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Today’s newsletter:
🔝Today’s Top Story: Sumitomo Corporation has entered India’s renewable energy sector by investing $711.54 million through a joint venture with AMPIN Energy Transition Private Limited.
📊 Today’s Data Point: Underestimated Urban Heating and Cooling Impacts
🌳 Climate Insider Intelligence: Electrification Startups Dominate Europe’s Climate Tech Investments
Sumitomo Invests $711M in India’s Booming Renewable Energy Market, Targets 1GW Solar & Wind Supply via PPAs
Image Credit: Sumitomo Corporation
Investment and Partnership Details
Sumitomo Corporation has entered India’s renewable energy sector by investing $711.54 million through a joint venture with AMPIN Energy Transition Private Limited. The newly formed company, AMPIN C&I Power Private Limited, is majority-owned by AMPIN (51%), with Sumitomo holding a 49% stake. This investment aims to develop clean energy sources, with a focus on supplying solar and wind power to corporate clients in India through power purchase agreements (PPAs).
Corporate PPA and Clean Energy Focus
The joint venture targets the supply of one gigawatt of renewable energy, primarily solar and wind, to industrial clients in the coming years. PPAs are central to their business strategy, allowing them to secure long-term energy contracts with corporations. The project is one of the largest corporate PPA initiatives by a Japanese firm in India, marking a significant step in India’s renewable energy market, which is currently the third-largest corporate PPA market globally.
India’s Renewable Energy Ambitions
India is pushing towards its goal of achieving net-zero emissions by 2070, with interim targets of 50% renewable energy by 2030. Regulatory reforms, including better access to transmission networks and an improved business environment, have supported the growth of corporate PPAs. This environment aligns with Sumitomo and AMPIN’s goals of contributing to India’s energy transition and delivering substantial long-term returns. Read More
Quote of the Day
“By combining our expertise and resources, we aim to co-develop and co-own renewable energy projects that will provide substantial long-term returns whilst significantly contributing to the nation’s energy transition goals,” said Pinaki Bhattacharya, founder, MD, and CEO of AMPIN Energy Transition.
Significance
Collaboration & Expertise: Highlights the synergy between Sumitomo and AMPIN in leveraging their combined resources and expertise to develop renewable energy projects.
Long-term Investment Focus: Emphasizes the goal of achieving substantial, sustainable returns over time, reflecting a strategic long-term commitment.
Contribution to India’s Energy Transition: Reinforces the importance of the partnership in advancing India’s broader goals of transitioning to renewable energy, aligning with national energy transition objectives.
Market Movers
- Paris-based startup Bib Batteries has raised €2.2M to scale its battery management technology, aiming to extend battery lifecycles from electric vehicles to second-life applications like repair, reuse, or recycling, with participation from investors such as Family Ventures, NextGear Ventures, and Techstars Paris. Read More
- Clean heat tech startup Exergy3 has secured £1 million in pre-seed funding to advance its modular thermal energy storage systems, which convert green electricity into heat stored at ultra-high temperatures, addressing the significant challenge of decarbonizing high-temperature industrial processes. Read More
- Hynion Sverige AB has secured SEK 18.21 million in climate investment funding from the Swedish Energy Agency to cover 60% of the costs for a new hydrogen refueling station in Örnsköldsvik, strategically located along key transport routes to bolster Sweden’s hydrogen infrastructure. Read More
Tech Spotlight
UK’s First Carbon Capture Pilot at Energy-from-Waste Facility
Source: Enfinium Press Release, September 16, 2024
Enfinium, a UK energy-from-waste (EfW) operator, has launched the UK’s inaugural carbon capture pilot at its Ferrybridge-1 facility in Knottingley, West Yorkshire. This initiative marks a significant milestone in the deployment of Carbon Capture and Storage (CCS) technology within the EfW sector, aiming to generate carbon removals at scale.
Commercial Viability
- Performance Metrics: The pilot, utilizing a containerized version of CCS technology supplied by Hitachi Zosen Inova (HZI), captures one tonne of CO2 per day. The trial will monitor CO2 capture rates, solvent degradation, and the performance of various amine solvents over a minimum of 12 months.
- Material Efficiency: The pilot will provide crucial data for scaling CCS technology across Enfinium’s facilities, contributing to the company’s Net Zero Transition Plan, which aims for up to 1.2 million tonnes of carbon removals annually by the 2030s.
Technical Viability
- Innovative Structure: The pilot’s containerized design allows for practical testing of CCS technology on-site. By assessing operational performance in real-world conditions, it will refine methods for capturing CO2 from waste processing.
- Independent Functionality: This pilot represents a step towards scalable CCS solutions, capable of integrating into various EfW facilities. It supports Enfinium’s broader goal of achieving significant carbon removals and advancing CCS technology for widespread application.
Environmental Viability
- Sustainable Material Development: Capturing CO2 from biogenic waste at EfW facilities not only reduces greenhouse gases but also supports the concept of negative emissions. This aligns with global climate goals by mitigating the impact of unrecyclable waste.
- Climate Alignment: The CCS pilot supports the UK’s Net Zero ambitions by demonstrating how the EfW sector can contribute to carbon removal efforts. It aligns with the Climate Change Committee’s recommendations and research suggesting potential significant contributions from the EfW sector.
Scaling Potential
- Commercialization Pathways: The successful operation of this pilot could pave the way for broader adoption of CCS technology in the EfW sector, facilitating its integration into existing waste management infrastructure.
- Investment and Growth: The pilot’s success is likely to attract investment in CCS technology, with potential for scaling and deploying similar solutions across other EfW facilities, driving forward carbon removal and decarbonization efforts.
Long-Term Implications
- Transformative Impact on Waste Management: This pilot represents a critical step towards mainstreaming CCS technology in the EfW sector, potentially transforming how waste management contributes to carbon removal. The data gathered will be pivotal for scaling CCS and achieving broader climate objectives.
- Future Prospects: If successful, the pilot could set a precedent for large-scale CCS deployment in waste management, significantly impacting the UK’s carbon removal capabilities and contributing to global sustainability goals. Read More
Policy Pulse
This section includes global updates on climate change policy, governance and regulation.
The UAE wants to transform climate finance by capping its own returns.
ALTÉRRA, the UAE’s $30 billion climate fund, is tackling the challenge of limited climate finance for developing countries by capping returns on risky investments, thereby attracting global fund managers to invest in these markets and potentially unlocking new capital sources despite the high perceived risks.
Why it Matters: This approach matters because it addresses the critical gap in climate finance for developing countries, potentially catalyzing significant investment needed to tackle global climate challenges where traditional funding sources fall short. Read More
Canada Invests in Net Zero Atlantic to Create Jobs and Support Clean Energy for Atlantic Canadians
Canada’s accelerated investment in clean energy and technologies aims to create jobs, attract global investment, and position Atlantic Canada as a leader in clean energy, with significant funding supporting projects to integrate offshore wind and decarbonize the region’s electricity grid.
Why it Matters: This development matters because it propels Canada towards its climate goals, fosters economic growth through job creation in clean energy, and enhances the country’s role as a key player in global clean energy markets. Read More
Today’s Climate Data Point
Underestimated Urban Heating and Cooling Impacts: Study Reveals Major Gaps in Energy Projections
Source: University of Illinois Urbana-Champaign, Nature Climate Change
A recent study led by Professor Lei Zhao from the University of Illinois Urbana-Champaign highlights a significant gap in current global energy projections. The study reveals that existing forecasts underestimate the impact of climate change on urban heating and cooling systems by approximately 50% by 2099, assuming high greenhouse gas emissions.
Study Focus:
- Research Emphasis: The study shifts attention from large-scale chemical feedback loops to the physical interactions between urban infrastructure and the atmosphere, which contribute to local microclimates and global climate impacts.
- Key Findings: Small-scale waste heat from residential and commercial heating and cooling systems significantly affects local climates and energy use. This creates a positive physical feedback loop where increased urban heat drives greater demand for cooling, further intensifying local warming.
Implications:
- Positive Feedback Loop: Increased heat from urban systems exacerbates local warming and energy demand.
- Negative Feedback Loop: Rising temperatures might reduce heating demand in colder months, potentially dampening some urban warming effects but not eliminating the positive feedback loop.
Methodology:
- Modeling Framework: The research uses a hybrid approach combining dynamic Earth system modeling with machine learning to account for urban climate variability, including factors like income, infrastructure, and population density.
Future Directions:
- Model Improvements: The team will refine models by incorporating variables such as humidity, building materials, and future climate mitigation efforts to enhance energy-demand projections.
Conclusion: Integrating both positive and negative physical feedback loops into energy projections is essential for more accurate climate impact assessments and effective climate-sensitive energy planning.
In Other News
This section covers notable news highlights in climate tech.
Climate Insider has partnered with 🌏 The Atlas Capital & Climate Tech Coalition to cover The Climate Tech Investors Summit in New York City on September 24-25, 2024, an event focusing on funding and advancing climate solutions through discussions and networking with industry leaders and investors. Learn More
Climate Insider Intelligence: Electrification Startups Dominate Europe’s Climate Tech Investments
In an era where clean energy alternatives are becoming paramount, Europe is experiencing a seismic shift in climate tech investments. Recent data reveals that electrification startups are attracting a staggering 62% of venture capital funding in climate tech. From electric vehicle batteries to green hydrogen, this surge reflects a transformative move towards sustainable solutions. Discover the driving forces behind this investment boom, explore the key segments revolutionizing industries, and uncover what it means for Europe’s energy future. Dive into our deep analysis and see how electrification is shaping the next wave of climate innovation. Read More
