investors

The year in energy

February 5, 2025 By EarthWise Leave a Comment

Last year saw some major trends in the global energy sector. Perhaps the most dramatic was the shift to renewable power, which continued to outpace the projections of both financial analysts and industry experts. 2024 saw new highs in renewable installation, largely due to China, which accounted for more than half of all the solar power installed globally. Huge solar installations also came online in California and Nevada during the year. On the other hand, the amount of coal burning for the year also exceeded expert predictions, also largely due to China.

A second trend was increasing sales of electric vehicles, which reached a new high, although short of expectations. A major driving force in EV sales is the dropping price of lithium-ion batteries, which fell by 20% in 2024. Again, China was a major factor with roughly half of all its domestic vehicle sales being electric.

Coal’s decline is being slowed by the rising demand for electricity. The increased use of electric heating and cooling along with the increasing use of EVs are major factors. But the proliferation of energy-hungry data centers incorporating artificial intelligence capabilities is driving up the demand for power even more.

Perhaps the clearest indication of the future for global energy comes from investors, who put about $2 trillion into clean energy last year. That is twice as much as invested in oil, coal, and natural gas.

The history of energy has seen the Age of Coal and the Age of Oil. By all indications, we are now heading into the Age of Electricity.

**********

Web Links

The Year in Energy in Four Charts

Photo, posted November 23, 2024, courtesy of Mussi Katz via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Investing in carbon capture

January 22, 2025 By EarthWise Leave a Comment

The interests of billionaires seldom seem to coincide with our own. In fact, they often seem to be quite the opposite. But there are a number of billionaires who are trying to help the world combat climate change. Yes, they want to make money doing it, but doing it is nevertheless in everyone’s interest.

A group headed by Bill Gates that included some of the wealthiest people from around the world met last summer in London to evaluate companies working to mitigate the effects of climate change. These included companies developing carbon dioxide removal technologies. Stripping carbon dioxide out of the atmosphere is an obvious way to deal with the fact that we continue to dump too much of it into the atmosphere – obvious, but extremely difficult to do at any scale that makes a difference.

Companies working on carbon capture have raised more than $5 billion since 2018. There are hundreds of companies working on it and investors include billionaires, venture capitalists, private equity firms, and major corporations. Companies like Microsoft, Google, and United Airlines have committed billions of dollars to purchase removal credits: payments to companies for removing carbon dioxide.

There are only a few dozen carbon removal facilities operational today and together they only capture a tiny fraction of the carbon dioxide humans release into the atmosphere. The hope is that such facilities will scale up in size and number so that they will make a real dent in the problem. But it will take many years at best, and the planet doesn’t have that much time. To make a difference, carbon emissions must be reduced as quickly as possible.

**********

Web Links

The New Climate Gold Rush: Scrubbing Carbon From the Sky

Photo, posted April 19, 2020, courtesy of Greg Rubenstein via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Fusion energy

February 29, 2024 By EarthWise Leave a Comment

Nuclear fusion is the process that powers the sun. Two atoms of hydrogen unite to form one helium atom and release energy in the process. Hydrogen bombs work in this way and since their development in the 1950s, scientists have sought a way to use fusion to generate electricity. Many scientists believe that the key to a fully decarbonized future is a combination of solar, wind, and fusion power.

Nuclear fusion does not involve radioactivity and thus does not have the dangers associated with the nuclear fission used in existing power plants. Over the decades, billions of dollars have gone into fusion research, but the challenges faced in peacefully triggering a fusion reaction have made success always seem to be extremely far off in the future.

The world’s largest fusion project – the International Thermonuclear Experimental Reactor or ITER – was initiated in 1985. The project involves 35 countries, and the reactor, still under construction in France, has yet to deliver any tangible results.

In the past couple of years, there have been important demonstrations of new and different ways to create nuclear fusion. A system using laser fusion achieved fusion ignition, in which a reaction briefly became self-sustaining. A system using magnetic confinement fusion produced a plasma that generated 11 megawatts of power for a world-record five seconds.

There are more than 30 companies competing in the race to deliver fusion energy. Governments and private investors are funding efforts around the world. Whether any of them will succeed remains to be seen. The challenges are immense but so are the potential rewards.

**********

Web Links

Will Tech Breakthroughs Bring Fusion Energy Closer to Reality?

Photo, posted July 31, 2010, courtesy of Steve Jurvetson via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Electricity from chicken feathers

December 4, 2023 By EarthWise Leave a Comment

The food industry generates enormous amounts of waste and by-products. Each year, 40 million tons of chicken feathers are incinerated, causing adverse environmental effects. Not only does it release large amounts of carbon dioxide but also produces toxic gases such as sulfur dioxide.

Researchers at ETH Zurich in Switzerland and Nanyang Technological University in Singapore have developed a way to put chicken feathers to good use by using them to make fuel cells more cost-effective and sustainable.

Using a simple and environmentally friendly process, they extract the keratin from the feathers. Keratin is the protein that helps form hair, nails, the outer layer of skin, and feathers. The extracted keratin is then converted into ultra-fine fibers known as amyloid fibrils. The keratin fibrils are used in the membrane of a fuel cell.

Fuel cells generate clean energy from hydrogen and oxygen with only heat and water as byproducts. At the heart of every fuel cell is a semipermeable membrane that allows protons to pass through but blocks electrons, thereby producing an electric current. Fuel cells are the primary way hydrogen is used to directly generate electricity. Hydrogen cars run on fuel cells.

Conventional fuel cells typically use membranes made from highly toxic chemicals. The new ETH membranes essentially replace these toxic substances with biological keratin.

The researchers are investigating how stable and durable their keratin membrane is and to improve it if necessary. The team has already applied for a joint patent and is looking for partners and investors to further develop the technology and bring it to market.

**********

Web Links

Generating clean electricity with chicken feathers

Photo, posted July 10, 2016, courtesy of Matthew Bellemare via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Fake Meat And Climate | Earth Wise

March 10, 2023 By EarthWise 1 Comment

Investors have poured billions of dollars into efforts to replace animal proteins with plant-based substitutes or even laboratory-grown animal cells. Replacing meats with these products is certainly a favorable development for the climate, but it is not likely to offset livestock agriculture’s climate and land use impacts anytime soon.

According to research at Stanford University, even optimistic estimates are that only something like 5% of dietary protein will come from these technologies by 2030. That just isn’t fast enough to put a real dent in the food-related emissions problem.

Stanford environmental scientist David Lobell suggests that there should be much more focus on reducing emissions of animal-based systems. There really hasn’t been much effort in this area because it is only recently that the climate impact of animal agriculture has been a topic of public concern. One problem is that it is difficult for investors to monetize investments in approaches for lowering animal agriculture emissions. These might include alternative feeds or supplements or vaccinations that inhibit methane-producing microorganisms in animals’ digestive systems.

Another approach to the problem is changing the mix of animal proteins in people’s diets. Chicken and pork are half as bad as dairy per pound of protein, and about one-tenth as bad as beef, in terms of emissions.

Dairy is a major issue. There has been quite a lot of progress in increasing the use of dairy-free milk, but over the past 40 years, Americans have cut their consumption of milk in half but doubled their consumption of cheese. Progress in dairy-free cheese has not been anywhere near as successful as that of dairy-free milk. But new products are entering the marketplace all the time.

**********

Web Links

Is fake meat a real solution? Stanford expert explains

Photo, posted June 17, 2019, courtesy of Christolph Scholz via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Primary Ways To Mitigate Climate Change | Earth Wise

May 30, 2022 By EarthWise Leave a Comment

The most recent report issued by the Intergovernmental Panel on Climate Change states that the world must halt the increase in greenhouse gases within three years, reduce emissions by 43% in the next seven years, and eliminate them entirely by 2050. Otherwise, there will likely be catastrophic and irreversible impacts on the climate.

With respect to achieving these reductions, the report emphasizes decarbonizing the energy sector through electrification by replacing fossil fuels anywhere and everywhere possible. Where that isn’t yet practical – such as in shipping and aviation – the use of biofuels and hydrogen can provide a stopgap until battery technology becomes a viable alternative.

The economics of this approach continue to improve. Since 2010, the cost of wind, solar, and batteries has declined by as much as 85%. In many cases, costs have fallen below those of fossil fuels. Nonetheless, the report stresses that continuing to provide national, state, and local incentives for using renewable energy is a key factor in achieving the necessary reductions.

However, reducing emissions will no longer be enough. This is the first major IPCC report that states that man-made carbon dioxide removal strategies will be necessary to meet the goals of the Paris Climate Agreement. So-called natural carbon storage options, like planting trees and using farming methods that sequester carbon in soil, are also important parts of the strategy.

It is up to governments, policymakers, and investors to implement the necessary changes to mitigate climate change. There is lots of talk about it, but it will take concerted action to avoid increasingly dire consequences.

**********

Web Links

Report highlights affordable, available ways to mitigate climate change now

Photo, posted September 8, 2007, courtesy of Kevin Dooley via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Clean Energy In Rochester | Earth Wise

October 26, 2021 By EarthWise Leave a Comment

New York’s largest community choice clean energy program has been activated in the City of Rochester. The program, offered by Rochester Community Power, offers 57,000 residences and small businesses access to clean energy from hydropower and wind sources. It requires customers to opt out rather than enroll in order to provide clean energy to the greatest number of people.

Rochester Community Power is the city’s local community choice aggregation (CCA) program that leverages the collective buying power of participating residents to purchase renewable electricity and negotiate better terms for energy supply contracts.

The program will supply customers with more than 300 million kWh of renewable energy each year, which will avoid the emission of about 250,000 tons of carbon dioxide. Rochester plans to add a community solar program next year which will provide additional clean energy opportunities, including offering guaranteed savings to thousands of participants in its Home Energy Assistance Program.

The project will be managed by Joule Assets, which is a provider of energy reduction market analysis, tools, and financing. Joule Assets, as program administrator for the Rochester program, managed the competitive bidding process that secured a fixed rate for electricity for the next two years, shielding participating residences and businesses from volatile market prices.

Community choice aggregation programs are local, not-for-profit public agencies that are an alternative to investor-owned utilities. They give municipalities the ability to make decisions about the procurement, sourcing, and rates for energy for its residents.

**********

Web Links

New York activates its largest opt-out 100% renewable energy program

Photo, posted June 25, 2011, courtesy of Paulo Valdivieso via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Companies Promise Climate Action | Earth Wise

March 30, 2020 By EarthWise Leave a Comment

A growing number of major corporations are making promises on climate and the promises are getting more ambitious and for faster action. More companies are disclosing their carbon emissions and more of those companies have emissions reduction targets.

There has also been an acceleration in the rate at which companies set so-called science-based targets, which are specific, measurable carbon reduction goals that align the company with the Paris Agreement. Among the hundreds of companies with such targets are Coca-Cola, Nike, Best Buy, Walmart, and Hilton Hotels. According to one analysis, the number of Fortune 500 companies with concrete, ambitious carbon targets quadrupled in the past four year to 23%.

Environmental advocates have been pressuring companies for decades, but companies seem to be far more proactive now despite the fact that the U.S. government has largely dropped the ball on climate issues.

The reasons include the fact that the effects of climate change are becoming clearer to companies. Wildfires, rising sea levels, droughts and other aspects of the crisis both make headlines and affect business operations.

Meanwhile, solar and wind energy have gotten significantly cheaper, making it more attractive for companies to shift away from fossil fuels.

At the same time, investors are increasingly asking companies to act on climate issues. Consumers, employees, and the general public are increasingly demanding action and even children are adding to the pressure to act.

Making these commitments is one thing; following through on them and sticking to them is another. There are real concerns that there is a great deal of green-washing going on among companies trying to project a favorable image. In any case, if companies really want to lead on climate, they need to put their money where their mouths are.

**********

Web Links

Better Late Than Never? Big Companies Scramble To Make Lofty Climate Promises

Photo, posted June 22, 2016, courtesy of Mike Mozart via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

The Blue Acceleration | Earth Wise

February 24, 2020 By EarthWise Leave a Comment

The oil and gas sector is the largest ocean industry. It’s responsible for about one third of the value of the ocean economy. Sand and gravel, destined for the construction industry, are the most mined minerals in the ocean. And during the past 50 years, approximately 16,000 desalination plants have popped up around the world to help supply people with an increasingly scarce commodity: freshwater.

As a result of these and other human pressures, the world’s oceans have suffered a lot over time. But according to a comprehensive new analysis on the state of the ocean, human pressure on the world’s oceans, driven by a combination of technological progress and declining land-based resources, sharply accelerated at the start of the 21st century. Scientists have dubbed this dramatic increase, which shows no signs of slowing down, the “Blue Acceleration.”

A research team from Stockholm University analyzed 50 years of data from aquaculture, bioprospecting, shipping, drilling, deep-sea mining, and more. Their findings were recently published in the journal One Earth.

While claiming ocean resources and space is not new, lead author Jean-Baptiste Jouffray from the Stockholm Resilience Centre says “the extent, intensity, and diversity of today’s aspirations are unprecedented.”

The researchers also highlight how not all human impacts on the ocean are negative. For example, offshore wind farm technology has reached commercial viability allowing the world to reduce reliance on fossil fuels.

But how can the Blue Acceleration be slowed? Since only a handful of multinational companies dominate sectors like the seafood industry, oil and gas exploitation, and bioprospecting, one idea is to have banks and other investors adopt more stringent sustainability criteria for making ocean investments.

**********

Web Links

Human pressure on world’s ocean shows no sign of slowing

Photo, posted October 29, 2008, courtesy of Silke Baron via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Fast Food And Climate Change

March 1, 2019 By EarthWise 1 Comment

A coalition of global investors is urging some of the largest fast food companies to reduce greenhouse gas emissions. The group, which has approximately $6.5 trillion under management, wants the fast food chains to reduce the carbon footprint of their meat and dairy supply chains.

The global fast food sector is reportedly worth a whopping $570 billion annually. The coalition has targeted some of the most notable contributors to that figure, including McDonald’s, KFC, Domino’s, Wendy’s, Burger King, Pizza Hut, and Chipotle.

According to the investors, animal agriculture is one of the world’s highest-emitting sectors without a low-carbon plan. If left unchecked, emissions from animal agriculture alone would contribute 70% of the total worldwide target for emissions in 2050 that would keep the global rise in temperature below 2C. Animal agriculture also uses an estimated 10% of annual global water flows.

In their letter to the fast food giants, the investors are calling on the companies to implement clear requirements for suppliers of animal proteins to report and reduce their greenhouse gas and freshwater impacts. They want fast food companies to publish quantitative, time bound targets for reductions, and commit to publicly disclose the progress on these targets.

Climate change is increasingly a factor for investors when evaluating market risk. This investor letter comes just weeks after the EAT-Lancet commission report was published, in which their experts suggest that a sustainable diet for the planet by 2050 will require a 90% reduction in red meat and milk consumption.

Fast food may need to slow down.

**********