Plus: Big renewables plans in UAE; New battery plant coming to Ontario; Tesla delivers first cars from German gigafactory
Hi everyone,
Rather than wait the usual two weeks, I am issuing what I’ve accumulated this week as there was quite a bit to share. Jump to my comments and the feature stories, then skim the headlines. Want to thank me? Consider forwarding on to someone you know.
Thanks,
Peter
Observations & Comments
As an Energy Futures Lab Fellow for the past few years, I have had the privilege of contributing my thoughts to the Energy Futures Policy Collaborative. The report is soon to be launched and you’ll want to consider registering for the webinar on April 8 to hear all about it. See the first Feature Story below. It’s been two years in the making and represents a truly collaborative effort among dozens of experts.
The scale of ambition for solar and wind never gets dull. Check out the many stories from just one week in that section. United Arab Emirates’ Masdar wants to build 200GW of renewables capacity. To give you an idea of scale, that’s more than the ~149GW of total electricity generating capacity in Canada or or about 2.5X the total generating capacity in California.
Not to be missed is the policy section at the bottom, where you’ll learn about Netherlands committing US$14 billion of incentives in 2022 for sustainable energy production, on top of the USD$7.8 billion committed in the two previous years. With the war in Ukraine as an important driver, the Netherlands also accelerated the confirmation of available areas for offshore wind capable of 10.7GW across 5 areas. And over in China, local governments have the incredible ambition to add 600GW of renewables from 2021 to 2025 – an amount if met, would meet the country’s target five years early.
Feature Stories
INVITATION: Hydrocarbons in a Net-Zero Economy? The Investment Opportunity and Why Policy Matters
Energy Futures Lab is hosting a virtual panel on April 8 at 12:30 p.m. MST that will explore the role of public policy in attracting investment into “future-fit hydrocarbon” industries, building on the foundations of the oil and gas sector, and looking into new opportunities that advance action on climate. Register here
Suburbia is Subsidized: Here’s the Math
Last week I tried to provide a link to this YouTube video, but it didn’t come through, so offering it again here. Worth the 10 minutes.
Finance & Sentiment
SEC Proposes Rules to Enhance and Standardize Climate-Related Disclosures for Investors | SEC and Axios
The Securities and Exchange Commission proposed rule changes that would require registrants to include certain climate-related disclosures in their registration statements and periodic reports, including information about climate-related risks that are reasonably likely to have a material impact on their business, results of operations, or financial condition, and certain climate-related financial statement metrics in a note to their audited financial statements. The required information about climate-related risks also would include disclosure of a registrant’s greenhouse gas emissions, which have become a commonly used metric to assess a registrant’s exposure to such risks.
Canada to sell green bond as push to exit oil rises amid war | BNN Bloomberg
Canada started taking orders for its inaugural green bond amid a renewed global push to reduce dependence on fossil fuels after the Russian invasion of Ukraine brought reliance on non-renewable sources of energy back into the spotlight. The world’s fourth largest oil and fifth biggest natural gas producer is marketing $5 billion (US$4 billion) of December 2029 bonds which may yield 2.5 basis points over the Canada bond due June 2029.
Swiss Re says no to insuring new oil and gas to protect climate | Reuters
Swiss Re, the world’s second biggest reinsurer said it would no longer insure most new oil and gas projects following mounting pressure on big business to do more to help the world cap global warming.
Shell to invest up to 25 bln pounds in UK’s energy sector; 75% in low carbon | Reuters
Shell will invest up to 25 billion pounds ($33 billion) into the energy system in Britain over the next decade, a senior executive at the oil major said, and over 75% of which will be funnelled into zero-carbon products and services.
Technology
Hydrogen
UAE, Germany sign ‘blue hydrogen’ contract in Abu Dhabiv | Euractiv
German vice-chancellor Robert Habeck has secured several hydrogen cooperation contracts with the United Arab Emirates (UAE), with the first blue hydrogen expected to be shipped to Germany in 2022.
Delta joins Airbus to explore hydrogen-powered flights | edie
Delta has signed a Memorandum of Understanding to become the first US-based airline to collaborate with Airbus on the latter’s existing efforts to commercialise the use of hydrogen for aircrafts. Airbus recently agreed to a partnership with engine manufacturers to enable the use of hydrogen in combustion engines, with an overall aim of integrating it into a zero-emission aircraft by 2035.
CS Energy to build 50 tonne green hydrogen and refuelling plant in Western Downs | RenewEconomy
The Queensland state government is committing A$28.9 million towards a renewable hydrogen demonstration plant and refuelling facilities on the Western Downs, in a move the government expects will help to fuel heavy transport in the region.
Carbon Capture
Occidental plans up to $1 billion for facility to capture carbon from air | Nasdaq
U.S. oil producer Occidental Petroleum on Wednesday outlined plans to advance its energy transition business, including spending between $800 million and $1 billion on a facility to remove carbon dioxide (CO2) from the air.
Nuclear
Belgium to Extend Life of Nuclear Reactors for Another Decade | BNN Bloomberg
Belgium’s government will work to extend the life of two nuclear reactors beyond their original shutdown date of 2025 to secure supply amid record high energy prices.;
Natural Gas
Chickahominy Power cancels plans for natural gas plant in Charles City | Virginia Mercury
A second natural gas plant planned for Charles City County has been canceled, with the developers citing “opposition from outside interests and regulations” that “made it impossible to deliver natural gas to the site.” Specifically, the developers blamed “the renewable energy industry and state legislators that supported them” for the cancellation.
The Grid
CAISO approves nearly $3B of transmission projects to prepare for California’s clean energy goals | Utility Dive
The California Independent System Operator (CAISO) approved a transmission plan Thursday that includes 23 projects, estimated to cost nearly $3 billion, to cope with the dramatic increase in renewable generation and forecasted load growth in its footprint.
Energy Storage
Windsor picked for new $5B EV battery plant | Yahoo Finance and Electric Autonomy
Dignitaries at the announcement. Credit: Stellantis
Automaker Stellantis and South Korean battery giant LG Energy Solution are forming a joint venture to open a new electric vehicle battery production plant in Windsor, Ont. The joint venture will invest CAD$5 billion to establish a new lithium-ion battery manufacturing plant in Windsor that will supply “a significant portion” of Stellantis’ North American vehicle production with batteries. Construction of the plant is scheduled to begin later this year, and production is expected to start in the first quarter of 2024. Stellantis said that the plant will have an annual production capacity of 45 gigawatt hours of batteries.
AGL Gets Greenlight for Liddell Battery in Push Away From Coal | BNN Bloomberg
AGL Energy Ltd., Australia’s top source of scope one greenhouse gas emissions, has received planning approval to build a 500 megawatt battery on the site of a coal-fired plant that is soon to be closed in New South Wales state.
Tesla Megapacks picked for Edify’s 300MWh Australia battery portfolio | Energy Storage News
Tesla has been contracted to provide 150MW/300MWh of its Megapack battery energy storage system (BESS) solution for projects in development by Edify Energy in Australia.
Solar and Wind
Shell Is Pushing to Build Six Offshore Wind Farms Along Brazil’s Coast | BNN Bloomberg
Energy giant Shell Plc is seeking environmental permits to develop its first offshore wind farms along the coast of Brazil as the company pushes to speed its transition away from fossil fuels. The London-based oil major proposes to build six projects with a combined capacity of 17 gigawatts, which would rival the output of 15 nuclear reactors.
Masdar wants 200GW of renewables capacity | pv magazine
The state-owned UAE clean power developer appears to have quadrupled its previously announced ambition today as it announced its $20 billion renewables portfolio rose from 10.7GW to more than 15GW last year.
OX2 files for permission to build 5.5GW wind farm in Sweden | Power Technology
Swedish renewable project developer OX2 has applied for permission to develop the 5.5GW Aurora Offshore Wind Farm in the Swedish Exclusive Economic Zone. The wind farm will have the capacity to generate 24TWh of clean energy a year using up to 370 turbines.
ArcelorMittal, Greenko partner on a 975MW renewables-plus-storage project | pv magazine
UK-headquartered ArcelorMittal will own and fund a hybrid wind-solar project with pumped hydro energy storage for round-the-clock RE supply to the Hazira plant of its joint venture ArcelorMittal Nippon Steel India. Greenko will design, construct and operate the project.
Total Eren team targets 430MW Zambian renewables drive | reNEWS.biz
Total Eren and Africa-based energy company Chariot Transitional Power are teaming up with mining and metals company First Quantum Minerals to develop 430MW of wind and solar projects in Zambia as part its commitment to reduce its carbon footprint by 30% by 2025.
Ørsted completes 298-MW onshore wind farm in Nebraska | Renewables Now
Ørsted has completed the 298-MW Haystack wind park in Nebraska which raises its onshore wind and solar capacity in operation across the US to above 3 GW.
AEP brings 998MW Traverse wind online in Oklahoma | reNEWS.biz
American Electric Power (AEP) has brought online the 998MW Traverse Wind Energy Center in the US state of Oklahoma.
The 365-turbine project is now providing 3.8 million megawatt-hours of electricity to AEP’s Public Service Company of Oklahoma (PSO) and Southwestern Electric Power Company (SWEPCO) customers in Oklahoma, Arkansas and Louisiana.
Autonomous Vehicles
Mercedes To Accept Liability When Autonomous Drive Pilot Is Engaged | InsideEVs
Drive Pilot is a Level 3 system, and Mercedes will be the first automaker to accept legal responsibility when such a system is active. Mercedes’ new Drive Pilot system, which helps pilot cars – including the all-electric EQS sedan – has already been approved for use on all German highways. However, the technology only works on select highways, and at speeds below 40 mph. That said, in areas where it’s approved to function, it will handle the car’s acceleration, steering, and braking.
Transportation
VW Group commits $7.1 billion to North America, plans 25 EVs for U.S. by 2030 | Reuters
Volkswagen AG plans to invest at least $7.1 billion over the next five years in North America and add 25 new electric vehicles there by 2030, including a recreation of VW’s classic Microbus.
LG announces a $1.7B ramp-up, 1,200 new jobs, at its Michigan EV battery factory | Electrek
LG Energy Solution is investing $1.7 billion and creating 1,200 jobs at its existing EV battery factory in Holland, Michigan. The expansion of the factory will quintuple its capacity to produce EV battery components.
Japan’s Suzuki Motor to invest $1.3 billion for electric vehicle production in India | Reuters
Japan’s Suzuki Motor plans to invest about 150 billion yen ($1.26 billion) to produce electric vehicles and batteries in India, Japanese media reported on Saturday. Suzuki has decided to build a new electric vehicle production line in India with the aim of starting operations as early as 2025.
Tesla delivers the first vehicles from its German Gigafactory | Engadget
Tesla has delivered the first 30 Model Y cars manufactured at its $5.5 billion Grenheide, Germany Gigafactory that officially opened. Tesla plans to produce 5,000 to 10,000 vehicles per week by the end of 2022, and the plant will eventually have a production capacity of 500,000 vehicles per year and 50 gigawatt hours (GWh) of battery power, more than any other German factory.
Einride partners with Maersk to electrify over one million shipments over the next five years | Electrek
EV freight technology company Einride has announced a new partnership with Maersk to provide its Freight Mobility platform to the latter’s fleet. The transition will include 300 Einride electric trucks in what the companies are calling the largest operational contract for electric heavy-duty road freight to date.
Just for fun, check out this short video of one of the smallest EVs around.
Circular Economy
Closing the Plastics Circularity Gap
From Circularity Weekly by GreenBiz: 86 percent of all plastics produced will be landfilled, incinerated or leaked into the environment by 2040 if we continue with business as usual. But strategic interventions could reduce the plastic circularity gap by 59 percent, cumulatively diverting 4.5 billion metric tonnes of plastics by 2040 — That’s according to Google’s just-released report, Closing the Plastics Circularity Gap (via Resource Recycling).
Policy
Netherlands doubles offshore wind energy targets for 2030; adds 3 areas for 10.7GW | REVE
The Dutch government on Friday doubled its forecasts for offshore wind power generation in the country by 2030 as the Netherlands seeks to curb its reliance on fossil fuels and imports from Russia. The new target is partly thanks to the designation of three new areas in the North Sea where offshore wind farms will be built. Two other zones previously defined were also confirmed. The total capacity will double to around 21 GW by 2030 with the five zones, it added.
Netherlands expands SDE++ budget to US$14bn, green hydrogen eligible for the first time | PV Tech
The Dutch government has made a record €13 billion (US$14.3 billion) available for its 2022 Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++) that is now open to green hydrogen projects linked to a wind or solar farm. In 2020, the government awarded more than €2.1 billion in its first subsidy scheme, then expanded it with €5 billion in 2021.
China Could Hit 2030 Renewable Target by 2025 on Local Ambitions | BNN Bloomberg
China could hit its 2030 renewables target at least five years early if local governments meet the ambitious goals they’ve laid out. Development plans from 22 of China’s 34 regional governments are aiming for more than 600 gigawatts of renewable capacity combined to be added from 2021 through 2025. That would more than double the 535 gigawatts of wind and solar capacity in place at the of 2020 and approach President Xi Jinping’s target of having 1,200 gigawatts of renewables in place by the end of the decade.
UK governments slashes VAT for residential PV, heat pumps to 0% | pv magazine
The UK government announced it will reduce the value-added tax (VAT) applied to heat pumps and solar modules used in residential applications from 5 to 0%.