GT Solar hopes sun will come out this week

By Reuters


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GT Solar International Inc's initial public offering, expected to be the largest ever by a U.S. solar company, is facing a surprisingly cloudy outlook.

Despite red-hot industry growth, as the price of competing energy sources soars, investors have not shown a sunny disposition toward solar energy stocks lately.

The stocks of industry leaders Suntech Power Holdings Co Ltd and Applied Materials Inc, among others, have been cooling from March rally levels since late May. Suntech is down about 18 percent from its high in spring, while Applied Materials is down about 9 percent.

Those declines could cast a pall over GT Solar, a Merrimack, New Hampshire-based maker of the manufacturing equipment used by solar energy companies, whose IPO is scheduled for this week.

"It'll hurt that solar stocks have been volatile," said Samuel Snyder, a senior research analyst with Greenwich, Connecticut-based advisory firm Renaissance Capital. "But investors will see unique aspects that make GT Solar attractive."

One of those advantages is GT Solar's position as one of only a few makers of the manufacturing equipment used by the solar companies, analysts say.

"It's a less fragmented arena," said Pavel Molchanov, an alternative energy analyst with Raymond James & Associates. "The landscape is not quite as competitive."

GT Solar's regulatory filings also reveal a compound annual growth rate of 128 percent in the past two years that should comfort investors, with revenue of $244 million for the year that ended in March.

That growth rate explains why GT Solar would trade at 66 times 2007 earnings if the IPO priced at the midpoint of its forecast range, a high multiple compared with those of other solar stocks, said Scott Sweet, an analyst with IPO Boutique.

GT Solar's IPO is forecast to price in a range of $15.50 to $17.50, with a midpoint of $16.50 a share.

"Their growth is astronomical and they have a backlog, so it will support a higher price earnings ratio," Sweet said. In its filing, the company said it has an order backlog of $1.3 billion.

Other solar companies have widely varying multiples based on 2007 earnings, from a price/earnings ratio of nearly 36 for Suntech and 15 for Applied Technologies. First Solar Inc, one of the few solar stocks doing well lately, is trading at a multiple of nearly 200, while SunPower Corp's multiple is 60 and LDK Solar Co Ltd's is 26.

Investors are skittish about cutbacks to subsidies in Spain, a major market, and the uncertainty during an election year around the renewal of a U.S. federal tax credit set to expire in December and that has spurred industry growth.

The tight market for silicon, a key component in the process of turning sunlight into power, might hurt solar energy's economics, as could a sustained fall in oil prices.

While oil does not have a direct correlation to demand for solar power, since most electricity in the United States is generated from coal or natural gas, higher crude oil prices generally help boost investor interest in renewable energy.

Last year saw a spate of solar IPOs in the United States, including Chinese manufacturers LDK Solar and Yingli Green Energy Holding Co Ltd. In 2008, there has been only one solar IPO so far, Real Goods Solar Inc's modest $55 million debut in May.

Should GT Solar raise $500 million as planned when it goes public, the offering will be the largest-ever U.S. solar IPO and the sixth-largest U.S. IPO of the year overall, according to data from Dealogic. The company plans to list on the Nasdaq under the ticker "SOLR".

Even if solar subsidies were scaled back, the market has reached a maturity and viability that should reassure investors, analysts say.

"There is a disconnect between the fundamentals of the industry and how stocks are trading," Molchanov said.

"Solar adoption rates are still barely scratching the surface," he said, pointing to solar energy's 0.1 percent share of the U.S. electric power market, and the 3 percent share in Germany, by far the world's largest market.

According to data from research firm Global Markets Direct, solar energy was an $18 billion global industry in 2007, growing at a pace of about 35 percent per year in the last three years. In the United States, the $1.4 billion market is growing even more quickly, at a clip of 60 percent per year.

Ultimately, of course, how GT Solar performs at its debut may hinge on how the capricious markets are feeling that day, said Sal Morreale, who tracks IPOs for financial services firm Cantor Fitzgerald.

"In an environment like this, an IPO like GT Solar is day to day," he said.

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Learn how fees and usage impacts your electricity bill in new online CER tool

CER Interactive Electricity Bill Tool compares provincial electricity prices, fees, taxes, and usage. Explore household appliance costs, hydroelectric generation, and consumption trends across Canada with interactive calculators and a province-by-province breakdown.

 

Key Points

An online CER report with calculators comparing electricity prices, fees, and usage to explain household energy costs.

✅ Province-by-province bill, price, and consumption comparison

✅ Calculator for appliance and electronics energy costs

✅ Explains fees, taxes, regulation, and generation sources

 

Canadians have a new way to assess their electricity bill in a new, interactive online report released by the Canada Energy Regulator (CER).

The report titled What is in a residential electricity bill? features a province-to-province comparison of electricity bills, generation and consumption. It also explains electricity prices across the country, including how Calgary electricity prices have changed, allowing people to understand why costs vary depending on location, fees, regulation and taxes.  

Learn how fees and usage impacts your electricity bill in new online CER tool
Interactive tools allow people to calculate the cost of household appliances and electronic use for each province and territory, and to understand how Ontario rate increases may affect monthly bills. For example, an individual can use the tools to find out that leaving a TV on for 24-hours in Quebec costs $5.25 per month, while that same TV on for a whole day would cost $12.29 per month in Saskatchewan, $20.49 per month in the Northwest Territories, and $15.30 per month in Nova Scotia.

How Canadians use energy varies as much as how provinces and territories produce it, especially in regions like Nunavut where unique conditions influence costs. Millions of Canadians rely on electricity to power their household appliances, charge their electronics, and heat their homes. Provinces with abundant hydro-electric resources like Quebec, B.C., Manitoba, and Newfoundland and Labrador use electricity for home heating and tend to consume the most electricity.

By gathering data from various sources, this report is the first Canadian publication that features interactive tools to allow for a province-by-province comparison of electricity bills while highlighting different elements within an electricity bill, a helpful context as Canada faces a critical supply crunch in the years ahead.

The CER monitors energy markets and assesses Canadian energy requirements and trends, including clean electricity regulations developments that shape pricing. This report is part of a portfolio of publications on energy supply, demand and infrastructure that the CER publishes regularly as part of its ongoing market monitoring.

"No matter where you go in the country, Canadians want to know how much they pay for power and why, especially amid price spikes in Alberta this year," says lead author Colette Craig. "This innovative, interactive report really explains electricity bills to help everyone understand electricity pricing and consumption across Canada."

Quick Facts

  • Quebec ranks first in electricity consumption per capita at 21.0 MW.h, followed by Saskatchewan at 20.0 MW.h, Newfoundland and Labrador at 19.3 MW.h.
  • About 95% of Quebec's electricity is produced from hydroelectricity.
  • Provinces that use electricity for home heating tend to consume the most electricity.
  • Canada's largest consuming sector for electricity was industrial at 238 TW.h. The residential and commercial sectors consumed 168 TW.h and 126 TW.h, respectively.
  • In 2018, Canada produced 647.7 terawatt hours (TW.h) of electricity. More than half of the electricity in Canada (61%) is generated from hydro sources. The remainder is produced from a variety of sources, such as fossil fuels (natural gas and petroleum), nuclear, wind, coal, biomass, solar.
  • Canada is a net exporter of electricity. In 2019, net exports to the U.S. electricity market totaled 47.0 TW.h.
  • The total value of Canada's electricity exports was $2.5 billion Canadian dollars and the value of imports was $0.6 billion Canadian dollars, resulting in 2019 net exports of $1.9 billion.
  • All regions in Canada are reflected in this report but it does not include data that reflects the COVID-19 lockdown and its effects on residential electricity bills.
     

 

 

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As California enters a brave new energy world, can it keep the lights on?

California Grid Transition drives decarbonization with renewable energy, EV charging, microgrids, and energy storage, while tackling wildfire risk, aging infrastructure, and cybersecurity threats to build grid resilience and reliability across a rapidly electrifying economy.

 

Key Points

California Grid Transition is the statewide shift to renewables, storage, EVs, and resilient, secure infrastructure.

✅ Integrates solar, wind, storage, and demand response at scale

✅ Expands microgrids and DERs to enhance reliability and resilience

✅ Addresses wildfire, aging assets, and cybersecurity risks

 

Gretchen Bakke thinks a lot about power—the kind that sizzles through a complex grid of electrical stations, poles, lines and transformers, keeping the lights on for tens of millions of Californians who mostly take it for granted.

They shouldn’t, says Bakke, who grew up in a rural California town regularly darkened by outages. A cultural anthropologist who studies the consequences of institutional failures, she says it’s unclear whether the state’s aging electricity network and its managers can handle what’s about to hit it, as U.S. blackout risks continue to mount.

California is casting off fossil fuels to become something that doesn’t yet exist: a fully electrified state of 40 million people. Policies are in place requiring a rush of energy from renewable sources such as the sun and wind and calling for millions of electric cars that will need charging—changes that will tax a system already fragile, unstable and increasingly vulnerable to outside forces.

“There is so much happening, so fast—the grid and nearly everything about energy is in real transition, and there’s so much at stake,” said Bakke, who explores these issues in a book titled simply, “The Grid.”

The state’s task grew more complicated with this week’s announcement that Pacific Gas and Electric, which provides electricity for more than 5 million customer accounts, intends to file for bankruptcy in the face of potentially crippling liabilities from wildfires. But the reshaping of California’s energy future goes far beyond the woes of a single company.

The 19th-century model of one-way power delivery from utility companies to customers is being reimagined. Major utilities—and the grid itself—are being disrupted by rooftops paved with solar panels and the rise of self-sufficient neighborhood mini-grids. Whole cities and counties are abandoning big utilities and buying power from wholesalers and others of their choosing.

With California at the forefront of a new energy landscape, officials are racing to design a future that will not just reshape power production and delivery but also dictate how we get around and how our goods are made. They’re debating how to manage grid defectors, weighing the feasibility of an energy network that would expand to connect and serve much of the West and pondering how to appropriately regulate small power producers.

“We are in the depths of the conversation,” said Michael Picker, president of the state Public Utilities Commission, who cautions that even as the system is being rebooted, like repairing a car while driving in practice, there’s no real plan for making it all work.

Such transformation is exceedingly risky and potentially costly. California still bears the scars of having dropped its regulatory reins some 20 years ago, leaving power companies to bilk the state of billions of dollars it has yet to completely recover. And utility companies will undoubtedly pass on to their customers the costs of grid upgrades to defend against natural and man-made threats.

Some weaknesses are well known—rodents and tree limbs, for example, are common culprits in power outages, even as longer, more frequent outages afflict other parts of the U.S. A gnawing squirrel squeezed into a transformer on Thanksgiving Day three years ago, shutting off power to parts of Los Angeles International Airport. The airport plans to spend $120 million to upgrade its power plant.

But the harsh effects of climate change expose new vulnerabilities. Rising seas imperil coastal power plants. Electricity infrastructure is both threatened by and implicated in wildfires. Picker estimates that utility operations are related to one in 10 wildland fires in California, which can be sparked by aging equipment and winds that send tree branches crashing into power lines, showering flammable landscapes with sparks.

California utilities have been ordered to make their lines and equipment more fire-resistant as they’re increasingly held accountable for blazes they cause. Pacific Gas and Electric reported problems with some of its equipment at a starting point of California’s deadliest wildfire, which killed at least 86 people in November in the town of Paradise. The cause of the fire is under investigation.

New and complex cyber threats are more difficult to anticipate and even more dangerous. Computer hackers, operating a world away, can—and have—shut down electricity systems, toggling power on and off at will, and even hijacked the computers of special teams dispatched to restore control.

Thomas Fanning, CEO of Southern Co., one of the country’s largest utilities, recently disclosed that his teams have fended off multiple attempts to hack a nuclear power plant the firm operates. He called grid hacking “the most important under-reported war in American history.”

However, if you’ve got what seems like an insoluble problem requiring a to-the-studs teardown and innovative rebuild, California is a good place to start. After all, the first electricity grid was built in San Francisco in 1879, three years before Thomas Edison’s power station in New York City. (Edison’s plant burned to the ground a decade later.)

California’s energy-efficiency regulations have helped reduce statewide energy use, which peaked a decade ago and is on the decline, somewhat easing pressure on the grid. The major utilities are ahead of schedule in meeting their obligation to obtain power from renewable sources.

California’s universities are teaming with national research labs to develop cutting-edge solutions for storing energy produced by clean sources. California is fortunate in the diversity of its energy choices: hydroelectric dams in the north, large-scale solar operations in the Mojave Desert to the east, sprawling windmill farms in mountain passes and heat bubbling in the Geysers, the world’s largest geothermal field north of San Francisco. A single nuclear-power plant clings to the coast near San Luis Obispo, but it will be shuttered in 2025.

But more renewable energy, accessible at the whims of weather, can throw the grid off balance. Renewables lack the characteristic that power planners most prize: dispatchability, ready when called on and turned off when not immediately needed. Wind and sun don’t behave that way; their power is often available in great hunks—or not at all, as when clouds cover solar panels or winds drop.

In the case of solar power, it is plentiful in the middle of the day, at a time of low demand. There’s so much in California that most days the state pays its neighbors to siphon some off,  lest the excess impede the grid’s constant need for balance—for a supply that consistently equals demand.

So getting to California’s new goals of operating on 100 percent clean energy by 2045 and having 5 million electric vehicles within 12 years will require a shift in how power is acquired and managed. Consumers will rely more heavily on battery storage, whose efficiency must improve to meet that demand.

 

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How Electricity Gets Priced in Europe and How That May Change

EU Power Market Overhaul targets soaring electricity prices by decoupling gas from power, boosting renewables, refining price caps, and stabilizing grids amid inflation, supply shocks, droughts, nuclear outages, and intermittent wind and solar.

 

Key Points

EU plan to redesign electricity pricing, curb gas-driven costs, boost renewables, and protect consumers from volatility.

✅ Decouples power prices from marginal gas generation

✅ Caps non-gas revenues to fund consumer relief

✅ Supports grid stability with storage, demand response, LNG

 

While energy prices are soaring around the world, Europe is in a particularly tight spot. Its heavy dependence on Russian gas -- on top of droughts, heat waves, an unreliable fleet of French nuclear reactors and a continent-wide shift to greener but more intermittent sources like solar and wind -- has been driving electricity bills up and feeding the highest inflation in decades. As Europe stands on the brink of a recession, and with the winter heating season approaching, officials are considering a major overhaul of the region’s power market to reflect the ongoing shift from fossil fuels to renewables.

1. How is electricity priced? 
Unlike oil or natural gas, there’s no efficient way to save lots of electricity to use in the future, though projects to store electricity in gas pipes are emerging. Commercial use of large-scale batteries is still years away. So power prices have been set by the availability at any given moment. When it’s really windy or sunny, for example, then more is produced relatively cheaply and prices are lower. If that supply shrinks, then prices rise because more generators are brought online to help meet demand -- fueled by more expensive sources. The way the market has long worked is that it is that final technology, or type of plant, needed to meet the last unit of consumption that sets the price for everyone. In Europe this year, that has usually meant natural gas. 

2. What is the relationship between power and gas? 
Very close. Across western Europe, gas plants have been a vital part of the energy infrastructure for decades, with Irish price spikes highlighting dispatchable power risks, fed in large part by supplies piped in from Siberia. Gas-fired plants were relatively quick to build and the technology straightforward, at least compared with nuclear plants and burns cleaner than coal. About 18% of Europe’s electricity was generated at gas plants last year; in 2020 about 43% of the imported gas came from Russia. Even during the depths of the Cold War, there’d never been a serious supply problem -- until the relationship with Russia deteriorated this year after it invaded Ukraine. Diversifying away from Russia, such as by increasing imports of liquefied natural gas, requires new infrastructure that takes a lot of time and money.

3. Why does it work this way? 
In theory, the relationship isn’t different from that with coal, for example. But production hiccups and heatwave curbs on plants from nuclear in France to hydro in Spain and Norway significantly changed the generation picture this year, and power hit records as plants buckled in the heat. Since coal-fired and nuclear plants are generally running all the time anyway, gas plants were being called upon more often -- at times just to keep the lights on as summer temperatures hit records. And with the war in Ukraine resulting in record gas prices, that pushed up overall production costs. It’s that relationship that has made the surging gas price the driver for electricity prices. And since the continent is all connected, it has pushed up prices across the region. The value of the European power market jumped threefold last year, to a record 836 billion euros ($827 billion today).

4. What’s being considered? 
With large parts of European industry on its knees and households facing jumps in energy bills of several hundred percent, as record electricity prices ripple through markets, the pressure on governments and the European Union to intervene has never been higher. One major proposal is to impose a price cap on electricity from non-gas producers, with the difference between that and the market price channeled to relief for consumers. While it sounds simple, any such changes would rip up a market design that’s worked for decades and could threaten future investments because of unintended consequences.


5. How did this market evolve?
The Nordic region and the British market were front-runners in the 1990s, then Germany followed and is now the largest by far. A trader can buy and sell electricity delivered later on same day in blocks of an hour or even down to 15-minute periods, to meet sudden demand or take advantage of price differentials. The price for these contracts is decided entirely by the supply and demand, how much the wind is blowing or which coal plants are operating, for example. Demand tends to surge early in the morning and late afternoon. This system was designed when fossil fuels provided the bulk of power. Now there are more renewables, which are less predictable, with wind and solar surpassing gas in EU generation last year, and the proposed changes reflect that shift. 

6. What else have governments done?
There are also traders who focus on longer-dated contracts covering periods several years ahead, where broader factors such as expected economic output and the extent to which renewables are crowding out gas help drive prices. This year’s wild price swings have prompted countries including Germany, Sweden and Finland to earmark billions of euros in emergency liquidity loans to backstop utilities hit with sudden margin calls on their trading.

 

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Class-action lawsuit: Hydro-Québec overcharged customers up to $1.2B

Hydro-QuE9bec Class-Action Lawsuit alleges overbilling and monopoly abuse, citing RE9gie de l'E9nergie rate increases, Quebec Superior Court filings, and calls for refunds on 2008-2013 electricity bills to residential and business customers.

 

Key Points

Quebec class action alleging Hydro-QuE9bec overbilled customers in 2008-2013, seeking court-ordered refunds.

✅ Filed in Quebec Superior Court; certification pending.

✅ Alleges up to $1.2B in overcharges from 2008-2013.

✅ Questions RE9gie de l'E9nergie rate approvals and data.

 

A group representing Hydro-Québec customers has filed a motion for a class-action lawsuit against the public utility, alleging it overcharged customers over a five-year period.

Freddy Molima, one of the representatives of the Coalition Peuple allumé, accuses Hydro-Québec of "abusing its monopoly."

The motion, which was filed in Quebec Superior Court, claims Hydro-Québec customers paid more than they should have for electricity between 2008 and 2013, to the tune of nearly $1.2 billion, even as Hydro-Québec later refunded $535 million to customers in a separate case. 

The coalition has so far recruited nearly 40,000 participants online as part of its plan to sue the public utility.

A lawyer representing the group said Quebec's energy board, the Régie de l'énergie, also recently approved Hydro-Québec rate increases for residential and business customers without knowing all the facts, even as Manitoba Hydro hikes face opposition in regulatory hearings.

"There's certain information provided to the Régie that isn't true," said Bryan Furlong. "Hydro-Québec has not been providing the Régie the proper numbers."

In its motion, the group asks that overcharged clients be retroactively reimbursed.

Hydro-Québec denies allegations

Hydro-Québec, for its part, denies it ever overbilled any of its clients, while other utilities such as Hydro One plan to redesign bills to improve clarity.

"All our efficiencies have been returned to the government through our profits, and to Quebecers we have billed exactly what we agreed to bill," said spokesperson Serge Abergel, adding that the utility won't seek a rate hike next year according to its current plans.

Quebec Energy Minister Pierre Moreau also came to the public utility's defence, saying it has no choice but to comply with the  energy board's regulations, while customer protections are in focus as Hydro One moves to reconnect 1,400 customers in Ontario.

The group says the public utility has overbilled clients by up to $1.2 billion. (Radio-Canada)

It would be "shocking" if customers were charged too much money, he added.

"I know for a fact that Hydro-Québec is respecting the decision of this body," he said.

While the motion has been filed, the group cannot say how much each customer would receive if the class-action lawsuit goes ahead because it all depends on how much electricity was consumed by each client over that five-year period.

The coalition plans to present its motion to a judge next February.

 

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Carbon capture: How can we remove CO2 from the atmosphere?

CO2 Removal Technologies address climate change via negative emissions, including carbon capture, reforestation, soil carbon, biochar, BECCS, DAC, and mineralization, helping meet Paris Agreement targets while managing costs, land use, and infrastructure demands.

 

Key Points

Methods to extract or sequester atmospheric CO2, combining natural and engineered approaches to limit warming.

✅ Includes reforestation, soil carbon, biochar, BECCS, DAC, mineralization

✅ Balances climate goals with costs, land, energy, and infrastructure

✅ Key to Paris Agreement targets under 1.5-2.0 °C warming

 

The world is, on average, 1.1 degrees Celsius warmer today than it was in 1850. If this trend continues, our planet will be 2 – 3 degrees hotter by the end of this century, according to the Intergovernmental Panel on Climate Change (IPCC).

The main reason for this temperature rise is higher levels of atmospheric carbon dioxide, which cause the atmosphere to trap heat radiating from the Earth into space. Since 1850, the proportion of CO2 in the air has increased, with record greenhouse gas concentrations documented, from 0.029% to 0.041% (288 ppm to 414 ppm).

This is directly related to the burning of coal, oil and gas, which were created from forests, plankton and plants over millions of years. Back then, they stored CO2 and kept it out of the atmosphere, but as fossil fuels are burned, that CO2 is released. Other contributing factors include industrialized agriculture and slash-and-burn land clearing techniques, and emissions from SF6 in electrical equipment are also concerning today.

Over the past 50 years, more than 1200 billion tons of CO2 have been emitted into the planet's atmosphere — 36.6 billion tons in 2018 alone, though global emissions flatlined in 2019 before rising again. As a result, the global average temperature has risen by 0.8 degrees in just half a century.


Atmospheric CO2 should remain at a minimum
In 2015, the world came together to sign the Paris Climate Agreement which set the goal of limiting global temperature rise to well below 2 degrees — 1.5 degrees, if possible.

The agreement limits the amount of CO2 that can be released into the atmosphere, providing a benchmark for the global energy transition now underway. According to the IPCC, if a maximum of around 300 billion tons were emitted, there would be a 50% chance of limiting global temperature rise to 1.5 degrees. If CO2 emissions remain the same, however, the CO2 'budget' would be used up in just seven years.

According to the IPCC's report on the 1.5 degree target, negative emissions are also necessary to achieve the climate targets.


Using reforestation to remove CO2
One planned measure to stop too much CO2 from being released into the atmosphere is reforestation. According to studies, 3.6 billion tons of CO2 — around 10% of current CO2 emissions — could be saved every year during the growth phase. However, a study by researchers at the Swiss Federal Institute of Technology, ETH Zurich, stresses that achieving this would require the use of land areas equivalent in size to the entire US.

Young trees at a reforestation project in Africa (picture-alliance/OKAPIA KG, Germany)
Reforestation has potential to tackle the climate crisis by capturing CO2. But it would require a large amount of space


More humus in the soil
Humus in the soil stores a lot of carbon. But this is being released through the industrialization of agriculture. The amount of humus in the soil can be increased by using catch crops and plants with deep roots as well as by working harvest remnants back into the ground and avoiding deep plowing. According to a study by the German Institute for International and Security Affairs (SWP) on using targeted CO2 extraction as a part of EU climate policy, between two and five billion tons of CO2 could be saved with a global build-up of humus reserves.


Biochar shows promise
Some scientists see biochar as a promising technology for keeping CO2 out of the atmosphere. Biochar is created when organic material is heated and pressurized in a zero or very low-oxygen environment. In powdered form, the biochar is then spread on arable land where it acts as a fertilizer. This also increases the amount of carbon content in the soil. According to the same study from the SWP, global application of this technology could save between 0.5 and two billion tons of CO2 every year.


Storing CO2 in the ground
Storing CO2 deep in the Earth is already well-known and practiced on Norway's oil fields, for example. However, the process is still controversial, as storing CO2 underground can lead to earthquakes and leakage in the long-term. A different method is currently being practiced in Iceland, in which CO2 is sequestered into porous basalt rock to be mineralized into stone. Both methods still require more research, however, with new DOE funding supporting carbon capture, utilization, and storage.

Capturing CO2 to be held underground is done by using chemical processes which effectively extract the gas from the ambient air, and some researchers are exploring CO2-to-electricity concepts for utilization. This method is known as direct air capture (DAC) and is already practiced in other parts of Europe.  As there is no limit to the amount of CO2 that can be captured, it is considered to have great potential. However, the main disadvantage is the cost — currently around €550 ($650) per ton. Some scientists believe that mass production of DAC systems could bring prices down to €50 per ton by 2050. It is already considered a key technology for future climate protection.

The inside of a carbon capture facility in the Netherlands (RWE AG)
Carbon capture facilities are still very expensive and take up a huge amount of space

Another way of extracting CO2 from the air is via biomass. Plants grow and are burned in a power plant to produce electricity. CO2 is then extracted from the exhaust gas of the power plant and stored deep in the Earth, with new U.S. power plant rules poised to test such carbon capture approaches.

The big problem with this technology, known as bio-energy carbon capture and storage (BECCS) is the huge amount of space required. According to Felix Creutzig from the Mercator Institute on Global Commons and Climate Change (MCC) in Berlin, it will therefore only play "a minor role" in CO2 removal technologies.


CO2 bound by rock minerals
In this process, carbonate and silicate rocks are mined, ground and scattered on agricultural land or on the surface water of the ocean, where they collect CO2 over a period of years. According to researchers, by the middle of this century it would be possible to capture two to four billion tons of CO2 every year using this technique. The main challenges are primarily the quantities of stone required, and building the necessary infrastructure. Concrete plans have not yet been researched.


Not an option: Fertilizing the sea with iron
The idea is use iron to fertilize the ocean, thereby increasing its nuturient content, which would allow plankton to grow stronger and capture more CO2. However, both the process and possible side effects are very controversial. "This is rarely treated as a serious option in research," concludes SWP study authors Oliver Geden and Felix Schenuit.

 

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Growing pot sucks up electricity and pumps out an astounding amount of carbon dioxide — it doesn't have to

Sustainable Cannabis Cultivation leverages greenhouse design, renewable energy, automation, and water recapture to cut electricity use, emissions, and pesticides, delivering premium yields with natural light, smart sensors, and efficient HVAC and irrigation control.

 

Key Points

A data-driven, low-impact method that cuts energy, water, and chemicals while preserving premium yields.

✅ 70-90% less electricity vs. conventional indoor grows

✅ Natural light, solar, and rainwater recapture reduce footprint

✅ Automation, sensors, and HVAC stabilize microclimates

 

In the seven months since the Trudeau government legalized recreational marijuana use, licensed producers across the country have been locked in a frenetic race to grow mass quantities of cannabis for the new market.

But amid the rush for scale, questions of sustainability have often taken a back seat, and in Canada, solar adoption has lagged in key sectors.

According to EQ Research LLC, a U.S.-based clean-energy consulting firm, cannabis facilities can need up to 150 kilowatt-hours of electricity per year per square foot. Such input is on par with data centres, which are themselves 50 to 200 times more energy-intensive than a typical office building, and achieving zero-emission electricity by 2035 would help mitigate the associated footprint.

At the Lawrence Berkley National Laboratory in California, a senior scientist estimated that one per cent of U.S. electricity use came from grow ops. The same research — published in 2012 — also found that the procedures for refining a kilogram of weed emit around 4,600 kilograms of carbon dioxide to the atmosphere, equivalent to operating three million cars for a year, though a shift to zero-emissions electricity by 2035 could substantially cut those emissions.

“All factors considered, a very large expenditure of energy and consequent ‘environmental imprint’ is associated with the indoor cultivation of marijuana,” wrote Ernie Small, a principal research scientist for Agriculture and Agri-Food Canada, in the 2018 edition of the Biodiversity Journal.

Those issues have left some turning to technology to try to reduce the industry’s footprint — and the economic costs that come with it — even as more energy sources make better projects for forward-looking developers.

“The core drawback of most greenhouse environments is that you’re just getting large rooms, which are harder to control,” says Dan Sutton, the chief executive officer of Tantalus Labs., a B.C.-based cannabis producer. “What we did was build a system specifically for cannabis.”

Sutton is referring to SunLab, the culmination of four years of construction, and at present the main site where his company nurtures rows of the flowering plant. The 120,000-square foot structure was engineered for one purpose: to prove the merits of a sustainable approach.

“We’re actually taking time-series data on 30 different environmental parameters — really simple ones like temperature and humidity — all the way down to pH of the soil and water flow,” says Sutton. “So if the temperature gets a little too cold, the system recognizes that and kicks on heaters, and if the system senses that the environment is too hot in the summertime, then it automatically vents.”

A lot is achieved without requiring much human intervention, he adds. Unlike conventional indoor operations, SunLab demands up to 90 per cent less electricity, avoids using pesticides, and draws from natural light and recaptured rainwater to feed its crops.

The liquid passes through a triple-filtration process before it is pumped into drip irrigation tubing. “That allows us to deliver a purity of water input that is cleaner than bottled water,” says Sutton.

As transpiration occurs, a state-of-the-art, high-capacity airflow suspended below the ceiling cycles air at seven-minute intervals, repeatedly cooling the air and preventing outbreaks of mould, while genetically modified “guardian” insects swoop in to eliminate predatory pests.

“When we first started, people never believed we would cultivate premium quality cannabis or cannabis that belongs on the top shelf, shoulder to shoulder with the best in the world and the best of indoor,” says Sutton.

Challenges still exist, but they pale in comparison to the obstacles that American companies with an interest in adopting greener solutions persistently face, and in provinces like Alberta, an Alberta renewable energy surge is reshaping the opportunity set.

Although cannabis is legal in a number of states, it remains illegal federally, which means access to capital and regulatory clarity south of the border can be difficult to come by.

“Right now getting a new project built is expensive to do because you can’t get traditional bank loans,” says Canndescent CEO Adrian Sedlin, speaking by phone from California.

In retrofitting the company’s farm to accommodate a sizeable solar field, he struggled to secure investors, even as a solar-powered cannabis facility in Edmonton showcased similar potential.

“We spent over a year and a half trying to get it financed,” says Sedlin. “Finding someone was the hard part.”

Decriminalizing the drug would ultimately increase the supply of capital and lower the costs for innovative designs, something Sedlin says would help incentivize producers to switch to more effective and ecologically sound techniques.

Some analysts argue that selling renewable energy in Alberta could become a major growth avenue that benefits energy-intensive industries like cannabis cultivation.

Canndescent, however, is already there.

“We’re now harnessing the sun to reduce our reliance on fossil fuels and going to sustainable, or replenishable, energy sources, while leveraging the best and most efficient water practices,” says Sedlin. “It’s the right thing to do.”

 

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