Discussions on the peak in demand for fossil fuels, global transition to renewables, and the performance of clean energy stocks. Exploring the emerging market for clean energy tax credits and upcoming events providing insights on market growth. United States government's efforts to reduce inflation and implement guidance on various topics. Potential of geothermal energy in power generation, heating and cooling, and energy storage. Importance of lithium-ion batteries in the EV revolution and grid-scale energy storage. Potential of natural hydrogen as a fuel source and challenges in extracting it economically. Wrapping up the year with gratitude, job opportunities, and anticipation for the next year.
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Quick takeaways
The clean energy industry is facing workforce shortages and needs to attract and train workers from an early age to address the labor challenges in clean energy projects.
Efforts are underway to explore and tap into natural hydrogen resources, which have the potential to be a cleaner source of fuel compared to traditional methods of hydrogen production.
Sustainable aviation fuel (SAF) is expected to gain more attention in 2024, but the industry will need to address sourcing and environmental impact issues as it transitions to cleaner aviation fuels.
Deep dives
Workforce shortages pose challenges to clean energy industry
The clean energy industry is facing widespread workforce shortages, with companies struggling to find skilled labor across various sectors. The demand for builders, electricians, and other workers is outpacing the available supply, leading to labor challenges in clean energy projects. While there is a transition of workers from the fossil fuel industry to clean energy jobs, the skillsets do not always align. Efforts are needed to attract and train workers, starting from an early age, to address the workforce shortage in the long term.
Natural hydrogen resources could gain more attention
The discovery of naturally occurring hydrogen resources, known as natural hydrogen, has gained interest in the energy industry. Although still in its early stages, efforts are underway to explore and tap into these resources. The potential for natural hydrogen to be a cleaner source of fuel compared to traditional methods of hydrogen production has generated curiosity. Further research and development is needed to determine the feasibility and economic viability of extracting and using natural hydrogen as an alternative energy source.
Sustainable aviation fuel (SAF) to become a focus in 2024
Sustainable aviation fuel (SAF) is expected to gain more attention in 2024 as a way to decarbonize the aviation industry. The Biden administration has released guidance for tax credits to incentivize the use of SAF, and major airlines have made commitments to purchase significant quantities of SAF. However, questions remain regarding the sourcing and environmental impact of SAF. The industry will likely grapple with issues such as feedstock selection and compensation for SAF producers, as the transition to cleaner aviation fuels progresses.
Challenges in offshore wind development may continue
The offshore wind industry, both globally and in the United States, may face ongoing challenges due to project cancellations, contract renegotiations, and supply chain disruptions. These factors have resulted in delays and uncertainty in the offshore wind sector, impacting the pipeline of projects. While progress will continue, the pace of development may be slower than anticipated. Efforts to address supply chain bottlenecks and ensure the economic feasibility of offshore wind projects will be crucial to the industry's growth and success.
Balancing large-scale and distributed energy infrastructure is crucial
Finding the right balance between large-scale energy infrastructure, such as utility-scale solar and wind projects, and distributed energy resources (DERs) will be crucial in achieving clean energy goals. Both types of assets play a significant role in the energy transition, but there is a need to prioritize their integration and ensure proper valuation of DERs. Collaborative efforts between state utility regulators, energy industry stakeholders, and policymakers will be necessary to optimize the use of both large-scale and distributed energy infrastructure for decarbonization.
The competing trends in the energy transition from 2023 were stark: a looming peak in demand for oil, gas, and coal; a global agreement to transition away from fossil fuels; and an increasingly realistic pathway to triple renewables development.
But we also experienced the hottest global temperatures in 125,000 years, record US oil & gas production, inflation headwinds that challenged large renewables projects, and a very tough year for clean energy stocks.
Every new investment in energy infrastructure matters in an increasingly consequential way. This is the decade to get it right, and we’re almost halfway through it.
So, as is tradition, we spend some time outlining our picks for storylines of the year – with that urgency in mind. And we’ll talk about what they signal about the path ahead here in the US and beyond.
Sign up for Latitude Media’s Frontier Forum on January 31, 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.
The Carbon Copy is supported by FischTank PR, a specialized climatetech PR firm dedicated to bringing meaningful results for companies in sectors spanning grid edge, solar, energy storage, battery, EVs, alternative fuels, VC and green building. FischTank helps clients stand out in an increasingly competitive and noisy space. Visit FischTank PR to learn more.
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