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The world is going through historic transitions, a global shift of energy, transportation, and consumption that will impact every aspect of our lives, but is that not the norm and could we learn from De Nederlandse aardgastransiti (“the Netherlands natural gas transition“) in the 1960s?

De nederlandse aardgastransitie

De Nederlandse aardgastransitie

Humanity has not always used petroleum, natural gas, and coal as its dominant energy sources. It transitioned from wood to coal, but that transition took a long time. What can we learn from these historical transitions to effectively deal with the modern energy transition? The author, Sven Ringelberg, natural gas-free project consultant and entrepreneur behind Simpel Subsidie,  wrote his book De Nederlandse aardgastransitie: Lessen voor de De Nederlandse aardgastransitie, or Dutch natural gas transition: Lessons for the Dutch natural gas transition, which looks at the shift from coal to gas for space heating in the Netherlands in the 1960s and the lessons that we could take from this transition that took under 10 years. The book is published in Dutch by Eburon.

The Netherlands transition from coal for space heating to natural gas compared to the world transition from fossil fuels for heating, power, transport, and industrial processes might seem like comparing apple and oranges, but the energy transition is happening on multiple fronts at multiple scales. This book is primarily aimed at those thinking about the Netherlands and their current “energietransitie” away from natural gas and towards renewable energy, but all countries are facing their own energy transition and this book offers interesting insights into how on a country level the energy transition can be done. And it comes in a delightful, well-written package.

The current energietransitie in the Netherlands with projects and the creation of gas-free neighbourhoods, increasing insulation, and expanding renewable energy has a parallel with the 1960s energy transition.


Natural Gas and Glittering Nuclear Future


In 1959, the Netherlands discovered a massive gas pocket near Slochteren. The company that discovered it and the Dutch government negotiated, and 10 years later, a country that had normally only heated one room in its homes with coal had converted the majority of its cooking and heating to natural gas, and had introduced more widespread central heating.

This rapid deployment of natural gas is explored in depth in the book, from the negotiations and the reasoning behind it, including one of the main drivers and assumptions of the government at the time. In the 1960s, it was expected that nuclear power would be the future and that if the gas supply was not quickly developed and exploited, it would be hard to recoup the investment, so a plan was created to quickly develop and exploit the natural gas energy source that was expected to last 30 years. Gasunie, a company that was a public-private partnership, encouraged gas use with regressive tariffs. With the tariffs, gas got less expensive the more people used.


Something in the Air


In the 1960s, the marketing for natural gas was about the benefits of using more gas the cosiness and luxury of heat, but in the 1970s, things changed. The Club of Rome publishing the Limits of Growth in 1972 and the oil crisis in 1973 changed the focus from using as much as possible to saving as much as possible. 

The book goes into detail about this change of focus and the results, including a focus on more insulation and how gas was promoted. 

Advertisements for economical use of natural gas from the 1970s. Source: International Institute of Social History. provided by Sven Ringalberg

Advertisements for economical use of natural gas from the 1970s. Source: International Institute of Social History, provided by Sven Ringalberg


The Background


The domestic heating and cooking situation in the 1950s Netherlands was split between multiple types — electric, city gas, coal, and oil. Each had its advantages and disadvantages, but town gas was dominant in cooking and coal was dominant in space heating — but this space heating was limited to the living room due to cost. In the book, Sven discusses how the post-war Netherlands was dealing with the issues of destroyed housing and sub-standard housing and worked to resolve this issue, but rising social standards had created a rising desire for more comfortable central heated homes, and while propaganda for coal talked about the comfortable living room stove, the negatives of coal, oil, town gas, and electric were well known to the users. Natural gas was abundant, cheap, cleaner, and could use the existing town gas network, which created an opportunity for natural gas to become a widespread heat and energy source if properly planned.


Year of Silence


Furthermore, the government benefited from revenue that allowed it to spend on education, infrastructure, and social welfare without tax burden, but after the initial discovery in Slochteren, the discovery was hardly reported on beyond the initial reports of a discovery. Sven Ringelberg discussed the reasons behind the “silence of Slochteren” and how the deal was not nationalization but also not privatization. The details of this arrangement included Shell, Esso, and government entities.


The Transition


The deal between the companies, national government departments, and city municipalities outlined the whole planned transition, from pricing, infrastructure, marketing materials, and the roles of each player in the transition. Sven Ringelberg goes into deep detail about this planning process and each part of the transition, from laying the large backbone of natural gas pipelines to transferring the gas from Slochteren to the municipalities, to the process of switching neighbourhoods to natural gas and retrofitting old town gas stoves. 

Design gas transport network in the Netherlands 1963 - 1975. Source: Gasunie. provided by Sven Ringalberg

Design gas transport network in the Netherlands 1963–1975. Source: Gasunie. provided by Sven Ringalberg.


Lessons to Learn from a 20th-Century Transition for the 21st-Century Transition


According to Sven Ringelberg, this quick (10 years) and somewhat painless transition was helped by a number of factors. One key factor was leadership from the central government that shaped the goals and provided the resources from key partners and agencies to promptly design and plan the transition, which is contrasted against what’s happening now in the Netherlands in 2021, in which municipal governments are tasked with this job but where they lack the resources and might only have “one and a half men and a horse’s head” to create pilots. The fragmentation of responsibilities and resources has led to a lack of standardization (which increases costs) and less momentum towards the goal.

Sven Ringelberg discusses how focusing on financial benefits might be the wrong route to people choosing to go gas-free, that putting a price on something does not always lead to buy-in from the public, but focus on the non-financial benefits that people get from a gas-free home is key, such as comfort or reducing your impact on the environment. This aspect will impact many customer-facing transitions, like the move from fossil fuel vehicles to electric vehicles.


Final Word


Sven Ringelberg has managed to turn a subject that could have easily been a dry, dusty, academic read into a very engaging and informative read. The book has diagrams and tables of key statics, but also anecdotes — from Pinkie from coal propaganda to Kees the gas dog. The book provides a rear-view mirror to contemplate what has taken us to here and what might be needed to keep driving towards a better future.

Gas dog Kees from The Utrecht Archives, provided by Sven Ringalberg

Gas dog Kees from The Utrecht Archives, provided by Sven Ringalberg.

Pinkie the cat in Beatrijs; Catholic weekly for women, 19-07-1958 provided by Sven Ringalberg

Pinkie the cat in Beatrijs, Catholic weekly for women, 19-07-1958, provided by Sven Ringalberg.

For now only available in Dutch, this is a much-needed addition to energy transition literature that readers from around the world could learn lessons from.


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Factorial Energy and LG Chem sign MOU to accelerate solid-state battery development

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Factorial Energy and LG Chem sign MOU to accelerate solid-state battery development

Two next-generation battery material and cell manufacturers are cooperating to expedite solid-state battery development. LG Chem and Factorial Energy have signed a Memorandum of Understanding, hoping to eventually lead the solid-state battery segment with a strategic partnership.

Factorial Energy is a Massachusetts-based solid-state battery developer that has been developing energy-dense solid-state technology for EV propulsion applications. This includes its flagship product, the 100 Amp-hour (Ah) Factorial Electrolyte System Technology (FEST) solid-state cell.

This proprietary battery technology is compatible with existing lithium-ion battery manufacturing equipment, enabling automakers to transition to the advanced cells more seamlessly.

Those solid-state cells have been UN-certified, and A-sample battery cells have been sent to OEM partners. All while Factorial continues cell production at a brand-new facility in its home state. Meanwhile, LG Chem has invested billions in battery material development, particularly those required in cathodes, including solid-state cells, while setting up its own US facilities following a long-term supply contract signed with General Motors.

Now, LG Chem and Factorial are combining their respective expertise in battery materials and manufacturing practices to speed up solid-state battery development and implementation.

Factorial battery
The 100 Ah Factorial Electrolyte System Technology (FEST) solid-state battery cell / Credit: Factorial Energy

LG Chem and Factorial to combine solid-state know-how

To accelerate the development of solid-state batteries, LG Chem and Factorial Energy say they will collaborate, pairing the former’s battery material capabilities with the latter’s next-generation battery material and process innovations. Per Factorial CEO Siyu Huang:

We are thrilled to enter into this collaboration with LG Chem, one of the pre-eminent global leaders in battery materials. The electric vehicle industry is at the cusp of a much-needed breakthrough in battery technology, and we believe that close supply chain partnerships will help accelerate this transition. Together with LG Chem, we’re advancing the development of critical solid-state battery technology that will unlock the electric vehicle future.

Following the initial solid-state development project, LG Chem and Factorial stated they would explore technology licensing and material supply as part of an expanded strategic partnership with hopes of taking the market. LG Chem CTO Jong-ku Lee also spoke to the signed MOU:

Through this collaboration, we will become technology leaders in the field of next-generation batteries. We expect to secure solid-state materials through Factorial’s accumulated experience in next-generation batteries and LG Chem’s superior material technology.

Details of the new partnership remain light at this point, but this has the makings of a lucrative partnership, as Factorial can benefit from LG Chem’s cathode and other battery material expertise. At the same time, LG Chem can successfully supply essential materials to Factorial’s FEST solid-state cells, especially as they develop toward scaled production.

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BETA hits its latest eVTOL milestone, transitioning mid-air with a pilot onboard [Video]

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BETA hits its latest eVTOL milestone, transitioning mid-air with a pilot onboard [Video]

Electric aircraft developer BETA Technologies has shared video footage of its ALIA eVTOL transitioning from vertical takeoff to forward propulsion in its latest test video. This is a key milestone as the company seeks certification for the aircraft ahead of several use cases.

BETA Technologies is a fully integrated electric aircraft and systems developer based in Vermont that we’ve been reporting on since 2021 with the debut of its first electric vertical takeoff and landing (eVTOL) aircraft – the ALIA-250, which has since been renamed the ALIA VTOL.

The ALIA VTOL has since been joined by an electric conventional takeoff and landing (eCTOL) plane called the ALIA CTOL, which has flown tens of thousands of test miles to date en route to evaluation flights for FAA certification and is targeting full approval for commercial operations by 2025.

US Air Force project AFWERX remains a partner and long-time collaborator with BETA Technologies, helping develop its eVTOL and eCTOL technology. Recent updates have included a lot progress with the ALIA eCTOL, including international flights to Canada and a successful testing deployment with the US Air Force.

Recently, however, BETA has been touting a key milestone in the development of its ALIA eVTOL, transitioning from vertical takeoff to forward flight while in the air.

BETA eVTOL
Source: YouTube/BETA Technologies

Watch BETA’s ALIA eVTOL transition mid-flight

We recommend watching the five-minute flight video below, which gives you an idea of all the prep and testing that went into the eVTOL’s first transitional flight before BETA ever left the ground. While the transition may seem simple at first glance, it’s rather difficult to engineer an aircraft that can take off in one direction and then adjust its rotors to move on an entirely different axis… all while in the air.

BETA stressed the importance of this eVTOL flight test milestone because it validates the ALIA’s “lift and cruise” design. As a simpler solution to the challenge of runway independence, BETA believes it can certify its eVTOL aircraft more quickly.

Better yet, BETA relayed that its eVTOL design significantly reduces maintenance and cost while increasing flight reliability and safety. All without any air pollution. Per the release:

We’ve been progressing toward this technical milestone for a while. It’s a new flight regime, and we fly all our missions with a pilot in the seat, so we approached it the best way we know how: by respecting physics. Like everything we do at BETA, we took a methodical, step-by-step approach.

Transition — and all of the incremental testing leading up to it — provides us with the data we need to validate our design decisions as we continue toward certifying A250. It also brings us one step closer to getting this technology into the market and into the hands of our customers to complete meaningful missions

Looking ahead, BETA says the ALIA aircraft will be used by the military first, then cargo carriers and commercial passenger operations. The ALIA eVTOL transition test seen below was piloted by Nate Moyer, BETA test pilot, and former experimental test pilot for the US Air Force:

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‘A real wildcard’: World’s largest wealth fund issues inflation warning on hot commodity markets

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‘A real wildcard’: World’s largest wealth fund issues inflation warning on hot commodity markets

Nicolai Tangen, chief executive officer of Norges Bank Investment Management, during a news conference in Oslo, Norway, on Tuesday, Jan. 30, 2024.

Bloomberg | Bloomberg | Getty Images

The chief executive of the world’s largest wealth fund says there are many wild cards in financial markets right now, but the “big worry” for investors is what a commodities rally could mean for the inflation outlook.

Nicolai Tangen, CEO of the Norges Bank Investment Management (NBIM), told CNBC’s “Squawk Box Europe” on Tuesday that soaring energy and raw material prices could prove to be a significant headache for major central banks as they continue to fight inflation.

As of Tuesday afternoon, the S&P GSCI, a benchmark index that tracks the performance of global commodities, had jumped 9% since the start of the year, outpacing the broad S&P 500 index.

Oil and copper prices have climbed around 13%, respectively, year-to-date, while gold has repeatedly notched fresh record highs in recent months.

Asked whether he had any concerns about hot commodity markets, NBIM’s Tangen replied, “Yes, the big worry is just what that could mean for inflation right?”

He added, “So, if energy and raw material prices continue to move up, that is going to feed through to end-product prices, which are going to be higher. And that could be the real wildcard when it comes to inflation expectation.”

'Clearly a lot of froth' in the tech sector right now, says the CEO of the world’s largest wealth fund

NBIM manages the so-called Norwegian Government Pension Fund Global. The world’s largest sovereign wealth fund, which was valued at 17.7 trillion kroner ($1.6 trillion) at the end of March, was established in the 1990s to invest the surplus revenues of Norway’s oil and gas sector.

To date, the fund has put money in more than 8,800 companies in over 70 countries around the world, making it one of the largest investors across the globe.

Fewer rate cuts

European Central Bank President Christine Lagarde had also signaled the impact of commodity prices last week, in the broader context of the institutions next monetary policy steps. She said the central bank remains on course to cut rates, barring any major shocks — but stressed that the ECB would need to be “extremely attentive” to commodity price movements.

“Clearly on energy and on food, it has a direct and rapid impact,” Lagarde said.

Euro zone inflation slowed by more than expected to 2.4% March, bolstering expectations of a near-term rate cut. Market pricing for interest rate cuts, which has been highly volatile in recent weeks, now also points to the ECB appearing set to ease monetary policy before the U.S. Federal Reserve.

With most readings putting U.S. inflation at around 3% and not moving appreciably for several months, traders on Tuesday afternoon were pricing in a 13% chance of a U.S. rate cut in June, according to the CME Group’s FedWatch tool. That’s down from nearly 70% last month.

A worker supervises the furnace in the foundry at the ZiJIn Serbia Copper plant in Bor, Serbia, on Thursday, April 18, 2024. Copper prices have rallied recently, driven by an improving outlook for global manufacturing and mine disruptions.

Bloomberg | Bloomberg | Getty Images

Tangen said Norway’s wealth fund continued to believe it would be “tough” for central banks to get inflation down toward target levels, and major central banks would move differently, depending on local inflationary pressures.

Acknowledging multiple factors that now underpin inflation, Tangen said, “You have some of the geopolitical tensions, you have near-shoring, you have the climate effect on food through the world’s harvest, you’ve got some changes in trading routes and so on, and wage inflation is also higher than perhaps we had expected.”

He added, “We are expecting fewer rate cuts than the market did, of course, earlier in the year. I have to say my surprise is that the market has taken it so well. I would have expected the market to have reacted more negatively to this postponement of interest rate cuts.”

— CNBC’s Jeff Cox contributed to this report.

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