Oct 28, 2014

3 Things You Need to Know about the Wind Industry Right Now

Energy Policy
3 min
Wind always seems to be playing second fiddle to solar, but the second largest renewable energy source in the world is in a very exciting time. Here...

Wind always seems to be playing second fiddle to solar, but the second largest renewable energy source in the world is in a very exciting time. Here are three things you need to know about the industry right now.

20 percent of the U.S. could be wind powered by 2030.

The American Wind Energy Association’s CEO Tom Kiernan recently discussed the future of wind in the U.S. and he painted a very bright picture, especially with 14,000 MW of wind under construction.

“The 14,000 MW is more power than ever before under construction in the U.S,” he said. “What’s more, we are ahead of schedule to reach 20% wind energy by 2030. Onshore wind is already driving job creation and cutting carbon, so there is significant momentum onshore.”

There’s also quite a bit of momentum in the offshore wind industry, bolstered by projects on the East and West coasts. This is all in addition to strong policy support from the government. Kiernan laid out three ways to keep the industry growing.

“First, we have got to create a more stable policy environment for this industry by getting the ITC extended in this lame duck session and for the long term,” he said. “This on-and-off again thing from Washington has got to end. We need a longer term extension to the ITC. Second, we have to keep working with public and private partners to keep driving down costs. And third, keep getting the message out, informing our political leaders and other partners about the benefits of offshore wind.”

Wind is starting to replace oil and coal.

Both in the U.S. and abroad, wind is starting to take hold in the energy sector and kicking other forms of energy to the curb. In Michigan, wind is looking to replace oil.

“A study conducted for Michigan’s Energy Innovation and Business Council said local investment in renewable energy projects—advanced energy storage, biomass, solar and wind—could support nearly 21,000 jobs in Michigan by 2015, and contribute more than $163 million in local and state tax revenues,” reports the Detroit Free Press.

In China, wind giant Vestas just landed another 50 MW deal in China—a country that’s trying to wean itself off coal. Beyond that, it’s just a smart investment.

“We have a strong commitment to wind energy, and we are looking for a long-term trusted partner who can help us achieve a good return on investment,” Ma Fuqiang, president of Hanas—the organization who ordered the panels—said. “That is why we have been partnering with Vestas for the past five years, and we are glad to continue our great collaboration."

The world could hit 2,000 GW of wind by 2030.

The Global Wind Energy Council (GWEC) and Greenpeace released their 2014 Global Wind Energy Outlook, which has several forecasts for the near future of the wind industry. According to the report, wind could supply up to 17 to 19 percent of global electricity, and create more than 2 million new jobs. It could also reduce CO2 emissions by more than 3 billion tons per year. By 2050, wind power could provide 25 to 30 percent of global electricity supply.

“Wind power has become the least cost option when adding new capacity to the grid in an increasing number of markets, and prices continue to fall,” Steve Sawyer, CEO of GWEC, said. “Given the urgency to cut down CO2 emissions and continued reliance on imported fossil fuels, wind power’s pivotal role in the world’s future energy supply is assured.”

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Jul 29, 2021

Carbon dioxide removal revenues worth £2bn a year by 2030

Dominic Ellis
4 min
Engineered greenhouse gas removals will become "a major new infrastructure sector" in the coming decades says the UK's National Infrastructure Commission

Carbon dioxide removal revenues could reach £2bn a year by 2030 in the UK with costs per megatonne totalling up to £400 million, according to the National Infrastructure Commission

Engineered greenhouse gas removals will become "a major new infrastructure sector" in the coming decades - although costs are uncertain given removal technologies are in their infancy - and revenues could match that of the UK’s water sector by 2050. The Commission’s analysis suggests engineered removals technologies need to have capacity to remove five to ten megatonnes of carbon dioxide no later than 2030, and between 40 and 100 megatonnes by 2050.

The Commission states technologies fit into two categories: extracting carbon dioxide directly out of the air; and bioenergy with carbon capture technology – processing biomass to recapture carbon dioxide absorbed as the fuel grew. In both cases, the captured CO2 is then stored permanently out of the atmosphere, typically under the seabed.

The report sets out how the engineered removal and storage of carbon dioxide offers the most realistic way to mitigate the final slice of emissions expected to remain by the 2040s from sources that don’t currently have a decarbonisation solution, like aviation and agriculture. 

It stresses that the potential of these technologies is “not an excuse to delay necessary action elsewhere” and cannot replace efforts to reduce emissions from sectors like road transport or power, where removals would be a more expensive alternative.  

The critical role these technologies will play in meeting climate targets means government must rapidly kick start the sector so that it becomes viable by the 2030s, according to the report, which was commissioned by government in November 2020. 

Early movement by the UK to develop the expertise and capacity in greenhouse gas removal technologies could create a comparative advantage, with the prospect of other countries needing to procure the knowledge and skills the UK develops.

The Commission recommends that government should support the development of this new sector in the short term with policies that drive delivery of these technologies and create demand through obligations on polluting industries, which will over time enable a competitive market to develop. Robust independent regulation must also be put in place from the start to help build public and investor confidence.

While the burden of these costs could be shared by different parts of industries required to pay for removals or in part shared with government, the report acknowledges that, over the longer term, the aim should be to have polluting sectors pay for removals they need to reach carbon targets.

Polluting industries are likely to pass a proportion of the costs onto consumers. While those with bigger household expenditures will pay more than those on lower incomes, the report underlines that government will need to identify ways of protecting vulnerable consumers and to decide where in relevant industry supply chains the costs should fall.

Chair of the National Infrastructure Commission, Sir John Armitt, said taking steps to clean our air is something we’re going to have to get used to, just as we already manage our wastewater and household refuse. 

"While engineered removals will not be everyone’s favourite device in the toolkit, they are there for the hardest jobs. And in the overall project of mitigating our impact on the planet for the sake of generations to come, we need every tool we can find," he said.

“But to get close to having the sector operating where and when we need it to, the government needs to get ahead of the game now. The adaptive approach to market building we recommend will create the best environment for emerging technologies to develop quickly and show their worth, avoiding the need for government to pick winners. We know from the dramatic fall in the cost of renewables that this approach works and we must apply the lessons learned to this novel, but necessary, technology.” 

The Intergovernmental Panel on Climate Change and International Energy Agency estimate a global capacity for engineered removals of 2,000 to 16,000 megatonnes of carbon dioxide each year by 2050 will be needed in order to meet global reduction targets. 

Yesterday Summit Carbon Solutions received "a strategic investment" from John Deere to advance a major CCUS project (click here). The project will accelerate decarbonisation efforts across the agriculture industry by enabling the production of low carbon ethanol, resulting in the production of more sustainable food, feed, and fuel. Summit Carbon Solutions has partnered with 31 biorefineries across the Midwest United States to capture and permanently sequester their CO2 emissions.  

Cory Reed, President, Agriculture & Turf Division of John Deere, said: "Carbon neutral ethanol would have a positive impact on the environment and bolster the long-term sustainability of the agriculture industry. The work Summit Carbon Solutions is doing will be critical in delivering on these goals."

McKinsey highlights a number of CCUS methods which can drive CO2 to net zero:

  • Today’s leader: Enhanced oil recovery Among CO2 uses by industry, enhanced oil recovery leads the field. It accounts for around 90 percent of all CO2 usage today
  • Cementing in CO2 for the ages New processes could lock up CO2 permanently in concrete, “storing” CO2 in buildings, sidewalks, or anywhere else concrete is used
  • Carbon neutral fuel for jets Technically, CO2 could be used to create virtually any type of fuel. Through a chemical reaction, CO2 captured from industry can be combined with hydrogen to create synthetic gasoline, jet fuel, and diesel
  • Capturing CO2 from ambient air - anywhere Direct air capture (DAC) could push CO2 emissions into negative territory in a big way
  • The biomass-energy cycle: CO2 neutral or even negative Bioenergy with carbon capture and storage relies on nature to remove CO2 from the atmosphere for use elsewhere

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