This Week in Climate & Clean Energy Wins: Week of 10/14

FOR IMMEDIATE RELEASE
DATE: October 14, 2022
CONTACT: Erik Mebust, erik@climatepower.us

THREE NUMBERS TO KNOW:

• $28 Billion in private sector investment in clean energy in the two months since the Inflation Reduction Act passed
• $1.03 Billion in new climate program funding announcements from the administration
• 40% the amount rooftop solar installations increased in 2022 

The Inflation Reduction Act’s investments continued to power massive growth in the U.S. clean energy industry this week. Honda and LG Energy will build a $4.4 billion battery plant in Ohio, creating 2,200 jobs. Duke Energy announced its new 10-year plan, which includes a $40 billion investment in clean-energy generation to help it phase out coal by 2035.

Global investment in clean energy has surpassed upstream oil & gas for the first time, and a set of new reports shed light on how the Inflation Reduction Act is funneling a massive amount of that capital toward the U.S. clean energy industry. Private sector firms have invested at least $28 billion in domestic clean energy manufacturing projects in the 2 months since the Inflation Reduction Act was passed, including $11 billion for batteries alone. The battery sector was particularly mind blowing: 15 new projects have been announced in the U.S. since the beginning of 2021 compared to 6 in the previous 3 years, and the rate of investment is expected to grow fivefold by 2026. The craze has led the Dallas Fed to declare a new Battery Belt is being built across the Midwest and South.

Beneath this flurry of investment is a massive wave of consumer demand. Rooftop solar installations rose 40% this year as Americans seek to capitalize on the new energy savings and to protect themselves from climate-driven blackouts. U.S. EV purchases grew thirteenfold from 2012 to 2021. Clean energy projects are creating jobs in immigrant, Native, and historically coal burning communities across the country. Nasdaq reported that—particularly since passage of the Inflation Reduction Act—clean energy has outperformed the market, with solar showing a 10% return so far amid this year’s bear market.

The Biden administration continued rolling out funds and regulations to speed the transition and protect the climate. They announced $1 billion in funding for rural electricity projects, and $30 million to provide clean drinking water for underserved communities. President Biden also made Camp Hale – Continental Divide a national monument, and announced details of a new IRA program to preserve water in the Colorado River Basin.

Here’s the Facts: 

The private sector invested billions in domestic clean energy projects this week:

• Duke Energy to invest US$40 billion in zero-carbon generation in a 10-year plan to phase out coal by 2035. [PVTech, 10/10/2022]
  • Duke announced a $40 billion investment in zero-carbon electricity generation to reach its goal of 30GW of renewable energy generation by 2035, enough to replace Duke’s current coal facilities.
  • A further $75 billion investment will fund grid modernization to support integration of renewable energy, battery storage, and electric vehicles.
• Honda and LG Energy will build $4.4 billion battery plant in Ohio [Reuters, 10/11/2022]
  • Honda plans to begin American production and sales of EVs by 2026 to access tax incentives and grants from the Inflation Reduction Act.
  • The two companies’ initial investment will create 2,200 jobs.
• GM is launching a new green electric grid division. [Bloomberg, 10/11/2022]
• GM is working with SunPower to provide commercial and residential solar and storage systems.
• Service will begin next year in a pilot project with PG&E.

New reports show America is experiencing an economic and energy boom::

• New report found the Inflation Reduction Act spurred over $28 billion in new clean energy manufacturing. [Forbes, 10/12/2022]
  • Renewable energy manufacturing investments are projected to total $1.2 trillion by 2035, including a two-thirds increase in solar energy investments.
• Nasdaq found that solar companies wildly outperformed the rest of the economy this year with 10% returns so far. [Nasdaq, 10/6/2022]
• Rystad Energy found that for the first time, clean energy investments surpassed those in upstream oil and gas.

Inflation Reduction Act investments are spurring the creation of a “battery belt”:

• Dallas Fed finds evidence of a new “Battery Belt” amid investment boom. [Federal Reserve Bank of Dallas, 10/11/2022]
  • Automakers have invested $40 billion in domestic lithium-ion battery production in the past year.
  • U.S. battery investment is expected to grow fivefold by 2026 and another 86% by 2031.
  • Since the start of 2021, 15 new facilities or major expansions have been announced, compared to 6 from 2018 to 2020.
  • Manufacturing is concentrated in the Midwest and South, in what they call the new “Battery Belt.”
• The private sector invested $11 billion in domestic battery production in the two months following passage of the Inflation Reduction Act. [Automotive News 10/9/22]

The bill has reshaped the global electric vehicle market:

• The IRA has brought the first wave of EV onshoring. [Protocol, 10/11/2022]
• Audi considers first US plant, says the IRA had a “huge impact” on the decision. [Electrive.com, 10/11/2022] [Clean Technica, 10/12/2022] [Automotive News, 10/9/2022]
• Tesla Semi Looks Like a Bidenmobile Spurred by the Climate Bill [Bloomberg, 10/12/2022]
  • PepsiCo will receive the first delivery of Tesla’s electric semi trucks.
  • Musk previously said the Semi was on hold, but passage of the Inflation Reduction Act, which included a $40,000 incentive per truck, spurred progress.
• First US Cobalt Mining Operation to Begin After More Than 30-Year Hiatus [Bloomberg, 10/6/2022]

New reports find American consumers are adopting clean energy technology at unprecedented rates:

• Americans adding residential solar capacity to lower home energy prices and avoid blackouts [Financial Times, 10/8/2022]
  • Rooftop solar installations increased 40% this year as homeowners sought to mitigate higher utility bills.
  • Storms, heatwaves, and fires also laid bare electric grid vulnerabilities and resiliency benefits of rooftop solar.
• 2021 saw a 13-fold increase in US EV purchases from 2012. [Electrek, 10/6/2022]

The administration announced billions of dollars in funding to provide clean drinking water to disadvantaged communities and build energy systems in rural communities.

• Biden-Harris Administration Launches $1 Billion Bipartisan Infrastructure Law Program to Enhance Energy Systems in Rural and Remote Communities [Department of Energy press release, 10/12/2022]
• EPA Announces $30 Million in Grants for Projects to Reduce Lead in Drinking Water in Disadvantaged Communities and Schools [EPA press release, 10/11/2022]

The administration announced a set of new environmental regulations to protect Camp Hale, conserve water in the Colorado River Basin, and accelerate review for clean energy chemicals.

• FACT SHEET: President Biden Designates Camp Hale – Continental Divide National Monument [White House press release, 10/12/2022]
• Biden administration outlines plan to pay Colorado River water users to make cuts as crisis looms [CNN, 10/12/2022]
• EPA launches initiative to speed review of new chemicals for electric vehicle, clean energy sectors [UtilityDive, 10/7/2022]

Black, Native, and historically coal-burning communities are getting a boost in their long fight for climate and energy justice.

• Led by environmental justice activists, an Asian, Latino, and immigrant community in Brooklyn prepares for a wave of jobs in offshore wind. [Canary Media, 10/13/2022]
• With renewables, Native communities chart a path to energy sovereignty. [Canary Media, 10/10/2022]
• New reporting shows dozens of coal plants in Illinois, Louisiana, Hawaii, Massachusetts, and Minnesota have been or will be converted into clean energy plants. [Fast Company, 10/13/2022]

Aviation set a course for net zero:

• The 200 members of the U.N.’s aviation organization adopted an “aspirational goal” of zeroing out their net emissions by 2050. [AP, 10/7/22]
• Buttigieg calls for aviation to reach net zero emissions by 2050 [Twitter – @SecretaryPete, 10/7/2022]

EPA proposes endangerment finding for lead emissions from aircraft engines that operate on leaded fuel [EPA press release, 10/7/2022]