Big Idea:

The European Commission launches its first-ever European Hydrogen Bank auction with €800 million to ramp up the European production of renewable hydrogen. This move aims to close the cost gap between production and consumer prices, making renewable hydrogen more competitive in the market.

Why It Matters:

The growth of the market for renewable hydrogen plays a critical role in Europe’s future energy mix. It is a major stride in Europe’s pursuit of carbon reduction and targeting key sectors such as heavy industry and transport by replacing fossil fuels. It introduces “Auctions-as-a-service”, allowing Member States to finance projects that were not selected for Innovation Fund support, reducing administrative burdens and costs.

Key Details:

• The target is a production of 10 million tonnes of renewable hydrogen by 2030.
• Producers can submit bids based on a proposed price premium per kilogram of renewable hydrogen produced, with a ceiling of 4.5€/kg. Selected projects will receive the awarded subsidy in addition to market revenues for up to 10 years, with a requirement to start production within five years.
• The deadline for bidders is February 8, 2024.

“We are investing massively in this transition by using the revenues of emissions trading. This is a sustainable model that brings down emissions and boosts the competitiveness of European industry,” said the EU’s new Green Deal chief, Maroš Šefčovič.

What's Next:

The focus now shifts to the successful implementation of the auction system and monitoring its impact on hydrogen production costs. A second round of auctions in 2024 indicates the EU's commitment to ongoing support for this burgeoning sector.

The Intrigue:

The pilot auction contrasts with the approaches of other nations and we will see whether Europe can establish a lead in this crucial sector.

Big Idea:

Northvolt, a Swedish company founded by former Tesla executives Peter Carlsson and Paolo Cerruti, unveiled its latest sodium-ion battery with energy density over 160 watt-hours per kilogram. This technology minimizes the use of rare minerals and reliance on overseas supply chains, providing a sustainable, cost-effective, and heat-resistant alternative to conventional lithium batteries.

Why It Matters:

While traditional batteries rely on lithium, nickel, cobalt, and graphite, Northvolt uses abundant resources like iron and sodium. This new battery addresses sustainability, cost, and safety concerns, an ideal alternative to lithium-ion batteries.

Key Details:

• Northvolt's sodium-ion battery achieves over 160 Wh/kg, outperforming current lithium-ion batteries in the 75-150 Wh/kg range.
• Developed in partnership with Altris, the tech leverages their expertise in producing Fennac (otherwise known as Prussian White).
• Offers cost-effective energy storage suitable for high-temperature environments such as India, the Middle East, and Africa.
• Northvolt has received $55 billion in orders from major automotive and technology firms.

Peter Carlsson, CEO and Co-Founder of Northvolt, comments: “The world has put high hopes on sodium-ion, and I’m very pleased to say that we’ve developed a technology that will enable its widespread deployment to accelerate the energy transition. It’s an important milestone for Northvolt’s market proposition, but battery technology like this is also crucial to reach global sustainability goals, by making electrification more cost-efficient, sustainable and accessible worldwide.”

What's Next:

Northvolt's focus on ramping up production and commercialization of their battery opens opportunities for energy storage solutions, with potential future applications in electric mobility.

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Big Idea:

The Canadian government has launched a C$1.5 billion Critical Minerals Infrastructure Fund (CMIF) dedicated to enhancing clean energy, electrification, transportation, and infrastructure projects. Its primary focus is to boost the supply chain of critical minerals vital for achieving a sustainable, net-zero emissions goal.

Why It Matters:

This initiative is part of Canada's C$3.8 billion critical minerals strategy, aimed at developing minerals such as copper, cobalt, and nickel, which are essential for batteries, wind turbines, and solar panels. Given the anticipated surge in global demand for these minerals in the shift towards low-carbon solutions, this sector is gaining increasing significance.

Key Details:

• The fund allocates C$1.5 billion over seven years, with up to C$300 million available in the first proposal phase.
• The fund targets infrastructure projects that are crucial for the sustainable extraction and transportation of critical minerals.
• The focus is on sustainable development of minerals crucial for clean energy technologies, including lithium, nickel, cobalt, and graphite.

Canada Energy and Natural Resources Minister Jonathan Wilkinson said, "Through the C$1.5bn CMIF, Canada will make strategic investments in projects to help enable and grow the sustainable development of these minerals, reinforcing Canada’s position as a global supplier of choice for clean technology, clean energy, and the resources the world needs to build a prosperous net-zero economy.

What's Next:

The program's initial phase focuses on pre-construction and infrastructure deployment. Future implications include bolstering Canada's clean energy and electrification initiatives, potentially transforming the country into a global clean technology hub.

The Intrigue:

The CMIF strategically positions Canada in a global race for clean technology leadership, challenging existing geopolitical dependencies on critical minerals, especially from countries like China.

By the Numbers:

• C$1.5 billion total fund value
• Up to C$300 million funding in the first round of proposals
• Up to C$50 million fund per project for non-governmental applicants
• Up to C$100 million fund per project for governmental entities

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