Meltdown threat forces re-examination of renewables

By Reuters


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The threat of a meltdown at nuclear reactors in Japan has prompted scrutiny of renewable power options by many nations as growing public unease pushes top consumers to either go slow or halt any immediate expansion in nuclear power.

Japan, one of the world's top nuclear power generators and a key advocate of the technology, plans a review of policy to tap sources such as solar. China too may double its target for photovoltaic capacity over the next five years, and Taiwan is studying cutting nuclear output. Germany and Switzerland are either shutting older reactors or suspending approvals.

Investors are already betting on the change, carrying global benchmark indexes to their highest in 14 months.

The global FTSE Cleantech index has spiked more than 8 percent since Japan's earthquake struck on March 11,beating a rise of around 2 percent in the MSCI all-country world stock index. The WilderHill New Energy Global Innovation index of alternative energy stocks has gained around 12 percent.

"If nuclear contributes less, then something has to make up the difference and that could very easily be renewables," Paul Hanrahan, president and chief executive of New York-listed global power firm AES Corporation said in Singapore.

Giving a fillip to the sector, China, the world's biggest energy consumer, has already announced plans to raise the price of power generated from renewable sources over the next two years to help encourage investments.

China's renewable energy law obliges grid firms to buy all the renewable electricity produced in their region, even though it is more expensive than coal-fired power, but it also allows them to charge "additional" fees for clean electricity sources.

Besides trying to double solar power capacity, renewable energy officials have urged more government support, saying promotion of clean energy sources could help fill any likely supply gap if safety concerns were to slow China's nuclear program.

"Nuclear power can probably improve China's energy security, but whether it improves overall national security is something that needs to be thought about deeply," Li Hejun, chairman of the China New Energy Chamber of Commerce, which lobbies on behalf of the renewable sector.

After the Japanese nuclear disaster, German Chancellor Angela Merkel declared a three-month moratorium on an extension her government had given last year to 17 nuclear reactors, carrying their lifespan an average of 12 years beyond a prior 2022 cut-off date.

Taiwan's state-run Taipower also said it was studying plans to cut nuclear power output.

"Whatever their exact outcome, the Fukushima events are likely to shift the energy policy balance toward renewables," Pricewaterhouse Coopers said in a report on March 28.

Swiss Energy Minister Doris Leuthard suspended the approvals process for three nuclear power stations so safety standards can be revisited after the crisis in Japan.

Robin Batchelor, a fund manager at BlackRock responsible for $8.2 billion in energy-related funds, said renewables were not really in focus for fund managers prior to the crisis in Japan, adding that the disaster may prompt countries to have a rethink.

In Europe, the bloc's Renewable Electricity Directive missed a 2010 target of a 21 percent share for renewable energy out of total electricity generated, and now aims for it to account for 20 percent by 2020, the body said on its website.

Industry executives and experts say the events unfolding in Japan will help speed the push toward this goal. "The ball is already rolling here in Europe as you have seen with the way the Green Party is advancing in Germany," said Thorbjoern Jensen, oil market analyst at Global Risk Management. "You will certainly see a bigger push on the part of all governments here in Europe to diversify their slate for power generation."

In 2010, nearly half the value of power sector deals concluded in the renewables sector globally originated from Europe. The overall value based on deals done in the region was just over $13 billion, according to PwC.

Hydro accounts for around 13 to 14 percent of the total power generated in Asia Pacific renewables, excluding hydropower, will account for only 2.3 percent in 2010 and are only expected to increase to 4 percent by 2030.

Wind, solar and biomass power are the largest contributors to the renewable contribution.

The renewable share of world electricity generation is expected to increase to 23 percent in 2035 from 18 percent in 2007, supported by high oil prices and government incentives, according to a U.S. Department of Energy report last December.

The bulk of that increase in renewable electricity supply will be fueled by hydro and wind power, the department said.

"Renewables are a big player in the mix, there will still be other sources of energy but the share of renewables will increase," said Evgeny Fedorov, chief executive of EuroSibErnego, Russia's largest private power generator and one of the world's biggest hydroelectric power players.

Still, much as governments around the world talk about boosting the renewable energy sector, an immediate surge in spending flows is unlikely because projects will take time to prepare and get off the drawing board, analysts said.

Investment in renewable energy across the globe was expected to maintain the momentum seen in 2010, when the number of deals in green energy projects rose 66 percent versus the previous year, the Pricewaterhouse Coopers report showed. Overall investments in clean energy, excluding research and development funding, in the Group of 20 major economies rose 33 percent last year to $198 billion amid recovery from the recession, according to the report.

China was ranked ahead of Germany and the United States with private investments in the sector pegged at $54.4 billion.

Cost may be another factor discouraging large-volume spending in renewables. Renewable projects on which work may have begun, and will be ready in the next five or so, will be far more expensive to run than thermal power projects.

The U.S. Energy Information Administration says that in 2016, onshore wind, the least expensive renewable energy source, will be 80 percent more expensive to run than a combined cycle, gas-fired electricity.

But conventional nuclear power will still be the lowest price energy option in 2016, according to an EIA projection issued in December 2010.

That is probably part of the reason for South Korea, a major global supplier of nuclear plants, to carry on with its nuclear plans despite the crisis at its neighbor Japan.

Nuclear power accounts for 31.4 percent of South Korea's electricity generation needs, and the world's fifth-largest oil importer has a target to increase that to 48.5 percent by 2024.

It has 7 reactors under construction, with plans to build 6 more and bring to 34 the number on-stream by 2024.

But renewable power must battle reliability concerns, compared with thermal or nuclear power, as supplies of sunlight, wind or water are not always steady, a hurdle the sector must overcome before it can displace conventional sources.

"Renewables, yes, to a certain extent you can use, but it can only supplement, it cannot replace," said Che Kalib Mohamad Noh, chief executive of Malaysian power company Tenaga Nasional, adding that conventional fossil fuels and nuclear power would play a pre-eminent role for the foreseeable future.

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Tackling climate change with machine learning: Covid-19 and the energy transition

Covid-19 Energy Transition and Machine Learning reshape climate change policy, electricity planning, and grid operations, from demand forecasting and decarbonization strategies in Europe to scalable electrification modeling and renewable integration across Africa.

 

Key Points

How the pandemic reshapes energy policy and how ML improves planning, demand forecasts, and grid reliability in Africa.

✅ Pandemic-driven demand shifts strain grid operations and markets

✅ Policy momentum risks rollback; favor future-oriented decarbonization

✅ ML boosts demand prediction, electrification, and grid reliability in Africa

 

The impact of Covid-19 on the energy system was discussed in an online climate change workshop that also considered how machine learning can help electricity planning in Africa.

This year’s International Conference on Learning Representations event included a workshop held by the Climate Change AI group of academics and artificial intelligence industry representatives, which considered how machine learning can help tackle climate change and highlighted advances by European electricity prediction specialists working in this field.

Bjarne Steffen, senior researcher at the energy politics group at ETH Zürich, shared his insights at the workshop on how Covid-19 and the accompanying economic crisis are affecting recently introduced ‘green’ policies. “The crisis hit at a time when energy policies were experiencing increasing momentum towards climate action, especially in Europe, and in proposals to invest in smarter electricity infrastructure for long-term resilience,” said Steffen, who added the coronavirus pandemic has cast into doubt the implementation of such progressive policies.

The academic said there was a risk of overreacting to the public health crisis, as far as progress towards climate change goals was concerned.

 

Lobbying

“Many interest groups from carbon-intensive industries are pushing to remove the emissions trading system and other green policies,” said Steffen. “In cases where those policies are having a serious impact on carbon-emitting industries, governments should offer temporary waivers during this temporary crisis, instead of overhauling the regulatory structure.”

However, the ETH Zürich researcher said any temptation to impose environmental conditions to bail-outs for carbon-intensive industries should be resisted. “While it is tempting to push a green agenda in the relief packages, tying short-term environmental conditions to bail-outs is impractical, given the uncertainty in how long this crisis will last,” he said. “It is better to include provisions that will give more control over future decisions to decarbonize industries, such as the government taking equity shares in companies.”

Steffen shared with pv magazine readers an article published in Joule which can be accessed here, and which articulates his arguments about how Covid-19 could affect the energy transition.

 

Covid-19 in the U.K.

The electricity system in the U.K. is also being affected by Covid-19, even as the U.S. electric grid grapples with climate risks, according to Jack Kelly, founder of London-based, not-for-profit, greenhouse gas emission reduction research laboratory Open Climate Fix.

“The crisis has reduced overall electricity use in the U.K.,” said Kelly. “Residential use has increased but this has not offset reductions in commercial and industrial loads.”

Steve Wallace, a power system manager at British electricity system operator National Grid ESO recently told U.K. broadcaster the BBC electricity demand has fallen 15-20% across the U.K. The National Grid ESO blog has stated the fall-off makes managing grid functions such as voltage regulation more challenging.

Open Climate Fix’s Kelly noted even events such as a nationally-coordinated round of applause for key workers was followed by a dramatic surge in demand, stating: “On April 16, the National Grid saw a nearly 1 GW spike in electricity demand over 10 minutes after everyone finished clapping for healthcare workers and went about the rest of their evenings.”

Climate Change AI workshop panelists also discussed the impact machine learning could have on improving electricity planning in Africa. The Electricity Growth and Use in Developing Economies (e-Guide) initiative funded by fossil fuel philanthropic organization the Rockefeller Foundation aims to use data to improve the planning and operation of electricity systems in developing countries.

E-Guide members Nathan Williams, an assistant professor at the Rochester Institute of Technology (RIT) in New York state, and Simone Fobi, a PhD student at Columbia University in NYC, spoke about their work at the Climate Change AI workshop, which closed on Thursday. Williams emphasized the importance of demand prediction, saying: “Uncertainty around current and future electricity consumption leads to inefficient planning. The weak link for energy planning tools is the poor quality of demand data.”

Fobi said: “We are trying to use machine learning to make use of lower-quality data and still be able to make strong predictions.”

The market maturity of individual solar home systems and PV mini-grids in Africa mean more complex electrification plan modeling is required, similar to integrating AI data centers into Canada's grids at scale.

 

Modeling

“When we are doing [electricity] access planning, we are trying to figure out where the demand will be and how much demand will exist so we can propose the right technology,” added Fobi. “This makes demand estimation crucial to efficient planning.”

Unlike many traditional modeling approaches, machine learning is scalable and transferable. Rochester’s Williams has been using data from nations such as Kenya, which are more advanced in their electrification efforts, to train machine learning models to make predictions to guide electrification efforts in countries which are not as far down the track.

Williams also discussed work being undertaken by e-Guide members at the Colorado School of Mines, which uses nighttime satellite imagery and machine learning to assess the reliability of grid infrastructure in India, where new algorithms to prevent ransomware-induced blackouts are also advancing.

 

Rural power

Another e-Guide project, led by Jay Taneja at the University of Massachusetts, Amherst – and co-funded by the Energy and Economic Growth program on development spending based at Berkeley – uses satellite imagery to identify productive uses of electricity in rural areas by detecting pollution signals from diesel irrigation pumps.

Though good quality data is often not readily available for Africa, Williams added, it does exist.

“We have spent years developing trusting relationships with utilities,” said the RIT academic. “Once our partners realize the value proposition we can offer, they are enthusiastic about sharing their data … We can’t do machine learning without high-quality data and this requires that organizations can effectively collect, organize, store and work with data. Data can transform the electricity sector, as shown by Canadian projects to use AI for energy savings, but capacity building is crucial.”

 

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Britain got its cleanest electricity ever during lockdown

UK Clean Electricity Record as wind, solar, and biomass boost renewable energy output, slashing carbon emissions and wholesale power prices during lockdown, while lower demand challenges grid balancing and drives a drop to 153 g/kWh.

 

Key Points

A milestone where wind, solar and biomass lifted renewables, cutting carbon intensity to 153 g/kWh during lockdown.

✅ Carbon intensity averaged 153 g/kWh in Q2 2020.

✅ Renewables output rose 32% via wind, solar, biomass.

✅ Wholesale power prices slumped 42% amid lower demand.

 

U.K electricity has never been cleaner. As wind, solar and biomass plants produced more power than ever in the second quarter, with a new wind generation record set, carbon emissions fell by a third from a year earlier, according to Drax Electric Insight’s quarterly report. Power prices slumped 42 per cent as demand plunged during lockdown. Total renewable energy output jumped 32 per cent in the period, as wind became the main source of electricity at times.

“The past few months have given the country a glimpse into the future for our power system, with higher levels of renewable energy, as wind led the power mix, and lower demand making for a difficult balancing act,”said  Iain Staffell, from Imperial College London and lead author of the report.

The findings of the report point to the impact energy efficiency can have on reducing emissions, as coal's share fell to record lows across the electricity system. Millions of people furloughed or working from home and shuttered shops up and down the country resulted in daily electricity demand dropping about 10% and being about four gigawatts lower than expected in the three months through June.

Average carbon emissions fell to a new low of 153 grams per kWh of electricity consumed over the quarter, as coal-free generation records were extended, even though low-carbon generation stalled in 2019, according to the report.

 

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Trump Tariff Threat Delays Quebec's Green Energy Bill

Quebec Energy Bill Tariff Delay disrupts Canada-U.S. trade, renewable energy investment, hydroelectric expansion, and clean technology projects, as Trump tariffs on aluminum and steel raise costs, threatening climate targets and green infrastructure timelines.

 

Key Points

A policy pause in Quebec from U.S. tariff threats, disrupting clean investment, hydro expansion, and climate targets.

✅ Tariff risk inflates aluminum and steel project costs.

✅ Quebec delays clean energy legislation amid trade uncertainty.

✅ Hydroelectric reliance complicates emissions reduction timelines.

 

The Trump administration's tariff threat has had a significant impact on Quebec's energy sector, with tariff threats boosting support for projects even as the uncertainty resulted in the delay of a critical energy bill. Originally introduced to streamline energy development and tackle climate change, the bill was meant to help transition Quebec towards greener alternatives while fostering economic growth. However, the U.S. threat to impose tariffs on Canadian goods, including energy products, introduced a wave of uncertainty that led to a pause in the bill's legislative process.

Quebec’s energy bill had ambitious goals of transitioning to renewable sources like wind, solar, and hydroelectric power. It sought to support investments in clean technologies and the expansion of the province's clean energy infrastructure, as the U.S. demand for Canadian green power continues to grow across the border. Moreover, it emphasized the reduction of carbon emissions, an important step towards meeting Quebec's climate targets. At its core, the bill aimed to position the province as a leader in green energy development in Canada and globally.

The interruption caused by President Donald Trump's tariff rhetoric has, however, cast a shadow over the legislation. Tariffs, if enacted, would disproportionately affect Canada's energy exports, with electricity exports at risk under growing tensions, particularly in sectors like aluminum and steel, which are integral to energy infrastructure development. These tariffs could increase the cost of energy-related projects, thereby hindering Quebec's ability to achieve its renewable energy goals and reduce carbon emissions in a timely manner.

The tariff threat was seen as a part of the broader trade tensions between the U.S. and Canada, a continuation of the trade war that had escalated under Trump’s presidency. In this context, the Quebec government was forced to reconsider its legislative priorities, with policymakers citing concerns over the potential long-term consequences on the energy industry, as leaders elsewhere threatened to cut U.S.-bound electricity to exert leverage. With the uncertainty around tariffs and trade relations, the government opted to delay the bill until the geopolitical situation stabilized.

This delay underscores the vulnerability of Quebec’s energy agenda to external pressures. While the provincial government had set its sights on an ambitious green energy future, it now faces significant challenges in ensuring that its projects remain economically viable under the cloud of potential tariffs, even as experts warn against curbing Quebec's exports during the dispute. The delay in the energy bill also reflects broader challenges faced by the Canadian energy sector, which is highly integrated with the U.S. market.

The situation is further complicated by the province's reliance on hydroelectric power, a cornerstone of its energy strategy that supplies markets like New York, where tariffs could spike New York energy prices if cross-border flows are disrupted. While hydroelectric power is a clean and renewable source of energy, there are concerns about the environmental impact of large-scale dams, and these concerns have been growing in recent years. The tariff threat may prompt a reevaluation of Quebec’s energy mix and force the government to balance its environmental goals with economic realities.

The potential imposition of tariffs also raises questions about the future of North American energy cooperation. Historically, Canada and the U.S. have enjoyed a symbiotic energy relationship, with significant energy trade flowing across the border. The energy bill in Quebec was designed with the understanding that cross-border energy trade would continue to thrive. The Trump administration's tariff threat, however, casts doubt on this stability, forcing Quebec lawmakers to reconsider how they proceed with energy policy in a more uncertain trade environment.

Looking forward, Quebec's energy sector will likely need to adjust its strategies to account for the possibility of tariffs, while still pushing for a sustainable energy future, especially if Biden outlook for Canada's energy proves more favorable for the sector in the medium term. It may also open the door for deeper discussions about diversification, both in terms of energy sources and trade partnerships, as Quebec seeks to mitigate the impact of external threats. The delay in the energy bill, though unfortunate, may serve as a wake-up call for Canadian lawmakers to rethink how they balance environmental goals with global trade realities.

Ultimately, the Trump tariff threat highlights the delicate balance between regional energy ambitions and international trade dynamics. For Quebec, the delay in the energy bill could prove to be a pivotal moment in shaping the future of its energy policy.

 

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Canada's First Commercial Electric Flight

Canada's First Commercial Electric Flight accelerates sustainable aviation, showcasing electric aircraft, pilot training, battery propulsion, and noise reduction, aligning with net-zero goals and e-aviation innovation across commercial, regional, and training operations.

 

Key Points

Canada's electric flight advances sustainable aviation, proving e-aircraft viability and pilot training readiness.

✅ Battery-electric propulsion cuts emissions and noise

✅ New curricula prepare pilots for electric systems and procedures

✅ Supports net-zero goals through green aviation infrastructure

 

Canada, renowned for its vast landscapes and pioneering spirit, has achieved a significant milestone in aviation history with its first commercial electric flight. This groundbreaking achievement marks a pivotal moment in the transition towards sustainable aviation and an aviation revolution for the sector, highlighting Canada's commitment to reducing carbon emissions and embracing innovative technologies.

The inaugural commercial electric flight in Canada not only showcases the capabilities of electric aircraft, with examples like Harbour Air's prototype flight demonstrating feasibility, but also underscores the importance of pilot training in advancing e-aviation. As the aviation industry explores cleaner and greener alternatives to traditional fossil fuel-powered aircraft, pilot training plays a crucial role in preparing aviation professionals for the future of sustainable flight.

Electric aircraft, powered by batteries instead of conventional jet fuel, offer numerous environmental benefits, including lower greenhouse gas emissions and reduced noise pollution, though Canada's 2019 electricity mix still included some fossil generation that can affect lifecycle impacts. These advantages align with Canada's ambitious climate goals and commitment to achieving net-zero emissions by 2050. By investing in e-aviation, Canada aims to lead by example in the global effort to decarbonize the aviation sector and mitigate the impacts of climate change.

The success of Canada's first commercial electric flight is a testament to collaborative efforts between industry stakeholders, government support, and technological innovation. Electric aircraft manufacturers have made significant strides in developing reliable and efficient electric propulsion systems, with research investment helping advance prototypes and certification, paving the way for broader adoption of e-aviation across commercial and private sectors.

Pilot training programs tailored for electric aircraft are crucial in ensuring the safe and effective operation of these advanced technologies, as operators target first electric passenger flights across regional routes. Canadian aviation schools and training institutions are at the forefront of integrating e-aviation into their curriculum, equipping future pilots with the skills and knowledge needed to navigate electric aircraft systems and procedures.

Moreover, the introduction of commercial electric flights in Canada opens new opportunities for aviation enthusiasts, environmental advocates, and stakeholders interested in sustainable transportation solutions. The shift towards e-aviation represents a paradigm shift in how air travel is perceived and executed, emphasizing efficiency, environmental stewardship, and technological innovation.

Looking ahead, Canada's role in advancing e-aviation extends beyond pilot training to include research and development, infrastructure investment, and policy support. Collaborative initiatives with industry partners and international counterparts, including Canada-U.S. collaboration on electrification, will be essential in accelerating the adoption of electric aircraft and establishing a robust framework for sustainable aviation practices.

In conclusion, Canada's first commercial electric flight marks a significant milestone in the journey towards sustainable aviation. By pioneering e-aviation through pilot training and technological innovation, Canada sets a precedent for global leadership in reducing carbon emissions and shaping the future of air transportation. As electric aircraft become more prevalent in the skies, Canada's commitment to sustainability and ambitious EV goals at the national level will continue to drive progress towards a cleaner, greener future for aviation worldwide.

 

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Alberta Faces Challenges with Solar Energy Expansion

Alberta Solar Energy Expansion confronts high installation costs, grid integration and storage needs, and environmental impact, while incentives, infrastructure upgrades, and renewable targets aim to balance reliability, land use, and emissions reductions provincewide.

 

Key Points

Alberta Solar Energy Expansion is growth in solar tempered by costs, grid limits, environmental impact, and incentives.

✅ High capex and financing challenge utility-scale projects

✅ Grid integration needs storage, transmission, and flexibility

✅ Site selection must mitigate land and wildlife impacts

 

Alberta's push towards expanding solar power is encountering significant financial and environmental hurdles. The province's ambitious plans to boost solar power generation have been met with both enthusiasm and skepticism as stakeholders grapple with the complexities of integrating large-scale solar projects into the existing energy framework.

The Alberta government has been actively promoting solar energy as part of its strategy to diversify the energy mix in a province that is a powerhouse for both green energy and fossil fuels today and reduce greenhouse gas emissions. Recent developments have highlighted the potential of solar power to contribute to Alberta's clean energy goals. However, the path forward is fraught with challenges related to costs, environmental impact, and infrastructure needs.

One of the primary issues facing the solar energy sector in Alberta is the high cost of solar installations. Despite decreasing costs for solar technology in recent years, the upfront investment required for large-scale solar farms remains substantial, even as some facilities have been contracted at lower cost than natural gas in Alberta today. This financial barrier has led to concerns about the economic viability of solar projects and their ability to compete with other forms of energy, such as natural gas and oil, which have traditionally dominated Alberta's energy landscape.

Additionally, there are environmental concerns associated with the development of solar farms. While solar energy is considered a clean and renewable resource, the construction of large solar installations can have environmental implications. These include potential impacts on local wildlife habitats, land use changes, where approaches like agrivoltaics can co-locate farming and solar, and the ecological effects of large-scale land clearing. As solar projects expand, balancing the benefits of renewable energy with the need to protect natural ecosystems becomes increasingly important.

Another significant challenge is the integration of solar power into Alberta's existing energy grid. Solar energy production is variable and dependent on weather conditions, especially with Alberta's limited hydro capacity for flexibility, which can create difficulties in maintaining a stable and reliable energy supply. The need for infrastructure upgrades and energy storage solutions is crucial to address these challenges and ensure that solar power can be effectively utilized alongside other energy sources.

Despite these challenges, the Alberta government remains committed to advancing solar energy as a key component of its renewable energy strategy. Recent initiatives include financial incentives and support programs aimed at encouraging investment in solar projects and supporting a renewable energy surge that could power thousands of jobs across Alberta today. These measures are designed to help offset the high costs associated with solar installations and make the technology more accessible to businesses and homeowners alike.

Local communities and businesses are also playing a role in the growth of solar energy in Alberta. Many are exploring opportunities to invest in solar power as a means of reducing energy costs and supporting sustainability efforts and, increasingly, to sell renewable energy into the market as demand grows. These smaller-scale projects contribute to the overall expansion of solar energy and demonstrate the potential for widespread adoption across the province.

The Alberta government has also been working to address the environmental concerns associated with solar energy development. Efforts are underway to implement best practices for minimizing environmental impacts and ensuring that solar projects are developed in an environmentally responsible manner. This includes conducting environmental assessments and working with stakeholders to address potential issues before projects are approved and built.

In summary, while Alberta's solar energy initiatives hold promise for advancing the province's clean energy goals, they are also met with significant financial and environmental challenges. Addressing these issues will be crucial to the successful expansion of solar power in Alberta. The government's ongoing efforts to support solar projects through incentives and infrastructure improvements, coupled with responsible environmental practices, will play a key role in determining the future of solar energy in the province.

 

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Neste increases the use of wind power at its Finnish production sites to nearly 30%

Neste wind power agreement boosts renewable electricity in Finland, partnering with Ilmatar and Fortum to supply Porvoo and Naantali sites, cutting Scope 2 emissions and advancing a 2035 carbon-neutral production target via long-term PPAs.

 

Key Points

A PPA to source wind power for sites, cutting Scope 2 emissions and supporting Neste's 2035 carbon-neutral goal.

✅ 10-year PPA with Ilmatar; + Fortum boosts renewable electricity share.

✅ Supplies ~7% of Porvoo-Naantali electricity; capacity >20 MW.

✅ Cuts Scope 2 emissions by ~55 kt CO2e per year toward 2035 neutrality.

 

Neste is committed to reaching carbon neutral production by 2035, mirroring efforts such as Olympus 100% renewable electricity commitments across industry.

As part of this effort, the company is increasing the use of renewable electricity at its production sites in Finland, reflecting trends such as Ireland's green electricity targets across Europe, and has signed a wind power agreement with Ilmatar, a wind power company. The agreement has been made together with Borealis, Neste's long-term partner in the Kilpilahti area in Porvoo, Finland.

As a result of the agreement with Ilmatar, as well as that signed with Fortum at the end of 2019, and in line with global growth such as Enel's 450 MW wind project in the U.S., nearly 30% of the energy used at Neste's production sites in Porvoo and Naantali will be renewable wind power in 2022.

'Neste's purpose is to create a healthier planet for our children. Our two climate commitments play an important role in living up to this ambition, and one of them is to reach carbon neutral production by 2035. It is an enormous challenge and requires several concrete measures and investments, including innovations like offshore green hydrogen initiatives. Wind power, including advances like UK offshore wind projects, is one of the over 70 measures we have identified to reduce our production's greenhouse gas emissions,' Neste's President and CEO Peter Vanacker says.

With the ten year contract, Neste is committed to purchase about one-third of the production of Ilmatar's two wind farms, reflecting broader market moves such as BC Hydro wind deals in Canada. The total capacity of the agreement is more than 20 MW, and the energy produced will correspond to around 7% of the electricity consumption at Neste's sites in Porvoo and Naantali. The wind power deliveries are expected to begin in 2022.

The two wind power agreements help Neste to reduce the indirect greenhouse gas emissions (Scope 2 emissions defined by the Greenhouse Gas Protocol) of electricity purchases at its Finnish production sites, a trend mirrored by Dutch green electricity growth across Europe, annually by approximately 55 kilotons. 55 kt/a CO2e equals annual carbon footprint of more than 8,500 EU citizens.

 

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