Power factor corrections could save 0.5% of global electricity, with $20/ton CO2 abatement costs at typical facilities in normal times, and 30% pure IRRs during energy shortages. They will also be needed to integrate more new energies into power grids. This 17-page note outlines the opportunity in capacitor banks, their economics and leading companies.
How will food and energy shortages re-shape liquid biofuels? This 11-page note explores four questions. Could the US re-consider its ethanol blending to help world food security? Could rising cash costs of bio-diesel inflate global diesel prices to $6-8/gal? Will renewable diesel expansion ambitions be dialed back? What outlook for each liquid biofuel in the energy transition?
Chinese coal provides 15% of the world’s energy, equivalent to 4 Saudi Arabia’s worth of oil. Global energy markets may become 10% under-supplied if this output plateaus per our ‘net zero’ scenario. Alternatively, might China ramp its coal to cure energy shortages, especially as Europe bids harder for renewables and LNG post-Russia? Today’s note presents our ‘top ten’ charts on China’s opaque coal industry.
China is 18% of the world’s people and GDP. But it makes c50% of the world’s metals, 60% of its wind turbines, 70% of its solar panels and 80% of its lithium ion batteries. Re-shoring is likely to be a growing motivation after events of 2022. This 14-page note explores resultant opportunities.
Electricity transmission matters in the energy transition, integrating dispersed renewables over long distances to reach growing demand centers. This 15-page note argues future transmission needs will favor large HVDCs, costing 2-3c/kWh per 1,000km, which are materially lower-cost and more efficient than other alternatives. What opportunities follow?
The carbon credentials of wood are not black-and-white. They depend on context. This 13-page note draws out the numbers and five key conclusions. They count against deforestation, in favor of using waste wood, in favor of wood materials (with some debate around paper) and strongly in favor of natural gas.
Contemporary Amperex Technology Co. Limited (CATL) is a Chinese battery manufacturer, HQ’ed in Fusian, founded in 2011, with >30,000 employees. It may produce as many as one-third of all the lithium ion batteries in the world. This data-file assesses whether it has made a breakthrough in sodium ion batteries.
Lithium shortages. Our review finds that CATL has been vocally warning of lithium shortages since 2016. Lithium demand rises 30x in the energy transition, per our own models here, while there are also challenges ahead for next-generation lithium extraction technologies.
However sodium comprises 2.7% of the Earth’s crust, versus Lithium’s 0.006%. In principle, sodium ion batteries can achieve comparable energy densities than lithium ion batteries, c80-90% round-trip efficiencies, similar temperature ranges and better safety. Hence in 2021, CATL announced it would be bringing a sodium-ion battery to market by 2023.
Technical challenges for sodium ion batteries are nicely illustrated in this data-file, which has simply reviewed a subset of CATL’s sodium ion battery patents. A core challenge recolves around innovating new anode and cathode materials that are adapted to sodium’s c30% wider diameter than lithium.
There are undoubtedly some exciting innovations in this patent library, especially around cathode materials. So can we de-risk the CATL sodium ion battery? If this was a standalone patent library, we might not be able to de-risk CATL’s 2023 target to produce sodium ion batteries at commercial scale.
Recent Commentary: please see our article here.
Direct Lithium Extraction from brines could help lithium scale 30x in the Energy Transition; with costs and CO2 intensities 30-70% below mined lithium; while avoiding the 1-2 year time-lags of evaporative salars. This 15-page note reviews the top ten challenges that decision-makers need to de-risk, in order to get excited within the fast-evolving DLE landscape.
Spot markets have delivered more and more ‘commodities on demand’ over the past half-century. But is this model fit for the energy transition? Many markets are now desperately short, causing explosive price rises. And sufficient volumes may still not be available at any price. So this 13-page note considers a renaissance for long-term contracts and who might benefit?
Global graphite volumes grow 6x in the energy transition, mostly driven by electric vehicles, while marginal pricing also doubles. We see the industry moving away from China’s near-exclusive control. The future favors a handful of Western producers, integrated from mine to anode, with CO2 intensity below 10kg/kg. This 10-page note concisely outlines the opportunity.