Plus: 115 meter long turbine blades; More pressure to disclose climate risks; Canada budgets for CCS tax credit
Hi everyone,
I wish you a happy early Easter! Jump to my comments. Scan the rest of the headlines at your leisure.
Thanks,
Peter
Observations & Comments
The sizes of solar and wind projects keep getting bigger. The metric used is megawatts of capacity or in the case of projects in China – gigawatts. It’s been pointed out to me concept of “effective capacity” – what actually shows up as being generated for consumers – often much less after accounting for when the wind isn’t blowing, the sun isn’t shining – or curtailment when there is not enough room on the grid. The first feature story helps us visualize the different forms of electricity generation in the US over time. Be careful to note the different scales on the graphs. The excerpt I included is from the end of Nat Bullard’s article, but I recommend you read it. I thought I’d underscore a point he makes: long term energy storage is still key to unlocking high proportions of end use power generation. Proponents of high renewables will point to transmission to get the power from where it is being generated to where it is needed. In practice, there are few examples where new long distance transmission lines are being built. Some of that is nimbyism, for sure. Government support seems key for the examples I’ve seen so far. So where does that leave us for urgently decarbonizing electricity? Enter Small Modular Nuclear. It comes with its own drawbacks, but all options need to be considered. More geothermal as well. Pilots for both will be important to watch. As for hydrogen, I remain watchful. All the energy losses to pretzel our way for using hydrogen as an energy storage medium suggests this will be out of reach in the near term. If I’m missing something here, please steer me right.
I continue to see examples of the urgency in Europe to wean itself off Russian oil and gas – whether its heat pumps in the UK or France wanting to build 40GW of offshore wind. Germany, Portugal and Spain also provide examples of increasing incentives, raising ambitions for clean energy or streamlining permitting processes.
As for all the other signposts, you’ll see some policy stories salted in sections where I wanted to make sure you knew about these decisions by governments.
Lastly, I wanted to bring to your attention the event noted below. Thanks to Jason Switzer at carbonNEXT for bringing that to our attention.
Upcoming Event: Carbon and Hydrogen Innovation Showcase
Readers are invited to join CRIN and carbonNEXT for the third webinar in our Carbon and Hydrogen Innovation Showcase series! On April 13 from 9-11am MT, we are excited to host Joy Romero (Canadian Natural Resources) and Anamika Mukherjee (Cenovus) who will share insights into the Oil Sands Pathways to Net Zero initiative and feature pitches from exciting CCUS and H2 startups, including some of the first group of carbonNEXT’s carbontech innovators! Pitches will be followed by breakout rooms where you will have the chance to ask questions and find out more about these technologies and how they can address the needs of the oil and gas sector today. Register here!
Feature Stories
Yesterday’s Energy Solutions Are Tomorrow’s Energy Problems
Nathaniel Bullard | BNN Bloomberg
[Excerpt] Complementing their low cost, variability and seasonality will certainly require massive amounts of energy storage capacity. But it could require more — potentially hydrogen or bio-methane used in conventional gas turbines, or even small nuclear reactors to quickly provide zero-carbon power. Long-term stability, coupled with deep de-carbonization, will mean building a great deal. It will also mean anticipating new challenges before they become systemic problems.
Siemens Gamesa is now producing 115-meter-long offshore wind turbine blades | Electrek
Spanish-German wind giant Siemens Gamesa has started production of its first B115 blades at its facility in Aalborg, Denmark. The SG 14-236 DD prototype, which will feature the new B115 blades that are 377 feet long – that’s 17 feet longer than an American football field – will be tested both on the company’s test stand in Aalborg, and also at the Østerild test center in late 2022.
Siemens Gamesa manufactures the blades using its IntegralBlade technology, in which the blades are cast in one piece and made from fiberglass-reinforced epoxy resin without any glued joints. They also feature Siemens Gamesa’s RecyclableBlade technology.
Finance & Sentiment
$7trn investor coalition pressures high-carbon companies to disclose climate risks | edie
BP, Shell and TotalEnergies are among the 17 companies which an influential coalition of investors are pushing for climate risk reports. [EXCERPT]: The letter states: “We understand that [your company] faces challenges in navigating a transition to a net-zero business model. However, the longer the Board delays making the net-zero accounting adjustments, the longer it will delay the needed shift in capital towards a low-carbon business model. Any misallocation of capital today increases the risk of larger impairments – and associated destruction of shareholder capital – in the future.”
Apple Allocates $3 Billion Green Bond Proceeds to New Carbon Free Materials, Clean Energy | ESG Today
Apple announced the release of its annual Green Bond Impact Report, highlighting investments made by the company with funds raised in its green bond issuance. According to the report, proceeds from Apple’s green bond offerings are being used to fund innovations for carbon neutral materials and clean energy projects, supporting the company’s sustainability targets, including its goal to become carbon neutral across its manufacturing supply chain and product life cycle by 2030.
Venture Investor Evok Raises $300 Million for Decarbonization Tech Fund | ESG Today
Venture investor Evok Innovations announced today that it has raised USD$300 million for its second decarbonization tech fund. At first close, the fund has already significantly surpassed Evok’s inaugural CAD$100 million energy transition technology-focused fund. The new fund saw participation from several new investors, including Export Development Canada, Royal Bank of Canada, and The Toronto-Dominion Bank joining as limited partners (LPs), as well as from returning LPs Suncor and Cenovus.
Shell UK to invest up to £25bn in energy sector; >75% to ‘propel the UK closer to net zero’ | Current±
Shell UK has announced it is to invest £20 to 25 billion in the energy sector over the next decade. More than 75% of this funding will go towards low carbon technologies, such as offshore wind, hydrogen, carbon capture utilisation and storage (CCUS) and electric mobility, the company said.
From VW to JPMorgan, the Unlikely Cast Behind Nickel’s Big Squeeze | BNN Bloomberg
Furious investors and traders. Evaporating liquidity. A market that many veterans simply describe as “broken.” It’s been three weeks since nickel was suspended on the London Metal Exchange after a 250% price spike and while trading has resumed, the market remains all but paralyzed.
CIBC Plans to Reduce Emissions Intensity of Oil, Gas Loan Book | BNN Bloomberg
Canadian Imperial Bank of Commerce plans to cut the emissions intensity of its lending to the oil and gas sector by 2030, part of a plan to reach net-zero emissions from its operations and financing activities by 2050.
A third of Britons considering switch to heat pumps to reduce Russian gas reliance | Current±
A third of Britons are now considering installing a heat pump in an effort to get off Russian gas, according to a new survey from the Energy & Climate Intelligence Unit (ECIU).
Munich Re Says It Won’t Insure East African Oil Pipeline | Market Watch
Munich Re has decided to opt out of the East African crude-oil pipeline, joining other financial institutions in rejecting the controversial project on climate concerns.
Technology
Hydrogen
Suncor is giving up on wind and solar to focus on hydrogen and renewable fuel | Financial Post
Suncor Energy Inc plans to divest its wind and solar assets and turn its focus to hydrogen and renewable fuel in its efforts to become a net-zero company by 2050.
E.ON and Australia’s FFI to explore green hydrogen shipments to Europe | Reuters
Germany’s largest energy group E.ON on Tuesday signed a memorandum of understanding with the green power arm of Australian miner Fortescue Metals to explore shipping green hydrogen to Europe and help wean itself off Russian gas. The agreement with Fortescue Future Industries (FFI) will look at ways to ship up to 5 million tonnes of hydrogen generated from renewables to Europe per year by 2030, the two companies said in a statement. Fortesque’s Andrew Forrest said it would represent an investment of around $50 billion, one of the largest ever energy investments of any kind.
E.ON and TES to import green hydrogen into Germany | Offshore Energy
European energy company E.ON and Belgian hydrogen company Tree Energy Solutions (TES) have agreed on a strategic partnership to import green hydrogen at scale into Germany.
Carbon Capture
Trudeau proposes tax credit to cover 50% of carbon capture technology cost | Financial Post
Prime Minister Justin Trudeau unveiled a 50-per-cent tax credit aimed at spurring investment in carbon capture and storage technologies — one the largest and most eagerly anticipated tax code measures outlined in the federal government’s new fiscal plan. The refundable investment tax credit for businesses will cover 50 per cent of the cost of equipment to capture CO2 through CCUS projects beginning in 2022, and is expected to cost the federal government $2.6 billion in the first five years of the program — reaching up to $8.6 billion by 2030. An additional credit of 37.5 per cent would cover equipment for transportation, storage and use of carbon dioxide emissions.
Climeworks Raises $650 Million in Largest Round for Carbon Removal Startup | BNN Bloomberg
Swiss startup Climeworks AG has raised 600 million francs ($650 million) to scale up its technology that sucks carbon dioxide directly from the air. Climeworks will use the funds to build a 40,000-ton capture plant in the next three years, according to Chief Executive Officer Christoph Gebald. The goal is to capture more than a million tons of CO₂ a year by 2030.
Equinor Gets Licenses To Develop CO2 Storage Sites | Rigzone
Norwegian energy major Equinor has been awarded the operatorships for the development of CO2 storage Smeaheia in the North Sea and Polaris in the Barents Sea.
Enbridge looking at carbon capture and storage opportunities in Gulf Coast, Ontario | BOE Report
Enbridge Inc is looking at carbon capture and storage opportunities in the U.S. Gulf Coast and Sarnia, Ontario, Chief Executive Al Monaco said on Wednesday.
Alberta picks six proposals to develop Canada’s first carbon storage hubs | Financial Post
Canada’s main oil-producing province Alberta on Thursday selected six proposals to move forward with developing Canada’s first carbon storage hubs, intended to help cut climate-warming emissions by permanently sequestering them underground.
Energy Storage
Queensland to build 200MWh big battery next to country’s biggest coal unit | RenewEconomy
Queensland announces another big battery, this time a 200MWh installation next to the Kogan Creek coal generator, the biggest in the country. The Queensland state government has announced it will build a 100MW two hour battery at Kogan Creek, next to the coal generator of the same name and a proposed renewable hydrogen hub.
CATL’s battery plant in Germany, its first outside of China, receives production approval for 8 GWh per year | Electrek
Battery manufacturing behemoth, CATL, shared news that its upcoming plant in Thuringia, Germany has received 2nd partial approval for cell production. This milestone brings the Chinese company one step closer to opening its first battery manufacturing facility outside of China later this year.
Tesla dodges nickel crisis with secret deal locking in supplies | BNN Bloomberg
The invasion of Ukraine has added to agita among electric-vehicle makers over the supply of nickel, a critical ingredient in EV batteries, since Russia is one of the world’s biggest producers. But Tesla Inc. had already been scouring the globe for the metal, signing pacts with several nickel suppliers since 2021.That includes a multiyear supply deal with mining giant Vale SA.
Biden Invokes Cold War Statute to Boost Critical Mineral Supply | NY Times
President Biden took steps on Thursday to try to increase domestic production of critical minerals and metals needed for advanced technologies like electric vehicles, in an attempt to reduce America’s reliance on foreign suppliers.
Solar and Wind
French consortium develops self-cleaning solar module coating | pv magazine
French chemical company Axcentive and solar module manufacturer Photowatt have developed a PV panel coating based on photoactive nanotechnology. The coating relies on a super-hydrophilic surface that makes the water spread out on the module surface immediately, thus avoiding light scattering effects upon rain.
France commits to 40 GW offshore wind by 2050 | Wind Europe
The French Government has signed an offshore sector deal with France’s wind industry. The agreement recognises that offshore wind is a major energy and industrial opportunity. It commits France to build 40 GW of offshore wind by 2050 spread over 50 wind farms. To reach this France plans to organise auctions for a minimum of 2 GW of new offshore wind capacity each year starting in 2025. Right now they’re auctioning 1 GW a year. This means 20 GW of capacity will be allocated by 2030 translating into 18 GW of operational offshore wind farms in 2035.
Big blades give Vestas the edge as Dane unveils world’s largest onshore wind turbine | FR24News
Danish wind equipment manufacturer Vestas today unveiled the largest onshore wind turbine on the market, the 7.2 MW V172, which has been designed for low and medium wind speeds in a wide range of different geographical areas.
GreenIT and Copenhagen Infrastructure Partners to develop two offshore wind farms in Italy with 750MW capacity | WindTech International
GreenIT and CI IV, a fund managed by Copenhagen Infrastructure Partners (CIP), have signed an agreement to develop two floating offshore wind farms in Sicily and Sardinia, Italy. Both projects are located more than 35 km from the coast and have a total capacity of approximately 750MW.
Offshore wind giant calls for “no sail zones” after turbine parts tumble into sea | RenewEconomy
Danish energy giant Ørsted has called for the establishment of “no-sail zones” at a eight offshore wind projects operating in European waters, following an incident at its 400MW Anholt Offshore Wind Farm in Denmark this week.
A wind energy company has pleaded guilty after killing at least 150 eagles | AP via NPR
A wind energy company was sentenced to probation and ordered to pay more than $8 million in fines and restitution after at least 150 eagles were killed over the past decade at its wind farms in eight states, federal prosecutors said Wednesday. NextEra Energy subsidiary ESI Energy pleaded guilty to three counts of violating the Migratory Bird Treaty Act during a Tuesday court appearance in Cheyenne, Wyoming.
Transportation
£1bn investment to see bp pulse triple its UK public chargepoints over the next decade | Current±
New plans to invest £1 billion in electric vehicle (EV) charging in the UK over the next ten years have been announced by bp. The investment is to allow its EV charging network operator bp pulse to deliver more rapid and ultra-fast chargers in key locations, expand fleet products and services and launch new home charge digital products and services to enhance consumer experience.
GM looks to increase electric Hummer production as reservations top 65,000, exceeding expectations | CNBC
GM has received more than 65,000 reservations for its electric GMC Hummer pickups and SUVs, as the automaker attempts to expedite production of the vehicles to meet demand. The reservations number is higher than the automaker’s initial expectations, according to Duncan Aldred, global vice president of GMC. The Hummer EV pickup is currently on sale, but new orders would not likely be fulfilled until 2024 due to the number of reservations.
US school bus maker Blue Bird receives its largest-ever order of electric school buses | Electrek
California’s Modesto City Schools ordered 30 Blue Bird All American Type D electric school buses to convert nearly half of its diesel-powered fleet to electric. The school district expects to save more than $250,000 a year in fuel costs alone.
Waymo kicks off fully driverless rides in San Francisco, for employees only initially | 9to5Google
Waymo has been inching its way toward fully autonomous rides for the population of San Francisco, and this week it’s taking a big step. Starting today, Waymo is conducting fully driverless taxi rides in San Francisco. As it stands today, the program is only available to Waymo’s employees within the city, but will “soon” expand to the company’s “Trusted Tester” program.
GM and Honda partner to build EVs for North American market by 2027 | Electric Autonomy
The two auto giants intend to build on their existing partnership projects to produce a new range of compact crossover EVs, with future battery technology collaboration. Both GM and Honda say they plan to collaborate on future battery technology opportunities that lower the cost of electrification while improving battery performance and building greater sustainability for future cars.
New York State commits to 100% electric school buses by 2035 | Electrek
Governor Kathy Hochul (D-NY) yesterday agreed a $220 billion state budget with legislators, and it includes a plan to make the state’s approximately 50,000 school buses 100% electric by 2035.
Policy
UK targets 95% low-carbon electricity mix by 2030, but will increase oil and gas production | edie
The UK Government has tonight (6 April) issued an outline of its Energy Security Strategy, due in full on Thursday (7 April), including increased targets for offshore wind, hydrogen and nuclear power generation.
Taiwan Vows $32 Billion Clean Energy Spree as It Lags on Targets | BNN Bloomberg
Taiwan is planning a massive clean energy spending spree through 2030 to redouble climate efforts after government officials said they will likely miss 2025 targets.
Canada’s new climate roadmap will require oil and gas sector to slash emissions 42% by 2030 | Financial Post
The federal government says Canada’s oil and gas sector will have to cut emissions by 42 per cent below current levels by 2030 as part of the country’s new emissions strategy, which received mixed reviews from industry and environmental critics. See also: Gas drillers in Canada face big shift in Trudeau’s climate plan | BNN Bloomberg
Trudeau’s EV Plan Misses Mark on Hiking Demand, Auto Group Says | BNN Bloomberg
Prime Minister Justin Trudeau’s plan to require that 20% of new light-vehicle sales in Canada be zero-emissions by 2026 hasn’t got enough money behind it to spur that level of consumer consumer demand, according to the head of an automakers’ group.
Germany introduces new provisions to support solar, wind | pv magazine
Germany has come up with new measures that could lead to a cumulative installed PV capacity of 215GW by 2030. Higher feed-in tariffs for rooftop PV will likely be announced soon.
Portugal brings forward 80% clean energy target to 2026 from 2030 | Electrek
Portugal’s new Socialist Party-majority government has moved its target of reaching 80% clean energy in electricity production forward to 2026, four years earlier than previously planned.
Spain streamlines permits for utility scale solar, supports another 7GW under self-consumption | pv magazine
The measures include a regulatory framework for floating PV; new rules for renewable gas pipelines, such as hydrogen infrastructure; and the release of 10% of grid access capacity to absorb an additional 7GW under self-consumption.