L1 Flashcards

1
Q

How much has policy and technology shaved off warming since 2015

A

1oc

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2
Q

What is the stated policies scenario?

A

reflect current policy settings based on a sector and country assessment of policies and what has been announced around the world

i.e. no significant policy changes

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3
Q

What is the announced pledges scenario?

A

assumes all commitments around the world and long term net zero targets will be met in full and on time

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4
Q

what is the net zero emissions by 2050 scneario?

A

a scenario that sets out a pathways for the global energy sector to achiev net 0 emissions by 2050 - does not rely on emissions reduction from outside the energy sector to achieve its goals - universal access toe lectricity and clean cooking achieved by 2030

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5
Q

What accounts for 90% of the upward pressure on electricity costs?

A

high gas and coal prices

new form of risks - coupled with geopolitical events, natural gas low crisis have reached new lows and prices have reached new highs

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6
Q

What does clean tech offer in the macro environment?

A

creation of jobs and more energy independence - less reliant on Russian oil and gas

more than just environment - the idea of energy justice

Japan - green transformation programme and US- IRA = global acceptance and commitment to make a change and progress technology

potential substitution and transformation technology

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7
Q

What does a wind turbine create and how is the connected to the grid?

A

electricity through blades turning - connected to a generator

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8
Q

Wind risk considerations?

A

intermittency but battery storage can provide load balancing and behind the meter demand charge management

government action is highly instrumental - permitting and laws that restrict wind turbine construction - Germany = heavily regulated market

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9
Q

Who is the largest offshore wind market for cumulative capacity>

A

China

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10
Q

Can you talk about the costs of solar over the past decade?

A

85% cost decline
one of the most competitive energy sources in the market

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11
Q

What are some of the opportuntiies with solar?

A

Potential to go offshore - eg. the Maldives have floating SPVs

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12
Q

What are some of the key risks associated with solar

A

Like wind, it is geo-variable - it is intermittant but not unreliable

Solar intensity is not equal among al countries

Not confident that the floating SPVs or wind turbines will work - difficult to service and lack of practical experience of these floating technologies

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13
Q

How does hydrogen work?

A

Clean fuel that whe consumed in a fuel cell produces only water

can be used in fuel cells which convert the chemical energy of hydrogen and an oxidising agent into electricity through redox reactions

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14
Q

What are some of the opportunities associated with Hydrogen?

A

EU is leading with ambiious goals for 2030, as well as China, Japan and Australia

versatile - can be used in transport, industry, buildings and energy storage

big energy companies involved with hydrogen

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15
Q

What are some of the risks associated with Hydrogen?

A

most of the hydrogen is grey - least sustainable
there are several hurdles to generating green hydrogen

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16
Q

How does an EV work?

A

have a battery instead of traditional gasoline tank and electric motor instead of an internal combustion engine
or
can have a hydrbid vehicle with tanks, batteries, motor and combustion engines

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17
Q

What are some of the opportunities associated with EVs?

A

Increasingly accessible and widespread - eg. Tesla - continues to rise as policy pressures increase.

reduced cost of batteries from ~45% of total costs to around 35% of total cost due to subsidies and technological progression

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18
Q

What are some of the risks associated with EV vehicles?

A

Battery costs are signficiant - large % of EV costs but subsidies are making activities more attractive and driving down economics

the price to earnings ratio in the market is v different - Tesla P/E is 55 compared to Ford P/E is 4.5

19
Q

Why are batteries critical for the reliability of RE?

A

allow energy to be stored and released on demand on various scales eg. households or vehicles

mitigate the intermittent nature of alternative energy generating processes

20
Q

What are some of the risks associated with batteries?

A

they are made oflithium - challenge posed by the non-renewable nature of minerals

issue of scaling solutions with lithium

21
Q

What are the four main categories of utilities? What are these categories based on?

A

Based on where companies derive their earnings

Regulated

integrated

indpedendent power producers

Gas/power infrastructure

22
Q

What is a regulated utility?

A

regulated respective state commissions - aspects set via local commissions eg. cap structure, revenues increases

mainly vertically integrated - generation, transmission and distribution

23
Q

What is a integrated utility?

A

generate a certain amount of earnings from their non-regulated business - power generation business - eg. coal and nuclear and nat gas

generation business make money by selling power directly othte market

FCF generated by the non-regulated business to fund the regulated utility growth without the need for external equity

24
Q

What is a indepdent power producer?

A

a pure-play power company
ie. only focus on one line of business

25
Q

What is agas/power infastructure?

A

derive a large portion of their earnings from infra or utility like business including unregulated infra investments eg. midsteam pipelines, renewable powers and yield cos.

26
Q

What is green utilities?

A

take an environmentally friendly approach to supplying electricity, gas , water and sewage

eg. supplying renewable energy for electricity or managing water disposal and employing low carbon emissions

27
Q

How are large utilities transitioning?

A

investing in startup and deploying capital for predictive monitoring and analytics

European utilities are more prepared for the energy transition due to government policies

28
Q

What are the three issues around global water crisis?

A

sustainability - using resources wisely and adapting to change

accessibility - ensuring equal access to water

portability -safe and reliable water

and overaching climate change, growing pop, urbanisation, increased agricultural demand etc

29
Q

What are the risks associated with green investment into water?

A

water solutions are hard to evaluate - goes beyond metric evaluation
water quality measurement and failures in transparency make it hard to create standards and guidelines for evaluating water security

30
Q

What countries are most at risk for water security crisis ?

A

gulf nations like Bahrain, Qatar , Kuwait and Lebanon

use 80% of the available surface water supply in an average year

31
Q

What is sustainable agriculture?

A

farming in sustainable ways to meet present global food and texilte need without comprising the ability of current and future generations to meet their needs

deals with forestry to digital agriculture

32
Q

What are the opp in agriculture?

A

market value of sustainable ag products are expected to rise sigfnciantly

33
Q

What are the challenges associated with sustainable agriculture?

A

reducing emissions, incentivising smallholders, decreasing high transaction costs and increasing capacity mitigated by agricultural risk

34
Q

What is waste management?

A

processes and actions required to manage waste from its inception to its final disposal

eg. cirulcat economy of waste generated by households, companies and countries

35
Q

Opp in sustainable waste management?

A

saving money and rescources
reducing ghg
streamlining information reporting and sharing

36
Q

how do high and mid income countries different from low income countries in terms of waste management?

A

high to mid - developed landfilling and incineration/waste to energy capacities

low- informal methods of waste collection and have poorly developed WTE or recycling

37
Q

Recycling risks?

A

despite increasing government mandates for recycling it is subject to variation

Recycling material depends on its ability to reacquire the properties it had in its original state

38
Q

Paper recylcing?

A

fairly developed in most countries

paper is recycled at 58% around the world

39
Q

Metals recylcing?

A

increasing market

China import restrictions on waste from scrap metals - to increase use of recycled steel

steel and iron recycling growing fastest as can be used for construction, automotive applications and consumer durable goods

40
Q

Plastic recycling?

A

fastest growing segement
difficulty with hydrocarbon requirements of different plastics
has the highest potential but major issues with scaling application and lack of packaging standardisation - inefficient sorting process and volitle consumer demand

governments are a large driver in recycling eg. Eu regulation and target for 50% of recycling by 2050 - currently at 40%

41
Q

Battery recyling =?

A

issues with stockpiling - electric batteries are a significant fire hazard
lack of trained mechanics who can dissassemble an electric battery

yet to be automated using machines - reuse or recyle however remain the two most viable options for li-on battery users

42
Q

Textiles recyclin?

A

a 5 b dollar industry in 2020
eg. patagonia - consumer demand for reused textiles

43
Q

What are some of the demand drivers linked to circular economy?

A

CSR
government reulgation
consumer preference
corporate recycling tagets