Plus: Read this speech; $2B for hydrogen in India; Total invest in CCS; AI gives more green lights; A plane to move wind turbine blades
Hi everyone,
I suggest you start with “Peter’s take”, read Amin Nasser’s speech, and skim through the rest of the headlines. Continue to forward this on to others you know and encourage them to subscribe.
Have a great Easter!
Peter
Peter’s take: Where’s the iPhone of the energy transition?
I’ve been tracking the energy transition for about 7 years now and over that time, I keep looking for the big innovations that will be truly transformative. Like the way the iPhone transformed the utility of the “Personal Digital Assistants” that we had been using up until then (anybody remember Palm Pilots?). The one area I remain focused on is energy storage. If we were to ever see a true innovation in that arena, it could make all the difference for things like backing up renewables or removing any uncertainties about the merits of EVs.
For now, however, government policy has been overwhelmingly the main driver of the transition. Not technological innovation. As such, it is going slower than we’d like. The rapid uptake of the iPhone wasn’t because of government policy, it was because it was a better product than the ones we had available previously. That means we need to work on getting policies right. Like the simplicity of energy efficiency. As noted by Amin Nasser recently, “over the past 15 years, efficiency improvements alone have helped reduce global energy demand by almost 90 million barrels per day of oil equivalent.”
If you only have time for one article, read Amin Nasser’s speech at CERAWeek – see red font and link below in the first story under Finance & Sentiment.
Finance & Sentiment
Saudi Aramco CEO says energy transition is failing | CNBC
[Excerpt] Nasser said alternative energy sources have been unable to displace hydrocarbons at scale, despite the world investing more than $9.5 trillion over the past two decades. Wind and solar currently supply less than 4% of the world’s energy, while total electric vehicle penetration is less than 3%, he said. Meanwhile, the share of hydrocarbons in the global energy mix has barely fallen in the 21st century from 83% to 80%, Nasser said.
[Comment] I am always cautious about posting anything in the way of projections, but here Nasser is calling out the facts as they exist today. He calls on policy makers to “abandon the fantasy of phasing out oil and gas”. Yet the progress made thus far is in large part because of policy choices. Too often, I see the focus of government and advocacy groups is to target the “production” of oil and gas. Instead, we ought to be addressing the problem at its source – the ways in which we continue the demand for oil and gas in everyday life. Which is why you’ve been hearing me advocate for things like net zero building codes, denser/more efficient cities that have amenities like walkable/bikeable mixed-use neighborhoods, green spaces, etc.
Nasser’s short speech at CERAWeek is worth reading. In it, he calls out five hard realities of the energy transition. A colleague reminded me recently: don’t read everything you believe. This is a call to listen to someone you might not otherwise give a chance – like the CEO of the world’s largest oil and gas company. His call to actions are refreshing: “We should ramp up our efforts to reduce carbon emissions, aggressively improve efficiency, and introduce lower carbon solutions.” Improve efficiency. Wait…haven’t I been saying exactly that with how we build cities? Chalk one up for Peter.
Shell Weakens 2030 Emissions-Cut Target in Move Away From Clean Power | Financial Post
Shell Plc weakened its targets for carbon-emissions cuts in the coming decade, while maintaining the ambition of becoming a net zero company by 2050. [Excerpt] Under Sawan, who took over from Van Beurden last year, Shell has promised a “ruthless” focus on boosting investor returns. The company is also seeking to narrow the valuation gap with US peers Exxon Mobil Corp. and Chevron Corp., which have maintained a greater emphasis on oil and gas.
Canada Releases Proposed IFRS-Based Sustainability Reporting Standards | ESG Today
[Excerpts] The release of the new standards may form a significant step towards the introduction of mandatory climate-related reporting requirements for Canadian companies. Following the release of the proposed standards, Canadian securities regulator the Canadian Securities Administrators (CSA) said that it would consider the final CSSB standards, with potential capital markets-focused modifications, for incorporation into a CSA rule, to become mandatory under Canadian securities legislation.
[Comment] Comments on the proposed standards are due June 10, 2024. Note the two-step process: first, after taking in feedback, the CSSB will release the proposed standards – expected at the end of September. Then the CSA will consider what to use in its formal rules for publicly traded companies.
Swiss National Bank Discloses Carbon Footprint, Won’t Change Investment Policy | BNN Bloomberg
The Swiss National Bank won’t change how it invests its huge foreign-currency reserves for environmental reasons, once again rebuffing calls for it to take a more active stance on climate change. It said it’s “not authorized to pursue structural policies” and pursuing such actions could make it more difficult for it to fulfill its primary mandate of inflation control.
Technology
Hydrogen
Indian state approves more than $2bn investment into two new green hydrogen-based ammonia plants | Hydrogen Insight
The state of Odisha in eastern India has approved two investment proposals for green ammonia projects, worth a combined 188.1 billion rupees ($2.27bn).
Carbon Capture
TotalEnergies joins Chevron, Equinor with acquisition of Talos Energy’s CCS business | World Oil
TotalEnergies has signed an agreement to acquire 100% of Talos Low Carbon Solutions (TLCS), American company focused on carbon capture and storage. After completion of the transaction, TotalEnergies will own a 25% share in the Bayou Bend project, alongside Chevron (50%, operator) and Equinor (25%). Bayou Bend project is a major CO2 storage project located along the Texas Gulf Coast, close to the company’s assets in the region.
CarbonCapture wants to take carbon removal down the cost curve | Canary Media
The aptly named startup just raised $80 million in private funding to try to prove out its “swappable” CO2-absorbing machines.
The Grid
Opinion: Alberta’s electricity future is bright — if we work together | Calgary Herald
[Excerpt] We don’t have to choose between clean electricity and reliable power, or between lower emissions and higher economic growth. Albertans can, and should, have all of that. To do this, we need bold thinking and urgent, co-ordinated action.
[Comment] A great call to action from Allison Cretney, Maureen Kolla and Terry-Lynne Duque working on “Alberta’s Electricity Future”, an initiative of the Energy Futures Lab, of which I am proud to be an Ambassador Fellow.
Urban Design & Buildings
AI Can Build a Brighter Urban Future — If We Let People Have a Say | Bloomberg City Lab
Red lights are obsolete. That seems to be the thinking behind Google’s latest fix for cities, which rolled out late last year in a dozen cities around the world, from Seattle to Jakarta. Most cities still collect the data to determine the timing of traffic signals by hand. But Project Green Light replaced clickers and clipboards with mountains of location data culled from smartphones. Artificial intelligence crunched the numbers, adjusting the signal pattern to smooth the flow of traffic. Motorists saw 30% fewer delays. There’s just one catch. Even as pedestrian deaths in the US reached a 40-year high in 2022, Google engineers omitted pedestrians and cyclists from their calculations.
UK confirms delay to heat pump manufacturing mandates | edie
The implementation of a mandate that will require heating systems manufacturers to shift towards heat pumps has been delayed by at least a year, following strong push-back from the industry and some MPs.
[Comment] Another proof point of a policy-driven transition, not a market-led one. Or at least an attempt at a policy-led approach.
[Australia] Heat pump rebates in “huge demand” as households get rid of gas hot water | OneStepOffTheGrid
Applications to Victoria’s hot water upgrade scheme are coming in at a rate of 700 a week, prompting the state government to add a further 8,000 rebates to cater to the “huge demand.”
[Comment] Again, supported by government subsidies.
This Cheap Street Fix Saves Lives. Why Don’t More Cities Do It? | Bloomberg City Lab
“Daylighting” intersections to improve visibility for drivers is an effective way to make crosswalks safer for pedestrians. Here’s why it works so well.
Small Modular Reactors
The AI industry is pushing a nuclear power revival — partly to fuel itself | CNBC
[Excerpt] “If you were to integrate large language models, GPT-style models into search engines, it’s going to cost five times as much environmentally as standard search,” said Sarah Myers West, managing director of the AI Now Institute, a research group focused on the social impacts of AI. At current growth rates, some new AI servers could soon gobble up more than 85 terawatt hours of electricity each year, researchers have estimated — more than some small nations’ annual energy consumption.
Energy Storage
Construction starts on Australia’s biggest battery, to replace Collie coal | RenewEconomy
Construction is underway on will be Australia’s biggest battery project; the giant four-hour Collie battery energy storage system being built by Synergy to soak up Western Australia solar during the day and replace coal in the evening peak. The battery, which will have a 500 MW/2000 MWh capacity, got its final approvals in December, last year, for development next to the Collie Power station in WA’s south-west.
Sodium-ion: ‘Perfect for applications where energy density is not paramount’ says BMZ CEO | Energy Storage News
[Excerpts] Sodium-ion has theoretical advantages that could make it complementary to lithium-ion in the battery market, if not a direct competitor.
[Comment] Sodium-ion batteries can be produced much more cheaply, are not as vulnerable to lithium-ion-related supply-chain issues and could have a safety advantage. Provided space is not an issue.
Home battery capacity equals that of pumped hydro in Germany | RenewEconomy
[Comment] A couple of quick facts: about 2 million single family homes in Germany will have batteries by the end of 2024; The total capacity of household storage devices now has reached about 6 gigawatts.
Texas installs another big solar + battery storage project | electrek
[Excerpt] Enel North America has started constructing the Ables Springs Solar + Storage Project in Kaufman County, near Dallas. The project pairs a 186-megawatt (MW) solar farm with 115 MW/169 MWh battery storage.
Solar and Wind
Radia’s WindRunner: Giant Cargo Plane to Revolutionize Wind Power by Transporting Massive Turbine Blades | BNN Breaking
Image: Radia
Radia’s WindRunner, a groundbreaking cargo plane, seeks to revolutionize wind power by enabling the transport of massive turbine blades, promising to reshape the energy and aerospace industries.
Massive First Nations solar-hydro project aims to be first to export green ammonia | RenewEconomy
[Excerpt] Arena says the First Nations-led feasibility study will start straightaway and take around five months to complete. If the project is proven feasible, the plan is to build 1,000 MW of solar and 850 MW of electrolysis capacity on lands owned by the indigenous MG Corporation and to produce 50,000 tonnes a year of renewable hydrogen.
[Comment] Lots of ambition here for this project in Western Australia. It comes with about $1.7 million in government support for the study.
South Fork Wind becomes first US utility-scale offshore wind farm to complete construction | Utility Dive
The completion of Ørsted and Eversource’s 130-MW project gets New York closer to its goal of deploying 9 GW of offshore wind by 2035.
Transportation
Waymo starts fully autonomous rides in LA; Austin later this year | electrek
[Excerpts] In total, the area covers approximately 63 square miles – a larger area than Waymo’s 47mi² San Francisco service area, but much smaller than the 180mi² area that Waymo operates in in Phoenix. So if you’re interested, you better hop on the waitlist quick – or find a time machine, because it already has 50,000 Angelenos on it, so if you join today you might be waiting for a while.
Biden admin debuts infrastructure plan to electrify nation’s trucks by 2040 | electrek
The Biden Administration has released the first-ever strategy document detailing its plan to target specific freight corridors for infrastructure improvement, with the intent of helping to reach its goal of 100% zero-emission new truck sales by 2040. [Excerpt] These vehicles tend to drive along specific routes…with 75% of truck traffic traveling on just 4% of the nation’s roads.
Germany Needs Sixfold Jump in New EV Sales by 2030 to Meet Aim | BNN Bloomberg
[Excerpt] Sales of new EVs would have to quadruple in the next three years and rise sixfold by 2030 to reach Germany’s goal of having 15 million such cars on the road, according to a lobby group for the renewable-energy sector.
Nissan and Honda confirm new EV partnership as they look to play catch up with Tesla, BYD | electrek
[Excerpt] The Japanese automakers will explore new software platforms, EV components, and other related tech. With Nissan looking to move to a common EV powertrain, the automakers could partner up on purchasing. They may also collaborate on a new shared EV platform.
Volvo’s new EVs are attracting Ferrari-like wait times because they are ‘the right products’ | electrek
Despite reports suggesting EV demand is cooling, Volvo’s new EVs, including the EX30 and EX90, are attracting Ferrari-like wait times. The head of online business at Volvo Germany, Alex Zurhausen, says customers are waiting because they have “the right products at the right time.” [Comment] The story appears to suggest customers have been waiting 2 years.
Shell Plans to Divest 1,000 Retail Sites in Shift to EV Charging | BNN Bloomberg
[Excerpt] As the EV charging business grows, Shell expects an internal rate of return of 12% or higher. The company didn’t give details on which retail sites it would divest.
Halifax electric commuter ferry project gets green light, $258.7 million in funding | Electric Autonomy
A fleet of five electric ferries will soon be plying the Bedford Basin, linking new terminals in Bedford and Halifax, filling a key plank in regional transit strategy.
Biden’s Newest Rule on Auto Emissions Set to Boost Electric Car Sales | BNN Bloomberg
The Biden administration moved Wednesday to throttle pollution from the nation’s cars and light trucks, imposing tailpipe emission limits so stringent they will compel automakers to rapidly boost sales of battery-electric and plug-in hybrid models. The requirements could nearly halve fleet average emissions over existing standards for 2026.
Circular Economy
Toronto-based battery recycling company Li-Cycle received an investment of $75 million
This from Circularity Weekly: Toronto-based battery recycling company Li-Cycle received an investment of $75 million this week from mining and minerals giant Glencore, which previously invested $200 million. The two companies already had an existing, long-term partnership. This new round will allow Li-Cycle to improve its liquidity position and continue to evaluate its hub-and-spoke model for battery recycling (via Business Wire).