Energy Shift: Companies need to watch their step here

Plus: Colossal new wind turbine in China; ; hydrogen from salt water; Oil Sands CCS project advances: $73B in US EVs in 2022; India promotes hydrogen

Hi everyone,

I may take a pause on these for personal reasons. In the meantime, see the latest updates below. As per the last issue, I am trimming the length by only including excerpts for particularly important signposts. The full version is available on my website at StewardingEnergy/blog/. Let me know what you think of the format adjustment.

A bit lighter on comments this issue, though feel free to share your thoughts back with me or consider posting them to my website for others to see.

As always, consider sharing this around and encourage others to subscribe.
Thanks,
Peter

---

Finance & Sentiment

Antitrust Threats Cloud Business Cooperation on Climate Action | WSJ
[Excerpts] In March, Arizona’s attorney general launched an antitrust investigation into Climate 100+, an investor-led ESG initiative aiming to pressure big polluters to decarbonize. Later in the year, 19 Republican state attorneys general launched an investigation into cooperation between six banks— Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, and Wells Fargo & Co.—as part of the United Nations Net-Zero Banking Alliance. That probe focused mainly on a requirement to restrict funding to fossil-fuel companies and end financing for new unabated coal projects.

“There are a lot of ways to stay on the right side of antitrust laws,” says Justin Stewart-Teitelbaum, antitrust partner at Freshfields. Trade associations and standard-setting organizations are two examples he mentions where competitors work together and commonly avoid antitrust law concerns.

Companies do need to be careful when navigating how to collectively accelerate climate action within the rules.

[Comment] I’ll admit that I thought the momentum behind ESG was just too big and too far along to be stopped by the anti-ESG movement in the US. Clearly, there is more to it and therefore it may very well act as a brake where more caution is applied. That said, tackling climate change is an imperative for which the urgency continues to grow.

 90% of businesses view carbon credits as crucial part of decarbonisation plans | edie
Almost nine in 10 business leaders from across the globe believe that carbon credits will play an important role to help deliver decarbonisation targets in line with the 1.5C limit of the Paris Agreement, but concerns persist around the quality and regulation of carbon markets and how using offsets can be viewed as greenwashing.

New York to Charge Emitters $1 Billion per Year, Reinvest in Emissions Reduction | ESG Today
Large greenhouse gas emitters and fuel distributors in New York will be required to pay more than $1 billion per year, according to a new “Cap-and-Invest” program unveiled by Governor Kathy Hochul in her 2023 State of the State address, with proceeds reinvested in emissions reduction initiatives and support for vulnerable communities facing rising energy prices. Under the new program, large-scale greenhouse gas emitters and distributors of heating and transportation fuels will be required to purchase allowances for the emissions associated with their activities, based on an economy-wide emissions cap.

India to Launch Inaugural $2 Billion Green Bond Offering this Month | ESG Today
The Government of India will issue its first-ever green bond this month, according to an announcement by the Reserve Bank of India, with plans to raise approximately US$2 billion to support green infrastructure projects aimed at reducing the carbon intensity of the economy. India’s entry into the green bond market follows the government’s introduction in recent years of a series of climate-related goals, including a pledge made at the 2021 COP26 climate conference to reach net zero by 2070.

---

Technology

 

Hydrogen 

New electrolyzer to split saltwater into hydrogen | pv magazine
Chinese scientists have developed a new way to split seawater into hydrogen without using a separate desalination process. They incorporated a self-breathable waterproof membrane and a self-dampening electrolyte (SDE) into the electrolyzer, so water migrates from the seawater across the membrane to the SDE, without extra energy consumption.

South Korea to create six ‘hydrogen cities’ that would use H2 in buildings and transport | Hydrogen Insight
The South Korean government has announced 240bn won ($192.7m) of funding to create six “hydrogen cities” — with a focus on blue H₂ derived from fossil gas with carbon capture and storage.

India approves $2 billion incentive plan for green hydrogen industry | Financial Post
India has approved an incentive plan of 174.9 billion rupees ($2.11 billion) to promote green hydrogen in a bid to cut emissions and become a major exporter in the field, the country’s information minister said on Wednesday.

Portugal reveals first details of upcoming green hydrogen tender | pv magazine
The Portuguese authorities plan to award 10-year contracts to developers for 3,000 tons of green hydrogen and 10,000 tons of renewable methane.

Western Australia awards land rights to five giant green hydrogen projects | Hydrogen Insight
The government of Western Australia (WA) has awarded land rights to five massive green hydrogen projects, including BP’s giant 14GW Asian Renewable Energy Hub (AREH) — as well as one grey hydrogen facility.

Equinor and RWE to build hydrogen supply chain for German power plants | Financial Post
Equinor and RWE said on Thursday they plan to develop a supply chain for low-carbon hydrogen, allowing Germany to cut its reliance on coal power and thus its CO2 emissions.

Gulf Coast hydrogen hub encouraged to submit full proposal | HyVelocity
The U.S. Department of Energy (DOE) issued a notice of encouragement for HyVelocity to apply for regional clean hydrogen hub funding. HyVelocity aims to be among the 6-10 hubs vying for $7 billion in funding announced as part of the bipartisan infrastructure deal announced in September 2022.

Plan unveiled to produce green hydrogen and ammonia on a ship connected to a 1.5GW wind farm in Greenland | Hydrogen Insight
The PXFloater vessel allows H2 and NH3 to be produced in places where renewable energy is cheapest without huge investment in permanent onshore facilities. A Norwegian start-up has unveiled a plan to produce green hydrogen and ammonia on board a ship connected to a 1.5GW onshore wind farm in western Greenland.

Norwegian start-up unveils €4bn green steel and hydrogen production facility in southern Finland | Hydrogen Insight
Blastr says its wind-powered plant will reduce the CO2 footprint of steel production by 4.6 million tonnes per year — the equivalent of annual Finnish car emissions. The project, which has the support of the Finnish government, would produce 2.5 million tonnes of high-quality green steel annually, with the H2 produced on-site used instead of coke to extract iron from ore.

Korean oil company plans to use hydrogen and fuel cells to charge battery electric vehicles at its filling stations | Hydrogen Insight
The facilities would ‘reduce the burden of social costs’ of transmission network construction, claims SK Energy, but energy losses would be high. Korean oil company SK Energy plans to use on-site hydrogen to charge battery electric vehicles (BEVs) at its filling stations across South Korea, as part of a new partnership with three local electricity-focused companies.

Deal aimed at using hydrogen for UK glass-making process signed | Vertex Hydrogen
Vertex Hydrogen has signed a ‘Heads of Terms’ offtake agreement for low carbon hydrogen with Merseyside glass manufacturer Pilkington UK. St Helens’ Pilkington United Kingdom Limited, part of the NSG Group, has led the flat glass sector in the switch towards low carbon fuels, completing two world-first trials of hydrogen being fired in a glass furnace.

---

Carbon Capture 

Canada oil sands producers to begin evaluating proposed carbon storage site | Yahoo
Canada’s largest oil sands producers signed an agreement with the Alberta government allowing them to assess the geology of an underground carbon storage site, a step in their plan to tackle greenhouse gas emissions, the companies said on Wednesday.

Coming US CCS Wave Running Into Policy Bottlenecks | Energy Intelligence
[Excerpt] CCS developers are eager to get to work, with many of the largest CCS projects due to start up mid-decade. But with no regulatory framework in place for permanent CO2 storage in federal waters and a mounting permit backlog for onshore injection wells, can US policymakers keep pace with the spiking demand for projects?

UAE plans carbon capture as part of $15 billion push for low-carbon energy by 2030 | JWN
The United Arab Emirates is earmarking $15 billion for energy-transition projects over the rest of the decade as the Middle Eastern oil producer seeks to burnish its green credentials ahead of hosting a key global climate summit. Abu Dhabi National Oil Co. will make the investments, the government said in a statement on Thursday. The state-owned company will look at international partnerships and carbon capture as part of its expansion of a cleaner-energy unit established last year.

Norway’s Horisont selects storage site for major carbon capture scheme | Upstream
Oslo-listed Horisont Energi has agreed a location for the onshore carbon dioxide terminal that forms part of Norway’s first commercial carbon capture and storage project, Errai. The CO₂ will be sent by pipeline from the Gismarvik receiving terminal, on Norway’s west coast, to the North Sea, where it would be injected and permanently stored in an offshore reservoir. A licence award from the ministry is expected to be announced during the first half of this year, with the project due to start operating in 2026. Horisont recently announced that E.On will store more than 1 million tpa of CO₂ at Errai.

---

The Grid 

Australia and NSW State Pledge US$5.2BN to Boost Transmission Capacity | World Energy
The Australian federal government and the state of New South Wales (NSW) will spend a combined AUD7.8bn (US$5.2bn) to improve and accelerate the deployment of the transmission capacity needed for several renewable projects in Australia. The agreed package will support the development of eight transmission and renewable energy zones (REZ) projects in NSW, including the HumeLink project, which will connect to the grid Australia’s largest hydropower scheme, the 2 GW Snowy 2.0 hydro pumped storage project (due for commissioning by 2026).

---

Buildings 

Germany’s new rebate program for residential heat pumps has come into effect | pv magazine
A set of amendments to Germany’s law that offer a rebate program for sustainable heating has come into effect on January 1st. The new rules grant rebates of up to 40% to help homeowners to buy and install heat pumps.

---

Nuclear 

Holtec International seeks $7.4 billion federal loan for small modular reactor build-out | Utility Dive
Holtec International is seeking a $7.4 billion federal loan to increase its capacity for manufacturing small modular reactor, or SMR, components and to build and commission at least four SMR-160 plants in the U.S. initially. Its request, submitted last year, also would finance construction of one or more additional manufacturing plants.

Korea Curbs Plans for Renewables in Push For More Nuclear | Financial Post
[Excerpt] Nuclear plants are now expected to account for almost one-third of generation capacity by 2030 up from about 24% forecast in earlier draft proposals, according to government documents published Thursday. Renewable sources are seen generating about 21.6% by the same date, lower than a previous estimate of 30.2%.

[Comment] The number of countries reconsidering nuclear is growing. 

---

Energy Storage 

100-hr Iron-air battery maker Form Energy lands “$760 million” deal from West Virginia | Clean Technica

Image courtesy of Form Energy

Form Energy is developing an iron-air battery capable of storing electricity for 100 hours at system costs which it says are competitive with legacy power plants, something seen to be important incorporating greater proportions of renewable energy into grids.

New York proposes grid-scale energy storage tenders in roadmap to meet 6GW target by 2030 Energy Storage News
A new roadmap outlining how New York can meet ambitious energy storage targets has been welcomed as “comprehensive and thoughtful,” including proposals to incentivise deployment. The US state aims to get to 6GW of energy storage by 2030 – equivalent to 20% of its expected peak load – helping enable it to meet 70% of electricity demand with renewable energy.

Origis selects Mitsubishi to supply batteries to three energy storage projects | Power Technology
US-based solar and energy storage developer Origis Energy has awarded a contract to Mitsubishi Power Americas to deliver three utility-scale battery energy storage system (BESS) with a total capacity of 150MW/ 600MWh. [In the Southeast US]

Neoen hits go on two more big batteries, locks in three new PPAs | RenewEconomy
French renewables developer Neoen has hit the ground running in Australia in 2023, launching construction of big battery projects in both South Australia and Queensland, signing new power purchase deals and reaching financial close on one part of a hybrid wind, solar and storage project, also in South Australia.

Big battery gets green light for construction in north Queensland | RenewEconomy
Queensland’s north is on track to get its first grid forming big battery, after plans to build a 200MW/400MWh energy storage system received final approval for development.

Intersect Power brings solar-plus-storage with 448MWh BESS online in California | Energy Storage News
Renewables developer Intersect Power has brought a 310MWp PV, 448MWh energy storage system project online in California. The company announced the start of commercial operations for its Athos III solar project in Riverside County.

Greenko plans $1.2B pumped hydro energy storage project in India | Energy Storage News
Greenko, an Indian power producer creating a 24/7 renewable energy proposition backed with energy storage, has announced a planned US$1.2 billion pumped hydro project. Greenko said yesterday that its newest project in development is a PHES plant in the Neemuch District of the Indian state of Madhya Pradesh with storage capacity of 11GWh.

UK developer Exagen submits application for 500MW/1,000MWh battery storage project | Energy Storage News
Exagen has submitted plans for a 500MW/1GWh battery storage project to Blaby District Council, in the Midlands region of England, UK. The project is expected to cost US$425 million and is expected to connect to the grid in 2028. Situated in Leicestershire, the Normanton Energy Reserve will be created across 19 acres, have a capacity of 500MW/1GWh and be capable of providing enough power for 80% of the homes in the county.

---

Solar and Wind 

A colossal 18 MW wind turbine is about to debut in China | Electrek

Image: CSSC. Note the pictured turbine’s capacity is 6.2MW and is for the FuYao project. The height of the hub on this turbine is 96m, whereas for the 18MW H260, the height of the hub is 150m – 50% taller. 

[Excerpt] The H260-18MW will have a rotor diameter of 853 feet (260 meters). To put that in perspective, that rotor diameter is as long as the height of the Haliade-X, which has a rotor diameter of 722 feet (220 meters). The 18 MW turbine will have 420-feet-long (128-meter-long) blades with a sweep area of 570,487 square feet (53,000 square meters). The blades will have independent pitch control, a well-known method of reducing blade loads.
[Comment] Considering most land-based turbines are 3MW or less, an 18MW turbine is truly monstrous. Which is why it can only be for offshore. At full power, it will be able to generate 44.8 kWh of electricity for each revolution and 77 million kWh per year, according to its maker, CSSC Haizhuang, a subsidiary of China State Shipbuilding Corporation. That is said to be enough to power for 40,000 households for a year – from one turbine. 

Korean firm plans $2.5B in new solar panel plants in Georgia | AP News
[Excerpt] “By 2027, the Qcells expansion is projected to supply about 30% of total U.S. demand for solar panels,” Biden clean energy adviser John Podesta told reporters.

Construction starts on 1 GW solar project in Rajasthan | pv magazine
President Droupadi Murmu will today lay the foundation stone of a 1 GW grid-connected solar power project in the Bikaner district of Rajasthan. The ground-mount solar project is being developed by hydropower producer SJVN, which won it under the Central Public Sector Undertaking (CPSU) scheme in an auction conducted by the Indian Renewable Energy Development Agency (IREDA).

Neoen starts building 93 MW solar plant in Canada | pv magazine
French renewables developer Canada has started building a 93 MW solar project in the Canadian province of Alberta. The plant will feed power into the local grid, which is operated by ATCO Electric.

Danish wind turbine maker gets 1.6GW in orders | ReTHINK Energy
Over the holiday period, Danish OEM, Vestas, received the orders amounting to around 1.6GW. See link for the full list.

200MW solar + 200MWh battery proposed for Spain | Energy Storage News
A Madrid-headquartered developer has proposed a solar-plus-storage system in Spain with a 100MW/200MWh battery energy storage system (BESS). The project, called GECAMA HYBRID PLANT, would comprise 434,928 bifacial PV modules connected to a substation via 1,000 250kWac string inverters equating to a maxiumum power output of 250.08MWp and 250MWac. The BESS component would be made up of 80 battery containers and 20 power converters totalling 100MW of power and 200MWh of energy storage, a two-hour system.

---

Transportation 

2022 saw $73 billion invested in US EV supply chains | npr

Image: Atlas Public Policy EV Transition

These days, billion-dollar plants to make the massive batteries that power electric vehicles are announced so often that — even if you follow the auto industry — it’s hard to keep track of them all. In 2022 alone, companies announced more than $73 billion in planned projects — more than three times the previous record, set in 2021.

Here are 8 tips for the best EV winter range and performance | Electrek
Whether you’re a seasoned EV driver in cold climates or this is your first winter driving an electric vehicle, there’s always more to learn about how to get the best range and performance from your EV when the temperatures drop.
[Comment] Full disclosure: I do not own an EV, yet. What you will see in here is a list that in composite makes driving an EV in winter a notch or two less convenient than an internal combustion engine (ICE). Granted, these extra things can be something you just get used to planning for, though EV drivers admit it is an adjustment. If you own an EV, feel free to drop me a note with your take.

Tesla production and delivery increased by more than 40% in 2022 | UPI
[Excerpt] Tesla’s total for the year was about 1.37 million EVs produced and 1.31 million delivered. Vehicle deliveries increased year-over-year by 40% and production increased by about 47%.

Tesla faces higher lithium prices after supplier amends deal | Bloomberg via Regina Leader-Post
Tesla Inc. is set to pay more for the lithium that powers its electric vehicles after a supplier amended their deal amid a relentless price rally of the metal. Piedmont Lithium Inc. will now supply an increased 125,000 metric tons of lithium concentrate to the EV giant starting in the second half of this year through the end of 2025, according to a statement Tuesday. Unlike prior agreements where prices are locked in, Piedmont’s deal with Tesla relies on a floating mechanism based on market prices, according to the statement.

First batch of solid-state batteries shipped by QuantumScape to EV makers | Inside EVs
QuantumScape, one of the most well-known solid-state battery developers, shipped its first batch of 24-layer lithium-metal cells to electric vehicle manufacturers for in-house testing.

BMW to make Solid Power’s battery cells under expanded agreement | Automotive News
BMW intends to duplicate Solid Power’s pilot production lines at its own facility in Germany. Colorado-based Solid Power will license the cell design and manufacturing processes to BMW, which will pay the company $20 million through June 2024, subject to certain conditions.

Sony and Honda will sell their electric car, ‘AFEELA,’ in 2026 | Electrek
[Excerpt] Sony highlighted its electronics expertise by focusing on the car’s sensing and infotainment abilities. The vehicle will have 45 sensors for autonomous driving (up from 40 in last year’s presentation) and will include advanced entertainment options within the car.

New York City buying more than 900 EVs for government fleets | National Post
New York said on Wednesday it will replace more than 900 city-owned fossil-fuel powered vehicles with electric models and install 315 additional EV charging ports after receiving a $10.1 million U.S. Transportation Department grant.

Mercedes-Benz plots ‘global’ EV charging network with 10,000 chargers by 2030 | Tech Crunch
Following the likes of Tesla and GM, the German automaker shared a plan to develop a 10,000-charger network by 2030, starting with the U.S. and Canada and later expanding into China, Europe and “other key markets.”

Audi announces electrification plan; EVs only from 2026 | Just Auto
VW Group’s Audi brand has presented its latest strategic plan for electrification, in terms of its product plans and manufacturing infrastructure. From 2026, the brand will only launch all-electric models onto the global market, gradually phasing out production of its combustion models by 2033.

Bosch Doubles Down on China With $1 Billion EV Parts Plant | BNN Bloomberg
Bosch plans to build a facility in Suzhou in Jiangsu province to develop, test and manufacture car parts and automated-driving technology mainly for local automakers, the German manufacturer said Thursday.

---

Circular Economy 

There isn’t enough recycled plastic for companies to meet commitments. What now? | GreenBiz
Many companies have made commitments to drastically increase their use of post-consumer recycled content (PCR) in their packaging or products. But there’s an elephant in the room: There’s not enough recycled plastic for companies to meet mandates or their public commitments (let alone their private ambitions). By Tom Szaky

What to expect from fashion rental in 2023 | Glossy
[Excerpts] While dedicated rental companies see it as the future of clothing consumption, others are experimenting with the format to meet ambitious sustainability commitments. For Selfridges, rental is part of a much bigger circularity strategy that includes resale, skin-care and beauty refills, and clothing repairs.

Converting fast-fashion shoppers into renters requires education about the potential environmental benefits of renting versus buying cheaper clothing. In 2021, Finnish scholars released a report in Environmental Research Letters stating that rental has a higher global warming impact than other sustainable options like resale, extended use and recycling. The report focused on the emissions from transport and dry cleaning, which are pain points for fashion rental companies. The fact remains that too little data-backed, independent research has been done to back up the sustainability claims many rental platforms make.

---

Policy

France Prepares Green Industry Bill Echoing US Climate Law | Financial Post
French Finance Minister Bruno Le Maire said he will present a “green industry” bill soon as Europe seeks to stop businesses being lured across the Atlantic by billions of dollars of subsidies under the US’s climate law.

UAE plans carbon capture as part of $15 billion push for low-carbon energy by 2030 | JWN
The United Arab Emirates is earmarking $15 billion for energy-transition projects over the rest of the decade as the Middle Eastern oil producer seeks to burnish its green credentials ahead of hosting a key global climate summit. Abu Dhabi National Oil Co. will make the investments, the government said in a statement on Thursday. The state-owned company will look at international partnerships and carbon capture as part of its expansion of a cleaner-energy unit established last year.