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Hyperloop, hydrogen-powered trains, and air-taxis. As the 21st century progresses, the way people get from A to B is on the cusp of a significant shift driven by design and innovation.

While the above technologies may be a few years off from widespread adoption, that’s not to say change isn’t already afoot.

Around the world, national and municipal governments are attempting to slash emissions and boost urban air quality, with many putting their faith in a growing sector: battery electric vehicles. 

There’s undoubtedly momentum behind the industry. A recent report from the International Energy Agency stated roughly 3 million new electric cars were registered last year, a record amount and a 41% rise compared to 2019.

Looking ahead, the IEA says the number of electric cars, buses, vans and heavy trucks on roads — its projection does not include two- and three-wheeled electric vehicles — is expected to hit 145 million by 2030.

If governments ramp up efforts to meet international energy and climate goals, the global fleet could increase further still, expanding to 230 million by the end of the decade.

A changing world 

As the number of electric vehicles on the planet’s roads increases, society will need to adapt.

Extensive charging networks, for example, will need to be rolled out to meet increased demand and dispel lingering concerns around “range anxiety” — the idea that electric vehicles aren’t able to undertake long journeys without losing power and getting stranded.

Another area where we will notice change relates to noise: As well as boasting zero tailpipe emissions, electric vehicles are far quieter than their diesel and gasoline cousins.

This means less noise pollution in urban areas — clearly a good thing — but also throws up a potential challenge for other road users, especially those with sight problems. 

“For people who are blind or partially sighted, judging traffic can be really difficult,” Zoe Courtney-Bodgener, policy and campaigns officer at the U.K.-based Royal National Institute of Blind People, told CNBC in a phone interview.

Courtney-Bodgener explained that an increasing number of “quiet” modes of transport were now being used, giving the example of bicycles and larger electric and hybrid vehicles.

“If you can’t always or reliably use vision to detect those vehicles, then sound is even more important,” she went on to state.

“And when the sound is not there, or is not loud enough to be able to reliably detect those vehicles, obviously that presents danger because … you’re not reliably able to know when a vehicle is approaching you.”

The law of the land

It should be noted that, around the world, legislation and technology have already been introduced in a bid tackle this issue.

In the European Union and U.K., for example, all new electric and hybrid vehicles will have to use an acoustic vehicle alerting system, or AVAS, from July 1. This will build upon and broaden previous regulations which came into force in 2019. 

Under the rules, the AVAS is supposed to kick in and make noise when a vehicle’s speed is under 20 kilometers per hour (around 12 miles per hour) and when it’s in reverse.

According to a statement from the U.K. government in 2019, the sound “can be temporarily deactivated by the driver if judged necessary.”

The EU’s regulation says the noise made by the AVAS “shall be a continuous sound that provides information to the pedestrians and other road users of a vehicle in operation.”

“The sound should be easily indicative of vehicle behaviour,” it adds, “and should sound similar to the sound of a vehicle of the same category equipped with an internal combustion engine.”

The RNIB’s Courtney-Bodgener told CNBC that while her organization was “happy” the AVAS directive had been translated into U.K. law, it did not “do all of the things that we want it to do.”

She went on to explain how the speed at which the AVAS cuts in perhaps needed to be increased to 20 or 30 miles per hour.

“We’re not convinced that if … a vehicle is travelling at, say 13 miles per hour, it would generate, on its own, enough noise for it to be reliably detectable by sound.”

Another area of concern relates to older vehicles. “There are already lots and lots of electric and hybrid vehicles that were produced before this legislation came into force and do not have the sound technology on them,” she said.

There was currently no provision to retrofit these, she added. “That is a concern because there are already thousands of vehicles on roads around the U.K. that do not have the AVAS technology.”

From the industry’s point of view, it seems to be content with the regulations already in place. In a statement sent to CNBC via email, AVERE, The European Association for Electromobility, told CNBC it supported the “current legislative status quo.”

“The limit of 20 km/h is sufficient, since at this level other noises — notably rolling tyre resistance — take over and are sufficient for pedestrians and cyclists to hear EVs and hybrids approaching,” the Brussels-based organization added.

“In fact, mandating additional noise beyond 20 km/h would rob European citizens of one of the primary benefits of electrification: reduced noise levels at city speeds.”

Noise pollution can indeed be a serious issue. According to the European Environment Agency, over 100 million people in Europe “are exposed to harmful levels of environmental noise pollution.” The agency singles out road traffic noise as being “a particular public health problem across many urban areas.”

On the subject of older cars needing to be updated, AVERE said: “Only a very small share of EVs on European roads would be subject to retrofitting requirements, given the fact that many existing vehicles have already been fitted with AVAS in anticipation of the new requirements, and that the rules have been put in place in time to support the expected mass uptake of EVs in coming years.”

If “additional requirements” were found to be necessary, AVERE said it stood ready to engage with policymakers.

The future

Discussions and debate surrounding this topic look set to continue for a good while yet and it’s clear that a balance will need to be struck going forward.

Regardless of whether one thinks the current legislation goes far enough or not, the fact remains these types of systems are set to become an increasingly important feature of urban transport in the years ahead.

Robert Fisher is head of EV technologies at research and consultancy firm SBD Automotive.

He told CNBC via email that testing conducted by the company had “found AVAS to be quite effective” but went on to add that if a pedestrian wasn’t familiar with the noise, “they may not automatically associate it with the presence of an approaching vehicle.”

“Currently, AVAS is mostly hindered by inconsistent legislation and a lack of innovation,” he said, before going on to strike a positive tone regarding the future.

“As we move away from the internal combustion engine, this technology has the potential to become a key part of a car’s character, a point of brand differentiation, and has the ability to save lives.”

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Exxon CEO says dispute with Chevron over Hess Guyana oil assets could drag into 2025

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Exxon CEO says dispute with Chevron over Hess Guyana oil assets could drag into 2025

Darren Woods, chairman and chief executive officer of Exxon Mobil Corp, speaks during the 2024 CERAWeek by S&P Global conference in Houston, Texas, US, on Monday, March 18, 2024. 

F. Carter Smith | Bloomberg | Getty Images

Exxon CEO Darren Woods said Monday that the dispute with Chevron over Hess Corporation‘s oil assets in Guyana likely will not be resolved until 2025.

“My view is it will go into 2025,” Woods told CNBC’s David Faber at the Milken Institute’s Global Conference in Los Angeles. Hess had previously indicated that the case could drag into next year.

“This is an important arbitration obviously not only for Exxon Mobil but for Chevron and Hess,” Woods said. “What we need to do is take our time to do what’s right to make sure that we do all the due diligence and we get to the answer — the right answer.”

Exxon is claiming a right of first refusal on Hess’ assets in Guyana under a joint operating agreement that governs a consortium that is developing the South American nation’s prolific oil resources. The oil major filed for arbitration in March at the International Chamber of Commerce in Paris.

Woods said the panel of arbitrators is still being selected and then the process will go into discovery. The CEO has repeatedly expressed confidence that Exxon will prevail in the dispute, saying the company wrote the agreement that governs the consortium.

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Chevron has rejected Exxon’s claims that the agreement applies to its pending all-stock deal to acquire Hess, valued at $53 billion.

The arbitration court will ultimately decide the timeline of the proceedings, but Hess has asked the panel to hear the merits of the case in the third quarter with an outcome in the following quarter. Chevron CEO Mike Wirth told analysts during the company’s first-quarter earnings call in April that this timeline should allow the parties “to close the transaction shortly thereafter.”

“We see no legitimate reason to delay that timeline,” Wirth said.

If Exxon prevails in the case, Chevron’s deal with Hess would break up. Woods has said Exxon is not making a play to buy Hess, but wants to defend its right in the interest of shareholders and find out what value is being placed on Hess’ Guyana assets.

Hess has a 30% stake in an oil patch called the Stabroek block off the coast of Guyana. Exxon leads the project with a 45% stake while China National Offshore Oil Corp. maintains 25% stake.

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Chevron CEO says natural gas demand will outpace expectations on data center electricity needs

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Chevron CEO says natural gas demand will outpace expectations on data center electricity needs

Chevron CEO Mike Wirth: Demand for natural gas will be higher than expected

Natural gas demand will likely outpace expectations as electricity consumption surges from artificial intelligence and data centers, Chevron CEO Mike Wirth told CNBC on Monday.

“It’s a little hard to quantify right now because this is evolving so quickly on the AI side,” Wirth told CNBC’s Sara Eisen at the Milken Institute’s Global Conference in Los Angeles. “But I think demand for natural gas is likely to be higher than what people have been estimating up until now.”

Wirth said the move to electrify the nation’s vehicle fleet, heating and manufacturing as well as the increase in demand from data centers will require reliable and affordable backup power generation.

Wind and solar offer affordable power in some regions, but they still face challenges in generating enough electricity to meet peak demand because they rely on variable weather conditions, the Chevron CEO said.

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“Data centers don’t shut down when the sun goes down,” Wirth said. “We need to have the ability to provide baseload supply for all of these needs. I think natural gas will be a big part of that equation going forward.”

Wirth said coal plants are being phased out in the U.S., nuclear power is expensive and geothermal energy is not as proven as other power sources. “You come back to natural gas as the most likely source of that reliable baseload supply,” the CEO said.

Electricity demand in the U.S. is expected to surge by as much as 20% by 2030, according to research from Wells Fargo published in April. Natural gas demand could increase by 10 billion cubic feet per day, or bcf/d, by the end of the decade as a consequence, according to Wells. To put that in context, the U.S. currently consumes 35 bcf/d for power generation and 100 bcf/d total.

Goldman Sachs is forecasting that natural gas will provide 60% of the new electricity demand from data centers, while renewables will provide 40%. The investment bank says natural gas pipeline operators such as Kinder Morgan, Williams Cos. and producer EQT Corp. stand to benefit.

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Lilium (LILM) receives firm order from UrbanLink to put 20 eVTOL jets into service in Florida

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Lilium (LILM) receives firm order from UrbanLink to put 20 eVTOL jets into service in Florida

Electric vertical takeoff and landing (eVTOL) developer Lilium has announced a new partnership with advanced air mobility (AAM) operator UrbanLink that includes the purchase of at least 20 all-electric eVTOL jets. The aircraft will be operated around Florida as UrbanLink looks to become the first US airline fully committed to the nascent technology.

Lilium ($LILM) is a startup founded in Munich, Germany, in 2015 that has since expanded its footprint of development teams across Europe and the United States. Its current staff sits around 1,000 personnel, including 500 aerospace engineers, who continue to work toward bringing Lilium’s unique eVTOL Jet design to commercial operations in Regional Air Mobility (RAM).

Last fall, we saw Lilium achieve development certification from the European Aviation Safety Agency (EASA), enabling the startup to continue developing, testing, and preparing its eVTOL jets ­en route toward certification and production before commercial operations.

Speaking of commercial operations, Lilium announced a new partnership with PhilJets in February to bring eVTOL jet rides to the Phillippines. Today, Lilium announced another partnership, this time with UrbanLink Air Mobility in the US, that includes a firm order with room for even more eVTOL jet sales in the future.

eVTOL jet
UrbanLink’s planned eVTOL service map / Source: Lilium

Lilium sells 20 eVTOL jets with opportunity for 20 more

Lilium shared details of its new partnership with UrbanLink today. The partnership includes a firm order for at least 20 eVTOL jets with an option for an additional 20 aircraft. The deal also includes scheduled pre-delivery payments from UrbanLink as the AAM operator looks to become one of the first US airlines to fully embrace aviation technology and integrate eVTOLs into commercial operations.

UrbanLink is led by Ed Wegel, a veteran in the aviation industry who previously served as founder and CEO of charter airline GlobalX alongside stints at Atlantic Coast Airlines and JetBlue. Wegel spoke:

While many airlines have discussed the potential of operating eVTOL aircraft, none have made a definitive commitment. UrbanLink will be the first airline in the U. to integrate eVTOL aircraft into its fleet. We are dedicated to revolutionizing the way people move to and from as well as within urban cores. After thorough evaluation of various manufacturers, we found the Lilium Jet to be the optimal choice for our needs, thanks to its superior cabin design, range, capacity, and cost-effectiveness.

To begin, UrbanLink intends to put the initial 20 eVTOL jets from Lilium into operation around South Florida, offering emissions-free flight routes between Miami, West Palm Beach, Boca Raton, Fort Lauderdale, and Marco Island.

Lilium began producing its first eVTOL jets in late 2023 and is targeting its first piloted flight tests ahead of airworthiness certification by the end of the year. Lilium CCO Sebastien Borel spoke about the company’s progress and its new collaboration with a regional airline like UrbanLink:

We are proud that UrbanLink has selected the Lilium Jet for its network and operations. This is a huge milestone, not only for Lilium, but for the commercialization of eVTOLs in the US We believe that this purchase of eVTOL aircraft is the first by a commercial operator that isn’t invested in the manufacturer that it is purchasing from. This is a sign that the market for eVTOL aircraft has matured and there is growing demand for aircraft that can provide connections between, rather than just within, cities. I know that Ed has the vision and operational expertise to make regional air mobility a success

UrbanLink intends to begin commercial flight services with the Lilium eVTOL jets by late 2026.

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