Evelyne Pflugi

I read today's article in the The Guardian (see link in comments below) with interest. The dawning realisation and indeed policy endorsement to promoting the continued usage of #naturalgas in the #UK's power system, demonstrates a level of common sense from the incoming #Labour administration - though let's not pick bones about the fact that the previous administration's decision to extend usage of #CCGTs met with widespread criticism from across the chamber at the time.  The idea that greater penetration of renewables in the system requires greater #flexiblepower provided by natural gas #powergeneration, is clear - at least until and unless it is displaced by #nuclear, or indeed #longdurationstorage, which can recycle green #electrons. The jury's currently out on the latter from a commercialisation perspective, and new nuclear build is years ahead. So natural gas continues to be the #decarbonised transition fuel of choice. But here's the kicker, with #carboncapture #technology attached to gas generators, we can deliver #netzero flexible power into the #grid. And why only #sequester the #CO2? Why not create a further revenue opportunity by scrubbing or reusing the CO2 in products such as food grade #industrialgases or #carbonblack products, or indeed #methanol? In doing so, a real opportunity exists to invest without the dependence on #subsidy. At Victory Hill Capital Partners LLP, our thematic approach to investing in the #energytransition foresaw such an #evolution, hence our investment in a UK programme which provides #gasfired flexible power combined with carbon capture technology which scrubs the CO2 into #foodgrade CO2 to be sold into the industrial gases market where there is a structural short in the UK, creating a #sustainable value chain, with our partners, Landmark Power Holdings. Moving forward, we believe the picture of the #demandsidedynamics are likely to be further skewed by the emergence of generational #AI technology in #datacentres. With the amount of energy required for AI technology tasks being 10x more than the equivalent Google tasks, the demand for dependable energy is expected to spike to historically higher levels in the next 10 years in #Europe, the #US and beyond. And within this context, the conversation will likely be, is natural gas a #transitionfuel? Or will it be here to stay? In which case the question arises of: who understood ahead of time the benefits of carbon capture technology, and is there sufficient policy initiatives and #privatecapital to support this? Interested? #letstalk #sustainableinvesting #unsdgs #victoryhill #gseo Department for Energy Security and Net Zero Fiona Harvey #victoryhill Emily Revess #sustainableenergy Louis Taylor John Flint Emma Floyd Valerie Hamill Victoria Seabrook Rt Hon Rachel Reeves Peter Kyle Lord Philip Hunt

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Really pleased with the announcement today of VH Global Sustainable Investment Opportunities plc's #GSEO half year 2024 #results, specifically reflecting on the strong underlying performance of the #portfolio. This morning, on our analyst call, I articulated our views on the opportunities for #GSEO in light of increased #demand for electrons caused by the disruptive effect of generative #AI technology on the #energy landscape #globally. Something not fully articulated in recent years by our peers, for whom the role of #renewable #electrons was cast in predominantly #decarbonising our #homes, #industry and #transportation. At Victory Hill Capital Partners LLP we pride ourselves on understanding the whole picture, across different #technologies, #energymarkets and #geographies. Only then can we fully understand how we can enable our #investors to participate in differentiated returns and make a positive #sustainable #impact. #sustainableinvesting #esg #energytransition

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The hydrogen hype can be exhausting but where are the most realistic, promising opportunities for hydrogen deployment in the context of energy transition? Check out Paul Drummond’s research at the link below to find out. #hydrogen #energytransition #transitioninvesting

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"The European gas market appears to be teetering towards a new bearish chapter. Like a spinning top losing momentum, the bull market is caught in its final erratic throes. After the speculative buying frenzy of the last seven months, a reconciliation with flaccid fundamentals was overdue. That moment is nearly upon us, and traders are positioning accordingly on Europe’s benchmark gas trading hub, the Dutch Title Transfer Facility (TTF). This week’s subscriber-only EU LNG Chart Deck provides a forensic analysis of TTF fund movements and a macro view of the wider gas/LNG panorama." Read More: https://lnkd.in/eGNSbGcj Written by Seb Kennedy and published on EklipX Research #GAS #TTF #LNG #JKM #trading #commoditymarkets

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Have you ridden the #carbon credibility rollercoaster? Well, if your business is in any way related to #carbonmarkets – my guess is that you’re in the middle of a very long ride! Check out this article where I look at the SBTi’s evolving #NetZero Standard and how I think #timber can be built into a solution in the carbon credibility crisis. #naturebasedsolutions #climatefinance #VCM #forestinvestment #timberlandinvestment #sustainableforestmanagement

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Debates on measure and usefulness of financed emissions accounting: "Various methodologies have been developed over the last decade to link financial institutions’ portfolios to GHG emissions in the “real” economy, enable them to estimate exposure to climate-related financial risk and provide shareholders and investors a picture of how their financial activity impacts global climate change. Among these approaches, analysis and disclosure of “financed emissions” by financial institutions has become increasingly common (driven largely by the Partnership for Carbon Accounting Financials). Financed emissions methodologies extend the GHG protocol’s framework for emissions footprinting to capture the indirect emissions effects of financial activities. In general, financed emissions metrics at the portfolio level are derived from the aggregation of (a) a calculation of the GHG footprint of each company in a financial portfolio multiplied by (b) an “attribution factor” that captures the financial institutions’ share of the financial value of that portfolio company. This calculation has become popular because it provides a single measure of portfolio progress, because of the familiarity of the GHG protocol among relevant stakeholders, and because it provides third parties a practical means to attribute emissions to financial institutions. Critics of financed emissions have, however, pointed to two core methodological challenges. First, comparability between financial institution disclosures is hampered by the very different and often material assumptions buried in underlying calculations made by each financial institution. Additionally, the constant volatility of the denominator – measures of portfolio companies’ financial value – makes it difficult to interpret the relationship between the metric and actual real-world emissions at any given time. The new paper published today models volatility on a hypothetical financial portfolio of five high-emissions industries and compares the different methodological choices applied by financial institutions in calculating the metric. We found that the most commonly used attribution factor to calculate financed emissions – enterprise value including cash, or EVIC – exacerbates the effect of volatility on the metric. Using accounting metrics (like book value) to calculate financed emissions across the whole portfolio may potentially reduce – but does not eliminate – the impact of volatility while maintaining comparability." link in comments

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Last week, Centum announced our 2023/24 financial results, where we shared that we’ve increased our shareholding in the Akiira Geothermal Power project from 37.5% to 75%. https://lnkd.in/dg3YEREZ Akiira, located in Naivasha near Ol Karia, is a strategic investment for us, and I want to share some of the thinking behind this move. Given the slowdown in domestic demand, we’re focusing on export-oriented sectors that can benefit from a weakening currency, Kenya’s trade agreements, our well-educated workforce, and our advanced financial markets. Last year, we made two significant investments that align with these goals. First, we acquired the assets of Two Rivers to create the Two Rivers International Finance and Innovation Center (TRIFIC). TRIFIC aims to boost service exports, attract foreign direct investment (FDI), and create export-oriented service jobs. Despite being only a year old, TRIFIC has made significant progress, with enterprises expected to bring over USD 250 million in investments and create more than 7,000 jobs. Our second investment was increasing our stake in Akiira to develop this asset more effectively. Akiira’s objectives are similar to TRIFIC’s, focusing on boosting exports, creating jobs, and attracting FDI. We plan to develop significant green power at Akiira, selling it to the grid and to users within a proposed industrial park. This is crucial as industries are increasingly seeking locations near green power sources, especially given the growing importance of sustainability in global supply chains. Kenya’s trade agreements with the UK, EU, UAE, and ongoing negotiations with the US open up vast export opportunities. While green energy is difficult to transport, we can “export” it through goods manufactured using this energy at Akiira. We already have interest from industries like data centers and carbon capture facilities, whose demand for green power is substantial. Our strategy is to create a seamless ecosystem between TRIFIC and Akiira. Investors can set up holding companies in TRIFIC, benefit from SEZ incentives, and develop their projects in Akiira, where they’ll have access to affordable green power and key infrastructure like the Suswa Railway station. In summary, our increased investment in Akiira is a strategic move to leverage global trends in sustainability and green energy. Together with TRIFIC, we aim to drive export-oriented growth, attract foreign investment, and generate significant economic benefits for Kenya.

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