ESG, Recycling, & Climate | Weekly Thematic

Sequestering Competitive Advantage – The Best of the IRA
May 10, 2023
Products Mentioned:
CO2, Ammonia, Hydrogen, Ethylene, Methanol, Coal, Oil and Gas, LNG, Lithium, Wind, Solar, Fossil Fuels, EVs, Polyethylene, Plastics, PET, Ethylene Glycol, Paraxylene, Biomass, Renewable Diesel, Fertilizer, SMRs, Fuel Cells, Electrolyzers. Water
Companies Mentioned:
Denbury, ExxonMobil, Chevron, Talos, Shell, Enbridge, Nova Chemicals, Nutrien, Methanex, Oxy, Dow, X-Energy, Borealis, Origin Materials, Indorama Ventures, Amazon, Li-Cycle, Glencore, Vertex, Air Products, Bloom Energy, NuScale Power, Albemarle, Livent, Allkem, BayStar, LyondellBasell, Chevron Phillips Chemical, Sasol, Plug Power
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, The Hydrogen Economy, ESG Investing, Climate Litigation, Clean Fuels

C-MACC Weekly “CRETER” (Climate etc.)

Sequestering Competitive Advantage – The Best of the IRA

  • The most interesting part of the IRA from a US competitiveness perspective was likely already in place with 45Q – the IRA just raised the value enough to matter.
  • Other IRA incentives likely allow US businesses to develop quickly, but not fast enough to change cost curves – 45Q does that for ethylene, ammonia & methanol.
  • This all assumes that the world accepts “blue” products broadly – otherwise, there may be select markets – like blue ammonia in Japan – the US will be low cost.
  • We look again at ambitious renewable power forecasts in the US and the danger of taking them seriously; premature closing of coal/gas plants may cause trouble.
  • Otherwise, we look at recycling and renewable polymers (Origin), lithium recycling, “woke” investing, project risk, and introduce our “mad” headline award.

See PDF below for all charts, tables and diagrams

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