Martin Bloom

The Royal Society and Royal Academy of Engineering have just published a report entitled "Towards a Green Hydrogen Roadmap for the UK. https://lnkd.in/gKCvpKgy Based on an expert workshop in January this year, the report describes the myriad roles green hydrogen could play in the economy, laying out in great detail what needs to happen in the near, medium and long term to summon this miracle into being. Amazingly, it does this without so much as a cursory look at how much it would cost, or looking at alternatives. That's right, there is no data or analysis WHATSOEVER on what green hydrogen costs to produce, transport, store, distribute, use and keep safe, or how much cheaper other solutions would be. I can lay out a wonderful vision for the role of luxury real estate, holidays and fast cars in my life if I don't have to mention their cost. The £ symbol appears just four times in the report, each time associated with funding set aside for subsidies in the UK: £400m in up-front investment support and £2bn in revenue support over 15 years. *So let's see how much hydrogen £2.4 billion of subsidy will actually deliver, and destroy this report with a back-of-envelope calculation.* The inaugural UK hydrogen auction last year revealed that subsidies of £9.49 per kg were required to get green hydrogen projects to happen. This is in line with figures for actual costs in other European countries. (An EU hydrogen auction cleared at a much lower price, but that was on top of other sources of funding, nowhere near enough to cover the full cost penalty of using green hydrogen.) Let's suppose that £9.48 figure can be reduced by a factor of three between now and 2030. That seems ambitious, based on everything I know, but let's go with it. You would still need £3 of subsidy per kg of hydrogen for each green hydrogen project. And since what you are doing is building electrolyser plants, storage, pipelines, etc, you need 15 years of funding committed up-front, because that's the way project finance works. So the current £2.4 billion of subsidies has to cover 15 years of hydrogen production, of which each kg requires £3 in subsidy, which means it gets you 2,400,000,000/15/3/1000 = 53,000 tons of hydrogen per year. Enough to clean up just 8% of the UK's existing grey hydrogen use! So you've spent £2.4 billion - some of which, by the way, you have taken away from Winter Heat Allowances for pensioners at enormous political cost - and you've cleaned up 8% of the UK's existing hydrogen use. YOU HAVEN'T DONE ANY OF THE COOL THINGS IN THE REPORT. How could this happen? Simple. The workshop was a gathering of vested interests in hydrogen. No one representing alternative pathways. No critical figures. A bunch of hydrogen, fuel cell, chemistry and combustion academics. No scrutiny by economists. Doh! * A huge, huge fail by The The Royal Society and Royal Academy of Engineering *

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🔋💡 A recent Cornwall Insight report commissioned by Telis Energy UK highlights the potential of hybrid clean energy hubs, which co-locate multiple low-carbon generation technologies, to alleviate grid connection bottlenecks. ⚡ By integrating three technologies, these energy hubs can optimize energy transfer to the grid, achieving generation rates of over 50% of the time—far exceeding the 11% for solar and 30-35% for wind power. ☀️🌬️ Read more 👇 https://lnkd.in/ekXU4JxD #greenenergy #grid #energy #Telis

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👇See below Promethean’s video demonstration of MOFs successfully capturing CO2 out of a gas mix, from 14-15% concentration down to normal air levels. A great snippet of the potential of MOFs!

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🔥🔥🔥 Welcome to the ZCC portfolio Exergy3 Limited! We were first introduced to Markus Rondé over two years ago by Edinburgh Innovations, so this one has been a slow burner. I'm so pleased that we can announce today that Exergy3 has become the 18th ZCC portfolio company. We're stoked by the potential of their electric, modular, high-temperature thermal storage to replace fossil fuel boilers in supplying industrial heat, which comprises a mind-boggling quarter of annual GHG emissions. Most of that energy is used to provide heat to the processes we use to make chemicals, food, materials and more to support our modern lives and almost all of that heat (especially at temperatures exceeding 200°C) is delivered by burning natural gas on site. Exergy3's innovative thermal batteries store heat at up to 1200°C and can be charged quickly when clean, cheap, renewable energy is available. They can store that heat with very low losses until it's needed, when electricity is expensive and dirty. 💰 We were joined in this round by Old College Capital and Scottish Enterprise, and the funds will help Exergy3 accelerate the development of their pilot project with the Annandale Distillery in Scotland. Read more on our blog: https://lnkd.in/ek_zcJTx Read the Exergy3 blog post: https://lnkd.in/eufeMnte

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Check out this chart from The Economist That is exponential growth in solar power installations! Good thing too, as AI is doubling in computing requirements every 5.7 months!

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Good article from James Lindsay on the important role that #familyoffices (plus corporate capital) play in helping to bridge the gap in scaling-up emerging technologies to accelerate the #energytransition, which often require significant upfront capital investment into #FOAK facilities. These FOAK plans often demand more risk capital than many early-stage #venturecapital funds can deploy, while also carrying more engineering, scale-up and offtake risk than most #infrastructure funds are prepared to take on for emerging #energytech, #foodtech, #climatetech, #carbontech, #oceantech, #materials, and most hard technologies. Builders Vision does a nice job articulating how there is an "incentive challenge" inherently present in the market today and that we need to reimagine how we finance FOAK plants and build new hybrid investment vehicles that combine the risk-adjusted return expectations of later stage project financing and infrastructure funds, with at least some of the upside that early-stage VCs seek when investing in emerging technologies. #catalyticcapital #blendedfinancing #energytransition #climatetech #climatefinance #energytech #decarbonization #hardtech #industrialinnovation

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While we are always looking for innovative ways to reduce carbon footprints, Octopus Energy group has come up with an innovative, if not unusual method of renewables storage - free electricity. The plan being trialled is in response to so-called curtailment, when the wind and solar produces more energy that can be loaded onto the grid. This can lead to renewable energy production being switched off, at a cost to the consumer of an estimated £800m during 2020-21. Learn more here: https://heyor.ca/07Jry8 #OctopusEnergy #RenewableEnergy #EnergyCurtailment

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The anti-cyclone combined with heavy cloud cover weather patterns provided much of Europe with low resource levels to energise both #wind and #solar over the first two weeks of November. There is a route to build predictable dispatch of electricity from the UK abundance of #tidal energy in the form of #tidalstream and #tidalbarage. Combined capacity is in the region of 45GW and works positively with #bess and #ldes solutions. The gif below shows the impact of spring and neap tides taking place every 7 days providing predictable dispatch 365 days of the year. If we are looking for joined up thinking to re-energise UK ports and heavy industries we have a small number of world leading UK players in this market to deliver power quickly in a short period relative to #nuclear. So what’s not to like? #positive #gva #positive #cost #benefit - #solving #dunkelflaute

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For every euro invested in renewables, the #EU needs to invest 50 cents into grid infrastructure. In Asia, I imagine that ratio will be higher, at least 1:1. Solar and wind capacity has grown to ~50% of #grid peak loads, and will edge towards 100% as renewables capacity increases. That represents a conservative investment of ~US$2.5 trillion ($2t for grids, $0.5t for storage) over the next decade, according to Wood Mac. #Renewables + older grids is like trying to eat soup with a teaspoon. Technically, it works, but if you could use a tablespoon or even a soup spoon (!) it'd be far more efficient. In Europe you might see #curtailment (energy that the grid can't use because of overcapacity - wasted energy) of ~2.5-3%, in China ~4%, in Vietnam that figure could be as high as 50% for some projects. Most developers expect/tolerate some curtailment (~3%), but the higher the curtailment the worse the projects economics - meaning financing is harder and/or more expensive. The obstacles and solutions are well-known. Better market designs, centralised planning, and an increase in the amount and speed of capital deployment (perhaps enhanced with private capital) can ensure that Asia's grids 1) accelerate electricity accesssibility, and 2) minimise any wastage.

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I am being asked why Hysata, our electrolyser portfolio company that has just raised a $111m Series B, is so special: 🔬 On the technical level, it avoids bubbles at the electrodes of the electrolyser by "mimicking trees" (Bloomberg). Who would have thought you could produce gas without creating bubbles? 💰 On the business level, this means the system is 20% more efficient. Great. But that also means it generates 10x (!) less heat and needs 20x (!) less liquid. That it turn means much less pumps, less cooling and heavy equipment, a much smaller footprint and the ability to build modular and scale the system up and down. - That's a paradigm shift coming. 🤯 Read more below:

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ENERGY STORAGE 🔋 A good piece in the Financial Times this morning regarding the need and important role Battery Storage is in our power and electricity eco system. Having spent the last number of years funding and developing a Battery storage business alongside our partners, there is so much opportunity in this space, and the resource is badly needed. The good news being there is finally now strong appetite from the investor and debt markets, however in N Ireland, like most other things across society, we remain the only region without a government backed subsidy scheme in the UK, and it's a challenging business model to get going for a whole ream of reasons, a lack of support merely adds to this. Some argue against subsidy schemes, however the CAPEEX and risk associated with these projects are all developer led, and this needs addressed as a matter of urgency. Most of us in the industry are aware of the capacity restrictions within our electricity network, which similar to the challenges facing our water and sewage infrastructure, needs a huge amount of investment. My own experience with planning was a much more pleasant experience, however beurocracy and delays need to be minimised if we want things to improve and get more projects into development, and out of the ground. FUNDING Battery storage is not for the faint hearted as our Irish Banking system are not interested. I reckon come 2040 some BD managers in the local banks may look at this type of opportunity 😭 Predominantly and initially this is an EQUITY play, certainly at the initial stages, with construction finance a challenge, however that is made easier if you can secure the golden ticket of a 10 year contract with the regulator. Most local developers operate and provide services into the shorter term DS3 markets, but with 12/ 18 month security of income, that's doesn't lend itself to the funding people you need on board. There is much to do in this sector locally, and the opportunity is real, but it would be hugely helpful if local government finally launch their new subsidy scheme, which by all accounts is coming (allegedly). In the FT piece you can see that across the world governments are 1.acknowledging the need for this resource 2. developing policy to enable and encourage development. #Battery #Storage #Development https://lnkd.in/ezWj26Ab

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For over two decades, the UK has been a key market for us — and we are dedicated to the country, with ambitious plans for deepening our engagement and making transformative investments.    With the announcement of a new Industrial Strategy focused on clean energy as a key growth sector, the new government wants to play a constructive, strategic role in the economy. Working in partnership with the private sector to drive forward its mission for economic growth and the ambitious plan to achieve clean power by 2030. This week’s International Investment Summit in London provided a valuable opportunity to discuss this with government officials, led by Prime Minister Keir Starmer and industry executives.    As the leading power generator and a leading renewables developer in the UK, we are already generating electricity for around 12 million homes with an installed capacity of almost 10 GW.     With 2.2 GW of renewables currently under construction across offshore and onshore wind, solar, and storage, we intend to invest around €8 billion net until the end of this decade in developing clean energy projects in the UK and further strengthening our presence. Meanwhile, we are helping to unlock a green economy in the UK by generating high-quality jobs, strengthening supply chains, and fostering thriving local communities.    I would like to thank everyone involved in the organisation of this excellent summit, as well as Prime Minister Keir Starmer, State Secretary Ed Miliband from the Department for Energy Security and Net Zero, and Jonathan Reynolds MP, Secretary of State for Business and Trade, Sarah Jones, Minister for Industry, and Eluned Morgan, First Minister of Wales, for the valuable exchange. 📷: Jonathan Brad /PA Images / Alamy Stock Photo

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Harnessing Solar Energy: A Smart Choice for UK Businesses! ☀️ At Solar4Business, we’re passionate about helping businesses thrive while making a positive impact on our planet. One of the most compelling reasons to consider solar energy? You can use the savings generated by your solar system to fund the cost of the installation! Here’s how it works: 1. Real Cost Savings: The energy savings can significantly offset your upfront investment, making solar not just sustainable but financially smart. 2. A Greener Future: By choosing solar, you’re investing in a sustainable world while enhancing your bottom line. Together, we can make a difference. 3. Energy Independence: Generate your own electricity and protect your business from unpredictable energy costs. It’s about taking control. 4. Supportive Incentives: Take advantage of grants and tax benefits that can make the transition to solar even more affordable. 5. Boost Your Brand: Going solar shows your commitment to sustainability, attracting eco-conscious customers and enhancing your brand image. Curious about how solar can benefit your business? Reach out to the team or me today to discuss your options and discover how we can help you start saving while contributing to a greener future. The future is bright, and we’re excited to help you shine! #SolarEnergy #Sustainability #RenewableEnergy #Solar4Business #UKBusiness

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Today, the Department for Transport (DfT), United Kingdom announced its guidance on the recent Sustainable Aviation Fuel (SAF) mandates, including new targets for ensuring 10% of all jet fuel in flights leaving the UK will come from sustainable sources by 2030. At OXCCU TECH LTD we’re particularly excited to see the PtL sub mandate in the guidance as it signifies the general acceptance of the key role these fuels will play in producing SAF at scale and in reducing global aviation emissions to meet global targets. With theoretically unlimited carbon dioxide feedstocks available, PtL technology provides the path to making low-cost, scalable alternatives to existing fossil based jet fuel products. And with the right funding and mandates in place, we can start building efuel plants in the UK. This announcement affirms the UK's position as a leader in sustainable aviation, and with the support of new technologies like OXCCU future generations can experience the continued use of hydrocarbon fuels but without their climate impact. #SAF #Regulation #EFuels #PtL

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Really pleased with the announcement today of VH Global Sustainable Investment Opportunities plc's #GSEO half year 2024 #results, specifically reflecting on the strong underlying performance of the #portfolio. This morning, on our analyst call, I articulated our views on the opportunities for #GSEO in light of increased #demand for electrons caused by the disruptive effect of generative #AI technology on the #energy landscape #globally. Something not fully articulated in recent years by our peers, for whom the role of #renewable #electrons was cast in predominantly #decarbonising our #homes, #industry and #transportation. At Victory Hill Capital Partners LLP we pride ourselves on understanding the whole picture, across different #technologies, #energymarkets and #geographies. Only then can we fully understand how we can enable our #investors to participate in differentiated returns and make a positive #sustainable #impact. #sustainableinvesting #esg #energytransition

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#UK power company Drax Group has set up a US subsidiary, Elimini, and plans to spend ~$12.5 billion to build five #carbon negative power plants in the US. The five plants will collectively generate 750MW of #electricity by burning #biomass while capturing their collective annual #carbonemissions of 7.5M tonnes. The process, known as #BECCS (bioenergy with carbon capture and storage), has the potential to annually generate $500M in #IRA tax breaks for Drax. While BECCS is not without its challenges and controversies, if successfully executed, it has the duel profit potential of selling power as well as #carboncredits. Learn more about Elimini and its plans here: https://elimini.com/ If you don't have the FT, read the Reuters article "UK’s Drax to invest up to $12.5 billion in US biomass power plants" here: https://lnkd.in/e4UWUPuY #sustainability #energytransition #CO2 #cleanenergy #decarbonization #decarbonisation #carboncapture #ccs #ccus #carbonremoval #unitedkingdom #bioenergy

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