Tag: electric vehicles

Three Industries Where Technology Is Reducing Our Carbon Footprint

 

The science is in. We need to significantly reduce our carbon emissions to limit the amount of warming our planet undergoes as a consequence of climate change.

The good news is, technology is rising up to meet this challenge. The bad news is it needs to do far more, and do it faster. How is technology helping? Well, if we check out some of the industries with the highest carbon footprint (energy, transportation, and agriculture), we can see some of the massive disruptions that are happening there, and how they are impacting emissions.

1 Energy

The energy sector is undergoing a massive transition globally from a system powered by centralised, thermal generation based often on fossil fuel combustion, to one increasingly powered by decentralised renewable sources. And while it would be great if this was happening for reasons of climate concern, it is, in fact, happening for reasons of economics, which is better because it means it is sustainable in the long term.

Why do I say it is because of economics? Because the cost of wind, solar, and lithium-ion battery storage are falling. Falling fast (due primarily to the experience curve). Since 2012 the cost of wind power has fallen 50%, solar power has fallen 80%, and battery storage has fallen 85%. It is now at the point where unsubsidised, combinations of wind and battery storage, or solar and battery storage are able to beat natural gas on price.

Don’t take my word for it. At the Wolfe Research 2019 Power & Gas Leader’s conference last month (October 2nd, 2019) Jim Robo, Chairman, and CEO of NextEra Energy the biggest and most successful utility in the US said

“We see renewables plus battery storage without incentives being cheaper than natural gas, and cheaper than existing coal and existing nuclear… And that is game-changing”

Then, when you consider the amount of time it takes to deploy a power plant, renewables win again.

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And consequently, the share of new power generation being deployed globally that is renewable is rising rapidly, while the share of new fossil fuel generation is falling fast.

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And it is not just the supply side of the equation that is changing. The demand side is changing rapidly as well.

More and more organisations are demanding that their energy provider only supply clean, renewably sourced electricity. In fact, RE100, “a global corporate leadership initiative bringing together influential businesses committed to 100% renewable electricity” counts at time of writing (November 2019) 212 of the world’s largest companies (including my own employer SAP) as members. All 212 companies are either sourcing all their electricity from renewable sources or have committed to doing so in the near future. Companies do this because it is good for business. Consumers feel better about purchasing goods if they know they were produced using renewable energy, and employees feel better about working for organisations committed to renewable energy.

 

2 Transportation

So the carbon intensity of electricity, one of the main carbon polluters is falling worldwide on a gCO2/kWh basis. What about one of the other big polluters I mentioned at the start, Transportation. Well, fortunately, electric grids the world over are embracing renewable energy, because transportation is now starting to use electricity as a fuel, instead of dino-juice!

Why is transportation going electric? Three main reasons:

  1. Increasing environmental awareness among consumers
  2. Regulations from regions, countries and local governments and
  3. Economics – the costs to operate an electric vehicle (EV) are significantly less than a fossil fuel one
Nissan Leaf charging
Photo credit Tom Raftery

Greta Thunberg has done an amazing job of raising awareness in younger generations particularly about the dangers of climate change, but even before she burst on the scene, the 2019 regulations governing NEVs (New Energy Vehicles) in China and the 2020 emissions regulations for vehicle manufacturers in the EU (as well as local ordinances by cities restricting access to older, more polluting vehicles and countries on the phase-out date for the sale of Internal Combustion Engined vehicles) meant that vehicle manufacturers have had no option but to get on board with the electrification of cars and increasingly other modes of transport as well.

At a time when global vehicle sales are falling, sales of EVs are taking off.

statistic_id270603_battery-electric-vehicles-in-use---worldwide-2012-2018

Volkswagen, who have had some *ahem* reputational issues recently, have decided to embrace the Winston Churchill mantra of never letting a crisis go to waste, and are going all-in on EVs. They plan to spend €60bn (yes billion with a “b”) by 2024 to switch to electric, hybrid and connected vehicles. They will introduce up to 75 all-electric models, around 60 hybrid vehicles and plan to sell 26 million all-electric vehicles as well as around 6 million hybrid vehicles by 2029.

Perhaps even more tellingly, Daimler recently announced that they are stopping their internal combustion engine development initiatives and focussing instead on electric vehicles. The reason this announcement is so game-changing is that Daimler owns Mercedes Benz and Karl Benz, the founder of Mercedes Benz received the patent for the world’s first production internal combustion engine vehicle in 1886. Now 133 years later Daimler has decided that the era of the internal combustion engine is over, and EVs are the future.

And it is not just cars, motorbikes are also going electric with announcements of electric bikes from all the major manufacturers including Vespa, Yamaha, Honda, all the way up to Harley Davidson.

Buses, trucks (from the large class 8 all the way down to delivery trucks), and refuse collection vehicles are also going electric. This is important not just for reducing their carbon emissions, but also because these vehicles often work primarily in urban centres so converting them from diesel to electric will improve air quality, reduce noise pollution, and significantly reduce the cost of operation for these machines.

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Also, when you take into account the fuel use by categories of vehicle, you can see from the chart above that class 8 trucks, buses, and refuse collection vehicles consume far more fuel than other vehicle categories. Fuel use is of course, not just a good proxy for their potential to pollute, but also for their running costs so the economic case to shift these to electric is very strong. In the case of buses, battery-electric buses cost 20c per mile to operate over their lifetime, whereas diesel buses cost 75c and so, battery-electric buses will dominate the market by the late 2020s.

And it doesn’t stop there. Construction equipment is going electric. Ships are going electric. Even planes are going electric. Global consultancy firm Roland Berger is currently tracking 170 different electric plane initiatives (about 50% are in the urban air taxi space). While the Johan Lundgren, CEO of easyJet has said that:

easyJet is collaborating with US company Wright Electric to support their goal for short-haul flights to be operated by all-electric planes within 10 years

It is hard to think of a mode of transportation that is not moving towards electric drivetrains. And as we saw above in the section on energy, as our grids are getting cleaner daily, shifting transportation to electricity quickly drops transportation’s carbon footprint too (as well as reducing noise pollution, and cleaning up our air quality).

3 Food Production

Food production is the third industry where technology is about to play a huge part in reducing our carbon footprint. Agriculture globally accounts for about 13 percent of total global emissions. That makes the agricultural sector the world’s second-largest emitter, after the energy sector. And this doesn’t include emissions associated with deforestation to clear land for more agriculture.

However, shifting away from our current practices of food production to one where our plant food is grown in massive indoor vertical farms has the potential to significantly clean up agriculture’s environmental toll.

Indoor vertical farms use 95% less water and 99% less land than conventional farming practices. They use no soil, require no herbicides or pesticides and they can produce food in the middle of cities, thereby reducing drastically the crop’s food miles. When you are producing food so close to the point of consumption, you no longer need to optimise your produce for shelf-life, and you can instead choose to optimise for taste, and/or nutrition.

Then there is the clean meat movement. Clean meat is meat that is produced from either cultivating animal cells (without having to slaughter the animal), or by converting plant protein to take on the taste and consistency of animal protein as companies such as Beyond Meat and Impossible Foods are doing so successfully.

Our current means of producing plant food and meats are vastly inefficient and have a huge carbon footprint. This won’t scale to feed the population of 9-10 billion inhabitants that we are projected to reach in the coming decades, especially as the middle classes grow in the developing world and their meat consumption expectations grow too.

Converting to a system where we produce plants in massive vertical farms, and then using that plant food to create clean meat solves a lot of the problems associated with agriculture today such as the unconscionable cruelty we visit on the animals we breed for slaughter, the vast amounts of antibiotics that are used in agriculture leading to the development of multi-drug resistant superbugs, and agriculture’s massive carbon footprint.

Zebra
Zebra in Pilansberg reserve – photo credit Tom Raftery

If we return the land we have stolen from nature for agriculture back to the wild we can restore the enormous losses we have seen in recent decades in biodiversity, create a huge new ecotourism industry, and through reforestation sequester from the atmosphere much of the carbon we have emitted in the last century, mitigating the or possibly turning back the worst effects of climate change.

As the United Nations COP25 Climate Change Conference kicks off in Madrid, it is important to remember that although the situation with the climate is indeed dire, there are solutions. We just need to embrace them. Quickly.

This piece was originally posted on my Forbes blog