Lesson 2 Flashcards
What is the goal of dealing with climate change?
Reduce carbon emissions while improving the lives of people.
How do you do this?
Reduce the cost of clean technologies.
Why is this important?
Economics will be the primary driver for most people, not climate change.
How will we do this?
Deploying the current clean technologies and develop new ones.
What are the 5 main sources of greenhouse gases?
Manufacturing (31%)
Electricity (27%)
Agriculture (19%)
Transportation (16%)
Heating and AC (7%)
What are 2 products that have large emissions of CO2 when manufactured?
Steel,
Cement
What are the 2 greenhouse gases created by agriculture?
Methane and Nitrous Oxide
How are these issues linked?
If we can improve the way we make electricity, it may change the way we manufacture.
Historically, how long has it taken to move from one energy source to another (coal → gas)?
50 years
What is a Green Premium?
The higher price early adopters must pay for the new technology.
What is expected to emerge in the next few decades?
Middle income countries.
What is important about middle-income economies?
New technologies must be affordable for them.
What is Breakthrough Energy?
https://breakthroughenergy.org/
Founded by Bill Gates and 27 other rich investors.
Solve the 5 big challenges.
Who is the Chairman and CEO?
Abigail P Johnson
What is Abigail Johnson’s background?
G’daughter of the founder of Fidelity
Billionaire: she owns 24.8% of Fidelity. Her family owns another 25%.
Who is Aditya Mitall, the CEO?
CEO of ArcelonMittal (Steel producer)
* from India
Who is Andrew Forrest, Chairman?
** Australian
former CEO Fortescue Metals
owns cattle statioins
pledged wealth to charities**
Who are Ben & Lucy Walton, co-founders?
Ben heir to Walmart (grandson)
not conservative like the others
ZOMALAB philanthropy
Lucy → psychologist
Who are Beth and Seth Klarman, trustees?
** Seth → value investor (Benjami Graham)
invested almost exclusively to Dems since 2016**
Who is (Sir) Chris Hohn, founder?
Value-based investor
Children’s Investment Fund
Who is Chris Stolte, co-founder?
** Co-founder Tableau (analytics) Software - his source of wealth**
Who are the other investor/board members?
https://breakthroughenergy.org/our-work/breakthrough-energy-ventures/bev-board-and-investors/
What is Breakthrough Energy Catalyst?
Invests in:
* Clean Hydrogen
* Direct Air Capture
* Long Duration Energy Storage
* Sustainable Aviation Fuels
What is offtake?
To be willing to buy these products at higher than fossil fuel prices.
What criteria are used for investment?
The technology must be proven.
There must be a good probability of a market for the technology.
It must have a significant Valley of Death
What is the first of Bill Gates’ 5 questions about a BE investment?
How much carbon can you remove from the 51 billion tons?
What is Question #2?
What is your plan for cement?
Making steel and cement accounts for 10% of all emmissions.
What is Question #3?
How much power are we talking about (electricity)?
How is electricity measured?
**kilowatt = 1,000 watts
magawatt = 1 million watts
gigawatt = 1 billion*
How much electricity does the average home use?
All of NYC?
The US?
The world?
< 30 kw-hours /day;
11 gigawatts/day;
1,000 GWH/day
5,000 GWH/day
What is Question #4?
How much space do you need?
This is a measure of efficiency.
Solar panels and wind farms require much more land than nuclear.
What is Question #5?
How much is this going to cost?
How quickly can Green Premiums be reduced?
