Nuclear energy is facing a marked uptick in private investment over the next five years, spurred by the escalating demand for clean energy and energy security. Both governments' and the private sector's net-zero ambitions are driving significant interest in high-growth energy areas like nuclear energy. Further, according to the International Energy Agency, existing nuclear plants make up a large part of global energy production today - representing nearly 10% of global energy production and nearly 20% in advanced countries. The further growth of nuclear power is becoming critical to the decarbonization of the electricity grid and the growing market for emissions-free energy.

In this episode, host Lincoln Payton brings together a panel from investment giant Brookfield Corporation to explore the transformative role that nuclear energy plays in the pursuit of a net-zero future, particularly in the private sector investment landscape. Joining Lincoln for this episode are Pramod Shukla, Managing Director in Brookfield's Private Equity Group; Sam Meyers, Senior Vice President at Brookfield Asset Management; and Mike Daschle, SVP of Sustainability for Brookfield Properties.

The discussion spans the intricate considerations around nuclear power investments, the ability of nuclear power to meet the world's growing energy demands, and the role of companies like Westinghouse within the broader nuclear industry. A projected and insightful outlook on nuclear energy, Lincoln and the panel acknowledge its significance and the expected evolution of investments and deployments over the next five years.

Key Takeaways:

1. Clean power is on the rise: the world is turning to nuclear energy as a critical tool for decarbonization, as this clean energy source offers a vital solution for achieving net-zero emissions goals.

2. Gigawatt-scale giants lead the way: while smaller modular reactors (SMRs) hold immense potential for future deployments, their development remains in its early stages, meaning that larger, gigawatt-scale plants will likely dominate the energy landscape for the next decade.

3. Public sentiment shifting in favor: public opinion toward nuclear power is undergoing a positive shift with growth in bipartisan support in the USA coupled with the urgency of climate action and the need for clean energy solutions, all of which paint a promising picture for the future of nuclear power.

Resources:

• IAEA's revisions up of projected nuclear buildout by 2050: https://www.iaea.org/newscenter/pressreleases/iaea-annual-projections-rise-again-as-countries-turn-to-nuclear-for-energy-security-and-climate-action

• Energy Monitor on SMRs: https://www.energymonitor.ai/sectors/power/small-modular-reactors-smrs-what-is-taking-so-long/?cf-view

• Bipartisan support in the U.S. is up significantly compared to polling in 2020: https://www.pewresearch.org/short-reads/2023/08/18/growing-share-of-americans-favor-more-nuclear-power/sr_23-08-18_nuclear-energy_1/

Following a riveting conversation with Killian Daly of EnergyTag about hourly matching in carbon accounting, this Energy Minute looks at the work of the Emissions First partnership - a group of companies including Akamai, Meta, General Motors and Salesforce - and its collective focus on carbon matching in clean energy procurement.

Cleartrace's Steven Goldman delves into the difference between hourly matching and carbon matching approaches, and what principles the partnership members are applying in their work. He also explores the evolution from traditional electricity purchasing strategies and discusses how aligning with this approach might boost companies' carbon impacts of their energy procurement.

Key Takeaways:

1. The Emissions First partnership seeks to maximize greenhouse gas emission reductions from the electricity system through corporate action. This includes prioritizing decarbonization, valuing grid decarbonization progress, incentivizing innovation in the emissions data ecosystem, and implementing accounting governance.

2. The coalition aims to source energy based on emissionality, focusing on the marginal carbon impact of each procurement rather than matching based on timing or which grid or market the energy is sourced in. Instead, they encourage companies to schedule electric loads around system signals like high marginal greenhouse gas emissions.

3. This approach signifies an evolution from traditional electricity purchasing strategies based on price or annual matching while providing flexibility for energy procurement teams to source for the greatest - while still feasible - marginal carbon impact.

Resources:

• Emissions First Partnership: https://www.emissionsfirst.com/

Decarbonization has diversified from simply vanilla to 31 flavors, where a range of goals and strategies are being adopted as companies work to reduce carbon emissions and other environmental impacts. One key strategy that's emerged has been time-matched procurement of electricity, ensuring that the electricity that's sourced corresponds to when and how much electricity is used onsite.

Granular energy attribute certificates (EACs), which add transparency by including information on where and when energy is sourced, are crucial to delivering 24/7 carbon-free energy matched on the hour. On this episode, host Lincoln Peyton talks with EnergyTag Executive Director Killian Daly about how the organization is leading the charge for granular certificates, including advising governments around the world on their use and how they can ensure commodities like hydrogen are produced sustainably. They also discuss the complex world of voluntary standards, market impacts, policy implementation, and the ambitious mission of EnergyTag, which is backed by big names like Google and Microsoft. As EnergyTag champions global adoption of more granular carbon accounting standards, Killian will also shines a light on his role in harmonizing these efforts through leading the Carbon Data Specification initiative at the Linux Foundation.

Key Takeaways:

1. Granular data is key to transparency and accountability: by supplying information on when energy is generated, granular data enables organizations to better match the energy they source with consumption, better ensuring companies decarbonization efforts' deliver the desired impacts.

2. Education leads to action: regulatory measures, such as the push for renewable hydrogen in Europe, will help suppliers shape how they source energy and produce commodities like hydrogen, chemicals and steel. Clear definitions of 'green' and enforceable standards can safeguard against inefficacy or greenwashing of products.

3. Strategic advantages of sustainable practices: There is a competitive edge companies gain by committing to sustainable practices — from price stability in energy markets to consumer trust in green certification. Going beyond the rhetoric of corporate responsibility, Killian articulates the tangible benefits of embedding sustainability into business models.

Resources:

• Learn more about EnergyTag: https://energytag.org/

• Case studies of granular certificate use: https://energytag.org/case_studies/

• The Granular Certificate Standard: https://energytag.org/standards/

• Canary Media's series on the green hydrogen debate: https://www.canarymedia.com/articles/hydrogen/the-great-green-hydrogen-battle

Investing in infrastructure is different and more complex than many other investment classes, often involving significantly longer timeframes and larger capital expenditures. Investing in sustainable infrastructure — like renewable energy, energy storage, or electric vehicle fleets — can be attractive to investors but adds complexity and often requires delivering with newer technologies.

Generate Capital was founded in 2014 with an unusual approach: invest, operate and maintain a range of sustainable infrastructure assets for the long term — creating "sustainable infrastructure as a service" — that can provide extended value to investors and customers while yielding lasting environmental, social, and economic benefits.

Nam Nguyen, Chief Operating Officer of Generate Capital and a visionary leader in the clean energy sector, joins Lincoln on the podcast to talk about how she and Generate Capital's team are creating long-term impacts with strategic investments in the sustainable energy, e-mobility, waste and smart cities sectors.

Key Takeaways:

1. When Generate examines an investment opportunity, they view it through the lens of a long-term asset owner, looking at impacts and returns across 20, 30, or 40 years. Therefore, when looking at the opportunities, they are also looking for drivers that are going to factor in for the long term. In addition, they are looking at how to optimize assets and facilities so that they are lasting for a long time.

2. Generate's investment strategy isn't limited to clean energy. Part of their portfolio is a platform called Generate Upcycle, which is focused on the circular economy—keeping waste streams out of landfills, and turning that waste into something more renewable, whether it's in the form of renewable electricity, renewable natural gas, compost or other uses.

3. Generate's team has a problem-solving mindset, because markets change quickly and the world is always evolving. Because of this, Generate's team look at issues, like grid instability in California, and regularly sit down with the company's partners to ask, "how do we solve for this? How do we change the way we utilize the assets we've built to address fresh concerns? How do we optimize portfolios in different parts of our customer base?"

On this Energy Minute mini-sode, Steven Goldman explores the world of "green tariffs," voluntary utility programs that enable eligible customers to buy the "bundled" energy and associated Renewable Energy Certificates (RECs) from renewable energy projects. These programs are typically offered by local electric utilities and approved by state public utility commissions (PUCs).

He explains the main types of green tariffs and how they are an important tool for companies seeking to procure clean energy, as they offer a number of benefits, including predictability, reduced upfront costs, and brokerless access to clean energy. We'll discover the benefits of participating in these programs, including access to clean energy without high upfront costs and the ability to reduce operational carbon emissions. Join us as we uncover some of the more innovative green tariff programs and how utilities are working towards meeting the needs of companies in their clean energy sourcing.

Key Takeaways:

1. Green tariffs are voluntary utility programs that enable eligible customers to buy green power - both the energy and the associated RECs - generated by renewable energy projects. They are more common in traditionally regulated electricity markets and are an avenue for companies to source clean energy without having to pursue a bilateral agreement with a power producer.

2. There are three main types of green tariffs: subscription programs, sleeved power purchase agreements (PPAs), and market-based rate programs.

3. Green tariffs offer several benefits, including predictability, reduced upfront costs, and brokerless access to clean energy. As of January 2023, there are 50 approved or pending green tariff programs offered by 40 utilities in 28 states.

References:

• CEBA's Green Tariffs report (updated in Jan 2023): https://cebuyers.org/solutions/procure-clean-energy/green-tariffs/#:~:text=Green%20tariffs%20are%20voluntary%20utility,a%20customer's%20current%20electricity%20bill

• EPA primer on Green Tariffs: https://www.epa.gov/green-power-markets/utility-green-tariffs#:~:text=Utility%20green%20tariffs%20are%20optional,a%20special%20utility%20tariff%20rate

• S&P Global, "Utility green tariffs fuel growth in US corporate renewables market" : https://www.spglobal.com/marketintelligence/en/news-insights/research/utility-green-tariffs-fuel-growth-in-us-corporate-renewables-market

Most people think of jet fuel the same way they think of filling up their car with gasoline: go to the pump, fill the tank, pay the price per gallon. But decarbonizing business travel and air freight is a much more complex task, where sellers, buyers and users are all part of the transaction, and standards for what makes aviation fuel "sustainable" are still being set.

On this episode of The Decarbonization Race, new co-host Steven Goldman takes flight into the world of Sustainable Aviation Fuel or SAF – including the market currently being built for it, the range of ways SAF is being produced, and what structures need to be in place to make sure SAF is not only affordable but provably more sustainable than conventional fuels. He's joined by Kim Carnahan, founder and CEO of Neoteric Energy & Climate. Kim co-founded the Sustainable Aviation Buyers Alliance (SABA), an industry body bringing together a range of NGOs, airlines and other companies investing in SAF supply and technologies.

How does she know so much about the intricacies of decarbonizing international sectors like aviation and shipping? Because while working at the State Department, she served as the United States' Chief Negotiator on Climate Change. Kim played a central role in the negotiation of the Paris Agreement and its implementing guidance. Kim also led the U.S. team that negotiated the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) – a parallel agreement to Paris governing the international aviation sector – and its implementing guidance.

In a fast-paced and wide-ranging interview, Kim discusses the different approaches jurisdictions are taking when it comes to sustainable aviation fuel (SAF) certification and highlights the need for clear guidance from the Greenhouse Gas Protocol and Science Based Targets Initiative. SABA is not only helping create certification standards for SAF, but is working with airlines, suppliers and buyers (who often aren't the airlines themselves) to build the marketplace, create a book-and-claim system similar to Renewable Energy Certificates to track supply and usage, and advance policies to keep SAF moving down the cost curve.

Key Takeaways:

1. ​​The aviation industry contributes more than 2% of global energy-related emissions. Today, commercial aviation is fueled primarily by kerosene-based fuel Jet-A/Jet-A1, which can be easily substituted with SAF blends. SAF is a liquid "drop-in" fuel currently used in commercial aviation which reduces CO2 emissions, which can be produced from several feedstocks, including but not limited to waste oil and fats, municipal waste, non-food crops, CO2 and water. SAF meets all the same technical and safety requirements as fossil-based jet fuel and can therefore be used safely on existing aircraft and within current airport systems.

2. SABA is managed by Environmental Defense Fund and Rocky Mountain Institute with guidance by Neoteric Energy & Climate, but was founded by a diverse set of companies working to tackle the decarbonization of aviation – Bank of America, Boeing, Boston Consulting Group, Deloitte, JPMorgan Chase, McKinsey & Company, Meta, Microsoft, Netflix and Salesforce. Air carriers involved in the initiative include Alaska Airlines, Amazon Air, JetBlue, United Airlines and UPS.

3. Standardization and certification is critical to growing the sustainable aviation fuel market. The certification guidelines developed by SABA are crucial to prevent negative impacts on the environment and society, particularly when dealing with biomass, organic waste and crop-based fuels. Saba's focus on certification helps companies navigate the market, understand what different sourcing criteria should be, and gain assurance that the fuel they are purchasing is sustainable.

Resources:

• Sustainable Aviation Buyers Alliance website

• SABA's Sustainable Aviation Fuel 101 Guide

• Recent announcement of Minnesota creating a SAF Hub, in partnership with Bank of America, Ecolab, Delta Air Lines and Xcel Energy.

• Boeing's SAF Dashboard

Corporate demand for clean energy continues to grow across the globe, particularly in the United States. Apex Clean Energy, a developer of commercial-scale wind, solar and battery storage projects, is a key player in this growth. With a diversified portfolio of 60 gigawatts and more than $2B in assets under management across the United States, Apex has a range of corporate offtakers including Google, IKEA, Cargill, and Meta.

On this episode of the Decarbonization Race, VP of Energy Marketing for Apex, Erik Haug joins our new co-host, Cleartrace Head of Customer Growth Zach Livingston, to discuss Apex's role in the evolution of the renewable energy space, how environmental, social, and governance (ESG) considerations are shaping decisions around clean energy purchasing, and the complexities of educating consumers and communities to accelerate the growth of renewable power projects. He gets candid about the growing role of battery storage and other forms of dispatchability in Apex's portfolio as well as how they're prioritizing looking "beyond the megawatt".

Key Takeaways:

1. Aggregation is playing a crucial role in driving renewable energy projects, enabling smaller customers to pool demand to access larger-scale projects at competitive prices. There are challenges and benefits in both self-aggregation and advisor-led aggregation within the evolving landscape of renewable energy finance and procurement.

2. Apex works to empower customers through education. Renewable energy advisors play a pivotal role in educating and guiding customers toward making informed decisions. By helping customers understand the potential of renewable energy solutions and how they align with their goals, these advisors facilitate the transition to a low-carbon future.

3. The Investment Tax Credit was extended to standalone energy storage in the Inflation Reduction Act, which will bring more storage and resulting flexibility onto electric grids around the U.S. However, a mechanism is still needed to compensate battery storage projects to maximize how much decarbonization impact they deliver for the grid. An incentive rewarding energy storage for delivering net carbon emission reduction could significantly accelerate the already fast-growing market for energy storage.

Resources:

• Apex Clean Energy - https://www.apexcleanenergy.com/

• Connect with Erik Haug - https://www.linkedin.com/in/erik-haug-03b35539/

Nuclear energy is a low-carbon source of electricity that has been playing a vital role in the global energy mix for decades. Today, there are about 440 nuclear power reactors operating in 33 countries, providing about 10% of the world's electricity. While the nuclear energy industry has faced an array of challenges over the last few decades - including plant closures due to competition from cheaper natural gas and renewable energy sources, as well as overall safety concerns - nuclear technology remains a key part of the decarbonization puzzle.

In this episode, host Lincoln Payton speaks with Dr. Rita Baranwal, Senior Vice President at Westinghouse Electric Company, who leads the company's work around its AP300 Small Modular Reactor. She discusses with Lincoln the growth of small modular reactors (SMRs) as a pathway to growing nuclear power adoption, the rigorous regulatory framework surrounding nuclear plant deployments, and the critical role that this power source can play in the decarbonization journey.

Key Takeaways:

1. Dr. Baranwal addresses common safety concerns regarding nuclear power, and emphasizes the significant improvements made in safety and technology over the years. She discusses "walk-away safe" designs and the importance of continuous innovation and collaboration with regulators to ensure success.

2. Westinghouse recently launched its AP300 SMR technology, more compact reactors that can serve in a wider range of applications, from powering data servers and hospitals to serving military needs. The flexibility and scalability of SMRs make them appealing to communities, states, companies, and countries looking for clean energy solutions, especially where the need for "baseload power" is coming in smaller increments than nuclear has typically been sourced for.

3. The nuclear industry takes immense pride in its rigorous training programs and there is heavy focus on continuous education and the collaboration between operating plants, utilities, and organizations to ensure a well-trained workforce. Dr. Baranwal also discusses the exciting potential for remote operation of microreactors, opening up new possibilities in industry applications.

Resources:

• Westinghouse Electric Company

• Bettis Atomic Power Laboratory

• Nuclear Regulatory Commission (NRC)

• More information on the AP300 SMR from Westinghouse

Clean energy doesn't have to cost more. California electricity supplier Peninsula Clean Energy (PCE) is charting a path to supply 24/7 renewable electricity in northern California that is competitive today and less expensive in the long run compared to typical utility electricity offerings.

How is the company getting there? On this episode of The Decarbonization Race, renewable energy pioneer and PCE CEO Jan Pepper joins Lincoln to explain it all, including the genesis of PCE's ambitious strategy to supply 100% renewable energy matched hourly to its customer base by 2025. Jan discusses the role community choice aggregators (CCAs) like PCE are playing in putting communities' priorities first when procuring energy for their customer base, and how PCE is both keeping rates competitive and ensuring long-term stability, compared to offerings that have greater volatility from fuel price swings.

Jan Pepper has over 30 years of energy and utility experience, with a focus on renewable energy contracting and financing. Across her career, she's founded four energy-related startups, at her company APX she developed and pioneered the first use of renewable energy credits, and her company Clean Energy Markets designed and implemented the successful Solar Renewable Energy Credit (SREC) program for the State of New Jersey. And she's also had a political career, as both a City Council member and mayor of the city of Los Altos, California. Her expertise has been vital in guiding Peninsula's sourcing of electricity from different renewable energy and energy storage projects, navigating factors such as price, location, and diversity of supply.

Key Takeaways

1. Community choice aggregators (CCAs) provide an alternative for California electricity customers, allowing cities or counties to procure and supply electricity for their residents separately from existing utilities. The CCAs decide the mix of electricity and deliver it via utility-owned transmission and distribution networks.

2. Peninsula Clean Energy is a "public agency startup," focused on supplying renewable energy and matching supply to demand on an hourly basis. Their goal is to supply 100% renewable energy, and in the process ensure price stability via long-term contracts, avoiding the volatility from fossil fuel prices. Because Peninsula procures from a range of different sources and technologies, the utility is able to provide electricity supply at a competitive rate and ensure a diverse portfolio.

3. PCE's ambitious strategy is to supply 100% renewable energy matched hourly to its customer base by 2025. The utility has already procured enough solar, wind, geothermal and hydropower resources to cover 75% of its 24/7 strategy by 2025, and will procure additional capacity to reach 99% by the end of 2025. This is providing a blueprint for other utilities to decarbonize, evaluate their modeling, and dispatch storage.

Resources

• Peninsula Clean Energy white paper, "Achieving 24/7 Renewable Energy by 2025"

• U.S. Environmental Protection Agency on Community Choice Aggregation programs

• Our Energy Minute segment from earlier this season to go deeper on Peninsula Clean Energy's 100% renewable energy strategy and how it's progressed

In this Energy Minute episode, Dana Dohse and Steven Goldman jump into the European Union's Corporate Sustainability Due Diligence Direction (or CS3D for short) recently passed by the European Parliament. While the CS3D is not a regulation -- meaning member states will have several years to develop their own respective national laws on implementing the directive -- it still holds significant weight, and will impact both EU-headquartered companies as well as non-EU firms exporting goods via the EU or with significant operations in the EU.

Compliance with the due diligence requirements will involve various jurisdictions and mechanisms, making it a complex endeavor for companies, meaning companies need to pay close attention as EU member nations issue their own regulations to better understand the impacts to their operations. The directive will have significant implications for corporations' sustainability planning, alignment with the Paris Agreement, and require a greater understanding of supply chain risks.

Listen in as Dana and Steven dig into this environmental and human rights legislation and its implications for companies operating in the EU, and explore the potential costs and benefits for companies in different high-impact sectors, the role of due diligence in risk management and the impact on local communities.

Key Takeaways

1. The EU is imposing a higher level of diligence than other parts of the world, which means that non-EU firms exporting goods via the EU or linked to EU companies will be impacted. Compliance with due diligence requirements will involve various jurisdictions and mechanisms, creating new costs and uncertainties for companies.

2. The CS3D is a piece of legislation passed by the European Parliament that requires EU and non-EU companies to comply with due diligence requirements to operate in EU markets. This directive applies to companies based on their headcount or turnover thresholds, depending on if they operate in a high impact sector. This means that companies need to have a clear understanding of their eligibility for the requirements of CS3D and properly classify their business to meet the criteria during two consecutive financial years.

3. The directive will lead to changes in internal controls and business procedures that companies will need to put in place to comply with the directive. Companies will bear the cost of establishing and operating due diligence procedures as part of their business procedures, and may have to pay up to 5% of their global turnover as damages in case of non-compliance. These costs are significant and will add up over time, causing a financial incentive for companies to comply.

Resources:

• European Union information page on the CS3D: https://commission.europa.eu/business-economy-euro/doing-business-eu/corporate-sustainability-due-diligence_en
• KPMG on the CS3D: https://kpmg.com/xx/en/home/insights/2023/02/the-eu-corporate-sustainability-due-diligence-directive.html