Mailbag episode! Interest rates, carbon dioxide removal, load growth, and more
Nov 9, 2023
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Topics covered include load growth, impact of interest rates on climatetech, challenges of siting carbon dioxide pipelines, lack of clear winning technology for carbon dioxide removal, European energy companies acquiring US companies, bullishness on macro grid, and personal anecdotes about childhood fascination with rocks.
55:04
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Quick takeaways
European energy companies are strategically acquiring US clean energy assets, highlighting the recognition of opportunities in the US clean energy market and the international nature of these companies.
The field of carbon dioxide removal technologies is diverse and complex, with no clear winners due to challenges in cost-effectiveness, scalability, durability, and verification, leading to the pursuit of multiple pathways simultaneously to address the urgent need for carbon removal.
Investments in climate tech should consider both global scalability and region-specific challenges to determine the viability and applicability of different solutions, taking into account sectors that can have a global impact and those that require tailored solutions for specific regions.
Deep dives
European energy companies acquiring small energy assets and startups in the US
European energy conglomerates like NL, RWE, Shell, National Grid, and Schneider are making acquisitions in the US clean energy sector, indicating recognition of the potential and urgency in the clean energy market. This trend highlights the European companies' strategic interest in entering the US market, which is currently at the forefront of clean energy development. Furthermore, European energy companies have been early movers in the clean energy sector and are experienced in navigating the challenges and opportunities associated with the transition. While this trend is not extensively covered, it reflects the international nature of European energy conglomerates and the market dynamics between the US and Europe.
Carbon dioxide removal technologies and their challenges
The field of carbon dioxide removal technologies is vast and diverse, encompassing methods such as direct air capture, biomass sinking, kelp farming, forestry practices, and land use management. While there is ongoing research and development in this area, it is difficult to identify clear winners due to several factors. These include the need for cost-effective solutions, scalability, durability, and the ability to measure and verify the effectiveness of carbon removal. Each method faces challenges in meeting these criteria, which is why multiple pathways are being pursued concurrently to address the urgent need for carbon removal. While this complexity can be confusing, it reflects the multifaceted nature of the problem and the ongoing quest for effective solutions.
European energy companies acquiring US clean energy startups
European energy companies are acquiring US-based clean energy startups and small energy assets. This trend is driven by various factors, including the attractiveness of the US market, the international nature of European energy companies, and the early entry of European companies into the clean energy sector. This trend is not extensively covered but highlights the strategic interest and recognition of opportunities in the US clean energy market. It is important to note that different sectors within the clean energy industry may have varying degrees of global adoption, with some technologies being inherently global while others are more region-specific.
Investing in climate tech and considerations for the developing world
When considering investments in climate tech, there are varying factors to take into account. Some sectors naturally have a global focus and can potentially scale globally, while others are region-specific and may not easily translate to the developing world. Steel-making, for example, is a sector where successful technologies can have a global impact. However, sectors such as electrification of two-wheelers require tailored solutions for specific regions, such as sub-Saharan Africa or India. The investment landscape should consider both global scalability and regional-specific challenges to determine the viability and applicability of different climate tech solutions in the developing world.
Challenges and opportunities in carbon dioxide removal
Carbon dioxide removal technologies face numerous challenges in terms of cost-effectiveness, scalability, durability, and measurability. These challenges make it difficult to identify clear winners in the field. While ongoing research and development are actively pursued, it is essential to explore multiple pathways simultaneously to address the urgent need for carbon removal. The goal is to develop solutions that are affordable, scalable, long-lasting, and verifiable. While the complexity of carbon dioxide removal technologies may be confusing, it reflects the multifaceted nature of the problem and the ongoing quest for effective and sustainable solutions.
It’s about that time again. You sent in great questions for Shayle, and in this episode we’re tackling them with the help of Sarah Golden, vice president of energy at GreenBiz. Together Shayle and Sarah cover topics like:
Load growth and whether data-center demand is good or bad for decarbonization.
The crash in photovoltaic module prices and what it means for the solar industry.
The impact of interest rates on climatetech.
The challenges of siting carbon dioxide pipelines.
Why there’s no clear winning technology for carbon dioxide removal.
European energy companies acquiring U.S. companies.
Why Shayle is bullish on the macro grid, despite the slow pace of interconnection and transmission buildout.
Plus: volcanoes, Frankenstein, and Shayle’s childhood with geodes.
Canary: The US offshore wind industry faces a moment of reckoning
S&P Global: Cancellation of Navigator CO2 pipeline raises critical issues for several industries
Catalyst: Growing the carbon dioxide removal market
Sign up for Latitude Media’s Frontier Forum on January 29, featuring Crux CEO Alfred Johnson, who will break down the budding market for clean energy tax credits. We’ll dissect current transactions and pricing, compare buyer and seller expectations, and look at where the market is headed in 2024.
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