Plus: Investors defeat climate resolutions; Banks ramp up sustainable finance; $0.5B for hydrogen; Interest grows for small modular nuclear
Hi Everyone,
I’m offering something different this week – more commentary than usual – and lighter on signposts. In this issue, I’ve included my comments on a few stories. Check it out and let me know what you think.
Continue to forward this on to others you think would appreciate this and encourage them to subscribe.
Thanks,
Peter
Observations & Comments
As noted in my opening remarks, I’m trying out a different approach. Below you will see in blue font where I have layered in comments to help you in how to think about the topic/story. For the few comments that I do get, these is a recurring theme of what people appreciate – it is not just the signposts, but to hear my reflections on them as well.
Now, for this week’s comments, I will say that I haven’t really taken a particularly strategic approach to picking the stories to comment on – rather just offering up comments that I felt compelled to layer in.
Please consider letting me know what you think – about the format and substance of the additional commentary.
Feature Story
Fortescue says regenerative “Infinity Train” may be on tracks in two years | RenewEconomy
Image: PilbaraRailways.com.au
Fortescue Metals says its so-called zero emissions “Infinity Train” – one of the key technologies that will come with the $US221 million purchase of the renowned Williams Advanced Engineering – could be on its private rail network within two years. The infinity train proposes to use the height of Fortescue’s iron ore mines – up to 600m above sea level – and the weight of its load (34,000 tonnes) to provide “regenerative power” to its battery electric locomotives. The idea is that it will generate enough power down hill to take the massive iron ore trains all the way to port, and put enough charge in the batteries so they can return the empty trains up hill to the mines. It could save 82 million litres of diesel a year.
Finance & Sentiment
Investors at 3 major banks defeat climate resolutions | E&E News via GWSEC
Most shareholders at Citigroup, Wells Fargo and Bank of America did not support a resolution that called for an end to the financing of new fossil fuel development.
Comment: This is an important marker, but perhaps not for the reasons you may be thinking. On the one hand – yes, it is a shot across the bow that the banks need to take investor expectations in the climate arena seriously. But more importantly, there is emerging a realization that even the most aggressive energy transition scenarios include continued use of fossil fuels. A pragmatic approach for banks is to take a more nuanced approach – supporting the financing of those developers that have set net zero ambitions and aggressive near term targets – such that they ARE financing the transition in this way. Yet it likely also means trimming the financing of those developers who are not taking the climate change challenge seriously. I expect that broadly we will see this play out in the finance sector – that investment will continue to flow to responsible operators. For an orderly transition, it has to.
Global oil demand could peak in three years, but world still on course to breach 1.5C threshold | edie
Global average temperatures are predicted to breach the 1.5C pathway of the Paris Agreement, even as global oil demand peaks and power systems become predominantly powered by renewables in 2050, new research has warned.
TPG Raises Over $7 Billion for Climate Solutions Fund | ESG Today
Global alternative asset firm TPG announced today the final close of its climate solutions-focused strategy, TPG Rise Climate, raising $7.3 billion from institutional investors and global corporations.
JPMorgan Ramps Sustainable Finance Activity to $285 Billion in 2021 | ESG Today
JPMorgan Chase revealed today a significant increase in its sustainable finance activity in 2021, financing and facilitating $285 billion supporting climate, community development and sustainable development projects and initiatives during the year, up approximately 30% from 2020.
Citi More Than Doubles Sustainable Finance Activity in 2021, on Track for $1 Trillion 2030 Goal | ESG Today
Global financial services company Citi revealed today that it more than doubled its sustainable finance activity in 2021, facilitating $160 billion in sustainable finance throughout the year, compared with $62 billion in 2020, according to its newly released 2021 ESG Report.
Technology
Hydrogen
DOE loans office commits over US$500 million to Utah green hydrogen hub | Energy Storage News
The US Department of Energy (DOE) Loan Programs Office (LPO) has committed US$504 million to a 300GWh hydrogen storage project in Utah. Renewable energy will be converted through 220MW of electrolysers into up to 100 metric tonnes of green hydrogen a day when the project is completed in 2025. This will be stored in two huge salt caverns with a combined storage capacity of 300GWh.
Kenney announces $50M for research centre at Canadian Hydrogen Convention in Edmonton | Edmonton Journal
Alberta Premier Jason Kenney announced Tuesday the government will put $50 million over four years into a centre devoted to speeding up hydrogen sector development in the province. Speaking at the first-ever Canadian Hydrogen Convention in Edmonton, Kenney said the Clean Hydrogen Centre of Excellence will help move projects from the initial proof-of-concept phase towards working prototypes and commercial success.
Edmonton International Airport to become hydrogen hub for piloting new technology | Edmonton Journal
[Excerpt] Ten new agreements were announced Wednesday, including incorporating biofuels into EIA’s equipment fleet, testing sustainable fuels, installing hydrogen fuelling stations, launching hydrogen-powered buses, using hydrogen fuel cells in EIA fleet vehicles, and creating North America’s first airside hydrogen-diesel fleet.
Canada overestimating hydrogen’s potential to cut carbon emissions, report says | Reuters
Canada has overestimated how much using hydrogen could reduce greenhouse gas emissions over the next decade, potentially jeopardizing Ottawa’s ability to meet climate targets, a report from the Auditor General’s office said on Tuesday.
Carbon Capture
Huge carbon capture project launches planning consultation on 53km cluster pipeline to North Sea storage | Business Live
V Net Zero is a £500 million investment led by Harbour Energy linking the Immingham cluster with depleted gas fields
Small Modular Nuclear
South Korea’s SK weighs investing in small nuclear reactors, eyes Bill Gates’ TerraPower | Reuters
South Korea’s SK Group said on Tuesday it was mulling investments in small-sized nuclear reactors and that one of the candidates was TerraPower, a U.S. venture founded by Bill Gates.
Mitsubishi heavy industries to build transportable small nuclear reactors in next ten years | Seneca ESG
Japans Mitsubishi Heavy Industries plans to develop and commercialize nuclear reactors small enough to be delivered on trucks by the end of the next decade, as reported by Nikkei Asia on April 19. The mini reactors will have a maximum capacity of 500 kilowatts (KW), equivalent to one-twentieth of that of a one-gigawatt (GW) typical nuclear power plant.
US Demand Management (Credit: GreenBiz)
- National Grid is partnering with distributed energy platform Leap to provide demand response to the regional grid. The program is aimed at reducing electricity consumption in New York City buildings during times of high demand, according to a release.
- Energy management company OhmConnect announced a new program to incentivize smart thermostats owners to reduce energy. The announcement is the latest in how smart technologies are working to monetize customer consumption habits.
The Grid
Renewables are growing — but a backlog of projects is holding up a greener grid | Grist
Wait times to connect to the grid are going up, and more projects are dropping out in the process.
US Midwest Transmission Line Pits Public Benefit Against Private Property Rights | Flatland
[Comment] The 7 minute video below provides insights into the challenges of building new large transmission lines – something that is key to incorporating more renewables into the grid.
Energy Storage
QuantumScape update: Solid-state cells will cut EV charging time in half and increase volumetric density over 50% | Electrek
In a letter to shareholders outlining its progress through Q1 of 2022, solid-state battery manufacturer QuantumScape has shared some exciting updates. These include a new 16-layer, solid-state cell – an initial proof of concept of the company’s proprietary cell format.
Comment: The headline over-states reality, when QuantumScape is still very much in the proving up stage and has a ways to go to demonstrate achievement of what is so far ‘projected’ energy density. They’ve done a little under 600 discharge cycles on the 16 layer cell with about 90% of the original capacity. Most real-world expectations would prefer to see 1000-1500 cycles. So I still put them firmly in the ‘keep watching’ category. If they ever crack the trifecta of fast charging, high density and slow degradation, that would be a true breakthrough.
Long-duration storage solution based on saltwater | pv magazine
Developed by Dutch start-up AquaBattery, the storage technology is claimed to independently amend power and energy capacity. The battery system utilizes three storage tanks, one with fresh water, one with concentrated salt water and one with diluted salt water, and also relies on membrane stacks.
New York calls tender to replace gas peakers with four hour battery storage | RenewEconomy
The New York Power Authority (NYPA) is looking to replace nearly a dozen, if not all, of its gas-fired peaker plants with four hour battery storage installations in a new tender announced late last week.
CPUC approves California utility projects including PG&E’s 1.6GW/6.4GWh BESS | Energy Storage News
The California Public Utilities Commission (CPUC) has approved new projects by the state’s three investor-owned utilities, including nine battery energy storage system (BESS) facilities proposed by PG&E totalling 1.6GW/6.4GWh.
New York calls tender to replace gas peakers with four hour battery storage | RenewEconomy
The New York Power Authority (NYPA) is looking to replace nearly a dozen, if not all, of its gas-fired peaker plants with four hour battery storage installations in a new tender announced late last week.
Solar and Wind
US Solar installations expected to be nearly halved if tariffs imposed | Solar Power World
Solar installation forecasts for 2022 and 2023 are being cut by 46% due to the Biden Administration’s circumvention case against solar imports from Southeast Asia. According to new analysis by the Solar Energy Industries Association (SEIA), the case will result in a drop of 24 GW of planned solar capacity over the next two years, which is more solar than the industry installed in all of 2021.
Comment: All I have to say here is be careful how you interpret this situation. Previous tariffs did not materially impact solar installations in the US – a curious outcome. The petition filed by US solar manufacturer Auxin Solar is in part to address the possibility some Asian exporters are skirting existing tariffs by having some final panel assembly done in Cambodia, Malaysia, Thailand and Vietnan – countries that are not presently covered by tariffs. So the US Commerce Department is considering the option to extend tariffs to those countries as well. Even though nothing has changed, apparently already imports have slowed.
Putting aside the debate about tariffs to protect domestic manufacturing, let’s just play this out – a thought experiment if you will. If we take the projected drop in solar installations in the US, where else in the world might those solar panels produced in Asia go and would the rest of the global market be able to absorb this volume? Here, I am modestly out of my depth, but India has big aspirations for renewables and the pace of installations are struggling to meet expectations. Europe is reeling from high energy prices and is taking an ‘all of the above’ type approach to weaning itself off Russian oil and gas, including a broad desire to substantially accelerate renewables. Those are two big growth markets not to mention South America and Africa – also with serious growth aspirations. In each of these markets the challenges to accelerated growth will be much the same as they are today – regulatory hurdles, grid connection backlogs and even growing nimbyism. On balance, a globe aspiring for more renewable electricity, my guess is those solar panels will find a home elsewhere. A side note – Australia is presently seeing their market flooded with panels, causing market distortions.
Were the solar installations to drop in the US as dramatically as predicted, it will leaves the US further behind. The energy transition is will play out like a marathon, not the sprint some would prefer. So the question is will the domestic job losses in the near term be recouped in the long term. In a juvenile sector, I’m not so sure.
US$1.9B financing secured for for massive Nevada solar and battery project | RenewEconomy
Queensland-based energy investment manager Quinbrook Infrastructure Partners says it has closed a multi-billion-dollar financing deal for one of the world’s biggest solar and battery storage projects. The 690MW Gemini solar and storage project, which will also include 380MW/1,416MWh of battery storage, is the largest project of its type in the US, and will be built just 30 minutes outside of Las Vegas in Clark County, Nevada.
Quebec publishes draft documents for 1.3 GW tender | pv magazine
The Canadian provincial government’s Green Economy Plan, launched in November 2020, envisages a 37.5% reduction in greenhouse gas emissions en route to net zero by mid century.
Origin snaps up 1GW of solar projects as it plans for future without coal | RenewEconomy
Origin Energy, one of Australia’s big three energy gentailers, has snapped up nearly 1 gigawatt of large scale solar projects as it plans for a life without coal after the planned closure of Eraring in 2025.
Renewable Energy Burst Sends Dutch Power Prices to Lowest Ever | BNN Bloomberg
Surging power output from wind and solar plants along with a nuclear reactor coming back online sent Dutch power prices to their lowest on record.
Ontario amends net metering policy to allow third-party ownership | pv magazine
Prior to these amendments, Ontario’s net metering regulation required the customer to own or operate the renewable generation system to qualify as an eligible generator.
Autonomous Vehicles
Beijing grants Baidu, Pony.ai new driverless robotaxi permits | Reuters via Yahoo Finance
Baidu and Pony.ai said on Thursday they had received permits to deploy robotaxis without humans in the driving seat on open Chinese roads for the first time, in another instance of Beijing city’s support for the autonomous-driving sector. Pony.ai would still have safety supervisors in the front passenger seats for now, it said.
Transportation
Polestar 2 gets upgrades to design, range, and sustainability thanks to blockchain technology | Electrek
Polestar has announced a bunch of upgrades to the Polestar 2, including two new exterior colors, new wheels, and updates to its interior. By swapping out certain materials and components for those using renewable energy, Polestar has been able to lower the carbon emissions per car while also using blockchain to trace minerals from their source to the finished EV to ensure ethical mining.
Policy
Florida governor Ron DeSantis vetoes awful solar net metering bill | Electrek
Florida governor Ron DeSantis (R) vetoed a bill, which the state’s Republican-majority House and Senate passed, that would have slashed rooftop solar credits in the state. It would have denied many homeowners net metering in the Sunshine State, and harmed its solar industry.