Rushad Nanavatty

We have a new paper out on "Estimating the climate impacts of hydrogen emissions in a net-zero US economy". Main takeaway: hydrogen emissions (from leaks, purging, etc.) have a non-zero impact on global warming potential, but in net-zero scenarios those emissions are much smaller than other residual emissions in the system. This work was led by Ansh Nasta Derek Wissmiller Chris Moore Esther Goita at GTI Energy with additional contributions from me Emily Beagle Webber Energy Group and published in IOP Publishing Progress in Energy. Please check it ou! And if this topic is of interest, please check out the 2nd annual HEX@TEX (Hydrogen Emissions eXchange at Texas) conference later this year. #FutureOfEnergy #Hydrogen #HydrogenEmissions #NetZero CC: Walker Department of Mechanical Engineering, The University of Texas at Austin The LBJ School of Public Affairs Cockrell School of Engineering, The University of Texas at Austin https://lnkd.in/g84HuuJC

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Three reports in 24 hours showing: - China's clean tech exports topped $20bn in August. - Wind and solar generation exceeded coal for the first time in the first half of the year. - Global renewables capacity is on track to more than double inside five years. It's still not enough to deliver on global climate goals, but despite hostility from the White House and elsewhere the clean tech boom is still accelerating. It is objectively true this is now one of the fastest industrial revolutions in history, a lot of fossil fuel demand is going to get destroyed, and global energy markets and geopolitics are getting reshaped at a breakneck pace. Beyond mad that lots of supposedly serious people want to deny any of this is happening. https://lnkd.in/em5CTMHT https://lnkd.in/eSSRSYz3 https://lnkd.in/e-8_ca3T

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Who gets left behind when electrification isn't coordinated? Very interesting question highlighted in a recent paper published by Jaime Garibay Rodríguez, Morgan Edwards, Zeyneb Magavi, and Ann Fink. Their work focuses on what happens to natural gas customers when electrification efforts move forward without a plan to manage the legacy costs of the gas system. Their findings show that households that don’t electrify (often because they can’t afford to) could see their gas bills rise by 46% over the next 15 years. These affordability risks are important to include in our public discourse since new gas infrastructure will need to be paid for by a shrinking customer base. #Affordability #EnergyTransition Paper: https://lnkd.in/ehvtp8Mf

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We often get questions about the latest market developments in clean energy, particularly post-OBBBA. So we started a Monthly Market Digest, where we provide Reunion's perspective on the tax credit market, along with highlights from our recent transactions. A summary of August observations are below: 📍 Some buyers have lower tax liability due to the OBBBA, impacting their ability to purchase credits: Several corporate clients are expecting to have lower tax liability in 2025 due to provisions in the OBBBA, including 100% bonus depreciation and domestic research & experimental expensing. On the other hand, taxpayers who were holding off on making purchases due to legislative uncertainty are now actively seeking 2025 credits. 📍Insurance costs have been on the rise: While sellers have been modeling insurance costs between 2 to 3% based on pricing in 2024, we have seen costs increase to a range of 3% to 4.5% or even more. 📍Tax credit sellers have had success selling 2024 vintage credits in 2025: We have regularly seen 2024 credit opportunities emerge in Q1 and Q2 of 2025. Given the relative scarcity of prior year credits, tax credits sellers have been able to quickly find buyers and sell credits at attractive prices. We are finally seeing a slowdown in buyer appetite, given how late it is in 2025. 📍A majority of Reunion’s transactions are coming in under the capped reimbursement amount: Typically, sellers will negotiate a capped reimbursement for the buyer’s third-party costs. In nearly a dozen of Reunion's recently closed transactions, the actual costs have come in less than the negotiated cap. This is largely due to Reunion’s due diligence and execution effort (for example, we provide a comprehensive diligence memo to both parties typically within 10 days of a term sheet being executed) To read the full article, including some details about two recent deals in the $30 to $50M range, follow the link: https://lnkd.in/gRH7ijTi

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Glad to see Evan Coleman of MIT Energy and Climate quoted in this The Wall Street Journal article about automation in the voluntary #carbon market. As he points out, there is a need for more transparency of automation approaches in order to increase confidence in their outcomes. Fortunately, his project with Sherrie Wang on the use of #machinelearning for hyperspectral remote sensing of #soil organic carbon, funded by the MIT Climate & Sustainability Consortium (MCSC), is developing an open data platform that will demonstrate transparency in this field.

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The transition to a climate-neutral future presents a critical question: What happens to our gas grids as fossil gas consumption declines? In my latest article, 'Managed decline: Regulating gas grids when gas ends,' I explore the regulatory disconnect that is holding back climate action and creating a vicious cycle of rising costs for consumers. I also delve into the 'hydrogen illusion' and highlight proactive steps other countries are already taking to manage this decline. The solution is integrated, long-term planning to ensure a just and orderly transition away from fossil gas. My short article draws heavily on the work I have done on this topic over the last few years with Richard Lowes at the Regulatory Assistance Project (RAP), Claudia Kemfert at Leuphana University of Lüneburg and DIW Berlin - German Institute for Economic Research. Megan Anderson at Agora Energiewende, Sibylle Braungardt and Marc Stobbe at Oeko-Institut. Read the full article to learn more about the five-step regulatory plan to deal with the challenge: https://lnkd.in/e9K524UW

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🫥 But what about carbon removal in compliance markets? There are few policy topics I have such a opinionated view on: ☑️ Thoughtful integration of CDR (carbon dioxide removal) in ETS (emissions trading systems) is essential for long-term investment in CDR, ensuring stable demand, and enhancing the bankability of projects. ☑️ There is a significant risk in approaching this incorrectly: a limited range of methodologies and restricted buyer's discretion could impede healthy competition for the most effective CDR solutions. Learning from past shortcomings like the UN CDM is vital to avoid repeating mistakes. ☑️ Successful CDR implementation requires a diverse pricing structure within ETS, allowing for the sale of different CDR credits at different price points to support various technologies simultaneously, fostering innovation and efficiency. If you want a great overview on what it takes to finance and support CDR: Read 'Investment Need & Support Mechanisms for Scaling CDR in Germany and Europe'. Very recommended study by Deutscher Verband für negative Emissionen e.V. (DVNE) and Boston Consulting Group (BCG). While the take away is a bit less opinionated, I had a great discussions with Stefan Schlosser and Dr. Johanna Puetz in the lead up to publication. Thanks for the great piece 🙏🏼 🔗 Full report: https://lnkd.in/ejhsVSHS

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