Foreign Affairs - High Hopes for Hydrogen 5-15min

Producing hydrogen now costs less and emits less carbon than ever before. In part, that is the result of the United States’ newfound abundance of natural gas, the source of most of the hydrogen produced. But it is also the result of technological improvements in the process of "reforming" natural gas into hydrogen. It now costs around as much to produce a gallon of gasoline as it does to produce the energy-equivalent amount of hydrogen with natural gas. Meanwhile, another method of producing hydrogen-electrolysis, which uses electricity to split water into hydrogen and oxygen-has seen major cost reductions as well. What makes electrolysis particularly attractive is that when powered by renewable sources such as wind and solar power, it directly emits zero carbon. ... Hydrogen storage has also improved. Prototypes used to feature bulky containers that were retrofitted into vehicles designed for conventional engines. But the latest tanks save space by being better integrated into the design of a car and by safely storing hydrogen at a higher pressure, leaving more room for passengers and their belongings. This new generation of containers allows a car powered by hydrogen fuel cells to travel as many miles on a single tank as a gasoline vehicle can and take about the same amount of time to refuel. ... The obstacles to distribution are beginning to fall away, too. True, with relatively few dedicated pipelines in existence, hydrogen has yet to show up at the vast majority of gas stations. But there are promising work-arounds. Most of the developed world does have good natural gas distribution infrastructure, which could feed smaller reactors that produce hydrogen. Hydrogen could also be produced on-site through electrolysis. ... estimates of what it would cost to mass-produce fuel-cell systems have decreased tremendously, from $124 per kilowatt of capacity in 2006 to $55 per kilowatt in 2014. The durability of these systems has improved dramatically as well, and they now meet the expectations of customers used to conventional automobiles.

JP Morgan - A Brave New World: The De-Carbonization of Electricity Grids > 15min

A critical part of any analysis of high-renewable systems is the cost of backup thermal power and/or storage needed to meet demand during periods of low renewable generation. These costs are substantial; as a result, levelized costs of wind and solar are not the right tools to use in assessing the total cost of a high-renewable system ... High-renewable grids reduce CO2 emissions by 65%-70% in Germany and 55%-60% in California vs. the current grid. Reason: backup thermal capacity is idle for much of the year ... High-renewable grid costs per MWh are 1.9x the current system in Germany, and 1.5x in California. Costs fall to 1.6x in Germany and 1.2x in California assuming long-run “learning curve” declines in wind, solar and storage costs, higher nuclear plant costs and higher natural gas fuel costs ... The cost of time-shifting surplus renewable generation via storage has fallen, but its cost, intermittent utilization and energy loss result in higher per MWh system costs when it is added ... Balanced systems with nuclear power have lower estimated costs and CO2 emissions than high-renewable systems. However, there’s enormous uncertainty regarding the actual cost of nuclear power in the US and Europe, rendering balanced system assessments less reliable. Nuclear power is growing in Asia where plant costs are 20%-30% lower, but political, historical, economic, regulatory and cultural issues prevent these observations from being easily applied outside of Asia ... National/cross-border grid expansion, storing electricity in electric car batteries, demand management and renewable energy overbuilding are often mentioned as ways of reducing the cost of high-renewable systems. However, each relies to some extent on conjecture, insufficient empirical support and/or incomplete assessments of related costs

The New Yorker - An Isolated Tribe Emerges From The Rain Forest 36min

For much of the twentieth century, Brazil defined the region’s approach to the aislados: its National Indian Foundation sent scouts to contact them, with the goal of assimilation. These efforts were mostly calamitous for the contacted people, who tended to die out from disease, or to wind up living in frontier shantytowns, where the men often succumbed to alcoholism and the women to prostitution. In barely fifty years, eighty-seven of Brazil’s two hundred and thirty known native groups died off, and the ones that remained lost as much as four-fifths of their population. In the nineteen-eighties, officials at the National Indian Foundation, horrified by the decline, began to enforce a “no contact” policy: when its agents spotted aislados, they designated their land Terras Indígenas—areas forbidden to outsiders. ... Most of the neighboring countries adopted Brazil’s no-contact policy, which anthropologists now see as the best way to insure the survival of the remaining aislados. But, for Peru, land in the Amazon was too rich to give up. In the past two decades, the country has experienced an economic boom, based on natural resources. Opening up the jungle has made Peru one of the world’s largest exporters of gold (as well as the second-largest producer of cocaine), and the Camisea natural-gas facility, north of Manú National Park, provides half of the country’s energy. ... But, even as Peru embraced the no-contact policy, a new idea was emerging. Last June, the journal Science published a paper in which two prominent anthropologists, Kim Hill and Robert Walker, argued that isolated indigenous groups were “not viable in the long term,” because their environments are too degraded or too vulnerable to incursions. Instead, they advocated a new policy, built around “well-organized contacts.”

Bloomberg - Vladimir Putin Just Wants to Be Friends 13min

On Sept. 1, in the Siberian port city of Vladivostok, Russian President Vladimir Putin discussed a wide array of issues with Bloomberg Editor-in-Chief John Micklethwait. The two-hour interview ranged from islands disputed with Japan to the price of petroleum and the vicissitudes of Gazprom, the immense state-owned enterprise that supplies natural gas not only to his country but to much of Europe. Putin, the longest-ruling Russian leader since Leonid Brezhnev, weighed in on the U.S. election, as well as his relationship with Turkey’s Recep Tayyip Erdogan and Syria’s Bashar al-Assad. Here are excerpts from their conversation.

Financial Times - Russia’s Arctic Obsession 16min

This is Tiksi, a decaying town in the Russian Arctic. Here, more than 4,000 kilometres from Moscow on the coast of the Laptev Sea, 4,550 people inhabit a wasteland whipped by blizzards and wrapped in polar night for half of the year. Surrounded by thousands of kilometres of permafrost, the town has no outside land connection. Its main lifeline is an airport manned by a military unit, a relic of Soviet times, when the country’s Arctic territory was dotted with military bases. ... Global warming, which is causing Arctic sea ice to melt at an unprecedented pace, is watched with alarm in other parts of the world. But in Russia, the rising temperatures are fuelling expectations that the waters along its northern coast, long a frozen frontier, could once again become a vibrant shipping line, rivalling some of the world’s most important trading routes. ... In theory, the NSR could compete with routes that have dominated global maritime transport for decades. Calculated between the ports of Yokohama and Hamburg, the 7,200 nautical miles shipping distance between Asia and Europe using the NSR is 37 per cent shorter than the southern route via the Suez Canal. ... Total cargo transport volumes plummeted from a peak of 6.58 million tonnes in 1987 to just 1.46 million tonnes in 1998. ... total cargo volumes recovered to 5.15 million tonnes last year, almost back to the level of 1990. ... The idea of mastering nature is very much part of Russian identity, as is the myth of conquering the Arctic, despite the decline of Moscow’s footprint in the far north over the past 25 years. ... Since there is still a lot of ice on the northern oceans, this makes passages risky and drives up insurance premiums. Only ships with reinforced hulls can use the NSR with relatively few restrictions and even for them passage times remain unpredictable. The waters off Russia’s coast are also far shallower than those on the southern route, meaning that the world’s largest, most cost-efficient container ships can’t be used.

McKinsey - How technology is reshaping supply and demand for natural resources [EXECUTIVE SUMMARY] 32min

During the 2003–15 commodity supercycle, spending on resources including oil, natural gas, thermal coal, iron ore, and copper rose above 6 percent of global GDP for only the second time in a century before abruptly reversing course. Less noticed than these price gyrations have been fundamental changes in supply and demand for resources brought about by expected macroeconomic trends and less predictable technological innovation. Our analysis shows that these developments will have major effects on resource production and consumption over the next two decades, potentially delivering significant benefits to the global economy and bringing change to the resource sector.
-Rapid advances in automation technologies such as artificial intelligence, robotics, analytics, and the Internet of Things are beginning to transform the way resources are produced and consumed.
-Scenarios we modeled show that adoption of these technologies could unlock cost savings of between $900 billion and $1.6 trillion in 2035, equivalent to the GDP of Indonesia or, at the upper end, Canada. Total primary energy demand growth will slow or peak by 2035, despite growing GDP, according to our analysis.
-The price correlation that was evident during the supercycle is unraveling, and a divergence in prospects between growth commodities and declining ones may become more significant.
-Policy makers could capture the productivity benefits of this resource revolution by embracing technological change and allowing a nation’s energy mix to shift freely, even as they address the disruptive effects of the transition on employment and demand.
-For resource companies, particularly incumbents, navigating a future with more uncertainty and fewer sources of growth will require a focus on agility.

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