Access to and the ability to mine Critical Minerals on a sustainable basis will be the next quest in energy transition. The requirements to meet the ideology to rapidly shift to EV are staggering. That does not mean I am anti-Renewable Energy and Electric Vehicles (EV). It comes down to scarce resources and access to them measuring against steep transition expectation curves.
Here are other important things to consider concerning the required charging infrastructure and the headaches that represent.
Enthusiasm from individual traders is reshaping the market for nuclear fuel that generates a tenth of the world’s electricity and sending uranium-linked stocks higher.
Eugene Van Den Berg, Oct 2021
From the above article:
“Enthusiasm from individual traders is reshaping the market for nuclear fuel that generates a tenth of the world’s electricity and sending uranium-linked stocks higher. After languishing for a decade after the Fukushima disaster led Japan and Germany to close nuclear reactors, spot uranium prices have shot up to $47.10 a pound from $32.25 at the start of August. They remain below their peak of $137 in 2007”
With the current energy crisis and previous Renewable Energy (RE) transition plans to make a “quantum leap” in the short-term, no that’s wrong. It’s actually “trying to take a shortcut on a global scale to chase an ideology, the world has “injured” itself in doing so”. As we learn in school solving the math problem does not work so well trying to take shortcuts. We may get to the wrong answer, and still get marks for the steps shown in solving the Algebra equation. Let that sink in then you may appreciate that the race to “prefect ESG” creates problems that are best avoided.
Germany wanted to cut nuclear and replace it with RE wind and solar. It did not quite work out as planned.
Other countries are running flat out a stampede to instantly move from coal-fired plants to RE wind and solar, having disregard that energy transition will have better outcomes when executed in a structured and organised fashion. Transition from coal to Natural Gas and Nuclear whilst, alongside that, the challenges around RE wind and solar intermittency is scienced to perfection, including solving battery storage and fast charge challenges for Electric Vehicles, will ensure smoother long-term outcomes.
To top it all off, as we transition, all should be engaging in planting trees and replace forests being destroyed in a rehabilitation ratio of [1:10]
There are grave problems with the transition to clean energy power
Eugene Van Den Berg Oct, 2021
From the above article, The Economist writes:
“Next month world leaders will gather at the cop26 summit, saying they mean to set a course for net global carbon emissions to reach zero by 2050. As they prepare to pledge their part in this 30-year endeavour, the first big energy scare of the green era is unfolding before their eyes. Since May the price of a basket of oil, coal and gas has soared by 95%. Britain, the host of the summit, has turned its coal-fired power stations back on, American petrol prices have hit $3 a gallon, blackouts have engulfed China and India, and Vladimir Putin has just reminded Europe that its supply of fuel relies on Russian goodwill.The panic is a reminder that modern life needs abundant energy: without it, bills become unaffordable, homes freeze and businesses stall. The panic has also exposed deeper problems as the world shifts to a cleaner energy system, including inadequate investment in renewables and some transition fossil fuels, rising geopolitical risks and flimsy safety buffers in power markets. Without rapid reforms there will be more energy crises and, perhaps, a popular revolt against climate policies.”
Over the past 30-years or so, Renewable Energy (RE) wind and solar failed to capture sufficiently enough energy marketshare to have stored off the current global energy crisis notwithstanding vast subsidies.
Contributing to the challenges are the demand for RE component parts stemming from critical commodities like Lithium, Copper, Cobalt and many more, that are used in manufacturing such parts. These commodities too experiencing demand that exceeds supply, and the last few years are only the start of a massive drive to accomplish energy transition goals. What will demand and pricing likely look like over the next few years.
Electric Vehicles (EVs) too showing strong growth and demands more copper and microchips than Internal Combustion Engines (ICEs). Microchip supply chains are under strain and so are the supply chains of other RE core commodities.
Rex Murphy: This energy crisis has been 30 years in the making. Why is anyone surprised?
None of the elite bound for the grand climate shindig in Glasgow have to worry about unmeetable energy bills
Eugene Van Den Berg Oct, 2021
The current energy crisis playing out in large parts of the world is driven chiefly by the onset of a commodity supercycle that commenced in April 2020, combined with massive under investment in oil and gas since 2015. Such under investment causes demand for oil and energy commodities to exceed supply.
From the above article, The National Post writes:
“The inevitable collision between 30 years of global warming hyper activism — the howling demonization of available, proven energy resources — and reality, is upon us. There is an atmosphere of semi-panic as many of the countries most committed to “getting off” oil and gas and turning their economies over to wind and sun find winter approaching and they, environmentally virtuous as they are, are wondering if they have enough oil and gas and even coal to get through it.”
Commodities in turn drive the demand for oil. Vast amounts of oil is needed to drive the machinery and industrial equipment used to process such commodities. This cycle compounds increases in inflation.
