This month in the cleantech roundup, we’re looking at new data around how climate change will impact future generations, how some new EV charging network entrants are folks you might not expect, and the impact of corruption on Ohio’s energy policy. We’ll also touch on new moves in lab grown meat, a funding slowdown for the climate tech space, and more!
Generational Climate Change
Credit: UNIPCC Via Axios
The IPCC is out with their 6th assessment report – the headline is that global temperatures are expected to rise 1.5 degrees Celsius by sometime in the 2030-2035 window (for context, limiting the world to 1.5 degrees of warming total is what the Paris Agreement aspires towards).
The report also had one of the best infographics I have ever seen (the image above – there’s a good chance you’ve seen it already) – which does a nice job illustrating how different generations (especially future generations) will experience climate change.
As someone with small children, it’s something I think about a lot. More specifically, I think about how the hard work that must be undertaken to address climate change is going to happen over the next 10-15 years – or before my kids graduate from high school. Here’s to hoping that we give them a manageable challenge to inherit.
Quick Service
Credit: Subway
Subway Restaurants is partnering with a charging infrastructure provider to develop car charging locations. Meanwhile, 7-Eleven announced its own fast charging network initiative. We’re about to move from an era where finding a place to charge is a bit of an ordeal, to one where everyone and their brother will have a charging network (and then probably one where folks figure out which business models actually make sense and consolidate a bit). Hat tip to Reilly Brennan’s FoT newsletter for flagging both of these.
Meat?
Credit: Good Meat
Cultivated or ‘lab grown’ meat may be available on menus in the United States by the end of the year – the company Good Meat is already selling products in Singapore. It should be an interesting year for this space, as macroeconomic conditions put significant pressure on startups (when interest rates are high, investors prefer profitable companies to potential future growth opportunities) – just as some successfully get to market, others will fold.
Hitting the Brakes
Data is still being crunched but it appears that there was a pretty notable slowdown in climate tech funding in the first quarter of 2023. This means more funding rounds may be downsized or delayed, slowing the speed to market for climate tech companies, and by extension, the impact they can achieve. Some other companies will go out of business altogether. Funding is still at robust levels compared to five years ago, and other mechanisms like the tax credits in the Inflation Reduction Act will still provide some insulation to the clean energy space; that said, tax credits are primarily beneficial to more mature companies. With the slowdown happening, one thing we could see is that the companies that benefited from the ebullient funding environment of 2021 and early 2022 are able to charge ahead, while companies starting to fundraise in a different environment struggle to keep pace.
And Justice For All?
Credit: Jake Zuckerman/Cleveland.com
The Ohio Speaker of the House was recently convicted in a bribery scheme tied to the passage of a state energy bill. We talked about this scandal a few years ago when he was first charged. While it is good to see justice served, that law is still on the books and the legislature doesn’t have any plans to repeal it, meaning myrelatives who live in northwest Ohio are still paying each month for a corrupt subsidy scheme.
Energy Generation
Credit: EIA
This chart from EIA is probably not that surprising to folks who follow the energy sector, but I think it is a nice visual representation of the multiple changes that have occurred over the last couple decades here in the US. This graphic charts new capacity additions (i.e. new power plants) – evolving from one that was almost exclusively new natural gas, then gas and wind, then wind and solar (with a little gas), to what is expected to be mostly solar with some batteries and wind and gas.
Meanwhile, a recent Department of Energy study projects that clean energy could provide between 71% and 90% of the country’s overall energy needs by 2030, as a result of recent government policy and cheap renewables (we’re at ~41% today).
Trucking
California is moving forward with more stringent heavy truck emission and pollution regulations; another half dozen states mostly on the east coast have committed to following them as well.
This will put significant pressure on large trucking and logistics companies (and more importantly, the manufacturers who supply them) to decarbonize their fleets. Unlike passenger vehicles, where EV models are rapidly proliferating, there are not a lot of options on the road today for heavy trucks. This is because batteries are heavy and thus reduce range and hauling capacity. Similarly, hydrogen fuel cell vehicles currently lack robust fueling infrastructure and most won’t come to market for several more years.
Subject to Interpretation
New guidance was released on what qualifies for EV tax credits under the Inflation Reduction Act. While more details are still to come, it appears that the list of qualifying cars will shrink in the near term, however, the rules provide some flexibility to prioritize deployment over strict definitions.
Speaking of prioritizing deployment over strict definitions, the Biden Administration approved the large Willow oil project on the north slope of Alaska. This move angered environmental advocates and is inconsistent with a campaign pledge Biden made; this appears to have been a pragmatic decision in light of oil market volatility driven by the Russian invasion of Ukraine.
Powering Chicago
A partnership is helping recruit underrepresented individuals and growing the ranks of electricians in the Chicago area. Powering Chicago is a collaboration between a local electrician’s union, the Electrical Contractors’ Association of Chicago, and Cook county (where Chicago is located). Making sure we have enough electricians to help electrify our buildings and vehicle infrastructure is a critical issue that doesn’t get enough focus – and even better, they are making sure all communities have access to this important career path.
SVB
The New York Times covered how the Silicon Valley Bank crisis was impacting the climate tech space. Now that climate tech is cool and going mainstream, climate tech is facing mainstream problems (like the SVB crisis), too.
CDR
The 1st edition of the State of Carbon Dioxide Removal is an in-depth look at the research, government funding, variety of solutions, and current scale of the carbon removal space – an interesting and wonky read.
Credit: Great Plains Institute
Speaking of carbon dioxide removal, here’s some interesting analysis from the Great Plains Institute showing the potential opportunities available for different types of direct air capture (DAC) projects from a geographic perspective. This analysis evaluated things like geologic conditions and the availability of low-carbon energy generation (to power the DAC systems). Hat tip to Shanu Matthew for flagging this.
