EU greenlights €1.4bn in state aid for hydrogen; Creative financing for heat pumps; Net-zero cement; A 3.5GW solar farm; EV price parity?
Hi everyone,
As summer approaches, I likely have one more issue before I take a break. It’ll be a good opportunity to read books I’ve been meaning to get to, but also to reflect on this newsletter.
So, tell me what you think about it. What are things you like/don’t like? What would make it better?
Until next time,
Peter
Peter’s take: Why I’m the “bad guy”…
I was on my train commute to work this week, going through my news feeds as usual, and learned that I am a “godfather of climate chaos” who is feasting “off trillions in taxpayer-funded subsidies”. According to United Nations Secretary-General António Guterres, that is. He also suggested that the company of whom I am an owner ought to be subject to windfall taxes. Heavy sigh. He might as well call windfall taxes what they really are: wealth redistribution. And why am I, and all the others working hard to supply affordable oil and gas to the global market, the “bad guy”?
So here it is: I’ll admit I am part of the problem. But not in the way António suggests. It is because I am among the billions of global consumers still reliant on oil and gas. We have to stop the convenient narrative that is making oil and gas companies the villain when we are the ones who are driving demand – which by the way, continues to rise.
You’ve heard me blather on about urbanism, but here’s the thing: this is me trying to problem-solve the 70-80% of lifecycle emissions from oil and gas that occurs at the consumer. Yes, you read that right. Even if all the oil and gas companies were net-zero tomorrow, the end-use emissions are where the real climate action needs to happen. And solutions here are a lot harder than “feel good” blame and targeting of oil and gas companies. They are not the problem. We are.
So, join me in trying to problem-solve for end-use emissions. The invitation: read the book Strong Towns, join a local chapter, sign up for their newsletter…and get involved. I’ve been to several Strong Town Calgary events recently. This fledgling organization needs your and my help. If you live in Calgary, join the Strong Towns Chapter’s Discord server.
Not in Calgary? Check out their website. Find out if there is a Chapter near you.
Strong Town puts out very good videos. I encourage you to consider watching this (20 min) video.
We Built Isolating Places. Can We Get Out?
Finance & Sentiment
Norway’s $1.7 Trillion Wealth Fund Asks Shell for Climate Strategy Disclosure | ESG Today
Norges Bank Investment Management (NBIM), the investment manager for Norway’s $1.7 trillion oil fund revealed that it has asked Shell to provide more detail into its mid-term climate strategy, although the fund also announced that it will vote against a shareholder resolution calling for the oil giant to set a goal to reduce emissions from the use of its products.
Investors With Trillions Aren’t Handling Australia Climate Risks | BNN Bloomberg
[Excerpt] Even so, a survey of 63 investors operating in Australia with more than A$35 trillion ($23 trillion) under management globally found only 16% had calculated the risk across their entire portfolio. Just 3% were taking any action, the Sydney-based Investor Group on Climate Change found in its study.
Global Banks Start Targeting a New Breed of Real Estate Risk | BNN Bloomberg
At some of the world’s biggest banks, loans to commercial real estate face new litmus tests that promise to shape the sector’s access to financing. At issue is the carbon emissions of buildings and the expected cost of upgrades needed to stay on the right side of new green regulations. The European Union just passed its Energy Performance of Buildings Directive (EPBD), which forms part of a growing array of net zero regulations. And too-big-to-fail banks are starting to react.
Technology
Hydrogen
China on track to install 2.5GW of green hydrogen projects by end of this year: analyst | Hydrogen Insight
Rystad Energy argues that the country will exceed its 2025 target, but highlights potential pitfalls when it comes to matching supply and demand.
EU greenlights €1.4bn in state aid for hydrogen in road transport, ships and aviation | Hydrogen Insight
The European Commission has approved the fourth wave of Important Projects of Common European Interest (IPCEI) for hydrogen, a scheme which allows member states to allocate vast sums of state aid towards individual projects. The fourth IPCEI scheme, Hy2Move, will support 13 projects across seven countries.
Canadian government backs nearly half the C$900m price tag for a hydrogen refuelling network in western provinces | Hydrogen Insight
The government-owned Canada Infrastructure Bank has approved a C$337m (US$247m) loan for HTEC, a Vancouver-based hydrogen refuelling station developer, to build up to 20 new sites across the western provinces of British Columbia and Alberta.
The Grid
EDF taps Accenture and Kraken to modernise customer experience | Current±
EDF has partnered with Accenture and Kraken Technologies to accelerate the digital transformation of its customer service. By leveraging Kraken’s advanced analytics and AI capabilities, EDF aims to empower its customers with better tools and insights to make informed energy choices.
[Comment] I have been following Octopus out of the UK for a long time. Their software, Kraken, has been likened to the iOS of energy management and is now being used by utilities around the world to help customers save money. But also – check out the 1GW wind farm it is adding in Australia (see Wind and Solar).
Urban Design & Buildings
New York Governor Shocks Manhattan With Halt to Congestion Pricing | Bloomberg City Lab
New York Governor Kathy Hochul halted a plan to charge motorists driving into Manhattan, upending an initiative years in the making that was finally set to kick in at the end of this month.
[Comment] A more apt label would be “decongestion pricing”. Again, it shows how challenging it is to advance policies that address climate change.
The congestion fee in New York City was set to be $15 for passenger cars entering the Congestion Relief Zone in Manhattan. Trucks would have been charged anywhere from $24 to $36, depending on their size, while motorcycles would face a $7.50 fee. Taxis and rideshare services like Uber and Lyft would have incurred a $1.25 or $2.50 surcharge per ride, respectively. Alas, it was not to be.
A Traffic Engineer Hits Back at His Profession | Bloomberg City Lab
A new book argues that road design, not driver error, is largely responsible for the surge in US traffic deaths among pedestrians and bicyclists
BNP Structures €200 Million Novel Securitization for Heat Pumps | BNN Bloomberg
[Excerpt] “Transforming residential heating will require substantial financial investments, not just to develop and install the technology, but also to make it accessible and affordable for everyone,” Ane Launy, Aira chief financial officer, said in emailed comments to Bloomberg. BNP Paribas is providing a warehouse financing facility that “aims to bridge this financial gap” and which allows Aira to draw funds as needed to finance heat pump installation, said Launy.
[Comment] Banks find it harder to make money on financing for small projects, so this bundling approach offers a workaround. More of this type of creative financing will be needed, not just for energy efficiency retrofits, but also for adding garden suites and other “missing middle” housing.
Holcim to Build €500 Million Plant to Produce Net Zero Cement | ESG Today
Building materials company Holcim announced that it has broken ground on its new GO4ZERO plant in Belgium, engineered to produce net zero cement, and supporting European decarbonization goals. Planned investment in the new plant is expected to reach over €500 million, with the facility engineered to produce 2 million tons of net zero cement annually by 2029.
Energy Storage
Battery-Powered California Faces Lower Blackout Risk This Summer | BNN Bloomberg
California expects to avoid rolling blackouts this summer as new solar plants and large batteries plug into the state’s grid at a rapid clip. The state’s electricity system has been strained by years of drought, wildfires that knock out transmission lines and record-setting heat waves. But officials forecast Wednesday new resources added to the grid in the last four years would give California ample supplies for typical summer weather.
Will batteries follow Moore’s law? China invests $A1.3 billion into solid-state battery research | The Driven
[Excerpt] A total of six companies including CATL, BYD and Geely are eligible for the government support which will focus exclusively on all-solid-state batteries (ASSBs). ASSBs have a higher energy density than lithium-ion batteries but are difficult to produce in high volumes which is the main barrier to their uptake.
[Comment] The 6 billion yuan being offered by China works out to US$828 million or CAD$1.14 billion.
Solar and Wind
World’s largest solar plant goes online in China | pv magazine
The 3.5 GW Midon solar plant. Image: CGDG
China Green Development Group has switched on the 3.5 GW Midong solar project in Urumqi, China’s Xinjiang region. The project required an investment of CNY 15.45 billion ($2.13 billion). The extensive infrastructure of the project includes the installation of 1.23 million supporting piles, five 220 kV booster stations, and more than 208 km of transmission lines connecting the array to the grid via a 750 kV substation.
India set to install 21.2 GW of solar in fiscal 2025 | pv magazine
JMK Research projects that 21.2 GW of new solar capacity will be installed in India in fiscal 2025. The new additions will include 16.5 GW of utility-scale PV, 4 GW of rooftop solar, and 700 MW of off-grid installations.
Octopus adds 1GW wind farm to its massive renewable and storage plans in NSW | RenewEconomy
Octopus said on Tuesday that development of the new $3.5 billion, 1GW Merino Wind Farm was being planned for adjacent to the 400MW Saltbush (formerly Hay Plains) wind farm, which is also owned by Octopus.
Transportation
The Slowdown in US Electric Vehicle Sales Looks More Like a Blip | Bloomberg via Yahoo
After an underwhelming start to the year for US electric-vehicle sales, it might seem easy to conclude that the boom times are over. Sales were flat in the first quarter, Ford dramatically scaled back expansion plans and Tesla laid off 10% of its global workforce. But these dismal indicators only tell part of the story.
Long-Range EVs Now Cost Less Than the Average New Car in the US | BNN Bloomberg
The automotive industry has entered a fiercely competitive phase in the electric vehicle transition, and it’s producing an intriguing result for US car buyers: the first long-range EVs that are cheaper to buy than the average gas-powered car.
At least three manufacturers — Tesla, Hyundai-Kia and General Motors — now offer EVs with more than 300 miles (480 kilometers) of range for less than the cost of the average new vehicle sold in the US, according to an analysis by Bloomberg Green. The most affordable is Hyundai’s 2024 Ioniq 6, which comes with 361 miles of range and a price tag that’s 25% below the national average of roughly $47,000.
Chinese EV Giants Hammered by Biden Tariff Are Welcome in Brazil | BNN Bloomberg
Shut out of US markets and under fire in Europe, China’s electric-car makers are zeroing in on the countries where they’re welcome. One of the big ones is Brazil.
Policy
EU approves law to hit gas imports with methane emissions limit | Reuters
European Union countries approved a law on Monday to impose methane emissions limits on Europe’s oil and gas imports from 2030, pressuring international suppliers to cut leaks of the potent greenhouse gas.
[Comment] I went looking for the actual limits, figuring they established a methane intensity threshold. It seems even the Q&As seem not to address this point, leaving me wondering. That said, the regulation will require companies “to properly measure, monitor, report and verify their methane emissions according to the highest monitoring standards, and act to reduce them.”