Plus: Plans for more LNG; More than 50% say next car will be electric; Tesla dinged for social and governance aspects of ESG performance
Hi Everyone,
As can be expected, two weeks of headlines pile up to a lot of material again. As a hobby, putting something out this comprehensive is a lot of work to do weekly, so I am more likely to do it every other week.
If you have stories you think worthy of including and want to make sure I don’t miss them, please send them to me.
Lastly, continue to spread this around and encourage others to subscribe.
Thanks,
Peter
Observations & Comments
Look for my comments in blue that I’ve salted in for several stories below. If you only read one story, check out the feature story about the EU announcing its REPowerEU plan involving a $300 billion package to get going on weaning itself off of Russian sources of energy. Interested in learning more? Jump to the Policy section at the bottom for more stories, including four EU countries that have set a massive target of 65GW of offshore wind by 2030.
Feature Story
EU rushes out $300 billion roadmap to ditch Russian energy | AP
The European Union’s executive arm moved Wednesday to jump-start plans for the 27-nation bloc to abandon Russian energy amid the Kremlin’s war in Ukraine, proposing a nearly 300 billion-euro ($315 billion) package that includes more efficient use of fuels and faster rollout of renewable power.
Finance & Sentiment
Why Tesla was kicked out of the S&P 500′s ESG index | CNBC
In a blog post Wednesday, the S&P explained why it kicked Tesla out of its ESG index earlier this month. It said that Tesla’s “lack of a low-carbon strategy” and “codes of business conduct,” along with racism and poor working conditions reported at Tesla’s factory in Fremont, California, affected the score.
[Comment] As expected, Elon Musk took offense to Tesla being de-listed. I think this was a bold move by those managing the index and underscores the point that while Tesla has been an incredible force behind the growth and popularization of electric vehicles – the ‘E’ or environmental part of ESG – Tesla has not tended well to the other parts important to a well-rounded ESG score – that of the ‘S’ and ‘G’ parts – social and governance aspects. Elon Musk ought to accept the gift of this assessment and undertake to make Tesla a truly great company by authentically improving the areas identified.
Net-zero pledges prompt high-carbon asset sales to private firms under less scrutiny: study | S&P Global
Recent research shows decarbonization commitments are driving upstream oil and natural gas assets from listed companies to private hands, triggering a rethink over how investors can best push businesses to achieve actual emissions reductions.
[EXCERPT] “Fossil fuel assets are, in aggregate, moving from relative industry leaders on climate to relative industry laggards and from public to private markets,” the study said. “While these trends do not guarantee that GHG emissions are rising due to [merger-and-acquisition (M&A)] activity, they show that, at minimum, the climate risk management, disclosure and governance of oil and gas facilities is weakening, making emissions more likely to stall out, or increase.”
Why Countries Must Cooperate on Carbon Prices | International Monetary Fund Blog
An international floor price for carbon could speed the world’s transition to green energy without compromising countries’ competitiveness.
SEC unveils rules to prevent misleading claims and enhance disclosures by ESG funds | CNBC
The SEC on Wednesday proposed two rule changes that would prevent misleading or deceptive claims by U.S. funds on their environmental, social and corporate governance (ESG) qualifications and increase disclosure requirements for those funds.
[UK] Rishi Sunak announces £5bn windfall tax on fossil fuel giants to help households deal with energy price crisis | edie
Chancellor Rishi Sunak has outlined additional measures to help households pay for skyrocketing energy bills, with a significant portion of the funding set to be raised using a one-off windfall tax on oil and gas majors, although questions remain about a potential tax deduction on UK oil and gas extraction.
Technology
Hydrogen
Air Liquide launches green liquid hydrogen production facility in Nevada | S&P Global
French gas firm Air Liquide formally commissioned a $250-million liquid hydrogen facility in North Las Vegas, Nevada, on 24 May it said will supply California and nearby states. The facility, which began operations and deliveries to customers in April and pilot runs a year ago, is designed to produce about 30 metric tons (mt)/day of liquid hydrogen from landfill methane.
Huge artificial “green hydrogen island” proposed for North Sea | RenewEconomy
A leading Danish investment firm has proposed a huge artificial “hydrogen island” in the North Sea which would be connected to 10GW of offshore wind, and capable of producing one million tonnes of green hydrogen each year.
Topsoe to build world’s largest electrolyzer-production facility to accelerate power-to-X capacity | Chemical Engineering
Topsoe A/S (Lyngby, Denmark) today announces its intention to construct world’s largest and most advanced industrial-scale electrolyzer production plant. Topsoe’s ambition is to rapidly accelerate the adoption of green solutions in particular within Power-to-X. In this field, the company has the leading technology to decarbonize hard-to-abate sectors such as transport, chemicals, steel and cement.
BP Moves Ahead on Clean Hydrogen Projects With UAE Energy Firms | BNN Bloomberg
BP Plc is moving ahead with a plan to develop a clean hydrogen project with two of the UAE’s biggest energy firms as oil producers seek to develop alternative fuels that will help limit the emissions contributing to climate change.
Shell to partner with Brazil’s Açu to build green hydrogen plant | Reuters
Shell and Brazil’s Porto do Açu have agreed to jointly build a green hydrogen plant, executives told Reuters, a deal that could result in the debut of the up-and-coming technology in South America’s largest nation.
BP eyes major offshore wind-powered green hydrogen plant to supply Rotterdam refinery | RECHARGE
BP and a green hydrogen specialist part-owned by Macquarie agreed to step up development work on a 250MW offshore wind-powered green H2 facility to help decarbonise the oil & gas giant’s Rotterdam refinery.
Carbon Capture
A startup in Hawaii just launched the world’s first ocean-assisted carbon removal plant | Fast Company
On a remote stretch of coastline on the Big Island of Hawaii, a startup is pioneering “ocean-assisted” carbon removal—a process that can both permanently store CO2 and help reduce ocean acidification.
Chevron launches California CCS project | Gas Pathways
US major Chevron, through its Chevron New Energies division, said May 18 it was launching a carbon capture and storage (CCS) project in California’s San Joaquin Valley. First stage will capture carbon from its Kern River Eastridge cogen plant.
bp and Linde plan major CCS project in Texas | Carbon Capture Journal
With potential start-up by 2026, the project will capture and store CO2 from Linde’s hydrogen production facilities in the greater Houston area. The development will also support the storage of carbon dioxide captured from other industrial facilities – paving the way for large-scale decarbonization of the Texas Gulf Coast industrial corridor.
TotalEnergies signs up to carbon capture project at Cameron LNG | Energy Voice
Partners in the Cameron LNG project in Louisiana, including TotalEnergies, have signed an agreement to develop the Hackberry Carbon Sequestration (HCS) project.
Phillips 66’s Humber Refinery advances carbon capture project | Hydrocarbon Engineering
The Phillips 66 Humber Refinery in the UK is on track to become the first refinery in the world to reduce its carbon dioxide emissions using a technology pioneered by Shell Catalysts & Technologies.
DOE announces multibillion-dollar project to kickstart a carbon dioxide removal industry in US | CNN
The US Department of Energy is announcing a massive investment in direct air carbon removal projects, in hopes of kickstarting an industry that energy experts say is critical to getting the country’s planet-warming emissions under control.
Nuclear
UK Government announces £120m fund to support ‘British nuclear renaissance’ | Current±
The government has unveiled £120 million in funding to support development of new nuclear energy projects. It follows plans to accelerate the rollout of nuclear power in the UK announced in the British Energy Security Strategy in April, when the government set a new target of up to 24GW by 2050.
The Grid & Software
[Comment] Again, the two stories below highlight the importance of leveraging software through the transition. I’ll admit I don’t know a great deal about all the capabilities of Octopus’ Kraken software, yet seeing the expanded use in other parts of the energy system beyond electricity suggests they have a product that is helping companies unlock more value by being smarter.
Octopus’ Kraken Technologies expands into other utilities | Current±
Octopus Energy’s cloud-native platform Kraken Technologies is expanding to target other utilities, such as water and broadband. The platform serves over 25 million accounts in the energy sector currently, including around 40% of UK energy customers. It is used in six different countries by companies including EDF, E.On, Octopus, Origin, Tokyo Gas, Good Energy and Hanwha’s Nectr.
Trafigura, Palantir Developing Supply Chain Carbon Emissions Tracking Platform | ESG Today
Physical commodities trading company Trafigura and data and analytics-focused software developer Palantir Technologies announced today the launch of a new collaboration aimed at developing a technology services platform to calculate and report carbon emissions across commodity supply chains.
Buildings
[Comment] You’ve likely noticed that I have been paying more attention to buildings lately. It has been estimated that 80% of the buildings in 2050 already exist today. That suggests an important role for retrofitting existing buildings to lower emissions associated with heating and cooling. Yet retrofits are expensive, so harder for homeowners and building operators to make investment case, suggesting a role for greater government support than exists in most jurisdictions. It also suggests we should begin constructing buildings using net-zero design principles and start by more aggressively evolving building codes in this direction. The need for both healthy retrofit incentives and to evolve policy for net zero building seems to be generally under-recognized both Federally and in most provinces here in Canada – the exception being BC with their stepped improvements to building codes.
EDF makes strategic investment in CB Heating to support heat pump rollout and installer training | Current±
DF has made a strategic investment and partnership with heat pump installer CB Heating in what it said is the first step towards its long-term heat decarbonisation strategy.
[UK] Over £550m provided to help public buildings switch to electrified heating | Current±
The government has unveiled £553 million of funding to help public buildings decarbonise by rolling out electrified heating solutions, insulation and renewable generation.
LNG
[Comment] This is the first time I’ve posted stories about Liquified Natural Gas (LNG). To some, it may seem inappropriate to highlight developments of this sort in a newsletter that is all about the energy transition. Yet the war in Ukraine has brought to life the realization of the importance of energy security, especially in Europe where alternatives to natural gas imports from Russia have many looking to how LNG imports can fill in. While the stories below point to activity in the US and Middle East, Canada too is now considering the option of supporting the export of LNG from the east coast. Quoting a story from EnergyNow: Federal Natural Resources Minister Jonathan Wilkinson has said that talks are underway with Spanish company Repsol to add export capability to its LNG import terminal in Saint John, New Brunswick, as well as with Calgary-based Pieridae Energy, which was previously stalled in its efforts to build a major new export facility in Goldboro, Nova Scotia to provide gas from Western Canada to one of Germany’s largest energy firms.
UAE to more than double LNG export capacity with Fujairah plant | Gulf News
Abu Dhabi National Oil Co. plans to build a new liquefied natural gas plant as the world’s producers race to expand their exports amid surging demand. The LNG facility, to be built in Fujairah, will be able to produce as much as 9.6 million tonnes a year.
Venture Global decides to build Louisiana Plaquemines LNG export plant | Reuters
U.S. liquefied natural gas (LNG) company Venture Global LNG said on Wednesday it made a final investment decision (FID) to build the proposed Plaquemines LNG export plant in Louisiana.
Energy Storage
SolarEdge opens 2GWh lithium battery cell factory in South Korea | Energy Storage News
Smart energy optimisation and management tech company SolarEdge has begun producing test cells for certification at its newly opened lithium-ion cell gigafactory in South Korea. SolarEdge said the plant is a response to growing demand for battery energy storage and will have a 2GWh annual production capacity when it fully ramps during the second half of this year.
Northvolt’s battery recycling plant Hydrovolt commences operations in Norway | Energy Storage News
Commercial operations have begun at the Hydrovolt battery recycling plant in Norway, a joint venture (JV) between Norwegian materials processing company Hydro and Sweden-headquartered lithium battery manufacturing startup Northvolt.
Italy reaches 1.2GWh of energy storage in Q1 2022 | Energy Storage News
Battery energy storage system (BESS) capacity in Italy reached 587MW/1,227MWh in the first three months of 2022, of which 977MWh is distributed energy storage, according to the national renewables association, ANIE Rinnovabili.
Trafigura Wants to Build Lithium Business to Tap Battery Boom | BNN Bloomberg
Trafigura Group said its plan to invest in a new UK lithium refinery will mark the start of the trading giant’s foray into buying and selling the crucial battery metal.
California regulator CPUC approves utility SCE’s fast-tracked 500MW battery projects | Energy Storage News
The California Public Utilities Commission (CPUC) has approved 497MW of energy storage procured by utility Southern California Edison (SCE) to come online from August 2023 through June 2024.
UK power group Drax submits plans for US$600 million Scottish pumped hydro project | Reuters
British power generator Drax has applied to build a new 500 million pound ($613 million) underground pumped storage hydro power station at its existing Cruachan hydro plant in Scotland, the company said on Tuesday. Pumped hydro plants work by pumping water uphill to an upper reservoir and then releasing it to enable to water to flow downhill through turbines to produce electricity when it is needed.
Solar and Wind
Corio, Ontario Teachers agree 9GW offshore wind JV | reNEWS
Offshore wind developer Corio Generation has entered into a joint venture with global investor Ontario Teachers’ Pension Plan Board to fund the development of up to 9GW of offshore wind projects.
China Triples Solar Investments as Clean Energy Push Accelerates | BNN Bloomberg
China tripled investment in solar power projects in the first four months, putting the nation on track to install record amounts of new clean energy capacity.
Simply Blue plans close to 5 GW of floating wind off Sweden | Renewables Now
Irish blue economy developer Simply Blue Group today announced plans for two floating wind projects off the coast of Sweden with a combined capacity approaching 5 GW.
Offshore wind giant to use turbine foundations to “rewild” North Sea | RenewEconomy
Danish renewable energy giant Ørsted is expanding its sustainability efforts, partnering this week with ARK Nature to explore “rewilding” opportunities in the North Sea in an effort to restore vital ocean biodiversity.
TotalEnergies to Buy Stake in US Renewables Firm Clearway Energy | BNN Bloomberg
TotalEnergies SE said it will acquire a stake in a large US renewables developer, another move by the European energy giant to expand its footprint in the American power sector. The French firm agreed to buy a 50% stake in Clearway Energy Group from Global Infrastructure Partners for $1.6 billion in cash, it said in a statement on Wednesday.
UK Sets Another Wind-Power Record Thanks to Blustery Weather | BNN Bloomberg
UK wind power production hit a record on Wednesday thanks to blustery weather spinning turbines across the country and out at sea. Wind power peaked at 19,835 megawatts on Wednesday, according to data from National Grid Plc.
Ireland allocates 1.53 GW of PV in second renewables auction | pv magazine
The final average price in Ireland’s latest procurement exercise came in at €0.09787 ($0.103)/kWh. Wind developers secured 414 MW in the auction.
Mass. advances two major offshore wind projects | E&E News
Massachusetts utilities advanced two large offshore wind projects yesterday, fleshing out the growing network of planned turbines along the East Coast that could slash the region’s carbon emissions. The facilities — Commonwealth Wind and Mayflower Wind — would together add 1,600 megawatts of carbon-free power to New England’s power grid.
Transportation
The world’s car buyers are ready to go electric | Axios
Consumer interest in electric vehicles has hit a global tipping point, with more than half of car buyers saying they want their next car to be an EV, new research from Ernst & Young shows.
[Comment] This feels like a rather important marker that should not be missed – a tipping point in sentiment globally towards EVs. Yet those thinking about what this might mean for the impact to oil demand, remember it is estimated there are over 1.2 billion internal combustion engines on the road globally, along with all the planes flying us and our goods around which together represent a thirsty crowd not going away anytime soon.
Honda takes aim at Tesla; launches electric-only e:N series in China | HindustanTimes
Taking aim at Tesla and in order to woo the middle class in the world’s largest electric vehicle market, Honda Motor has launched the electric-only e:N line of vehicles in China, Nikkei Asia reported. The carmaker’s new EVs will start at the equivalent of about $26,000, making them cheaper than Tesla’s models.
Hyundai Motor Group to invest more than $10 billion in U.S. up to 2025 | Reuters
Hyundai Motor Group said on Sunday it would invest an additional $5 billion in the United States by 2025 to strengthen collaboration with U.S. firms in advanced technology. Hyundai Motor Group, which houses Hyundai Motor Co and Kia Corp, on Friday announced plans to invest $5.5 billion in Georgia to build electric vehicle (EV) and battery facilities.
Stellantis and Samsung SDI announce joint venture to build 33 GWh battery plant in US | Electrek
[Excerpt] Together, the global automaker and battery manufacturer will invest over $2.5 billion to bring a slew of new EV jobs to Kokomo, Indiana and its surrounding areas. Stellantis exists as the latest resurrection of Fiat Chrysler Automobiles (FCA), following a merger with Peugeot S.A. that was finalized in early 2021. As a top-ten automotive manufacturer in the world, Stellantis oversees a variety of notable vehicle marques, such as Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, and RAM – just to name a few.
Public transit authorities are taking action to electrify city bus fleets across Canada | Electric Autonomy
Municipal transit agencies in Toronto, Ottawa, Regina and Saint John are the latest jurisdictions to make significant advances in their efforts to switch to fully electric bus fleets.
Circular Economy
The net-zero transition needs the circular economy transition – so how do we communicate the link? | edie
As nations ramp up efforts to increase energy security by accelerating the low-carbon energy transition, they will also need to rethink the ‘take-make-dispose’ if they are to reach net-zero. So, how can we change the hearts and minds of decision-makers and the general public?
New global circular economy drive launched for the building and construction sector | edie
The World Green Building Council (WorldGBC) has announced its intention to baseline how much waste is generated by the building and construction sector, as part of a new global campaign to help businesses across the globe adopt circular economy principles
Policy
REPowerEU relies on rooftop solar and batteries despite challenges | S&P Global
There are not enough solar panel component manufacturers or installers to reach PV goals
EU wants rooftop PV mandate for public, commercial buildings by 2027, residential by 2029 | pv magazine
The president of the European Commission, Ursula von der Leyen, has announced a mandate for rooftop solar on commercial and public buildings by 2027, and for residential buildings by 2029. The EU target for renewable energy has been increased from 40% to 45%.
Four EU countries set a massive offshore wind target of 65 GW by 2030 | Electrek
Four EU countries – Belgium, Denmark, Germany, and the Netherlands – jointly announced yesterday that they have set an offshore wind target of at least 65 gigawatts (GW) by 2030 and then intend to more than double that combined total to 150 GW by 2050.
Australia Finally Gets Its Decisive Climate Change Election | BNN Bloomberg
Australians voted in a new government that has vowed to end decades of inaction by one of the world’s highest per capita emitters. Now the fight is about just how quickly to make up for lost time. [Excerpt] Labor also campaigned on a pledge to reduce Australia’s emissions by 43% by 2030, with a goal of net zero by 2050.