C-MACC Weekly Sustainability and Energy Transition Report
At The Flick of A Switch – Or Maybe Not; Why Power Is Causing Industrial Headaches
- 1st Topic of the Week: Finding A Power Solution – Power is shaping up to be a much larger headache for industrial companies than many imagined – cheap, useable power is often not close to where it is needed – could we see industrial developments chase sources of cheap power – possibly. The timing of needs is also complicated.
- 2nd Topic of the Week: Money’s Too Tight – Public and private funding of energy transition is shrinking, and this is penalizing small companies where the innovation investment is most needed. We do not see a change in 2024.
- Otherwise – We look at chemical recycling, collapsing European carbon prices, rising costs of shorter-term PPAs, geothermal power, EV stagnation, and LNG.
Exhibit 1: The US States with the highest portion of renewable energy do not have high concentrations of industry.
Source: Motley Fool/EIA, C-MACC Analysis, February 2024