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A standard drilling rig that Chevron will be drilling its first onshore test well for the 14,000-acre Bayou Bend CCUS project is photographed on Thursday, Feb. 22, 2024 in Winnie area. It is expected to have the capacity to store more than 1 billion metric tons of carbon dioxide in underground geologic structures.

Yi-Chin Lee | Houston Chronicle | Hearst Newspapers | Getty Images

A paper mill in a small Mississippi town could help demonstrate whether capturing carbon dioxide emissions and storing it deep underground is a viable path to fight climate change.

The proposed project at International Paper‘s mill in Vicksburg was chosen by the Department of Energy in February to receive up to $88 million in taxpayer funding. If successful, the system would capture and permanently store 120,000 tons of carbon dioxide annually, the equivalent of 27,000 gas-powered cars, according to the companies behind the project.

Amazon, a partner in the project, sources containerboard from the mill for its boxes and packaging. SLB, the oilfield services giant formerly known as Schlumberger, is designing and engineering the carbon capture system in collaboration with RTI International, a nonprofit that developed the technology.

The Vicksburg paper mill project is just one example of how $12 billion in funding from the 2021 bipartisan infrastructure law is supporting the development of carbon capture technology across the United States, as part of the Biden administration’s efforts to achieve net-zero emissions by 2050.

Carbon capture and storage technology today is expensive, logistically complex and faces controversy over its role in the energy transition and safety concerns in communities where pipeline infrastructure would be expanded.

The Paris-based International Energy Agency has described carbon capture and storage as “critical” to achieve global net-zero emissions, while also warning the oil and gas industry against using the technology as a way to maintain the status quo on fossil fuels. Some climate activists accuse the industry of simply investing in carbon capture as way to extend the use of oil and gas.

The technology typically uses chemical absorption to capture carbon dioxide emitted from the chimney of an industrial plant. The emissions are condensed into a fluid for transport, normally through a pipeline, and are stored thousands of feet below ground in depleted oil wells or geological formations such as saltwater reservoirs.

The challenges to implementing the technology are immense. The world needs to capture more than 1 billion metric tons of carbon dioxide annually by 2030, more than 20 times the 45 million metric tons captured in 2022, according to the IEA. By 2050, the amount of carbon that’s captured needs to reach 6 billion tons — more than 130 times the 2022 level, according to the agency.

But the track record of carbon capture and storage so far has been one of “underperformance,” with only 5% of announced projects having reached a final investment decision, according to the IEA. The industry needs to demonstrate that the technology can operate economically at scale after struggling to ramp up deployment for years, the agency says.

The Vicksburg papermill project is still in an early development stage. SLB is confident that it will prove technologically viable, said Fred Majkut, senior vice president of carbon solutions at the company. The goal is to demonstrate that carbon capture and storage is also economically viable, Majkut said.

“The economic viability of carbon capture and sequestration is a challenge today because the cost of building most plants in order to capture carbon dioxide are very significant,” the executive said. It can cost hundreds of millions of dollars to retrofit an industrial plant, he said.

For International Paper, the Vicksburg project is a potential way to produce lower carbon products for consumers who are climate conscious and a potential opportunity to benefit financially through the sale of carbon credits.

“There are examples in the marketplace where customers have the opportunity to express their preferences economically, whether that’s clicking a button to say they want to abate the carbon emissions for a trip in an Uber or an airplane,” said Adam Miklos, director of low carbon innovation at International Paper.

“Ultimately, it has the potential to reduce our emissions and, if successful, present an opportunity to sell carbon and renewable credits,” Miklos said.

Decarbonizing heavy industry

The Mississippi mill is a snapshot of how the oil and gas industry is trying to demonstrate that carbon capture and storage is a viable tool in the race to slash emissions, after using similar technology for decades to extract oil.

The industry has used carbon storage techniques since the 1970s in a process called enhanced oil recovery, in which carbon dioxide is injected underground to create pressure that pushes more crude toward production wells.

Chevron, Exxon, Baker Hughes and SLB, among others, are now repurposing that expertise, betting that carbon capture and storage will serve a large market of heavy industries such as cement and steel that have few good options right now to slash their emissions.

Total spending on carbon capture and storage projects is expected to reach $241 billion worldwide by 2030 if all announced projects materialize, according Rystad Energy. The United States and the United Kingdom are the leaders, with investments expected to reach $85 billion and $45 billion, respectively, by the end of the decade, according to Rystad.

In the U.S., investment in carbon management technologies more than doubled to $1.2 billion in 2023, the first full year after the passage of the Inflation Reduction Act, according to the Clean Investment Monitor. The law supports the industry with tax credits of up to $85 per ton of emissions captured and stored.

Cement plants, for example, produce emissions not only by burning fossil fuels, but also due to the materials used in the manufacturing process. About two-thirds of the industry’s carbon dioxide emissions come from chemical reactions that occur when breaking down limestone.

Cement is one of the most widely-used products globally, second only to drinking water, and is responsible for about 7% of the world’s carbon dioxide emissions alone, according to the United Nations. Cement and steel together represent about 14% of global emissions, according to the U.N.

“Right now, these types of industries have no way to effectively decarbonize to net zero without carbon capture,” Majkut said. “If they want to produce cement, there will be CO2 emissions simply because of the materials that are being used.”

With carbon storage already a mature commercial business, SLB is trying to tackle the capture side, which presents one of the major hurdles to scaling up the technology due to its high cost, according to Majkut. The solvent that would be used to catch carbon dioxide molecules at the Mississippi mill promises to lower the energy requirements of the capture process and make it more cost effective, he said.

“We’re quite comfortable that in the next 12 to 24 months, we will be coming to market with actually that chemistry as part of our core offering and develop what we call process design packages,” Majkut said.

SLB CEO Olivier Le Peuch has said carbon capture and storage will play a leading role in the company’s annual revenue targets of $3 billion by 2030 and $10 billion by 2040 for its new energy portfolio.

SLB this month announced a nearly $400 million investment in Aker Carbon Capture, a pure-play carbon capture company based in Norway, in an effort to accelerate deployment of the technology at commercial scale.

Competitor Baker Hughes is developing direct air capture technology after acquiring a company called Mosaic Materials in 2022. Baker Hughes has not disclosed the value of the deal.

The technology aims to catch low concentration carbon dioxide emissions, which are harder to capture, directly from the atmosphere as well as from industrial plants. Baker Hughes anticipates the technology will most likely come to market by the end of 2026.

Baker Hughes is targeting up to $7 billion in orders by 2030 for its new energy portfolio, which includes carbon capture and storage technology. The company is forecasting a total market for its new energy business of between $60 billion and $70 billion by the end of the decade.

“By 2030, I do believe we’re going to start to see these technologies start to become reasonably competitive,” said Alessandro Bresciani, senior vice president of climate technologies at Baker Hughes.

Chevron, Exxon building Gulf Coast hubs

The Gulf Coast of the United States, home to enormous oil and gas and other industrial plants, is emerging as a center of carbon capture and storage investments in the U.S.

Jeff Gustavson, vice president of lower carbon energies at Chevron, said the region has the potential to quickly increase use of the technology because of favorable geology for storage located close to high concentration emissions that are easier to capture at a lower cost. Some 100 million tons of carbon dioxide are emitted annually from Houston through to Port Arthur, Texas, Gustavson said.

Chevron and Exxon are targeting $10 billion and more than $20 billion, respectively, of spending on emissions-reducing technologies that include carbon capture and storage in major projects under development along the Gulf Coast.

Exxon over the past two years has entered agreements to capture carbon emissions from ammonia and fertilizer producer CF Industries and steelmaker Nucor, both in Louisiana, and industrial gas producer Linde in Beaumont, Texas. The country’s largest oil company is targeting a start-up date for a carbon capture and storage system at CF Industries in the first half of 2025.

Dan Ammann, president of low carbon solutions at Exxon, said those three contracts combined promise to remove 5 million tons of emissions annually — the equivalent of converting 2 million gas-powered cars to electric vehicles.

Exxon completed its acquisition of the carbon-dioxide pipeline operator Denbury for $5 billion in late 2023. The deal gave Exxon more than 900 miles of pipeline stretching through Mississippi, Louisiana and Texas that are located near at least 10 storage sites in the region.

“It gives us sort of instantaneous scale, instantaneous reach, across this huge source of emissions along the Gulf Coast,” Ammann said of the Denbury acquisition. “It gives us the ability to develop storage all along that pipeline as well.”

Exxon says it now owns the largest carbon dioxide pipeline network in the U.S. As the infrastructure comes together, Exxon is seeing “a very high level of interest from a lot of different emitters along the Gulf Coast,” Ammann said.

Chevron is the operator and lead investor in a flagship project called Bayou Bend, which has a 140,000 acre position of permanent carbon dioxide storage space near Port Arthur and Beaumont, Texas. The project is a joint venture with minority shareholders Talos Energy and Carbonvert.

Negotiations are currently underway with potential customers, Gustavson said, declining to disclose names. The area is home to large petrochemical, refinery, liquid natural gas and industrial gas operations with significant carbon dioxide footprints, he said.

“Bayou Bend could be one of the largest CO2 storage projects in the world. You’re talking several million tons a year of storage,” Gustavson said. The project has the potential for even more storage capacity depending on how much technical progress is made, the executive said.

While the IEA has described carbon capture and storage as “essential” to slash emissions in sectors like heavy industry, agency director Fatih Birol issued a sharply worded statement in November calling on the oil and gas industry to let go of the “illusion that implausibly large amounts of carbon capture are the solution” to climate change.

Birol’s comments came on the back of an IEA report that called on the industry to invest more in clean energy and accept the “uncomfortable truth” that a successful energy transition will result in the scaling back of fossil fuel production. That sparked a backlash from OPEC, which accused the IEA of vilifying the oil and gas industry.

“We’re not saying carbon capture can be implemented everywhere,” SLB’s Majkut said. “As a matter of fact, the primary way to decarbonize should be energy efficiency, scale up of renewables, and effectively carbon capture shall be used on applications that you can’t easily electrify, that you can’t easily decarbonize otherwise.”

Pipeline opposition

Increasing carbon capture and storage to meet net-zero emissions goals in the U.S. will require a massive expansion of pipeline infrastructure. The Department of Energy estimates that the network of carbon dioxide pipelines needs to grow from about 5,200 miles currently to between 30,000 and 90,000 miles.

“The key is the right geology close by to concentrated emissions,” Gustavson said. “That’s where we see this scaling fastest first, but over time, we will need to build more CO2 infrastructure to be able to transport CO2 much longer distances to access the same storage.”

But the permitting process is challenging because pipelines often cross state lines, requiring lengthy approval from multiple jurisdictions and creating bottlenecks, Majkut said.

Pipeline expansion has faced opposition in communities where residents are worried about the safety of transporting carbon dioxide. In 2020, a pipeline owned by Denbury ruptured just outside the village of Satartia, Mississippi, leading to the release of more than 31,000 barrels of carbon dioxide. More than 40 people were hospitalized and 200 individuals were evacuated from the area. Denbury was fined nearly $2.9 million by the U.S. Transportation Department.

Denbury said in a 2022 report that it had upgraded equipment and procedures in the wake of the pipeline leak to “substantially reduce the risk of similar events in the future, as well as mitigate and diminish the consequences in the event they do occur.”

The Energy Department says carbon dioxide pipelines have a better safety record than natural gas pipelines and other large infrastructure such as electric transmission. There have been no deaths from carbon dioxide pipelines over the past two decades and one injury in addition to the hospitalizations from the Satartia incident, according to the Transportation Department.

There are still a lot of uncertainties surrounding carbon capture and storage, said Miklos, the executive at International Paper. But the Vicksburg project is an opportunity to carefully examine the technical and economic viability and the impact on climate over a multiyear period, he said.

“The primary questions are around the ability to do this in a way that is cost effective,” he said.

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A one-of-a-kind secret Tesla Roadster R&D prototype is for sale

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A one-of-a-kind secret Tesla Roadster R&D prototype is for sale

You’ve perhaps heard of the original Tesla Roadster, the car that started Tesla and the EV revolution. Now, a Roadster you probably haven’t heard of is for sale – a one-of-a-kind prototype for a performance package that never saw the light of day.

Recently, we got an email tip about an original Tesla Roadster which the owners were about to put up for sale.

Normally, we wouldn’t write an article just because someone is trying to sell any old car, even a Roadster (that said, I’m thinking of selling mine). But this email stood out because it came from Jamison Cummings, Tesla’s Chief Technician from the Roadster days, and it was about a particularly special Roadster – and one which most people haven’t heard of.

The car, a Tesla Roadster Sport with VIN #1124, was originally bought from Tesla in 2012, then was damaged in an accident and reacquired by Tesla. Tesla’s VP of Service at the time, Joost de Vries, acquired the car and it was repaired and rebuilt under the supervision of Carl Medlock, who at the time was the manager of Tesla’s Seattle service location, and who now runs one of the only third-party Roadster repair shops in the US, Medlock and Sons (Medlock currently co-owns the car along with Cummings).

After being repaired internally by Tesla, de Vries had the idea to develop a performance package for Tesla Roadsters, with the goal of coming up with a way that service could be made profitable – a directive leadership had established for him. An after-purchase performance package would be a way to bring revenue in through service departments.

The project never ended up being released as an option to the public, but the Roadster in question, which was going to be called either “Roadster RR” or “Roadster E-Sport” still assembled a large list of custom cosmetic and performance modifications:

  • Tarox Italian Performance Brakes Front and Rear (only 1 of 3 cars known to be equipped with this system)
  • Custom ABS Flash engineered to work seamlessly with the Tarox Braking System, developed by Continental (also 1 of 3)
  • Hollinger Limited Slip Differential customized for EV torque (one of 2)
  • Custom Tuned Bilstein Performance Sport Suspension (sole unit)
  • Custom Roadster RR camber plates and handling package
  • Hand-laid raw carbon bodywork, making it the only raw carbon Roadster in existence

The most striking feature is that last one, with the entire body clear-coated rather than painted, making the fibers of the carbon fiber visible on all body panels except the bumpers (which are plastic). The Roadster has a carbon fiber body normally, but it’s usually painted, with the carbon fiber only visible on the roll bar (and possibly a few other parts of the body, depending on option kits).

The package was proposed to cost $30,000, and would include several performance upgrades. But the project never finished due to changes in leadership, so it was never offered to the public, and this ended up being the only prototype.

While there are other customized Roadsters out there, this one occupies the unique space of being “factory customized,” at least to some extent. While it didn’t originally come out of the factory like that, the work was done under Tesla’s purview after the fact, with the intent of being an official manufacturer upgrade package – though the project was also controversial within Tesla, as there were accusations of overspending and the package never ended up seeing the light of day.

The car went on to be owned by de Vries until it was bought by Cummings and Medlock in 2022. Since the battery had died, the car was given a new “Roadster 3.0” 80kWh pack, and has been driven less than 100 miles on the new battery. Otherwise, the car has around 31,600 miles total, most of which was applied before the rework was completed.

To find out more about this special Roadster, visit the car’s website (or see it displayed at The Shop in Seattle, sometime soon™). It is for sale right now, and interested buyers can find contact information on the website. Internal documentation about the project will be provided to the buyer.

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Biden rumored to announce quadrupling of tariffs on Chinese EVs, up to 100%

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Biden rumored to announce quadrupling of tariffs on Chinese EVs, up to 100%

The US government is reportedly set to announce wider tariffs on several categories of Chinese goods, including various green products like solar panels and batteries, medical goods, and in particular an increase of tariffs on Chinese EVs from 25% to 100%.

The rumors were first reported late Thursday that tariffs would be extended after a multi-year review of “section 301 tariffs” that had been implemented under the previous administration.

Then today, Wall Street Journal reported that these tariffs would not just be extended, but expanded, with tariffs on Chinese-made EVs quadrupling from previous levels.

Currently, all cars made in China are subject to a 25% tariff when imported to the US, on top of an additional 2.5% tariff that all foreign-made cars are subject to, totaling 27.5%. This large tariff has had the effect of excluding Chinese autos from the US market, as it’s easier to export to countries with lower tariffs first.

However, given Chinese EVs are incredibly affordable, even a 25% tariff might still result in competitive prices. For this reason, it has been considered inevitable by most observers that eventually Chinese EVs would make their way into being sold in the US.

It seems that Biden has also decided that the 25% tariff wouldn’t be enough to forestall the advance, and has decided to instead quadruple it to 100%, meaning that Chinese EVs will effectively sell for double the price they would otherwise if brought to the US. While this has not been announced yet and the White House has declined to comment, an announcement on the new tariffs is expected on Tuesday.

Tariffs have been called for by several entities in the US (and Europe), as Chinese EV manufacturing has rapidly ramped in recent years.

China was originally somewhat slow to adopt EVs – in 2015, EV market share was just .84%, similar to the US market share of .66% and well below California at 3.1% at the time. But in 2023, US market share had risen to a meager 7.6% and California to just 21.4%, whereas China’s EV market share was a whopping 37%, leapfrogging several other leading countries in the process (and it was just 5% in 2020, so the turn upwards has been very rapid over the last 3 years). It caught foreign manufacturers by surprise, leaving ICE car values plummeting in China as consumers are simply not interested.

Despite the massive swing upwards in Chinese EV interest, EV manufacturing has risen even more rapidly. This has left Chinese automakers with more than enough vehicles for the export market, and they have started exporting so many to Europe that they can’t find enough ships to carry them.

Those EVs haven’t made their way to the US yet, but most think that it’s inevitable that they will soon. But with these increased tariffs, that makes it a little less likely that US consumers will gain access to these cheap, high-tech Chinese EVs.

This isn’t the first move that Biden has made to limit the ability of the Chinese auto industry to operate in the US. The Inflation Reduction Act which updated the US EV tax credit included protectionist measures to disallow Chinese-sourced EVs from taking advantage of the credit. To qualify, EVs must be assembled in America and must have a certain percentage of components sourced in the US or US free trade countries, and can’t include parts from “foreign entities of concern” (though there are some ways around this).

The net effect of the regulation is that batteries sourced from China have a harder time getting access to US tax credits, thus reducing their competitiveness in the US market.

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GM demos its new Energy products by running a mansion off a Silverado EV

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GM demos its new Energy products by running a mansion off a Silverado EV

GM has a new suite of energy products that allow you to share power between your car and your home, and we got to see them in action.

GM invited us to a swanky house in Beverly Hills to demonstrate its new home energy products, including vehicle-to-home (V2H) backup power that allows you to power your house off of your EV battery.

These products include its new bidirectional EV charger, which it’s calling the GM Energy Powershift Charger ($1,699), and the GM Energy V2H Enablement Kit ($5,600) which comes with AC-DC inverter, Home Hub (the computer which manages loads through the house), and dark start battery (provides a small amount of power as the system starts up and shifts from home to vehicle power).

The systems can be bought separately or bundled together for $7,299. Installation is separate (and costs can vary widely), and GM has partnered with Qmerit, a national EV charging installation company, to make it easier for customers to find an installer.

GM set up its system and brought out two new Silverados to demonstrate both their vehicle-to-load (V2L) and V2H capabilities. One Silverado was connected to the outdoor speakers and screen running the presentation GM gave us on its products, and the other was connected to the house to show what happens when the V2H changes over from home to truck power.

To do so, GM flipped the main breaker for the house, then showed us the process of of the car taking over. It took around 35 seconds – much longer than other battery backup solutions, but quicker than sitting puzzled in the dark, stumbling to find a flashlight, going to the breaker box to flip switches uselessly and then concluding that you’ll be spending the rest of the night reading by candlelight.

But once the takeover happened, the whole party was being powered by the truck. The lights and music in the garage and throughout the house were powered by the truck, along with the kitchen where the hors d’oeuvres were being prepared.

The car is capable of putting out 9.6kW – enough to power most of your everyday needs, but not high simultaneous loads (i.e. don’t run the pool pump and the dryer at the same time as everything else), though all of this depends on how energy-hungry your house is. And the Silverado’s massive 200kWh battery pack can power an average American home for around 5-6 days. GM told us the system was powering about 60% of the 10,000 square-foot house the demonstration happened in.

GM says it is working to reduce the amount of time the switchover from grid to car power takes, but that it will inevitably be slower than home battery solutions (which can respond in only a couple seconds, or even less than a second) because those stay continually energized, whereas the car requires more communication and a wake-up process.

Speaking of home battery solutions, GM Energy also plans to sell one of those, though that unit won’t be for sale until later this year (same with solar integration, which will also come this year). Batteries will be available in 10, 17, and 35kWh packages. The systems are built with stacks of modular units, each 1.7kWh, so the packages come with either 6 or 10 stacked units.

The whole setup – see 6-unit, 10kWh modular battery bank on left

This battery backup solution will take “less than 5 seconds” to take over, though we think (or hope) that GM is being conservative with that. Competing home energy products like Tesla’s Powerwall can take over as quickly as around 200 milliseconds, and we’ve heard of others coming that might be even faster. But the battery wasn’t connected for the purposes of this demonstration.

GM wants to see this product rolled out in as many houses as possible, and in service of that, plans to have V2H support on all of it’s electric vehicles by 2026. It told us that these cars would all be capable of 9.6kW output, so you won’t need a 200kWh Silverado to power your house, you’ll also be able to do it with the $35k entry-level Equinox, or eventually with Chevy’s upcoming “Boltium” next-gen Bolt EV.

This is a contrast to most other EV makers – Hyundai and Kia have V2L on their vehicles, but only up to 1.8kW; Ford has its Intelligent Backup Power system, but only on the F-150 Lightning; Tesla has Powershare, but only on Cybertruck; Rivian wants to get around to offering bidirectional charging, but isn’t there yet – and so on. GM does seem more committed on this front than anyone else at this time.

Infographic detailing GM Energy’s Home and Commercial ecosystem. Graphic: GM

GM’s electric vehicles will be compatible with GM Energy’s products, though won’t be cross-compatible with other battery backup and bidirectional charging systems in the short term. Eventually there will be cross-compatibility, but first the ISO 15118 standard, which governs Plug & Charge & bi-directional/V2G communication, needs to be finalized, which is taking quite some time (read a little more about that here).

GM also plans to build a virtual power plant, as we’ve seen other energy services companies do, which aggregates the energy available from hundreds or thousands of customers and discharges it to the grid when needed. These can be quite lucrative for owners of battery backup systems, though GM hasn’t decided exactly how it will offer these products to its customers yet, and is exploring various financial possibilities to encourage usage.

That’s important, because the system isn’t cheap. As mentioned above, even without the battery, the whole thing costs $7,299 before installation (installation can be very costly – though that was an exceptional case). That’s quite steep just for the gimmick of being able to run your house off of your car, so offering incentives to make that more palatable will help increase uptake. It’s a bit more expensive than Ford’s competing V2H product, comparable to the cost of home generators, and cheaper than home battery backup systems.

But while it does seem a little gimmicky at first glance, the dream of widespread bidirectional power has been talked about among EV advocates for some time, and could solve a lot of energy issues.

2024 Chevrolet Silverado EV RST in a residential garage with GM Energy products. Photo: GM

Even just V2H (which allows powering a home, but not feeding energy back into the grid – that’s V2G) can reduce loads when the grid is most stressed, and reduce energy costs for a home by allowing energy arbitrage, charging a battery at times when power is cheap and then running the house off of the battery when power is expensive and dirty. It leads to lower energy bills, and can help grid resiliency by having distributed battery backup in a large percentage of homes.

It’s an exciting possibility, but to get there, we need to get a lot of batteries in homes. And whether they’re stacked on the floor in the garage or parked and plugged in inside of it, GM’s ready to sell you those batteries (*car sometimes included).

You can find out more about GM’s home Energy products at its GM Energy website. At first, availability is limited to California, Florida, Michigan, New York and Texas, but GM plans to expand beyond those boundaries over time.

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