JUNE 5, 2024

Hey everyone! I’m excited to share that we have just added a new layer to our Cleantech Tracker: Critical minerals. Why? Because these are the bedrock (literally!) of the transition. Let's learn about these before we dive into even more tech.

In today’s edition:

• Amena traveled to a proposed lithium mine and processing site in North Carolina to tell the story of the critical minerals boom.
• Cat delves into Occidental Petroleum's ‘net-zero oil’ plans.
• Anca provides power context for the upcoming European Union elections in our Data Dive.

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Send your energy photos, story tips and more to news@ciphernews.com.

A rock containing lithium and a map of the tin-spodumene belt of the Carolinas, showing the site of Piedmont Lithium's planned lithium processing site in North Carolina. Illustration by Nadya Nickels, map shared by Piedmont Lithium, original photos by Amena H. Saiyid.

Lithium leads critical minerals boom: Cipher tracker

But declining prices are causing delays

BY: AMENA H. SAIYID

BESSEMER CITY, NORTH CAROLINA — Beneath a lush green forest less than an hour outside Charlotte lies a stretch of rocky ore nearly twice the size of Central Park riddled with the mineral lithium, a key ingredient in electric cars and energy storage.

The lithium here in Gaston County is poised to be mined and processed by the company Piedmont Lithium.

With United States demand for lithium expected to surge, Piedmont Lithium’s project is one of several new critical mineral processing sites set to benefit from new U.S. laws subsidizing a range of clean energy infrastructure.

Click here to read more about how lithium is driving investments in critical minerals.

Highlights here:

Lithium today accounts for about two thirds of the more than 30 critical mineral processing facilities planned, operating or under construction across the country, according to new data from Cipher’s Cleantech Tracker.

However, a 75% slump in global lithium prices in 2023 along with a slowdown in electric vehicle sales in China compared with the prior year is prompting construction delays at some of these processing sites, according to the International Energy Agency’s (IEA) latest outlook on critical minerals.

Piedmont Lithium told Cipher it is pushing back the starting dates for its planned facilities here in North Carolina and Tennessee. The company says it is “not giving guidance on a timeline currently,” and is looking to potentially re-start the local rezoning process in 2025. Likewise, Albemarle Corporation is planning to postpone construction on its planned South Carolina facility.

“We continue to focus on building a more resilient domestic supply chain,” a representative for Albemarle told Cipher via email. “The investments economics need to align. Right now, given current pricing, they are not there. That’s not just an Albemarle position – that’s an industry reality.”

Companies have invested about $9.1 billion in U.S. lithium processing projects since early 2021, according to Cipher’s Tracker. That’s about two thirds of the total amount invested into critical mineral processing facilities in the U.S. in that time.

Cipher's Cleantech Tracker map, filtered to show critical minerals processing projects across the United States. Data source: The Clean Investment Monitor, Rhodium Group and MIT CEEPR. Click on the above map for an interactive version on Cipher's website.

Like all energy infrastructure, critical mineral mining and processing projects are raising local ire over environmental impacts. The highest profile example is the Thacker Pass project in Nevada.

Piedmont Lithium too is facing local opposition over concerns mining will release naturally occurring arsenic into water wells.

North Carolina has granted Piedmont Lithium its required mining permits, but the company still needs air and water quality permits. The company’s plans to seek county approval have taken a back seat as it seeks funding amid cratering lithium prices.

Lunchtime Reads and Hot Takes

Can Mexico’s Sheinbaum, a climate scientist, shake Lopez Obrador’s oil legacy? — Reuters

Amena’s take: Claudia Sheinbaum aims to significantly boost renewable energy in the country. She’ll also need to tackle challenges like Mexico City’s looming water crisis.

World’s biggest solar farm comes online in China’s Xinjiang — Reuters

Amy’s take: The farm totals some 200,000 acres, a mind-boggling size for a solar farm. That’s more than four times the size of the entirety of Washington, D.C.!

Modi Will Feel the Heat in a Third Term. And Not Just Politically. — The New York Times

Amena’s take: With more than half of all Indians relying on farming, a shortage of groundwater combined with extreme heat and flooding fueled by climate change is something President Narendra Modi's government must address.

States’ emerging climate dilemma: Data centers — E&E News (subscription)

Cat’s take: In sum: "I think it's probably one of the most complex moments of load growth that we’ve probably ever faced,” Tyler Norris, a former renewable energy executive, told E&E News.

As Solar Power Surges, U.S. Wind Is in Trouble — The New York Times

Bill’s take: Wind farms — expensive (at least upfront) and obtrusive — are proving harder to build, even with more money available to do so. But the biggest, and fatal if not solved, challenge is transmission.

Europe’s steelmakers risk missing climate targets despite billions in subsidies — Financial Times (subscription)

Anca’s take: This stood out: It's unclear how much companies spend on research and innovation for clean steel and the amount of money needed to decarbonize is much higher than the current pledged state aid.

Metallica’s European Tour Showcases Renewable-Energy Big Rigs—And Their Limits — The Wall Street Journal

Amy’s take: Interesting article that notes the challenges of such efforts. I would have liked to have heard from a rep of the band itself about why it is doing this.

Germany counts flooding losses as heavy rains stoke climate debate — Reuters

Anca’s take: The German government said deadly flooding in the nation's south served as a warning to keep up the fight against climate change just hours after a panel of government climate advisors said Germany is likely to miss its 2030 greenhouse gas targets.

More of what we're reading:

• Power-hungry data centers spur US talks with Big Tech, energy chief Granholm says — Reuters

• Employers face a rising climate conundrum — Financial Times
• Geoengineering faces a local vote with global consequences — E&E News (subscription)

We denote ‘(subscription)’ when publications don’t provide any complimentary articles, but many others may ultimately allow you to read only a limited number each month before subscribing. We encourage those who can afford it to support the journalism you love most!

How one oil producer is pursuing “net-zero” oil

Illustration by Nadya Nickels.

BY: CAT CLIFFORD

On its face, the phrase “net zero oil” may sound like an oxymoron. After all, burning fossil fuels is the primary driver of climate change.

But Texas oil major Occidental Petroleum has a buyer lined up to purchase such a product even before the company has finished building the infrastructure necessary to produce it.

Read the full article about net zero oil and Occidental’s efforts to make it on Cipher’s website.

Highlights here:

In March 2022, Occidental announced SK Trading International, a South Korean company, agreed to buy up to 200,000 barrels of net zero oil a year for five years after Occidental completes the necessary infrastructure, expected in mid-2025.

To deliver, Occidental will use direct air capture to remove the same amount of CO2 from the atmosphere as would have been released in the production, delivery, refining and final use of each barrel.

In August 2023, Occidental agreed to pay approximately $1.1 billion to purchase the direct air capture company Carbon Engineering. Via its subsidiary, 1PointFive, Occidental is already building one direct air capture facility that will use Carbon Engineering technology and has plans to build a second.

Occidental will sequester the captured atmospheric carbon underground in a process called enhanced oil recovery. (More on how this works in the full story.)

Society is at the earliest stages of decarbonizing global industrial, energy and transportation systems. While low carbon alternatives for many fossil fuel products exist, it will be particularly tricky to entirely replace oil due to its pervasive and effective use in transportation and manufacturing.

For Occidental, that calculus is an opportunity. “To me the last barrel of oil produced in the world should come from an enhanced oil recovery reservoir using CO2 from the atmosphere,” said Vicki Hollub, Occidental’s CEO, on a November earnings call. “So, we will be doing that.”

From a climate perspective, what matters is how these net-zero barrels of oil are used, David Hawkins, longtime veteran of the National Resources Defense Council (NRDC) told Cipher.

“Our goal needs to be both to reduce greenhouse gas emissions and to reduce the amounts of fossil fuels we use. That means oil use should be restricted over time to meet needs that cannot feasibly be met by other means,” said Hawkins.

Occidental’s carbon management business could eventually rival that of its oil and gas business, Richard Jackson, the executive who leads Occidental’s United States onshore oil and gas businesses and the company’s carbon management operations told Cipher.

“The vision is removing atmospheric CO2 at scale,” he said.

Europe enters elections as global clean power leader

Source: Ember • Yearly electricity data.

BY: ANCA GURZU

As Europeans head to the polls this weekend to vote in the European Union’s parliamentary elections, they can boast one of the cleanest electricity mixes in the world, outperforming other major economies such as the United States and China.

The EU’s power sector is half as emissions intensive as the global average, according to a new analysis out this week from climate think tank Ember.

The EU also continues to be a global leader in wind and solar. The renewables generate an average of 27% of the bloc’s power, double the global average of 13%.

Ember tracked the EU’s power sector transformation between 2019, when the current EU electoral term began, and 2023 — a period when climate and energy policies topped the bloc’s agenda. The analysis found renewables helped cut fossil generation by a fifth during this period.

These strong green results come amid growing backlash against climate policies as people and businesses in Europe grapple with high energy costs and what they perceive to be numerous restrictive green regulations trickling into their daily lives.

Europeans are set to elect a new European Parliament during elections between June 6 to 9, with far-right parties — embracing climate-skeptic approaches — slated to make big gains. A political shift to the right could threaten the speed of Europe’s energy transition, experts worry.

The election results will shape the formation of the next European Commission, the EU’s executive arm, which will set the tone and direction of the EU’s climate policies for the next five years.

AND FINALLY...
No power 

Cipher’s associate editor Jillian Mock took these photos over the weekend while visiting family in Dallas, Texas. The state was pummeled by thunderstorms last week, and one on May 28 knocked out power to more than 200,000 people in North Texas (including Jillian’s dad!). It took days for utility workers, like the one in the photo on the right, to restore power across the region amid continued storms.

Each week, we feature a photo that is somehow related to energy, the thing we all need but don’t notice until it’s expensive or gone. Email your ideas and photos to news@ciphernews.com.

Editor’s note: In addition to supporting Cipher, Breakthrough Energy also supports and partners with a range of entities working to tackle climate change, including nonprofits, corporations, startups and research firms. For more information on Cipher’s editorial policy, click here.