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Today’s newsletter:
🔝Today’s Top Story: The Global CCS Institute’s 2024 report reveals significant momentum in Carbon Capture and Storage (CCS) development, with 628 projects in various stages, a 60% increase compared to last year.
📊 Today’s Data Point: BloombergNEF (BNEF) has released its report, Asia Pacific’s Energy Transition Outlook, in collaboration with GenZero.
🌳 Climate Insider Intelligence: Building Bridges – Understanding the Nuances of Investing in Climate Tech in Europe vs Africa.
Global CCS 2024 Report: Carbon Capture Projects Surge with 32% Growth as Governments and Industry Push Toward Net-Zero
Rapid Growth in CCS Projects Globally
The Global CCS Institute’s 2024 report reveals significant momentum in Carbon Capture and Storage (CCS) development, with 628 projects in various stages, a 60% increase compared to last year. The cumulative CO2 capture capacity now stands at 416 Mtpa, with a 32% CAGR since 2017. Governments and industries worldwide are accelerating efforts to reach net-zero, as facilities under construction are expected to double current capture capacity to over 100 Mtpa.
Regional Developments in CCS
The Americas lead CCS deployment with 27 operational projects and 18 under construction, driven by strong policy support. Europe follows with 191 projects, while Asia focuses on cross-border storage hubs. China continues its rapid CCUS development due to climate policies and international collaboration. In the Middle East and Africa, the focus has shifted from enhanced oil recovery to industrial decarbonization and low-carbon fuels.
Evolving Carbon Management Models
The rise of CCS hubs and networks, with 222 transport and storage projects, highlights the shift toward new carbon management business models. These hubs provide economies of scale for CO2 storage and transportation infrastructure, crucial for decarbonizing industries. The report urges governments, industries, and communities to maintain collaborative momentum to achieve global net-zero targets. Read More
Market Movers
- Global clean energy deployment is surging, with renewable capacity expected to more than double by 2030, driven by nearly $2 trillion in annual investments, yet uneven progress across technologies and regions leaves gaps in meeting international climate targets. Read More
- Minister Filomena Tassi announced $1.2 million in federal support for B.S.B. Manufacturing Ltd. to enhance its production of electric vehicle components through new automated equipment and facility upgrades, boosting its capacity and positioning it for growth in the EV industry. Read More
- Egyptian micromobility startup Rabbit Mobility raised $1.3 million to expand its fleet of electric scooters and bikes across Egypt and North Africa, aiming to address urban transportation challenges with sustainable, short-distance travel solutions. Read More
- Stockholm-based Voi Technology raised €50M through an oversubscribed bond offering to expand its e-scooter and e-bike fleet, refinance debt, and support corporate activities, following a year of strong performance and significant cost reductions. Read More
- Wollongong startup Green Gravity raised $9 million to advance its innovative energy storage technology, which repurposes disused mining shafts to store and release gravitational potential energy, with the funds supporting large-scale testing and future commercial deployment. Read More
Tech Spotlight
Mission Zero Technologies: Innovating Direct Air Capture (DAC) Systems
Image Credit: Carbon Herald
Source: London, U.K. / Innisfail, Canada
Mission Zero Technologies (MZT) has partnered with Deep Sky to deploy an electrochemical direct air capture (DAC) system at the Deep Sky Labs carbon removal innovation center in Canada. This system, powered by renewable solar energy, will initially aim to capture and store up to 250 tonnes of CO2 annually, with future plans for commercial facilities that could remove up to one million tonnes per year.
Commercial Viability
Market Impact:
The deployment of Mission Zero’s DAC system at Deep Sky Labs marks a critical advancement in carbon capture technologies. As climate policy demands grow, DAC solutions are emerging as essential tools for industries looking to mitigate their carbon footprint. Mission Zero’s ability to deliver this system internationally demonstrates its capacity to scale and meet market demand for CO2 removal technologies.
Cost-Effectiveness:
By focusing on a modular, electrochemical DAC design, MZT aims to lower both energy use and operational costs. The system’s integration with renewable solar power is expected to enhance cost efficiency, making it a commercially viable solution for large-scale carbon capture projects across Canada and potentially other global markets.
Technical Viability
Technology Challenges:
DAC technologies often face challenges in energy consumption and scalability. Mission Zero’s innovative electrochemical design, combined with established supply chains, addresses these barriers by offering a modular solution that can be rapidly deployed. Early-stage installations like the one at Deep Sky Labs are critical for validating the system’s long-term operational feasibility.
Efficiency Consideration:
MZT’s system leverages proven components to minimize energy consumption while maximizing carbon removal efficiency. With the potential for expansion to a million-tonne capacity annually, the system offers a scalable, energy-efficient approach to capturing atmospheric CO2.
Environmental Viability
Sustainability Alignment:
This DAC system supports global efforts to achieve net-zero carbon emissions. By being powered entirely by solar energy, it aligns with sustainability goals and offers an alternative to fossil fuel-driven capture technologies, further solidifying DAC’s role in the clean energy transition.
Climate Impact:
Successful deployment of this technology could have a significant impact on reducing global CO2 levels. The system’s scalable design ensures that future expansions will play a key role in large-scale carbon removal projects, with the potential to eliminate gigatons of CO2, contributing to climate change mitigation efforts.
Scaling Potential
Investment Strategies:
The successful deployment at Deep Sky Labs, supported by modular design, creates investment opportunities for Mission Zero. Its ability to reduce costs and scale up CO2 removal presents a promising case for venture capitalists and institutional investors looking to support climate tech solutions.
Future Expansion:
Following the validation of this system, the partnership’s long-term goal is to build a commercial facility capable of capturing one million tonnes of CO2 annually. This ambitious target reflects the growing demand for large-scale carbon removal technologies and positions both MZT and Deep Sky as leaders in this evolving market.
Long-Term Implications
Reevaluating DAC’s Role:
Mission Zero’s DAC system at Deep Sky Labs represents a key step in the evolution of direct air capture technologies. The ability to scale and deploy internationally provides a crucial blueprint for future global carbon removal efforts, reinforcing the pivotal role of DAC in addressing climate change.
Strategic Vision for Growth:
MZT co-founder Dr. Nicholas Chadwick emphasizes the importance of modular design and established supply chains in scaling DAC technologies. As Deep Sky CEO Damien Steel highlights, the projected reductions in energy and cost set a new standard for impactful climate technologies, accelerating the path toward gigaton-scale CO2 removal. Read More
Policy Pulse
This section includes global updates on climate change policy, governance and regulation.
Berlin launches €50 billion ‘climate contracts’ for industry.
Germany’s new ‘Carbon Contracts for Difference’ scheme will provide targeted subsidies to bridge the investment gap between clean technologies and polluting processes, ensuring industries can competitively decarbonize ahead of the 2045 climate neutrality target.
Why it Matters: The scheme is crucial for accelerating industrial decarbonization in Germany by making clean technologies financially viable, positioning the country as a leader in meeting climate goals and setting global standards for carbon reduction. Read More
Today’s Climate Data Point
BloombergNEF (BNEF) has released its report, Asia Pacific’s Energy Transition Outlook, in collaboration with GenZero, urging the region to expedite the deployment of mature technologies, support emerging climate solutions, and enhance financing for the energy transition to meet the Paris Agreement goals. The report emphasizes the need for accelerated momentum in the region, particularly among six key markets: China, India, Japan, South Korea, Indonesia, and Vietnam.
Source: BloombergNEF’s Asia Pacific’s Energy Transition Outlook
Key Findings:
- Investment Requirements: To achieve net-zero emissions by 2050, annual investment in energy transition technologies in APAC must triple to approximately $2.3 trillion from 2024 to 2030.
- Mature Technologies: Four commercially scalable technologies—electric vehicles, renewable power, energy storage, and power grids—are identified as mature, yet require substantial acceleration to meet decarbonization targets.
- Emerging Technologies: Nuclear, carbon capture and storage (CCS), hydrogen, sustainable aviation fuels, and heat pumps are essential for deep decarbonization but are currently not cost-competitive and face significant scaling challenges.
- Economic Opportunities: Cost-competitive low-carbon solutions like solar, wind, and electric vehicles present significant economic opportunities in the region.
- Collaborative Approach: Cross-border collaboration and mobilizing funding from various sectors are crucial for deploying effective solutions and achieving a just energy transition.
Implications:
- Market Dynamics: The need for diverse technologies indicates a complex market landscape where mature technologies must complement emerging solutions to achieve comprehensive decarbonization.
- Policy Recommendations:
- Intensify support for the commercialization of emerging decarbonization technologies.
- Foster public-private partnerships to mobilize investments.
- Leverage carbon markets to finance early-stage technologies and facilitate the transition away from unabated coal power plants.
Conclusion: The Asia Pacific’s Energy Transition Outlook report underscores the urgent need for accelerated deployment of both mature and emerging technologies to navigate the region’s energy transition successfully. With a substantial increase in investments and collaboration across borders, APAC can harness its resources and drive towards achieving net-zero emissions by 2050.
Climate Insider Analysis: The BNEF report highlights critical opportunities and challenges in the APAC energy transition landscape. Accelerating the adoption of both mature and emerging technologies is vital for overcoming barriers to decarbonization. To meet the ambitious targets outlined in the Paris Agreement, a concerted effort involving multiple stakeholders is essential to facilitate investment flows and technology deployment in the coming years. Read More
Climate Insider Intelligence: Building Bridges – Understanding the Nuances of Investing in Climate Tech in Europe vs Africa
In our groundbreaking series, “Building Bridges Between Europe and Africa,” Climate Insider collaborates with Satgana to explore the dynamic landscapes of Climate Tech investments. As global VC momentum accelerates, understanding regional nuances becomes paramount. Join us as we delve into the unique challenges and opportunities shaping the Climate Tech ecosystems in Europe and Africa.
Discover how Satgana is strategically allocating 70% of its initial fund to European startups and 30% to African innovators, fostering a vibrant exchange of ideas and capital across continents. This series will highlight the contrasts in innovation, funding, and regulatory environments, while showcasing compelling case studies from Satgana’s diverse portfolio.
Stay tuned for insightful analysis that uncovers how these regions can collaborate to address urgent climate challenges, bridging gaps and creating sustainable solutions for a greener future. Read More
