Greenify #64: The Solar Empire
May 26 ,2023
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📌 Fact of the week
According to the IEA, investment in clean energy will extend its lead over spending on fossil fuels in 2023. 📈
Hottest news of the week…
Regulation 🗃 – German drama over heating law 👨⚖️
What happened: In Greenify #60, we spoke about Germany’s law proposal that would ban new fossil heating installations starting in 2024. The proposal stated that, starting in 2024, all heating systems installed in new buildings will have to run on at least 65% renewable energy. This week, drama unfolded within Germany’s three-party ruling coalition. Specifically, the FDP temporarily blocked the law proposal, with one of the party’s energy spokesperson saying: “we have a fundamental need for change in terms of content of the law, and that for us the draft presented by Robert Habeck does not represent a sufficient basis for consultation for the parliamentary procedure." 😠
Zoom out: Germany aims to become net zero by 2045, and zeroing in on buildings’ emissions is crucial towards achieving the goal. At a global level, energy used to operate buildings (heating/cooling/cooking etc) accounts for about 25-30% of global greenhouse gas emissions, and heating plays a big part in that. This week, the FT digged deeper into the topic, exposing the issues some current homeowners would face, particularly from an economical standpoint, should the law come into place. 💸
Business 💰 – Exxon expanding into lithium mining! ⛏️
What happened: Exxon Mobil has acquired drilling rights in Arkansas, known for its lithium-rich deposits, as part of the oil industry's increasing interest in critical minerals. The company invested $100 million in acquiring rights for a 48.5-hectare area. Exxon's move toward mining, along with a recent commitment to build its EV charging network, suggests a recognition that the demand for internal combustion engines is declining and the need to look forward is happening now. 👀
Zoom out: Lithium-ion batteries remain the most popular type due to their lower price point despite advancements in other technologies. The demand for lithium is expected to rise by nearly 90% over the next two decades, driven by the growth of electric vehicles and renewable energy storage. Exxon is not the only Oil & Gas company which made the move… others, including British Petroleum, are also investing in lithium exploration and battery manufacturing.💪
Innovation 💡 - Recap on Sustainable Aviation Fuels 🛫
What happened: The MIT Download looks into the hot topic in the aviation industry: sustainable aviation fuels. These fuels, which derive from renewable sources, fall into two categories: biofuels and synthetic electrofuels. Biofuels, preferred by legislators, are mostly derived by waste, agricultural residues or landfill trash. Although there exist other ways to decarbonize aviation, namely hydrogen or battery powered planes, SAFs remain the most convenient solution, due to increased reliability from a performance perspective as well as little retrofitting requirement vs. existing fleet. 👍
Zoom out: Aviation accounts for c.2% of global emissions, according to the article. To solve the issue, companies’ innovation and regulation are clearly driving change in the industry: on the latter, the EU finalized the RefuelEUAviation deal in April, requiring fuel supply at EU airports is required to include 2% of sustainable aviation fuel (SAF) in the mix by 2025 and 70% by 2050. 👮
Deep dives of the week…
Chart of the week - The Solar Empire ☀️
The exponential growth solar energy had over the last 10 years is astonishing. Initially heavily subsidized by government efforts, particularly in Germany throughout the 2000’s, increase in scale and China’s entry in the market have drastically lowered costs for solar energy. Today, solar energy scores a 2 out of 3 in the energy trilemma: it’s cheap, clean… but not reliable. Reliability will always depend on weather conditions for solar/wind, as well as on the parallel development of battery systems which allow solar energy to be stored and later reused. Check above our fact of the week! ⬆️
Source: Twitter, Michael Thomas
Company of the week - BWX, developing container-size reactors!
This week we talk about a seasoned company which has recently been featuring in the news thanks to its latest innovation: a container-size nuclear reactor! The company is BWX Technologies, a defense contractor developing a mobile nuclear reactor called Project Pele for the US military. Unlike conventional small modular reactors (SMR), this can fit into a shipping container and be delivered on a truck. The reactor will be ~1% the size of common ones, but will also have a much smaller capacity of one to five megawatts. Usually it can take decades before these technologies get approved, but the US Defense involvement in this order means BWX will go through a different approval process that could enable its system to generate electricity as early as 2025. Find out more on Bloomberg. 💡
Analysis of the week - New week, new deal, new technology:
London-based climate tech startup UNDO has secured $12 million (£9.6 million) in funding to expand its carbon removal efforts through Enhanced Rock Weathering (ERW). 🤔
Rock weathering is a process which occurs naturally when CO2 in rainwater interacts with silicate rocks – such as basalt. The CO2 mineralises and is safely stored as solid carbon for hundreds of thousands of years. UNDO utilizes crushed basalt rock, a by-product of the mining and quarrying industry, and spreads it on agricultural land to accelerate the natural process of rock weathering. This process not only removes carbon from the atmosphere but also releases valuable nutrients into the soil, enhancing crop yield and reducing the need for fertilizers.👍
The investment includes £9.6 million in new funding led by Lowercarbon Capital and AENU, with an additional £0.8 million renewal from carbon removal purchaser Stripe. UNDO has already partnered with Microsoft to spread 25,000 tonnes of basalt rock on UK agricultural land and permanently remove approximately 5,000 tonnes of CO2 over the next two decades! If some fields in the UK can remove so much CO2, the technology seems to have a great potential! For comparison, the largest Direct Air Capture plant in the world, Orca by Climeworks, is expected to suck up 10,000 tonnes of CO2 over the same period. 👨⚖️
👋 See you next Friday, for the best sum up of this coming week!
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