Tonight I tuned into a fascinating BNEF webinar titled "Energy Transition Investment Trends in 2024," which offered a sneak peek into the key findings of an upcoming report. Interestingly, the discussion largely revolved around the energy transition achievements of 2023, and several points particularly resonated with me.
1. Global Investments on the Rise
It's encouraging to see global investments in the energy transition surge by 17% to $1.8 trillion. While we're still trailing the investment levels required to meet the Net-Zero Scenario goals, the momentum is undeniable. It's heartening to note that we now possess the capacity to significantly produce batteries, solar panels, and wind turbines, to hope for a sustainable future.
2. Batteries Investment Soars
The investment in batteries has impressively jumped by 76%. This leap is attributed to decreasing costs, the growing trend of co-locating with solar projects, and rising residential demand. However, there's an anticipation of battery manufacturing overcapacity by 2030. Re-shoring manufacturing will create interesting market dynamics.
3. CCS Investments Double
The third point that caught my attention was the doubling of investments in Carbon Capture and Storage (CCS) to $11 billion. Despite my skepticism about CCS's scalability in the short term, but optimism in the long term, this significant investment indicates a stronger commitment to this technology than I had anticipated. It's a development worth watching closely.
4. Hydrogen Investments Triple
Lastly, investments in hydrogen have tripled, matching the total for CCS. Most of these investments have been channeled towards electrolyzers. Given the rapid pace of investment, and my recent work on hydrogen market, I anticipate a market correction in the near future.
The webinar underscored the dynamic nature of the energy transition sector and the varying pace of development across different technologies. As we look forward to the detailed report, it's clear that the journey towards a sustainable energy future is both complex and exhilarating.
I'm keen to hear your thoughts on these developments. Do you think these investment trends will sustain in the long run? How do you see the role of technologies like CCS and hydrogen evolving? Let's discuss the future of our energy landscape.