Energy Shift: Momentum for EVs continues

Plus: European insurer exits net zero alliance; 400 km H2 pipeline in China; Grid queues a problem; Hyundai commits $18B to EVs

Hi everyone,

Since I’ll be taking a break for the next few weeks, I decided to remind myself what it was like when I used to provide a weekly version of this. Sadly, doing this weekly is too much to keep up with the relentless stream of stories that I’d need to comb through. I’ve kept my comments thinner this week, but still giving you lots of headlines. 

This week’s issue is book-ended with two important stories, so make sure you get to the bottom. 

As always, encourage others to subscribe. 
Thanks,
Peter


Finance & Sentiment

Munich Re Exits Net Zero Insurance Alliance | ESG Today
[Excerpt] “In our view, the opportunities to pursue decarbonisation goals in a collective approach among insurers worldwide without exposing ourselves to material antitrust risks are so limited that it is more effective to pursue our climate ambition to reduce global warming individually.
[Comment] This represents another high profile exit from GFANZ, though not necessarily for the reasons I was hoping. This move looks to be more about protecting themselves from legal risks than a more thoughtful and rational approach to financing the energy transition. All the evidence suggests the main agenda still at play, mostly in Europe, is to starve publicly traded oil and gas companies of access to capital and access to insurance. Missing from this thinking is the role that oil and gas companies can play in being a partner in the transition – and in doing so, make it far less economically turbulent. 

ISSB Gives Companies an Extra Year on General Sustainability Reporting to Allow Focus on Climate Disclosure | ESG Today
The ISSB’s new climate and sustainability reporting standards are set to be released by mid-year 2023, and take effect as of 2024. Under the new relief, companies using the new standards will be required to report on climate-related risks and opportunities in the first year of reporting, but will have an extra year to provide disclosure on other sustainability-related risks.

Apple Launches $200 Million Carbon Removal Fund | ESG Today
Apple announced a commitment of up to $200 million for the launch of a new fund aimed at supporting carbon removal projects, with goals to remove 1 million metric tons of carbon dioxide per year, while generating a financial return for investors.

Etihad Must Stop Running Two Ads in the UK Due to Greenwash Rule | BNN Bloomberg
Etihad Airways can no longer run two recent advertisements in the UK after a regulator found their environmental claims were “exaggerated.”


Technology

Hydrogen 

Sinopec to build China west-to-east green hydrogen transmission pipeline, Xinhua reports | Reuters
China’s Sinopec, will build a 400 km pipeline to transfer hydrogen from renewable energy projects in China’s northwestern Inner Mongolia region to cities in its east, according to a report in state media outlet Xinhua on Monday.

German utility plans 1.2GW blue hydrogen plant at Port of Rotterdam | Hydrogen Insight
German utility Onyx Power wants to build a 1.2GW blue hydrogen project on the site of its existing coal-fired power station in the Port of Rotterdam, apparently in a bid to keep the site productive when it is forced to close the power station.

Kimberly-Clark firms up plans for three UK-based green hydrogen projects | edie
Consumer goods giant Kimberly Clark expects the wind farm that will serve its first UK-based green hydrogen project to come online by the end of the year, after Government support for the electrolysers was confirmed last week.

Amp Energy wins bid for massive 5GW green hydrogen and metals plan | RenewEconomy
Canadian renewables developer Amp Energy has been tapped to lead development of a huge, gigawatt-scale green hydrogen and ammonia production project in South Australia’s Cape Hardy Port Precinct.

Calgary’s Atco, Kansai to Export Natural Gas-Fueled Blue Hydrogen to Japanese Markets | Natural Gas Intel
Calgary-based Atco Ltd. has made an opening move on tapping Alberta natural gas to fuel low-carbon hydrogen exports to Japan. Atco also clinched an agreement to create an “integrated clean fuels supply chain” between subsidiary Canadian Utilities Ltd. and Kansai Electric Power Co.

7 Northeast states submit $1.25B proposal for federal hydrogen hub | Utility Dive
Including the federal portion, the proposal submitted by the Northeastern states to DOE from Connecticut, Maine, Massachusetts, New Jersey, New York, Rhode Island and Vermont represents a $3.62 billion commitment and more than a dozen projects, NYSERDA said.


Carbon Capture 

ExxonMobil to offtake and store Linde’s carbon dioxide emissions from new Texas hydrogen facility | Upstream
German industrial gas giant Linde has signed a long-term carbon dioxide offtake agreement with ExxonMobil, under which the supermajor will store Linde’s CO2 emissions from its new blue-hydrogen production complex in Beaumont, Texas.

NET Power Selects Zachry Group To Deliver Its First Utility-Scale Plant | Carbon Herald
NET Power announced a major development as it works towards its goal of scaling its natural gas plants, generating no greenhouse gas emissions. NET Power has selected Zachry Group, a leader in engineering and construction services, to provide Front-End Engineering Design (FEED), followed by Engineering, Procurement, and Construction (EPC) services for the construction of the company’s initial utility-scale power plant.


The Grid 

US grid interconnection backlog jumps 40%, with wait times expected to grow as IRA spurs more renewables | Utility Dive

Image: Silicon Ranch, Georgia

Queue wait times are increasing as the number of projects getting in line has grown. The typical project completed in 2022 spent five years in queue for interconnection approval compared to three years in 2015 and fewer than two years in 2008, the report said.
[Comment] I learned something new from reading this article. There exists technology to effectively double the capacity of existing transmission lines, but “the U.S. lacks sufficient incentives for grid-enhancing technologies, which makes transmission owners unlikely to adopt them.”

Biden administration approves construction of 700-mile transmission line across US West | The Hill
The Bureau of Land Management (BLM) announced on Tuesday that it has approved the construction of a 732-mile high-voltage transmission line across the Western U.S. that will help transport renewable energy.


Buildings 

Chipotle redesigns restaurants to improve energy efficiency | edie
Chipotle Mexican Grill has published a new blueprint for ‘responsible restaurant design’ and confirmed plans to develop more than 100 stores following this framework by the end of next year.

How Sweden electrified its home heating — and what Canada could learn | CBC
[Excerpt] Forsén agrees that policies and incentives are needed to make the transition in Canada. When asked in an interview if the current carbon tax and heat pump subsidies in Canada were enough for us to move past the introduction stage, Forsén said, “No, I think you need more.”
[Comment] Canada currently offers a $5,000 grant for replacing home oil furnaces with heat pumps. Jayman, a home builder here, offers an optional $20,000 “Solar Energized Hybrid Performance” upgrade for new homes that includes an air source heat pump.


Energy Storage 

Tesla to Build New Megapack Battery Factory in Shanghai: Xinhua | BNN Bloomberg
[Excerpt] China already had more than 1,400 gigawatt-hours of battery manufacturing capacity, with another 6,000 gigawatt-hours under construction or announced. The US has the second-biggest pipeline of about 1,000 gigawatt-hours of capacity, but the vast majority of that has yet to be built.

Rock-based thermal energy storage production moves into gigawatt scale | pv magazine
Israeli company Brenmiller is set to launch a 4 GW to 5 GW production line for its thermal energy storage systems, which use crushed rocks to retain heat that can be released as steam, hot water, or hot air.

Australian Capital Territory awards 500MWh BESS project to Macquarie-backed developer Eku Energy | Energy Storage News
The ACT government announced that Eku Energy will develop, build and operate the battery energy storage system (BESS), which at 250MW/500MWh would be one of the largest of its kind in the country.

[South Australia] Huge battery projects queue up for approval in world’s most intermittent grid | RenewEconomy
A slew of big new battery storage projects are queueing up for environmental approval in South Australia, which currently leads the world in the share of variable wind and solar in a gigawatt scale grid.

California utility signs PPA with NextEra for eight-hour energy storage project | Energy Storage News
California utility Clean Power Alliance has inked a 15-year PPA with NextEra Energy Resources for an eight-hour duration energy storage project. The PPA secures the offtake from NextEra’s 75MW, long-duration Desert Sands Energy Storage facility in Riverside County, California, starting in June 2026.


Solar and Wind 

Average solar LCOE increases for first time this year | pv magazine
A new report by Lazard compares the levelized cost of energy (LCOE) for various generation technologies on a $/MWh basis. It shows that utility-scale solar and onshore wind LCOE increased for the first time in 2023, at $24/MWh to $96/MWh for solar and $24/MWh to $75 MWh for wind. Nevertheless, the two renewable sources are still the economic frontrunners when compared to nuclear, gas, and coal.

Solar exceeds 28 GW in Brazil, including 20 GW of distributed-generation PV | pv magazine
Brazilian developers have already installed at least 2.1 GW of distributed-generation solar and more than 1.3 GW of centralized PV this year. At this average pace of 21.1 MW per day, installers could build 7.71 GW of distributed-generation PV in 2023.

Giant windfarm approved: Beijing endorses 1.5GW CNOOC Ltd project in South China Sea | Upstream
The Chinese government has endorsed a major plan by Chinese offshore operator CNOOC Ltd to build a giant offshore wind farm in the South China Sea, boosting its ambition to become one of the country’s largest offshore wind power developers. CNOOC Ltd said that China now has more than 20 offshore wind farms with total capacity exceeding 30 GW.

Iberdrola takes on battery recycling and plans big solar PV manufacturing plant | RenewEconomy
Spanish clean energy giant Iberdrola is taking steps to deliver industrial-scale lithium-ion battery recycling at a specialised facility in Spain, at the same time that the company is also planning a 1.6GW solar PV production facility.



Transportation 

Public transport overhaul would deliver £52bn while supporting net-zero transition | edie
A new report has claimed that an 80% mileage increase by rail alongside a 10% car mileage reduction from a modal shift to public transport will be required by the 2030s if the UK is to meet its climate goals, and could unlock £52bn in productivity gains by doing so.
[Comment] It is heartening to see the recognition of the importance of public transport being critical for lowering transport emissions. All levels of governments around the world should be considering making investments in urban public transit as well as improve options for inter-city connections. And this study is coming from the UK which like many places in Europe are leaps and bounds ahead of Canada and the US. This point was especially reinforced by a recent episode of a BBC reality TV show “Race across the World” where contestants from the UK were challenged with getting around in the Canadian province of British Columbia. Suffice to say they had a rude awakening on just how few public transit options were available to them. 

Hyundai Commits to $18 Billion Spend in Shift to Electric Cars | BNN Bloomberg
Hyundai Motor Group has committed to a spend of around 24 trillion won ($18.2 billion) by 2030 as it seeks to increase production of electric vehicles.

The Race to Clean Up Trucking Emissions Is Just Getting Started | BNN Bloomberg
Purely battery-powered trucks have a head start on hydrogen fuel cells in the race to decarbonize trucks, but because of major drawbacks for both technologies, the competition is far from settled.

Toyota plans to release 10 new electric cars by 2026 | electrive
Under new CEO Koji Sato, Toyota wants to focus more on electric cars in the future and is planning ten new BEV models by 2026. However, Sato is also still committed to hybrids and therefore wants to continue investing in the combustion engine.

Toyota unveils its first new hydrogen car in a decade, to go on sale this autumn | Hydrogen Insight
Japanese auto maker Toyota is to launch a new hydrogen fuel cell car (FCEV) this autumn, adding to the company’s flagship FCEV, the Mirai — despite the new CEO’s plan to massively expand its range of battery-electric vehicles (BEVs).

Walmart preparing to build its own coast-to-coast EV charging network | The Verge
Walmart is planning to build out a nationwide electric vehicle charging network at thousands of its stores, including Sam’s Club locations. Walmart believes it is “uniquely positioned” to build out a convenient charging solution for EV owners. The company says its stores and wholesale warehouses are located “within 10 miles of approximately 90% of Americans.”

Ford investing $1.8 billion to transform Oakville auto assembly plant into an EV industrial park | Electric Autonomy
Ford Motor Co. is spending $1.8 million to transition its Oakville, Ont., auto assembly plant into a “high-volume” EV manufacturing hub. Construction will start in 2024 and vehicle production will begin in 2025, the automaker says.

Enel X Way plans to add 10,000 DC public charging stations in North America by 2030 | Electrek
Enel X Way today announced that it plans to add 10,000 DC public charging stations – and at least 2 million home, commercial, and public EV charge ports overall – in North America by 2030.

Zeekr launches sub-$30K ‘X’ electric SUV aimed at Tesla, luxury automakers | Electrek
Chinese EV maker Zeekr officially unveiled its new “X” electric SUV in China Wednesday. With up to 348 miles range and a surprisingly low starting price of around $28,000 (189,800 yuan), the Zeekr X is set to take on a surging Tesla, among other luxury automakers, in China before it launches in Europe.

BYD to launch Dolphin hatchback in Europe this year as its most affordable EV | Electrek

The BYD Dolphin hatchback has the potential to become the Chinese automaker’s most popular EV model in Europe as it will now enter major markets overseas this year. At a starting price of around 30,000 euros ($33K), the Dolphin will also arrive as BYD’s most affordable electric option.

Tesla delivers a new fleet of Tesla Semi electric trucks to PepsiCo | Electrek
Tesla has delivered a new fleet of up to 21 Tesla Semi electric trucks to PepsiCo as the automaker slowly ramps up the much-delayed vehicle program.

Tesla cuts prices on Model 3, Model Y by up to 10% in Europe, elsewhere | Electrek
Tesla has followed up on recent price cuts in the US with significant price drops on the Model 3 and Model Y in Europe, up to 10% depending on the model and market. Price cuts also reached Israel and Singapore.


Policy

Biden’s Toughest-Ever Car Pollution Curbs to Drive EV Sales | Bloomberg via Yahoo
The Biden administration proposed to crack down on vehicle pollution with tailpipe emission limits so tough they will effectively compel automakers to ensure two out of every three cars and light trucks sold in 2032 are electric models. The standards outlined by the Environmental Protection Agency on Wednesday are on track to be among the strongest in the world, propelling EV sales well beyond even the rosiest third-party forecasts.