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Today’s newsletter:
🌳 Today’s Top Story: Canada and Germany have committed $600 million to advance Atlantic Canada’s hydrogen export industry, marking a crucial step in the global shift to clean energy.
🌳 Today’s Data Point: BNEF predicts we will need to use 390 million tonnes of hydrogen per year worldwide in 2050 to eliminate carbon emissions in the global economy, more than four times the amount used today.
🌳 Climate Insider Listicle: Get to know 20 women leading climate tech and innovation in 2024.
Canada and Germany Commit up to $600 Million Towards Hydrogen Deal: Supporting Hydrogen Export in Atlantic Canada
Investment and Economic Impact
In a historic move to boost energy security and combat climate change, Canada and Germany have pledged $600 million to develop Atlantic Canada’s hydrogen export industry. This marks a significant step in the global transition to clean energy.
This funding aims to create jobs, reduce greenhouse gas emissions, and bolster Germany’s energy security.
Strategic and Geopolitical Context
The announcement comes amid global energy disruptions caused by the war in Ukraine. Russia has limited natural gas supplies to Europe in retaliation for sanctions. This initiative is part of the Canada-Germany Hydrogen Alliance, which aims to address Germany’s energy needs and promote clean energy solutions.
Technological and Environmental Considerations
Several projects in Nova Scotia and Newfoundland aim to convert wind energy into clean hydrogen, potentially positioning Canada as a leader in the clean hydrogen economy. However, environmental groups caution that hydrogen production is energy-intensive. They argue that the wind power used for these projects might be better allocated to local needs, such as replacing coal-based energy sources. Read More
Quote of the Day
With regards to the Hydrogen Deal announcement, Karina Häuslmeier, the Deputy Head of Mission at the German Embassy in Ottawa said:
“Since the summer of 2022, we have seen many signs that Canada is serious about advancing the clean hydrogen economy. Today, I want to assure you that Germany is equally committed.”
Karina Häuslmeier’s statement highlights the ongoing and deepening commitment between Canada and Germany, illustrating that this partnership is a long-term strategic endeavour. This collaboration signifies a unified effort to address both countries’ energy security and climate goals amidst global energy disruptions.
Market Movers
Image credit: Balderton Capital
This section highlights key investments and initiatives driving progress in sustainability and climate innovation.
- The European Investment Bank provides a €500m counter-guarantee to Deutsche Bank, leveraging over €1bn for wind energy manufacturers. This funding is significant because it unlocks substantial financial support, crucial for scaling up wind energy capacity to meet the EU’s ambitious 2030 renewable energy goals. Read More
- Bill Gates-backed Breakthrough Energy has raised $839 million for its third flagship fund, making it the largest climate fund of the year, according to a regulatory filing. Read More
- Revolut and Darktrace backer Balderton Capital has secured $1.3bn (£1bn) across two new investment funds. This funding is significant as it enhances their capacity to support European tech companies from early stages to IPOs. It will fuel the growth of innovative businesses with the potential to become global leaders. Read More
- London-based Gaussion, a spin-out from University College London (UCL), has raised $12 million in Series A funding after securing £2.85 million in seed funding last year. The funding is significant because it enables the company to bring its rapid battery charging technology to market, potentially overcoming key barriers in the mass adoption of electric vehicles. Read More
- South Korea’s Hyundai Motor Company will invest 1 billion baht ($28 million) to build an electric vehicle and battery assembly facility in Thailand. This move is significant as it bolsters Hyundai’s presence in Southeast Asia’s booming EV market and challenges Chinese automakers’ regional dominance. Read More
Tech Spotlight
Imagine a cost-effective way to produce hydrogen energy using sunlight!
Image credit: Paderborn University
Researchers at Paderborn University are developing a method to produce hydrogen using solar energy and carbon-based semiconductors, aiming to create an efficient, environmentally friendly alternative to fossil fuel-based hydrogen production.
Commercial Viability
- Cost of Production: The project focuses on using solar energy for hydrogen production, which could reduce reliance on fossil fuels. If successful, the cost of producing hydrogen might decrease, potentially making it more competitive with conventional fossil fuels and other forms of clean energy.
- Market Demand: The market for clean energy solutions, including hydrogen fuel, is growing due to increased demand for sustainable and eco-friendly energy sources. This project’s success could tap into this trend, opening up new business opportunities in the clean energy sector.
Technical Viability
- Efficiency of Catalysts: This research aims to enhance water-splitting efficiency using a direct Z-scheme method with carbon-based semiconductors. The approach’s success hinges on achieving high light absorption and effective charge carrier separation—key factors for efficient photocatalysis.
- Material Challenges: Current single-material semiconductors struggle with high performance in photocatalytic reactions. The use of carbon-based semiconductors may offer advantages, but it requires further exploration and optimization to ensure they can meet the necessary technical standards for practical applications.
Environmental Viability
- Reduction in Fossil Fuel Use: By producing hydrogen using solar energy, the project could reduce the dependence on fossil fuels and lower greenhouse gas emissions associated with hydrogen production, which is currently largely based on fossil fuels.
- Sustainability of Materials: Carbon-based semiconductors are considered more abundant and less resource-intensive compared to other materials like titanium dioxide. This could make the process more sustainable and environmentally friendly, provided that the overall lifecycle of the materials and energy used is considered.
Why It Matters: This research is crucial as it aims to develop a sustainable method for hydrogen production using solar energy. This approach could significantly reduce our reliance on fossil fuels and lower greenhouse gas emissions. By advancing efficient photocatalytic water splitting with carbon-based semiconductors, the research has the potential to make hydrogen a more viable and eco-friendly energy source. Read More
Policy Pulse
The week saw major announcements and deals when it comes to climate policy and net zero goals.
Egypt’s Cabinet approves a national council for green hydrogen and its derivatives.
Egypt is establishing a National Council for Green Hydrogen and its derivatives. The council aims to unify state efforts to incentivize investments and projects related to green hydrogen and its derivatives in Egypt.
Why it Matters: This policy development is crucial as it consolidates Egypt’s efforts to become a global leader in green hydrogen, a key component of the global energy transition. By creating a dedicated national council, Egypt aims to attract investments and overcome barriers, aligning with its 2030 sustainable development goals. Read More
A new bipartisan US bill, introduced by Reps. Valerie Foushee (D-NC) and Max Miller (R-OH), aims to boost low-emissions cement, concrete, and asphalt development.
A new bipartisan bill, the Impact Act 2.0, was introduced in the House by Reps. Valerie Foushee (D-NC) and Max Miller (R-OH) to promote the development and manufacturing of low-emissions cement, concrete, and asphalt.
Why it Matters: The Impact Act 2.0 is significant as it addresses the environmental impact of cement, concrete, and asphalt, which are major contributors to global carbon emissions. By promoting the development and adoption of low-emissions alternatives, this bipartisan bill aims to reduce pollution in critical infrastructure sectors, aligning with broader efforts to combat climate change and support sustainable development. Read More
U.S. Department of Energy Announces $4.6M in 2024 INFUSE Public-Private Partnership Grants
The U.S. Department of Energy has awarded $4.6 million across 17 public-private partnerships through the Innovation Network for Fusion Energy (INFUSE) program. This initiative aims to speed up fusion development by fostering collaboration among industry, national labs, and universities.
Why it Matters:
This funding is crucial as it strengthens partnerships between the private sector, national labs, and universities to speed up the development of commercial fusion energy. By backing research in key areas like materials science and simulation, this program supports the broader goal of achieving scalable and sustainable fusion energy—a potential game-changer in the global shift towards clean energy.. Read More
Today’s Climate Data Point
BNEF predicts we’ll need to use 390 million tons of hydrogen per year worldwide in 2050 to eliminate carbon emissions from the global economy, more than four times the amount used today.
Image credit: Bloomberg
Data Points:
Global Hydrogen Plant Plans: Almost 1,600 hydrogen plants are planned worldwide, but most lack committed buyers.
Customer Agreements: Only 12% of low-carbon hydrogen plants have formal agreements for hydrogen use. Many agreements are vague and nonbinding.
Cost Discrepancy: Hydrogen produced from clean energy is four times more expensive than hydrogen made from natural gas.
Infrastructure Challenges: Building hydrogen infrastructure is complex and costly due to the need for pipelines and the lack of a global hydrogen shipping system.
EU and US Goals: The EU aims to produce 10 million metric tons of carbon-free hydrogen by 2030, with an equal amount to be imported. The US has committed $8 billion to develop hydrogen hubs.
Project Viability: Successful hydrogen projects often include an integrated approach, combining production facilities with nearby customers and renewable energy sources.
Future Projections: BNEF predicts a need for 390 million tons of hydrogen per year by 2050 to eliminate carbon emissions from the global economy.
Current Usage: Almost 90% of hydrogen plants currently have no buyers with contracts in place.
Significance: The data reveals a significant challenge in the hydrogen industry: despite its potential for clean energy and ambitious plans, the lack of committed buyers and high production costs impede the development and scaling of hydrogen projects. This underscores the need for better alignment between hydrogen production and consumption to achieve global decarbonization goals. Read More
Climate Insider Intelligence: 20 Women Leading Climate Tech and Innovation 2024
Knowing these women taking the lead in climate tech and innovation spanning multiple sectors is a must in 2024!
These women are leading by example when it comes to climate tech startups, policy and governance and research. Starting from agtech startups to leading local government climate action projects, they are taking strides towards sustainability.
Climate Insider’s list of 20 women leading climate tech and innovation you should know about in 2024.Read more about their professional journeys.
