Energy Update: Week of September 23rd

Friends,

Welcome to Fall (officially). And nothing says Fall like football in The Big House on Saturday in Ann Arbor (or Happy Valley, Columbus, Tuscaloosa, Austin or any college towns around the country).  I was packed in with 107,000+ mostly yellow-clad (some were in blue for the stripe out) “friends” for USC-Michigan… and what a game with the Wolverines scoring a late TD to win it, 27-24.

We are out early today because of all the action this week in NYC Climate Week and UN General Assembly. It is a crazy week of action. I want to make sure you see the early week forums held by the Business Council for Sustainable Energy, a Reuters event today on Sustainable Aviation Fuel with Gevo CEO Pat Gruber and execs from Alaska Air and United, a Tuesday event from the US Chamber, the NYT’s Climate Forward Forum on Wednesday and a Thursday event a Cement industry event with LeadIt on overcoming the changes to decarbonize the industry. The Columbia Center on Global Energy Policy is hosting events addressing energy and climate policy, as is RMI and the Council on Foreign Relations, including one this morning at 10:45 am with IEA’s Executive Director Fatih Birol.

Also this morning, the Financial Times reported Western nations are directing their development finance and export credit agencies to work with private industry to support critical minerals projects, in a drive to break China’s chokehold over a sector that is essential for high-tech industries. The Minerals Security Partnership, a coalition of 14 nations and the European Commission, (lead by MINVEST, the US State Dept and SAFE initiative) will unveil a new financing network at an event in New York today as they try to ramp up international collaboration.  See much more below “In the News” and watch the announcement here at 9:30 a.m. this morning.

Don’t forget WaPo Live has John Kerry and several others in a web event TODAY at 2:00 pm. And If you want to jam during Climate Week, our friend and Heatmap reporter Jael Holtzman’s band Ekko Astral is playing NY’s Knockdown Center on Thursday night.

In DC it’s National Clean Energy Week (unfortunately, this is in the same week. Usually, they are in successive weeks.)  National Clean Energy Week will focus on policies, industries and innovations that power our daily lives while producing no or very little greenhouse gas emissions. Despite the very real technological and political challenges, a clean energy future is in our reach, and America is ready to lead the way. The event features the flagship Policymakers Symposium on the Wednesday and Thursday.

Also on Thursday on Capitol Hill, ACCF hosts a forum on Capitol Hill on shaping energy policy in the next Presidency and Congress featuring Reps. Buddy Carter (R-GA) and Scott Peters (D-CA) kick off the discussion, followed by a deep dive with industry leaders including SEIA’s Abigail Hopper, NEI’s Maria Korsnick, API’s Mike Sommers and AFPM’s Chet Thompson. My colleague Scott Segal moderates the power panel.

Speaking of Capitol Hill, they are still around trying to lock up a short-term spending bill to keep government open. Expect a three-month extension with no riders to launch this into the lame duck session.  Looks like last night they have the four corners of a deal through Dec 20, but don’t count the chickens just yet.  NJ’s Jeff DuFour writes with the new CR potentially expiring on Dec. 20, “the timing is significant: The two lengthiest shutdowns in modern U.S. history began on Dec. 15, 1995, and Dec. 22, 2018, each running well into the new year.”

I will be on the go this week, but I hope to catch you at climate and Clean energy events in NYC or DC this week. Call with any questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                

FRANKLY SPOKEN

“The announcement of the Minerals Security Partnership Finance Network is the latest of several critical steps MSP partners have taken to address the urgent, global need for critical minerals. The demands of the global energy transition are well documented. The collaboration of countries in the MSP and MSP Forum is how we meet them.”

United States Deputy Secretary of State Kurt Campbell announcing a major MINVEST initiative this morning to direct development finance and export credit agencies to work with private industry to support critical minerals projects at the UN General Assembly meetings and Climate Week.

“Today we come together with our international partners and allies, industry stakeholders, and financial titans to crystallize efforts to meet future mineral demand with transparency, integrity, and higher labor and environmental standards. MSP partner governments have already committed billions to this effort, but we need trillions to achieve these goals. MINVEST was created to activate the private sector’s resources and expertise, driving a collaborative path forward to secure the minerals that will define our future.”

Abigail Hunter, Executive Director of SAFE’s Center for Critical Minerals Strategy and the architect of MINVEST.

ON THE PODCAST

Volts talks Biden Energy Policy  – In this episode of Volts, host Dave Roberts explores the Biden administration's ambitious industrial investment strategy with Heather Boushey, a member of the President's Council of Economic Advisors and chief economist for his Invest in America Cabinet.

FUN OPINIONS

Grid Needs Improvements Now– In an op-ed in Utility Dive, SAFE’s Center for Grid Security head Danielle Russo writes the Energy Permitting Reform Act is the best shot at advancing critical climate goals. Russo says it would be a crucial step toward America realizing its potential as a clean energy superpower, but only if we can put our desires for a perfect policy aside and embrace practical compromise.

FROG BLOG

RFF Blogs Tackle Trends in Extreme Weather, Proactive Policy for Resilience– In a new special series of blog posts, experts at Resources for the Future examine trends in extreme weather, impacts on communities, and potential policy solutions. The full suite of blog posts by RFF Senior Fellow Margaret Walls and Fellow Yanjun (Penny) Liao starts by summarizing trends in the occurrences of extreme weather events and the damages caused by these events in recent decades. The second blog post assesses where extreme weather events tend to occur and identifies specific areas that have endured significant impacts from extreme weather. The third and final blog post offers broad recommendations for federal policy that can reduce the cost of extreme weather events.

FUN FACTS

Clean Energy Provisions Making Progress: 

IN THE NEWS

MINVEST Meeting Advances Collaboration of Global Public/Private Financial Institutions on Critical Mineral Supplies – Today, on the sidelines of the U.N. General Assembly, MINVEST—the Minerals Investment Network for Vital Energy Security and Transition, a public-private partnership between the U.S. Department of State and SAFE Center for Critical Minerals Strategy—hosted Minerals Security Partnership (MSP) partner governments with development finance institutions (DFIs) and export credit agencies (ECAs) in the announcement of a MSP Finance Network to strengthen cooperation and promote information exchange and co-financing among participating institutions to advance diverse, secure, and sustainable supply chains for critical minerals.

• National governments participating in the Mineral Security Partnership (MSP), private investors representing over $30 trillion in assets under management, and critical mineral industry leaders gathered during the UN General Assembly in New York for the inaugural convening of the MINVEST network.
• The global MSP consists of 14 member nations and the European Union, collectively committing to build diverse, secure, sustainable critical mineral supply chains. MINVEST, a project of the U.S. State Department and energy security think tank SAFE, leads on private sector engagement and supports the investment pillar of the MSP.

• Partners announced creation of the MSP Finance Network, advancing a commitment by all MSP member nations’ development finance institutions (DFIs) and export credit agencies (ECAs) to collaborate on investments in global mineral supplies.
• Engagement of ECAs and DFIs creates a more favorable investment environment for critical minerals projects that meet the MSP objectives.

The announcement opened the full-day MSP Finance Meeting with MINVEST members in Manhattan. In addition to representatives from all MSP member governments, and many DFIs and ECAs, the meeting included senior leaders and executives from financial institutions including BlackRock, Goldman Sachs, Citigroup, the Bank of Montreal, Appian Capital Advisory, Orion Resource Partners, government funds, Africa Finance Corporation and the African Export-Import Bank, and industrial players including Rio Tinto, General Motors and Anglo American. A full list of participating organizations is posted here.

Grid Operators Express Concerns about Reliability – The Biden-Harris administration says that its stringent power plant rules won’t harm long-term power reliability, but four grid operators stated the exact opposite in a legal brief filed last week. EPA finalized its aggressive emissions rules for America’s power plants in April, saying at the time that the regulations would “improve public health without disrupting the delivery of reliable electricity.” However, four major regional grid operators argued the exact opposite in an amicus brief filed in support of red states’ legal challenge against the rule, stating explicitly that the rules will jeopardize Americans’ ability to reliably secure sufficient amounts of power if they are enforced as is...Specifically, the EPA’s rules will mandate existing coal plants to harness 90% of their emissions by 2032 if they want to stay open past 2039, and they will also require new natural gas-fired plants to do the same in order to stay open past 2039, according to the agency. The EPA is essentially requiring power plants to meet those emissions cuts using carbon capture and sequestration (CCS) technology, which the four grid operators contend is too expensive and unproven to be mandated on such a tight timeline...Grid experts have similarly cautioned that the EPA’s rules will undermine power reliability at a time when electricity demand is expected to substantially increase due to de facto electric vehicle (EV) mandates and the rise of artificial intelligence (AI)."

Gevo Roll Continues with 45Z tax Credit Sale – It has been a busy few weeks for Gevo. Gevo acquired a North Dakota Ethanol plan with CCS for Ethanol-to-Jet Sustainable Aviation Fuel production and also announced a newly-granted patent for its ethanol to olefins (“ETO”) process. The patent further cements Gevo’s position as a leader in intellectual property (“IP”) surrounding bio-based renewable fuel and chemical production from alcohols that has the potential to lower capital and operating costs for producing chemicals, SAF and other fuels. Then, last week are announcing the sale of approximately $20 million in Investment Tax Credits to an undisclosed corporate buyer. This transaction monetizes Inflation Reduction Act Investment Tax Credits generated from the commercialization of a renewable natural gas production facility by Gevo NW Iowa RNG, LLC and provides net cash proceeds of approximately $17 million to Gevo after transaction fees. Gevo RNG has been optimized to produce approximately 400,000 MMBtus of RNG per year, and Gevo expects to further increase production over time. Additional RNG value could be unlocked through the monetization of Section 45Z Clean Fuel Production Credits under the IRA, once those rules are defined.

DOE Rolls Out $3B Investment In Battery Manufacturing – DOE’s Office of Manufacturing and Energy Supply Chains has awarded $3 billion in grants from Bipartisan Infrastructure Law funds.  Abigail Hunter, Executive Director of SAFE’s Center for Critical Minerals Strategy said:

“This is a much-needed investment in our domestic battery manufacturing capacity—a global industrial arena that will define our future competitiveness and energy security. We must be strategic and aggressive in our approach, and SAFE has urged for federal support for the full supply chain of mineral extraction, processing, advanced manufacturing, and recycling to establish the U.S. as a global player. We look forward to reviewing the list of beneficiaries and supporting public-private collaboration that serves the nation’s long-term interests.”

Plug to Support Methanol Project Through Leasing Agreement – Plug Power announced the establishment of an equipment leasing platform and is targeting over $150 million in the near to mid-term. This platform is intended to enable Plug to access capital by leveraging its equipment asset base and to provide equipment financing solutions to Plug’s customers to support equipment sales growth. As a first step in this platform, Plug signed three separate sale and leaseback transactions equivalent to $44 million with GTL Leasing. The sale and leaseback transactions include various gaseous and cryogenic assets such as trailers and storage tanks for the transport and storage of hydrogen molecules.

ON THE SCHEDULE THIS WEEK

UN General Assembly Summits Launch Climate Week – The 79^th session of the United Nations General Assembly will be held from this week, marking a crucial milestone in the global effort to accelerate progress towards the 17 Sustainable Development Goals (SDGs). Heads of State and Government will gather at UN Headquarters in New York on 22-23 September 2024 to address the critical challenges and gaps in global governance exposed by recent global shocks. This Summit aims to reaffirm commitments to the Sustainable Development Goals (SDGs) and the United Nations Charter while enhancing cooperation and laying the foundations for a reinvigorated multilateral system. It also includes the Summit of the Future, held during UNGA, underscores the urgent need for enhanced international cooperation to address pressing challenges such as climate change, poverty and inequality, while also tackling the impacts of ongoing conflicts and global health crises.

Climate Week Set – Climate Week NYC 2024 will take place this week in New York City. The event is hosted by the Climate Group in partnership with the United Nations General Assembly and the City of New York. The event's goal is to showcase climate action and discuss how to do more. It's considered the world's largest annual climate event, with over 600 in-person, hybrid, and online events and activities. The event will bring together leaders from business, tech, politics, academia, and civil society, as well as artists and activists.

Clinton Foundation to Discuss Climate, Environment Among Other Key Issues – The Clinton Foundation holds its annual Clinton Global Initiative meeting today and tomorrow. Speakers include EPA’s Michel Regan, NM Gov. Michelle Lujan Grisham, Matt Damon and many more.

Clean Energy Week Set for DC – The 8^th annual National Clean Energy Week will be held this week to 27^th to look at policies, industries, and innovations that power our daily lives while producing no or very little greenhouse gas emissions. Despite the very real technological and political challenges, a clean energy future is in our reach, and America is ready to lead the way. The event features the flagship Policymakers Symposium on the Wednesday and Thursday. For the first time since 2019, the Policymakers Symposium will be held fully in-person at The Conrad in Washington, D.C., with an online viewing option for remote attendees. The Symposium offers attendees the opportunity to network with like-minded professionals and hear from bipartisan leaders who are driving innovation and shaping the future of clean energy. Panel topics to include permitting reform; clean energy tax credits; rural communities and domestic manufacturing; offshore wind; liquid fuels; electric vehicles; hydrogen; nuclear; innovation; reducing industrial emissions; looking ahead to 2024 elections, 119th Congress and COP29; U.S. competitiveness, global leadership and supply chain security.

WaPo Event Features Kerry – As world leaders gather for the UN General Assembly, Washington Post Live will explore the course of climate change across all seven continents, one at a time in an event on today at 2:00 p.m. Speakers include former U.S. secretary of state John Kerry, managing director of the IMF Kristalina Georgieva, Germany’s state secretary and special envoy for international climate action Jennifer Morgan, CNN anchor and chief climate correspondent Bill Weir and many more.

Wilson Forum Looks at Ukraine Energy Grid – The Wilson Center's Global Europe Program holds a virtual discussion tomorrow at 10:00 a.m., on Ukraine's energy front. Volodymyr Kudrytskyi, the former CEO of Ukraine’s electric grid operator, will discuss the grave challenges facing Ukraine’s energy system for the upcoming winter and beyond as well as lessons for Ukraine and other nations going forward.

RMI Hosts Climate Week Event – Tomorrow at the Scandinavia House in NYC, RMI holds Climate Week NYC 2024 events with experts and partners in four sessions focused on how re-energizing the world through catalyzing innovative climate solutions. Panels include energy transition, reducing methane, clean industrial communities and a conversation on changing hearts and minds in the fight against climate change.

Chamber Hosts NatGas Forum – The U.S. Chamber of Commerce and the Asia Natural Gas and Energy Association hold an important energy transition discussion on the sidelines of New York City Climate Week tomorrow at 3:00 p.m. at the Sheraton New York Times Square. This event will focus on emissions reduction pathways in the Asia-Pacific Region and explore the role of natural gas in reducing emissions. The event will take place at the North American Climate Summit. Speakers include the Chamber’s Marty Durbin, Paul Everingham of the Asian Natural Gas and Energy Association, BP’s Asia Regional president Kathy Wu, Takahiro Ishikawa of Mitsubishi Heavy Industries America and Randy Bell of JERA Americas.

NYT Hosts Climate Forward Event – On Wednesday at The Times Center in New York City, The New York Times Climate Forward team holds a day of live journalism dedicated to understanding our rapidly warming world. The event will feature frank discussions about political and policy challenges. Speakers include White House climate advisor Ali Zaidi, NC Gov. Roy Cooper, Heritage’s Kevin Roberts, Occidental CEO

WaPo Also Hosts Wednesday Climate Event – On Wednesday at 4:00 p.m., Washington Post Live holds conversations with changemakers and visionaries about the innovations that could shape the future of our planet. As scientists, entrepreneurs and governments race to develop climate technologies, environmental experts say that the world could be on the cusp of a new green industrial revolution. Google’s James Manyika headlines the speakers.

Reps. Carter, Peters Headline ACCF Energy Policy Forum – On Thursday at 9:00 a.m. on Capitol Hill, ACCF hosts a forum on Capitol Hill on shaping energy policy in the next Presidency and Congress featuring Reps. Buddy Carter (R-GA) and Scott Peters (D-CA) kick off the discussion, followed by a deep dive with industry leaders including SEIA’s Abigail Hopper, NEI’s Maria Korsnick, API’s Mike Sommers and AFPM’s Chet Thompson.  My colleague Scott Segal moderates the power panel.

Cement Decarb Event Set for Climate Week – The Global Cement and Concrete Association and LeadIt are hosting a Climate Week side event on overcoming the changes to decarbonize the cement sector on Thursday at 10:30 a.m. at the Swedish-American Chamber of Commerce. The event will bring together established players and emerging technology providers in the cement industry, as well as financiers, academia, and governments, to discuss challenges for innovation and adoption of new technologies as well as policy and regulatory barriers from different company and technology perspectives. We would welcome your contribution.

FP Focuses on Sustainable Food – On Thursday at 12:30 p.m., Foreign Policy hosts an event at UNGA79 to hear from leading experts, scientists, policymakers, investors, and entrepreneurs who are building more sustainable food systems. The event will discuss measures to advance crop science and regenerative agriculture, enhance soil sustainability and nutrient density, and provide innovative financing and safety nets to bolster food system resilience.

CO School of Mines Global Energy Forum Set – On Thursday and Friday, the Colorado School of Mines hosts the Global Energy Leaders Summit focused on innovations to real world challenges facing the energy transition. The event will feature insights from global energy leaders, decision-makers and renowned Mines faculty and alumni. Our friend Morgan Bazilian, who heads the CSM’s Payne Institute, and Coterra CEO Tom Jorden are among the key speakers.

IN THE FUTURE

Illinois Renewable Energy Conference Set – The Illinois Renewable Energy Conference returns on October 1^st and 2^nd in Normal, IL. Renewable energy professionals, developers, policy makers, and educators will all gather to explore critical industry issues.

USEA Looks at AI, Utilities – The US Energy Association holds next virtual press briefing will explore the future of the utility business in the time of AI. The briefing, which is scheduled for Wednesday, Oct. 2, at 11 a.m. EDT, will touch on every aspect of AI in the utility going forward from vegetation control to nuclear fuel design and from managing complex grid relationships and the supply chain to load planning and personnel deployment.

Mineral Forum Set for Kennedy Center – Forum to take Deep Look at Minerals, Mineral, Clean Energy – The Earthshot Foundation and OurEnergyPolicy are hosting an exclusive gathering at the Kennedy Center on October 7^th for the Terranauts Minologues. The event features a select group of senior leaders in energy that will delve into the urgent issue of critical minerals and the evolving energy eco-system. This daylong event will feature stimulating presentations and dynamic panel discussions, marking the culmination of a yearlong inquiry into the security, supply chain and responsible mining challenges in ensuring a sufficient availability of essential materials for the future energy landscape.

ACP Powercast Looks at Reliability Challenges – ACP holds a PowerCast event featuring its VP of Markets & Transmission Carrie Zalewski on Thursday October 10^th at 8:30 a.m. to hear from industry experts about any policy changes that are needed to ensure reliability on an increasingly strained grid.

Gevo’s Gruber, Others to Headline Houston Infrastructure Forum – Leading SAF producer Gevo CEO Pat Gruber will headline US Energy Stream’s 7^th Energy Infrastructure Forum 2024 held on October 15^th-16^th at the Petroleum Club of Houston, TX. The Energy Infrastructure Forum brings powerful U.S. Congressmen from both sides of the aisle together with top energy executives and technology leaders to convene for off-the-record discussions and provide market intelligence on the latest energy infrastructure such as LNG infrastructure, hydrogen, ammonia and gas production, storage and transportation, O&G pipelines, power grids and power plants, renewable energy projects, carbon capture and storage, and nuclear SMR. Other speakers include Reps. Scott Peters (D-CA), Mariannette Miller-Meeks (R-IA), Paul Gosar (R-AZ) and many more.