WHAT’S HAPPENING TODAY: Good afternoon readers, and Happy Tuesday! In today’s edition of Daily on Energy, Callie and Maydeen take a look at oil prices in the Middle East and the new support for nuclear energy from European Union members. Then we dive into Bill Gates‘s thoughts on climate technology, which he describes as entering into a “deployment era.”
We go into detail about a U.S. startup’s plan to build the world’s first lithium sulfur battery gigafactory in Nevada amid U.S.-China tensions in the industry. We also look into Russia’s plan to sue Shell for more than $1 billion in damages. Today’s newsletter also covers the global efforts for carbon capture, England’s lack of funding to address PFAS, California’s new gas price law, and a new tidal energy site.
Lastly, our election countdown takes a look at a new survey that shows voters support of carbon tariffs in the next administration.
Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
OIL PRICES DIVE AS MIDDLE EAST TENSIONS EASE: Israeli officials told the U.S. today that they would not strike Iran’s nuclear or oil sites in a retaliatory attack, driving down oil prices. Just after 2 p.m. ET, international benchmark Brent Crude dropped by 4.35% to $74.09 per barrel. West Texas Intermediate fell by 4.63% hitting $70.41 per barrel.
Some background: Oil prices had been rising since the start of October when Iran launched nearly 200 ballistic missiles into Israel. As fears grew over the conflict escalating, international prices hit just over $80 per barrel. Tuesday’s drop in prices also comes as OPEC+ and the International Energy Agency lowered their forecasts for increases in global oil demand for 2024.
EU BACKS NUCLEAR: Some members of the European Union are reportedly signaling support for nuclear energy for the first time ahead of the United Nations climate change conference next month, illustrating the growing support for the power source.
The details: Several ministers from multiple Eastern European countries and France were expected to publish a paper on Tuesday backing nuclear energy, saying it plays a “pivotal role,” according to a new report from the Financial Times. The countries are expected to call on the EU to ensure that nuclear power is “duly integrated” into new proposals for energy regulation as the member states prepare to travel to Azerbaijan for the COP29 summit.
The public support from the environmental ministers signals a major step toward accepting nuclear power in Europe as many nations in the region have prioritized renewable energy sources, such as solar and wind. However, many are hesitant to push nuclear power to the forefront of energy conversations.
Read more from Callie here.
FROM DEVELOPMENT TO DEPLOYMENT: Billionaire Bill Gates said Tuesday that climate technology is shifting into a new stage as the development of tech that reduces greenhouse gas emissions has thrived in recent years.
The details: Gates’ climate firm Breakthrough Energy released its 2024 State of the Transition report, claiming that climate tech entered its “deployment era” this year. In the last nine years, the firm has invested over $3.5 billion in 110+ companies pursuing climate tech developments.
In 2024, Gates said his firm saw investors and corporations “get off the sidelines” to invest in shrinking their carbon footprint. He pointed to Siemens as an example, which has vowed to decarbonize the whole company by 2030 through a number of strategies, including vacuum-insulated windows.
Key quote: “The next challenge is deployment—scaling these technologies across the economy. This is something large corporations are very good at,” Gates said. “But for the past few decades, they’ve been wary about investing large sums in clean technologies because they’ve viewed them as mostly emissions reducers that help our environment, not as innovations that can help their businesses.”
RIVALING CHINA’S BATTERIES: A U.S. startup has announced plans to build the world’s first lithium sulfur battery gigafactory, as the U.S. looks to get ahead of China in the battery and electric vehicle industry.
The details: Lyten revealed on Tuesday that it plans to build a factory near Reno, Nevada, that will have the capacity to produce up to 10 gigawatts of batteries every year. The factory is expected to start production by 2027, making what is thought to be a top rival to lithium ion batteries. It is expected to be around 1.25 million square feet large, stretching along a 125-acre campus. Lyten said the factory will employ up to 1,000 people at full capacity. Since 2023, the start-up has already started to manufacture key materials and assemble batteries as a semi-automated pilot facility in San Jose, California.
Why does this matter? Unlike lithium ion, Lyten’s lithium sulfur batteries do not require minerals like nickel, cobalt, manganese and graphite, which are heavily mined in China. The start up said it plans to rely on local materials in the U.S. to keep their batteries at a low cost. Lyten has said this development can help the U.S. weaken China’s monopoly on batteries and the EV market, as so much manufacturing relies on mined graphite to power the vehicles.
RUSSIA V. SHELL: Russia is reportedly seeking more than $1 billion in damages from oil and gas giant Shell for abandoning the country.
Some background: Prior to Moscow’s February 2022 invasion of Ukraine, Shell had multiple projects in Russia, including a stake in a liquified natural gas plant on the island of Sakhalin in the Pacific, according to Reuters. The plant is led by state-controlled Gazprom. As Russia faced sanctions from Western nations over the invasion, the nation strengthened its control over the LNG plant. Shell quickly abandoned its ventures in Russia, calling the invasion “a senseless act of military aggression which threatens European security.”
The details: Russian-state media reported Tuesday that Moscow’s General Prosecutor’s office has asked for around $1.09 billion in its suit against Shell, according to Reuters. The country filed a lawsuit against eight units of Shell in Moscow’s Arbitration Court on Oct. 2. Shell Energy Europe Limited and Shell Exploration & Production Services B.V. are among the named defendants. A hearing in the case is set to take place on Dec. 11.
CARBON CAPTURE EXPANDING: Worldwide capacity for carbon capture and storage more than doubled in 2024 compared to last year, a new report from the Global CCS Institute reveals.
The details: The report, released today, details that the global project pipeline for carbon capture and storage now includes 628 projects – a 60% year-over-year increase. In 2023, Global CCS Institute estimated there were only 236 projects in the pipeline. A plurality of these projects (287) are still in development, with only 44 under construction and 50 operational. Per the report, operating capture capacity is on track to double per annum.
The United States has led the way in developing carbon capture and storage projects, increasing its total to 276 – up from 154 in 2023. The report attributes the growth to over $2.2 billion earmarked for carbon management through the 2021 Bipartisan Infrastructure Law.
Key quote: “Thanks in part to these and other global collaborations, carbon management has steadily progressed, and we are now witnessing an exponential growth in project development activities catalyzed by strong government policies and industry actions built on decades of shared learnings,” Global CCS Institute CEO Jarad Daniels said.
ENGLAND LACKS THE BUDGET TO ADDRESS PFAS SITES: In England, the number of sites containing per- and polyfluoroalkyl substances (PFAS), also known as the “forever chemical,” is quickly rising but its Environment Agency (EA) says it does not have the funding to address the issue, the Guardian reports.
There could be more than 10,000 locations in England contaminated with PFAS, but the EA has only taken action on four sites, according to a report compiled for the agency.
PFAS is a substance that has been linked to a range of negative health effects and diseases, such as cancer. The chemical has been found in many different consumer goods such as cleaning products, water-resistant fabrics, non-stick cookware, and firefighting foam, and it does not easily break down in the environment.
As seen by the Guardian, emails between the EA and the Department for Environment, Food and Rural Affairs (Defra), showed the agency’s concerns about not being able to afford to address four PFAS sites.
In May, Defra wrote in an email stating there are “funding pressures this year to take on all the inspection work we have been asked to do” relating to “PFAS and the two new potential site inspection requests we have accepted for AGC and Duxford.”
“These are the first requests we have had for many years and the very high cost of analysing for PFAS is beginning to get frightening,” the agency added.
ICYMI – NEWSOM SIGNS BILL IMPOSING NEW REQUIREMENTS ON REFINERIES: California Gov. Gavin Newsom on Monday signed into law a bill requiring oil refineries to maintain a minimum amount of fuel to avoid supply shortages, which state lawmakers have linked to high gas prices.
Big oil has been “raking in unprecedented profits because they can,” Newsom said Monday at a press conference. “Big oil does not have your back, period full stop.”
The legislation, ABX2-1, would authorize the California Energy Commission to develop and impose requirements for refiners operating in the state to maintain a minimum amount of fuel, feedstocks, and blending components. The bill stated it would also authorize the commission to require refiners to have a resupply plan for future maintenance outages.
“DRAGON FARM” UNDER CONSTRUCTION TO HARNESS TIDAL ENERGY: Minesto, a marine energy technology company, announced yesterday it has begun the buildout of a new tidal energy site in the North Atlantic.
Tidal energy uses the ocean waves to generate clean electricity. Minesto has developed “Dragon Kites,” modular power plants that are submerged into the ocean and draw energy from underwater currents and ocean tides to create electricity. Located off the Faroe Islands, the first phase of the Hestfjord Dragon Farm project will have kites to help generate a total capacity of 10 megawatts.
“Scaling-up of the technology by initiating the Hestfjord Dragon Farm build-out is a major milestone for Minesto in providing commercial-scale tidal energy,” CEO Martin Edlund said in a press release.
ELECTION COUNTDOWN: A new survey shows that voters across all parties are in support of the next administration pushing a carbon border adjustment mechanism (CBAM), similar to tariffs set to take effect in the European Union in 2026.
While Vice President Kamala Harris and former president Donald Trump have put forth clashing agendas for tackling climate change, one thing their supporters agree on is carbon tariffs.
Polling conducted by the Rainey Center found that 69% of voters support a CBAM on imported steel, cement, aluminum, and other industrial products from countries with weaker environmental protections. Support was seen across parties with 64% of Democrats, 70% of Independents, and 75% of Republicans backing a CBAM. A majority of voters (67%) also said they would support using the money raised from a CBAM to pay for tax cuts. Around 63% of Democrats, 64% of Independents, and 73% of Republicans agreed.
The survey was conducted among 1,097 likely voters online between Sept. 15 and Sept. 16 and has a margin of error of plus or minus 3.4 percentage points.
There are 20 days until Election Day.
RUNDOWN
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