Plus: $2.7B battery subsidies in Quebec; France allocates €4bn for hydrogen subsidies; Green steel deals for cars; 6GW in new solar factories in US
Hi everyone,
This issue is book-ended by my commentary, so don’t miss what is at the bottom. Start with my take on addressing demand for oil and gas, then skim through the headlines to catch my comments at the very bottom on the policy choice made by UK Prime Minister Rishi Sunak to slow-roll the ban for the sale of internal combustion engine cars and vans, along with weakening of other measures for reducing emissions.
As always, continue to forward on to others and encourage them to subscribe.
Until next time, happy reading!
Peter
Peter’s take: Addressing demand for oil & gas
I attended some of the 24th World Petroleum Congress held here in Calgary recently. It was billed as “Energy Transition: The Path to Net Zero”. However, it was mostly about how oil and gas companies are pursuing net zero for their operations, and not about how to meet global demand for zero carbon energy. To be expected, I guess, as it was mostly oil and gas companies talking to other oil and gas companies. Yet, there were some brighter spots, like a panel on circular economy.
One thing that struck me was a very clear narrative for the recognition that an “all of the above” approach will be needed because the reality is that global demand for oil continues to creep up and sits at around 101 million barrels per day. No matter how much we want it to be different, that is some cold hard reality. And yes, demand growth is expected to slow and eventually peak. What I do not yet see is a credible forecast for a dramatic fall-off in demand along the likes needed for maintaining global temperature growth below 2C, let alone the wishful thinking associated with what is needed for a 1.5C case.
Which is why I find it disappointing that I don’t hear more about the measures that could be taken to actually begin to lower demand for oil and gas. Take Canada and US cities, for example. We continue to build cities in ways that are energy inefficient. Mostly housing is in the form of single family homes in far-flung suburbs. And the places where we do build density, we rarely also build with it the walkable destinations and services. I still see way too many new neighborhoods that are built with density, but not a corner store, coffee shop, hair salon or pizza place anywhere to be seen – until you drive a bit further to the strip mall that has the minimum parking specified by zoning requirements. Only in older inner-city neighborhoods do you find the small businesses tucked here and there within an easy walk or bike ride. We still appear to have a planning construct that is dominated by a car-centric mindset and burdened by standards that hold us hostage to a flawed template for living.
Row housing and condos help with improved energy efficiency, yet we are still building structures that rely on gas furnaces. I am jealous of BC’s step code – a practical approach to incrementally moving towards net-zero building standards.
I had the pleasure this past week of doing a “Jane’s Walk” along 17th Ave SW in Calgary and heard about the improvements that have made it that much more enjoyable for pedestrians, but also better for businesses.
I’ll repeat my call for those interested to read Strong Towns – A bottoms-up revolution to rebuild American prosperity by Charles L. Marohn. (See my Aug 14 post for more of my summer “urbanism” reading). See, too, the Strong Towns YouTube Channel for excellently produced videos. Become a member (note the US tax deductibility), sign up for their newsletter. Get engaged.
Changing how we build cities and retrofitting existing areas is hard stuff. Many factors are at play – market forces driving developers to “build what people want”, zoning, NIMBYism and the list goes on. Yet just because it is hard, doesn’t mean we should resign ourselves to “it’s just the way it is”.
Finance & Sentiment
U.S. Treasury Releases Principles for Net Zero Commitments by Financial Institutions | ESG Today
The U.S. Treasury announced today the publication of its new “Principles for Net-Zero Financing & Investment,” aimed at establishing a set of best practices, and promoting consistency and credibility for private sector financial institutions in making and pursuing net zero commitments. Introduced as voluntary principles, the new publication focuses primarily on financial institutions’ Scope 3 financed and facilitated greenhouse gas (GHG) emissions, which typically account for the vast majority of financial firm’s carbon footprint.
$24 Trillion Investor Group Launches Campaign Targeting 100 Companies to Address Biodiversity, Nature Loss | ESG Today
[Excerpt] Companies targeted by the campaign include Amazon, McDonald’s, Nestlé, Walmart and Glencore. According to Nature Action 100, companies were selected based on market capitalization within key sectors, and using of those with the highest impacts on nature.
Technology
Hydrogen
Chevron Buys Into World’s Biggest Hydrogen-Storage Plant in Utah | BNN Bloomberg
Chevron Corp. will become majority owner of what’s expected to be the world’s largest hydrogen production and storage facility as the oil giant invests in tech aimed at addressing the intermittency that plagues wind and solar power.
TotalEnergies launches call for tenders for 500,000 tonnes of green hydrogen per year | Hydrogen Insight
French oil giant TotalEnergies has launched a call for tender for the supply of 500,000 tonnes of green hydrogen per year by 2030 to replace the grey H2 used at its six oil refineries (and two biofuel refineries) in Europe.
€4bn allocation | France to subsidise 1GW of green and nuclear hydrogen production by 2026 | Hydrogen Insight
Paris releases details of upcoming tenders — explicitly excluding production of H2 for use in heating or blending.
Daimler’s Mercedes-Benz green hydrogen truck drives over 1,000km on a single tank | Hydrogen Insight
Liquid H2-powered fuel cell journey enabled by ‘well insulated tanks’ that prevent warming, claims German auto firm.
China’s largest green hydrogen project — a $4bn, 640MW ammonia/methanol facility — begins construction | Hydrogen Insight
The Songyuan hydrogen energy industrial park in Jilin province will also include electrolyser manufacturing.
Carbon Capture
Exxon working on direct air capture technology, not EV charging stations | MSN
Exxon Mobil is working on developing technology for direct air capture of carbon dioxide, but the company has no plans to invest in building electric vehicle charging stations, a company executive told Reuters in an interview Tuesday.
Castex, Carbonvert execute operating agreement for CO2 storage hub offshore Louisiana | OGJ
Castex Energy Inc. subsidiary Castex Carbon Solutions LLC and Carbonvert Inc. have executed an operating agreement with the State of Louisiana to develop a 24,000-acre tract of land in State waters offshore Cameron Parish, La., for a carbon capture and storage (CCS) project.
The Grid
[UK] National Grid to unlock 10GW of distribution capacity for ‘shovel-ready’ renewables | edie
The National Grid’s Electricity Distribution function has unveiled plans to accelerate grid connections for up to 10GW of renewable energy projects in England and Wales, in a bid to ease developers’ concerns about bottlenecks.
Urban Design and Buildings
Great British Insulation Scheme: Government earmarks £1bn to improve home energy efficiency | edie
The UK Government has set aside £1bn for a new home insulation scheme, which it hopes will provide financial support to more than 300,000 properties.
“Heat pumps for everyone:” Octopus unveils new smart, clean home heating system | One Step Off The Grid
British renewable energy company Octopus Energy has unveiled a smart home heating system called Cosy Octopus, billed as the “next stage in smart heat revolution.”
Small Modular Reactors
Alberta invests $7 million in Cenovus SMR study | Journal of Commerce
SMR technology involves scalable nuclear reactors that supply non-emitting heat and power. Cenovus Energy’s $26.7-million study will look at whether SMR technology could be applied to steam-assisted gravity drainage projects in the oilsands, which drill into the reservoir and inject steam to soften the oil.
Sustainable Aviation Fuel (SAF)
United Signs Deal for up to 1 Billion Gallons of Sustainable Aviation Fuel | ESG Today
United Airlines announced today that it has signed an offtake agreement with decarbonization-focused industrial biotech company Cemvita for up to 1 billion gallons of sustainable aviation fuel (SAF) made from CO2.
Green Steel
Volvo and Mercedes Benz both sign deals for low carbon steel
Truck, bus and construction equipment company Volvo Group announced a new agreement with Swedish startup H2 Green Steel to purchase low-carbon steel for use in its commercial vehicles, with deliveries beginning in 2026.
Automotive manufacturer Mercedes-Benz announced today an agreement with U.S.-based steel producer and metals recycler Steel Dynamics for the supply of more than 50,000 tonnes of CO2-reduced steel annually for its plant in Tuscaloosa, Alabama.
Energy Storage
Western Australia awards key contracts for 2.8GWh of BESS to CATL, Power Electronics | Energy Storage News
Suppliers of equipment to two landmark battery storage projects in Western Australia (WA) have been awarded contracts worth more than a billion dollars from the state’s government.
Enel brings 555MWh of Batteries online in ERCOT (Texas) | Energy Storage News
Enel North America has brought five battery energy storage system (BESS) projects online in ERCOT, Texas, totalling 369MW/555MWh of energy storage.
US energy storage deployments to exceed 10 GW this year | pv magazine
Energy storage is rapidly expanding as the sector scales to match growing renewable energy supplies, according to a new report by Interact Analysis.
US industrial giant backs iron flow batteries in long duration storage push | RenewEconomy
American industrial giant Honeywell is investing $US27.5 million in a strategic collaboration to advance the development and market adoption of iron flow battery energy storage systems. As part of the larger strategic collaboration, Honeywell will also purchase $US300 million worth of ESS Tech products, starting with an upfront purchase worth $US15 million.
Gotion to build US$2 billion gigafactory in Illinois | Energy Storage News
China-headquartered lithium-ion battery manufacturer Gotion High-Tech has announced a new US$2 billion gigafactory in Illinois, US, targeting the electric vehicle (EV) and energy storage system (ESS) markets.
A new battery recycling facility will deepen Kentucky’s ties to the electric vehicle sector | AP News
A recycling facility will be built in Kentucky to shred electric vehicle batteries in a $65 million venture between American and South Korean companies that will supply material for a separate battery-related operation in the same town, the companies announced Tuesday.
Solar and Wind
EDF to invest £4.5 billion on renewables in 2023 | Current
[Excerpt] The announcement came as the company released its annual update, and is part of a £50 billion plan to help build and maintain the UK’s net zero infrastructure. EDF confirmed that it will invest a further £5 billion in 2024.
Chinese solar giant Trina is opening a 5 GW factory in Texas | Electrek
China’s Trina Solar, one of the world’s largest solar panel makers, has announced it will build a 5 gigawatt (GW) solar panel factory in Texas.
A new 1 GW solar cell factory is launching in South Carolina | Electrek
Canadian solar cell and panel maker Silfab Solar is opening a flagship $150 million solar cell factory in South Carolina.
Renewables sail past 70 pct on Australia’s main grid, send coal to fresh lows | RenewEconomy
Renewable energy generation set a new record on Australia’s National Electricity Market on Wednesday, with the combined contributions from rooftop solar, and large-scale solar and wind pushing past 70 per cent briefly at 11am and then again at 11.45am, at an all-time high of 70.6%.
Total to Invest $300 Million in Billionaire Adani Green’s Projects | BNN Bloomberg
[Excerpt] The deal increases Total’s presence in India’s fast-growing energy market, while giving Adani Green more means to develop new renewable energy projects.
Huge monopiles built for Virginia’s 2.6 GW offshore wind farm have set sail | Electrek
The 83-meter (272-foot) long foundations will be sailing to Portsmouth Marine Terminal for the next couple weeks. They’ll be installed on CVOW’s offshore wind site about 27 miles (43 kilometers) off the Virginia coast. Construction is scheduled to begin next year.
[Comment] The site will include 176 Siemens Gamesa 14MW wind turbines that wil produce enough electricity for about 660,000 households. Impressively big!
The Netherlands just launched a mega 1.5 GW offshore wind farm | ElectrekThe Netherlands’ Hollandse Kust Zuid 1.5 gigawatt (GW) offshore wind farm – the first subsidy-free wind farm in Europe – is now inaugurated.
Transportation
Northvolt reaches deal with Quebec and Ottawa to build a $7-billion battery cell factory | Electric Autonomy
[Excerpts] “Canada and Quebec have committed to providing Northvolt with production support to match the Inflation Reduction Act’s Advanced Manufacturing Production Credit in the United States, equalling up to US$35 per kWh,” reads information from the federal government.
The equates to $4.6 billion in production incentives, with the Quebec government paying a third.
In addition, the federal government will supply $1.34 billion in capital commitment. The Quebec government will provide $1.37 billion in capital commitment.
BMW to invest $750 million in UK plant to build its new, fully electric MINI models | Electrek
BMW Group announced plans to invest about $750 million in a UK facility of its Mini sub-brand. The money will be used to revamp the Oxford plant to support electric MINI production as the brand looks to go 100% EV in the coming years.
BYD’s Yuan Plus EV hits major milestone with starting prices under $20,000 | Electrek
China’s largest EV maker, BYD, just hit a significant milestone with its 500,000th Yuan Plus EV model rolling off the assembly line Friday (09/15)
VW Eyes Job Cuts at Key EV Factory Over Cratering Demand | BNN Bloomberg
Volkswagen AG is cutting temporary workers at its main electric-vehicle factory in Germany after the phaseout of a subsidy in the country caused demand for its EVs to drop.
B.C. Hydro rolls out faster electric vehicle charging stations | CBC
Surrey, Manning Park, Tumbler Ridge, Mackenzie getting stations that can add up to 180 km range in 10 minutes.
Volvo is finally phasing out diesel cars next year in favor of an all-electric future | Electrek
Volvo’s last diesel-powered car will roll out next year as the Swedish automaker looks toward an all-electric future. As one of the first legacy automakers to do so, Volvo is rapidly transitioning its lineup with a full slate of EVs
Nissan to Go All-Electric in Europe by 2030 Despite UK Delay | Electrek
Nissan Motor Co. is sticking with its plan to produce only electric vehicles in Europe by 2030 even after UK Prime Minister Rishi Sunak delayed phasing out the sale of new fossil-fuel powered cars.
Ford pauses work, limits spending on $3.5 billion EV battery plant with CATL | Electrek
Ford is pausing construction on its $3.5 billion EV battery plant in Marshall, Michigan, with plans to limit spending for the time being.
StoreDot and Volvo are pairing up to develop bespoke ultrafast EV batteries | Electrek
Volvo Cars has signed a multi-year strategic collaboration agreement with StoreDot, maker of extreme fast charging (XFC) EV batteries.
[Comment] I’m paying attention to StoreDot, and you should too. They’re on a path to commercializing fast-charge solid state batteries for EVs.
Policy
[UK]Sunak rolls back EV and home heating policies, citing cost-of-living crisis | edie
UK Prime Minister Rishi Sunak has confirmed that his Government will weaken policy proposals relating to electric vehicle (EV) manufacturing, home heating and building energy efficiency.
[Comment] As a subscriber to Bloomberg Green, the material below was in a recent daily update. It shows the impressive progress the UK has made relative to other countries. So, I am somewhat sympathetic to a politician trying to thread the needle of climate ambition and voter concerns about inflation and affordability. Take for example the move to delay banning sales of internal combustion engine (ICE) cars to 2035 from 2030. The shift away from ICEs is still very much a policy-driven transition. Sure, battery-electric cars have come a long way technologically and through market-forces. But it is a fine example of what politicians will face as aggressive policy ambitions come closer to implementation. Watch for similar “slow-rolling” elsewhere when elections are at stake.
[Excerpt – credit Bloomberg Green] The UK has been the most effective at cutting emissions among the Group of Seven since 1990. The nation, which has been ruled by Sunak’s Conservative Party since 2010, has consistently met the legal obligations that were enshrined in the Climate Change Act passed in 2008 when the opposition Labour Party was in power. The law was at the time one of the few successful attempts to codify green action and still remains one of the most progressive pieces of climate legislation around the world.
