ESG, Recycling, & Climate | Monthly Thematic Piece

Capital Costs are Driving Investments Rather Than Operating Costs
November 25, 2022
Products Mentioned:
Hydrogen, Batteries, Renewable Electric Power, Carbon Dioxide, Plastics, Recycled Plastics, EVs, Ammonia, Biofuels
Companies Mentioned:
McKinsey, Climeworks, Gulf Coast Sequestration, PureCycle, Occidental
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, The Hydrogen Economy, ESG Investing, Climate Litigation, Clean Fuels

C-MACC Weekly “CRETER” (Climate etc.)

Capital Costs are Driving Investments Rather Than Operating Costs

  • The number of inefficient projects relying on free power or large incentives to drive acceptable projected returns is rising. Operating costs will matter long term!
  • The hope of free electric power is behind many decisions, but power demand estimates keep rising, suggesting that free power is decades away in large volume.
  • More and more analyses and opinions are emerging around limiting reliance on China for batteries, but battery materials and components also need attention.
  • Recycling is having a bad quarter as virgin polymer prices fall in the West – many projects risk financial challenges as costs are fixed, and margins are collapsing.
  • We also look at the first large DAC project on the Gulf Coast, some more forecasts for ammonia demand, and many substantial looming ESG goals.

See PDF below for all charts, tables and diagrams

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