This Week in Climate & Clean Energy Wins: Week of 10/16/23

This week in private sector news, NovoHydrogen received a $20 million equity commitment from Modern Energy to continue leading the development of clean hydrogen. Perch Energy secured $30 million to expand its solar development services from investment company Nuveen, and Plus Power LLC raised $1.8 billion in funding for standalone battery storage that will stabilize the U.S. electrical grid and accommodate more solar and wind energy. 

New third-quarter numbers show that the U.S. experienced a 0.4% increase in electric vehicle manufacturing – signaling above-average performance. Additionally, banks are generating more revenue from loans to clean energy projects than fossil fuel projects. A report from the National Academies of Sciences, Engineering, and Medicine provides guidance to policymakers on how the U.S. can achieve net-zero emissions by 2050 with investments from federal initiatives like the Inflation Reduction Act. Recommendations include bans on new gas lines, more vital reduction targets for industrial sectors, workforce training, and financial market reforms. Rhodium Group and the Massachusetts Institute of Technology showed that U.S. clean energy investment rose 37% over the last year. Biden-era economic incentives are largely responsible for this growth. 

This week, on the Investing in America Tour, U.S. Secretary of Energy Jennifer Granholm visited West Virginia, Georgia, and Pennsylvania to spotlight how Biden’s economic policies are building clean communities and creating thousands of good-paying jobs across the nation. On Tuesday, the Biden Administration approved stricter pollution rules for commercial ships in California – home to the largest ports in the country. The new Environmental Protection Agency (EPA) rules will take effect in about a month. The Biden Administration launched a $3.5 billion initiative to improve the resilience of clean energy systems powering the American electric grid. The Department of Justice (DOJ) announced that their Environment and Natural Resources Division (ENRD) is bringing in three key attorneys general to translate federal environment justice strategy into action to fight emissions and pollution in the vulnerable communities they represent. The strategy is a key pillar of President Biden’s climate plan.

Lastly, Michigan is building a new $1 billion clean hydrogen hub that expects to bring thousands of jobs to the state. In California, Governor Newsom signed into law two new rules requiring companies doing business in California to track and report nearly all of their greenhouse gas emissions. In Nevada, Las Vegas will receive $15 million from the Inflation Reduction Act to add more trees and green spaces in the fight against climate change. In New York, the Federal Highway Administration approved plans to invest funding from the National Electric Vehicle Infrastructure Program in installing and operating additional fast electric vehicle (EV) charging stations, clearing the way for the state’s next EV charging allotment of $37.4 million. In Pennsylvania, the Appalachian Regional Commission awarded Catalyst Connection $10 million to support Pittsburgh’s small and mid-sized manufacturing companies  transitioning to green manufacturing. 

Private Sector

• Modern Energy announced a $20 million equity commitment to NovoHydrogen, a leading clean hydrogen developer. [Business Wire, 10/17/2023]  
  • NovoHydrogen aims to accelerate clean hydrogen adoption in the U.S., as 95% of current hydrogen production is still dependent on fossil fuels. 
• Perch Energy secured $30 million to expand its solar development services. [PV Tech, 10/16/2023] 
  • The investment will support the continued development of Perch Energy’s clean energy tech platform, fund expansion into new sales channels, products, community solar markets, scale operations, and customer care services.
• Plus Power LLC secured $1.8 billion for standalone battery storage to stabilize the U.S. electrical grid and accommodate more solar and wind energy. [Reuters, 10/18/2023]
  • The funding will funnel through five projects. This is in addition to the company’s announcement of $707 million for an energy storage facility in Arizona – making it the largest standalone energy storage project financing. 

New Reports

• Last month, the U.S. experienced above-average EV production,  rounding out the third quarter on a high note. [Reuters, 10/17/2023]
  • EV manufacturing output rose by 0.4% in September, according to the Federal Reserve. 
• Banks continue to generate more revenue from clean energy financing compared to their fossil fuel earnings. [Bloomberg, 10/18/2023] 
  • This year, banks have earned $2.5 billion from clean energy projects – three million more than oil and gas project yields.
• Net-zero emission goals for 2050 are within reach with the help of new federal investments. [Politico, 10/18/2023]
  • Hundreds of billions of dollars are being invested in clean energy, EVs, and batteries due to incentives in the Biden Administration’s clean energy plan.
• Clean energy investment in the U.S. has grown 37% over the last year. [PV Magazine, 10/17/2023] 
  • Since 2021, combined investment announcements in clean energy and electric vehicle manufacturing totaled $137 billion – five times the amount in 2019 and 2020.

Biden Administration

• U.S. Secretary of Energy Jennifer Granholm visits swing states to spotlight how Bidenomics investments are building clean communities and creating good-paying jobs. [White House, 10/5/2023]
  • The visits are the latest stops of the Biden Administration’s Investing in America Tour.
• The Biden Administration approved stricter pollution rules for commercial ships in California – a critical step in reducing harmful emissions in a state home to the nation’s largest ports. [Politico, 10/17/2023] 
  • California Air Resources Board (CARB) will begin enforcing the new EPA regulations in about a month.
• The Biden Administration launched a $3.5 billion initiative to bolster the American electric grid. [Politico, 10/18/2023]
  • Funds from the Bipartisan Infrastructure Law will be distributed to 58 projects across 44 states, intended to improve clean power system resilience.
• DOJ’s ENRD is enlisting the help of top attorneys general to fight pollution in vulnerable communities. [E&E News, 10/16/2023]
  • Mitzi Dease Paige, Matthew Silverman, and John Osborn have been called in to translate the DOJ’s federal environmental justice strategy into appropriate action to support the communities they represent.

State-Level  

• Michigan was tapped by federal energy regulators to build a new $1 billion clean hydrogen hub and develop regional supply chains for the fuel source. [MLive, 10/13/2023]
  • According to Governor Whitmire, the project will bring thousands of new jobs to the state. 
• Governor Newsom signed into law two new rules requiring the world’s largest private and public companies to track and report nearly all their greenhouse gas emissions in California. [PBS NewsHour, 10/15/2023]
  • Under the Climate Corporate Data Accountability Act, U.S. companies with annual revenues of $1 billion or more must report both their direct and indirect greenhouse gas emissions starting in 2026 and 2027.
  • The Climate-Related Financial Risk Act requires companies generating $500 million or more to report their financial risks related to climate change and their plans for risk mitigation.
• As part of the Inflation Reduction Act, the Biden Administration awarded $15 million in grants for Las Vegas to add trees and green spaces to help fight climate change. [FOX5, 10/17/2023]
  • Las Vegas is one of the fastest warming cities in the U.S. 
• The Federal Highway Administration approved New York’s plan to invest funding from the National Electric Vehicle Infrastructure Program in installing and operating additional fast charging stations. [Governor Kathy Hochul Website, 10/16/2023]
  • This means the state is now ready to receive its next allotment of $37.4 million to continue the buildout of EV chargers. 
• In Pittsburgh, The Appalachian Regional Commission awarded Catalyst Connection $10 million to support small and mid-sized manufacturing companies in transitioning to green manufacturing. [The Allegheny Front, 10/18/2023]