Energy Shift: A first country-level offset credit deal?

Plus: Stellantis reaches deal with Canada; A “heat battery” gigafactory; California to pair more solar and batteries; A maritime emissions ambition

Hi Everyone,

I’ll be taking it easy over the summer, so you’ll see the next issue whenever I get to it, but definitely more than the usual two weeks. 

The best encouragement you can give me is to see subscribers being added. So please forward this on to others and encourage them to susbcribe.

Thanks and for all of you in the northern hemisphere, enjoy summer!
Peter


Finance & Sentiment

ISSB issues inaugural global sustainability disclosure standards | IFRS
The International Sustainability Standards Board (ISSB) has today issued its inaugural standards—IFRS S1 and IFRS S2 —ushering in a new era of sustainability-related disclosures in capital markets worldwide. The Standards will help to improve trust and confidence in company disclosures about sustainability to inform investment decisions.

Nestlé Moves Away from Carbon Offsets to Focus on Emissions Reductions Across Brands | ESG Today
Global food and beverage company Nestlé will shift away from the use of offsets to achieve carbon neutral brands, focusing instead on actual emissions reductions in its operations and value chain, according to a company spokesperson, following media reports that the company was walking away from carbon neutral pledges for some brands.


Technology

Hydrogen

China’s first 20,000 ton green hydrogen plant inaugrated in Xinjiang | China Hydrogen Bulletin

On June 30, 2023, Sinopec’s first 20,000 ton per annum green hydrogen production facility was inaugurated in Kucha, Xinjiang, which marked a milestone of China’s low carbon hydrogen development.

150,000 ton green ammonia plant broke ground in Ordos, China | China Hydrogen Bulletin
(Ordos, Inner Mongolia) A 150,000 ton annually green ammonia plant broke ground in Ordos on June 25th, representing another major achievement of China’s green hydrogen industry.

‘Green’ Steel Maker Signs €1.5 Billion Deal With German Auto-Industry Supplier | BNN Bloomberg
H2 Green Steel AB signed a seven-year steel delivery deal with one of the biggest suppliers to the automotive industry worth €1.5 billion ($1.64 billion).

US plans $1bn of subsidies for clean hydrogen users as production tax credit fails to attract sufficient offtakers | Hydrogen Insight
The US government is planning to introduce $1bn of subsidies to encourage the use of clean hydrogen as part of its $7bn H2Hubs programme, having identified a lack of offtakers to be a major bottleneck for projects.

India in talks to supply green hydrogen to EU, Singapore | Reuters
India has discussed a possible deal to supply more than 11 million metric tons a year of green hydrogen to the European Union and Singapore, who in turn would invest in these Indian clean energy projects, three government officials and one industry source said.
[Comment] The unique attribute of the deal structure is that countries investing in green hydrogen in India will earn carbon credits. If such a deal goes through, I think it might be the first time countries will have been able to put to work Article 6 of the Paris Agreement. If you know for sure one way or the other, drop me a quick note. 

Dozens of hydrogen buses set to serve Gatwick Airport routes | edie
The Go-Ahead Group is set to add 20 hydrogen-powered buses to routes serving Gatwick Airport and the surrounding areas.

North America’s first hydrogen-powered train debuts in Canada | Engadget
This summer, North America’s first hydrogen-powered train began traveling across the Canadian countryside. The French passenger train is a short-term demonstration, running through the end of September, that aims to spark adoption in Canada and the US.


The Grid 

California’s electricity duck curve is deepening | pv magazine

The mismatch between times of peak solar generation and peak electricity demand is deepening in California, but energy storage buildout across the US state is set to balance the grid.
[Comment] As this article notes, the need for more dispatchable energy on the grid has opened the door to growth in batteries to help balance the grid. “Battery energy storage in California has quickly grown from 200 MW in 2018 to nearly 5 GW today. Operators plan another 4.5 GW of storage capacity in the state by the end of the year according to EIA data, suggesting the solar-plus-battery boom has only just begun.”


Buildings and Urban Design 

L.A. City Council green lights “Park Block” pilot program, inspired by Barcelona | Urbanize

Barcelona “Superblock”. Credit: SuiteLife

[Excerpt] This week, the L.A. City Council voted to move forward with a the “Park Block” pilot program, which was proposed last year by 14th District Councilmember Kevin de León.

“Other parts of the world are demonstrating that big cities can be pedestrian-centric, by using portions of streets in neighborhoods for residents to make it their own and expand open space, give kids more room to play, and allow cyclists safer passage on neighborhood streets,” said de León in a news release in August 2022. “It’s time for Los Angeles to be a leader in the United States by proving big American cities built around car-centric infrastructure can transform into liveable cities.”

California greenlights $4.3B funding for energy efficiency | Utility Dive
California regulators on Thursday approved $4.3 billion in investments for energy efficiency efforts from 2024 through 2027, along with a forecasted budget of $4.6 billion from 2028 through 2031. Multiple commissioners at the Thursday meeting noted that the decision represents a significant investment in energy efficiency, which has been a critical component to meeting the state’s climate goals.

These cities are ending fares on transit. Here’s why | CNN on MSN
Proponents also hope it will compel more people to get out of their cars and ride transit. But many transit researchers, officials and advocates say that removing fares fails to address the dire state of transit systems across America and diverts scarce resources from more pressing priorities: transit service and quality.
[Comment] As a regular rider of public transit in Calgary, I have to agree with the experts: improve service – start by assuring reliability and increase frequency (even if it means trimming routes). Sadly, I have resorted to driving to the train station because the bus servicing my neighborhood has become notoriously unreliable. 


Energy Storage 

The world’s largest battery factory will be 2.5x the size of Tesla’s Gigafactory | Electrek

California-based Rondo Energy and Thailand’s Siam Cement Group are going to operate the world’s largest battery factory in Thailand.

[Comment] What is more interesting is the energy storage technology involved: [Excerpt] Each brick that Siam Cement Group makes for Rondo’s batteries (pictured above) is 500 kg and stores 100 kWh – as much as a Tesla Model X. The Rondo Heat Battery captures intermittent electricity from solar and wind, stores the energy from that electricity as high-temperature heat in brick materials, and delivers the stored energy on demand as high-temperature heat and/or electricity. The battery is made only of brick and iron. It charges in as little as four hours and stores heat energy at temperatures up to 1500° C for hours or days, delivering zero-carbon heat for such processes as steel, cement, and chemical manufacturing.

Ontario picks another 142MW/1,136MWh of BESS through expedited RFP | Energy Storage News
Ontario’s electric system operator has announced the award of contracts to a further eight battery storage projects in its expedited Request for Proposals (RFP).


Solar and Wind 

UK Government gives green light to 500MW solar farm | edie
The 500MW Longfield Solar Farm application has been approved by the Secretary of State for Energy Security and Net-Zero, as the UK Government forges ahead with a target to increase solar power by fivefold by 2035.

Portugal aims to install 20.4 GW of solar by 2030 | pv magazine
The Portuguese government has raised its 2030 solar target by 11.4 GW. It now hopes to cover 85% of its electricity mix with renewables by the end of the decade.

Siemens Gamesa is having big wind turbine problems – why this is really bad | Electrek
[Excerpt] The company’s Spanish division found that its onshore wind turbines had worse-than-expected quality flaws. The company will have to fix flaws in rotor blades and bearings, ranging from component failures to small cracks. Eickholt also cited problems with “legacy turbines,” without going into detail.


Transportation 

Ottawa reaches deal with Stellantis worth up to $16 billion, after months of tense negotiations over EV battery plant | Toronto Star
Automotive giant Stellantis has accepted an offer from the Canadian government to salvage an electric vehicle battery plant in Windsor after months of high-stakes talks drove Ottawa and the Ontario government to ante up to $16 billion in richer subsidies, the Star has learned.

Volvo’s upcoming EVs join the Tesla Supercharger bandwagon | The Verge
Volvo is the fourth big-name automaker to announce support for Tesla’s NACS EV charging connector after Ford, GM, and Rivian.
[Comment] Experts believe it is now only a matter of time before the Tesla connector becomes the defacto standard – this, without any proclamation by government. Which means that Tesla will be exceptionally well-positioned to benefit, especially in relation to access to consumer data.  

Stellantis to Wind Down Decades-Old Motor Plant, Citing Shift to EVs | BNN Bloomberg
Stellantis NV is ending production at its Aspern plant in Vienna after 40 years, laying off about 300 workers. A shift to electric vehicles no longer offers a sustainable future for the plant, which has been making mechanical gearboxes in recent years, the company said Wednesday.

Planning an EV Road Trip? Good Luck Finding a Hotel With a Charger | Financial Post
The journey is no longer the major pain point for electric car drivers embarking on the great American road trip. It’s the destination. Only around a quarter of US hotels offer guests electric car chargers.

Tesla and BYD Post Record Q2 Sales on Surge in Electric-Car Demand | Yahoo Finance
[Excerpt] Elon Musk-led Tesla delivered 466,140 cars worldwide, beating Wall Street estimates. BYD, China’s leading auto brand, posted its best-ever quarter, selling 700,244 fully electric and plug-in hybrid vehicles.
[Comment] Tesla has a growing inventory of unsold cars, suggesting it over-estimated demand. Observers and investors wonder what it will do next as discounts start to eat at profit margins. 

Spain offers income tax rebate for electric car buyers | Reuters
Spain will reimburse up to 15% of income tax to people who buy an electric vehicle (EV) before the end of the year to encourage cleaner driving, Economy Minister Nadia Calvino said on Tuesday.

International Agreement Reached to Cut Shipping Emissions to Net Zero “Around” 2050 | ESG Today
The International Maritime Organization (IMO), the 175 member state UN agency responsible for developing global standards for shipping, announced today the adoption of “the 2023 IMO Strategy on Reduction of GHG Emissions from Ships,” including new goals to reach net zero emissions from international shipping “by or around” 2050, and to ensure the uptake of low GHG emission fuels by 2030.
[Comment] Exactly how this will be enforced remains the biggest question mark for me. Ambitions are all well and good, though need the teeth of regulation for them to become reality.