October 2024 – Page 3 – The Global Carbon Fund

U.S. DOE Invests $1.5 Billion to Bolster the Electricity Grid with Clean Energy

October 7, 2024/0 Comments/in Uncategorized /by

The U.S. Department of Energy (DOE) is taking major steps to boost the nation’s power grid, aligning with the Biden-Harris Administration’s Investing in America agenda. The DOE announced two important actions to lower costs and improve energy access. The first is a $1.5 billion investment in four key transmission projects and the second is the release of the final National Transmission Planning (NTP) Study.

These moves reflect the administration’s commitment to making the electricity grid more reliable, resilient, and capable of meeting growing demand with affordable, clean energy.

DOE’s $1.5 Billion Boost for Critical Transmission Projects

The press release explains that the funding intends to improve the reliability of the grid, reduce transmission congestion, and generate affordable energy for millions of Americans. Supported by the Bipartisan Infrastructure Law, these projects are part of the DOE’s Transmission Facilitation Program, which helps remove financial barriers to new transmission development.

These projects will cover nearly 1,000 miles of new transmission lines, adding 7,100 megawatts (MW) of capacity. They will create close to 9,000 jobs and improve the resilience of the grid across Louisiana, Maine, Mississippi, New Mexico, Oklahoma, and Texas. The impact extends beyond job creation, as these investments are also expected to relieve expensive congestion on the grid and increase access to clean energy sources.

Key Transmission Projects Leading the Charge

The four projects, now entering contract negotiations, promise significant improvements to the nation’s power grid. These projects include:

Aroostook Renewable Project: This project in Haynesville, Maine will add a 111-mile transmission line, creating 1,200 MW of capacity. It will connect to New England’s power grid, providing access to low-cost clean energy. The project has a $425 million potential contract value and will create over 4,200 construction jobs and 30 permanent roles.
Cimarron Link: A 400-mile transmission line in Oklahoma, this high-voltage line will bring wind and solar energy to growing areas from Texas to Tulsa. It will provide 1,900 MW of capacity and create over 3,600 jobs with ~ $306 million contract value.
Southern Spirit: This 320-mile line, having a $360 million contract value, will connect Texas’s grid with the southeastern U.S., providing 3,000 MW of power. This will improve resilience against extreme weather and create 850 construction jobs and 305 permanent roles.
Southline: A 108-mile transmission line in New Mexico, adding 1,000 MW of capacity and supporting the region’s growing industries. This project will create at least 150 jobs and deliver clean energy to semiconductor and battery manufacturing facilities. Additionally, it has up to $352 million potential contract value.

These projects also support the Biden Administration’s Justice40 Initiative, ensuring that 40% of the benefits reach underserved communities that have been neglected by past infrastructure investments.

Source: DOE

Unlocking the Transmission Facilitation Program (TFP)

The DOE has introduced the $2.5 billion Transmission Facilitation Program (TFP) to strengthen the country’s electricity grid. This initiative, supported by the Bipartisan Infrastructure Law, will help build new transmission lines between regions and upgrade existing ones. It also aims to connect microgrids in selected U.S. states and territories.

Overcoming Financial Barriers

Administered through the DOE’s “Building a Better Grid Initiative,” the TFP is a revolving fund program designed to tackle the financial obstacles that often delay large-scale transmission projects. It focuses on projects that are crucial for improving grid reliability but wouldn’t move forward without government support.

The program has three key financial tools:

Capacity Contracts: DOE will buy up to 50% of a planned line’s capacity for up to 40 years, helping project developers attract more investors and customers.
Loans: DOE can offer loans to help with transmission development.
Public-Private Partnerships: DOE will partner with companies within National Interest Electric Transmission Corridors (NIETC) to meet the growing electricity demand across states.

The TFP is ideal for projects that are almost ready to begin construction and need financial backing to proceed. It targets regions that rely on firm transmission lines for point-to-point electricity delivery. Projects already fully funded or with a secure revenue stream won’t be considered for this program.

Through capacity contracts, DOE will commit to buying a percentage of the proposed capacity of new transmission lines. This approach lowers the risk for developers by offering financial stability, which encourages other investors and customers to join in. Furthermore, financing is eased with DOE securing a part of the transmission line’s capacity.

DOE’s National Transmission Planning Study: A Blueprint for the Future

Along with new transmission projects, the DOE has released the National Transmission Planning (NTP) Study. This study looks ahead to 2050, focusing on how to keep the grid reliable and affordable while meeting growing energy demands.

The study shows that by 2050, the U.S. will need to expand its 2020 transmission capacity by 2x or 3x. Without this increase, the grid won’t be able to handle the country’s future energy needs. The NTP Study also reveals that expanding the grid and coordinating transmission projects between regions could save the U.S. between $270 billion and $490 billion.

By using long-term planning and smart investments, the DOE aims to secure a cleaner, more resilient, and more affordable electricity future for all Americans.

Why Transmission Expansion Matters

America’s electricity grid has powered the nation for over a century, but currently, the demands have evolved. As Deputy Secretary of Energy David Turk explains, the grid is the “backbone” of the country’s energy system, and upgrading it is crucial for future reliability and cost savings.

Turk further added,

“DOE’s approach to deploying near-term solutions and developing long-term planning tools will ensure our electric grid is more interconnected and resilient than ever before, while also supporting greater electricity demand. The Biden-Harris Administration is committed to bolstering our power grid to improve the everyday life of Americans through affordable power, fewer blackouts, more reliable power, and additional jobs across our country.”

The NTP Study emphasizes that better interregional planning—where different regions work together to meet energy needs—can lead to substantial benefits. By coordinating transmission projects across the U.S., the DOE predicts savings of $170 billion to $380 billion through 2050.

It is indeed the largest investment in grid infrastructure in U.S. history. By improving both short-term and long-term transmission planning, the U.S. is poised to meet growing electricity demand while making the grid more sustainable and accessible.

Source: Biden-Harris Administration Invests $1.5 Billion to Bolster the Nation’s Electricity Grid and Deliver Affordable Electricity to Meet New Demands | Department of Energy

FURTHER READING: EIA Expects Explosive Growth in U.S. Battery Storage—Can America Ascend to Dominance?

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UK’s £22 Billion Carbon Capture and Storage Plan: A Bold Step or A Fossil Fuel Trap?

October 7, 2024/0 Comments/in Uncategorized /by

The UK government recently announced a massive £22 billion investment into carbon capture and storage (CCS) projects over the next 25 years. The technology aims to capture carbon emissions from power plants and heavy industries before storing them underground. While this move aligns with the UK’s ambition to achieve net zero by 2050, experts question whether this strategy will lock the country into fossil fuel dependence for decades.

Prime Minister Keir Starmer recently reaffirmed the government’s commitment to CCS.

“Today’s announcement will give industry the certainty it needs – committing to 25 years of funding in this groundbreaking technology – to help deliver jobs, kick-start growth, and repair this country once and for all.”

UK’s Reduced Vision for Carbon Capture and Storage

The government initially planned to fund eight CCS projects to help the UK reach its net zero emissions target by 2050. However, due to escalating supply chain costs, only three projects will now receive government support. According to The Department for Energy Security & Net Zero (DESNZ), the first two of the Track 1 project are:

BP Plc and Equinor ASA will lead the East Coast Cluster in eastern England, focusing on carbon capture projects.
HyNet will serve industrial sites in western England and Wales, advancing carbon capture initiatives in those regions.

Source: DESNZ

While this investment shows the government’s dedication to decarbonization, the reduced scale of the program highlights the financial challenges that CCS technology faces.

According to Bloomberg, these three projects will remove around 3 million tons of CO₂ per year—far below the 20 to 30 million tons that were initially projected.

(DESNZ’s) five criteria for cluster selection – Track-1 of its Carbon Capture, Usage and Storage program.

RECENT: The “Northern Lights” Shines: Shell, Equinor, and TotalEnergies JV Powers the Norway CCS Project

A Risky Bet on Unproven Technology

The UK bets on carbon capture and storage as a viable means to achieve its net zero target. For tough industries like cement, steel, and fertilizer, CCS is a potential lifesaver. By capturing emissions and storing CO₂ underground, this process prevents greenhouse gases from entering the atmosphere.

On the downside, CCS remains largely untested on the scale needed to make a significant impact. Furthermore, The National Audit Office (NAO) has expressed concerns about the UK’s heavy reliance on CCS and has warned stating,

“Slower progress with getting Track-1 up and running means that DESNZ will struggle to achieve its 2030 ambitions for carbon capture.”

They have highlighted rising costs and the technology’s inconsistent track record. For instance, over the last 20 years, many CCS projects in the UK have failed to meet expectations, which raises uncertainty about whether this large investment will pay off.

Notably, the biggest challenges include the huge cost of CCS and massive supply chain expenses which have forced the government to step back on its original ambitions. Previously industries also tried to integrate CCS with natural gas and coal power plants but the idea was not feasible.

Additionally, the projects are already facing delays. In this case, investment decisions for the first two clusters were initially set for last year but have been postponed multiple times. The NAO has warned that continued delays could force the government to renegotiate contracts with suppliers, which could further increase costs.

The Climate Change Committee’s (CCC’s) assessment of how much CCUS will need to be deployed under its Balanced Net Zero pathway, 2020 to 2050

Source: DESNZ

Locking in Fossil Fuel Dependence

One of the most significant criticisms of the government’s CCS plan is that it could lock the UK into a reliance on natural gas for generations. Natural gas, primarily composed of methane, is a potent greenhouse gas with significant emissions occurring upstream during extraction, processing, and transportation. Relying on natural gas for energy—even with carbon capture—means the UK will continue importing it, exposing the country to volatile global energy markets.

On the contrary, renewables do not have these risks. Wind and solar power are generated locally and are not subject to fluctuating international prices. By investing heavily in CCS, the government may unintentionally slow down the transition to a fully renewable energy grid. After scrutinizing all these factors, industrialists opine that the UK should prioritize renewable energy development and energy efficiency measures to meet its climate goals more sustainably.

The Global Outlook

Currently, only two commercial-scale coal plants globally operate with CCS—Boundary Dam in Canada and Petra Nova in the US. Both projects have struggled with consistent underperformance, technical setbacks, and cost overruns. Moreover, these plants represent a tiny fraction of global power generation, raising doubts about the feasibility of scaling up CCS in time to meet the UK’s net-zero goals by 2050.

Additionally, media agency, The Conversation reported that 80% of captured CO₂ is currently used to enhance oil recovery, which further contradicts the aim of reducing fossil fuel use. Critics argue that the focus on CCS may deter investment in renewable energy projects like wind and solar, which are both cheaper and proven to be effective.

The UK is not alone in grappling with these issues. Worldwide, carbon capture projects have encountered similar problems with high costs and technical challenges.

In summary, while carbon capture technology is essential for cutting emissions from heavy industries, its limitations and rising costs pose significant challenges. The UK’s current CCS projects are already struggling with delays and escalating expenses, leading to doubts about their long-term viability. As the country pushes forward with its net-zero goals, finding a balance between ambition and practicality will be crucial in determining the success of CCS.

Balancing CCS While Embracing Renewables

Despite these challenges, the UK government remains optimistic about CCS’s role in reducing the nation’s carbon footprint. Along with £8 billion in private investment, the government’s funding will help create 4,000 jobs and build the necessary infrastructure to support carbon capture.

Source: IEA

In conclusion, the UK government will have to carefully balance its investment in CCS with the development of renewable energy to ensure it stays on track for net-zero emissions by 2050. While carbon capture offers a way to reduce emissions from industries that are hard to decarbonize, it is not the perfect solution. The government must continue to invest in wind, solar, and other renewable technologies to create a truly sustainable energy future.

Even though the government’s £22 billion bet on CCS may seem a promising decarbonization effort, only time will tell whether it leads to a truly sustainable energy future or simply prolongs the use of fossil fuels.

Data sources:

UK to Spend £22 Billion on Carbon Capture Sites as Costs Rise – BNN Bloomberg
The UK’s £22 billion bet on carbon capture will lock in fossil fuels for decades (theconversation.com)

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FURTHER READING: Carbon Dioxide Removal (CDR) and Carbon Capture and Storage (CCS): A Primer

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Google Speaks: Why Nuclear Energy Could be The Big Tech’s Next Bet

October 7, 2024/0 Comments/in Uncategorized /by

Google is considering nuclear energy as a potential solution to meet its ambitious 2030 net-zero emissions goals, according to CEO Sundar Pichai. In a recent interview with Nikkei, Pichai revealed that the company is exploring various clean energy investments. These particularly include traditional renewables like solar and innovative technologies such as small modular nuclear reactors.

This move is part of Google’s strategy to reduce its carbon footprint while addressing the growing energy demands of its expanding artificial intelligence (AI) operations.

Google’s Energy Dilemma: AI vs. Carbon Emissions

In 2023, Google’s total greenhouse gas (GHG) emissions rose to 14.3 million tCO2e as seen below. This marks a 13% year-over-year increase and a 48% rise from the 2019 base year. And it has been growing since 2020.

This increase in emissions was mainly driven by higher energy use in data centers and supply chain emissions. As Google expands AI integration, its emissions reduction efforts face greater challenges due to the rising energy demands of AI computing and increased infrastructure investments.

RELEVANT: Google’s Soaring Revenue of $85 Billion Shadowed by Rising Carbon Footprint

The tech giant’s goal is to cut 50% of its combined Scope 1, 2, and 3 emissions by 2030. Pichai acknowledged the challenge posed by data centers and AI, which has significantly increased the company’s energy consumption.

Google’s global network includes over 25 strategically located data centers, selected based on key factors like land availability, infrastructure, local talent, and potential impact. These centers are essential in meeting the growing digital demands of the world, ensuring efficient data processing and storage.

In 2023, Google’s data centers consumed 24 TWh of electricity, making up 7-10% of the global data center electricity usage, estimated between 240-340 TWh. Despite maintaining a 100% renewable energy match, data center energy use grew by 17%.

Additionally, the AI-driven company piloted renewable diesel for backup power in select U.S. and European data centers to reduce emissions. The big tech also plans to scale the initiative globally as renewable diesel becomes more available. This effort aims to lower the carbon footprint of their diesel backup power systems.

Can Google’s 2030 Carbon-Free Dream Stay on Course?

Google aims to power all its data centers with 24/7 carbon-free energy by 2030. The company also targets to replenish 120% of the freshwater it uses and achieve Zero Waste to Landfill across its data center operations by the same year.

These ambitious goals align with the company’s broader sustainability efforts to reduce environmental impact and support a cleaner future. However, Pichai emphasized the challenge of having this goal, saying that:

“It was a very ambitious target, and we are still going to be working very ambitiously towards it.”

AI’s energy demands are immense. A single ChatGPT inquiry consumes nearly 10x the energy of a typical Google search, and generating images requires over 60x more energy than text.

To meet these growing needs, some tech companies are turning to nuclear power. This shift reflects Big Tech’s challenge of balancing energy consumption with prior commitments to reduce emissions and tackle climate change.

AI data centers are expected to demand even more electricity in the coming years, further complicating Google’s net-zero goals.

According to the Electric Power Research Institute, data centers could consume over 9% of the nation’s electricity by 2030—more than double current levels. This growing demand has made it critical for tech companies like Google to explore alternative energy sources like nuclear power.

Why Small Nuclear Reactors Might Be Big Tech’s Next Bet

While Pichai did not specify when or where Google would begin using nuclear energy, the tech giant is following a path already taken by other major companies.

Earlier this year, Amazon announced a deal with Talen Energy to use power from the Susquehanna nuclear plant in Pennsylvania. This nuclear facility is capable of generating 960 megawatts of power—enough to supply about 1 million homes.

Similarly, Microsoft is working with Constellation Energy to restart the Three Mile Island nuclear plant, a site known for the worst nuclear accident in U.S. history. Constellation is seeking $1.6 billion in federal funding to reopen the plant by 2028, pending approval from the Nuclear Regulatory Commission.

Nuclear power presents a viable solution for providing reliable, continuous baseload power, traditionally dependent on fossil fuels. As the tech sector shifts towards carbon neutrality or net zero, onsite nuclear energy becomes an ideal choice for data centers, efficiently and sustainably meeting their growing energy needs.

According to S&P Global Commodity Insights, the best nuclear plants that could power data centers include:

Echoing the other tech company’s nuclear power sentiment, Pichai noted:

“We are now looking at additional investments, be it solar, and evaluating technologies like small modular nuclear reactors, etc.”

The tech giant aims to operate on 24/7 carbon-free energy (CFE) by 2030, covering every hour and grid where it functions. The strategy focuses on three initiatives: purchasing carbon-free energy, advancing new and existing technologies, and transforming the energy system through policy changes, partnerships, and advocacy. This approach will help Google slash its Scope 2 emissions, which it controls directly.

As energy demand continues to outpace renewable energy production, nuclear power is increasingly being viewed as a viable option for tech companies aiming to balance sustainability with the operational needs of their AI-driven data centers. Google’s move toward nuclear energy could significantly shift the tech industry’s approach to clean energy solutions.

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Solar Showdown: The U.S. Imposes First Penalties on Southeast Asian Imports

October 4, 2024/0 Comments/in Uncategorized /by

The U.S. Department of Commerce (DOC) has announced preliminary countervailing duties on solar cells imported from Cambodia, Malaysia, Thailand, and Vietnam. The move is part of an ongoing investigation targeting foreign producers believed to be receiving unfair subsidies. This marks a significant development in a trade case that could reshape the solar industry in the U.S.

Southeast Asia Powered the U.S. Solar Imports in Q1 2024

According to S&P Global Market Intelligence, U.S. solar panel imports remained strong in Q1 2024, nearly matching the previous quarter’s record of 15 GW and rising 13.8% from a year ago. Southeast Asian countries — Vietnam, Thailand, Malaysia, and Cambodia — supplied 13 GW, or 87.5%, of the total 14.8 GW of imports in the first quarter.

As imports from these countries increased by 3%, future levels remain uncertain due to a U.S. investigation into alleged illegal imports. This probe, aimed at companies primarily headquartered in China, could result in retroactive tariffs, which might increase challenges for the U.S. solar industry. Analysts predict a rush of imports before any duties are enforced.

U.S. manufacturers like First Solar and Qcells are expanding domestic production but warn that Chinese trade practices could harm the industry. Factories in Vietnam led U.S. solar imports with 36.8% of the total, followed by Thailand, Malaysia, and Cambodia.

New Tariffs Target Southeast Asian Solar Imports

Abigail Ross Hopper, president of the Solar Energy Industries Association, expressed concerns over the matter, stating,

“We need effective solutions that support U.S. solar manufacturers and, at the same time, help us deploy clean energy at the scale and speed we need to tackle climate change and serve growing electricity demand here in the U.S. While we recognize the challenging market landscape for domestic manufacturers in the short term, these cases alone will not solve our macro challenges.”

On October 1, 2024, the Commerce Department released initial findings in its investigation into photovoltaic (PV) cells imported from Cambodia, Malaysia, Thailand, and Vietnam. The focus of the probe is on whether these countries are benefiting from subsidies, allowing them to undercut U.S. manufacturers by selling solar products below fair market value.

As per DOC’s press release, the preliminary duties vary significantly across the four countries:

Cambodia: 8.25% to 68.45%
Malaysia: 3.47% to 123.94%
Thailand: 0.14% to 34.52%
Vietnam: 0.81% to 292.61%

These tariffs apply to PV cell imports, whether sold as standalone units or assembled into panels. Some companies, like ISC Cambodia and GEP New Energy in Vietnam, received the highest penalties due to a lack of cooperation with the investigation.

According to Tim Brightbill, the lawyer representing the petitioners, officials also accused the four countries of subsidizing wafers, polysilicon, and other materials. S&P Global reported that on September 20, the U.S. DOC launched an investigation into these new subsidy claims, focusing on PV wafers from all four countries and polysilicon from Cambodia. However, allegations of subsidies on solar glass, silver paste, junction boxes, and aluminum frames are still pending investigation.

Why These Tariffs Matter for the U.S. Solar Industry

The case originated from a petition filed by the American Alliance for Solar Manufacturing Trade Committee. The group, which includes U.S. solar producers like First Solar and Hanwha Qcells USA, is calling for more stringent measures to protect American manufacturing. They argue that Chinese-owned companies operating in Southeast Asia are receiving significant government subsidies, giving them an unfair advantage over U.S. firms.

The tariffs are designed to level the playing field. While the preliminary rates were lower than some analysts expected, the DOC will continue its investigation. The final determinations, expected by spring 2025, could see these duties increase. If U.S. officials find that the domestic solar industry has been harmed, the tariffs will apply retroactively, impacting shipments made 90 days before the preliminary ruling.

MORE DETAILS: Will Record-Breaking Solar Imports Reshape U.S. Industry Amid Tariff Uncertainty?

What Comes Next for Solar Importers and the U.S. Market?

The investigation isn’t over yet. The U.S. is also conducting antidumping duty investigations into solar imports from these four countries. The outcome of both probes could result in higher final duties, depending on the evidence collected.

In the meantime, the U.S. solar market remains in a state of uncertainty. Imports from Vietnam and Thailand have surged in recent months, with the U.S. bringing in 17.4 gigawatts of solar panels in the second quarter of 2024 alone—a record number. Now, those companies face potential retroactive duties, putting projects at risk of increased costs.

Brightbill also expects the final rates to rise, citing past cases where initial findings led to much higher tariffs. He also expressed concerns that many Southeast Asian companies are skilled at hiding the sources of their subsidies, suggesting that the full picture may not emerge until the investigation is complete.

As this case unfolds, solar manufacturers in the U.S. hope the duties will create more room for domestic production. However, some critics warn that the tariffs could increase solar panel costs, potentially slowing the country’s transition to renewable energy.

Brightbill said,

“What happens is these rates will translate into cash deposits collected at the border in the very near future. So, Commerce will instruct Customs and Border Protection to begin collecting cash deposits in these amounts, and that will happen almost immediately. And again, these are preliminary rates. So, if the subsidy rates increase by the time of the final determination, then Commerce will simply tell Customs to expand its collection to the higher rates.”

A final decision is expected next year, with the possibility of more changes on the horizon.

MUST READ: Top Solar Titans and How They Power the Green Energy Transition

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Former C-Quest Capital CEO Accused of $100M Carbon Credit Fraud Scheme

October 4, 2024/0 Comments/in Uncategorized /by

Former C-Quest Capital (CQC) Chief Executive Officer Kenneth Newcombe was indicted on charges of wire fraud and commodities fraud. Federal prosecutors accused him of falsifying emissions-reduction data to secure millions of carbon credits and over $100 million in investments.

Newcombe, who founded C-Quest in 2008, allegedly manipulated data from emission-reduction projects, such as providing cooking stoves in developing countries, to exaggerate their success. Prosecutors claim he covered up lower-than-expected emissions reductions to drive aggressive project growth.

The case, known as US v. Newcombe, 24-cr-567, is being handled in the US District Court for the Southern District of New York (Manhattan).

What C-Quest Capital Does

Washington-based C-Quest focuses on high-impact carbon reduction projects, improving lives in developing nations while combating climate change. CQC generates high-impact carbon credits through three core platforms:

Cleaner cooking,
Sustainable energy, and
Efficient lighting.

Image from the company website

The company distributes clean energy technologies, such as cookstoves, to reduce deforestation and carbon emissions. Their projects span over 20 countries and have improved the lives of more than 41.5 million people, aiming to reduce 1 billion tonnes of CO₂ emissions by 2030.

Their initiatives address sustainable development goals and are verified by leading standards. C-Quest has been recognized for excellence in energy efficiency and public health projects.

The carbon project developer created the “Transformation Carbon” projects. Each project complies with established carbon offset standards and undergoes strict third-party audits to ensure the credits are genuine, measurable, and impactful.

Yet, the alleged fraud scheme against CQC’s CEO shakes up the company’s results and achievements.

False Offsets: Emissions Data Manipulation Scandal

Kenneth Newcombe played a pivotal role in advancing carbon trading during his tenure at the World Bank. In 1994, he spearheaded the Bank’s participation in the Forest Market Transformation Initiative, a coalition involving conservation NGOs, forest industry corporations, researchers, and financiers.

This initiative led to the establishment of Forest Trends, a Washington, D.C.-based NGO promoting carbon trading, with CEO Michael Jenkins also having ties to the World Bank. Ecosystem Marketplace, an online publication advocating for carbon trading, emerged from Forest Trends.

In 2006, Newcombe transitioned from the World Bank to Climate Change Capital, the largest private sector carbon fund globally. He subsequently led the carbon desk at Goldman Sachs for a year before founding his own company, C-Quest Capital.

Newcombe served on Verra’s, a leading issuer of carbon credits, board from 2007 until December 2023. However, in February 2024, at the age of 76, he announced his decision to step down as CEO of C-Quest Capital, stating that he was among several senior executives and employees who were “terminated.”

Newcombe now faces up to 20 years in prison if convicted of the most serious charges. Prosecutors allege that Newcombe, along with C-Quest employees, manipulated data to present certain projects as more successful than they were.

One of the key accusations relates to the carbon offsets C-Quest earned by implementing these projects. These carbon offsets are then sold to companies looking to offset their emissions. One carbon offset represents one tonne of emissions avoided or removed.

The accusations come as a significant blow to the carbon offset development industry, where C-Quest and Newcombe had been prominent players. The investors allegedly deceived by Newcombe remain unidentified. C-Quest’s backers, according to its website, include Macquarie Group and GenZero, a unit of Temasek Holdings.

A spokesperson for Newcombe, who is battling cancer at 77, denied the allegations, stating that Newcombe believes the charges are false. The statement also expressed Newcombe’s confidence that should he live to see a jury trial, his name would be cleared.

RELEVANT: Whistleblower Alert: Carbon Markets Tipsters Wanted By CFTC

Federal prosecutors also charged C-Quest’s former head of carbon and sustainability accounting, Tridip Goswami, alongside Newcombe. Goswami, who is in India, was not immediately available for comment. However, former Chief Operating Officer Jason Steele has already pleaded guilty and agreed to cooperate with the authorities.

C-Quest itself was not charged, as the company self-reported the alleged wrongdoing in July and cooperated with law enforcement. At the time, Verra suspended C-Quest’s projects while reviewing the matter. Prosecutors noted that C-Quest’s proactive reporting and cooperation played a significant role in sparing the company from criminal charges.

First Fraud Case Shakes Trust in Voluntary Carbon Credits

In a separate but related action, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Newcombe, amplifying the legal troubles faced by the former CEO.

The Commission accused him of providing misleading information to carbon credit registries and 3rd-party reviewers to secure more credits than the company was entitled to.

The CFTC is seeking penalties, disgorgement of profits, and a permanent trading ban. Additionally, the CFTC issued orders against CQC Impact Investors and its former Chief Operating Officer Jason Steele.

These are the first actions for fraud in the voluntary carbon credit market, marking a pivotal moment for market integrity. CQC was found guilty of submitting false information to obtain millions of carbon credits between 2019 and 2023. These credits involved projects aimed at reducing carbon emissions in regions like Africa, Asia, and Central America.

CQC cooperated with the CFTC’s investigation, resulting in a $1 million penalty, but the penalty was reduced due to the company’s efforts to address misconduct. CQC admitted its wrongdoing and has agreed to retire or cancel carbon credits in response to its fraudulent activities. This cooperation, alongside the company’s remediation steps—such as terminating key personnel involved in the scheme—helped reduce its penalty.

Newcombe’s accusation raises concerns about integrity in the voluntary carbon market. This pivotal carbon credit fraud underscores the importance of transparency and strict enforcement.

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Tata’s $11 Billion Leap: India’s First Semiconductor Fab in Partnership with Taiwan’s PSMC

October 4, 2024/0 Comments/in Uncategorized /by

Tata Electronics, a subsidiary of Tata Sons Pvt. Ltd., is setting a new standard in India’s tech landscape with a massive $11 billion investment. This ambitious move will establish the country’s first semiconductor fabrication plant in Dholera, Gujarat, in partnership with Taiwan-based semiconductor company Powerchip Semiconductor Manufacturing Corporation (PSMC). The agreement is a crucial step toward creating a robust semiconductor ecosystem in India, positioning the nation as a rising player in the global chip market.

Unlocking Tata’s Massive Semiconductor Production Plan

Tata’s investment of INR 91,000 crores (~US$11 billion) marks a pivotal moment in India’s industrial development. The new semiconductor fab in Dholera will have the capacity to manufacture up to 50,000 wafers monthly. It will incorporate advanced automation technologies powered by artificial intelligence (AI), machine learning, and data analytics to maximize efficiency.

N Chandrasekaran, Chairman of Tata Sons, stated,

“We are pleased to partner with PSMC, whose technology and expertise will significantly accelerate our roadmap to pioneer semiconductor manufacturing in India. This collaboration is a key milestone. I am confident that our comprehensive technology partnership with PSMC will pave the way for innovation, drive growth, and strengthen the global semiconductor supply chain. It will position us to play a key role in the growing semiconductor market to serve global customers.”

Notably, PSMC will contribute to design expertise, construction, and technology transfer. This collaboration ensures that India will soon be home to a cutting-edge semiconductor facility catering to the growing demands of AI, automotive, wireless communication, and computing. Additionally, the chips manufactured at this fab will support essential applications, including power management, display drivers, microcontrollers, and high-performance computing.

MUST READ: A Bold Plan: Tata to Transform Green Steel with Nuclear Power

Building an Ecosystem, Not Just a Fab

Tata’s partnership with PSMC is more than just building a factory; it’s about creating a complete semiconductor ecosystem. This collaboration will bring advanced technology, skills, and talent to India, strengthening the country’s position in the global semiconductor market.

The Indian government approved Tata’s plans, recognizing the strategic importance of building domestic semiconductor manufacturing capabilities. The plant will not only meet India’s chip demand but also serve international customers, pushing the nation to become a trusted player in the industry.

Furthermore, Tata’s bold vision aligns with the government’s “Make in India, For the World” initiative. The Dholera fab can potentially generate over 20,000 jobs, thereby directly boosting India’s tech and manufacturing sectors. With plans for more fabs, Tata aims to create over 100,000 skilled jobs in the future, indicating the significant impact of this project.

PSMC Pioneering Innovation in Semiconductor Manufacturing

PSMC, the seventh-largest pure-play foundry globally, operates six fabs in Taiwan and produces over 2.1 million wafers annually. Founded in 1994, PSMC successfully transitioned from DRAM production to advanced memory and logic chips, showcasing its adaptability in the semiconductor industry.

In 2023, the company reported total greenhouse gas emissions of 589,995 metric tons of CO2e from Scope 1 and 2, marking a 12.16% decrease from 2022. The primary emission hotspots in Scope 1 and 2 were fluorine-containing gases and purchased electricity, accounting for 94.71% of total emissions.

source: PSMC

In terms of Scope 3, PSMC reported 171,863 metric tons of CO2e, a 19.57% decrease from 2022. Major contributors in Scope 3 included fuel and energy-related activities and purchased goods and services. Overall, PSMC aims to strengthen collaborations with its value chain partners to enhance climate strategies and build a sustainable, low-carbon future.

Dr Frank Huang, Chairman of Powerchip Group and CEO of PSMC, said,

“We are excited to collaborate with Tata Electronics on this pioneering initiative to establish India’s first semiconductor Fab in Gujarat. It reflects our commitment to providing cutting-edge technology and expertise, helping Tata Electronics create a state-of-the-art facility that will catalyze India’s semiconductor landscape. This partnership represents a win-win situation, as it positions PSMC and the Taiwanese ecosystem to gain a significant first-mover advantage in the rapidly expanding Indian market while helping India achieve self-reliance in semiconductor manufacturing. I strongly believe that our partnership will be foundational to the India–Taiwan collaboration in semiconductors and will inspire more commercial and strategic tie-ups between the two sides.”

Strategic Alliances: Tata Electronics, Tata Motors, and ADI Unite for Semiconductor Innovation

Tata Electronics has also been actively forging partnerships to strengthen India’s semiconductor capabilities. A Memorandum of Understanding (MoU) was recently signed between Tata Electronics, Tata Motors, Tejas Networks, and America-based Analog Devices (ADI). This collaboration aims to explore semiconductor manufacturing opportunities within India, particularly for EVs and network infrastructure.

ADI’s semiconductor products are expected to integrate across various Tata Group applications, enhancing India’s capabilities in EVs, data networks, and more. The partnership will further accelerate India’s journey to become self-reliant in semiconductor production and a key player in the global supply chain.

Vincent Roche, CEO and Chairman of ADI emphasized the significance of this collaboration, highlighting the potential to combine ADI’s semiconductor expertise with Tata Group’s vision to develop cutting-edge technologies across industries, from EVs to next-generation network infrastructure.

N Chandrasekaran once again highlighted the importance of this investment, noting that the development of a prosperous semiconductor industry will not only serve India’s growing tech demand but also support global customers.

Thus, India’s first semiconductor fab represents a pivotal moment in enhancing the country’s industrial capabilities. This initiative further reduces reliance on imports. In conclusion, Tata Group’s substantial investments and strategic partnerships, especially with companies like PSMC and ADI, are driving India’s emergence as a key player in the global semiconductor landscape.

READ MORE: India and UAE Sign Major Agreements with Focus on LNG and Nuclear •

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2024 US Election and The Fate of $1.2 Trillion Climate and Clean Energy Policy

October 4, 2024/0 Comments/in Uncategorized /by

The upcoming 2024 US election will have significant implications for the country’s climate and energy policies. While the federal government’s stance on clean energy might see changes depending on who takes office, state-level elections could also influence how much progress is made toward the country’s climate goals.

As both Democrats and Republicans gear up for the election, their different approaches to clean energy and climate initiatives highlight how the nation’s renewable energy future could unfold.

Federal Climate Policy: The Role of the Inflation Reduction Act (IRA)

President Joe Biden’s administration made a significant impact on US climate policy by introducing the Inflation Reduction Act (IRA). It is a $1.2 trillion law aimed at bolstering clean energy and reducing carbon emissions. The future of this policy could vary significantly depending on the results of the presidential election in November 2024.

If Vice President Kamala Harris takes the White House, experts predict a continuation of the Biden administration’s focus on implementing and defending the IRA. This would include further efforts to:

promote clean energy incentives,
support infrastructure projects, and
ensure that businesses and communities benefit from the law’s financial provisions.

However, if Donald Trump wins the presidency, the IRA could face significant challenges. A Trump-led administration might attempt to reduce or eliminate some of the IRA’s key climate provisions. It may potentially reallocate funds to other priorities, such as extending Trump-era tax cuts.

However, experts believe a full repeal of the IRA is highly unlikely, even if Republicans gain control of both the House and Senate. The GOP may instead focus on modifying parts of the IRA, such as the $7,500 electric vehicle tax credit, which has been a target for criticism by Republican lawmakers.

Experts predict that, regardless of who wins the presidency, there will be efforts to address critical issues such as mineral supply chains. These are essential for the production of clean energy technologies like batteries and electric vehicles.

A narrowly divided Congress, coupled with slim majorities, would make it difficult for either party to implement sweeping changes to energy policy. Instead, smaller legislative actions, such as incentives for critical mineral production or investments in infrastructure for clean energy, are more likely to gain bipartisan support.

What a Harris Administration Could Mean for Clean Energy

If Kamala Harris wins the presidency, her administration will likely continue Biden’s focus on implementing the IRA’s provisions while addressing broader fiscal issues such as the national debt and tax policy. In this scenario, there would be a strong emphasis on capital formation, community engagement, and workforce development in clean energy sectors.

The Department of Energy (DOE), which has transitioned from a primarily research-focused agency to one responsible for deploying clean energy technologies, would play a critical role in Harris’ energy policy.

However, a Harris administration would likely face challenges in advancing new energy legislation, even if the Democrats secure slim majorities in Congress. As Mary Anne Sullivan, senior regulatory counsel at Hogan Lovells, suggests, sweeping new climate policies are unlikely to be Harris’ top priority. Instead, Democrats would likely concentrate on defending and optimizing the IRA rather than pursuing significant new initiatives.

Trump Administration’s Potential Approach to Energy Policy

If Donald Trump returns to the White House, his administration would likely target the IRA for modifications. This is especially true in the case of provisions related to clean energy tax incentives and electric vehicles.

However, wholesale repeal of the law remains improbable due to political and economic constraints. Republican lawmakers have already expressed caution about dismantling the IRA too aggressively, given the law’s role in spurring private sector investment in energy projects.

Additionally, a second Trump administration could adopt a more aggressive stance on mineral extraction, particularly for resources critical to clean energy technologies like lithium, cobalt, and rare earth elements. This focus on domestic resource extraction aligns with the GOP’s broader strategy to boost energy independence and reduce reliance on foreign minerals.

A survey by Climate Power and Data for Progress shows Vice President Kamala Harris leading former President Donald Trump on climate and energy issues. This difference is especially significant among young voters, who are likely to be pivotal in the upcoming presidential election, highlighting the candidates’ contrasting approaches to these key issues.

SEE MORE: Kamala Harris Surges Ahead of Trump on Climate and Energy Policies, Survey Shows

State-Level Elections: A Key Driver for Clean Energy Progress

While much attention is focused on the federal election, state-level elections will play an equally crucial role in determining the trajectory of US climate policy. The 2024 election is expected to be one of the largest in US history for state legislative races. It will have over 6,000 seats up for grabs.

Many of these states have renewable portfolio standards (RPS) or net-zero emission goals, which are often closely tied to which party controls the state legislature and governorship.

States with Democratic trifectas—where the party controls both legislative chambers and the governorship—are more likely to advance clean energy initiatives. These include raising renewable energy targets and passing new climate legislation.

However, states controlled by Republican trifectas tend to leave decisions about energy generation to utility companies and market forces, often leading to slower progress on clean energy goals.

Key States to Watch

Several states are expected to see potential shifts in political control, which could significantly impact their clean energy policies. These include New Hampshire, North Carolina, Vermont, and Wisconsin.

New Hampshire’s Republican-controlled legislature has slowed clean energy development, but a political shift could push for stronger renewable targets. In North Carolina, the governor’s race could impact the state’s 2050 carbon-neutral goal. Vermont’s 100% RPS by 2035 might face challenges if its Democratic supermajority weakens, while Wisconsin’s redistricting could reduce Republican dominance over energy policies.

A Pivotal Moment for US Climate Policy

Regardless of the election outcome, the transition to clean energy is likely to continue, driven by market forces, private sector investments, and bipartisan support for critical mineral production. However, the pace and scale of that transition will be heavily influenced by the results of federal and state elections. Thus, this election will be a pivotal moment for US climate policy.

READ FURTHER: How the 2024 Election Will Shape the Future of Biden-Era Climate and Energy Policies

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Microsoft and ESB Launch Groundbreaking Green Hydrogen Pilot to Decarbonize Dublin Data Centers

October 3, 2024/in Uncategorized /by

Green hydrogen is emerging as a key player in the clean energy transition. With this thought, Microsoft and Irish energy company ESB have joined forces to launch a groundbreaking pilot project that could reshape the way data centers are powered. To decarbonize its operations, the tech giant will use green hydrogen (H2) fuel cells to generate clean electricity at its Dublin campus.

Microsoft Switches to Green Hydrogen to Tackle Scope 3 Emissions

Microsoft’s move to adopt green hydrogen aligns with its broader sustainability goals. In 2020, the tech giant committed to becoming carbon-negative, water-positive, and zero-waste by 2030. This latest project not only supports that vision but also demonstrates how hydrogen technology can play a critical role in decarbonizing sectors like data centers, which are significant energy consumers.

Lavinia Morris, General Manager, of Microsoft’s EMEA Data Centre Operations, remarked,

“This pilot project is another important step in our journey to transition to carbon-free electricity supply for our data centers, buildings, and campuses around the world. As we look to advance a more sustainable future, we hope to build on the success of this pilot project and continue to find innovative ways to decarbonize our operations.”

However, recent reports reveal that Microsoft’s Scope 3 emissions in 2023 were 30% higher than in 2020. The rise in emissions is largely driven by the expansion of data centers to meet the growing demand for AI computing power. Consequently, switching to blue hydrogen is one way to tackle the Scope 3 emissions.

Source: Microsoft 2024 sustainability report

This pilot project also adheres to the ‘Principles for Sustainable Data Centre Development’ outlined by the Irish government. By ensuring efficient use of the electricity grid and promoting the use of renewable energy, Microsoft is contributing to the country’s sustainability goals.

ESB’s Innovative Hydrogen Fuel Cells: Zero Emissions, Maximum Impact

Hydrogen is emerging as a vital component of the clean energy transition. It’s especially valuable for sectors where renewable solutions like wind and solar are less practical. ESB’s hydrogen fuel cells can potentially replace diesel generators and offer a carbon-free alternative that can power critical infrastructure without any carbon emissions.

Microsoft’s press release explains that the pilot project will run for eight weeks. Significantly it is the first time that hydrogen fuel cells will be used to provide electricity to Microsoft’s data center in Europe. These zero-emission fuel cells, designed by ESB, will deliver up to 250 kW of power to Microsoft’s data center and administration building in Dublin.

The key feature of hydrogen fuel cells is their ability to convert stored green hydrogen into electricity. The only byproduct? Pure water. Unlike traditional diesel generators, these cells produce no carbon emissions or harmful air pollutants, such as sulfur dioxide (SO2), nitrogen oxides (NOx), or particulate matter. This makes them an ideal solution for reducing the environmental and health impacts often associated with backup power systems.

Eoin Doherty, Vice President, EMEA Regional Leader, Microsoft Cloud Operations + Innovation, said,

“The green hydrogen project we’re launching with ESB is a pioneering first for Microsoft in Europe, demonstrating how zero-emissions hydrogen can be harnessed to power our digital lives. If scaled successfully, it could provide new ways of advancing sustainability in our sector and beyond.”

Additionally, Jim Dollard, ESB Executive Director, Generation and Trading, commented,

“ESB believes green hydrogen will play an important role in the net zero energy system of the future. We’re delighted to be working with Microsoft on this innovative pilot project that will showcase the potential for green hydrogen as part of zero-emission electricity generation for data centers.”

Notably, the Dublin pilot is just the start of a broader shift to hydrogen power across Europe. ESB aims to expand hydrogen fuel cell projects in 2024 and 2025, showcasing its versatility in various energy applications.

Green hydrogen capacity targets and consumption potentials in selected countries in the EU in 2030

Source: Statista

Microsoft’s collaboration with ESB highlights the role hydrogen can play in reshaping energy production and consumption. With growing sectors like AI and cloud computing, the demand for cleaner power is more urgent than ever. By adopting hydrogen fuel cells, Microsoft is demonstrating how innovative solutions can help meet these challenges and reduce emissions.

Source: Microsoft announces pioneering green hydrogen pilot project with ESB

FURTHER READING: Shell Powers Europe With A Mega 100MW Green Hydrogen Electrolyzer

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Sweden’s 100 GW Offshore Wind Power Ambition: Unlocking a Renewable Energy Powerhouse

October 3, 2024/in Uncategorized /by

Sweden, a northern European nation with coastlines along the North and Baltic Seas, is positioned to become a key player in offshore wind energy. The country prioritizes sourcing energy from renewable resources and aims to become a net-zero carbon economy by 2045. Its power sector targets 100% renewable electricity production by 2040.

Currently, Sweden’s electricity supply is largely generated by hydro and nuclear power, with wind energy playing an increasingly significant role in its energy mix. However, despite substantial offshore wind potential, the Swedish market is still in its infancy, with numerous projects awaiting permits.

As the country’s offshore wind industry begins to take shape, developers and policymakers strive to address the challenges of spatial planning and the permitting process. These steps are necessary to unlock Sweden’s full offshore wind potential and promote growth in a sustainable and orderly manner.

Riding the Wind: Sweden’s Offshore Wind Sector Poised for Growth

Sweden’s offshore wind potential is immense. The country installed nearly 2 GW of onshore wind power in 2023. Over the past 3 years, it has added almost 6.5 GW, second only to Germany in new installations.

Chart from WindEurope.org

During this period, Sweden’s total onshore wind power capacity increased by 65%, reaching 16.4 GW, ranking 5th in Europe and leading in wind power per capita.

Moreover, wind energy contributed 20.9% of the nation’s electricity generation in 2023, a significant increase from just 0.3% in 2000. This rapid growth highlights Sweden’s commitment to expanding renewable energy sources as part of its broader decarbonization goals.

Wind power capacity in the country stands at 12.8 GW in 2023. Growth has been consistent, peaking in 2021 with an annual addition of 2.7 GW. By 2024, the total installed wind power is expected to surpass 17 GW, with yearly production potentially reaching nearly 50 TWh in a normal year. This upward trend signals the continued expansion of renewable energy in the region.

Sweden Short-Term Wind Capacity Forecast

Chart from the Swedish Wind Energy Association

According to the Swedish Wind Energy Association (SWEA), over 100 GW of offshore wind projects are currently in various stages of development. Of this capacity, around 2 GW have already received permits, 52 GW are in the permitting process, and another 46 GW are under consultation. Most of these projects are in the southern part of Sweden where the demand for renewable energy is particularly high.

Despite the promising numbers, the lack of a coherent planning system is causing delays and raising concerns among developers. One key question is how to handle ongoing projects if the system changes.

A Unique Open-Door Planning System

Unlike its Nordic neighbors, Sweden employs an open-door planning system that allows developers to propose projects and push them through the permitting process independently. This system has given developers the flexibility to move forward quickly.

However, the lack of a structured allocation system has led to several complications. Many proposed projects overlap geographically, creating confusion and inefficiencies. To address this, Sweden’s climate ministry commissioned a report in March 2023 to develop recommendations for a more structured spatial planning system.

The report, expected in November, will propose new strategies to streamline the permitting process and provide greater clarity for developers.

Magnus Hermansson, a senior judge at the Land and Environment Court in Nacka, Sweden, was responsible for preparing these recommendations. His team has explored best practices from neighboring European countries such as Denmark, Finland, Germany, and the UK—countries with well-established offshore wind markets and government-managed seabed allocation systems.

Their approach seeks to balance the demands of various stakeholders, including defense, fishing industries, and local municipalities.

Many developers, like Swedish firm OX2 AB, advocate for a system that preserves the progress already made while introducing a more structured approach moving forward.

The Need for Financial Incentives

Fixing Sweden’s planning and seabed allocation systems is only part of the equation. The country also needs to address the financial viability of offshore wind investments.

In many European countries, governments provide revenue stabilization mechanisms, such as contracts for differences, or cover the cost of grid connections. These measures are critical for encouraging investment.

Sweden’s lack of similar incentives has already had an impact. In September 2023, Vattenfall shelved its plans for the Kriegers Flak offshore wind farm due to inadequate funding for grid connections. The Swedish government has not yet introduced any plans to offer such financial support for offshore wind projects. This issue is compounded by the Swedish government’s focus on nuclear energy.

In 2023, the government proposed building 10 new nuclear reactors and introduced a financing model that involves state loans and a minimum return on equity for investors. Critics argue that this heavy focus on nuclear energy could reduce the need for offshore wind and divert financial resources away from renewable projects.

Experts warned that excessive investment in nuclear energy could drive up electricity prices and make Sweden less competitive in energy-intensive industries.

Onshore Wind Development: A Step Forward

While the future of offshore wind in Sweden remains uncertain, the government is taking steps to encourage onshore wind development. A policy introduced in September 2023 allocates over 1 billion kronor (over US$97 billion) to local municipalities that accept new onshore wind projects.

The incentive could accelerate the approval process for onshore wind farms and could serve as a model for similar support for offshore wind in the future.

According to renewable energy expert Alon Carmel from PA Consulting, extending similar incentives to offshore wind would be a positive development and help restore investor confidence in the sector.

As Sweden looks to double its power consumption by 2045 through clean energy projects, balancing investments between nuclear and wind energy will be crucial for its net-zero ambition.

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