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Today’s newsletter:
🔝Today’s Top Story: Harvestone Low Carbon Partners (HLCP) and Bank of America have closed a $205 million tax equity financing agreement.
📊 Today’s Data Point: Decline of Gas Stations in Europe; Projected 45% Reduction by 2050.
🌳 Climate Insider Intelligence: 15 Women Leading Climate Tech Research You Should Know in 2024.
Harvestone and Bank of America Close Landmark $205M Deal to Advance Carbon Capture in U.S. Biorefinery
Landmark Tax Equity Financing Deal
Harvestone Low Carbon Partners (HLCP) and Bank of America have closed a $205 million tax equity financing agreement. This financing supports HLCP’s subsidiary, Blue Flint Ethanol, located in North Dakota, which is capturing and sequestering biogenic carbon dioxide (CO2) emissions. As one of the first deals of its kind, Bank of America is set to benefit from federal tax credits under the 45Q and 45Z programs. HLCP’s ownership of the entire value chain allowed for this unique financing structure, further advancing their carbon capture and storage (CCS) efforts.
Blue Flint Ethanol’s Carbon Capture Impact
Blue Flint Ethanol is the third biorefinery in the U.S. to capture its CO2 emissions and the first to do so after the passage of the Inflation Reduction Act in 2022. Since operations began in October 2023, the facility has captured and sequestered over 125,000 metric tons of CO2, with plans to exceed 200,000 metric tons annually—equivalent to the emissions of 42,000 vehicles. This initiative significantly reduces the facility’s carbon intensity and strengthens both ethanol production and the agricultural markets in North Dakota.
Strategic Partnerships and Future Outlook
HLCP’s CEO Jeff Zueger praised the partnership with Bank of America, which supports ongoing efforts to reduce CO2 emissions through innovative financing models. HLCP aims to achieve “Vision Carbon Zero,” using North Dakota’s unique geology to integrate CCS at multiple facilities. Bank of America is committed to expanding decarbonization technologies through tailored financial solutions, marking this as a significant step toward more sustainable industrial practices in the biofuels sector. Read More
Market Movers
- SET Ventures’ €200 million fourth fund aims to accelerate the transition to a carbon-free energy system by backing European startups developing digital, data-driven solutions that integrate renewable technologies and encourage early adoption through innovative business models. Read More
- Aiga Capital Partners has closed its debut $240 million climate infrastructure fund, aimed at accelerating sustainable infrastructure development across North America by providing tailored, flexible capital solutions to support projects from pre-construction to acquisition and beyond. Read More
- Copenhagen-based REDUCED has secured €8 million in its Series A funding round, with backing from the European Circular Bioeconomy Fund, to accelerate market expansion and further develop its upcycled food ingredients in the DACH region and beyond. Read More
- Encyclis has received approval to build a carbon capture plant at the Protos Energy-from-Waste facility, which will prevent approximately 380,000 tonnes of CO2 emissions, enhancing the sustainable treatment of unrecyclable household and commercial waste. Read More
- German startup Reonic provides planning and workflow software to help renewable energy installers become more efficient, aiming to boost productivity for small businesses installing heat pumps and solar panels, in line with the REPowerEU plan to expand green energy deployment across Europe. Read More
Tech Spotlight
Hydrogen Solar Panel: Revolutionary Energy Source
Source: D. García/Interesting Engineering 2024
Hydrogen solar panels are poised to disrupt the renewable energy landscape by combining two of the most potent, clean energy sources: solar power and hydrogen. These innovative panels directly convert sunlight and moisture into hydrogen, bypassing traditional photovoltaic-electrolyzer combinations. Developed by the University of Leuven’s Solhyd project, this technology offers an unprecedented leap in efficiency and output. As the world faces growing energy challenges, hydrogen solar panels could offer a game-changing solution with significant implications for the energy sector.
Commercial Viability
Performance Metrics:
Solhyd’s hydrogen solar panel delivers an impressive energy output. A single module can produce approximately 6 kg of hydrogen per year in Northwestern European climates, and up to 12 kg in sunnier regions. When scaled to a system with 20 panels, it generates between 4 and 8 MWh of hydrogen energy annually. This surpasses current energy conversion systems, offering high potential for industrial and residential applications.
Material Efficiency:
The hydrogen solar panel excels in its ability to capture moisture from the air, converting it directly into hydrogen. With a peak efficiency of 15%—and real-world efficiencies targeted at 12%—the panels are designed for high-performance hydrogen generation. This unique material combination and membrane technology make the panel a standout in renewable energy innovation, offering greater efficiency and adaptability than traditional photovoltaic systems.
Technical Viability
Innovative Structure:
The hydrogen solar panel integrates a traditional PV module with a unique layer designed to capture and convert water vapor into hydrogen. This distinct design allows the system to function independently of liquid water sources and power grids, offering a decentralized, stand-alone hydrogen production solution. One of the key innovations lies in its patented membrane, which focuses and collects water vapor, making the entire process seamless and efficient.
Independent Functionality:
Unlike standard solar panels, Solhyd’s hydrogen panel operates without needing direct sunlight, instead relying on ambient moisture. This capacity allows the panel to work in diverse climates, making it adaptable to various geographical regions. The membrane’s ability to capture water vapor from the air is critical to this innovation, enabling continuous hydrogen production even in less sunny environments.
Environmental Viability
Sustainable Energy Solution:
Hydrogen solar panels support a more sustainable energy infrastructure by reducing dependency on fossil fuels. By merging solar energy with hydrogen production, this technology represents a powerful clean energy hybrid. The panels produce hydrogen without requiring water grids or additional infrastructure, contributing to an efficient and eco-friendly energy ecosystem.
Climate Alignment:
As countries push towards achieving net-zero emissions, the Solhyd hydrogen panel offers a significant contribution to these goals. By enhancing hydrogen production efficiency, the panel could accelerate the adoption of hydrogen as a mainstream energy carrier. This innovation aligns closely with global climate targets, fostering the growth of renewable energy technologies essential for a low-carbon future.
Scaling Potential
Commercialization Pathways:
The commercialization of Solhyd’s hydrogen panels could revolutionize the renewable energy sector, particularly in regions with high solar radiation. The system’s versatility allows for its integration with current photovoltaic infrastructure, reducing barriers to entry. Furthermore, the potential to scale the technology for industrial use could lead to widespread adoption in energy-intensive sectors like manufacturing and transportation.
Investment and Growth:
The promising performance of hydrogen solar panels has already attracted significant interest from investors. As the global market for hydrogen expands, these panels could become a critical technology in hydrogen production. Their capacity to deliver substantial energy outputs with minimal infrastructure requirements places them at the forefront of renewable energy investments.
Long-Term Implications
Energy Transition Game-Changer:
The development of Solhyd’s hydrogen solar panels signals a pivotal shift in how renewable energy is produced and stored. By generating hydrogen directly from sunlight and air, these panels could overcome many limitations of current solar and hydrogen systems, such as dependency on water and centralized power grids. This technology could be a cornerstone in the global transition to a hydrogen-based energy system, supporting both large-scale industrial operations and residential applications. If widely adopted, it could play a key role in decarbonizing global energy systems, contributing to efforts to combat climate change and reduce reliance on finite fossil fuel resources. Read More
Policy Pulse
This section includes global updates on climate change policy, governance and regulation.
Decarbonising steel in Europe: How the right policies can speed up the net zero transition.
The EU aims to decarbonize its steel industry, a key contributor to emissions, through improved policies that support industrial innovation and sustainable competitiveness, with plans for a Clean Industrial Deal in the next political cycle.
Why it Matters: This policy development is crucial for aligning the EU’s steel industry with its net-zero goals, boosting industrial innovation, and setting a global standard for sustainable economic growth. Read More
USAID Announces Initiative to Boost Southeast Asia Investments in Low-Carbon Land Use.
USAID’s new five-year initiative aims to drive sustainable agricultural and forestry investments in Southeast Asia by collaborating with private sector partners to reduce carbon emissions, enhance climate resilience, and promote equitable community benefits, while advancing the US-ASEAN partnership and supporting regional economic growth.
Why it Matters: This policy development is crucial for addressing deforestation, enhancing sustainability in global agricultural supply chains, and advancing climate resilience in Southeast Asia while fostering economic growth and social equity. Read More
Today’s Climate Data Point
Decline of Gas Stations in Europe: Projected 45% Reduction by 2050
Source: Consultancy.eu
The number of gas stations in Europe is projected to fall by nearly 45% over the next 25 years, driven primarily by the shift toward electric vehicles (EVs) and advancements in battery technology. Research from Sia Partners highlights this significant change and emphasizes the need for gas stations to pivot their business models to adapt to new mobility solutions. Here’s a detailed breakdown of the key data points:
Projected Decline in Gas Stations:
- Overall Reduction: The number of gas stations in Europe is expected to drop from 120,000 to 66,000 by 2050, marking a 45% decline.
- Regional Variations:
- Poland and Croatia: Anticipated to see a 58% reduction in gas stations.
- Spain: Expected to experience a 29% decline.
- Cyprus and Luxembourg: Projected to face a 28% decrease.
Vehicle Fleet Transformation:
- Decline in ICE Vehicles: The number of internal combustion engine (ICE) vehicles in Europe is forecasted to fall by 63%, from 260 million to 97 million by 2050.
- Impact on Gas Stations: The reduction in ICE vehicles directly correlates with the decreased demand for gas stations.
Industry Adaptation Strategies:
- Energy Diversification: Gas stations are encouraged to diversify their offerings to include:
- EV Charging Stations: Installation of charging points for electric vehicles.
- Hydrogen Fuel and Biofuels: Adoption of alternative fuels to cater to changing vehicle types.
- Business Model Transformation:
- Retail and Mobility Hubs: Expansion into retail activities and the creation of mobility hubs offering rental bikes, vehicles, and maintenance services.
Consumer and Industry Shifts:
- Increased Demand for Clean Energy: The shift towards EVs and improved fuel efficiency is driving the decline in gasoline consumption.
- Need for Innovation: Gas stations must innovate by integrating cleaner technologies and enhancing customer experience to remain competitive in the evolving energy landscape.
Key Insights:
- Future of Gas Stations: The transition from traditional gas stations to comprehensive energy stations is crucial for adapting to the changing transportation and energy consumption patterns.
- Long-Term Impact: Gas stations that embrace diversification and innovative business models will be better positioned to thrive in the new energy landscape, ensuring their relevance and sustainability.
Understanding these trends provides valuable insight into the future of gas stations in Europe and the broader implications for the energy and automotive industries. Read More
In Other News
This section covers notable news highlights in climate tech.
- European regulators are pushing for greener energy with initiatives like the REPowerEU plan, which includes adding 10 million heat pumps by 2027 and increasing solar panel installations, while German startup Reonic aims to enhance efficiency for renewable installers through comprehensive planning and workflow software. Read More
- The clean energy sector is facing a troubling increase in bankruptcies due to failed fundraising efforts, with companies like Moxion Power, SunPower, and Ambri, despite significant investments from major tech and energy firms, struggling to stay afloat. Read More
- SaskPower is establishing a new subsidiary, SaskNuclear, to manage the development of small modular reactors (SMRs), focusing on regulatory and business processes, with the goal of meeting high Canadian nuclear standards and supporting a final investment decision on SMRs by 2029. Read More
Climate Insider Intelligence: 15 Women Leading Climate Tech Research You Should Know in 2024
Discover the inspirational women shaping the future of climate tech in 2024!
From advancing carbon capture technology to leading AI-driven climate modeling, these researchers are pioneering solutions that address global climate challenges. Explore the Climate Insider’s list of 15 exceptional women driving innovation in climate science, renewable energy, and sustainable development. Their work is not only transforming research but also providing crucial tools for policymakers and businesses. Dive into the profiles of these leaders and see how they are making a significant impact on our planet’s future. Read More
