• US battery storage nearly doubled year on year by the end Q3 2022
• COP drag on carbon projects; landmark PPA for Renault
• Vietnam considers phasing out coal in power sector by 2050

The total capacity of US power grid-connected battery storage nearly doubled year on year by the end of the third quarter of 2022, climbing 97% to 9.6 GW. However, storage additions have slowed because of supply chain issues and inflation and are unlikely to benefit substantially from the Inflation Reduction Act through the end of the year. Meanwhile the expanded tax credits for carbon capture projects in the IRA prompted Europe's leading direct air capture company Climeworks to announce plans to bring Louisiana a direct air capture and carbon storage hub. It would be the state's first such direct air capture facility and would help its industrial coast reach climate targets.

The lack of an agreement on key rules on international emissions credit trading at the UN Climate Change Conference in Egypt is a deterrent to investment in carbon reduction projects, Andrea Bonzanni, international policy director at the International Emissions Trading Association, said Nov. 21. Meanwhile a landmark PPA in France saw automaker Renault signing up for 350 MW of solar supply, the country's largest deal to date. Output of 500 GWh/yr will help decarbonize ElectriCity hub, Europe's largest EV production center set to produce 500,000 vehicles a year by 2025.

In Asia Pacific, with Vietnam next in line to receive billions of dollars in energy transition financing under the Just Energy Transition Partnership by the end of 2022, its government is already backing down from coal-fired power generation. Vietnam's new draft power plan, a copy of which was obtained by S&P Global Commodity Insights, expects a complete phase out of coal-fired power generation by 2050 and even sets aside a scenario where 6.8 GW of approved coal-fired projects may not materialize. It expects a large ramp-up in LNG-fired power generation, renewables and a significant build out of hydrogen and ammonia in the energy mix from 2035 onwards. In carbon markets, Singapore said it will launch a carbon credit data platform -- Climate Action Data Trust -- in December, which will consolidate and harmonize information from different project registries worldwide under a World Bank sponsored project – Rocco Canonica

Americas

SPGlobal.com

New York climate law implementation plan nears completion with focus on reliability

Maritime decarbonization requires $2 trillion spending on green fuels: Maersk

Rail, industry officials push US Congress to act quickly to avoid a rail strike

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US battery storage capacity climbs to 9.6 GW in Q3, 1.33 GW planned in Q4

Climeworks partners with Louisiana carbon storage company to develop direct air capture hub

EMEA

SPGlobal.com

COP27: Deterrent to carbon market investments as key Article 6 decisions deferred

Australia, UK critical minerals entities eye creation of integrated battery supply chain

Maritime decarbonization requires $2 trillion spending on green fuels: Maersk

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EWE, TES to build 500-MW green hydrogen plant at Wilhelmshaven, Germany

Renault signs 350-MW French corporate power purchase deal with Voltalia

APAC

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LNG to become key transition fuel for Vietnam's power generation [2 Parts]

China stresses loss and damage finance for climate change as developed countries' obligation

PNG, Japan sign cooperation agreement on cross-border carbon trading

Petronas, Vopak to develop carbon capture and storage in Southeast Asia

Singapore to launch global carbon credit data hub in December: minister

Chart of the week

West, Texas lead rapid US battery storage capacity additions in Q3 2022, into Q4

Quote of the week

"Until a decision on [Article 6.4 governance] is made, countries are free to implement their own rules. The threat of revocation and frequent changes is a deterrent to investment, so we hope countries will devise policy frameworks that take that into consideration" -- Andrea Bonzanni, international policy director at the International Emissions Trading Association

Price of the week

$21.28/mtCO2e

Platts' new Blue Carbon CARBEX index, powered by Viridios AI, reflects the price of voluntary carbon credits from blue carbon projects – those that focus on preservation and improvement of coastal and marine ecosystems