcement comes after the Allendorf-based manufacturer reported record revenues in 2021 of €3.4bn, up 21% on the previous year. The growth was driven by a 41% leap in demand for heat pumps.
Energy Storage
Fluence Declares Force Majeure Over Battery Supply-Chain Woes | BNN Bloomberg
Fluence Energy Inc. has declared force majeure with three customers as China’s coronavirus lockdown disrupted battery supplies, forcing them to look elsewhere for alternative sources.
Origin gets approval for 2,800MWh battery to replace Australia’s biggest coal plant | RenewEconomy
[Excerpt] The Eraring big battery has planning approval for 700MW or capacity and four hours of storage, or 2,800MWh, and would be the biggest in the country if built to full capacity, although it will face a few contenders for that title.
Tesla maintains 2030 target of 1,500GWh annual energy storage deployment | Energy Storage News
Tesla is still aiming for annual energy storage deployments of 1,500GWh by 2030, which would require an average CAGR of 90% over the decade; something it achieve in the first quarter of this year.
EXCLUSIVE CATL planning EV battery production in United States, vetting sites | Reuters
CATL, the world’s largest battery maker, is in the final stages of vetting sites in the United States to build electric vehicle batteries, an investment that would mark the Chinese company’s first production in the world’s second-largest car market, two people with knowledge of the plans told Reuters.
Solar and Wind
Mapped: Solar and Wind Power by Country | Visual Capitalist
Image: Visual Capitalist
Renewable Records in Southern Europe Boost Hopes Over Ditching Fossil Fuels | BNN Bloomberg
Spain and other Mediterranean countries generated record amounts of power from wind and solar farms last month, underscoring the potential for renewables to replace expensive fossil fuels.
US Solar installations up 36% in the first two months of 2022 | pv magazine
The solar PV train has left the station with strong momentum in 2022, showing 36% year-over-year growth through February when compared to the first two months of 2021. This marks significant growth despite a year of challenges for the industry.
Zinc giant seals 9GW wind and solar pipeline for Australian green hydrogen plans | RenewEconomy
Ark Energy to fast track 9GW of wind and solar projects as it seeks to accelerate green energy switch and renewable hydrogen.
Smelting Giant Korea Zinc to Invest $6.6 Billion in Green Power | BNN Bloomberg
[Excerpt] The Seoul-headquartered zinc, gold, silver and lead smelter plans to invest $6.6 billion over the next eight years developing solar and wind power generation and green hydrogen production, with aim of meeting its RE100 goal of using electricity generated entirely from renewable sources, according to Yun Choi, Korea Zinc’s vice chairman and heir apparent. See also: South Korean minerals giant secures 9 GW Australian renewables portfolio
US utility targets 10 GW of solar by 2035 | pv magazine
Tennessee-based utility VTA shared it has reduced emissions by 57% from 2005 levels in its fiscal 2021 sustainability report.
US hits a record 20% of electricity from wind and solar in April | Electrek
The US achieved a new record in April 2022 – for the first time, the US generated 20% of its electricity from wind and solar power, according to new data released today from global energy think tank Ember.
Transportation
The world’s largest hydrogen-battery hybrid mine haul truck starts work | Electrek
UK-headquartered multinational mining company Anglo American today launched a a prototype of the world’s largest hydrogen-powered mine haul truck in South Africa. The 2 megawatt (MW) hydrogen-battery hybrid truck generates more power than its diesel predecessor and is capable of carrying a 290-tonne (320-ton) payload.
Cash is flooding into the EV battery sector, but workers are ‘near impossible’ to find | The Logic
Canadian battery companies are scrambling to staff entire assembly lines as they face a talent crunch that could slow the sector’s ambitions.
Subaru to Spend $1.9 Billion on Battery Capacity, Add EV Line | BNN Bloomberg
Subaru Corp. plans to invest around 250 billion yen ($1.9 billion) on electric-vehicle battery capacity over the next five years and will add an EV production line to its main factory in Gunma prefecture in Japan that should begin producing cars from 2027, the automaker said Thursday.
Japan’s Subaru to build its first electric vehicle | Financial Post
Subaru Corp aims to build a dedicated electric vehicle (EV) factory in Japan in the late 2020s, it said on Thursday, as part of a $1.9 billion ramp-up to respond to surging demand for battery cars in its main North American market.
Hyundai eyes Georgia for new U.S. EV plant, report says | Automotive News
Hyundai has been in advanced discussions with state officials to build a dedicated EV plant in Georgia, sources told Reuters. Details of the investment were not immediately known.
Musk warns Tesla may stop taking EV orders because of huge delays | RenewEconomy
Elon Musk has warned that Tesla – the world’s biggest producer of electric vehicles – may stop taking orders because delivery times are starting to stretch to more than one year. “Demand is now exceeding production to a ridiculous degree,” Musk told the Financial Times Future of Cars conference in a 90-minute long interview.
Autonomous cargo ship completes 500 mile voyage, avoiding hundreds of collisions | Electrek
The “world’s first” autonomous commercial cargo ship has successfully completed a near-500 mile voyage in the congested waters of Tokyo Bay, traveling without human intervention for 99% of the trip. The 750 gross-ton vessel was powered by Orca AI, whose software helped the ship avoid hundreds of collisions autonomously.
Livanos bets on carbon capture with 60-ship fleet | Splash247
Greek shipowner Peter Livanos is backing a new player in the carbon capture, utilisation and storage (CCUS) arena, EcoLog, that plans to become a leading global midstream business with a virtual pipeline of 60 ships, along with associated import and export terminals, to transport 50m tons of CO2 a year by 2035.
Circular Economy
More than half of Gen Z consumers influenced by packaging sustainability, according to new research | Packaging Europe
New research from the packaging manufacturer and consultancy Duo suggests that 56% of so-called Gen Z consumers – generally considered to be in the 10-25 age range, at present – are less likely to buy from a retailer again if their e-commerce packaging isn’t sustainable or resourceful.
Alliance to End Plastic Waste launches $500m ‘circular plastics’ fund | edie
An Alliance of global manufacturers, retailers and chemical firms has unveiled a new $500m “circular plastic” fund aimed at supporting collection, recycling and design solutions for plastics.
Policy
Norway sets 30-GW offshore wind by 2040 goal, eyes hydrogen exports | S&P Global
Norway’s government expects 30 GW of offshore wind capacity to be operational in its waters by 2040, unveiling a goal on 11 May expected to drive hydrogen exports by Europe’s largest oil and natural gas producer as well as electrification of the country’s economy.
California unveils ambitious set of offshore wind targets | The Hill
California’s energy regulator has unveiled an ambitious set of offshore wind targets as part of a broader statewide push to make electricity 100 percent renewable by 2045.
Five EU member states join call for 1 TW of European solar by 2030 | PV TECH
The European Union (EU) should set higher solar PV deployment targets and speed up the energy transition to phase out its energy dependency on Russia as soon as possible, according to five member states of the bloc.