Page 6 - AsiaElec Week 22 2021

AsiaElec COMMENTARY AsiaElec

IEA analysis last year highlighted that only that growth in these capital expenditures has
around 1% of capital spending by the industry lagged changes in financial markets, in part due
was going to clean energy investments. to a shortage of high-quality clean energy invest-
But project tracking to date in 2021 suggests ment opportunities and appropriate channels for
that this could rise to 4% this year for the indus- allocating capital into projects.
try as a whole, and well above 10% for some of The anticipated $750bn to be spent on clean
the leading European companies. energy technologies and efficiency in 2021
The influence of recovery packages and is encouraging but remains far below what’s
new climate policy measures comes through required to put the energy system on a sustain-
in expectations of rising expenditure in 2021 able path.
on renewable power, electricity grids, energy Clean energy investment would need to triple
efficiency – notably in the buildings sector in in the 2020s to put the world on track to reach
Europe – and emerging technologies such as net-zero emissions by 2050, thereby keeping the
carbon capture, utilisation and storage (CCUS) door open for a 1.5 °C stabilisation of the rise in
and low-carbon hydrogen. global temperatures.
The US may provide further momentum if “As set out in detail in our recent Roadmap
the infrastructure plan proposed by the admin- to Net Zero by 2050, governments need to go
istration of President Joe Biden is enacted. beyond making pledges to cut emissions and
Financial markets are also providing encour- take concrete steps to accelerate investments in
aging signs for clean energy investment. Sustain- market-ready clean energy solutions and pro-
able debt issuance reached a record level in 2020, mote innovation in early-stage technologies,”
and renewable power companies have outper- said Dr Birol.
formed fossil fuel companies on international The gap between today’s investment trends
equity markets. and the needs of climate-driven scenarios is par-
But even though spending on clean energy is ticularly large in emerging market and develop-
set to rise in 2021 by around 7%, the report notes ing economies.™

AMMONIA

AMMONIA
JERA to pursue ammonia as

generating fuel

JAPAN JAPAN’S JERA, the country’s largest power worldwide from both supply and demand sides,”
generator, has revealed plans to develop a global he said.
supply chain for ammonia. JERA has already signed a memorandum of
The company is in talks with natural resource understanding (MoU) with Norwegian ammo-
companies, shipping firms and electric utilities nia maker Yara for the delivery of ammonia as a
to develop the use of ammonia as an energy fuel for generation in Japan. It has also teamed
source, alongside with hydrogen. up with Petronas to discuss collaborations in
JERA, a joint venture between Tokyo Electric ammonia and other energy areas.
Power Co. (TEPCO) and Chubu Electric Power, JERA plans to begin a demonstration project
aims to achieve net-zero emissions by 2050. It to develop technology to co-fire ammonia and
also wants reach 20% use of ammonia at its coal- coal at a 1-GW coal-fired power plant.
fired power plants by 2035. JERA aims to have 5 GW of renewables assets
Ammonia does not emit carbon dioxide by 2025. JERA said it and its partners Equinor
when burned, although its production creates and Electric Power Development Co (J-Power)
emissions if it is made with fossil fuels. had submitted a bid this month for three offshore
“We are also in discussions with various com- wind power projects in Akita, northern Japan.
panies, including resource majors, state-owned JERA has also begun an environmental
companies, shipping companies, domestic elec- assessment process for two other offshore
tric utilities and plant manufacturers,” JERA’s wind projects, one off Ishikari Bay in Hokkaido
president Satoshi Onoda said. and another in Tsugaru in Aomori, northern
“We will strive to build a green ammonia Japan.™
supply chain by continuing to promote alliances

P6 www. NEWSBASE .com Week 22 02•June•2021