Wind, solar bids surpass expectations

Enbridge Alberta CCS Project targets carbon capture and storage in Alberta, capturing emissions from industrial emitters to advance net-zero goals, leveraging carbon pricing, regulatory support, and a hub model despite a key partner's exit.

Key Points

A proposed Alberta carbon capture hub by Enbridge to store industrial emissions and support net-zero targets.

✅ Seeks emitters across power, oil and gas, and heavy industry

✅ Backed by carbon pricing, regulation, and net-zero mandates

✅ Faces high capex, storage risk, and anchor-tenant uncertainty

Enbridge Inc., a Canadian energy giant, is digging its heels in on its proposed carbon capture and storage (CCS) project in Alberta. This comes despite the recent withdrawal of Capital Power, a major potential emitter that was expected to utilize the CCS technology. Enbridge maintains the project remains viable, but questions linger about its future viability without a cornerstone anchor.

The CCS project, envisioned as a major carbon capture hub in Alberta, aimed to capture emissions from industrial facilities and permanently store them underground. This technology has the potential to play a significant role in reducing greenhouse gas emissions and mitigating the effects of climate change, alongside grid solutions like bridging the Alberta-B.C. electricity gap that can complement decarbonization efforts.

Capital Power's decision to shelve its $2.4 billion Genesee Generating Station project, which was designed to integrate with the CCS hub, threw a wrench into Enbridge's plans. The Genesee project was expected to be a key source of emissions for capture and storage, and its status is being weighed as Ottawa advances the federal coal plan to phase out unabated coal.

Enbridge, however, remains optimistic. The company cites ongoing discussions with other potential emitters interested in utilizing the CCS technology, amid new funding signals such as the U.S. DOE's $110M for CCUS that highlight momentum. They believe the project holds significant value despite Capital Power's departure.

"We are confident in the long-term viability of the project and continue to actively engage with potential customers," said Enbridge spokesperson Rachel Giroux. "Carbon capture and storage is a critical technology for achieving net-zero emissions, and we believe there is a strong business case for our CCS project."

Enbridge's confidence hinges on several factors. Firstly, they believe there is a growing appetite for CCS technology amongst industrial facilities facing increasing pressure to reduce their carbon footprint. Regulations and carbon pricing mechanisms, including new U.S. EPA power plant rules that test CCS readiness, could further incentivize companies to adopt CCS solutions.

Secondly, Enbridge highlights the potential for capturing emissions from not just power plants but also from other industrial sectors like oil and gas production and clean hydrogen projects in Canada, where reforming processes can generate CO2. This broader application could significantly increase the captured carbon volume and strengthen the project's economic viability.

However, skepticism remains. Critics point to the high upfront costs associated with CCS development and the nascent stage of the technology. They argue that without a guaranteed stream of captured emissions, the project might not be financially sound. Additionally, the long-term safety and effectiveness of large-scale carbon storage solutions remain under scrutiny.

The success of Enbridge's CCS project hinges on attracting new emitters. Replacing Capital Power's contribution will be a significant challenge. Enbridge will need to demonstrate the project's economic viability and navigate the complex regulatory landscape surrounding CCS technology.

The Alberta government's position on CCS is crucial. While the government has expressed support for the technology, the level of financial and regulatory incentives offered will significantly impact investor confidence, especially as the IEA net-zero outlook underscores Canada's need for much more electricity. A clear and stable policy framework will be essential for attracting emitters to the project.

The future of Enbridge's CCS project remains uncertain. Capital Power's withdrawal is a setback, but Enbridge's continued commitment suggests they believe the technology holds promise. Whether they can find enough emitters to justify the project's development will be a critical test. The outcome will have significant implications for the future of CCS technology in Alberta and Canada's broader efforts to achieve net-zero emissions, including Canada-Germany clean energy cooperation that seeks to scale low-carbon fuels.

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U.S. 100% Tariff on Chinese EVs aims to protect domestic manufacturing, counter subsidies, and reshape the EV market, but could raise prices, disrupt supply chains, invite retaliation, and complicate climate policy and trade relations.

Key Points

A 100% import duty on Chinese EVs to boost U.S. manufacturing, counter subsidies, and address supply chain risks.

✅ Protects domestic EV manufacturing and jobs

✅ Counters alleged subsidies and IP concerns

✅ May raise prices, limit choice, trigger retaliation

President Joe Biden's administration recently made headlines with its announcement of a 100% tariff on Chinese electric vehicles (EVs), marking a significant escalation in trade tensions between the two economic powerhouses. The decision, framed as a measure to protect American industries and promote domestic manufacturing, has sparked debates over its potential impact on the EV market, global supply chains, and bilateral relations between the United States and China.

The imposition of a 100% tariff on Chinese-made EVs reflects the Biden administration's broader efforts to revitalize the American automotive industry and promote the transition to electric vehicles as part of its climate agenda and tighter EPA emissions rules that could accelerate adoption. By imposing tariffs on imported EVs, particularly those from China, the administration aims to incentivize domestic production and create jobs in the growing green economy, and to secure critical EV metals through allied supply efforts. Additionally, the tariff is seen as a response to concerns about unfair trade practices, including intellectual property theft and market distortions, allegedly perpetuated by Chinese companies.

However, the announcement has triggered a range of reactions from various stakeholders, with both proponents and critics offering contrasting perspectives on the potential consequences of such a policy. Proponents argue that the tariff will help level the playing field for American automakers, who face stiff competition from Chinese companies benefiting from government subsidies and lower production costs. They contend that promoting domestic manufacturing of EVs will not only create high-quality jobs but also enhance national security by reducing dependence on foreign supply chains at a time when an EV inflection point is approaching.

On the other hand, critics warn that the 100% tariff on Chinese-made EVs could have unintended consequences, including higher prices for consumers, as seen in the UK EV prices and Brexit debate, disruptions to global supply chains, and retaliatory measures from China. Chinese EV manufacturers, such as NIO, BYD, and XPeng, have been gaining momentum in the global market, offering competitive products at relatively affordable prices. The tariff could limit consumer choice at a time when U.S. EV market share dipped in Q1 2024, potentially slowing the adoption of electric vehicles and undermining efforts to combat climate change and reduce greenhouse gas emissions.

Moreover, the tariff announcement comes at a sensitive time for U.S.-China relations, which have been strained by various issues, including trade disputes, human rights concerns, and geopolitical tensions. The imposition of tariffs on Chinese-made EVs could further exacerbate bilateral tensions, potentially leading to retaliatory measures from China and escalating trade frictions. As the world's two largest economies, the United States and China have significant economic interdependencies, and any escalation in trade tensions could have far-reaching implications for global trade and economic stability.

In response to the Biden administration's announcement, Chinese officials have expressed concerns and called for dialogue to resolve trade disputes through negotiation and mutual cooperation. China has also emphasized its commitment to fair trade practices and compliance with international rules and regulations governing trade.

Moving forward, the Biden administration faces the challenge of balancing its domestic priorities with the need to maintain constructive engagement with China and other trading partners, even as EV charging networks scale under its electrification push. While promoting domestic manufacturing and protecting American industries are legitimate policy goals, achieving them without disrupting global trade and undermining diplomatic relations requires careful deliberation and strategic foresight.

In conclusion, President Biden's announcement of a 100% tariff on Chinese-made electric vehicles reflects his administration's commitment to revitalizing American industries and promoting domestic manufacturing. However, the decision has raised concerns about its potential impact on the EV market, global supply chains, and U.S.-China relations. As policymakers navigate these complexities, finding a balance between protecting domestic interests and fostering international cooperation will be crucial to achieving sustainable economic growth and addressing global challenges such as climate change.

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White Pines Project cancellation highlights Ontario's wind farm contract dispute in Prince Edward County, involving IESO approvals, Progressive Conservatives' legislation, potential court action, and costs to ratepayers amid green energy policy shifts.

Key Points

The termination effort for Ontario's White Pines wind farm contract, triggering legal, legislative, and cost disputes.

✅ Contract with IESO dates to 2009; final approval during election

✅ PCs seek legislation insulating taxpayers from litigation

✅ Cancellation could exceed $100M; cost impact on ratepayers

Cancelling an eastern Ontario green energy project that has been under development for nearly a decade could cost more than $100 million, the president of the company said Wednesday, warning that the dispute could be headed to the courts.

Ontario's governing Progressive Conservatives said this week that one of their first priorities during the legislature's summer sitting would be to cancel the contract for the White Pines Project in Prince Edward County.

Ian MacRae, president of WPD Canada, the company behind the project, said he was stunned by the news given that the project is weeks away from completion.

"What our lawyers are telling us is we have a completely valid contract that we've had since 2009 with the (Independent Electricity System Operator). ... There's no good reason for the government to breach that contract," he said.

The government has also not reached out to discuss the cancellation, he said. Meanwhile, construction on the site is in full swing, he said.

"Over the last couple weeks we've had an average of 100 people on site every day," he said. "The footprint of the project is 100 per cent in. So, all the access roads, the concrete for the base foundations, much of the electrical infrastructure. The sub-station is nearing completion."

The project includes nine wind turbines meant to produce enough electricity to power just over 3,000 homes annually, even as Ontario looks to build on an electricity deal with Quebec for additional supply. All of the turbines are expected to be installed over the next three weeks, with testing scheduled for the following month.

MacRae couldn't say for certain who would have to pay for the cancellation, electricity ratepayers or taxpayers.

"Somehow that money would come from IESO and it would be my assumption that would end up somehow on the ratepayers, despite legislation to lower electricity rates now in place," he said. "We just need to see what the government has in mind and who will foot the bill."

Progressive Conservative house leader Todd Smith, who represents the riding where the project is being built, said the legislation to cancel the project will also insulate taxpayers from domestic litigation over the dismantling of green energy projects.

"This is something that the people of Prince Edward County have been fighting ... for seven years," he said. "This shouldn't have come as a surprise to anybody that this was at the top of the agenda for the incoming government, which has also eyed energy independence in recent decisions."

Smith questioned why Ontario's Independent Electricity System Operator gave the final approval for the project during the spring election campaign.

"There's a lot of questions about how this ever got greenlighted in the first place," he said. "This project was granted its notice to proceed two days into the election campaign ... when (the IESO) should have been in the caretaker mode."

Terry Young, the IESO's vice president of policy, engagement and innovation, said the agency could not comment because of the pending introduction of legislation to cancel the deal, following a recent auditor-regulator dispute that drew attention to oversight.

NDP Leader Andrea Horwath said the new Tory government is behaving like the previous Liberal government by cancelling energy projects and tearing up contracts amid ongoing debates over Ontario's hydro mess and affordability. She likened the Tory plan to the Liberal gas plant scandal that saw the government relocate two plants at a substantial cost to taxpayers.

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China 2060 Carbon-Neutral Energy Transition projects tripled electricity, rapid electrification, wind and solar dominance, scalable hydrogen, CCUS, and higher carbon pricing to meet net-zero goals while decarbonizing heavy industry and transport.

Key Points

Shell's outlook for China to reach net zero by 2060 via electrification, renewables, hydrogen, CCUS, and carbon pricing.

✅ Power supply to 60% of energy; generation triples by 2060.

✅ Wind and solar reach 80% of electricity; coal declines sharply.

✅ Hydrogen scales to 17 EJ; CCUS and carbon pricing expand.

China may triple electricity generation to supply 60 percent of the country's total energy under Beijing's carbon-neutral goal by 2060, up from the current 23 per cent, according to Royal Dutch Shell.

Shell is one of the largest global investors in China's energy sector, with business covering gas production, petrochemicals and a retail fuel network. A leading supplier of liquefied natural gas, it has recently expanded into low-carbon business such as hydrogen power and electric vehicle charging.

In a rare assessment of the country's energy sector by an international oil major, Shell said China needed to take quick action this decade to stay on track to reach the carbon-neutrality goal.

China has mapped out plans to reach peak emissions by 2030, and aims to reduce coal power production over the coming years, but has not yet revealed any detailed carbon roadmap for 2060.

This includes investing in a reliable and renewable power system, including compressed air generation, and demonstrating technologies that transform heavy industry using hydrogen, biofuel and carbon capture and utilization.

"With early and systematic action, China can deliver better environmental and social outcomes for its citizens while being a force for good in the global fight against climate change," Mallika Ishwaran, chief economist of Shell International, told a webinar hosted by the company's China business.

Shell expects China's electricity generation to rise three-fold to more than 60 exajoules (EJ) in 2060 from 20 EJ in 2020, even amid power supply challenges reported recently.

Solar and wind power are expected to surpass coal as the largest sources of electricity by 2034 in China, reflecting projections that renewables will eclipse coal globally by mid-decade, versus the current 10 percent, rising to 80 percent by 2060, Shell said.

Hydrogen is expected to scale up to 17 EJ, or equivalent to 580 million tonnes of coal by 2060, up from almost negligible currently, adding over 85 percent of the hydrogen will be produced through electrolysis, supported by PEM hydrogen R&D across the sector, powered by renewable and nuclear electricity, Shell said.

Hydrogen will meet 16 percent of total energy use in 2060 with heavy industry and long-distance transport as top hydrogen users, the firm added.

The firm also expects China's carbon price to rise to 1,300 yuan (CDN$256.36) per tonne in 2060 from 300 yuan in 2030.

Nuclear, on a steady development track, and biomass will have niche but important roles for power generation in the years to come, Shell said.

Electricity generated from biomass, combined with carbon, capture, utilization and storage (CCUS), provide a source of negative emissions for the rest of the energy system from 2053, it added.

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NYSERDA Offshore Wind Data initiative funds geophysical and geotechnical surveys, seabed and soil studies on New York's shelf to accelerate siting, optimize foundation design, reduce costs, and advance clean energy deployment.

Key Points

State funding to support surveys and soil studies guiding offshore wind siting, design, and cost reduction.

✅ Up to $5.5M for geophysical and geotechnical data collection

✅ Focus on seabed soils, shelf geology, and foundation design inputs

✅ Accelerates siting, reduces risk, and lowers offshore wind costs

The New York State Energy Research and Development Authority (NYSERDA) is investing up to $5.5 million for the collection of geophysical and geotechnical data to determine future offshore wind development sites.

The funding is to look at seabed soil and geological data for the preliminary design and installation requirements for future offshore wind projects. Its part of N.Y. Gov. Andrew Cuomos plan to develop 9,000 megawatts of offshore wind energy by 2035.

Todays announcement is another step in Governor Cuomos steadfast march to achieving 9,000 megawatts of offshore wind by 2035, putting New York in a clear national leadership position when it comes to advancing this new industry through large-scale energy projects across the state. The surveys NYSERDA will be funding under this solicitation will expand the offshore wind industrys access to geophysical and geotechnical data that will provide the foundation for future offshore wind development in these areas, and accelerate project development while driving down costs, NYSERDA President and CEO Alicia Barton said.

NYSERDA will select one or more contractors to do the investigations, while recent DOE wind energy awards support complementary research, and develop a model for describing geophysical and geotechnical conditions. NYSERDA will also select a contractor to support project management and host the data that is collected. The submission deadline is Jan. 21, 2020.

Todays announcement builds on the data collected in a Geotechnical and Geophysical Desktop Study also released today, which includes information on the middle continental shelf off the shore of New York and New Jersey, where BOEM lease requests are shaping activity, creating a regional overview of the seafloor and sub-seafloor environment as it relates to offshore wind development.

Strong knowledge of environmental conditions and factors, including seabed soil conditions, are essential for the installation of offshore projects, such as Long Island proposals, but only a limited amount of soil sampling and testing has been undertaken to date.

The collection of geophysical and geotechnical data from areas off of New Yorks Atlantic coast is yet another demonstration of New Yorks leadership promoting the responsible development of offshore wind. The data generated by this initiative will ultimately lead to better projects, lower cost, and enhanced safety. New York is leading the way to a clean energy future, as the state finalizes renewable project contracts that expand capacity, and relying on data collection and sound science to get us there, New York Offshore Wind Alliance Director Joe Martens said.

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U.S. Wind Generation surpassed hydroelectric output in 2019, EIA data shows, becoming the top renewable electricity source, driven by PTC incentives, expanded capacity, and utility-scale projects across states, boosting the national electricity mix.

Key Points

U.S. Wind Generation is the nation's top renewable, surpassing hydro as EIA-tracked capacity grows under PTC incentives.

✅ EIA: wind topped hydro in 2019, over 300M MWh generated

✅ PTC credits spurred growth in utility-scale wind projects

✅ 103 GW installed; 77% added in the last decade

Last year saw wind power surging in the U.S. to overtake hydroelectric generation for the first time, according to data from the U.S. Energy Information Administration (EIA).

Released Wednesday, the figures from the EIA’s “Electric Power Monthly” report show that yearly wind generation hit a little over 300 million megawatt hours (MWh) in 2019. This was roughly 26 million MWh more than hydroelectric production.

Wind now represents the “most-used renewable electricity generation source” in the U.S., the EIA said, and renewables hit a 28% monthly record in April in later data.

Overall, total renewable electricity generation — which includes sources such as solar's 4.7% share in 2022 as one example, geothermal and landfill gas — at utility scale facilities hit more than 720 million MWh in 2019, compared to just under 707 million MWh in 2018. To put things in perspective, generation from coal came to more than 966 million MWh in 2019, while renewables surpassed coal in 2022 nationally according to later analyses.

According to the EIA’s “Today in Energy” briefing, which was also published Wednesday, generation from wind power has grown “steadily” across the last decade, and by 2020, renewables became the second-most prevalent source in the U.S. power mix.

This, it added, was partly down to the extension of the Production Tax Credit, or PTC, amid favorable government plans supporting solar and wind growth. According to the EIA, the PTC is a system which gives operators a tax credit per kilowatt hour of renewable electricity production. It applies for the first 10 years of a facility’s operation.

At the end of 2019, the country was home to 103 gigawatts (GW) of wind capacity, with 77% of this being installed in the last decade, and wind capacity surpassed hydro in 2016 according to industry data. The U.S. is home 80 GW of hydroelectric capacity, according to the EIA.

“The past decade saw a steady increase in wind capacity across the country and we capped the decade with a monumental achievement for the industry in reaching more than 100 GW,” Tom Kiernan, the American Wind Energy Association’s CEO, said in a statement issued Thursday.

“And more wind energy is coming, as the industry is well into investing $62 billion in new projects over the next few years that put us on the path to achieving 20 percent of the nation’s electricity mix in 2030,” Kiernan went on to state.

“As a result, wind is positioned to remain the largest renewable energy generator in the country for the foreseeable future.”

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