Tag Archives: sustainability

New York’s plan to expand storage capacity to 6 GW by 2030 includes centralized procurement method

At-a-Glance

On December 28, 2022, New York Governor Kathy Hochul announced a plan for how the state will reach 6 GW of energy storage by 2030, representing at least 20% of peak electricity load. For more, read New York’s plan to expand storage capacity to 6 GW by 2030 includes centralized procurement method.

Key Takeaways

  • The proposed plan is projected to reduce projected future statewide electric system costs by nearly $2 billion and the average customer bill would rise by less than 0.05%, or 46 cents a month.
  • The plan calls for 3,000 MW of new bulk storage that would power about one million homes for up to four hours; 1,500 MW of new retail storage to power about 500,000 homes for up to four hours; and 200 MW of residential storage that would power 120,000 homes for up to two hours.
  • The power would be procured through a competitive Index Storage Credit mechanism that officials say will provide some certainty to projects while saving money for consumers.
  • At least 35% of plan funding would support projects to benefit disadvantaged communities and target fossil fuel peaker plant emissions reductions.
  • Electric utilities would also be required to study the potential of high-value energy storage projects toward providing cost-effective transmission and distribution services not currently available in existing markets.

Path to 100% Perspective

New York’s plans to double its energy storage capacity by 2030 is an important step for the state to reach its goal of 100% zero-emission electricity by 2040. In the big picture, a key piece of the 100% emissions-free electricity puzzle will be to deploy significant amounts of long-duration energy storage, especially from 2030 onward. The need to meet daily ramping needs and energy requirements covering a few hours is currently driving the adoption of short duration battery energy storage. After 2030, multi-day and seasonal week-long gaps between supply and demand will require larger quantities of storage capacity. This is where long duration energy storage and sustainable fuels come in. As well as offering green, firm capacity, sustainable fuels can be stored for many months and can release megawatts of power within minutes when needed, when combusted with thermal balancing power plants.

Biggest biofuel producer in US pledges carbon neutrality by 2050

At-a-Glance:

The largest biofuel manufacturer in the U.S., POET, announced a new goal this week of reaching carbon neutrality by the year 2050. The company said in a sustainability report that it has a number of benchmarks it aims to meet toward that objective, including reducing the carbon intensity of bioethanol by 70 percent and investing in technology to advance low-carbon bioproducts. The company also said it would aim to advance policies that support these goals. To learn more, read, “Biggest biofuel producer in US pledges carbon neutrality by 2050.”

Key Takeaways:

  • Carbon neutrality differs from zero emissions as companies that commit to neutrality aim to offset their carbon footprint by attempting to remove the same amount of CO2 from the atmosphere that they contribute.
    • Many companies do this by buying carbon offset credits that go toward sustainability projects.
  • In its report, POET claimed to be the fastest-growing renewable CO2 business in the U.S.
  • The company said it would “consider” numerous ways of reducing carbon emissions including investing in solar power as well as technologies to capture and store CO2.

Path to 100% Perspective:

Government agencies, communities and organizations are pledging to reach clean energy or carbon neutrality goals with ambitious timelines. However, the only way to reach these complex solutions in the next few decades is strategic planning and integration of multiple technologies. Biofuels have been part of the energy transition since the 1980’s, but the focus on biofuels gained more traction in the early 2000’s. Since then, the cost for renewable energy has dramatically increased which has increased the popularity for fuels produced by renewable energy such as hydrogen, ammonia and synthetic methane. POET’s increased focus and investment in emerging technologies could help to propel this biofuel manufacturer towards their carbon neutral goals and milestones.

 

Photo by Guillaume de Germain on Unsplash

JPMorgan Chase wants to be the commercial bank for ‘green economy’ companies

At-a-Glance:

As the world’s largest financial institutions jockey for leadership positions in financing the transition to a clean economy, JPMorgan Chase is creating a team dedicated to building deeper relationships with companies that sell “environmentally-friendly” products and services or that focus on environmental conservation. To learn more, read “JPMorgan Chase wants to be the commercial bank for ‘green economy’ companies.”

Key Takeaways:

  • The new Green Economy team is explicitly tasked with providing services for companies — notably private entities in need of capital — that are poised to benefit from the transition.
  • The group will initially be focused on four sectors — renewable energy, efficiency solutions, agriculture and food technology, and sustainable financial firms that provide capital or project finance.
  • While many renewable energy companies are mature, many are just getting started and they will need capital and advice to innovate and evolve efficiently in a changing world.

Path to 100% Perspective:

Since March 2020, policy makers worldwide have made decisions that will shape the energy sector for decades. Enormous recovery stimulus packages have been announced to support industries and communities to get back onto their feet, with hundreds of billions of dollars allocated to the energy sector alone. Investment firms such as JPMorgan Chase have identified the need to invest in decarbonization innovation. These investment decisions are designed to counteract the financial shocks of the pandemic, but they will also determine whether the world meets its long-term energy and climate goals.

 

Photo by Micheile Henderson on Unsplash