This is How the Government Can Ramp Up Climate Tech Investment

At-a-Glance:

The last couple of weeks have brought a steady stream of new pledges to achieve net-zero carbon emissions within the next handful of decades. And yet a report released in September, by the International Energy Agency, estimated that roughly half of the technologies that will be needed to get to net zero globally by 2050 aren’t even commercially available yet. The secret of deep decarbonization is that it won’t happen by just plugging into a wind farm or buying carbon offsets in a tropical forest. Without new technologies, it will be impossible to rein in emissions from the most-carbon intensive sectors of the economy such as heavy industry and long-distance transport. To learn more, read “This is How the Government Can Ramp Up Climate Tech Investment.”  (Reading this article requires a subscription.)

Key Takeaways:

  • Physicist Varun Sivaram sees the first step is to establish a National Energy Innovation Mission and create a White House Task Force to coordinate spending across different federal agencies. Sivaram and his team include a draft executive order in the report so the next administration can just plug and play.
  • Step two is to ramp up spending on energy innovation research and development from the current rate of about $9 billion a year to at least $25 billion by 2022.
  • The plan breaks down decarbonization into 10 categories where breakthroughs must occur. These include clean fuels, clean agricultural systems, carbon capture use and sequestration, and carbon removal.
  • One of the most persuasive moments in the report comes in a chart showing the disconnect between the sectors in the U.S. responsible for emissions and the corresponding research budget through the Department of Energy. Electricity produces 27% of emissions but gets 47% of the research dollars, while industry produces 22% of the emissions but receives 6% of the innovation funding.
  • The proposed budget would remedy that by adding money to underfunded areas, such as tripling the money for carbon capture from $115 million a year to $300 million.

Path to 100% Perspective:

Government economic stimulus must go beyond merely boosting the amount of renewables, but should also support system flexibility. We don’t just need wind turbines and solar panels but also energy storage, optimization platforms and flexible power plant technology to balance the influx of renewables. Energy storage and digital optimization is already becoming essential as we increase the amount of renewables on the grid to manage the volatility of wind and solar. Flexible gas engine technology is ready to use future fuels such as green hydrogen and synthetic methane derived from renewable energy sources (Power-to-X). These will help to balance out the longer-term needs of the grid, that can’t be matched by shorter duration energy storage.

 

Photo: Luke Sharrett/Bloomberg

 

San Antonio Utility Taking Steps Into An Ultra-Green Future

At-a-Glance:

Electric utilities are making efforts to reduce and end carbon emissions. But right now, they’re struggling with the overselling of alternatives when they don’t have enough essential backup in the form of storage. They also have the huge imperative of maintaining service — in lay terms, keeping the lights on. CPS Energy, San Antonio’s municipally owned electric and gas utility with over 860,000 electric and 358,000 gas customers, is putting its best big green foot forward, but wants to avoid being trapped into rigidity. To learn more, read “San Antonio Utility Taking Steps Into An Ultra-Green Future.”

Key Takeaways:

  • CPS Energy has canvassed the world, seeking ideas that will best deliver 500 MWe of new technology, 900 MWe of solar power and 50 MWe of storage.
  • In response to the CPS Energy July request for information (RFI), the utility has received nearly 200 expressions of interest from around the world.
  • The responses break down this way:
    • Refined gas-powered generation, turbines or reciprocating engines
    • Compressed-air energy storage
    • Liquid air (cryogenic) energy storage
    • Thermal energy storage, using mostly waste heat in concrete or rock hosts
    • Underground pumped hydro, using abandoned oil wells and mines for the drop
    • Kinetic storage with flywheels
  • These technologies promise longer duration, higher efficiency, and less degradation than today’s available battery storage, CPS Energy leadership said.

Path to 100% Perspective:

CPS has developed a Flexible Path plan with goals of reaching an 80 percent non-carbon-emitting energy portfolio by 2040 and reaching net-zero carbon emissions by 2050. The Texas municipal utility plans to add about 900 megawatts of solar, 50 megawatts of energy storage and 500 megawatts of new technology solutions, to include alternative fuels.

 

Photo by Johannes Plenio on Unsplash