80. IRA first anniversary, the folly of DAC, CATL, VinFast, Russian Uranium
Aug 20, 2023
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Energy Transition experts Michael Barnard, Laurent, and Gerard discuss the one year anniversary of the Inflation Reduction Act, the issues with Direct Air Capture, CATL's impressive battery technology, the convenience of electric car charging, the rise of VINFAST, and the complexities of Russian uranium exports and sanctions.
The Inflation Reduction Act (IRA) has had a significant impact on the energy sector in the United States, highlighting the need for Europe to prioritize local energy production and invest in battery technology for storage.
Certain energy technologies, like direct capture and carbon capture and storage (CCS), face criticism for their questionable approach and allocation of subsidies, emphasizing the importance of targeting high-concentration CO2 sources and China's focused approach in dominating critical technologies.
Deep dives
Importance of US Inflation Reduction Act (IRA)
The Inflation Reduction Act (IRA) has had a significant impact on the energy sector in the United States, both in terms of energy technology installation and production. However, there is concern about the lack of response and strategic importance placed on energy production in Europe. The speaker highlights the need for Europe to prioritize local energy production, such as building electric cars and installing solar panels. The lack of investment in battery technology in Europe is also mentioned, indicating a missed opportunity for storage technology. The importance of understanding the energy revolution and its connection to wealth creation is emphasized.
Questionable Approaches to Energy Technologies
The discussion delves into the questionable approach of certain energy technologies, particularly direct capture and carbon capture and storage (CCS). The speaker criticizes the allocation of subsidies for capturing carbon dioxide (CO2) at a very low concentration, suggesting that it would be more effective to target high-concentration CO2 sources like cement plants or steel production. The political aspect of allocating funds to less efficient technologies is highlighted, drawing comparisons to China's focused approach in dominating critical technologies. Additionally, advancements in battery technology, exemplified by a fast-charging LFP product, are celebrated for their convenience and range, further indicating the shift towards electric vehicles.
Every Sunday, Laurent and Gerard debrief the main news in the Energy Transition. On the menu: - Inflation Reduction Act celebrates its first anniversary. Glass 60% full - Direct Air Capture has the best lobbyists, but is dreadful (see below for additional material) - CATL leaps ahead - 400km charge in 10mns!!!! - EV SPACs. Not a great track record. - From Russia with love: Uranium, caviar and vodka. Which of these 3 is not sanctioned?