Old Vs New – Conference Week in Houston Likely to Showcase Challenges

C-MACC Weekly Sustainability and Energy Transition Report

Old Vs New – Conference Week in Houston Likely to Showcase Challenges

• 1^st Topic of the Week: Old Energy vs New Energy – the Two sides of CERA – Shell has dialed back some of its emission goals this week but remains committed to its 2050 net-zero goals. While tough questions may be thrown at Shell and others at CERA, what we are seeing are likely practical constraints not changes in ideology.
• 2^nd Topic of the Week: Is the US competitive – We contrast solar modules with lithium – both potentially oversupplied markets, but one where the US cannot compete with Chinese manufacturing costs and another where the US could define the low end of the cost curve.
• Otherwise – We discuss more recycling cost challenges, the appeal of DAC, more PPAs and Nippon Steel

Exhibit 1: Natural gas prices and availability vs renewables are driving consensus that it has a long transition role.

Source: Bloomberg, March 2024