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In the first half of this pair of articles on the challenges of internecine squabbling among those focused on replacing fossil fuels, I covered the $39 trillion worth of reasons why the fossil fuel industry is trying incredibly hard to pretend that it has a future as an energy delivery industry, why electrification is the answer to almost everything, and why biofuels are the answers to what electricity can’t do.

Now it’s time for hydrogen and synthetic fuels.


Hydrogen

Next we have hydrogen. Hydrogen is indeed the most abundant element in the universe, however, the thing that isn’t said clearly is that it’s tightly chemically bound to other things, and doesn’t float around freely in a harvestable form. And it does indeed have a high energy density by mass, but unfortunately it has a terrible energy density by volume, which more than counterbalances the mass side of the equation. We have to get it from fossil fuels, which are, after all, hydrocarbons, or from water, which is two hydrogens and an oxygen. Both of those things require a lot of energy, and there are a bunch of negative externalities for several of the processes.

First off, there’s black, gray, and blue hydrogen. About 99% of all hydrogen created and used today comes from fossil fuels, and it’s black. Making hydrogen from natural gas produces 10x the mass of CO2 as of produced hydrogen. Making hydrogen from coal produces 20–35x the mass of CO2 as of hydrogen. End to end, because of process efficiencies, methane leakage, and the like, more greenhouse gases are created for the energy in hydrogen than if we just used the fossil fuels directly.

The false promise of blue hydrogen is that all of those negative externalities will be centralized into a gas reformation or coal gasification facility, where the CO2 can be captured as it is emitted, and the chemical and particulate pollution can be scrubbed sufficiently from the effluents. The $39 trillion in profits fossil fuel industry really, really loves this, because it means that they can keep an enormous amount of their revenue and profits, as long as someone else pays for the capture and sequestration of the CO2 and other pollutants. As a result, there’s an awful lot of fossil fuel money and lobbying pushing hard for a hydrogen economy.

And as stated, carbon capture and sequestration is a money pit of extremely limited value. 50 years of investment in CCS has resulted in the biggest CCS ‘wins’ pumping CO2 out of the ground in one place and pumping it back into the ground in another, typically with lots of government money, and almost entirely for enhanced oil recovery, which produces more CO2 than was sequestered. The total scale of all carbon capture and use globally is five to seven orders of magnitude off the scale of our CO2 emissions problem. Making hydrogen from fossil fuels just makes the CO2 emissions higher, and the scale problem just gets worse. You can understand why the fossil fuel industry doesn’t like that part of the story being told.

The second form of hydrogen is green hydrogen. In this pathway, renewable electricity is used to electrolyze water into hydrogen and oxygen, putting energy in to break the chemical bonds and get hydrogen out. Then the hydrogen can be compressed to ten thousand pounds per square inch to get it down to a usable volume, or chilled to 24 degrees above absolute zero to turn it into a somewhat manageable liquid.

Hydrogen burns fairly cleanly, combusting with oxygen to make water again. However, burning hydrogen creates the nitrous oxides mentioned above, as burning anything in our atmosphere does. That’s because nitrogen is 78% of the atmosphere and oxygen is 21%. Burning anything releases heat and causes the nitrogen and oxygen from the air to combine in various ways, with the associated negative externalities of smog-precursors and high global warming potential gases.

Hydrogen fuel cells are like electrolyzers run in reverse. Instead of burning hydrogen, you run it through the cell, recombine it with oxygen and get some energy and waste heat from the process, but without nitrous oxides, which is nice.

The problem with green hydrogen is that it’s both inefficient and ineffective. Creating hydrogen from water loses at minimum 20% of the energy required for the process. Compressing and/or chilling it loses more. Transporting it is inefficient, with piping it, for example, taking three times the energy as for natural gas. When it’s burned, it’s like fossil fuels in that we get relatively low grade heat back, which means waste heat and entropy. Burning it for heat produces nitrous oxides still, and unless you directly need heat, converting it to electricity has a bunch of losses. Hydrogen fuel cells produce waste heat and at best are 60% efficient at getting the remaining energy out.

Hydrogen has some other problems for distribution. It embrittles harder steels, so a lot of existing pipelines and pumps can’t be reused and would have to be replaced at great expense. And electronics don’t like hydrogen much, so in many places the electronics for monitoring and controlling distribution have to be replaced too. And for use, hydrogen doesn’t directly replace natural gas in appliances, so brand new appliances — which don’t exist as manufactured commodity items today, by the way — must be purchased and installed.

Electricity turns into heat or mechanical energy for motion very efficiently. But the same ‘energy’ of heat, unless it’s extremely hot, doesn’t turn into mechanical energy efficiently. The technical term is exergy, which is the percentage of the energy in something which can actually be usefully used. Low grade heat has poor exergy, while electricity has high exergy.

Electrification types, like me, point out that all of that inefficiency and ineffectiveness is avoided by using the electricity from renewables more directly. Tie things to the grid wherever that’s possible — and there close to 100,000 kilometers of electrified rail in the world, for example — and use batteries which are 80%+ efficient and very easy to charge from ubiquitous wires we already have in place. Use electric heat pumps and induction stove tops and electric arc furnaces for all the things we need heat from.

What this comes down to is that hydrogen isn’t fit for purpose directly for virtually any transportation form, to burn for heat of any quality, or for grid storage of electricity. Its inefficiencies and effectiveness challenges compared to electrification or biofuels mean that it’s unlikely to be used directly.

That’s okay, by the way, because we need green hydrogen for fertilizer and other chemical processes. But using it for heat, storage, or transportation makes no sense.

And here’s another source of confusion and contention. Green hydrogen is being deployed as a bait and switch for blue hydrogen. The fossil fuel industry is telling everyone who will listen, and politicians who are often happy to take their money, that if we just use black hydrogen for heating and transportation now, they’ll make it blue soon with a lot of taxpayer money, and then eventually we can have green hydrogen economy.

It’s a massive delaying tactic and governmental money grab by the fossil fuel industry.

Of course, there are the other people, the ones who read Rifkin’s Hydrogen Economy in 2000 or so, and never did the math. There are a lot of people heavily intellectually and fiscally invested in the hydrogen economy, and they spend a lot of time advocating for hydrogen pathways instead of direct electrification. The side that does electrolyzers have a good value proposition and should be listened to. The side that does fuel cells, not so much. They all want a piece of that $39 trillion, after all.

And there are countries and industrial giants that perversely love hydrogen for transportation, causing confusion. Some now very old men in Japan’s government and Toyota got together in the 1990s and decided that hydrogen was the answer, and 30 years later they have to die off before new blood can change to electrification without causing them to lose face. Germany’s chemical industry loves hydrogen, and they have salt caverns, and as a result they have a dream of dunkelflaute storage of hydrogen in the caverns, and the odd distinction of being the only country in the world where it’s possible to conveniently own and drive a hydrogen fuel cell car anywhere in the country because they have hydrogen stations all over the place. That filling network was naturally heavily subsidized by the German government, and is barely used. Hyundai has managed to capture some Korean governmental officials and is trying to recreate the Japanese debacle, as well as in smaller scale it’s national nuclear debacle.

Lots of fossil fuel money, investor’s money, and fan bois are spending a lot of time and energy promoting hydrogen for things it’s not useful for. And governments are getting sucked in by the massive fossil fuel lobbying effort, hence a bunch of the contention.


Synthetic Fuels

Finally, we have synthetic fuels. In the best case scenario, these fuels take CO2 from waste emissions and hydrogen from electrolysis of water and combine them into hydrocarbon fuels. It’s entirely chemically possible, and has been done, to make gasoline, diesel, and jet fuel.

Synthetic fuels have pretty much the same negative externalities as biofuels.

  • CO2 (a lot less, but still present)
  • nitrous oxide (N20) with a global warming potential 265x that of CO2
  • nitrogen dioxide (NO2), which is a chemical precursor to smog
  • particulate matter
  • unburned hydrocarbons aka black carbon with global warming potentials thousands of times that of CO2, but typically less than bunker fuel

However, the kicker with synthetic fuels is that everything I wrote about the inefficiencies of hydrogen as a fuel apply doubly to synthetic fuels. After all the trouble of making it, compressing or chilling it, storing it, and possibly shipping it, then you have to use another lossy process to combine it with CO2 (which is also high energy to produce), and typically more processes to get it into a final usable form. By the time you get to the end of the process, the energy is like cocaine you buy from some guy on a street corner, stepped on so many times that you get barely any of the original substance.

What synthetic fuels have going for them is that they can be a bit cleaner than biofuels because there’s none of that messy biology and its convoluted organic chemicals in there, and like biofuels and fossil fuels, you can carry it in buckets, pipe it, and store it. The end result is effective, but deeply inefficient, and inefficiencies means that it will always be a lot more expensive.

But the final problem is when you use the synthetic fuel. Typically, they are burned, replacing gasoline, diesel, bunker fuel or kerosene in places where fossil fuels are used now. And that very expensive synthetic fuel’s remaining energy mostly turns into waste heat, with 15–20% efficiencies in cars, and better in bigger engines, but still below 50%. All that energy to make the synthetic fuels, and then you throw most of it away. This is just like fossil fuels, but since almost all the energy to make them was done millions of years ago by biological and geological processes, we haven’t cared. But when we make our own fuels from scratch, economics makes us care a lot.

Advocates of electrification point out that avoiding all of that hassle makes a lot more sense. Advocates of biofuels point out that biofuels are a lot cheaper, use a lot less energy to make, and have virtually the same advantages as synthetic fuels, and remember all the people advocating for biofuels.

Fossil fuel companies get in the mix too. They love synthetic fuels because they perpetuate things which burn fossil fuels, and they know that no one will ever pay for synthetic fuels when they can buy fossil fuels vastly more cheaply. Lots of baiting and switching, lots of ‘blended’ fuels with subsets of synthetic fuels mixed with fossil fuels, lots of lobbying.

This doesn’t mean we won’t make synthetic hydrocarbons, but they won’t be put in engines and burned for the most part. Power-to-X (P2X) will be for many industrial feedstocks, but power-to-fuel will be supplemental to biofuels.


So that’s the reason why there’s all this tribalism in alternative fuels. There’s a $39 trillion in annual profits in the industry up for grabs. The current players in the industry want to keep it all, and want to create as much confusion about alternatives as possible, and want to ensure that alternatives chosen can also use their products.

Other people, who actually want to solve the negative externalities problem and avert horrific outcomes from global warming, are fighting to be heard above the millions and billions of PR and lobbying.

In the end, the laws of thermodynamics will win. Hype doesn’t stand a chance against reality in the long term. But it’s an uphill battle, because the vast majority of people involved in the debate don’t understand or accept the laws of thermodynamics, but live on hope instead.


Here are some of my publications and podcasts where the subject is dissected in detail:

 

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China and India still rely heavily on coal, climate targets remain ‘very difficult’ to achieve

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China and India still rely heavily on coal, climate targets remain 'very difficult' to achieve

The Huaneng Huaiyin power station in Huaian, China, on Nov. 12, 2023.

Nurphoto | Nurphoto | Getty Images

China and India have not reduced coal generation for electricity, according to a new study, making it harder for Asia’s largest carbon emitters to reach their climate targets.  

While both Asian countries have ambitious plans to cut emissions, heavy reliance on coal — the dirtiest fossil fuel — continues to be the most reliable and affordable way of meet rising electricity demand. 

Global electricity generation from coal has been consistently rising for the last two decades, nearly doubling from 5,809 terawatt-hours in 2000 to 10,434 TWh in 2023, a new study by energy think tank Ember found. The highest increases came from China (+319 TWh) and India (+100 TWh), the study showed.

According to the IEA, coal remains the biggest energy source for electricity generation, supplying more than one-third of global electricity. It will continue to play a crucial role in industries such as iron and steel until new technologies are available.

“It will be very difficult to meet targets without a rapid face down in coal. It’ll certainly be out of reach,” said Francis Johnson, senior research fellow and climate lead at the Stockholm Environment Institute’s Asia Center.

“We’re not phasing out coal fast enough,” he warned.

China

Asia’s largest economy has two big climate goals: to strive for peak carbon emissions in 2030, and reach carbon neutrality in 2060. Still, reliance on coal has shown no signs of waning.  

Electricity demand in the East Asian nation has increased by sevenfold since the beginning of the decade, while coal demand has climbed by more than five times over the same period, Ember’s research showed. 

China, the world’s largest coal producer, emitted 5,491 million tonnes of carbon dioxide from electricity generation in 2023. That’s at least three times more than the U.S. (1,570 MtCO2) and India (1,470 MtCO2), data from the study showed.

Just because you cut coal emissions, it doesn’t mean you get away with emissions in the other sectors

Francis Johnson

senior research fellow and climate lead at the Stockholm Environment Institute

However, the country has made notable progress in renewable energy development, leading to a slowdown in the rate of emission increase from an average of 9% annually between 2001 and 2015, to 4.4% annually between 2016 and 2023, the energy think tank said.

“China is very close to peak emissions and the clean energy transition is going extraordinarily fast,” Dave Jones, global insights program director at Ember, told CNBC.

“Even with very high levels of electricity demand growth, it looks like the levels of renewables growth would be enough,” Jones said.

Excavators transfer coal at the coal terminal in China’s eastern Jiangsu province on January 22, 2024.

Str | Afp | Getty Images

Clean electricity contributed to 35% of China’s total electricity generation, the Ember report showed. Hydropower —  its second-largest energy source — made up 13% of that mix, while wind and solar combined reached new highs of 16% in 2023.

“Had wind and solar generation not increased since 2015, and demand had instead been met by coal, emissions would have been 20% higher in 2023,” the report highlighted, adding that those two sources can now generate enough electricity to power Japan. 

But Stockholm Environment Institute’s Johnson warned China still needs to be less dependent on other forms of fossil fuels.

“Phasing down coal is absolutely necessary, but it’s not sufficient. Just because you cut coal emissions, it doesn’t mean you get away with emissions in the other sectors,” he noted.

India

When India became the world’s most populous country last year, power demand grew by 5.4% compared to 2022. This was more than double the global increase.  

The country’s leaders have been optimistic about its path to net zero, making bold claims that 50% of its power generation will come from non-fossil fuel forms of energy by 2030. 

Emissions from the power sector are expected to peak around 2030, while total energy-related emissions will reach their highest around 2034, Climate Action Tracker estimated. 

Tuticorin Thermal Power Station in Tuticorin, India, on March 21, 2024.

Bloomberg | Bloomberg | Getty Images

But the Ember study showed that added pressure from droughts pushed the country to generate 78% of its electricity from fossil fuels, where coal made up 75% of that mix.

Like China, India has also made significant strides in other forms of renewable energy.

'Huge growth' in India's power demand in the next decade: Tata Power CEO

In 2023, India overtook Japan to become the world’s third largest solar power generator, according to Ember. 

Ember found that India’s solar power generation totaled 113 terawatt-hours (TWh) last year, representing a 145% increase since 2019. This ranks behind China (584 TWh) and the U.S. (238 TWh). 

“When it comes to the pathway to carbon neutrality for China and India, you would expect the emissions to rise when demand grows. But at some point, the GDP growth needs to decouple with emissions where we need it to first peak, then fall,” Ember’s Asia Programme Director Aditya Lolla told CNBC.

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Scout Motors will unveil two flagship EVs this summer, here’s what we know so far

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Scout Motors will unveil two flagship EVs this summer, here's what we know so far

Revived truck brand Scout Motors has set the timetable for the debut of its first-ever EVs. This summer, the public will catch a glimpse of an all-electric pickup and an SUV the Volkswagen sub-brand has been developing since its recent inception. Here’s what we know.

The current iteration of Scout Motors is derived from the beloved nameplate of off-road vehicles built by International Harvester in the ’60s and ’70s. While only about 530,000 Scout trucks were built during its 20-year production run, the early Jeep competitor still holds a small but passionate fanbase.

In 2022, Volkswagen Group shared plans to capitalize off that heritage and revive the namesake for the modern, EV age while still delivering customers the rugged, off-road performance its remaining predecessors are still celebrated for. With the help of contract manufacturer Magna International, Scout Motors has two initial EV models in development

We know the two flagship models will be built in the US, specifically in South Carolina, but so far, we’ve only seen broad renderings of them. The young EV brand is currently working through design and development in Novi, Michigan, while a new Innovation Center is being built nearby.

Meanwhile, construction of Scout Motors’ production facility in The Palmetto State is underway. Before those builds begin however, we still need to see what Scout Motors’ first two EVs look like and know we know when to expect that milestone.

We’ll get a look at Scout Motors’ first EV in late summer

Per an update to the Scout Motors website, an EV reveal is being planned for late summer 2024. Exactly when or where this anticipated event will occur remains TBD. Still, we hope to get the invite as we were there for the groundbreaking ceremony in South Carolina this past February.

That’s about all we’ve learned about new information surrounding Scout Motors’ first two EVs, but previous conversations with executives, including CEO Scott Keogh, have hinted at what to expect during the summer reveal.

In talks with Electrek, Keogh expressed the advantage Scout Motors has as a clean slate design approach that, unlike most young EV brands, has an existing heritage backed by the purchasing and production expertise of parent Volkswagen Group.

That said, Scout intends to do its own thing regarding EV development and design. Scout’s Chief Production Officer, Dr. Jan Spies, told us that the platform technology Scout’s first two trucks will sit atop is “not a twin, daughter, or brother” to any of the platforms currently used in the larger VW Group.

Spies elaborated, saying Scout Motors’ bespoke EV platform gives it an advantage in terms of development speed and offers a beautiful opportunity to deliver a unique car for its environment. Keogh assured us the two bespoke EVs are both “badass” and “robust,” designed to tackle the elements and stay true to the legacy of trucks that inspired them.

VW-US-EVs
(Source: Scout Motors)

We expect Scout to sacrifice a bit of range in exchange for such off-road performance, but we won’t know where those numbers land until the official reveal. In February, Scout Motors’ CEO said the final designs of both trucks were super close, with the actual engineering of the EVs to quickly follow.

While the young automaker has confirmed it will unveil both models in late summer, we have already been warned that EV production will require some cadence while the South Carolina plant continues to scale. Which model will be built first has yet to be determined… or at least made public. Maybe we will find out in a couple of months. We will report back then!

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Tesla now spends ad money to influence shareholders approval of Elon Musk’s $55B payday

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Tesla now spends ad money to influence shareholders approval of Elon Musk's B payday

Tesla has now disclosed that it is spending money to promote its shareholders vote to approve of Elon Musk’s $55 billion compensation package.

Back in 2018, Tesla shareholders approved one of the biggest compensation plans of all-time: a $55 billion fully stock-based CEO compensation plan for Elon Musk.

In January, a judge sided with lawyers representing a Tesla shareholder alleging that Tesla’s board misrepresented the compensation package when presenting it to shareholders.

It’s a complicated issue, but in short, the judge found that Tesla’s board and Musk didn’t play by the rules of a public company when it presented the plan to shareholders.

The judge found that Tesla had governance issues when coming up with the compensation plan and those issues were not communicated to shareholders before voting on the plan.

Instead, Tesla claimed that the plan was negotiated by “independent board members” when it was found that some board directors had personal financial dealings with Musk outside of Tesla, amongst other things.

The Delaware court found that this invalidated the vote, and therefore, Tesla had to rescind the compensation plan.

Last month, Tesla told shareholders that it will ask them to vote on moving Tesla’s state of incorporation to Texas and then revote for Musk’s compensation plan without changing anything.

Since then, Tesla has been working hard to get shareholders to vote for those two items. It started a website to promote it, sent countless communications to shareholders about it, and now, the company’s board is going a step further.

In a new filing with the SEC, Tesla confirmed that it is now buying ad spaces to encourage shareholders to vote for these items:

Tesla has to file with the SEC all the “communications” it has with shareholders regarding the vote and this time, the communications are listed as “sponsored” on Google – meaning that Tesla bought Google ads for it.

The automaker even spent money on Elon Musk’s pockets by buying ads on X with the post listed as “promoted”.

Tesla shareholders have until June 13th to vote their shares.

Electrek’s Take

Tesla’s board is clearly getting nervous about the vote.

It’s pretty funny that Tesla’s board, which got Elon’s compensation package invalidated after a judge found governance issues, is now approving spending Tesla’s money on an Elon-owned platform to try to influence a vote that would send even more money into Elon’s pockets.

That’s where we are now.

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