Energy

Al-Juaied and Whitmore examine the costs and prospects for direct air carbon capture and storage (DACCS), and identify types of funding needed for early deployment for DACCS and building momentum for later widespread deployment. The challenges of implementing DACCS at very large scale further emphasize the need for urgent and widespread action to reduce emissions, which should continue to be the main priority for meeting climate goals.

The attached document contains April 2022 updates to our database on U.S. government investments in energy research, development, demonstration, and deployment (ERD3) through the Department of Energy.

In late 2017, Mexico made headlines as Italian company Enel bid what was then a world-record low price for renewable energy in the country’s third such energy auction. This development was possible due to the historical and sweeping energy reforms passed with broad support in Mexico in 2013. Then-President Enrique Peña Nieto had succeeded where previous Mexican presidents had failed, reversing decades of resource nationalism and overhauling the energy sector through constitutional reforms that gave the private sector a larger role and advantaged renewable energy in Mexico’s economy. The 2017 auction seemed to indicate Mexico’s bright future not only as a conventional oil producer, but also as a clean energy power.

To accelerate the global transition to a low-carbon economy, all energy systems must be actively decarbonized. While hydrogen has been a staple in the energy and chemical industries for decades, clean hydrogen – defined as hydrogen produced from water electrolysis with zero-carbon electricity – has captured increasing political and business momentum as a versatile and sustainable energy carrier in the future carbon-free energy puzzle.

This paper analyzes clean hydrogen’s potential for driving emissions reductions in the mobility sector, focusing on road transportation, shipping, rail, and aviation. Overall, transportation is the second-largest producer of global CO2 emissions, after electricity and heat generation, and one of the hardest sectors to decarbonize due to its distributed nature and the advantages provided by fossil fuels in terms of high energy densities, ease of transportation and storage. 

Clean hydrogen is experiencing unprecedented momentum as confidence in its ability to accelerate decarbonization efforts across multiple sectors is rising. New projects are announced almost every week. For example, an international developer, Intercontinental Energy, plans to build a plant in Oman that will produce almost 2 million tons of clean hydrogen and 10 million tons of clean ammonia. Dozens of other large-scale projects and several hundred smaller ones are already in the planning stage. Similarly, on the demand side, hydrogen is gaining support from customers. Prominent off-takers such as oil majors like Shell and bp, steelmakers like ThyssenKrupp, and world-leading ammonia producers like Yara are working on making a clean hydrogen economy a reality.

Renewables are widely perceived as an opportunity to shatter the hegemony of fossil fuel-rich states and democratize the energy landscape. Virtually all countries have access to some renewable energy resources (especially solar and wind power) and could thus substitute foreign supply with local resources. Our research shows, however, that the role countries are likely to assume in decarbonized energy systems will be based not only on their resource endowment but also on their policy choices.

The Harvard Project on Climate Agreements co-sponsored a webinar on March 30, 2021: “The Future of Green India: Energy and Climate Change.” Hosting the event was the Lakshmi Mittal and Family South Asia Institute at Harvard University. The other co-sponsors were the Environment and Natural Resources Program in the Belfer Center for Science and International Affairs, Harvard Kennedy School — and the Harvard University Center for the Environment. The Harvard Global Institute provided support for the seminar and a larger project of which it is part.

In this report, we propose a market reform pathway for Yunnan that is both feasible and applicable to address some of these challenges immediately, while aiming for a standard design based on well-documented international experience. Our proposal includes at its heart a pay-for-performance monthly capacity auction that can help cover revenue deficiencies in the energy market. Building on international experience with capacity markets, this approach provides incentives for availability when generation is needed most and is compatible with the adoption of a single energy market for all electricity resources. Out-of-market payments to cover stranded costs of certain firms can thus be minimized. Finally, engaging consumers in both these energy and capacity markets can create high-powered incentives to shift consumption to low-cost months and hours, benefitting the entire province.

This study provides a whole-systems simulation on how to halve global CO2 emissions by 2050, compared to 2010, with an emphasis on technologies and costs, in order to avoid a dangerous increase in the global mean surface temperature by end the of this century.