#2 Deeptech Analysed - COP27, the World united to combat global warming for a sustainable future & The Hydrogen revolution, how it is poised to transform the energy landscape and combat climate change
What's happening this week? 7th November
COP 27: What 3ºC of global warming means
By Eden Djanashvili, Deeptech Expert
What is going on?
The United Nation’s annual climate change conference (mostly known as COP 27) has kicked off this week in Sharm el-Sheikh, Egypt. The conference focuses on the themes of decarbonization, energy transition, innovation solutions, pro-climate finance, nature and biodiversity, gas emissions, and many more.
What does it mean?
Climate change is already having devastating effects and the situation confronts CEOs and governors with a challenge at the heart of a new sustainability strategy: how to deliver a transition to net zero while building and reinforcing resilience against an economic and political imbalance outlook? If global temperatures rise to 3ºC, catastrophic results will come up: rising sea levels, desertification, heavier rain, melting glaciers, coastlines gone, deadly heat waves, massive wildfires and damaging downpours will come more often and hit harder than today. By 2050 things will be different than now.
Why does it matter?
💸For markets: unstability, new opportunities on the corner?
Cimate change is increasingly influencing investment decisions but it also poses risks to financial stability. Two main problems arise: physical effects and the impact to move to a less carbon economy. When extreme weather events happen, the higher the financial damage associated to property is. This changes how insurances are reacting to natural disasters and therefore, a mortgage owner might lose the house and not be able to repay the full amount to the bank. Meaning, that the financial system might see some losses too. Even companies can see their energy regulation and prices for utilities and transportation become unstable.
🧑🏿🤝🧑🏻For society: supply chains & new materials restructuration.
Radical technological innovations are increasingly seen as necessary in order to limit climate change to less than 2ºC. Some firms such as BMW or Fiat have instituted entirely new supply chains or materials (e.g. carbon fibre or battery manufacturing capabilities) into their business models. Or even, in the building sector companies are working on smart connected appliances using Internet of Things. Whereas in the food sector, in addition to the rise of plant-based burger market, urban food production or “vertical farming” has been explored to limit emissions associated with the storage and transport of food.
🔮What’s next? New deeptech innovations are on the rise!
The coming decade will be decisive. Innovation has brought us to an inflection point where deeptech is needed. Innovation will be critical to limit dangerous warming:(a) Direct air capture and storage
(b) Advanced batteries (e.g. electric vehicles)
(c) Hydrogen electrolyzers (which can deliver roughly 15% of cumulative emissions reductions between 2030-2050)
Yet many technological approaches remain at their earliest stages and most of them need support from the regulation side (tax credits, greater market demand, public and private investment, etc). The decarbonisation of cement production is also one of the world’s most energy intenstive materials and need a quick innovation to drop it sufficiently to attain levels of 1.5ºC. The IEA estimates that $90 billion in public financing is needed as soon as possible to support the energy transition before 2030 though only $25 billion is budgeted over the next decade. Policy and regulatory frameworks tailored to an innovation agenda and, the reduction of risk are needed to attract more private investment. With the right support society’s transformation could take off in an unimaginable way.
Zero Emission Goal, Hydrogen as a solution?
By Gael Amouyal, Deeptech Expert
What is going on?
During last summer, the public opinion pointed out the responsibility of the aviation industry in the global worming. It is true that the actual way of flying contribute to the climate change with a total of 2.5% of the world carbon emissions. Actors in this sector see the hydrogen as a solution towards the zero carbon emission goal.
What does it mean?
Two technologies are in development to use hydrogen to power aircrafts. It can either be used in a jet engine as burning fuel or to power a fuel cell to generate electricity for a propeller to turn. The engine manufacturer Rolls-Royce and the airline EasyJet announced recently (July 2022) a new partnership to develop the hydrogen combustion engine. They already conducted the first ground test. On the other side the leader in electrical hydrogen engine ZeroAvia and the manufacturer Textron Aviation made an alliance to convert Grand Caravan aircrafts to hydrogen propulsion using the ZeroAvia 600 kW propulsion system. They announced to complete certification by 2025.
Why does it matter?
The world is changing towards greener energies and the aircraft industry is taking part of this change. However this industry has unique challenges that others do not face such as weight limitation and safety which make typical solution not efficient, like lithium battery.
💸For markets: Performance and Big Market!
The hydrogen aircraft market was valued at USD 143.0 million in 2021 and is expected to reach USD 1748 million in 2040. This grows is driven by ecological change but also by economical needs. The hydrogen specific energy is about 2.8 times higher than typical jet-fuel, which means that an aircraft will need approximatively 2.8 times less fuel weight to perform the same range. Between climate change and energy crisis, the hydrogen will take an important place in the replacement of traditional fuel not only in the aviation but also in the automobile world.
🧑🏿🤝🧑🏻For society: is it really greener?
The hydrogen will solve the carbon emission as both technologies are meeting their goal of near zero CO2 emissions. However if we look closer into the hydrogen combustion engine an other molecule is ejected, the NOx (Nitrogen Oxides). This molecule can creat into the atmosphere smog and acid rain, moreover elevated levels of this gas can also cause damage to the human respiratory system. Therefore in my opinion the emission level of nitrogen oxides should be studied and controlled before any commercial use of this engine. Regarding the electrical hydrogen engine, this technology checks all the boxes as the only emission is water H2O. I really think that the hydrogen can be the solution for light transportation like small airplane and airtaxis (shorturl.at/alrT2).
🔮What’s next? A greener future!
This technology is yet to be developed and certified for commercial used, however it is filled of promises. I am an optimistic men and I am sure that the human kind will face the climate change with innovating idea which will reduce our impact on earth, and the hydrogen is one of them !