The takeaways from NARUC’s Summer Policy Summit, securing copper supply, and a hydrogen case study.
Wood Mackenzie
Wood Mackenzie is the leading global data and analytics solutions provider for the energy transition.
Why the world needs global rules on polymer use
UN nations are currently negotiating terms for a legally binding agreement to address global plastics pollution. Given that existing local regulations are having minimal impact on total plastics usage, a worldwide treaty is badly needed. But what shape should global regulation take to be effective in reducing polymer demand?
We recently published an in-depth insight from our plastics sustainability team assessing the benefits and limitations of key local regulations and exploring how global UN legislation can be more effective.
Securing copper supply: no China, no energy transition
The world cannot decarbonise without copper, a key component of electrification. Amid efforts to secure minerals for the energy transition and achieve climate goals, demand is set to surge. We estimate that demand for copper will grow by 75% to 56 million tonnes (Mt) by 2050.
Meeting this demand will require major investment. And while the scale of the investment required in new mine supply is well understood, the implications for the downstream processing (smelting and refining) and semi-manufacturing of copper are being overlooked. Currently, China dominates both these sectors.
At the same time, nations such as the US also seek supply chain diversification away from China. Legislation such as the Inflation Reduction Act (IRA) aims to subsidise supply chain investments in the US. Meanwhile, critical minerals strategies in Europe, Australia and Canada that now include copper lean toward supporting mineral extraction and the circular economy.
What will it take to secure supply of this critical mineral? And are the dual goals of decarbonisation and reducing dependence on China at odds?
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Hydrogen case study: operational efficiency and electrolyser technology at the Sinopec Kuqa project
In December 2023, Sinopec reported that its Kuqa project produced 2,010 tonnes (22.36 million m3) of green hydrogen, which was transported to the end-user Sinopec Tahe Refining & Chemical facility. It is expected that by the fourth quarter of 2025 the hydrogen volume from Kuqa will reach 20,000 tonnes per annum (tpa), with the electrolyser operating at 51% capacity. Based on these figures, the project operated at around 20% of its rated capacity in 2023.
What are the likely reasons for Kuqa’s lower-than-expected actual yield in H2 2023? How would the levelised cost of hydrogen (LCOH) be affected if the Kuqa project reaches announced output? And how are Chinese electrolyser OEMs reacting to the project?
Drawing on insight from Lens Hydrogen, WoodMac's Tiantian Zhao explored this project in detail in a new case study.
Takeaways from NARUC’s Summer Policy Summit: load growth uncertainties and no simple solutions
On July 14th – 17th, 2024, NARUC hosted its summer policy summit in West Palm Beach, Florida. The summit brought together regulators across the state to moderate critical policy discussions with utilities, developers, system operators, and other stakeholders.
Unsurprisingly, the main theme among electricity committees was large load growth. The discussions had a strong focus on planning and ratepayer impacts.
Join us at the Carbon Capture Utilization & Storage Conference from 9-10 October in Houston to find out what it takes to accelerate CCUS deployment and how to get investment decisions for funding CCUS projects. View the agenda and register here.