Columbia University to stop fossil fuel investment

Columbia University has published a statement that it currently “does not hold any direct investments in publicly traded oil and gas companies and is formalising this policy of non-investment for the future” in a bid to fight climate change.

By “recognising the grave threat to the planet that is posed by climate change and the importance of transparency in the use of its financial resources”, the university has adjusted its policies with a revised set of principles for the Columbia University Investment Management Company (IMC).

Columbia University president Lee Bollinger said: “There is an undeniable obligation binding Columbia and other universities to confront the climate crisis across every dimension of our institutions.

“The effort to achieve net-zero emissions must be sustained over time, employing all the tools available to us and engaging all who are at Columbia today and those who will follow us in the years ahead. This announcement reaffirms that commitment and reflects the urgent need for action.”

The amended policy recognises that certain oil and gas companies aim to transition their businesses to net-zero emissions by 2050, so the university may make an exception to its non-investment policy when a credible plan exists for a company to do so.

Columbia has been at the forefront of recognising the negative effects of the changing climate and harnessing resources to mitigate it, including through practical engineering and technology, which can be applied by those seeking to reduce emissions outputs.

Along with its 2017 decision to divest from thermal coal, the university’s new investment approach aligns with its academic and research commitment to the cause, including the creation of the Columbia Climate School in 2020.

In addition to formalising Columbia’s limiting of investments in publicly traded oil and gas companies, the announcement pledges that the university will also avoid making new investments in private funds that primarily invest in oil and gas companies.

Consistent with the updated guidance, the IMC will expand its evaluation of investment managers across sectors to assess whether they have plans to create portfolios with net-zero emissions by 2050.

Vattenfall, Shell, MHI and Wärme Hamburg form green hydrogen project

Four companies have announced a collaboration to build a 100MW green hydrogen project in Germany.

Swedish utility Vattenfall, engineering firm Mitsubishi Heavy Industries, oil giant Shell, and German municipal company Wärme Hamburg have signed a letter of intent.

The companies plan to build a wind and solar facility at Vattenfall’s 1.5GW Moorburg power plant in Hamburg.

This would power an electrolyser, proposed to come online in 2025. The companies’ announcement also says they will investigate the possibility of storage and logistics options for hydrogen fuel, as well as sector coupling.

Moorburg power plant is a two-unit operational coal-fired plant that will shut down on July 1 unless deemed “system relevant” by German grid operators. Work would commence after the site is cleared.

The site connects to 380kV national transmission network and the 110kV Hamburg network. It also has access to a quay and port for ship access.

The country’s gas network intends to expand a hydrogen network within the port in the coming decade, which would allow easier distribution from the Moorburg site.

The companies will apply for EU funding under the Important Projects of Common European Interest programme. As part of this, they will submit a project outline before March 2021.

Vattenfall senior vice president and head of strategic development Andreas Regnell said: “Vattenfall has high ambitions to grow within renewable energy production in the markets where we operate. In this project, we can contribute with our expertise and experience and the unique Moorburg site that has the infrastructure that is necessary for large-scale production of hydrogen.

"We are therefore pleased that we can support the city and the industrial location of Hamburg in implementing their ambitious climate goals.”

The City of Hamburg Government has also voiced its support for the scheme. The city’s minister of environment and energy, and Wärme Hamburg supervisory board chair Jens Kerstan said: “At the Moorburg site, we will be producing green hydrogen on a large scale in collaboration with experienced partners from industry, while at the same time establishing a Green Energy hub for climate-friendly energy.

Iberdrola sign power purchase agreement with Danone in Spain

Spanish renewables developer Iberdrola has signed a long-term power purchase agreement with French food company Danone.

Under the terms of the ten-year deal, Iberdrola will take responsibility for the supply of 73GWh of power from the Francisco Pizarro plant. This will power Danone’s 29 supply points in Spain starting from April next year.

The agreement will drive the development of Europe’s biggest photovoltaic plant, the €300m Francisco Pizarro project.

Iberdrola is building the 590MW plant between the municipalities of Torrecillas de la Tiesa and Aldeacentenera. The project is set to become operational next year and will offset 245,000tpa of CO₂ emissions.

The food company will make another annual energy contract with Iberdrola to cover its total consumption of 104GWh per year.

The plant will power Danone’s Spanish production centres and water sources, located in Asturias, Barcelona, Gerona, Guadalajara, Granada, Madrid, and Valencia, as well as its logistics centres and offices. Danone España’s suppliers, Graham Packaging and Salvesen Logistica, have also joined the deal.

Danone Iberia general manager Paolo Tafuri said: “Our aspiration is to progress towards a new way of doing business that takes into account not just results but also the financial and social impact of our activity.

“This initiative will help us turn our ambitious environmental commitments into reality – goals that form part of our global strategy and affect our entire value chain.”

High carbon prices have little effect on the pace of technological change

A new study by the German Institute for Advanced Sustainability Studies (IASS) in Potsdam has shown that carbon pricing has been less effective in driving technological change than previously anticipated, despite many governments relying on it to encourage climate change action.

The IASS research, ‘The effect of carbon pricing on technological change for full energy decarbonisation: A review of empirical ex‐post evidence’, has focused on the effects of carbon pricing systems in the EU, New Zealand, the Canadian province of British Columbia, and the Nordic countries.

The data has shown that while the introduction of carbon pricing systems has led to emission reductions in some countries, they have not significantly stimulated technological change.

According to the study, bringing about the necessary transformation will require sector-specific promotion of climate-friendly technologies, such as changes in electricity market design, efficient charging network for electric vehicles, and significant investments.

IASS lead author Johan Lilliestam says: “The significant reductions in emissions that we are seeing are being driven not by urgently needed investment in zero-carbon technologies but by operational shifts towards less carbon-intensive applications.

“But the effect of switching from gasoline to diesel or from coal to gas-fired power generation is practically irrelevant when it comes to achieving climate neutrality. Achieving net-zero emissions will require more sweeping, systemic changes.”

Total pays $2.5bn for 20% stake in Adani Green Energy

French oil company Total has purchased a 20% minority stake in Indian renewables producer Adani Green Energy Ltd (AGEL). The company will also take a 50% interest in the company’s solar assets and occupy a seat on Adani’s board.

Adani Group, owner of AGEL, also has an ongoing natural gas joint venture with Total. Established in October 2019, this 50/50 joint venture includes ownership of two LNG terminals and an equal stake in Adani Gas Ltd, alongside a public stake.

A statement by Total explains that today’s stake purchase was agreed during the formation of this partnership.

In February 2020, the companies set up a solar development joint venture with an enterprise value of $22.2m (INR1.63bn).

Last week, Adani Green Energy sold 205MW of solar assets into its joint venture with Total. For this, Adani received $222m (INR1.6bn). This brought the total solar assets managed by the company to 2.4GW.

Total chairman and CEO Patrick Pouyanné said: “Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties. Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas.”

Total’s statement explained that the deal will help it build toward its target of having 25GW of renewable generation by 2025, adding 10GW annually thereafter.

Total has moved to diversify its business via purchase of shares in utilities, energy storage providers and renewable generation companies.

At a recent investor day, a company statement asserted: “In the next decade, oil products sales from Total will diminish by almost 30% and Total’s sales mix will become 30% oil products, 5% biofuels, 50% gases, and 15% electrons.”

The company also owns solar developer Sunpower, which has found mixed success. Based on lessons learned from the company, Total has started developing its own solar farms. It also said it aims to ramp up solar development with AGEL before 2022.

Vestas lay off 220 employees in Denmark and Britain

Danish wind turbine manufacturer Vestas Wind Systems has announced it will lay off 220 employees in Denmark and Britain.

The move comes as part of the integration of Vestas and MHI Vestas Offshore Wind. Vestas acquired the latter company in December. The integration of the two companies will see the combination, expansion, and simplification of existing functions.

A company statement said that the majority of the layoffs will take place in Denmark, with no layoffs for hourly paid employees. Vestas said that it will initiate the consultation process with relevant employee representatives and aims to have clarity for most employees by the end of this month.

A Vestas spokesperson said: “Through this integration, we are building a stronger and more competitive Vestas across our onshore and offshore businesses, and our planning has shown synergies across several functions, which unfortunately entail redundancies.”

It further added that the organisational integration will continue throughout 2021.

Vestas Group president and CEO Henrik Andersen said: “Since we announced the agreement to acquire MHI Vestas Offshore Wind, we have meticulously planned how we can build a united and strong Vestas organisation that can lead and scale up in both onshore and offshore wind.

“I want to thank everyone for their hard work and dedication during a difficult period where my colleagues have contributed to both the integration planning and execution of commercial commitments.

“We have now started implementing our integration plans, which unfortunately includes letting around 220 hardworking colleagues go. It is never easy to make such a decision or say goodbye to good colleagues but integrating and simplifying two companies inherently creates overlaps between functions and it’s therefore necessary if we want to create a competitive and scalable organisation”.