Report reveals potential losses due to carbon pricing risk
Trucost, a subsidiary of S&P Dow Jones Indices, has released findings that’s suggest carbon pricing risk could lead to company financial losses.
The report, titled ‘Carbon Pricing: Your Blind Spots on Risk and Opportunity’, discusses the future once new policies and taxes are introduced due to the Paris Agreement.
As well as carbon footprinting, the report highlights carbon efficiency, location and operations, business model, and market conditions of the sector as the main factors.
The company claims that the average profit risk for the electric utilities sector coud reach 90% by 2030, and surpass 150% by 2050.
Likewise, in the chemicals sector, Trucost predict that 30% of the average profit could be at risk by 2030, and could be increased to 60% by 2050.
The automobile manufacturing industry could see 15% profit at risk by in the next 12 years, and could double to 30% in the following 20 years.
Trucost also argue that the variation in risk exposure will grow over time, with firm’s profit at risk from negligible to 600% in utilities, to 300% in the chemicals industry, and between 7% and 82% in the automobile manufacturing sector.
In regards to the risk of carbon pricing, it will vary depending on how much a company emits and where the emissions occur.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.