David Weston

This is a really excellent new article from Professor Dieter Helm. It is appropriately detailed and technical, but worth reading the full version, but if even the conclusions (quoted below) can at the least get wider traction and understanding - if not by the Department for Energy Security and Net Zero, then surely by HM Treasury - then we may not be too late to course correct? In addition to the wider arguments, the article also makes clear that the obvious corollary of electricity prices being set mostly by gas being the highest marginal price, means that wholesale electricity prices will also go down as gas prices go down (which they are doing and supply / demand suggests they will continue to do so), but that continuing blindly driving on the current path of 95% renewables will even mean this benefit is squandered on the altar of ideological policy. "It is hard to conclude other than that the Secretary of State is deluded when he champions the 2030 net zero target as a route to lower costs of energy through ever-cheaper renewables. Rather, it reflects a conclusion seeking a cost measure that confirms it. The correct measure is system costs. The reality is that net zero by 2030 is expensive and that by dashing flat-out towards it, the result will be even higher costs. That points to an even more challenging reality: it is going to be expensive to decarbonise carbon consumption, and it is a delusion to think that having for so long not been paying the cost of the pollution our consumption is causing, by now paying for pollution, it is going to be all win–win. The price is not coming down, as heralded by the Secretary of State. It is going up, with a system requiring twice the generating capacity and much more transmission, lots of batteries and storage, and a great deal of back-up generation to keep the lights on, all to achieve the same amount of electricity. To think otherwise is to commit the broken windows fallacy – that by breaking windows, economic growth is increased. Replacing one set of windows with another is a net cost, and replacing the windows with more glass than was previously needed is a bigger cost still. It is time to be honest about the costs of the net zero target." Keir Starmer Rt Hon Rachel Reeves Claire Coutinho MP Kathryn Porter Simon French https://lnkd.in/dQXYEnPj

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The sun rises in the West. Oddly-named Atome PLC, led by French former banker Olivier Mussat, just signed a 10-year 630 M$ offtake agreement for green hydrogen-based fertilizers with global industry leader Yara, based on a Paraguay-based facility. This project shows the way forward for green hydrogen and is a clear rebuttal to the hydrogen-bashing flock: it is market-driven, does not get government grants or subsidies and has proper project financing in place with multilateral and commercial banks. The Atome model rests on four pillars, which should be emulated elsewhere: - Long-term access to cheap renewable electricity, in this case the unused hydroelectricity quota on the Paraguayan side of the 14-GW Itaipu dam complex; - High-value offtake: while fertilizers is a low-margin, highly competitive industry in many world regions, prices in Paraguay and neighboring Brazil tend to be structurally higher due to fast and sustained demand growth (as crops keep expanding to serve global food markets) and supply shortfalls, met by ever-growing imports (including high-carbon product from Russia...) - No need for new complex transmission infrastructures: the joint location of energy, green hydrogen and fertilizer production reduces the so-called "project-on-project" risk which bedevils many projects - which could be addressed in Europe via a transition based on blending with natural gas pipelines and turbines, allowing a progressive ramp up of volumes; - Backing by strong technical and financial partners. Let us follow Atome! https://lnkd.in/epQJjjbu

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From hydrogen and carbon capture to green steel, the conversation today at BloombergNEF Summit Houston made one thing clear: technology alone isn’t enough. Demand and policy must move with it. Some of the key takeaways: 1) Clean molecules like hydrogen and ammonia show promise, but economics and customer demand will determine adoption, not subsidies alone 2) Carbon capture remains a practical near-term solution for power-hungry sectors like data centers, where green premiums are viable 3) Heavy industry, such as steel and cement, presents enormous opportunity, especially in the U.S., where domestic demand creates a market for low-carbon materials At Mitsubishi Heavy Industries, we draw on more than 140 years of engineering expertise to deliver practical solutions for heavy industries. By integrating hydrogen, CCS, electrification, and efficiency, we can help customers achieve their decarbonization goals. #BNEFSummit #MHIGroup #MissionNetZero #MoveTheWorldForward

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Energy Vault (NYSE: NRGV) Enters Into Exclusive Agreement for $300 million Preferred Equity Investment to Launch “Asset Vault”, Accelerating the Execution of 1.5GW of Global Energy Storage Projects Under the Company’s IPP Build, Own and Operate Strategy. Capital from a leading, multi-billion-dollar infrastructure fund expected to enable over $1.0 Billion in CapEx spending for 1.5 GW of projects under development across the U.S., Australia and Europe. Preferred equity is non-dilutive to common shareholders and includes milestones for equity participation in Energy Vault Holdings NYSE List Co to align shareholder interests. Investment accelerates timeline to generate annual, recurring EBITDA of $100 million+ in the next 3-4 years with the current projects in operation and under active development Project portfolio prioritized with clear monetization strategy supported by long term contracts with bankable off-take agreements and/or attractive merchant markets. As with the first two US projects now in service, Asset Vault will contract the project design, construction, commissioning and service agreements to Energy Vault, thereby leveraging internal capabilities, adding incremental cash flows and liquidity to the parent company. https://lnkd.in/gMY3fzAM

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