Plus: Banker bonuses tied to ESG; Ikea sells green power to customers; Homeowners want back-up batteries
Hi Everyone,
Maybe the summer vacation season isn’t the time to be asking pithy questions aimed at Canadians, but that’s what is on offer again this week. With some of my feeds taking time off or just lighter on stories, I thought I’d take the opportunity to say more myself.
Continue to share this around and encourage others to subscribe.
Thanks,
Peter
Observations, Comments & Questions
In the previous issue of Energy Shift, I put forward the premise that Canada has the opportunity to benefit economically from the supply of oil and gas through the transition, knowing all pathways to net zero still call for continued use of oil. I asked for your thoughts. Answers varied. Here is a bit of what I heard: production will be left to the jurisdictions with the lowest cost and lowest emissions. I agree with the former, but the latter may not be in the same place. I expect production will over time gravitate away from publicly traded companies to national oil companies, purely on the basis of investor scrutiny. Another comment: asking who gets to produce oil through the transition is the wrong question. From one astute reader: the question we should be asking:
“How can we break society’s oil habits such that we are not suffering the terrible impacts of global climate change?” I think we all have a role to play somewhere in the complex and difficult answer to that question. I agree with your implication that this is a demand-driven problem; however, the solution must come from all parts of society – policy makers, energy producers, goods manufacturers, and consumers.
I love that question and it has been a recurring theme in many of my conversations. Especially in how governments can establish the right set of carrots and sticks to incentivize shifts across the economy. I’ve been been skimming lots of “pathways to net zero” reports. Some common themes aimed at consumers: green the grid, pursue energy efficiency, electrify heating and passenger cars, etc. Interested in reading more? Start with the International Institute for Sustainable Development’s “10 Ways to Win the Global Race to Net-Zero” (IISD). Jump to p. 36 for the top 10 list. Less practical, the advice by a panel struck by the Canadian federal government offers a higher level view with 10 values and principles, with a good reading list at the back: Net-Zero Pathways Initial Observations June 2021 (Net Zero Advisory Board). Hoping they can offer something more specific soon. Lastly, the Canadian Institute for Climate Choices offers a set of “safe bets” and “wild cards”: Canada’s Net Zero Future (Canadian Institute for Climate Choices)
Yet with all that advice, I can’t say I see governments here in Canada embracing the urgency by helping consumers with the low hanging fruit: energy efficiency and electrification. Building codes, heat pumps, retrofits, etc, I expect more. So where should government prioritize spending: decarbonizing domestic production or focusing on the consumer to reduce demand for oil and gas? Is both too much to ask?
Feature Stories
- The UK, India and Russia all recently released strategies for boosting the production of hydrogen. China, meanwhile is plowing ahead with a big green hydrogen project – check out the Hydrogen section below. For its part, Canada released its strategy in December 2020. Bloomberg (via JWN) provides this analysis of plans in the UK – worth a read.
U.K. plans subsidy-driven hydrogen boost on path to net zero
Hydrogen could be vital to U.K. efforts to eliminate greenhouse gases by changing the way vehicles are fuelled, factories are powered, and homes are heated, Business Secretary Kwasi Kwarteng said.
In-depth Q&A: How will the UK’s hydrogen strategy help achieve net-zero?
Read this piece from Carbon Brief if you want to dig a bit deeper to better understand the use cases, the ‘contract-for-difference’ approach to incentivize development, and myth-busting that ‘blue’ hydrogen is worse than natural gas.
- Here is something worth learning about. Turns out it is very hard to replace old EV batteries. Granted, new EV batteries are far better than the first generation ones, so this issue is likely limited to old EVs. As this piece from National Post explains, the experience for Nissan Leaf owners is frustrating. Nissan Canada appears to only want to put its batteries in new vehicles, quoting CAD$13,500 to replace the battery. For a Tesla Model 3: CAD$20,000. Now there is some sticker shock. As for newer EV batteries, it is possible that they outlast the rest of the vehicle, in which case they still have a second life being put to work for grid-level storage of renewable power.
The big looming problem with old EVs: It’s really, really hard to change the battery
Even on a vehicle with only 150,000 km, battery replacement can be more expensive than the car’s value
- I thought this was worth drawing your attention to: IKEA to start selling renewable energy to homes in Sweden. This demonstrates a few points: they are able to insert themselves between existing utilities and get right up close to the customer and in doing so disrupting incumbent business models. Furthermore, they are giving customers something they want and appreciate: green power and convenient visibility into power use through an app. As noted by BNN Bloomberg: “Customers will pay a flat monthly fee in addition to the wholesale rate of power traded on the Nord Pool power exchange in Oslo, and they will be able to track their consumption in an app on their phones.”
Finance & Sentiment
Banker bonuses tied to ESG metrics are on the rise in Europe | BNN Bloomberg
European bankers will soon have to show they’re contributing to a cleaner environment, a better society and good governance — or face a smaller pay package.
Google owner outlines how it is spending proceeds from world’s largest corporate sustainability bond | edie
August 2020 saw Google’s parent company Alphabet Inc issuing what it claimed was the largest corporate sustainability bond in history. It has now revealed how it has spent 61% of the $5.75bn (£4.4bn) proceeds. Funding was spread widely: renewable PPAs, green buildings, energy efficiency, electric vehicles and charging points, waste reduction, even affordable housing and loans empowering the black community.
Venture capital veteran Sacca returns with $800 million for clean tech | Financial Post
Venture capitalist Chris Sacca is launching four climate tech funds worth about $800 million in total through his new firm Lowercarbon Capital LLC. Like other climate-tech VCs, Sacca wants his startups to reduce or remove emissions ideally at the scale of billions of tons each year.
Technology
Hydrogen
China Approves Renewable Mega-Project Focused on Green Hydrogen | BNN Bloomberg
Inner Mongolia’s Energy Administration has given the go ahead to a cluster of plants in the cities of Ordos and Baotou that will use 1.85 gigawatts of solar and 370 megawatts of wind to produce 66,900 tons of green hydrogen a year, the Hydrogen Energy Industry Promotion Association said in a report.
ESB and dCarbonX launch green hydrogen storage project in Ireland | EE Online
This project – pending licence and planning approvals – could have the potential to store up to three TWh of green hydrogen and hydrogen carriers, the equivalent of approximately 10 per cent of current Irish annual electricity consumption.
Carbon Capture
Cost to Bury Carbon Near Tipping Point as Emissions Price Soar | BNN Bloomberg
Skyrocketing carbon prices and a “code red” warning about the threat posed by climate change are giving fresh momentum to a technology that captures and removes greenhouse gas emissions so they can be buried.
Santos counts on $70/tonne carbon price for flagship CCS project | RenewEconomy
Oil and gas company Santos is assuming a carbon price of nearly $70 a tonne as it juggles the finances of its proposed flagship carbon capture and storage project in the Moomba gas fields in South Australia.
Energy Storage
EnergySage: Emergency backup power driving solar customers towards battery storage | Energy Storage News
Users of US solar price comparison site EnergySage are increasingly drawn towards battery storage through concerns around having enough power in emergency situations, with 70% of users now requesting storage with their solar quotes.
Chinese battery giant CATL’s bet on sodium is a hedge against lithium | Quartz
A Chinese company became the first major car battery manufacturer to unveil a sodium-ion battery last week (July 29). CATL, China’s homegrown lithium-ion battery giant, counts brands like Tesla and Volkswagen among its customers, and plans to set up a supply chain for the pioneering technology by 2023.
US start-up Ambri secures $144 million for liquid metal battery commercialization | pv magazine
Ambri plans to commercialize its calcium-antimony liquid metal battery chemistry and open manufacturing facilities to deliver projects in 2023 and beyond.
Australia to host 600 MW/2400 MWh storage facility | pv magazine
Renewables developer Syncline Energy has revealed plans for a 600 MW/2400 MWh battery storage project near Melbourne.
US-based Powin in multi-gigawatt LFP supply deal with Chinese supplier EVE | Energy Storage News
Powin Energy will purchase lithium iron phosphate (LFP) cells from Chinese company EVE Energy and at the same time is “actively in discussions” to try and source cells from US-based facilities for the future. Oregon-headquartered battery energy storage system (BESS) solutions manufacturer Powin has signed up Shenzhen Stock Exchange-listed vendor EVE to become a strategic cell supply partner for its stationary energy storage projects.
AGL signs first deal with Wärtsilä for 250MW South Australia battery project | Energy Storage News
Major Australian energy retailer AGL has contracted Finnish technology company Wärtsilä to supply a battery energy storage system (BESS) for a 250MW / 250MWh project at Torrens Island, South Australia.
Renewable Natural Gas
Anaerobic digestion dangerously overlooked as immediate climate solution | Bioenegy News
The World Biogas Association (WBA) has renewed its call for the potential of the biogas industry to be ‘urgently unlocked’ so that it can help deliver the “rapid reductions in greenhouse gas (GHG) emissions and, in particular, methane” that the IPCC says is needed to address the climate emergency.
Solar and Wind
China’s MingYang unveils world’s largest offshore wind turbine | Splash247
China’s top private wind turbine manufacturer, MingYang, has introduced the world’s largest 16 MW offshore wind turbine with a 242 m diameter rotor, 118 m long blades, and a staggering 46,000 sq m swept area, the equivalent of more than six soccer fields
Credit: MingYang
Financial close for 1.5 GW solar PV project in Saudi Arabia | pv magazine
The Sudair Solar PV plant is the first project under the renewable energy program run by Saudi Arabia’s Public Investment Fund. The facility is owned by energy giants ACWA Power and Aramco, as well as electricity holding company Badeel.
Spain announces another 3+ GW renewables auction as answer to high power prices | BNN Bloomberg
The Spanish government is moving to bring more solar and wind farms online after power prices soared to multiple records this summer. Spain plans to support 3.3 gigawatts of new solar and wind energy with the expectation that the extra supply will help drive down electricity prices. [Comment] The last renewable auction in January allocated 3.034GW of clean energy capacity at and average price of €24.47/MWh ($29.62) consisting of about two thirds solar and one third wind.
108-mile high voltage underground transmission line to take wind and solar power to NYC | Energy Storage News
“The Excelsior Connect project is a combination of a couple of thousand megawatts of upstate new renewable energy — so wind and solar — a 108 mile underground HVDC line that Avangrid is going to be building and then Key Capture’s 150MW battery that will sit at the northern end of that line and just help ensure that the wind and solar can be delivered downstate when it’s needed,” Quarles said.
Italian energy giant plans another 1,000MW renewables in Australia, seeks retail licence | RenewEconomy
Italian energy giant Enel – the biggest utility in Europe in terms of market value and customers – is seeking a retail energy licence in Australia to support its plans to grow its solar and wind portfolio by another 1,000MW and provide power to industrial and commercial customers.
Uzbekistan wants to tender another 900 MW of PV | pv magazine
The Uzbek Ministry of Energy plans to hold two more solar tenders for a series of PV plants spread across the Kashkadarya and Fergana, Bukhara, Khorezm, and Namangan regions. It also revealed that there are 1.29 GW worth of projects under construction in the country.
Transportation
Tesla battery supplier CATL is raising $9 billion to accelerate production | Electrek
Most of the funds will be used to accelerate plans to deploy capacity at three Chinese factories. CATL plans to reach a global production capacity of 230 GWh by the end of the year. At an average pack size of 60 kWh, it’s enough battery capacity to produce almost 4 million electric cars per year.
Amazon-Backed Rivian in Talks for $5 Billion Texas Plant | BNN Bloomberg
Rivian Automotive Inc., the electric-vehicle startup backed by Amazon.com Inc., is in talks to invest at least $5 billion to build a factory near Fort Worth, Texas, according to a document obtained by Bloomberg News.
Toronto takes step towards AV-readiness, commissions new high definition, 3D map | Electric Autonomy
Ecopia AI, a local leader in digital mapping, announced it has partnered with the city and the province of Ontario to develop a high-definition 3D map of the city that will be available for the city’s use and for licensing by autonomous vehicle technology developers. The technology is financed in part by Ontario’s Autonomous Vehicle Innovation Network (AVIN) and could improve the movement and safety of Toronto’s autonomous vehicles.
Policy
California energy commission mandates solar panels for new buildings starting in 2023 | Axios
The California Energy Commission voted to require solar panels and battery energy storage systems in new commercial buildings and certain multifamily residences beginning in 2023.
UK Government funnels £91m into ultra-fast charging projects and extended-range EVs | edie
Projects that increase the range of electric vehicles (EVs), create batteries that can charge in as little as 12 minutes and hydrogen-powered heavy goods vehicles (HGVs) have all been awarded a share of £91m from the UK Government.