Tag Archives: greenhouse gases and oceans

An Impossible Made Possible: the Green Energy Revolution

Since the cost of renewable energy can now be competitive with fossil fuels. Government, corporate and consumer interests finally seem to be aligning.  The stock market has noticed. After years of underperformance, indexes that track clean-energy stocks bottomed out in late 2018. The S&P Global Clean Energy index, which covers 30 big utilities and green-technology stocks, is now up 37% over two years, including dividends, compared with 18% for the S&P 500.

This year’s Covid crisis will delay some renewable projects, but could speed up the energy transition in other ways. Alternative-energy spending has held up much better than spending on oil and gas. Globally, clean-energy investment is now expected to account for half of total investment in the entire energy sector this year, according to UBS.  Moreover, the crisis has pushed governments to spend money, including on renewable technologies. The massive stimulus plan announced by the European Union last month is decidedly green. The German government increased electric-car subsidies as part of its pandemic-related stimulus package rather than rolling out a 2009-style “cash-for-clunkers” program. China’s plans include clean-energy incentives, too.

Solar and wind are now mature technologies that provide predictable long-term returns. Big lithium-ion batteries, such as those that power Teslas, are industrializing rapidly. More speculatively, hydrogen is a promising green fuel for hard-to-decarbonize sectors such as long-haul transport, aviation, steel and cement.  Many big companies—the likes of Royal Dutch Shell, Air Liquide and Toyota —have green initiatives worth many hundreds of millions of dollars. They are, however, a relatively small part of these large businesses, some of whose other assets may be rendered obsolete by the energy transition… Early-stage electric-truck maker Nikola jumped on its market debut this month to a valuation at one point exceeding that of Ford.

Investors might be better off looking at the established specialists in between. Vestas is the world’s leading manufacturer of wind turbines. Orsted, another Danish company, has made the transition from oil-and-gas producer to wind-energy supplier and aspires to be the first green-energy supermajor. More speculatively, Canadian company Ballard has three decades of experience making hydrogen fuel cells.

Rochelle Toplensky, Green Energy Is Finally Going Mainstream, WSJ, June 24, 2020

Turning Oceans into Muck

Oxygen is critical to the health of the planet. It affects the cycles of carbon, nitrogen and other key elements, and is a fundamental requirement for marine life from the seashore to the greatest depths of the ocean. Nevertheless, deoxygenation is worsening in the coastal and open ocean. This is mainly the result of human activities that are increasing global temperatures (CO2-induced warming) and increasing loads of nutrients from agriculture, sewage, and industrial waste, including pollution from power generation from fossil fuels and biomass.

Facts: During the past 50 years the area of low oxygen water in the open ocean has increased by 4.5 million km2. The world’ oceans are now losing approximately  1 gigaton of oxygen each year. The Millennium Ecosystem Assessment released by the UN in 2005 reported that nitrogen containing compounds (e.g. sewage, fertilizers) release into the oceans grew 80 percent from 1860 to 1990.  Increasing temperatures will reduce the capacity of the ocean to hold oxygen in the future. Oxygen deficiency is predicted to worsen in estuaries, coastal areas and oxygen minimum zones in the open ocean. The ocean’s capacity to produce oxygen will be reduced in the future.
Habitat loss is expected to worsen, leading to vertical and horizontal migration of species.

Oxygen deficiency will alter biogeochemical cycles and food webs. Lower oxygen concentrations are projected to result in a decrease in reproductive capacity and biodiversity loss. There are important local decreases of commercially important species and aquaculture production. Harmful Algal Blooms will be exacerbated from nutrients released in bottom waters due to hypoxia (e.g. in the Baltic Sea).Reduced ocean oxygen concentrations will lead to an increase in greenhouse gas emissions, thereby initiating feedbacks on climate change.

Excerpts from UNESCO, Jan. 2018

View Extensive Abstract

Background paper (pdf)

Global Ocean Oxygen Network: Through the participation of high level scientists from across the world, the IOC expert group, the Global Ocean Oxygen Network GO2NE, established in 2016, is committed to providing a global and multidisciplinary view of deoxygenation, with a focus on understanding its multiple aspects and impacts.