THIS WEEK IN CLIMATE & CLEAN ENERGY WINS: WEEK OF 3/31

This week, companies are continuing to bring new clean energy projects to the U.S. market, thanks to the green subsidies in the administration’s affordable climate plan. Volvo CEO praised the Inflation Reduction Act in an interview for incentivizing tech companies to shift production to the U.S. Impulse labs and Channing Street Copper announced their plans to sell battery-powered appliances that will bring cost-effective storage to American homes while building the grid’s ability to store excess energy.

According to new data from the Energy Information Administration, renewable power generation exceeded coal-fired generation in the U.S. for the first time in 2022 – representing 21 percent of total generation. The Global Wind Energy Council also  predicts wind energy to grow rapidly in 2023, a 15 percent growth forecast year-over-year that could power over 657 million homes annually. Reuse of coal plants can cut small modular nuclear reactor development costs by 35 percent, with nearly 1/4 of the current U.S. coal-fired fleet retiring by 2029. 

The Biden administration focused on an international collaboration this week, reaching a trade agreement with Japan for minerals used in clean-energy technologies, particularly EVs. President Biden also met with Canadian Prime Minister Justin Trudeau last week, releasing a joint statement that affirms the two countries’ intent to promote collaboration on nuclear energy. The DOE released their strategy to accelerate and expand domestic offshore wind deployment, and the EPA announced $3 million to fund projects in Missouri and Nebraska that tackle climate pollution – funding available in all 50 states. 

Finally, states continue to see a generous windfall from the Inflation Reduction Act. In Arizona, LG announced a $5.5 billion expansion plan for their Queen Creek battery manufacturing plant. The Mayor said the project would create a positive ripple effect in the state, bringing local jobs, infrastructure and capital. President Biden kicked off his ‘Investing in America’ tour in North Carolina on Tuesday, visiting Wolfspeed, a semiconductor producer that recently announced a $5 billion investment to build a facility in Durham. 

Private Sector

• Arizona will see the positive ripple effects of LG’s $5.5 billion expansion plan for their battery plant in Queen Creek. [Arizona Central, 3/24/2023]
  • The company attributed its quadrupled budget in part to federal tax credits in the Administration’s clean energy plan.
  • The Mayor said the complex in her town will bring jobs, infrastructure, and capital investment to the region and the state.
• Volvo’s CEO credited the Inflation Reduction Act for incentivizing tech companies to shift production to the U.S. [Bloomberg, 3/28/2023]
  • This comes after Volvo announced plans to begin producing an electric SUV at Volvo’s plant in Charleston, South Carolina – expected to begin in 2023. 
• Impulse Labs and Channing Street Copper announced plans to sell battery-enabled appliances, using a cleaner than average battery with lithium-ion phosphate chemistry. [Washington Post, 3/28/2023]
  • These new appliances are expected to deliver low-cost energy storage at home while building the grid’s capacity to absorb clean, excess energy. 

New Reports

• Renewable power generation in the U.S. exceeded coal fired generation for the first time in 2022, according to data from the EIA. [Electrek, 3/27/2023]
  • Wind and solar represented 14 percent of total generation, up 2 percent from 2021. 
• A Bipartisan Policy Center study found that the reuse of retired coal plants can cut small modular nuclear reactor development costs by 35 percent. [Utility Dive, 3/28/2023]
  • Nearly 1/4 of the current U.S. coal-fired fleet is scheduled to retire by 2029, providing opportunities to site advanced nuclear plants, specifically small modular reactors, or SMRs. Re-using coal plant sites could also have labor force advantages, with 77 percent of jobs transferable to nuclear plants with no new workforce licensing requirements. 
• Wind energy will grow rapidly in 2023, with a 15 percent growth forecast year-over-year. [Associated Press, 3/27/2023]
  • The Global Wind Energy Council projected 680 GW of new onshore and offshore wind will be installed by 2027 – enough to power about 657 million homes annually.
  • The Council said that new incentives for renewable energy, such as the Inflation Reduction Act, will further expand renewable energy.
• Securing America’s Future Energy (SAFE) is releasing a report on China’s command of EV  supply chains and the U.S. clean energy plan’s potential role. [Bloomberg, 3/28/2023]
  • The Inflation Reduction Act , Wulf said, represents a “first critical step” toward the transparency SAFE is calling for. With the global transition to EVs still in its relative infancy, the group argues there’s still an opportunity to shape the future of this market and its impact on economies, geopolitics and the environment. The group urges the US to band together with the European Union and Japan and agree to only source minerals produced with high standards, arguing that the rest of the world would be forced to follow suit.

Biden Administration

• The Department of Energy released their strategy to accelerate and expand domestic offshore wind deployment. [Department of Energy Release, 3/29/2023]
  • It is a first-of-its-kind, comprehensive summary of the Department’s efforts to meet President Biden’s goal to deploy 30 gigawatts (GW) of offshore wind energy by 2030 and set the nation on a pathway to 110 GW or more by 2050.
• U.S. and Japan reached a trade agreement for minerals used in clean-energy technologies, particularly EVs.[Wall Street Journal, 3/28/2023]
  • “This is a welcome moment as the United States continues to work with our allies and partners to strengthen supply chains for critical minerals, including through the Inflation Reduction Act,” U.S. Trade Rep. Katherine Tai said. 
• The EPA announced $3 million to fund projects in Missouri and Nebraska that tackle climate pollution. [Environmental Protection Agency Release, 3/27/2023]
  • Through the CPRG program, all 50 states, District of Columbia, and Puerto Rico are eligible to receive $3 million in CPRG planning grants. The Missouri Department of Natural Resources (MoDNR) and the Nebraska Department of Environment and Energy (NDEE) will be provided with flexible planning resources to develop and implement scalable solutions that protect people from pollution and advance environmental justice.
• The U.S. Department of Energy and the Canada Department of Natural Resources released a joint statement on nuclear energy cooperation. [DOE, 3/27/2023]
  • Last week, President Biden and Prime Minister Justin Trudeau, met in Ottawa, Canada, affirming their intent to promote enhanced collaboration on nuclear energy and technology between the two countries. 
• The Biden administration announced new private and public sector investments for affordable electric vehicles. [The White House, 3/30/23]
  • Federal agencies acquired 13,000 zero emission vehicles and committed to deploying an additional 24,000 charging stations at federal facilities. Additionally they launched a station locator tool to help consumers charge EVs.

State-Level

• North Carolina welcomed President Biden on Tuesday to kick off his ‘Investing in America’ tour. [Spectrum News 1, 3/24/2023]
  • Biden traveled to Durham to visit Wolfspeed, a producer of semiconductors and their key components. Wolfspeed recently announced a $5 billion investment to build its NC facility and the creation of 1,800 jobs.