Large amounts of carbon capture as a solution is an ‘illusion’ – IEA
The oil and gas industry is banking on carbon capture as its “fix” for climate change. The IEA’s new report dispels that idea and offers real solutions.
The oil and gas sector currently accounts for just 1% of clean energy investment globally. A special report from the International Energy Agency (IEA) released ahead of the COP28 climate summit explores how the fossil fuel industry “can take a more responsible approach and contribute positively to the new energy economy.”
In other words, the fossil fuel industry needs to get on the renewables bandwagon now, and not with large-scale carbon capture. The IEA provides a roadmap in its new report, “The Oil and Gas Industry in Net Zero Transitions.”
Global demand for both oil and gas is set to peak by 2030, if not by 2025. If governments deliver in full on their national energy and climate pledges, demand will fall 45% below today’s level by 2050. In a pathway to reaching net zero emissions by mid-century, which is necessary to keep the goal of limiting global warming to 1.5C within reach, oil and gas use will decline by more than 75% by 2050.
Or, to spell it out in monetary terms, the report’s analysis finds that the current valuation of private oil and gas companies could fall by 25% from $6 trillion today if all national energy and climate goals are reached, and by up to 60% if the world gets on track to limit global warming to 1.5C.
The status quo is impossible
Every oil and gas company’s transition strategy can and should include a plan to reduce emissions from its own operations, asserts the report – yet companies with targets to reduce their emissions account for less than 50% of global oil and gas output.
The IEA also points out that carbon capture can’t be used as a linchpin by the fossil fuel industry to maintain the status quo. If oil and natural gas consumption were to evolve as projected under today’s policy settings, limiting the temperature rise to 1.5C would require an “entirely inconceivable” 32 billion tonnes of carbon captured for utilization or storage by 2050, including 23 billion tonnes via direct air capture.
The amount of electricity needed to power these technologies would be greater than the entire world’s electricity demand today.
IEA executive director Fatih Birol said:
With the world suffering the impacts of a worsening climate crisis, continuing with business as usual is neither socially nor environmentally responsible.
The [oil and gas] industry needs to commit to genuinely helping the world meet its energy needs and climate goals – which means letting go of the illusion that implausibly large amounts of carbon capture are the solution.
How to be part of the solution
The report finds that the oil and gas sector is well placed to scale up some crucial technologies for transitions to clean energy, such as offshore wind and geothermal energy. It’s going to have to change tack in many other aspects of its business, too. It needs to increase investment in EV charging facilities – turn the gas stations into EV stations. The sector can also move further into the plastics recycling industry as global bans on plastic continue to grow.
Further, the production, transport, and processing of oil and gas results in nearly 15% of global energy-related emissions – equal to the US’s entire energy-related emissions. The fossil fuel industry’s emissions must decline by 60% by 2030 to limit global warming to 1.5C by 2050. The emissions intensity of oil and gas producers with the highest emissions is currently five to 10 times above those with the lowest, showing the vast potential for improvements. So it needs to boost efficiency and electrify its facilities across the sector.
Reducing emissions from methane, which accounts for half of the total emissions from oil and gas operations, would also provide a big win, as methane reduction strategies are well-known and inexpensive.
The oil and gas industry invested around $20 billion in clean energy in 2022, or roughly 2.5% of its total capital spending. It can and must do a lot better. To align with the Paris Agreement, the IEA says, it must put 50% of its capital expenditures towards clean energy projects by 2030, on top of the investment required to reduce emissions from its operations.
Not only is it imperative that the fossil fuel sector shifts gears to limit global warming – it’s also good business.
Photo: “Coal power plant” by eutrophication&hypoxia is licensed under CC BY 2.0.
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Tesla is going to build a new Megafactory in Texas near Houston, according to a tax abatement agreement with Waller County.
At the time of writing, Tesla had yet to comment on the new project, but the Waller County Commissioners Court confirmed the project on Wednesday when they approved a tax abatement deal with the company:
Under the proposed agreement, Tesla will receive tax abatements from Waller County based on property improvements. The deal includes $44 million in facility improvements and $150 million in Tesla manufacturing equipment that Tesla will install. The next phase involves a new $31 million distribution facility with about $2 million in Tesla distribution equipment and building upgrades.
Tesla is going to take over a 1-million-sq-ft building that it already held the lease on at the Empire West industrial park near Katy, Texas – just outside of Houston.
Logistics company DB Schenker occupied the space where it handled parts for Tesla, but it will move out and Tesla plans to build Megapack production lines at the site:
Tesla will operate a new Megapack battery storage manufacturing facility at a 1 million-square-foot building, which was initially constructed with no tenant on speculation that it would attract jobs and economic development.
Tesla has previously referred to plants producing Megapacks as “Megafactory”. The company already operates one in Lathrop, California, and one in Shanghai, China, where it just started production.
Those factories are set up for a production capacity of 40 GWh worth of Megapacks per year.
It’s not clear if Tesla plans for a similar capacity at this new factory, but the county announced project should result in creating 1,500 jobs.
In addition to the existing building, the project will include the construction of an additional “600,000-square-foot distribution facility with some manufacturing capabilities.”
Unlike its automotive business, Tesla’s energy business has been growing at an impressive pace – although prices and margins have come down last year.
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![Is Genesis taking notes from Porsche? New GV60 Magma caught with the Taycan [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/03/Genesis-GV60-Magma-Porsche-2.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Genesis is gearing up to unleash its alter ego with its upcoming Magma lineup, its debut into the world of high-performance luxury vehicles. First up is the Genesis GV60 Magma, due out later this year. As testing wraps up, the GV60 Magma was spotted alongside none other than the Porsche Taycan.
The first dedicated Genesis EV model, the GV60, will kick off another new chapter for the Korean luxury automaker.
Genesis unveiled the GV60 Magma last March, claiming it will kick off “the brand’s expansion into the realm of high-performance vehicles.” The performance EV includes an improved battery, chassis, and motor for added performance.
The Magma model boasts a wider, lower stance for more control. Other key upgrades include a wider front air intake to help cool the batteries, motor, and brakes. It also includes air curtains to maximize efficiency and an added roof fin channels air to the rear wing, generating downward force.
Genesis upgraded the interior to match the GV60 Magma’s luxurious, sporty design. It includes unique sports car-like bucket seats with exclusive “double-diamond stitching” in the Magma orange and titanium coloring.
Genesis GV60 Magma spotted with the Porsche Taycan
With its official debut coming up, the sporty Genesis GV60 Magma was spotted testing alongside a Porsche Taycan and Hyundai’s IONIQ 5 and IONIQ 6 N models.
Despite the camouflage, the video from CarSpyMedia reveals a few new design elements, like the two-line headlight featured on the updated GV60 model.
Genesis will launch the GV60 Magma later this year in its home market, followed by the US, Europe, and others. Production is scheduled to start in the third quarter of 2025.
Will the Genesis GV60 Magma keep up with the Porsche Taycan or Tesla Model S Plaid? Priced and specs will be revealed closer to launch, but it will sit above the Performance AWD trim, which starts at $69,900 in the US. With up to 429 horsepower and 516 lb-ft of torque, it can hit 0 to 60 mph in 3.7 seconds.
| Horsepower | 0 to 60 mph (seconds) |
Starting Price | |
| Genesis GV60 Performance | 429 | 3.7 | $69,900 |
| Genesis GV60 Magma | ? | ? | ? |
| Porsche Taycan | 402 | 4.5 | $99,400 |
| Porsche Taycan Turbo GT (with Weissach Package) |
1,092 | 2.1 | $230,000 |
| Tesla Model S Plaid | 1,020 | 1.99 | $89,990 |
In comparison, the Porsche Taycan starts at $99,400 with up to 402 hp and a 0 to 60 mph time in 4.5 seconds. The Taycan Turbo GT, equipped with its Weissach package, packs 1,092 hp for a 0 to 60 mph sprint in just 2.1 seconds, but it costs $230,000.
Tesla’s Model S Plaid starts at $79,990 and can accelerate from 0 to 60 mph in 3.1 seconds with 1,020 horsepower. Which performance EV are you choosing?
Source: CarSpyMedia
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Tesla gets more than 20% of its parts from Mexico, as well as some from Canada on top of it. So, yes, Tesla will be negatively affected by the tariffs.
However, there’s another one-month delay.
I didn’t think I would have to write this article, but I have seen plenty of “Tesla influencers” claim that Tesla would not be affected by President Trump’s current trade war:
This is false. Tesla gets a significant percentage of its car parts from Mexico and Canada.
NHTSA releases data about the sourcing of parts for all vehicles in the US. Unfortunately, it doesn’t account for the US and Canada together, but it also lists the country of origin for the next largest source of parts.
For Tesla, that’s Mexico for all car models:
| Models | US/Canada | Mexico |
| Model 3 LR AWD/RWD | 75% | 20% |
| Model 3 Performance | 70% | 20% |
| Model Y LR AWD/RWD | 70% | 25% |
| Model Y Performance | 70% | 20% |
| Cybertruck | 65% | 25% |
| Model S | 65% | 20% |
| Model X | 60% | 25% |
This means that Tesla gets more than 20% of its parts from Mexico in addition to what it gets from Canada.
It’s also noteworthy that Tesla’s most popular car, Model Y, gets 25% of its parts from Mexico.
Despite free trade agreements with Canada and Mexico, Trump has implemented 25% blanket tariffs on the countries.
The tariffs were delayed last month, but they went into effect on Tuesday.
However, today, the White House confirmed that they were delayed again just for the automotive industry. Trump reportedly had a call with the big three this morning, Ford, GM, and Chrysler, and he agreed to another one-month delay.
If you needed more proof that Tesla is going to be affected by the tariffs, ever they go into effect, Tesla’s stock was up 2% on the news that Trump agreed to delay the tariffs.
Electrek’s Take
Tesla fans are delusional. They think that because Elon is involved with Trump and he is not fighting the tariffs, it means that it wouldn’t negatively affect Tesla.
That’s a false assumption. Elon is not fighting because he is either completely delusional about Tesla himself or just doesn’t care.
If the tariffs are ever implemented, they will negatively affect Tesla. They will increase the cost of all Tesla vehicles. Some automakers will be more affected, but Tesla will be hurt, too.
The tariffs are a complete mess. They are on one day and delayed the next. I doubt they will ever be in place for any significant length of time.
Their only real impact is making Canadian and Mexican buyers and businesses think twice about doing business with the US. This impact will likely last longer than the tariffs and Trump’s administration.
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