EXTRACTED: Daily News Clips 1/10/25
PIPELINE NEWS
North Dakota Monitor: Landowners appeal Summit carbon storage decision
Bismarck Tribune: Sides settle in civil rights lawsuit surrounding Suburban snowbound during DAPL protest
Reuters: Kinder Morgan shuts two Los Angeles fuel pipelines due to power outages
CK News Today: First stage of new Enbridge Gas pipeline is complete
Community Impact: Bastrop County-based fuel supplier to swap trucks for pipeline to fuel Austin airport
Renewables Now: Lower Saxony to fund hydrogen pipeline project in North Sea
National Post: Film about impact of pipeline on Great Lakes watershed screening for free
WASHINGTON UPDATES
Washington Post: Trump’s Energy pick will have a confirmation hearing next week
Politico: Heinrich urges Lee to delay hearing for Trump's Energy nominee
E&E News: Western Caucus ready for big energy role under new leader
New York Times: U.S. efforts to cut emissions stalled in 2024 as power demand surged
E&E News: Mike Johnson quietly sought EPA environmental justice grant
STATE UPDATES
WHYY: Climate change attorneys say a Pa. statute could be used to prosecute fossil fuel companies
Oregonian: Oregon approves key permit for controversial biofuel refinery on Columbia River
Alaska Beacon: Interior agency rejects Hilcorp request for more time to develop Arctic Alaska offshore oil field
WHYY: PGW to offer free methane detectors to all customers as part of ‘landmark’ settlement
Gothamist: Albany already revising new antipollution law after gas industry pushback
City Limits: It’s a New Year, But NY’s Environmental Groups Are Fighting Old Battles
EXTRACTION
Institute for Energy Economics and Financial Analysis (IEEFA): Financial risks of carbon capture and storage in Canada
The Energy Mix: Pathways CCS Project Won’t Break Even Without Efficiency Gains, Steadier Revenue: IEEFA
Globe and Mail: Canadian Natural Resources still budgeting for carbon capture project despite Trudeau resignation
Canada's National Observer: Bill Gates-backed CO2 removal start-up to build solar-powered flagship in Alberta
Reuters: Putin says more needs to be done to clean up Black Sea oil spill
CLIMATE FINANCE
The Hill: BlackRock departs climate investment group
OPINION
Bloomberg: Five Energy Transition Lessons for 2025
Ars Technica: Coal likely to go away even without EPA’s power plant regulations
Green Central Banking: The green transition cannot wait for the US
New York Times: Utah Wants the Supreme Court to Give It Land Owned by All Americans
Washington Post: Falsehoods around the L.A. fires are proliferating on the right
PIPELINE NEWS
North Dakota Monitor: Landowners appeal Summit carbon storage decision
Jeff Beach, 1/9/25
“A group of North Dakota landowners is appealing the state’s approval of an underground carbon storage area for Summit Carbon Solutions, the company attempting to build the world’s largest carbon capture and storage project,” the North Dakota Monitor reports. “The group represented by Bismarck attorney Derrick Braaten on Thursday filed the appeal in Burleigh County District Court, asserting that the North Dakota Industrial Commission withheld information and violated state law in approving the storage permit plan on Dec. 12… “The unanimous vote by the commission means that landowners who had not signed an agreement with Summit will be forced to allow the carbon storage on their property. The landowners assert that the Industrial Commission, which includes the state Department of Mineral Resources, illegally refused to disclose information to landowners under North Dakota open records laws. Braaten and his clients were seeking computer-generated models that predict where the carbon dioxide will go when it is pumped underground for permanent storage… “Braaten contends the computer models aren’t accurate but landowners were not given a chance to dispute that. He said multiple requests for a rehearing were ignored… “Braaten also is representing the Northwest Landowners Association that has a separate lawsuit before the North Dakota Supreme Court on the amalgamation issue that he contends is unconstitutional. He told the Monitor a ruling on either that lawsuit or the storage decision appeal should clarify the constitutionality of the rules. Braaten’s law firm also is representing Emmons County in a separate legal challenge to the state Public Service Commission’s approval of the pipeline route through North Dakota.”
Bismarck Tribune: Sides settle in civil rights lawsuit surrounding Suburban snowbound during DAPL protest
Blake Nicholson, 1/10/25
“A federal civil rights lawsuit tied to a vehicle that was rented during the Dakota Access Pipeline protests was settled last year, nearly eight years after the Suburban became snowbound during a blizzard in south central North Dakota,” the Bismarck Tribune reports. “...Michael Wood told the Tribune that the settlement was "roughly a quarter million." “...Wood, of Glendale, Arizona, a former U.S. Marine and Baltimore police officer, rented a Suburban in 2016 when he came to Bismarck as part of an effort to bring hundreds of military veterans to a DAPL protest camp. The goal was to support opposition by tribes and environmentalists to the Energy Transfer oil pipeline being routed near the Standing Rock Reservation and under its Missouri River drinking water supply. The vehicle became snowbound in a blizzard and wasn't returned to the Hertz rental company. Wood was charged in January 2017 with felony theft and faced up to five years in prison if convicted… “Wood acknowledged returning the wrong set of keys for the Suburban but called it a mistake… “The Woods sued in March 2021, alleging that Hertz Corp. officials falsely accused Michael Wood of stealing the Suburban in retaliation for his social media criticism of the company's service or his support of the pipeline protest… “But the panel ruled that the Woods had presented enough evidence to possibly convince a jury of their claims of malicious prosecution, negligence, and negligent training and supervision. The case was sent back to federal court in Bismarck, and trial was scheduled for mid-November.”
Reuters: Kinder Morgan shuts two Los Angeles fuel pipelines due to power outages
Erwin Seba and Shariq Khan, 1/9/25
“Pipeline operator Kinder Morgan Inc said that two of its fuel pipelines in Los Angeles have been shut since Jan. 8 due to power outages, as the most destructive wildfires in the city's history continued to burn uncontained on Thursday,” Reuters reports. “The company said the 515-mile (828.8 km) SFPP West pipeline and 566-mile CALNEV pipelines are not directly impacted by the fires, and it expects them to resume service once power has been restored. "Yikes! That's how product gets to Phoenix, Las Vegas and San Diego," a West Coast fuel trader told Reuters on hearing of the shutdown.”
CK News Today: First stage of new Enbridge Gas pipeline is complete
Paul Pedro, 1/10/25
“The first phase of a new pipeline from Lakeshore to Chatham-Kent is now in service,” CK News Today reports. “It was complete in mid-December. Enbridge and the province said the Enbridge Gas Ontario's Panhandle Regional Expansion Project helps provide energy necessary to fuel growth in Southwestern Ontario, which is home to a world-leading greenhouse industry. The investment of more than $358 million in energy infrastructure will provide the increased capacity to support economic growth and development and stimulate an anticipated $4.5 billion in investments and local jobs, according to Enbridge and provincial officials… “The project includes 19 kilometers of new pipeline, 36 inches in diameter, alongside an existing corridor from Lakeshore to Chatham-Kent. Additional work on the project is scheduled to be completed this year, including construction at the nearby Dawn Hub, enabling connection to Ontario's underground natural gas storage facilities.”
Community Impact: Bastrop County-based fuel supplier to swap trucks for pipeline to fuel Austin airport
Amanda Cutshall, 1/9/25
“The largest transportation fuel supplier for Austin-Bergstrom International Airport, or ABIA, is gearing up to switch its fuel delivery system from more than 100 daily tankers driving a 40-mile round trip—each carrying 8,000 gallons of fuel—to a 10-inch, constantly flowing, underground pipeline,” Community Impact reports. “...Andy Saenz, public affairs regional manager, told Community Impact the current truck-based fuel delivery system operates under a “just in time” approach, which causes delays for airport passengers and Bastrop drivers. Those delays can range from traffic congestion to bad weather, not having enough drivers, and more; however, the pipeline would eliminate or reduce all of those concerns… “Fully funded by Flint Hills Resources, construction should take about six months and is expected to begin once permitting is completed in late 2025. The 20-mile pipeline will be 10 inches in diameter and buried 4 feet underground, utilizing public rights of way.”
Renewables Now: Lower Saxony to fund hydrogen pipeline project in North Sea
Tanya Ivanova, 1/10/25
“The state of Lower Saxony will provide EUR 60 million (USD 61.7m) to support the construction of an offshore hydrogen pipeline in the North Sea, the Hydrogen Network of Lower Saxony (NWN) said on Tuesday,” Renewables Now reports. “The project, called AquaDuctus, will be further backed by the federal government with EUR 140 million in funding. The AquaDuctus pipeline will be over 400 km (248.5 miles) long and will transport green hydrogen produced via offshore wind power to the mainland. The project is part of the larger initiative, AquaVentus, under which around 10 GW of electrolysis capacity is planned to be built offshore. This could enable the production of around 1 million tonnes of green hydrogen per year.”
National Post: Film about impact of pipeline on Great Lakes watershed screening for free
Anna Cabrera, 1/10/25
“Bad River: A Story of Defiance, a groundbreaking documentary about the ongoing concerns surrounding Enbridge’s controversial Line 5 pipeline and its impact on the Great Lakes watershed, is coming to Montreal and Toronto this winter, thanks to Sierra Club Canada and Indigenous Climate Action,” the National Post reports. “Scheduled for Jan. 30 at U of T Innes College and Feb. 1 at Montreal’s College Ahuntsic, the free screenings will also include panel discussions with members of the Bad River Band of Lake Superior Chippewa. Enbridge’s Line 5 pipeline would directly cross their territory. Jessica Murray, Line 5 Community Organizer and spokesperson for Sierra Club Canada, explains that “the Great Lakes are ancestrally stewarded between the Anishinaabeg and the Haudenosaunee. “This film centres in on Indigenous resistance and directly features the Bad River Band’s ongoing struggle with Enbridge, making visible what’s often buried in pipeline discussions.” “...The film screenings are hosted by the EndLine5 Coalition, a group of Canadian individuals and organizations mobilizing to end Line 5. The films are fully open to the public, so anyone who wants to learn more about the pipeline – or even better, to take action – can attend.”
WASHINGTON UPDATES
Washington Post: Trump’s Energy pick will have a confirmation hearing next week
Maxine Joselow, 1/9/25
“The Senate Energy and Natural Resources Committee announced Thursday that it will hold a confirmation hearing next week for Chris Wright, President-elect Donald Trump’s pick to lead the Energy Department,” the Washington Post reports. “The hearing will take place Wednesday starting at 10 a.m. Eastern, according to a news release. The committee will also hold a confirmation hearing Tuesday for former North Dakota governor Doug Burgum, Trump’s pick to lead the Interior Department and serve as “energy czar.” “...But at the confirmation hearing, Democrats are expected to blast Wright’s claim that there is no climate crisis — a claim at odds with the mainstream scientific consensus.”
Politico: Heinrich urges Lee to delay hearing for Trump's Energy nominee
Josh Siegel, 1/8/25
“Senate Energy and Natural Resources ranking member Martin Heinrich is warning Chair Mike Lee to wait to schedule a confirmation hearing for Chris Wright, President-elect Donald Trump’s pick for Energy secretary, until he receives all relevant paperwork,” Politico reports. “Heinrich, a New Mexico Democrat, sent a letter to Lee Wednesday night that urged the Utah Republican to follow the committee’s ‘longstanding precedence and take seriously your constitutional responsibilities’ by sharing final FBI background checks, financial disclosures and an ethics agreement before issuing a notice for a hearing for Wright, the CEO of fracking services company Liberty Energy.”
E&E News: Western Caucus ready for big energy role under new leader
Amelia Davidson, 1/9/25
“The Congressional Western Caucus has a new leader in California Republican Rep. Doug LaMalfa, who says he wants to make the group an energy policy force on Capitol Hill to help fulfill President-elect Donald Trump’s agenda,” E&E News reports. “The Western Caucus has long advocated for rural issues that deal with natural resources and public lands. LaMalfa, who stepped into the caucus chair role this month, says he now sees energy as the caucus’s top priority and is optimistic about opportunities to work with the White House once Trump is inaugurated… ”LaMalfa was previously a vice chair of the caucus.”
New York Times: U.S. efforts to cut emissions stalled in 2024 as power demand surged
Brad Plumer, 1/9/25
“One of the most striking findings in this year’s data was that emissions from oil and gas operations dropped roughly 3.7 percent in 2024,” the New York Times reports. “Even though the United States produced record amounts of oil and near-record amounts of natural gas last year, many companies appear to have curbed leaks of methane, which is the main ingredient in natural gas and which can seep into the atmosphere and contribute significantly to global warming. Over the past few years, the Biden administration and several states have adopted new regulations that require oil and gas producers to detect and fix methane leaks. Many companies also have financial incentives to capture methane to sell rather than vent it into the air… “On the one hand, it is notable that we’ve now seen two years in a row where the U.S. economy grew but emissions went down,” Ben King, an associate director at the Rhodium Group, told the Times. “But it’s far from enough to achieve our climate targets.” The biggest reason that U.S. emissions have fallen in recent years is that electric utilities have been retiring their older, dirtier coal-fired power plants and replacing them with cheaper and less-polluting natural gas, wind and solar power.”
E&E News: Mike Johnson quietly sought EPA environmental justice grant
Kelsey Brugger, 1/10/24
“House Speaker Mike Johnson urged EPA late last year to award a city in his district a grant focused on the environment and disadvantaged communities — funding from the Democrats’ climate law that Republicans have vowed to gut,” E&E News reports. “... In his letter, Johnson continued that the project “is designed to focus on water quality and sustainability … specifically targeting underserved communities in north Louisiana.” “...The letter — sent a week after the November election in which Republicans promised to undo Democrats’ major legislative victories — comes as the GOP and President-elect Donald Trump vow to repeal the climate law known as the Inflation Reduction Act… “Upon winning reelection as speaker last week, Johnson declared on the House floor that Republicans would “pass legislation to eliminate funding for the Green New Deal,” which has become shorthand for environmental programs and grants of all kinds. Asked how Johnson squares this apparent contradiction, an aide with his office told E&E, “Despite the liberal media working with a radicalized agency to spin their narrative, simply asking for fair consideration for the people members of Congress represent — in any method the federal government spends money — is in no way an expression of support for a horrible, disastrous bill that’s caused higher inflation and crushed the American people.”
STATE UPDATES
WHYY: Climate change attorneys say a Pa. statute could be used to prosecute fossil fuel companies
Susan Phillips, 1/10/25
“Could climate polluters face criminal charges in Pennsylvania for causing or risking a catastrophe? A new article published this month in the New York University Environmental Law Journal highlights a Pennsylvania statute that could be used as a unique legal strategy to hold large emitters of carbon dioxide accountable. But several lawyers say it could be a tough sell to prosecutors,” WHYY reports. “More than 2,000 legal cases related to climate change have been filed nationwide, including a lawsuit filed in March by Bucks County against BP. A landmark case decided in December by the Montana Supreme Court ruled the state was violating residents’ constitutional rights to a clean environment by not taking into account the impact of greenhouse gas emissions when permitting fossil fuel operations. None of these thousands of lawsuits filed in state, local and federal courts, however, cite criminal statutes. But the NYU law journal article, “Causing or Risking Climate Catastrophe,” relies on Pennsylvania’s criminal statutes and draws from a criminal case brought against the owner and manager of a nightclub on Pier 34 in Philadelphia, which collapsed into the Delaware River killing three women and injuring more than 40 people in 2000. “It’s a novel approach,” Aaron Regunberg, co-author of the article and head of the climate accountability program at the nonprofit Public Citizen, told WHYY. “We think it’s really appropriate and fits in well with the role of what prosecutors are supposed to do to seek justice for the victims of climate disasters and to proactively try to avoid these catastrophes moving forward.” The criminal statute Regunberg said applies is causing or risking a catastrophe, which is a second or third-degree felony in Pennsylvania. It’s also a crime in five other states, including New Jersey. The authors chose to write about Pennsylvania because it has solid case law to support it, Regunberg told WHYY… “But criminal charges for companies that have emitted C02, while knowing the consequences would be “catastrophic” may still be unused because of impracticalities and obstacles, according to several litigators who reviewed but did not participate in writing the law review article.”
Oregonian: Oregon approves key permit for controversial biofuel refinery on Columbia River
Gosia Wozniacka, 1/8/25
“Oregon environmental regulators gave a key stamp of approval to a proposed $2.5 billion biofuel refinery along the Columbia River despite continued opposition from environmental groups and tribes over potential impacts to the river and salmon,” the Oregonian reports. “The NEXT Energy refinery, also known as NXTClean Fuels, plans to manufacture renewable diesel and sustainable aviation fuel at the deepwater port of Port Westward, an industrial park on the outskirts of Clatskanie in Columbia County… “The Department of Environmental Quality on Tuesday approved a water quality certification for NEXT, allowing the Houston-based company to move forward with the project. The certification – marking the final comprehensive state review – is a requirement for the refinery to secure a federal permit from the U.S. Army Corps of Engineers… “Environmental groups have raised concerns in recent years about the impacts of biofuel production, storage and transportation, including deforestation, the displacement of food production and the significant greenhouse gas emissions from various biofuel sources… “The fuels will be shipped offsite via pipelines, trucks and railcars to markets worldwide. Environmental groups this week said state regulators “caved in” to pressure from the building trades, putting the river and people’s well-being at risk from possible spills… “NEXT’s documentation shows that the majority of its feedstocks will be from corn and soybean oil, which are purpose-grown feedstocks with a higher carbon footprint, and will be shipped to the facility on long trains,” Audrey Leonard, a staff attorney with Columbia Riverkeeper, a Portland-based environmental group focused on protecting the river that has fought the project for years, told the Oregonian. Columbia Riverkeeper and other opponents of the project also argue the refinery could damage water quality in the Columbia and its tributaries, including several area sloughs, and degrade local wetlands in the event of spills from the refinery and its railyard caused by accidents or a major earthquake.”
Alaska Beacon: Interior agency rejects Hilcorp request for more time to develop Arctic Alaska offshore oil field
Yereth Rosen, 1/8/25
“Federal regulators have rejected Hilcorp’s attempt to gain more time to develop Liberty, an offshore Arctic oil prospect that has languished since being discovered in the 1990s,” the Alaska Beacon reports. “The Bureau of Safety and Environmental Enforcement, an agency of the Department of the Interior, denied Hilcorp’s application for what is known as a “suspension of production,” or SOP. Such suspensions stop the permitting clock, effectively delaying development deadlines that are usually included in the terms of leases that companies have with the federal government. The federal BSEE action denied what would have been the 12th suspension granted to current or former Liberty leaseholders. It is the latest setback for a field that was once touted as a breakthrough in Arctic oil development but has remained undeveloped for decades. Without a suspension or some other type of extension, the Liberty leases are due to expire by the end of this year. But Hilcorp has not shown that it deserves such an extension, the denial letter said… “But to environmentalists, the denial is a victory. “This reckless offshore drilling project has been doomed from the start, and I hope this is finally the end of the Liberty fantasy,” Cooper Freeman, Alaska director at the Center for Biological Diversity, told the Beacon. “From poor planning and a lack of local support to high-risk bets and weak science, Liberty has been a terrifying fiasco. The bowhead whales, polar bears, and ice seals that rely on a healthy Arctic marine ecosystem would be severely threatened by this dangerous drilling project, and I’m glad the Interior Department agreed.”
WHYY: PGW to offer free methane detectors to all customers as part of ‘landmark’ settlement
Susan Phillips, 1/9/25
“In what the Pennsylvania Public Utility Commission calls a “landmark” settlement, Philadelphia Gas Works will offer free methane detectors to all customers as an “early warning system” to help prevent dangerous explosions from its aging infrastructure,” WHYY reports. “PGW has committed to spend up to $800,000 on the pilot project, which the PUC says is the first of its kind in the nation. The settlement stems from the December 2019 house explosion on the 1400 block of S. 8th Street in South Philadelphia that killed two people, required the evacuation of 60 residents, and caused an estimated $1.4 million in property damage. The source of the explosion that killed 28-year-old Brian Diu and his 65-year-old neighbor Rudi Kambong was a cracked cast iron gas main that had been installed in 1928 beneath the street in front of the incident site… “The settlement also has PGW agreeing to seek up to $125 million in federal grants to replace its cast iron mains.”
Gothamist: Albany already revising new antipollution law after gas industry pushback
Rosemary Misdary, 1/9/25
“New York Gov. Kathy Hochul signed a “climate superfund” law forcing the state’s biggest polluters to fund resiliency projects just two weeks ago — and legislators are already planning changes to bulletproof it ahead of expected legal challenges from the fossil fuel industry,” Gothamist reports. “The ambitious law targets about 40 of New York’s polluters and requires them to pay a combined $75 billion over the next 25 years. That money would be used to pay for damage caused by extreme weather, or fund climate-related projects like restoring parks after brush fires and upgrading sewer and subway systems to protect against flooding. Lawmakers in Albany plan to introduce a bill to amend the law later this month to adjust how the penalties on polluters are calculated and delay the date when enforcement will begin. “It does give more time, but let's be honest, there's a very good chance there'll be litigation on this anyway, so it'll take a few years,” state Assemblymember Jeffrey Dinowitz, a Democrat who represents parts of the Bronx, told Gothamist. “If it's going to take a little bit longer to get this thing done properly and to get it done right, then I'm fine with that.”
City Limits: It’s a New Year, But NY’s Environmental Groups Are Fighting Old Battles
Mariana Simões, 1/925
“As Donald Trump steps into the White House, the push to secure green programs and legislation that have been years in the making will be a top priority for environmental activists this legislative session,” City Limits reports. “...Stephan Edel, executive director of the environmental coalition NY Renews and others told City Limits the political climate creates more urgency to get old items that have long been on their climate agenda across the finish line. These big ticket policies are part of a larger plan to nearly phase out fossil fuels by 2050, as outlined by New York’s landmark climate law, the Climate Leadership and Protection Act (CLCPA). That means ironing out the details of a Cap-and-Invest program unveiled by Gov. Kathy Hochul two years ago that would put a price on carbon pollution. It also means passing groundbreaking bills to curb the use of oil and gas that failed to pass the last few legislative sessions. That includes a waste reduction bill that promises to limit the use of oil generated plastic packaging and the NY Heat Act, which has the power to deter the expansion of gas infrastructure across the state.”
EXTRACTION
Institute for Energy Economics and Financial Analysis (IEEFA): Financial risks of carbon capture and storage in Canada
Mark Kalegha, 1/9/25
“A plan to capture CO2 from 13 oil sand processing facilities and store it in Alberta is threatened by cost challenges,” according to the Institute for Energy Economics and Financial Analysis (IEEFA). “Total costs including interest, insurance, depreciation and taxes for existing commercial-scale carbon capture plants in Alberta are approaching thresholds that threaten profitability. There is a risk that the oversupply of carbon emission performance credits (EPCs) will reduce project revenues. Without substantial efficiency improvements, the cost per tonne of CO2 captured at the Pathways facility is likely to exceed the revenue that the project can generate for each tonne captured… “Given the scope of the project and its reliance on government subsidies for survival, it is likely Canadian taxpayers would be left to pay for the majority of the project for years to come. “The growing realization that carbon capture and storage projects are likely to require permanent government subsidies resets the discussion about the viability of CCS as a tool to effectively reduce carbon emissions,” said Mark Kalegha, IEEFA Energy Finance Analyst, Canada and author of the report. “Public funding of CCS is a costly gamble that may not yield tangible returns on Canada’s journey towards achieving net-zero emissions. This is a financial risk the government cannot afford.” “...The economics of CCS projects in general are shaky. If the cost to capture a tonne of carbon exceeds the revenue that can be expected to be generated from that process, then such a project cannot be said to be commercially viable. As has been seen in Canada and other jurisdictions with similar projects, there comes a point when the government support must stop. The result has been project closures and risk without yielding desired environmental or economic benefits. Alberta would be wise to take a closer look at this project, for the benefit of local communities and to avoid a bad investment.”
The Energy Mix: Pathways CCS Project Won’t Break Even Without Efficiency Gains, Steadier Revenue: IEEFA
Mitchell Beer, 1/10/25
“The Pathways Alliance’s C$16.5-billion carbon capture hub in northern Alberta won’t likely break even without “substantial efficiency improvements” and better revenue prospects, concludes the latest independent assessment of the troubled project,” The Energy Mix reports. “In a blistering analysis released Thursday, the Institute for Energy Economics and Financial Analysis (IEEFA) concludes that rising operating costs, uncertain revenues, an oversupplied market for emission credits, and stalled efforts to improve the technology could impede the plan to capture carbon dioxide from a dozen oil sands operations and store it underground at a repository in Cold Lake, Alberta… “That conclusion echoes a February, 2024 by energy analysts at Wood Mackenzie who warned that the Pathways project would likely be “scuppered” without continuing financial support from taxpayers. In the 11 months since, the Alliance has teased but not committed to a final investment decision on the hub, raising speculation that companies are holding out for even more generous public subsidies rather than committing their own money to the project. Their reticence may well reflect IEEFA’s conclusion that, “even under optimal conditions, the Pathways project may struggle to break even,” producing lasting economic stress for host communities and adding pressure for governments to bail the project out. And with CCS, “performance risk is financial risk,” the report adds. “Without substantial efficiency improvements, the cost per tonne of CO2 captured is likely to exceed the revenue that the project can generate for each tonne captured.” “...Around the same time, the Regina-based International CCS Knowledge Centre acknowledged it would be extremely difficult for CCS to meet a 2035 decarbonization deadline based on the current state of the technology. “This blows my mind,” IEEFA analyst David Schlissel said at the time. “It’s hypocritical. These guys have been hyping 90%, 95% capture, and now it’s, ‘well. we really can’t do it that fast, it’s not tested, it’s not certain’.” “...If operating costs rise at currently observed industry rates for the life of the project, then total cost per tonne of CO2 at the proposed facility would balloon to levels that make breakeven or profitability highly improbable.”
Globe and Mail: Canadian Natural Resources still budgeting for carbon capture project despite Trudeau resignation
Emma Graney, 1/10/25
“Canadian Natural Resources Ltd. has no plans to tear up its carbon capture budget, even as the future of the country’s emissions-reduction policies are in limbo after the resignation of Prime Minister Justin Trudeau,” the Globe and Mail reports. “The Calgary-based oil giant earmarked $90-million for carbon capture in its 2025 budget, released Thursday… “Although the federal government introduced investment tax credits to bolster the project, there is no final deal on funding from a federal financing agency called the Canada Growth Fund… “No matter what happens in Ottawa the company wants the Pathways carbon capture project to move forward, CNRL president Scott Stauth told an investor call Thursday morning. “We continue to focus on the fiscal side of things, in terms of all the parties coming together on this. So I think we’re a little bit more positive than you’re suggesting,” Mr. Stauth said. Mr. Stauth said money allocated to carbon capture in this year’s budget is primarily for engineering work for the Pathways project, as well as at the Scotford Upgrader outside Edmonton, and the company’s Horizon Oil Sands site and thermal oil sands properties. “We’re progressing these carbon capture projects on from an engineering perspective for 2025,” he said. The Canada Growth Fund is a $15-billion independent public fund created in 2023 by Ottawa to support carbon capture and other forms of clean technology, but its previous discussions with Pathways fizzled out before anything substantive was put on paper. Negotiations directly between Pathways and the federal government about carbon-capture financing, before Ottawa decided that it would leave such talks to the CGF, also proved fruitless.”
Canada's National Observer: Bill Gates-backed CO2 removal start-up to build solar-powered flagship in Alberta
Darius Snieckus, 1/10/25
“A futuristic-looking complex of giant white buildings that can pull carbon dioxide (CO₂) straight out of the air is set for switch-on in Alberta this spring, following a landmark power purchase agreement (PPA) between U.K. renewables developer Low Carbon and Canadian start-up Deep Sky,” Canada's National Observer reports. “The Deep Sky Alpha project, which is being powered fully by Low Carbon’s Lethbridge solar farm, will use direct air capture systems that look like giant extractor fans to “scrub” 3,000 tonnes of CO₂ a year from the atmosphere and inject it several kilometres underground. The project will provide a test bed for 10 different direct air capture technologies angling for commercialization, according to Deep Sky, which last year received a $40-million boost from Bill Gates’ Breakthrough Energy Catalyst clean tech fund to support the project’s development… “Wallace added that the Alberta complex was designed to compare competing direct air capture technologies for their ability to operate year-round in the Canadian climate before being stepped up to commercial-scale… “Though a high-cost technology today, with the price of removing one tonne of CO₂ ranging from $500 to $800, Deep Sky believes it can scale-up direct air capture to slash this figure to around $200/tonne.”
Reuters: Putin says more needs to be done to clean up Black Sea oil spill
1/9/25
“Russian President Vladimir Putin said on Thursday that more needed to be done to clean up an oil spill in the Black Sea, saying efforts so far appeared to have been insufficient to deal with the ecological disaster,” Reuters reports. “...Approximately 2,400 metric tons of oil products spilled into the sea, Russian investigators said last week, in what Putin on Thursday called "one of the most serious environmental challenges we have faced in years". Putin told a government meeting that the clean-up efforts had been poorly coordinated between regional and federal bodies. "From what I see and from the information I receive, I conclude that everything being done to minimise the damage is clearly not enough yet," the Kremlin leader told officials.”
CLIMATE FINANCE
The Hill: BlackRock departs climate investment group
Rachel Frazin, 1/9/25
“Asset management firm BlackRock is leaving a climate-focused investing group, the group confirmed,” The Hill reports. “We are disappointed to see any investor withdraw, but as a voluntary initiative, we respect any individual decisions signatories take,” a spokesperson for the Net Zero Asset Managers initiative told The Hill. “Climate risk is financial risk. NZAM exists to help investors mitigate these risks and to realise the benefits of the economic transition to net zero,” the group said… “However, Bloomberg obtained a client letter from the investor, which said that its membership in the net-zero group “caused confusion regarding BlackRock’s practices and subjected us to legal inquiries from various public officials.” “...BlackRock’s exit is particularly notable because of its prominence and its leading rhetoric on climate change. CEO Larry Fink declared in 2020 that climate change “has become a defining factor in companies’ long-term prospects.” “...House Republicans have previously accused BlackRock and other firms of being part of a “climate cartel.”
OPINION
Bloomberg: Five Energy Transition Lessons for 2025
Albert Cheung, Deputy CEO, Head of Global Transition Analysis, BloombergNEF, 1/9/25
“To work in clean energy and climate is to live in a constant state of cognitive dissonance, stuck between good news and bad,” Albert Cheung writes for Bloomberg. “...Yet, despite years of continuous and rapid acceleration, it is never enough. Each winter, BNEF analysts spend weeks crunching numbers only to conclude that global energy transition investment is running well below the level required to get on track for net zero by mid-century. This year the story is likely to remain unchanged. Such is the relentless logic of being on a growth curve that sits stubbornly below the curve you want to be on. The dissonance is even stronger this year and has many contributing factors, including the incoming Trump administration, the slowing growth of EVs, the struggles of Europe’s battery sector, the limited progress on hydrogen and industrial decarbonization, ongoing difficulties in the offshore wind sector, and the COP29 finance deal that left many countries underwhelmed. This sense of unease carries five important lessons that we should absorb as we begin a new year of work in the energy transition. 1. The energy transition won’t slow down… “But in reality, our latest estimates indicate that 2024 was a pretty strong year for clean energy deployment… “Newer technologies like clean hydrogen, and carbon capture and storage (CCS) have had a tougher year, but here we still see growth on the way. BNEF’s latest forecasts are for as much as 16 million metric tons of annual clean hydrogen production capacity to come online by 2030, up from nearly nothing today, and around 200 million metric tons per annum of CCS capacity to be installed by then. So even the hard-to-abate sectors will start to make progress… “4. A successful transition is a profitable one. It may be a blindingly obvious point, but the past year has reminded us that the energy transition will only succeed if clean energy investments generate risk-adjusted returns that meet the requirements of companies and their investors… “Against this backdrop, it is no wonder that a number of oil & gas companies have moved to limit their exposure to offshore wind… “A growing list of banks, including JPMorgan, Citi and RBC, have committed to publish their ratios of clean energy financing to fossil fuel financing, and BNP Paribas has set a target of 90% (or a 9:1 clean/fossil financing ratio) for 2030… “Policy makers are – knowingly or not – choosing a costlier transition, with the expectation that this will reap economic, security and political benefits… “Finally, many countries remain heavily dependent on fossil fuel imports that carry significant geopolitical and energy security risks. As they transition to a cleaner mix, these risks will recede, even if key energy transition technologies are imported.”
Ars Technica: Coal likely to go away even without EPA’s power plant regulations
John Timmer, 1/9/25
“...The latest effort seemed like the most aggressive yet, forcing coal plants to retire or install carbon capture equipment and making it difficult for some natural gas plants to operate without capturing carbon or burning green hydrogen,” John Timmer writes for Ars Technica. “Yet, according to a new analysis published in Thursday's edition of Science, they wouldn't likely have a dramatic effect on the US's future emissions even if they were to survive a court challenge… “Without the rules, the US grid's 2040 carbon dioxide emissions would end up between 60 and 85 percent lower than they were in 2005. With the rules, the range shifts to between 75 and 85 percent—in essence, the rules reduce the uncertainty about the outcomes that involve the least change… “Natural gas plants, the other major source of carbon emissions, would primarily respond to the new rules by operating less than 40 percent of the time, thus avoiding stringent regulation while still allowing them to handle periods where renewable power underproduces… “The IRA provides benefits for the deployment of carbon capture and the production of green hydrogen (meaning hydrogen produced without carbon emissions). But it's likely that, even with these credits, the economics wouldn't favor the use of these technologies when alternatives like renewables plus storage are available… "The rules ... can be viewed as backstops against higher emissions outcomes under futures with improved coal plant economics," the paper suggests, "which could occur with higher demand, slower renewables deployment from interconnection and permitting delays, or higher natural gas prices."
Green Central Banking: The green transition cannot wait for the US
Stuart Mackintosh is executive director of the Group of Thirty, an international financial think tank bringing together senior figures from central banking, the financial sector, and academia, 1/10/25
“A new year usually brings hope and resolutions to do better. 2025 is also causing alarm among climate analysts, economists, green tech firms, and employees. Why? Because incoming President Trump has regularly taken aim at the Biden green industrial policy and promises a dramatic reversal. Dismantling the paradigm-shifting $370bn green industrial policy laid out in the Inflation Reduction Act (IRA) would be a foolish act of national self-harm,” Stuart Mackintosh writes for Green Central Banking. “...What, too, of planned US investments in green tech: carbon capture and sequestration, hydrogen, battery plants, wind and solar, small nuclear reactors and much else? All these plans may be in doubt. Today, the investment atmosphere for green tech is stormy and uncertain; firms are scaling back and seeing worrying returns that were rosy only a year ago… “If the new US administration insists on walking backward, other countries and regions – including China, the EU, and the UK – must continue and speed up their net-zero transition plans. If that means carbon border adjustment tariffs against US sectors and firms, so be it. The green transition cannot wait for America.”
New York Times: Utah Wants the Supreme Court to Give It Land Owned by All Americans
John D. Leshy is an emeritus professor at the University of California College of the Law, San Francisco, and a former solicitor at the Department of the Interior. He is the author of “Our Common Ground: A History of America’s Public Lands,” 1/8/25
“No state in recent years has been more aggressive than Utah, home to some of the nation’s most magnificent landscapes, in trying to seize control of land owned by the federal government,” John D. Leshy writes for the New York Times. “In the ‘sagebrush rebellion’ of the late 1970s to the early 1980s, challenges by Utah and other Western states to the federal government’s ownership of vast swaths of land within their borders got no traction in Congress or the courts. More recently, claims of federal land grabs and colonialism have been mostly pushed by extremists, like those who seized control of a National Wildlife Refuge in Oregon for a few weeks in 2016. Now, with the U.S. Supreme Court firmly in the hands of a conservative majority, Utah’s leaders are making a Hail Mary move. The state is asking the court to bypass the lower federal courts, something it rarely does, to hear its argument that the federal government is required by the Constitution to transfer about half of the 37.4 million acres it owns in Utah to the state. The court is expected to decide whether to take up the matter in mid-January. Should it agree to consider the case and side with Utah, tens of millions of acres of land across the West now owned by all Americans could be opened to largely unregulated exploitation of its mineral, fossil fuel, timber and grazing resources.”
Washington Post: Falsehoods around the L.A. fires are proliferating on the right
Philip Bump, 1/9/25
“...There’s no real question that climate change contributed to what’s happening in Los Angeles,” Philip Bump writes for the Washington Post. “Over the past two decades, though, climate change has gone from a peripheral concern of scientists to a global problem to an issue that’s viewed through the lens of political partisanship. Taking action to combat climate change enjoyed a brief moment of bipartisan support, a unity that collapsed as Republican politicians leaned into rhetoric (stoked by fossil fuel companies) that downplayed the risk and accused the left of seeking to restrict American freedom rather than carbon dioxide emissions. The result by this point is that any declaration that the various examples of climate-change-linked disasters as being climate-change-linked is seen as a left-wing talking point. So the right, across its mouthpiece television channels and social media bubble, lines up for partisan warfare… “So Trump and his allies cherry-pick things that are unrelated to the struggle to contain the flames and present them as the real reasons that houses are burning down, particularly if those unrelated things serve as indictments of other perceived elements of left-wing politics… “So when actor James Woods, a prominent voice on right-wing social media, declares that the fires are because of “liberal idiots like Gavin Newsom and Karen Bass,” saying one of them “doesn’t understand the first thing about fire management and the other can’t fill the water reservoirs,” he is incorrect… “The hills were hot and dry and the winds were fierce and a small fire became multiple big ones very, very quickly. That reality isn’t going to get you many shares on social media or keep your cable news audience angry at your enemies, though. So the eye-rolling about “climate change” — here we go again! — becomes an effort for other explanations, however disconnected. It’s 2020 election denialism wearing a different outfit.”