1. The European Union’s ambitious renewable energy target mandates at least 42.5% of EU energy consumption to come from renewable sources by 2030. For that to happen, developers need positive returns on their renewables investments.
2. With technology costs not evolving as hoped, where will the sources of project profitability come from instead?
1. Vietnam is looking to build its first semiconductor plant
despite US warnings that it will involve high costs.
2. Reuters reported that officials have met with half a
dozen US chip firms in the past few weeks, including with Vu Tu Thanh, head of
the Vietnam office of the US-ASEAN Business Council.
3. According to one executive consulted by Reuters, the
government in Hanoi is looking to build a plant for less advanced chips used in
cars or telecom applications.
4. The Vietnamese government has said it wants to build its
first plant by the end of this decade and
chip companies would benefit from “the highest incentives available in
Vietnam”.
5. The move to attract chipmaking investors comes after a surge in FDI inflows in the country. According to national statistics, Vietnam attracted over $15.29bn in FDI between January and October 2023, marking a 54% year-on-year increase in the value of investments. Around $5.29bn was spent on 1,051 existing projects.
1. Urgency is needed to meet the seven billion tonnes carbon capture (Btpa) required to meet net zero goals in 2050.
2. Energy efficiencies, renewables and alternative fuels will not be enough to meet net zero by 2050.
3. We need a huge amount of carbon to be captured out of our industries and the power sector to decarbonise the last miles that can’t be easily reached by green electrification or alternatives.
4. Right now, we are on track to meet our base case scenario, which forecasts 2 Btpa of CO2 capture and removal by 2050 – though this corresponds to a 2.5 degree global warming scenario. For net zero by 2050 and a 1.5 degree compliant scenario we would need 7 Btpa. To come close, we need to get shovels in the ground quickly.
1. The electrolytic hydrogen sector is rapidly expanding, with over 85 Mtpa of projects announced and cumulative factory announcements exceeding 218 gigawatts of electrolyser capacity by the end of Q3 2023
2. In the ever-evolving landscape of renewable energy, the burgeoning electrolytic (green) hydrogen sector has made remarkable strides. Over 85 Mtpa of electrolytic hydrogen projects have been announced. This surge in electrolytic hydrogen has brought focus to the electrolyser supply chain, which will need to expand at an unprecedented pace to meet anticipated demand. By the close of the third quarter in 2023, cumulative factory announcements had already surpassed 218 gigawatts of electrolyser capacity.
3. As this sector matures and gathers momentum, profound transformations across the electrolyser supply chain are coming. From product design and operational strategies, to enhancing overall profitability – a shift in paradigms seems inevitable – heralding an exciting era of upheaval and innovation in the electrolytic hydrogen ecosystem.
1. Forecasts for the global electric vehicle market show there will be 44 million EVs on the road by 2030. Despite the move to de-carbonise the road transport market, the upfront costs of an EV is still prohibitive to the driver.
2. To lessen this cost burden for consumers, governments have been offering modest tax credits and purchase subsidies. While these subsidies will give some relief in the short-term, the longer term consideration is focusing on the costs of raw materials and ensuring a protected and uninterrupted stream of battery raw materials (BRMs).
1. No factory can risk being left behind in the transition to smart manufacturing. If a factory fails to innovate its product and production process, it risks incurring a Cost of Inaction (COI), which is the cost of the lost opportunity. Deploying dedicated cellular-enabled industry 4.0 solutions can generate an operational cost savings ROI of 10x to 20x over 5 years. Learn from Industry 4.0 uses cases on how to move ahead wisely.
2. A recent study from ABI Research outlines the “intelligence” in a smart factory and how it is underpinned by cellular connectivity, which plays a business-critical role. Applications of cellular technology are exemplified with concrete Industry 4.0 use cases, providing business justification and initial steps for how manufacturers can move their digital transformation forward.
3. Calculating Return on Investment (ROI) and Cost of Inaction (COI) by weighing operational costs and savings demonstrates the business impact of Industry 4.0 applications and solutions running on dedicated cellular networks.
4. According to the report, “Over 4.7 billion wireless modules will be deployed across smart manufacturing factory floors to enable over USD 1 trillion in production value by 2030.” Manufacturing executives need to understand why and how to develop the right connectivity strategies to unlock this value.
1. In just a decade, Industry 4.0 has revolutionized the day-to-day operations of many companies in the manufacturing sector. Thanks to the technological advances that have emerged over the last few years, these organizations have been able to increase their efficiency and productivity. Now experts are opening the door to a new concept: Industry 5.0.
2. Manufacturing is one of the biggest drivers of the European economy. Proof of this is that, between 2009 and 2019, it accounted for around 20% of the EU’s GDP. Moreover, according to 2020 data, it is a sector that employs more than 35 million people.
3. Yet, while European industry has decades of experience and is one of the most competitive in the world, it is exposed to an increasingly complex and volatile geopolitical and economic landscape. It is these constant challenges that push it to continually innovate, to further improve its efficiency at different points in the value chain; to be more flexible to the changing demands of the global consumer, and to work to maintain its leadership as a global benchmark for quality.
4. To a large extent, this innovation effort is reflected in the intensive use of new technologies, essential tools for automating, interconnecting and optimizing industrial processes. Indeed, the fourth industrial revolution represents the sector’s ambition to adopt and implement technological advances to cope with an increasingly changing world and economy.
5. Now, after a decade in vogue, it seems that what we know as Industry 4.0 is clearing the way for a new concept that goes beyond pure technological change in the factory. We are referring to Industry 5.0, a vision that is beginning to gain prominence and that has come to place, at the center of the industrial revolution, its capacity to have a positive impact on society.
1. The Covid-19 pandemic has accelerated the transition to net zero, making renewable energy a growing attraction for FDI.
2. The race to achieving net-zero emissions is a reality by now across industries and geographies. The timing is just right for investment in renewable energy and other sources of alternative power to bloom, as the sector has matured.
3. According to GlobalData’s FDI Projects Database, foreign direct investment (FDI) into greenfield renewables and alternative power projects has grown by 40% in the period between 2019 and 2021, going from 444 projects worldwide in 2019 to 789 in 2021.
4. Provisional data for 2022 shows that trend is being upheld with a total 811 projects in the period from January to October.
1. Manufacturing-X is a data ecosystem and industry, academia and policy initiative that aims to optimize and modernize industrial supply chains and production processes.
2. The Manufacturing-X concept represents a new generation of manufacturing technology, incorporating Industry 4.0 approaches and merging technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), robotics, and data analytics.
3. The objective of the Manufacturing-X concept is to ensure more efficient, flexible, and cost-effective production processes while establishing a highly adaptive manufacturing environment capable of responding to individual customer demands and real-time market needs.
1.
Starting from 1 October 2023 designated imported goods from outside the
European Union (EU) will fall under new EU regulations: the Carbon Border
Adjustment Mechanism (CBAM). Referred to as CBAM goods. CBAM will be gradually
implemented. From 1 October 2023, you will need to report on these goods, and
from 1 January 2026, there will be a registration and payment obligation. This
page provides you with more information on this matter.
2. CBAM
is a price adjustment applied to imports into the EU for designated goods based
on their CO2 emissions in the production process outside the EU. The aim of
CBAM is to prevent the risk of carbon leakage. Also, by encouraging the
reduction of emissions by operators in third countries (countries outside the
EU), global carbon emissions should be reduced.
3. CBAM
is an EU regulation and part of the 'Fit for 55' package. The goal of this
package is to reduce greenhouse gas emissions in the EU by at least 55% by
2030.
4. Currently, the EU operates a system where producers within the EU have to purchase emission allowances for the CO2 emissions of their products (EU Emissions Trading System, EU ETS). The CBAM price adjustment ensures that these producers no longer face a competitive disadvantage when importing from third countries with lower climate standards.
1. In the last case, grantmakers have only one chance at a first introduction, and that’s very often when grant seekers enter your grant application process. Will the moment be a heartwarming meet cute or a bucket of red flags? Will the right people and nonprofits feel a connection, or will you instead attract bad fits for your mission?
2. Grantmakers have only one chance at a first introduction, and that’s very often when grant seekers enter your grant application process. Will the moment be a heartwarming meet cute or a bucket of red flags? Will the right people and nonprofits feel a connection, or will you instead attract bad fits for your mission?
1. Tenaga Nasional Bhd (TNB) plans to deploy an additional RM35 billion between 2025 to 2030 towards upgrading Malaysia’s power grid, to ensure the infrastructure does not become an obstacle in the nation’s energy transition (ET) endeavours.
2. This is on top of the national utility giant’s RM54 billion non-ET investment allocation for the grid over the same five-year period.
3. This means that TNB plans to invest a total of RM90 billion into Malaysia’s grid in the coming five-year period. This is nearly double the RM46 billion the group allocated for 2018-2024. which comprises RM40 billion for non-ET and RM6 billion for ET.
1. Malaysia’s 2023 Budget offers enhanced tax incentives to encourage investment in key industries, such as aerospace, shipbuilding, electric vehicles, and electrical and electronics.
2. The budget also extends tax incentives for foreign workers in C-suite positions and manufacturing companies investing in automation equipment.
3. Malaysia’s Budget for 2023 is the largest in the country’s history, amounting to 388 billion ringgit (US$86.8 billion). Through the incentives in the budget, the government seeks to maintain and enhance Malaysia’s competitiveness as an investment destination.
4. Budget 2023 also made changes to Malaysia’s corporate and individual tax regimes. These are lower individual income tax rates for middle earners and increasing the rate for higher earners. MSMEs can now benefit from a decrease in the corporate income tax rate from 17 to 15 percent.
1. Imbalance Cost Pass-Through (ICPT) implementation for the period of 1st July – 31st December 2023 are as follows:
2. Domestic customers are not subjected to ICPT implementation.
3. Surcharge of 5.39 sen/kWh for all commercial and industrial customers.
4. The decline of Natural Gas Price has reduced the ICPT surcharge quantum from 8.19 sen/kWh in January 2023 to 5.39 sen/kWh effective 1st July 2023.
1. Businesses and consumers today are living in a time where being part of the clean energy revolution is becoming increasingly easier and more affordable. A few years ago, participating in the movement meant sourcing your own technology, such as solar panels, and installing them in your yard or rooftop.
2. Fast-forward to today, we see a clear diversification – and democratisation – of clean energy vehicles, ranging from government-led initiatives to private sector tools. As the clarion call to join the sustainable energy revolution grows louder, it’s evident that there is a need and demand for greater inclusion and public participation.
3. Enter the Green Electricity Tariff, or GET, is an initiative by the Government of Malaysia, introduced in 2022 to serve as a driver for this purpose. In a nutshell, this innovative tariff allows consumers to purchase green electricity generated from renewable energy, directly from utilities. It’s a great initiative for consumers or businesses interested in being part of the sustainable energy value chain without extensive investment. Here, Energy Watch explores seven interesting facts about the GET that you should know.
1. Malaysia launched its National Energy Transition Roadmap (NETR) on July 27, 2023 with a strong focus on transforming the economy and creating potential business opportunities in the energy sector. Phase 1 of the NETR unveiled 10 flagship catalyst initiatives that aim to attract investments and generate job opportunities while reducing CO2 emissions by over 10 million tons annually.
1. Investment Promotion Agency Qatar (IPA Qatar) announced the signing of new Memorandums of Understanding (MoUs) with two international companies, Siemens and Emerson, today on the sidelines of the Qatar Economic Forum,
2. The Investment Promotion Agency Qatar (IPA Qatar) has announced a partnership with Knight Frank, a UK-based global real estate consultancy to showcase Qatar's real estate industry to international investors.
3. The Investment Promotion Agency Qatar (IPA Qatar) has signed a double deal with PwC, which will see the accounting and consulting giant help the agency attract international investors and expand its own footprint in the country.
1. A better understanding of carbon capture, utilisation and storage (CCUS) costs is needed before the technology can become a commercial reality on a truly global scale
2. Carbon capture, utilisation and storage (CCUS) looks set to become a key element of net zero future. A combination of factors is prompting new project announcements: carbon taxes, government subsidies, operator and/or investor desire to reduce emissions, consumer willingness to pay more for carbon-abated products and the ability to sell carbon removal as an offset.
3. Based on risk analysis of current global projects in development and view of future growth, global capture capacity to increase more than sevenfold over the next 10 years, from 50 Mtpa to more than 370 Mtpa. Over US$150 billion in capital expenditure is required. Accelerated Energy Transition (AET) 1.5 °C scenario calls for 2 Btpa of CCUS, almost six times those projections, with roughly commensurate capital costs.
4. So, while the world determines whether and how to incentivise carbon capture to meet climate objectives, CCUS project developers are beavering away, designing projects that maximise the abatement per dollar of cost. Without improved clarity on these costs, development stumbles and capital does not flow freely.
1. FDI flows were strong in 2022, but IPAs face new challenges when it comes to attracting investors.
2. Greenfield foreign direct investment (FDI) has recovered since its near total collapse in 2020, and the past two years have been marked by a prolonged rebound. In the Middle East and North Africa, the growth shown has been significant, and the number of projects in the region soared from 2021 to 2022.
1. On 23 June 2023, the Government of Malaysia announced a total subsidy allocation of RM5.2 billion for the next ICPT implementation period from 1 July 2023 until 31 December 2023 to protect ~99% of TNB customers in Peninsular Malaysia from the impact of higher fuel costs which accounts for 65% of the electricity bill.
2. In electricity bill, ICPT is a mechanism that is approved by the Government and implemented since 2014 to reflect changes in the cost of electricity generation, specifically fuel costs every six (6) months. For reference, the electricity tariff schedule in Peninsular Malaysia is unchanged since 2014.