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Corporations and private investors are backing new ‘green’ deals as climate worries mount

In the nine years since private equity and venture capital investments into sustainable technologies last crossed the $6 billion threshold, the problems caused by global carbon emissions have only intensified.

Now, as the world confronts the reality that there’s not much time left to reverse course on carbon emissions and the impact they will have on life on earth, both corporate and private investors are once again stepping up their commitments to startups in the space.

In 2018, global venture capital investment into startups focused on sustainability jumped 127 percent, to $9.2 billion, the highest since 2010, according to a January report from Bloomberg New Energy Finance. Powering that boost was a $1.1 billion investment in the smart window maker, View, and another $795 million for Chinese electric vehicle firm Youxia Motors. In fact, there were no fewer than eight VC/PE financings of Chinese EV specialist companies in 2018, totaling some $3.3 billion.

That stark assessment is coming from more corners of the scientific community, and the reality of the danger is being emphasized by politicians and concerned citizens around the globe.

The simple truth is that things are getting worse. And for the past two years, emissions have been increasing as countries continue to use oil and gas and coal to fuel economic growth, even as the global community realizes that carbon emissions are an increasing threat.

A recent assessment by the U.S. government put the cost of climate change caused by carbon emissions at $500 billion annually by the end of the century. And the financial toll doesn’t begin to assess the cost to the quality of human life and the potential lives that will be lost because of climate-related disasters.

This isn’t the first time the world has realized the threat climate change poses. It’s not even the second. Back in 1979 — and throughout the next decade —  the U.S. grappled with how to craft an appropriate response to the coming climate-related crisis. Perhaps unsurprisingly, the government failed, and the issue of imminent climate disaster was set aside.

Former Vice President Al Gore picked up the thread in the mid-2000s in the wake of his defeat to the Connecticut Yankee turned Texas oilman George W. Bush in the contested 2000 presidential election. Through advocacy work and the popular climate-focused documentary “An Inconvenient Truth,” Gore was able to proselytize among a group of technocrats looking for the next big thing in the wake of the internet explosion that had transformed professional and personal lives.

Venture capital investors flocked to invest in renewable technologies — from biofuels to new solar energy generating technologies to new battery chemistries and beyond.

Over the next seven years billion-dollar companies would rise and fall on the back of speculative investment in the promise of a cleaner energy future that would disrupt the oil industry and turn billionaires into multi-billionaires — all while saving the world.

It didn’t work out.

Problems with scaling technologies beyond a controlled laboratory setting; global economic pressures wrought by an explosion of manufacturing capacity in countries like China; and the hubris of investors who thought that their investment acumen in picking winners of the information age could work just as well in centuries-old industries like oil and gas, or electricity, found themselves floundering in complicated, regulated markets with deep-pocketed incumbents and entrenched interests in promoting the status quo.

In the process, investors lost hundreds of millions of dollars in the U.S. alone, and destabilized some of the oldest firms in the investment industry.

Now, companies and investors are returning to the market in a major way. Some of the largest businesses in the food and agriculture industry are investing in new companies that are developing protein replacements and novel cultivation technologies; utilities are investing more heavily in smart grid technologies as electrification and microgrids become more real; automakers and battery manufacturers are backing new energy storage technologies; and frontier investors are backing companies tackling everything from biologically based chemical manufacturing to new construction technologies for smart homes and cities, to new kinds of nuclear power that could transform how the world conceives of energy abundance (along with geo-engineering tech to remove carbon from the atmosphere).

“In the last few years, the number of technologies ripe for investment has expanded dramatically,” Ravi Manghani, research director for energy storage at Wood Mackenzie, an energy research and consultancy firm, told CNBC in March. “It’s no longer just three or four technology verticals.”

While none of these technological advancements are a guaranteed solution to the threats carbon emissions pose, or are surefire commercially viable businesses, the fact that investors are once again looking at sustainability as a viable investment thesis — capable of producing multiple billion-dollar businesses — is a good step forward.

Any plan to address decarbonization has to confront industries as diverse as agriculture, construction, transportation, chemicals and consumer goods from clothes to chemicals.

Failure to confront these challenges would be catastrophic. Even if global warming is restricted to just the 2 degree Celsius target set at the Paris climate agreement, that could mean the extinction of the world’s tropical reefs and several meters of sea-level rise, as The New York Times reported last August. Already the impacts of climate change have meant tens of billions of dollars in damage for the U.S. in 2018 alone.

“The era of incrementalism on climate change is over,” said Massachusetts Senator Ed Markey, one of the architects of the “Green New Deal” legislation, in an interview with Vox. “We are now in the era of the Green New Deal. It’s not going away. It is creating an incentive for governors to do more, for mayors to do more, for companies to do more. The polling says it has political legs that will drive it right into the election of 2020, and when that cycle is done, I think we’re going to see a much greater capacity for us to take the kind of action that we need.”

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Sila Nano’s battery tech is now worth over $1 billion with Daimler partnership and $170 million investment

Sila Nanotechnologies and its battery materials manufacturing technology are now worth more than $1 billion.

The company, which announced a $170 million funding led by Daimler and a partnership with the famed German automaker, started building out its first production lines for its battery materials last year. That first line is capable of producing the material to supply the equivalent of 50 megawatts of lithium-ion batteries, according to Sila Nano’s chief executive officer Gene Berdichevsky.

That construction, made on the heels of a $70 million investment round, is now going to be expanded with the new cash from Daimler and 8VC along with previous investors Bessemer Venture Partners, Chengwei Capital, Matrix Partners, Siemens Next47 and Sutter Hill Ventures.

Berdichevsky would not comment on how much production capacity would increase, but did say that the company’s battery materials would find their way into consumer devices before the end of 2020. That means the potential for longer-lasting batteries in smart watches, earbuds and health trackers, initially.

From its headquarters in Alameda, Calif., Sila Nanotechnologies has developed a silicon-based anode to replace graphite in lithium-ion batteries. The company claims that its materials can improve the energy density of batteries by 20 percent.

“If you can increase energy density by 20 percent… you can use 20 percent fewer cells and each pack can cost 20 percent less,” says Berdichevsky. “The subtext of it is that it is the way to drive price of energy storage down. And that’s the way for the electric vehicle market to sand more and more on its own.”

That kind of cost reduction is what brought BMW and Daimler to partner with the company — and what led to the massive funding round and the company’s newfound unicorn status.

Our valuation is over $1 billion dollars now,” Berdichevsky says. 

Sila Nanotechnologies

Image courtesy of Sila Nanotechnologies

For Daimler, the materials that Sila Nanotechnologies are developing will give the company’s commitment to electrification a much needed boost.

Mercedes-Benz has plans to electrify its entire product suite by 2022, the company has said. That means Daimler has to accelerate its production of electrified alternatives to its fuel-powered fleet — everything from its 48-volt electrical system (the EQ Boost), to its plug-in hybrids (EQ-Power) and the more than 10 fully electric vehicles powered by batteries or fuel cells. The company is projecting that between 15 percent and 25 percent of its total sales will be electric by 2025 — depending on customer preferences, infrastructure development and the regulatory environment in each of the markets in which it sells vehicles, the company said.

In all, Mercedes-Benz cars has committed to investing €10 billion ($11.3 billion) in the production of vehicles and another $1.3 billion into a global battery production network. The global battery production network of Mercedes-Benz Cars will in the future consist of nine factories on three continents.

“We are on our way to a carbon free future mobility. While our all-new EQC model enters the markets this year we are already preparing the way for the next generation of powerful battery electric vehicles,” said Sajjad Khan, executive vice president for Connected, Autonomous, Shared & Electric Mobility, Daimler AG in a statement.

Still, consumers shouldn’t expect to see vehicles with Sila Nano’s technology until at least the mid 2020s, as automakers look to prove that the company’s battery technology meets their quality assurance standards. “The qualification time means there’s many years of work to make sure it is reliable for next 10 to 20 years,” says Berdichevsky. “Our partnership is geared towards mid-2020s production targets, but the qualification is something that takes quite a while.”

The company’s latest round brings its total financing to just under $300 million since its launch in 2011. And as a result of the latest funding, former General Electric chief executive Jeff Immelt will take a seat on the company’s board of directors.

“Advancements in lithium-ion batteries have become increasingly limited, and we are fighting for incremental improvements,” said Immelt. “I’ve seen first-hand that this is a huge opportunity that is also incredibly hard to solve. The team at Sila Nano has not only created a breakthrough chemistry, but solved it in a way that is commercially viable at scale.”

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How to decarbonize America — and the world

Ramez Naam
Contributor

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The Green New Deal has burst onto the American stage, spurring more conversation about – and aspiration for – ambitious climate policy than at any point in at least a decade.

I’m glad to see it. Suddenly, climate is on the agenda, and ambitions for climate policy are higher than perhaps at any point in US history.

The Green New Deal is a resolution right now. It’s a statement of intent. It hasn’t yet progressed to the point of detailed policy proposals or legislation, which means now is the time to help craft its details.

For the last decade I’ve written about and publicly spoken about innovation in clean technology and ways to address climate change. I’ve helped to lead a climate-fighting citizen ballot initiative in my home state of Washington, invested in clean energy startups, and advised on climate and clean energy policies of other nations.

In that time, my views on what sort of climate policies have the most impact and have the greatest chances of winning over voters have changed. Policies that I thought were foolish a decade ago have revealed themselves to have been farsighted and effective. Policies I thought were powerful and elegant have, on closer inspection, revealed themselves to be far less effective than I believed. And the history of climate and energy legislation and attitudes in the US has demonstrated a path to getting new and more ambitious policies passed.

What I’ve learned over time is that good climate policy has 3 key traits:

  1. It has a large, meaningful impact on carbon emissions and climate change.
  2. It specifically tackles the problems that aren’t already being tackled by the market.
  3. It actually gets passed into law.

All of that is compatible with a Green New Deal. Here’s what it could look like.

  1. Impact: Climate Change Isn’t Local. Good Policy Isn’t, Either.

The conventional wisdom on climate policy is straightforward. Every nation uses its policies to reduce its own emissions. This conventional wisdom is wrong. Carbon dioxide doesn’t honor national boundaries. Climate change is global. And the best climate policies have a global impact as well.

The US, overwhelmingly, is the country most responsible for climate change. The carbon dioxide and other greenhouse gases we’ve emitted over the past decades are largely still in the atmosphere, still warming the planet. The world’s present and future emissions, though, are increasingly elsewhere. The US now accounts for just 15% of the world’s annual greenhouse gas emissions from fossil fuels.  And because the developing world is rising in energy consumption far faster than the US, American emissions will be an ever-smaller share each year.

That means that, despite the fact that the US is the largest overall contributor to climate change thus far, the US could completely eliminate its carbon emissions and barely affect the future course of climate.

This means we need a different strategy. It’s not enough to eliminate the US’s carbon emissions alone. Our goal has to be to drive down the whole world’s emissions.

The Most Effective Climate Policy in the World

How can the US drive down the emissions of other countries? We can do it by making clean technologies irresistible to the entire world. And there we can take a lesson from the most effective climate policy of all time – Germany’s early subsidies of solar and wind.

Solar panels and electricity-producing wind farms have been around for decades. Yet, for most of that time, they’ve been a far more expensive way to produce electricity than burning coal or natural gas. Germany changed that. Starting in 2010, Germany’s Energiewende legislation heavily subsidized solar and wind. That, in turn, drove utilities and home owners and corporations to purchase solar and wind. And that, in turn, made the technology cheaper. As prices fell, other nations – first European nations, then the US, and then China – jumped into the fray, enacting more ambitious policies that further brought down the price of solar and wind (and now batteries and electric cars).

Why did subsidies bring down the price of technology? Because industry scale leads to industry learning and innovation, and that, in turn, leads to lower cost ways to manufacture, deploy, and manage new technologies. We’ve seen this for a century. Almost all technologies improve via Wright’s Law, often referred to as the learning curve or the experience curve.  In the late 1930s, Theodore Paul Wright, an aeronautical engineer, observed that every doubling of production of US aircraft brought down prices by 13%.  Since then, a similar effect has been found in nearly every technology area, going back to the Ford Model T.

Electricity from solar power, meanwhile, drops in cost by 25-30% for every doubling in scale. Battery costs drop around 20-30% per doubling of scale. Wind power costs drop by 15-20% for every doubling.  Scale leads to learning, and learning leads to lower costs.

Germany began subsidizing solar and wind when they were extremely small scale industries, and their costs were quite high. Those subsidies drove German utilities, businesses, and home owners to purchase clean energy. That created a market. That, in turn, led solar and wind manufacturers to leap into the market, competing ruthlessly against one another to bring down their prices faster, offering the best product at the best price to customers.

By scaling the clean energy industries, Germany lowered the price of solar and wind for everyone, worldwide, forever.

The International Renewable Energy Agency finds that, between 2010 and 2019, the price of solar power, worldwide, has dropped by more than a factor of 5. The price of offshore wind power has dropped by a factor of three.

In just the past decade, solar power has gone from being uneconomical anywhere on earth without subsidies, to being cheaper than any fossil fuel electricity in the sunniest parts of the world. Building new solar is now cheaper than building new fossil fuel electricity plants in India, Chile, Mexico, Spain, and in sunny US states like Arizona, Nevada, Colorado, and  Texas.

And because, in general, businesses, utilities, and consumers all around the world will deploy the cheapest energy they can, solar is now the fastest growing energy source around the world.

Happy? Good. Thank policy makers in Germany, and the US, and China – all of whom took action to bootstrap markets for solar and wind before they were cost-competitive.

The lesson for US climate policy is clear: The biggest impact we can have is by driving down the cost of technologies that reduce carbon emissions, to the point that clean technologies are cheapest way to provide the energy, food, and transportation that everyone around the world desires, and then spreading those technologies to the world. That means a mix of early-stage government R&D, government incentives to scale deployment in the private sector, and a very healthy dollop of private sector competition.

1 – As solar volume has grown, prices have dropped, leading to more growth.

Would the Green New Deal drive down the cost of clean technologies in a way that scales to the rest of the world? The current resolution is vague on exactly how the rapid decarbonization in the US would happen. One reason for concern is that the now-retracted Green New Deal FAQ released by Representative Alexandria Ocasio-Cortez specifically dismissed the idea that the private sector – even with government incentives – could pull off this decarbonization, and explicitly says that “Merely incentivizing the private sector doesn’t work”.

I agree in one sense – basic government R&D is a high-value investment, especially when the technologies we need to invent don’t even exist yet. The government has a vital role to play. At the same time, the incredible, unprecedented decline in cost of solar power, wind power, batteries, and electric cars has happened both because of early government R&D, and because private sector companies, incentivized by governments, have brought these technologies to market and been forced to compete with one another to provide the best technology at the lowest price. Ignoring this is to ignore what brought us the very best progress we’ve seen in cleaning up the way we produce energy.

The FAQ I reference has been retracted. The Green New Deal hasn’t yet become a detailed roadmap or legislation. As it does, I urge you, Green New Deal legislators and architects: Craft policies that create incentives to build and deploy clean technologies. Then use the market for what it’s good at: fierce competition that delivers ever-better products at ever-lower prices.

  1. Tackling the Hardest, Least-Solved Problems

The Green New Deal resolution is really quite comprehensive. It touches on almost every source of US emissions.

Even so, there’s a tendency for climate and energy wonks – and legislators – to focus on electricity and cars when discussing climate policy.

Electricity and cars aren’t our hardest problems. They’re both big chunks of our carbon emissions, yes. And they both need more policy to drive them home. (More on that down below.) They’re also the areas where we’ve made the most progress, with incredible declines in the price of clean electricity and electric vehicles that put us at the edge of a tipping point. We aren’t over the hump yet, but the solutions are here – and if we continue to push them with policy, we can decarbonize electricity and cars.

Our hardest climate problems – the ones that are both large and lack obvious solutions – are agriculture (and deforestation – its major side effect) and industry. Together these are 45% of global carbon emissions. And solutions are scarce.

Agriculture and land use account for 24% of all human emissions. That’s nearly as much as electricity, and twice as much all the world’s passenger cars combined.

Industry – steel, cement, and manufacturing – account for 21% of human emissions – one and a half times as much as all the world’s cars, trucks, ships, trains, and planes combined.

Add industry, agriculture, and land use together and you have a very sticky, very difficult-to-improve 45% of carbon emissions.

By contrast, electricity and transportation are 39% of global emissions – nearly as big. The good news is that in electricity and transportation, we have momentum.

We do NOT have momentum in reducing the carbon emissions of industry and agriculture.

Decarbonizing Agriculture and Industry

The Green New Deal does, happily, mention these sectors. In agriculture, though, it avoids the biggest chunk of the problem: Livestock.

Livestock around the world – specifically cows, pigs, and other mammals – consume a tremendous amount of the world’s agriculture output. They drive the bulk of the deforestation around the world (which itself releases carbon into the atmosphere, and reduces forest land that could absorb carbon instead). And cows and pigs belch methane – a greenhouse gas that’s causes tremendously more warming than CO2 – about 100 times more in the first year, and 30 times more over the course of a century. Livestock in total produce about 15% of the world’s carbon emissions, as much as all transportation on land, air, and sea combined.

And the world’s appetite for meat is rapidly growing, with consumption expected to double in the next 40 or so years.

Cows should scare you more than coal.

In industry, meanwhile, steel and cement production both remain incredibly carbon intensive. We’ve learned to recycle steel using electricity, but making new steel from ore still involves the use of a tremendous amount of coal. (Theoretical ways to make steel without coal exist, but aren’t expected to be commercially viable for another 20 years.) We’re closer to technologies that could make cement without carbon emissions, but those technologies are still young, expensive, and haven’t been deployed to any significant degree. And the rest of industry – from manufacturing finished goods to making petrochemical products like plastics and lubricants – remains extremely carbon intensive.

These two sectors – agriculture and industry – are on path to be the two largest sources of carbon emissions in the world. And they’re the ones we have the fewest and least developed solutions for. The Green New Deal – or any serious climate policy – ought to focus first and foremost on R&D to develop methods for clean agriculture and clean construction and manufacturing; and then on incentives to deploy those clean methods, which will initially be extremely expensive, until they hit the scale to compete directly with dirty methods on cost alone.

What would a climate policy for agriculture and industry look like?  Let’s take a page from energy, where we have a one-two punch: 1) Agencies like the Department of Energy’s Advanced Research Projects Agency for Energy, ARPA-E, that funds early stage energy science and technology R&D; and 2) A breadth of state and national subsidies and incentives that help those technologies reach higher scale and lower costs.  

This one-two punch first invents technology (ARPA-E is modeled after the original ARPA, which created the foundations of the internet, originally called ARPANET), and then scales technology to the point that the new clean technology is cheaper than the alternatives.

We can use that one-two punch in agriculture and industry, by creating:

  1. An ARPA-A in the Department of Agriculture, tasked with finding a way to reduce the carbon emissions of agriculture broadly, and especially of livestock and meat. ARPA-A might fund research into:
    1. Radically increasing crop yields so farmers have less need to chop down forests to feed their animals.
    2. Technologies to eliminate the methane emissions of cows and pigs.
    3. Technologies to reduce the emissions of NOx (another incredibly powerful greenhouse gas) that’s produced by animal manure left on fields, and to a lesser extent by excess synthetic fertilizer.
    4. Real-time global deforestation monitoring technology, (perhaps in partnership with other agencies) to spot illegal deforestation as soon as it happens, and nip it in the bud.
    5. New alternatives to meat – from plants or stem cells – that might someday taste and feel as compelling as the real thing.
  2. Incentives to Deploy Clean Agriculture would be paired with the early-stage research of an ARPA-A.  Just-out-of-the-lab technologies to reduce agricultural greenhouse emissions are likely to start expensive. Early (and steep) subsidies could motivate farmers (or even consumers) to adopt those new technologies and products. Just like German subsidies, by scaling solar, bootstrapped an industry whose fierce competition then brought down prices, early subsidies for clean agriculture and clean foods would do the same.

    Such incentives could include:
    1. Incentives for farmers who capture carbon in their soils. (By far the cheapest way to remove carbon from the atmosphere.)
    2. Subsidizing feed additives or other products that reduce methane emissions or NOx emissions from animals and their manure.
    3. Tax breaks for farmers who invest in “precision agriculture” technologies that reduce the amount of fertilizer or fuel they use on the farm.
    4. Incentives for farmers to deploy clean energy on their farms, and to switch farm operations from diesel to electric.
  3. An ARPA-I for Industry, meanwhile, would be chartered with funding early stage R&D in carbon-free industry.  Research areas would include:
    1. Carbon-free steel – technologies that can make steel from iron ore without the use of coal.
    2. Carbon-free cement technologies.
    3. Alternative building materials that have lower carbon emissions.
    4. Carbon-free manufacturing technologies.  
    5. Better carbon-free or low-carbon plastics, lubricants, and other petrochemicals that don’t require oil extraction.

In several of these areas some options exist today, but a need for more innovation and more fundamental research – that the federal government is uniquely equipped to fund – still exists.

2-ARPA-I would fund research to decarbonize industry, starting with the largest industrial sources – steel, cement, and petrochemicals.

  1. Incentives to Deploy Carbon-Free Industrial Methods would give steel mills, manufacturers, and builders a reason to use these new, carbon-free methods while they’re still young and expensive.  These incentives would include:
    1. Tax breaks for new carbon-free industrial equipment, to reduce the cost for manufacturers to adopt these new technologies in their early stages.
    2. Tax breaks or subsidies for the buyers of carbon-free steel, cement, or other industrial goods, to bootstrap a market of customers for these new products and grow it to scale.  

As with solar and wind in Germany, scaling use of these methods in industry would bring their prices down, with a target of beating the price of existing, carbon-heavy methods.

All of the above is compatible with Green New Deal language. It’s just a matter of emphasis. We need to double down on these two areas – agriculture and industry – that are soon to be the largest sources of global carbon emissions, and the ones we have the least progress in solving.

  1. Good Policy Must be Passable

Perhaps the most important question about the Green New Deal is this – what can we actually pass?

The Green New Deal has already moved the Overton window, by elevating the conversation about climate. At the state level, in progressive states like California and New York, Democrats have solid majorities and could pass large parts of the Green New Deal that are applicable at a state level. As I argued just after Donald Trump’s election, the States are where we can most effectively push for climate action.

What about at the Federal level? Maybe the Green New Deal, by motivating the base, will lead to more electoral victories for Democrats in 2020.  Or maybe it will hurt in red states like Alabama, where Democrats are defending a Senate seat. It’s far too early to say.

Democrats don’t have any chance of reaching 60 Senate seats in 2020. They do have the option, if they win a majority and the Presidency, of eliminating the legislative filibuster (using the so-called “nuclear option”), in which case a simple majority of the House and Senate could pass as much of the Green New Deal as Democrats could achieve consensus on, without the need for any Republican legislators.

What if none of the above occurs? What if Democrats don’t get a Senate majority at all? Or do get a majority, but are unwilling to eliminate the legislative filibuster?  Could any parts of the Green New Deal pass with some Republican support?

Bipartisan Climate Policy is Possible. In Fact, It’s Here Now

Yes. Recent history shows that, while climate is a highly divisive issue in the US, clean energy and innovation have massive support on both sides of the aisle.

Consider the following:

  1. In 2015, a Republican Congress reached a bipartisan deal to extend the solar and wind tax credits (the ITC and PTC) out through 2022.
  2. In 2017, a Republican Congress, under Donald Trump, could have easily repealed or prematurely ended these tax credits. Yet the GOP left solar, wind, and electric vehicle tax credits untouched.
  3. In 2017, a Republican Congress gave clean energy research in the Department of Energy’s ARPA-E its largest budget increase since 2009.

Wait. Don’t Republicans hate clean energy?

Nope. Not at all. Americans on both sides of the aisle love solar and wind.  Solar is the most popular energy source in the US, with 76% of Americans saying that their utility should get more energy from solar. Wind is a close second, at 71%.  The third choice, natural gas, is 24 points behind solar, at 52%. And a meager 30% of Americans want more coal.

It helps that clean energy is literally everywhere in America. Solar and wind have been built out in every state. Wind power, especially, is booming in rural districts in red states. Representatives from these districts, and Republican Senators from red states like Iowa and Texas that have deployed a tremendous amount of solar and wind, have every reason to support policies that benefit clean energy.

What’s more, Americans – on both sides of the aisle – wildly support research into new technologies that can improve their lives. A whopping 85% of Americans support funding more research into renewable energy sources. Ready for the real shocker? Solid majorities in virtually every county and every congressional district in the US support more funding of research into clean energy.

Nearly as many Americans – 82% – support tax breaks for Americans who purchase energy-efficient vehicles or solar panels. And again, the support isn’t limited to blue states or blue districts. It’s overwhelmingly national.

So Americans don’t just love innovation and R&D spending. They also support incentives to deploy clean technology faster. And, in fact, those two policy levers – more research funding, and incentives to deploy clean technology – get both the most support in poll after poll, the most bipartisan support, and the most geographically consistent support.  If you want a policy proposal that that will work in red or purple states, or that can win over some Republican Senators and Representatives, clean technology research and clean technology deployment incentives are the two most likely to garner support.

What Bipartisan Policy Would Look Like

If Democrats do get both the White House a filibuster-proof congressional majority – one way or another – and get enough internal consensus, they can drive forward whatever GND policy they wish. Right now, that seems unlikely to me.

In the event that we have a Congress without that filibuster-proof majority, or with enough moderate democrats who balk at the entirety of the Green New Deal, there are still extremely effective climate policies that Congress can put in place.

First, in industry and agriculture, the four policies we mentioned already:

  1. ARPA-A to fund research into carbon-free agriculture & forestry.
  2. Clean Agriculture Incentives and subsidies to deploy carbon-free ag rapidly to farmers and drive down its price through scale.
  3. ARPA-I to fund research into carbon-free steel, cement, and manufacturing.
  4. Clean Industry Incentives and subsidies to deploy carbon-free industrial tech and drive it down in price.

Those policies in agriculture and industry have an excellent chance of getting bipartisan support. They follow a pattern of Americans being willing to invest in new science and technology R&D. And, because they benefit industrial and agricultural states and districts, by giving carrots for deploying clean industry and clean agriculture, they’re a benefit to politicians from those – often red – states that have the greatest concentration of farms and factories. That’s the exact opposite of a policy that penalized farmers or factories for their carbon emissions. You’d have a hard time getting much bipartisan support for that. Make the policy an incentive that helps farms and industry thrive, and helps them get an edge over their global competitors, and the politics completely change.

In electricity, transportation, and buildings, there are also policies – some of them counter-intuitive  – that would accelerate us towards a clean future :

  1. Continent-Wide Electricity Transmission.  It’s a common perception that renewable energy means less dependence on the grid. The opposite is true, for two reasons. First, at any given time, weather may hurt the output of solar panels or wind farms in any given area. The further away you are from that area, the less likely you are to be in the same weather pattern. Second, the sunniest parts of the US, the windiest parts of the US, and the parts of the US that need the most electricity don’t all coincide. Study after study shows that the larger an area we integrate renewables over, the more renewables we can put on the grid, and the lower the cost.

3- A nation-sized grid increases the amount of energy we can use from solar and wind, and reduces the overall cost. Source – Nature Climate Change

Long-range transmission is also remarkably efficient and low cost. High-voltage DC transmission lines can send power 2,000 miles with only 10% losses and a small additional cost. That means solar power plants in Texas could be powering New York City…an hour after the sun has gone down in New York. China understands this, and is building the world’s largest high voltage power grid, moving power from the sunniest and windiest areas in the west to the coastal population centers 3,000 km (1,860 miles) east.  In the US, meanwhile, it’s nearly impossible to build new long-range transmission – largely because of NIMBY. Congress should make it easier to get the necessary permissions to build transmission, paving the way for a grid with more and cheaper clean energy.

4- China’s Ultra High Voltage Grid moves clean energy 2,000 miles from the sunny and windy interior to the population centers on the eastern coast.  The US has nothing similar.

  1. Clear the Way for Offshore Wind. The most exciting development in wind power is building offshore. Winds blow faster and more consistently just a few miles off the coast of the US than they do almost anywhere on land. Not only does that mean offshore wind power is likely to be the cheapest wind power, it also means – because the winds are more steady – that it causes fewer intermittency problems for grid operators and is closer to being a “baseload”-like power source. Offshore wind sites are also closer to electricity demand in cities along the coast, making it easier to get power where its needed. And while solar power peaks in the sunny months of summer, wind power peaks in winter – making solar and wind great complements for each other. Offshore wind has plunged in price in Europe, reaching grid parity last summer, and is now growing faster there than wind power on land. It’s also still much smaller than on-land wind. That means that is has much farther to fall in price, and that deploying it now can bring the price down faster than with on-land wind. Unfortunately, the US is far behind in building offshore wind. A law from the 1920s and a raft of lawsuits have held offshore wind power up. Congress can and should take action to clear the way for offshore wind.
  2. Extend & Unify Solar, Wind, and Energy Storage Tax Incentives. Congress should make the 30% Investment Tax Credit for solar (the ITC) permanent. Failing that, it should extend it out to at least 2030. Wind, which has long mostly used a different tax credit called the PTC, should be moved to the same 30% tax credit and timing as solar. Energy storage – batteries and the technologies that come after them – should get the exact same tax credit, however and wherever that energy storage technology is deployed. While this tax credit may sound modest, solar and wind are now on the very edge of a tipping point.  

    Consider, for example, that late last year, a utility in Northern Indiana announced that the cheapest way for it to provide power to its customers was to go from being 65% coal powered today, to just 15% coal powered by 2023, and zero coal by 2028 – and to replace that coal with solar, wind, batteries, and flexible storage.  Let me repeat that: This utility wants to replace 50% of their power generation in just 4 years, and the rest in 5 more. And it wants to do so because solar and wind and batteries are cheaper than running their existing coal power plants. That’s a tipping point moment. And the solar and wind deployed in Indiana will lower the cost of future solar and wind deployed elsewhere. If this sort of tipping point can happen in Indiana, a deeply red state that Donald Trump won by 19 points, that isn’t all that sunny, and that has good but not amazing wind, then that tipping point can happen anywhere. Our job is to keep the pressure up.
  3. A National Renewable Portfolio Standard. 29 US states – including red states like Texas, Missouri, Iowa, and Ohio – have Renewable Portfolio Standards that mandate that a certain percentage of their electricity must come from carbon-free or renewable sources. That means 21 states don’t have such mandates. If electricity were a perfectly competitive market, solar and wind and batteries would win on price and displace coal and gas in all these states. But utilities have a number of ways to resist change, even when it makes economic sense.

5-29 US States have Renewable Portfolio Standards

The solution is for Congress to mandate a Renewable Portfolio Standard nationally, dragging the laggard states up to the standard of the rest. How high should that mandate be? The Green New Deal goal of 100% carbon free electricity by 2030 is incredibly ambitious. And it pushes us into the unknown. Beyond 70 or 80 or 90% of electricity from renewables, integration becomes increasingly difficult as periods of bad weather nation-wide cause serious problems. The technical challenges there can be overcome – perhaps through nuclear, or next-generation carbon-capturing natural-gas plants, or long-term energy storage technologies (which are being funded by ARPA-E).

Those challenges are still real enough that even a clean energy optimist like me gets nervous. A goal of 50% of electricity from carbon free sources in every state by 2030, then 80% by 2040, and 100% by 2050 would be in-line with what scientific models say we need to achieve in order to stay below 1.5 degrees Celsius of warming. And by scaling both clean energy and the technology to integrate it to high percentages of the total grid, it would drive those technologies down in price for the rest of the world, and pave the way for cleaner grids everywhere.

  1. Permanent, Uncapped, On-the-Spot Electric Vehicle Tax Credit. On transportation, we may have reached another tipping point. 2018 may have been the peak year for gasoline and diesel car sales, ever.  Electric Vehicles, while still small in number, are growing at an astounding rate, and account for all growth in the auto industry. In some areas, electric vehicles are now cheaper to own than gasoline cars on a per-mile basis. And that will become true in more and more areas as the price of batteries declines. Even so, we need to move faster. On average, a US car gets replaced when it’s around 10 years old. That means that, even if electric vehicles were 100% of new sales today, it would take around 20 years for them to replace all gasoline cars. That needs to happen faster. Congress can help.

First, for individually owned vehicles, Congress should improve the federal electric vehicle tax credit. Today’s $7,500 federal tax credit is capped at 200,000 electric vehicles per manufacturer. That’s an absurdly low number in a country that has 260 million cars on the road. General Motors CEO Mary Barra recently called for the cap to be removed. Congress ought to put electric vehicles on the same footing as solar, wind, and batteries: A 30% tax credit – like the solar ITC – with no limit on the number of vehicles its applied to would be simple, clear, and consistent. For individuals buying their own vehicles, that tax credit ought to be structured so it can be taken off the purchase price of the vehicle directly, rather than waiting for tax season.

Second, the same tax credit ought to apply to fleet operators who buy or build electric vehicles to offer rides to consumers. While the pace at which consumers buy new cars is slow, the pace at which they switch miles of transport can be far faster, as they switch some of their travel to fleets like Uber, Lyft, and whatever comes after. Those fleets, today, are mostly gasoline engine vehicles of hybrids. As electric vehicles increasingly become the cheapest per mile, those app-based transport fleets will go electric. And a typical taxi drives 70,000 miles a year, or roughly 4 times the 13,500 miles per year of a typical individually-owned car. That means each electric vehicle deployed as a taxi can have the impact of four individually owned vehicles.

Finally, Congress ought to accelerate the deployment of autonomous cars on the nation’s roads. Why? Because an autonomous vehicle, by taking out the cost of the driver, can cut the cost per mile by half. Some calculations show that an autonomous electric taxi, by 2025, could cost 35 cents per mile. That’s 1/10th of what a taxi costs, 1/5th of what a Lyft or UberX costs today, and half the cost of owning and operating your own car. That lower cost would cause even more rapid switching to electric transport fleets, as currently-owned gasoline vehicles increasingly sat unused, or saved for long-distance trips or other scenarios. Some studies find that, even at twice that price, as much as 40% of miles driven would switch to these electric fleets.

6 – Autonomous Electric Taxis could be half the cost per mile of owning and operating a gasoline car – if autonomous vehicles arrive.

Getting to those costs absolutely depends on autonomy. Today, however, autonomous driving is regulated by a hodge-podge of different laws at the State level. Congress should step in and act to standardize safety testing, unify laws between states, and accelerate the deployment of safe, cheap, efficient, electric autonomous taxi services.  Congress almost did so in 2018. It’s time to try again.

These three actions would both accelerate the deployment of electric vehicles in the US, and drive innovation in a sector where US companies are currently in the lead, and where they could be global leaders in trillion-dollar industries for decades to come.

  1. Incentives for EV Chargers – Everywhere. Deploying more electric vehicles also means a demand for more charging infrastructure.  Congress ought to create incentives to deploy electric chargers in the places they make the most sense, and to lower the cost of charging stations by scaling them.

    For individually-owned vehicles, incentives already exist to install a charger at home.  But drivers who park on the street or who live in apartment buildings without charging don’t have an easy way to use a home charger. Congress ought to create federal incentives to deploy charging stations in multi-unit buildings, in malls, at grocery stores, and so on. Congress should especially create incentives for employers to deploy charging stations for their employees at work.  Charging stations make the most sense in the locations that cars spend the most time in. And after home, the clear #2 for most vehicles is at work. In addition, vehicles driven to work are most likely to be idle during the day – when solar power is producing. Charing electric vehicles during the day both allows the US to put more total solar power to use (effectively storing it in these vehicles) and solves the problem of a lack of charging location for those who don’t have convenient charging at home.

    Similarly, if transportation is going to move more and more to electric (possibly autonomous) taxi fleets, those vehicles will need charging too. Congress ought to create incentives for that charging infrastructure to accelerate its deployment.

    More generally a report from the Smart Electric Power Alliance finds that  as electric vehicles and electric vehicle charging infrastructure spread, there’s an opportunity to use software to manage when vehicles charge, to line that charging up with both solar and with the hours of peak wind power output, allowing more renewables to be integrated onto the grid.  

7 – Electric vehicles with smart chargers could charge when solar and wind are most abundant on the grid, increasing the amount of renewable energy we can use.

  1. Tax Credits for Carbon-Free Heating and Building Efficiency. Beyond electricity and transportation, heating buildings accounts for 6% of all carbon emissions around the world, and is growing rapidly. To decarbonize the world’s economy, we need to shift from heating with natural gas (or, in the poorest parts of the world, with coal or wood) to heating with carbon-free energy. While extending tax credits for solar and wind, Congress should keep those credits consistent for passive solar heating and geothermal heating systems, and extend those tax credits to also to include switching to an electric heat pumps, and any energy efficiency improvements made to a building.

Wait, but what about?

So I didn’t list your favorite technology, policy, or issue?  Here:

  1. Nuclear.  In 2018, the US got roughly 20% of its electricity from nuclear power, or roughly twice as much as it does from solar and wind combined. That’s carbon-free electricity from already running reactors. Shutting down those reactors prematurely would be a mistake. Germany’s shutdown of their nuclear reactors led to Germany missing their goals for carbon reduction. Existing reactors – so long as they’re safe – should be kept running as long as possible, while solar and wind scale up. And indeed, there’s still quite a bit of debate about whether solar, wind, hydro, and batteries together can power 100% of the US. Some very smart scientists who care deeply about climate are skeptical that renewables can get us all the way there. I’m on the more optimistic side of this equation. Even so, let’s not tie one hand behind our back.

    New nuclear, on the other hand, is probably dead in the US and Europe. Costs are rising over time, and reactors are plagued by cost overruns and schedule delays. The US ought to continue funding research into next-generation reactors that could be built smaller, more repeatably, and hopefully one day at a lower cost. Even those reactor designs are most likely to be a fallback in case solar, wind, and batteries stop falling in price the way they have.
  2. Carbon Taxes.  I spent much of 2015 advocating for a revenue-neutral carbon tax in Washington State. I love carbon taxes. And in electricity, they can be quite powerful. As I explain elsewhere, though, outside of the electricity sector, carbon taxes are far less effective than believed. They have only a little impact on industry, almost no impact on transportation, and usually aren’t applied to agriculture. If a carbon tax magically passed Congress, I’d cheer, and it could be an effective way to fund some of the proposals here. It’s not a silver bullet, though, and it doesn’t address the hardest sectors.
  3. Carbon Capture. People mean a wide variety of things when they say “carbon capture”.  If we mean retrofitting coal power plants with equipment to capture their carbon emissions and store it, that’s probably a waste of time. Coal is economically dead, even before adding on the cost of carbon capture. On the other hand, the NetPower design for an advanced natural gas plant that has carbon capture built right in could be a great complement to solar and wind, filling in for them during wind droughts in winter. (Though keeping any sort of natural gas in use also requires that we address the serious  problem of methane leaks from natural gas wells and infrastructure.)  

    The most important type of carbon capture, though, is being able to capture carbon directly from the air. I support more R&D into high-tech ways to scrub carbon from the air. I’m also cheered to see the tax credit Congress created to encourage carbon capture. That said, overwhelmingly the most affordable ways to capture carbon, today, are the ones the Green New Deal talks about:  returning carbon to the natural environment, by enriching soils and planting trees. Enriching farm soils and planting trees cost ten times less than fancier methods of carbon capture, and could capture a billion tons of carbon a year in the US alone. What’s more, the US could make those methods even cheaper by spurring new technology – like tree-planting drones, or transparent digital markets for carbon capture – in a way that increases the adoption of carbon capture into natural ecosystems around the world.  Ultimately, we may need to draw even more carbon out of the air than soils and trees can handle.  We should do the R&D for higher tech methods that can do so, and encourage their deployment, even as we use the cheapest methods of soils and forests first.

8 – The cheapest ways to capture carbon are on the bottom of this chart – in soils and forests.

What About Climate Justice?

The Green New Deal advances a plan to fight climate change and to ensure that we do so through a just transition. Here, I think a few principles clearly apply.

  1. First, the cost of the transition shouldn’t be paid by those with the lowest income or who’ve contributed the least to the problem. In the long term, transitioning to a clean economy will make energy, transportation, and the rest of the goods we consume cheaper. If, in the short run, (when we’re using subsidies to scale out new technologies to drive their costs down) there’s any temporary increase in the cost of life’s necessities, that shouldn’t be passed on to low-income Americans. If costs for basic necessities go up, that needs to be offset by policies that buffer lower-income Americans against those changes.
  2. Second, if we need new taxes to pay for these programs, those taxes should be highly progressive. If those taxes are on income, they should come in at the higher tax brackets. This also has to inform our view of a carbon tax. Carbon taxes are, on their own, highly regressive. Lower-income Americans spend a larger fraction of their paycheck on electricity, heating, transportation, and other carbon-intensive goods than wealthier Americans do. Rural Americans, who also tend to be lower income and who have the highest rates of poverty in America, spend even more of their paycheck on transportation. So raising the price of energy, transportation, and other goods hits low-income Americans and rural Americans the hardest. If we use a carbon tax, we can offset it by sending a flat dividend check to every woman, man, and child in America. In Washington State, in our 2016 ballot initiative, we used another approach, using carbon tax revenue to boost the federal Earned Income Tax Credit – a tax credit that goes to low-income working families, and which is the closest thing to a basic income we have now.
  3. Third, we need to help Americans in the most vulnerable communities with climate resistance and climate adaptation. Whether those are communities that are vulnerable to climate-related flooding, crop losses from extreme weather, heat and drought, or to wildfires that will get worse as temperatures rise, society ought to invest in boosting the resilience of these communities, and, if necessary, in helping individuals and communities relocate to areas that are less vulnerable to climate.
  4. Fourth, massive investment in new clean energy, industry, transportation, and agriculture will pour trillions into the US economy. What’s more, it has the potential to turn the US into an exporter of new clean technology. Together, they’ll create the opportunity for potentially millions of new jobs. That opportunity ought to be open to all – to workers in dirty industries like coal who have their jobs displaced, to lower income Americans who have fewer opportunities today, and to immigrants willing to come to America and work. Job training programs, and programs to bridge the gap between the end of an old career and the start of a new one – are a win/win for America. They help us produce the labor pool to transition to this clean economy, and they provide a means for millions of Americans to uplift themselves with new, highly in-demand skills.

All of that is fully in alignment with the Green New Deal resolution.  The GND goes further, though, making the case for universal healthcare, universal higher education, universal housing, a job guarantee for all people in the United States, strengthening unions, reducing discrimination in the workplace, respect for Native American rights and sovereignty, and stopping the transfer of jobs overseas.

Many of those policies are ones I support, or at least where I support the motivations behind them. Yet I am not at all certain those policies should be coupled with climate action. Coupling a long list of liberal priorities with climate action would seem to make it harder to get the bipartisan support we’ll probably need to enact these climate policies.  That said, the Green New Deal resolution is a high level map, not a specific bill. The original New Deal wasn’t one piece of legislation – it was made up of more than 30 separate bills. Democrats should approach the Green New Deal the same way. They ought to embrace the idea that the overall effort may take multiple years and multiple Congresses to enact, and that it’s perfectly acceptable to support some parts of the Green New Deal and not others. They ought to embrace alliances and assistance – including bipartisan alliances – to pass parts of the Green New Deal where they can.

(Photo by Ira L. Black/Corbis via Getty Images)

Climate Action is the Ultimate Climate Justice
Even more importantly, though, acting on climate change itself creates a more just world. Climate change is a slow, insidious, and massive threat to human well-being. It’s also profoundly unjust. Americans may only emit 15% of carbon emissions today, but all the CO2 we’ve emitted in the past will linger in the atmosphere for roughly a century from when it was released. Add up all the carbon the US has emitted over time, and the US remains the largest cumulative emitter of greenhouse gases on the planet. We Americans are more responsible for climate change than any other nation, even those with many times our population.

Meanwhile, two billion people live in countries that have emitted the least carbon dioxide over history – the poorest countries on planet earth – which are also the countries where people are likely to suffer the most from climate change. Climate change itself is a deep inequity. The most just thing we can do is to address climate change as rapidly as possible, and to produce and spread the tools that also boost climate resilience around the developing world. Indeed, most of the benefits of fighting climate change don’t go to Americans at all. Americans do benefit. But the largest benefits of fighting climate change go to the billions around the world who have the fewest resources and who live in the nations with the greatest vulnerability.
Lower income Americans also stand to suffer more from climate change than do wealthier Americans. A lower-income American in Detroit isn’t as vulnerable as a subsistence farmer in Botswana – not by a long shot. At the same time, it’s hard to deny that Katrina, for example, hit the poor of New Orleans harder than it did the rich. Wealthier Americans can relocate more easily, can pay energy bills more easily, can rebuild from climate disasters more easily. And here again, the most just thing we can do is to act on climate, as rapidly as possible.

Should we find ways to use the fight against climate change to also address the long history of inequality and injustice, and the differences in wealth and income that exist in the US? If so, should we stop there? Climate change is global. Carbon emissions and the harm they cause know no national borders. The harm of American (and European, and more recently Chinese) carbon emissions will fall most heavily on the poor of the developing world. Should climate policy aim to decarbonize the world as rapidly as possible? Or should it aim to decarbonize and address other global ills?

For me, the answer is clear. Climate change itself is so unjust, so lopsided in who has benefited from burning fossil fuels and who will suffer the most from that combustion, that addressing climate change is, itself, to help undo an injustice – one that threatens billions of people around the world.

Let’s tackle all the world’s other problems too. As we do so, let’s keep in mind that addressing climate change, even if we don’t succeed at everything else, is a major, vital, and necessary step towards a more just world.  

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VW’s Electrify America will use Tesla battery packs to lower charging costs

Electrify America, the entity set up by Volkswagen as part of its settlement with U.S. regulators over its diesel emissions cheating scandal, plans to install Tesla Powerpack battery systems at more than 100 of its electric vehicle charging stations this year.

Electrify America aims to use the Tesla Powerpacks to offset the cost of charging for customers. Owners of electric vehicles face high costs if they charge their vehicles during peak demand hours. The Tesla Powerpack battery systems store energy drawn from the grid during off-peak hours. That stored energy can then be used during peak demand hours when charging costs are higher. Each site will consist of a 210 kW battery system with roughly 350 kWh of capacity, according to Electrify America.

“Our stations are offering some of the most technologically advanced charging that is available,” Electrify America CEO Giovanni Palazzo said in a statement. “With our chargers offering high power levels, it makes sense for us to use batteries at our most high demand stations for peak shaving to operate more efficiently. Tesla’s Powerpack system is a natural fit given their global expertise in both battery storage development and EV charging.”

Electrify America has committed to investing $2 billion over 10 years in clean energy infrastructure and education. The VW unit expects to have 484 electric vehicle charging stations with more than 2,000 charging dispensers installed or under construction by July 1.

The company will begin the next phase of installations this summer.

Electrify America’s bet on Tesla battery systems illustrates the deep need for electric vehicle charging infrastructure that is low cost, easy to access and as fast as possible. It’s not enough to simply dot highways and urban areas with public chargers.

The deal also represents a small, yet possibly fruitful area for Tesla as it tries to grow its energy storage business.

Electrify America says it has designed its sites and electrical systems to enable future upgrades. Fast charging is part of that vision. The Electrify America charging system features liquid cooled-cable 350 kW chargers.  These chargers — which currently no EV can actually use — can theoretically charge a vehicle at speeds up to 20 miles per minute – seven times faster than today’s most commonly used 50 kW fast chargers.

Porsche Taycan, the automaker’s first all-electric vehicle, is designed to have an 800-volt battery that can take a 350 kW charge. The Taycan is coming out late this year.

Electrify America’s charging locations will have an average of five charging dispensers, with some having as many as 10. The highway stations will have a minimum of two 350 kW chargers per site, with additional chargers delivering up to 150 kW.

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Oil and gas giants Chevron and Occidental are backing tech to combat carbon emissions

Carbon Engineering, a Canadian company developing technology to remove carbon dioxide from the atmosphere and process it for use in enhanced oil recovery or in the creation of new synthetic fuels, has locked in financing from two big industry backers — Chevron and Occidental Petroleum — to bring its products to market.

The undisclosed amount of capital Carbon Engineering raised from the investment arms of two of the world’s largest oil and gas companies — Oxy Low Carbon Ventures and Chevron Technology Ventures — will be used to commercialize its technology at a time when legislation in California and British Columbia are making low-carbon fuels more economically viable, according to a statement from the company’s chief executive, Steve Oldham. The company had already managed to nab Microsoft co-founder Bill Gates as an investor.

Gates is one of several big-name backers to be drawn to renewable energy technologies in the face of a steadily warming planet that’s rapidly approaching a tipping point of no return when it comes to global climate change. Together with a group of other multi-billionaires, including Marc Benioff, Jeff Bezos, Michael Bloomberg, Richard Branson, Jack Ma, Masayoshi Son and Meg Whitman, Gates launched a $1 billion fund called Breakthrough Energy Ventures last year to back companies that are developing things like new energy storage and water production technologies.

The Squamish, B.C.-based Carbon Engineering isn’t in the Breakthrough portfolio, but is one of several companies working on making economically viable a technology called “direct air capture” of carbon dioxide.

At the company’s pilot plant in Squamish, air gets hoovered up by giant fans into a processing facility where it is treated with potassium hydroxide, which captures and holds the carbon dioxide. Then more chemicals and heat are added to the mix to create millions of small white pellets — which contain higher concentrations of the carbon dioxide.

After that, the pellets are heated again to create a gas that is almost pure carbon dioxide. That gas can be either sequestered underground (a proposition with no economic benefit for Carbon Engineering at the moment) or converted back into fuels or chemicals, or used in enhanced oil recovery.

Carbon Engineering and competitors like ClimeWorks or Global Thermostat claim they can remove carbon dioxide from the atmosphere for roughly $100 per ton, or a bit less once they can get to scale. To make money though, they’ll need to refine that carbon dioxide into some sort of product — likely a fuel, which will return that carbon to the atmosphere.

Other companies tackling carbon capture, like Newlight Technologies and Opus12, convert the carbon into plastics or chemicals, while companies like CarbonCure aim to turn the captured carbon into a cement replacement.

While these products from carbon emissions are available, they’re not yet commercially viable at a significant scale. Oldham told National Public Radio that the fuel Carbon Engineering manufactures is roughly 20 percent more expensive than regular gasoline.

That’s why states like California are putting incentives in place to offset the added costs of using these low-carbon products.

Carbon Engineering has already spent $30 million to develop its process, while Climeworks raised $31 million last year to develop its own version of this carbon capture technology.

Not all climate watchers are convinced that these kinds of negative emission technologies are the answer. They argue that it’s less expensive to use renewable energy and other carbon-free energy sources than to take carbon dioxide out of the air.

At this point, though, emission reductions may not be enough. Given the dire reports coming out of the Trump administration and the Intergovernmental Panel on Climate Change, it’s going to take pretty much a combination of everything that humanity’s got to avoid a pretty catastrophic fate for a pretty large portion of the world’s population.

Even the companies that have been notorious for their contributions to the climate crisis that the world faces are waking up to the need for decarbonization (even if it’s an open question of whether they’re being dragged to the table or sitting down of their own free will).

Oxy Low Carbon Ventures is a good example. Reading the writing on the wall, the firm has invested not just in Carbon Engineering, but another company called NET Power, which purports to have developed a power plant with zero emissions.

“It is a very important time for the air capture field right now,” said Oldham in a statement. “We’re seeing leading jurisdictions, like California and British Columbia, creating markets for low carbon fuels and technologies like DAC, through effective climate policy. These efficient market-based regulations, and action from energy industry leaders like Occidental and Chevron, show the power of policy in driving innovation and achieving emissions reductions while delivering reliable and affordable energy.”

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The cost of energy storage has stalled adoption of renewable power. Energy Vault has a solution.

Because solar and wind power are now cheaper to produce than energy from fossil fuels, the only obstacle that remains to the mass adoption of renewable power is the amount of money utilities need to spend to store the energy those systems produce.

Right now, storing 100 megawatts of renewable energy (enough to power roughly 600,000 homes) means spending roughly $65.6 million on massive batteries like the kind made by Tesla, or relying on huge pumped hydro-electric storage projects that essentially create man-made dams where the release of water spins turbines to generate energy (those projects are typically far larger than 100 megawatts).

A new company called Energy Vault, launched from Bill Gross’ Idealab incubator in Pasadena, Calif., has developed a technology, based on the principles of pumped hydro storage, that it claims can slash the cost of energy storage to a fraction of the current price and make renewable energy cost-effective all day, every day. 

As climate change worries mount, finding a solution that can make renewables even more compelling and cost-effective isn’t just a good business — it’s a global priority.

Energy Vault’s technology consists of a 33-story-high, six-armed crane with booms extending to nearly the length of a football field (about 87 yards). That crane is surrounded by 5,000 huge concrete blocks weighing roughly 35 metric tons altogether (or around 172,000 pounds).

“These would typically be built out near wind farms or solar plants,” said Robert Piconi, the chief executive of Energy Vault. “This is not something that you’d drop in the middle of the city.”

The cranes are controlled by a software system that manages the movement of the cement blocks to either store the energy generated by solar or wind farms, or discharge that energy onto the power grid.

According to Piconi, each of the company’s systems will have 35 megawatt hours of nominal energy capacity and 4 megawatts of peak power capacity. Ramp times occur in as little as a millisecond with 100 percent power achieved in 2.9 seconds.

The systems have roundtrip efficiencies of roughly 90 percent and there’s no energy loss, as the technology relies on mechanical energy from incredibly durable materials that have a roughly 30-year lifetime.

And all of this at a price tag of around $7 million to $8 million per system, according to Piconi. What makes the system even more sustainable, according to Piconi, is the use of recycled concrete that was only going to be landfilled — instead of new cement construction.

Energy Vault has already set up a demonstration system in Biasca, Switzerland, next to the company’s Lugarno headquarters. That demonstration plant likely had a role in the company’s ability to sign up a clutch of initial customers, including The Tata Power Company Limited, India’s largest integrated power company, to deploy an initial 35 MWh Energy Vault system by 2019. 

“Innovation in energy storage represents the largest and most near-term opportunity to accelerate renewable deployments and bring us closer to replacing fossil fuels as the primary source to meet the world’s continual growth in energy demand,” said Bill Gross, co-founder, Energy Vault and founder of Idealab. “We’re excited to support Energy Vault in bringing this groundbreaking technology to the market.”

Indeed, over the next two years, Energy Vault expects customers to build between 500 megawatts and one gigawatt of storage capacity using its systems, according to Piconi.

“We have customers on every continent to build these units,” he said. 

Piconi, a former Danaher executive, met Gross 12 years ago as the Idealab founder was beginning his push into renewable energy technologies. The two men stayed in touch and began seriously contemplating the creation of Energy Vault after nearly a decade of collaboration and contact.

It was back in 2017 that Piconi, Gross and fellow co-founder and chief technical officer Andrea Pedretti hit upon the idea for Energy Vault’s novel approach to energy storage.

“It became clear to him a few years ago how important storage was going to be,” said Piconi. 

The three men started looking at the efficiencies available through pumped hydroelectric storage, and began brainstorming ways to mimic that process using mechanical energy. “We looked at a steel tower first, but that was too expensive. We thought about water in a tower pumped up, but there were efficiency issues there,” Piconi said. “Then we got to the concrete bricks and the crane.”

The concrete was important for the cost of materials, and because of the energy intensity and pollution that’s involved with manufacturing cement, the team decided to use recycled cement to make the blocks that its energy storage system would use.

Enter, Cemex, one of the largest cement manufacturers in the world, which has joined with Energy Vault as a partner.

Energy Vault has already raised capital through several “seed” rounds to develop its technology and get the prototype in Switzerland up and running.

“Energy Vault’s team has developed a disruptive platform, and we are enthusiastic to work with their team to deploy an environmentally efficient and cost-effective energy storage solution that is highly viable,” said Dr. Davide Zampini, head of Cemex Global R&D and IP. “We share a common commitment to enable a future where resources are used responsibly, which is paramount to Cemex’s strategy for sustainable development.”

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As electric vehicles make a move to the mainstream, utilities are taking notice

 In a move highlighting the growing importance of electric charging stations to utilities, Italian power giant Enel has bought a small, fast-growing California developer of charging stations and power management software. Through its EnerNOC subsidiary, Enel acquired Electric Motor Werks in a transaction that could be a harbinger of things to come. Read More

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Tesla co-founder and CTO JB Straubel explains its new solar storage facility

 Tesla’s new solar energy storage facility on the Hawaiian island of Kauai does what most solar power plants cannot: it stores energy from the sun during peak times for use when the grid (and its customers) needs it most. The facility is unique, with 52 MWh of storage capacity and 13 MWh of generation via its field of panels. We spoke to Tesla CTO and co-founder JB Straubel, who oversees… Read More

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DOE small biz voucher awards include vehicles and fuel cells

DOE is plugging into alternative fuels The US Department of Energy has awarded $8 million in Small Business Vouchers to 43 businesses, including ten projects aimed at making hydrogen fuel cells cheaper and more efficient, and six projects that will improve vehicle fuel efficiency, including better batteries.
In addition to funding from the DOE, participants in this second round of the SBV project will be working with 12 of the… Read More

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Mercedes home batteries are a potential rival for Tesla’s Powerwall

Mercedes energy storage unit The batteries developed for the high demands of all-electric Mercedes-Benz cars are finding a new application as in-home energy storage units. Sound familiar? Yeah, it’s a lot like the Tesla Powerwall. Mercedes-Benz parent company Daimler AG announced that the storage units are being manufactured by its subsidiary Deutsche ACCUMOTIVE (Daimler has a real love of all caps). The batteries… Read More

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