Green, ethical, energy issues in the news

Coastalwatch

Good to see that recycling is actually taking place via an industrialised process with plans to expand to other sites in future. Let's hope it lives up to current expectations.

Battery recycling startup Cylib opens pilot plant

German recycling startup Cylib has made impressive strides towards industrialisation as it opens a pilot plant in Aachen less than a year after announcing the plans. The facility now recycles 500 kilos of battery materials a day and is the first phase of a much larger implementation.

As with previous announcements, the exact workings remain unknown. Cylib only speaks of a “disrupting process” that recovers all elements contained in batteries, such as cobalt, nickel and copper. The disrupting part is likely in the water-based recovery of lithium and graphite, which “drastically reduces the use of additives and acids,” according to Cylib.

https://www.electrive.com/2023/09/07/battery-recycling-startup-cylib-opens-pilot-plant/

Coastalwatch

Recycling of a less invasive nature continues to take place as with the examples mentioned below.

This is yet the smallest second-life for Nissan Leaf batteries

Nissan is using old Leaf batteries in portable power packs developed with electronics maker JVCKenwood and 4R Energy, a company owned by Nissan and Sumitomo, which works on power storage systems. The “portable power stations” can provide emergency support or simply power gadgets.

Each 4.4-kilogram (32-pound) power station contains only two modules from a Leaf battery, making for a small box; each full-size EV carries 48 battery modules.

In the Netherlands, the Amsterdam Arena is powered by Leaf batteries with a 2.8 MWh battery storage system. The list could go on.

https://www.electrive.com/2023/09/07/this-is-yet-the-smallest-second-life-for-nissan-leaf-batteries/

Martyn1981

More news on the recent CfD 'failure' for offshore wind, and the huge industry related inflationary rises that Michaels reported on. As he stated, the CfD mechanism takes account of general inflation, by index linking prices, which are set at a 2012 baseline.

But the general inflation rise figure, doesn't reflect the massive increase in certain industry specific areas, such as energy, transport, steel etc.. Much in the way that we saw a ~11% increase in inflation last year, but our energy bills more than doubled (100%+ inflation).

I think it's almost heartbreaking to see the auction failure, as 5GW of offshore wind, would have delivered around 2.5GW of generation (at a 50 capacity factor), or around 7% of our leccy based on 2.5GW/35GW average demand. That could have displaced about 15% of current gas generation.

And what has caused this problem .... the increase in fossil fuel prices, especially FF gas. Talk about irony!

The good news (1), is that the cost of RE generation will have fallen significantly pro-rata to the cost of gas generation. Since the construction cost of FF generation (if we built more) would also be subject to all of these inflationary spikes in the related costs. But more importantly, the cost of the fuel (gas) will be far higher, whilst the cost of the 'fuel' delivered to the wind and solar farms has not gotten more expensive, and remains at zero.

And the good news (2), is that RE costs are still enjoying the learning curve (Wright's Law), so will continue to fall for some time, outside of inflationary increases, and the current energy industry inflationary spikes.

One other thing that did stand out to me, looking at the CfD round 5 results, was how close onshore wind and PV got to their respective max bid limits.

In round 4 PV had a max limit of £47 and came in at £45.99. In round 5 the limit remained at £47, and the results came in at £47.

In round 4 onshore wind had a max limit of £53 and came in at £42.47. In round 5 the limit remained at £53, and the results came in at £52.29.

In round 4 offshore wind had a max limit of £46 and came in at £37.35. In round 5 the limit was reduced to £44, and no bids were submitted.

I doubt this comparison works, but it's interesting to see that onshore wind bids rose 23.12% in R5 v's R4. Had the offshore wind limit been left at £46, then that would have allowed for a near identical 23.16% rise in bids.

UK’s net zero ambitions at risk after ‘disastrous’ offshore wind auction

Fears are growing that existing offshore wind projects could be shelved, after industry insiders warned that “disastrous” handling by the government had created a big shortfall in future renewable energy.

Ministers revealed last week that no additional offshore windfarms will go ahead in the UK after the latest government auction. No bids were made in the auction, after the government ignored warnings that offshore schemes were no longer economically viable under the current system.

The Observer revealed the problems last month, as the price for energy offered to developers had not taken account of rampant inflation in their costs. However, industry insiders said that inflationary pressures may even jeopardise the viability of schemes approved in last year’s auction. One such project, the multibillion-pound Norfolk Boreas windfarm designed to power the equivalent of 1.5m British homes, has already been paused.

The failure of this year’s auction has been fuelled by the government setting a maximum price of £44 per megawatt hour based on 2012 prices. It is similar to the price offered in the previous auction, which took place before many inflationary pressures had hit the industry and its supply chain.

Purely as an aside, it's interesting to see how the cost of PV has become so similar to wind. I didn't think that would happen (for the UK). Goes to show the promise of the technology, not just the falling costs worldwide, but also the increases in efficiency, which drive up generation totals for any give area (field or roof). Just a shame that our PV generation across the year varies so much, with a high summer bias, whilst energy demand, has a high winter bias (favouring a wind weighted deployment policy).

QrizB

Most of the commentators on the offshore wind auction failure are framing it around increases in the capital costs - steel, copper, concrete.

Few people seem to have mentioned the increased finance costs?

When bond yields were 2%, borrowing money for a couple of decades to fund the build-out of your wind farm was relatively cheap. Now they're something like 5% and your finance costs have more than doubled.

Martyn1981

That's very true QrizB. I suppose not having new gas generation costs to compare to (in the UK), means we don't get to see how the LCOE of wind will be proportionately so much lower than gas today, than it was a few years ago, before the invasion of Ukraine and all of the cost spikes. [Financing costs are also causing concerns for the BEV deployment rate in the UK, EU and USA, as buyers face increases if they can't pay for the vehicle outright.]

Do you think there's any chance that the offshore wind pot and GW max in the next auction will be increased to make up for the loss this year? Of course, some amendment to the max bids will most likley be needed too. And tbf to the industry, they were crying out for a revision to the mx (this year) to avoid exactly what happened. Can't understand why the Gov refused to move on the issue.

NigeWick

Martyn1981 said:

Can't understand why the Gov refused to move on the issue.

Fossil and nuclear energy interest donations (bribes?) preventing change to renewables?

michaels

QrizB said:

Most of the commentators on the offshore wind auction failure are framing it around increases in the capital costs - steel, copper, concrete.

Few people seem to have mentioned the increased finance costs?

When bond yields were 2%, borrowing money for a couple of decades to fund the build-out of your wind farm was relatively cheap. Now they're something like 5% and your finance costs have more than doubled.

I also think there is some supply and demand issues going on, the UK is not the only country that sees the benefit of a massive role out of offshore wind.  The US is also opening up in a big way and just like the EV price spike last year, there is more demand for wind turbines than there is supply capacity.

Whilst it is disappointing, these are long term contracts so perhaps failing to buy at 'peak' is not such a bad thing.  Does anyone know when prices might fall back?

thevilla

michaels said:

QrizB said:

Most of the commentators on the offshore wind auction failure are framing it around increases in the capital costs - steel, copper, concrete.

Few people seem to have mentioned the increased finance costs?

When bond yields were 2%, borrowing money for a couple of decades to fund the build-out of your wind farm was relatively cheap. Now they're something like 5% and your finance costs have more than doubled.

I also think there is some supply and demand issues going on, the UK is not the only country that sees the benefit of a massive role out of offshore wind.  The US is also opening up in a big way and just like the EV price spike last year, there is more demand for wind turbines than there is supply capacity.

Whilst it is disappointing, these are long term contracts so perhaps failing to buy at 'peak' is not such a bad thing.  Does anyone know when prices might fall back?

The other side of the coin may ask when will offshore wind stop needing the price guarantee and survive on the market rate?  I'd suggest that point could have been reached but the comfort blanket it just too tempting.

QrizB

thevilla said:

The other side of the coin may ask when will offshore wind stop needing the price guarantee and survive on the market rate?  I'd suggest that point could have been reached but the comfort blanket it just too tempting.

Onshore wind and solar PV can both be built without CfDs, so yes - in principle we could see commercial offshore wind developments.

Whether we actually will, of course, remains to be seen!

silverwhistle

I'm not sure it would be the developers who would be against the risk so much as the lenders. If they require a premium on the loans for not having those guarantees that could make the developments unviable?

Smaller onshore PV and wind developments might be easier to finance and in any case onshore wind has a higher CfD price than offshore!