Global Climate News - April 25
IEA's Battery and Secure Energy Transitions Report; UK's Sustainable Aviation Fuel Mandate; Northern Ireland's Blue Carbon Action Plan; CO2 electrolysis to produce formate; Restoring seaweed forests;
Use of Batteries for Energy Storage
Key observations and ideas from IEA’s Battery and Secure Energy Transitions Report:
Battery use in energy reached 2400 GWh in 2023, largely used in electric vehicles; fourfold rise from 2020
Prices have decline from USD 800/kWh a decade ago to USD 140/kWh in 2023
Lithium iron phosphate (LFP) has lowest weighted average cost, over 20% lower than Nickel manganese cobalt oxide (NMC);
Sodium batteries can cost 20-30% less than LFP, but have about 40% lower energy density and limited supply; Hard carbon anode is the limiting factor in scaling production of sodium batteries
Recent innovations to reduce battery costs - integrating cell directly into vehicle chassis, increasing manganese content, CTP or cell-to-pack design
Cell-to-pack design integrates cells directly into the pack structure, eliminating the need for separate assembly into modules.
In terms of passenger-kilometres, 2/3 wheelers and electric buses are most efficient
Two/three-wheelers have the highest efficiency in terms of battery capacity needs per passenger-kilometre served, although ranges may differ for each mode. Battery powered buses offer the second most efficient performance for passenger-kilometres provided, followed by small EVs (40 kWh) and average size EVs (approximately 60 kWh). SUVs (around 80 kWh) demonstrate the least efficient performance on a passenger-kilometre basis, requiring double the battery capacity per passenger-kilometre of small EV
Supplying ancillary services (such as frequency regulation, voltage support and operating reserves) to the power sector is driving 15% of battery deployments annually
Increasing use of batteries to manage transmission grid congestion - ‘grid boosters’ in Germany, distribution flexibility markets in UK, flexibility tenders in France
Multi-day energy storage projects being set up- Iron-air battery project in California
Need to explore other battery chemistries such as redox flow for long-duration storage
Neither lithium-ion or sodium-ion batteries are likely to be able to serve significant shares of longer duration storage (across days) because of cost and technical challenges arising from prolonged high states of charge
Potential Application of different battery technologies based on duration, IEA (April, 2024) Regulatory challenges in scaling battery storage - many countries do not have a market for ancillary services provided by batteries; double charging of grid tariffs
Because of its dual character as both generation and load (demand), storage may be taxed both when charging and discharging, resulting in a systemic disadvantage compared to other technologies. Even when there is no injection tariff, storage systems can be exposed to withdrawal tariffs for each of their charging cycles.
Emerging markets need to reduce cost of capital for clean energy projects
Cost of capital for battery storage projects in emerging market and developing economies is at least twice as high as in advanced economies. While macro factors such as the rule of law and currency fluctuations are major contributors to this high cost of capital, so too are energy sector specific risks. These can include unclear or unstable regulation, lack of reliability of revenues, lack of focus on downstream policies and delays in obtaining grid connections.
VC investment in battery start-ups has declined by 20% from 2022 to 2023
After mining, China dominates every stage in the batteries supply chain
To increase adoption - make EVs more affordable especially in markets other than China; setup more charging; standardize battery packs to allow swapping, reuse, recycling; provide long-term policy support; diversify raw material supply chains.
ET Energy | IEA - Battery and Secure Energy Transition Report, April 2024 (PDF)
News from governments
UK has published a Sustainable Aviation Fuel (SAF) mandate that will “deliver 10% of all jet fuel in flights taking off from the UK from sustainable sources by 2030 and 22% by 2040”. Subject to approval from the Parliament, the mandate is expected to be implemented from January 1, 2025.
The mandate will start in 2025 at 2% of total UK jet fuel demand, increase on a linear basis to 10% in 2030 and then to 22% in 2040. From 2040, the obligation will remain at 22% until there is greater certainty regarding SAF supply.
The mandate also aims to incentivize the development of new SAF technologies by capping the feedstocks used in the hydroprocessed esters and fatty acids (HEFA) process, and other measures.
To drive innovation and diversification, a separate obligation on power-to-liquid fuels will be introduced from 2028 and will reach 3.5% of total jet fuel demand in 2040. This will accelerate the development of this high-tech fuel, which is less dependent on feedstocks and can generate greater emission reductions. The mandate includes buy-out mechanisms for both the main and power-to-liquid obligations to incentivise supply while protecting consumers where suppliers are unable to secure a supply of SAF. These will be set at £4.70 and £5.00 per litre of fuel, respectively.
Statement to Parliament | Creating the UK SAF mandate, April 2024 (PDF)
US has passed new rules that require coal & gas-based power plants to control 90% of their carbon pollution, reduce mercury emissions, reduce pollutants in wastewater discharge, and safely manage coal ash. The Guardian | EPA Press Release
Australia has announced a AUD 330 million investment in projects to reduce emissions in industries. These include - energy efficiency upgrades in aluminium refining and food starch manufacturing; electrifying mineral mining and processing; use of alternative fuels in steel manufacturing; and reducing emissions from cement and chemical facilities. Press Release
The state of Victoria (Australia) is developing maps that will help renewable energy developers site projects in areas with lowest impact on wildlife. Carbon Pulse | Press Release
Northern Ireland has published draft Review of the Marine Protected Areas Strategy for the Northern Ireland Inshore Area 2024 – 2030 and a Blue Carbon Action Plan for consultations. Carbon Pulse
Top Stories
Dubai and Saudi Arabia are partnering on a seawater reverse osmosis desalination project with a capacity of 180 million imperial gallons per day, in Hassyan (UAE). The project is estimated to have a levelised water cost of $c 0.389/cubic metre, much lower than previous desalination projects in the region. DEWA
US-based OCOchem has developed an electrolyser for CO2 electrolysis. Using energy, carbon dioxide and water are converted into formate (an organic molecule), releasing oxygen as a by-product. The electrolyser operates at room temperature and uses tin as a catalyst. Formate can be used as a feedstock, replacing petroleum-based feedstocks, for production of chemicals and materials. It can also be used for making hydrogen and synthetic fuels.
Formate is utilized in everyday applications such as silage preservatives, corrosion-free deicing salts, drilling fluids, fertilizers, and in the manufacture of leather and clothing. It also plays a crucial role in tire and rubber production, bacterial disinfection, waste, and feed water treatment, and as an emerging liquid carrier of hydrogen and carbon oxide.
While CO2 electrolysis was carried out at a smaller scale previously, OCOchem has scaled up its electrolyser capacity to 650% more than similar projects.
businesswire | OCOchem Press Release | OCEAN Project - Oxalic acid from CO2
To restore seaweed forests off the coast of Portugal, Seaforester seeds small stones with spores of seaweeds and allows them to grow in a controlled environment for a few months. The stones are then thrown into the sea in areas with shallow water near the coast. The project is low cost, does not require especially skilled manpower, and can engage local communities. Seaforester | video
A new study estimates the potential of environment-friendly agriculture practices to generate carbon credits on land in India, based on carbon credit certifier Verra’s VM0042 methodology. Among the practices considered - zero/reduced tillage, avoiding burning crop residue, reducing nitrogen fertilizer use, and decreasing irrigations in wheat production season - the authors find that reducing fertiliser use is most likely to qualify for carbon credits under Verra’s methodology, in the two states - Punjab and Bihar - observed. Other practices are either already practiced by enough farmers, or required by law, and thus ineligible for carbon credits as per Verra’s criteria.
the practice of not burning crop residue is deemed ineligible because it is legally banned and > 20% of farmers in Punjab are already not burning it, thus it is not considered additional. Verra’s VM0042 adopts the 20% threshold of common practice from the CDM methodological tool “Common Practice”
New Report - Articulating and Assessing Biodiversity Impact, WWF & The Biodiversity Consultancy (PDF) (via Carbon Pulse)
You can find all previous posts of this newsletter here.
Have the best day!
Best,
Soumya Gupta
Founder, Telborg.com | SummaryWithAI.com
LinkedIn | Twitter | soumya@telborg.com
