Plus: Government doling money for hydrogen; more carbon capture, powerlines planned; Small Modular Reactors; big batteries in Australia; EV sales grow
Hi everyone,
A confluence of factors this past weekend means that I was not able to offer much in the way of commentary. For the 5 horsemen of the transition story, look to the Liebreich: Net Zero Will Be Harder Than You Think story in Finance & Sentiment. As for policy stories, I salted them into the various sections instead of grouping them separately.
I welcome you forwarding stories you think worth sharing with others. And please do continue to forward on to others you think would be interested and encourage them to subscribe.
Thanks,
Peter
Finance & Sentiment
Liebreich: Net Zero Will Be Harder Than You Think – And Easier. Part I: Harder | BNEF
The transition to a net-zero carbon economy will be straightforward: we just roll out cheap clean energy technologies, become more energy efficient every year, keep innovating and stop chopping down forests. What could be easier? The transition will also be brutally challenging: every sector of the economy will have to switch to new technologies, consumers will have to change behaviors, new supply chains will have to be built, and all this has to happen in every major economy, in just a few decades, and at the cost of a whole generation’s savings. What could be harder?
It is easy to swing between extremes of optimism and pessimism. This is the first of a two-part article in which I’ll explore the bull and bear cases for the net-zero transition. First, to get the bad news out of the way, I’ll lay out the reasons why it is going to be extraordinarily hard. In the second part, I’ll look at why we should not lose heart, because the transition will in fact be easier than may appear.
So, let’s meet what I call the Five Horsemen of the Transition: five reasons why anyone hoping for rapid global decarbonization is kidding themselves.
Europe’s carbon border tariff starts applying, causing jitters for trade | edie
[Excerpt] In the initial phase, CBAM will target the imports of six carbon-intensive industrial sectors – iron and steel, cement, fertilisers, aluminium, electricity generation and hydrogen. As of 1 October, foreign firms in those sectors will have to collect emissions data and report them to a transitional registry hosted by the European Commission in order to continue exporting to Europe.
EU launches first phase of world’s first carbon border tariff | Reuters
The European Union launched on Sunday the first phase of the world’s first system to impose CO2 emissions tariffs on imported steel, cement and other goods as it tries to stop more polluting foreign products from undermining its green transition.
Sunday, however, marks the start of an initial phase of the Carbon Border Adjustment Mechanism (CBAM) when EU importers will have to report the greenhouse gas emissions embedded during the production of imported volumes of iron and steel, aluminium, cement, electricity, fertilisers and hydrogen.
Importers will from 2026 need to purchase certificates to cover these CO2 emissions to put foreign producers on a level footing with EU industries that must buy permits from the EU carbon market when they pollute.
Eurobarometer: Europeans approve measures taken to tackle the energy crisis, to promote sustainability and to support Ukraine | Europa.eu
The Flash Eurobarometer survey published today shows an overwhelming support among Europeans for the measures taken over the last year to protect consumers and companies from volatility of energy prices, as well as action to foster energy security and the green transition. It also confirms a large consensus among EU citizens in favour of boosting clean tech industry for more competitiveness, as well EU’s actions taken in response to Russia’s invasion of Ukraine.
Point of no return: Pope challenges leaders at UN talks to slow global warming before it’s too late | AP News
Pope Francis shamed and challenged world leaders on Wednesday to commit to binding targets to slow climate change before it’s too late, warning that God’s increasingly warming creation is fast reaching a “point of no return.”
Technology
Hydrogen
Biden awards $7 billion for clean hydrogen hubs across the country to help replace fossil fuels | Yahoo
The Biden administration has selected clean-energy projects from Pennsylvania to California for a $7 billion program to kickstart development and production of hydrogen fuel, a key component of President Joe Biden’s agenda to slow climate change.
Australia opens $2 billion tender to support massive green hydrogen projects | RenewEconomy
The federal government has kicked off the tender for its $2 billion hydrogen head-start program, which it describes as the largest ever funding program for renewable hydrogen, as Australia tries to compete for capital with the US and the EU.
Hystar announces 4 GW electrolyzer factory in Norway and N American expansion plans | Green Car Congress
Hystar AS, a spin-off from SINTEF that is developing efficient PEM electrolyzers, will build a fully automated 4 GW electrolyzer factory in Høvik, Norway (just west of Oslo), that will be delivered in 2025, with construction commencing in early 2024. Furthermore, the company is expanding into North America, establishing a location in 2024 and a multi-GW factory by 2027.
Fortescue signs gigawatt supply deal with maker of world’s biggest electrolyser systems | RenewEconomy
Andrew Forrest’s Fortescue has signed a one gigawatt supply deal with the maker of the world’s “most powerful” green hydrogen electrolyser systems after investing more than $100 million in the latest fund raising by US-based start-up Electric Hydrogen (EH2).
‘We will place the biggest hydrogen bus order in US history because battery-electric can’t do the job’ | Hydrogen Insight
Santa Cruz Metro in California tested an electric bus, but it struggled with the hilly terrain, a senior official explains.
France allocates €700m to subsidise green and nuclear hydrogen production in 2024 | Hydrogen Insight
The French government has announced that €700m ($739m) will be spent in 2024 on a support mechanism to subsidise hydrogen production.
China added 26 hydrogen refueling stations by September this year | China Hydrogen
[Excerpt] While this may seem not bad, this figure is well behind China’s schedule. The hydrogen refueling stations deployment target is 1,096 by year of 2025. That means China will build and put over 600 hydrogen stations during next two year.
Carbon Capture
UAE Oil Giant Doubles Carbon Capture Target Ahead of COP Summit | BNN Bloomberg
The United Arab Emirates’ biggest oil producer is doubling its carbon-capture target as the company works toward a net-zero goal and looks to burnish its green credentials before the UN’s main climate summit.
Operator plans CCS expansion in Texas Permian | OGJ
San Antonio-based Ozona CCS LLC has entered a deal to expand its carbon capture sequestration (CCS) capabilities for oil and gas operators in the Permian basin of West Texas.
Lease agreement in for North Sea carbon capture and storage project | Offshore Energy
The UK’s Crown Estate has awarded an agreement for lease for what could become one of the world’s largest carbon capture and storage (CCS) projects. The agreement for lease will allow BP, as the lead operator, to further progress the planned Endurance CCS project, a reservoir in the North Sea that would be used to store hard-to-abate carbon emissions captured from carbon-intensive heavy industry in Teesside and Humberside.
UK’s Petrofac gets over $600 million carbon capture contract from ADNOC Gas | Reuters
UK oil services firm Petrofac (PFC.L) said on Tuesday it got a more than $600 million contract from ADNOC Gas (ADNOCGAS.AD) for the Habshan carbon capture and storage (CCS) project, as the Abu Dhabi-based company steps up its decarbonisation plan.
Aramco, Siemens Energy launch direct air capture project | CNBC
Aramco is partnering with Siemens Energy AG to develop a small-scale direct air capture “test unit,” which is set to be finished in 2024. Direct air capture, or DAC, works by extracting carbon dioxide from the atmosphere and converting it into solid or liquid forms to be stored underground.
Developer proposes Illinois gas plant with carbon capture | PR Newswire
One of the world’s first zero emissions Allam-Fetvedt cycle power plants, the Broadwing Clean Energy Complex, is poised to be built in Illinois, generating 280 MW of clean power to help decarbonize the industrial, transport, and electricity sectors.
The Grid
Germany Brings Back Mothballed Coal Plants to Help Keep Lights On | BNN Bloomberg
Germany will bring several mothballed coal plants back to the market this winter to ensure that Europe’s largest economy can keep the lights on when demand peaks.
Utilities plan power line project across Minnesota that could cost nearly $700M | Star Tribune
The line, which would run from Big Stone City, S.D., to Becker, Minn., is the second major transmission proposal submitted to state utility regulators since August.
A new 1 GW subsea cable will move clean energy between Italy and Greece | Electrek
Italy and Greece are planning to install a subsea cable to increase their interconnection capacity and share renewable energy.
6,200 Miles of Power Lines Are Key Energy Challenge, Australia Says | BNN Bloomberg
Winning public support to install 10,000 kilometers (6,214 miles) of new power transmission lines in Australia is a key challenge for a shift to renewables, according to the country’s energy market operator.
Green Steel
Swedish industrialists explore $6 billion green steel project in Canada | Mining
Sweden’s H2 Green Steel is in talks with governments in Canada to build a factory in northern Quebec, as the young firm tries to deliver on a promise to customers — steel produced with minimal carbon emissions.
Urban Design & Buildings
UBS Executive Calls For a Retrofit Revolution in Real Estate | BNN Bloomberg
Real estate investors need to allocate considerably more resources to climate-proofing old buildings rather than erecting new structures, to keep up with net zero regulations and avoid being saddled with stranded assets.
Heat pump boom: Installs jump 70 pct as homes prepare for electric future | one step off the grid
Australia is doing its best to help fulfil International Energy Agency predictions of a global boom in heat pump uptake, with the latest national data showing a 70 per cent jump in installations of the technology that promises a cheaper and more efficient way of heating water and homes.
These themes are the talk of green building professionals | GreenBiz
[Excerpt] The most notable trends, however, were signaled in industry announcements, during keynote remarks and at booths in the expo hall. One big theme was embodied carbon, the emissions produced by building materials during extraction, manufacturing and transport to a construction site.
[Comment] This made me go looking into the topoic of embodied carbon. RMI says: “Concrete, steel, and insulation are all examples of materials that contribute to embodied carbon emissions. Because they account for 11 percent of global greenhouse gas (GHG) emissions, it is imperative for builders, manufacturers, and policymakers to prioritize this issue to meet climate goals. Furthermore, reducing embodied carbon emissions is an effective and immediate way to take climate action, as the majority of emissions occur before a building’s construction phase. As such, reducing embodied carbon has emerged as a vital new frontier in building decarbonization and is rapidly gaining global recognition among leaders in architecture & design, manufacturing, and construction.”
Seattle launches cute little electric street sweepers into its bike lanes | Electrek
The miniature electric street sweepers are an innovative approach, helping Seattle not only provide safer cycling infrastructure in the city but also keep it well maintained to encourage more riders to use it.
Small Modular Reactors
New Brunswick First Nation Communities Invest in Clean Energy Tech | Rig Zone
The North Shore Mi’kmaq Tribal Council (NSMTC) and its seven First Nation member communities have signed equity agreements with Moltex Energy Canada Inc. and ARC Clean Technology Canada, Inc. to develop and deploy advanced nuclear technology in New Brunswick.
UK Picks EDF, GE-Hitachi and Four Others for Nuclear Competition | BNN Bloomberg
The UK selected six companies, including Electricite de France SA, GE-Hitachi Nuclear Energy International LLC and Rolls-Royce Holdings Plc, to advance to the next round in a government competition to develop smaller nuclear reactors that are expected to be quicker to build.
Microsoft needs so much power to train AI that it’s considering Small Modular Reactors | DEC
Now, The Verge reports, Microsoft is betting so big on AI that its pushing forward with a plan to power them using nuclear reactors. Yes, you read that right; a recent job listing suggests the company is planning to grow its energy infrastructure with the use of small modular reactors (SMR.)
France Pitches Plan to End EU Nuclear-Energy Deadlock With Germany | BNN Bloomberg
France and eight other European nations dependent on nuclear energy put forward their plan to break the deadlock over state support to extend the life of aging reactors.
Energy Storage
India: NHPC, SECI among state agencies tendering 9GW for round-the-clock renewables with ESS in 2023 | Energy Storage News
[Excerpt] With India – as of this year the world’s most populous country – aiming for 500GW of new renewable energy by 2030 and thought to be somewhere between 150GW and 200GW at present, there is a pressing need for energy storage.
Federal approval for Edify Energy’s PV plant with 200MW/800MWh Battery in Queensland, Australia | Energy Storage News
Renewables developer Edify Energy has secured federal approval on a 600MW solar PV plant in Central Queensland, Australia. The project is expected to start construction in the first quarter of 2024 and be completed by Q3 2025.
Octopus Australia snaps up gigawatt hour battery project in Queensland | RenewEconomy
Octopus Australia has continued its rapid expansion in Australia, buying a proposed one gigawatt hour battery storage project located near the Swanbank gas power station in Queensland.
Quinbrook raises $A1.2 bn for renewable and storage projects in UK | RenewEconomy
The Australian founded renewable energy investor Quinbrook Infrastructure Partners has concluded a UK-focused fund raising of $A1.2 billion, more than 20 per cent more than was sought.
Arizona utility TEP building 200MW BESS to aid ‘ambitious but responsible’ renewable energy expansion | Energy Storage News
Tucson Electric Power (TEP), a utility company in the US state of Arizona, plans to own and operate a 200MW/800MWh battery storage system.
Australia’s largest battery’: Equis’ 2.4 GWh battery in Melbourne secures federal approval | pv magazine
The enormous 1,200 MW / 2.4 GWh battery appears to the Melbourne Renewable Energy Hub’s (MREH) mainstay and is said to be capable of powering over 1 million households.
Australia’s biggest storage tender kicks off to fill gaps in wind and solar states | RenewEconomy
The first stage of what will amount to Australia’s biggest storage tender has been formally kicked off, with registrations opening for 600MW and 2400 MWh of dispatchable capacity to be deployed in South Australia and Victoria, the states with the biggest share of variable wind and solar power.
Demand for green hydrogen to skyrocket after EU nations approve mandatory usage targets in industry and transport | Hydrogen Insight
Member states agree that 42% of hydrogen used by industry and 1% of transport fuel must be renewable by 2030.
Solar and Wind
U.S. utility-scale solar to more than double installations year-over-year | pv magazine
U.S. utility-scale solar to more than double installations year-over-year Over 10.4 GW was deployed in 2022, while 2023 totals may exceed 24 GW, said Lawerence Berkeley National Laboratory.
EIB approves framework financing of up to €1.7 billion for Solaria’s renewable energy rollout | EIB
The European Investment Bank (EIB) has approved framework financing of up to €1.7 billion for Solaria to support the construction of some 120 photovoltaic power plants. Mostly located in Spain, as well as Italy and Portugal, they will have a total capacity of approximately 5.6 GW and will produce an estimated 9.29 TWh a year, providing electricity equivalent to the average annual demand of approximately 2.5 million households.
Dominion Energy Sets Ambitions on Second Massive US Offshore Wind Farm | BNN Bloomberg
Dominion Energy Inc., which is developing one of the largest US offshore wind farms, is already making plans for another similar-sized project off Virginia’s coastline.
Transportation
It’s Done. The Future Is Battery-Powered Electric Cars | Financial Post
[Excerpt] Globally, this year will see more than 14 million electric cars sold, according to BloombergNEF, compared with just 700,000 in 2016. And some 23 countries have now passed a crucial EV tipping point — 5% of new-car sales — after which adoption picks up dramatically. In China, the biggest EV market, 38% of new-car sales were electric in August.
[Comment] I listened to this podcast and thought it was worth sharing. Choose where to listen here. When answering what has been the impact on oil demand from EV’s, Colin McKerracher responded: “It’s pretty modest, so far, if we’re honest. … But it’s about 1.5 million barrels a day.” For context, global demand for oil still sits at just over 1.5 million barrels per day. Sure, demand could see more of a dent in demand with more EVs, yet what happens in other global demand markets like India, Southeast Asia and Africa could, at least partly, offset those reductions.
Hyundai IONIQ 5 electric SUV sales soar 203% in record-setting September | Electrek
The Hyundai IONIQ 5’s hot streak continues in the US, with sales of the electric SUV soaring 203% in September, setting a new record.
LG Energy to Invest $3 Billion in US Plant in Toyota EV Pact | BNN Bloomberg
South Korean battery maker LG Energy Solution Ltd. will invest around 4 trillion won ($3 billion) expanding its Michigan plant after signing a deal to supply power packs to Toyota Motor Corp.
Hyundai, Kia electric vehicles to use Tesla’s NACS charging ports starting next year | AP News
[Excerpt] Tesla’s electric vehicle plug has steadily moved closer to becoming the industry standard. In June SAE International, formerly the Society of Automotive Engineers, said that it would set performance standards for Tesla’s electric vehicle charging cords. The move by the key U.S. automotive industry organization came just weeks after Ford, General Motors and Rivian said they would join Tesla’s large Supercharger network and adopt its NACS connector in new versions of their electric vehicles. Volvo Cars has also signed a deal with Tesla to join its charging network.
BMW taps Great Wall Motor’s SVOLT Energy for EV battery order worth $13 billion | Electrek
Following EV battery agreements with CATL and EVE Energy last fall, BMW shared it is adding SVOLT Energy to its rolodex. The battery developer is a spinoff of China’s Great Wall Motor and has reportedly been awarded a massive contract to supply EV builds in Europe worth up to $13 billion.
Tesla Prices Now Rival Average US Cars After Billions in Cuts | Electrek
[Excerpt] At $38,990, the base Model 3 sedan now costs $8,700 less than the average amount paid for a car or truck in the US. The starting price for a Model Y SUV is $3,700 below the average auto price of roughly $48,000, according to an analysis by Bloomberg Green.
Mercedes Unveils Long-Haul Electric Truck to Take on Tesla | BNN Bloomberg
[Excerpt] The eActros 600, which can travel 500 kilometers (311 miles) on a single charge while hauling up to 22 tons in cargo, is set to go on sale toward the end of this year, the unit of Daimler Truck Holding AG said Tuesday.
U.S. Treasury details EV tax credit rebate rules | Reuters
[Excerpt] Currently, consumers can only take advantage of the $7,500 new EV credit or $4,000 used EV credit when they file their tax returns the following year. Starting Jan. 1, consumers can transfer the credits to a car dealer, effectively lowering the vehicle’s purchase price, a change that may help boost EV sales.