A🧡629-word💚under 4-minute💙read
Before diving into this week’s Quick Hits, I want to put a period on the discussion about the proposed changes to the Inflation Reduction Act. During the week I highlighted the hit to both the consumer and commercial markets. Also highlighted was how language changes may be more damaging than changes in timing to the tax credits themselves.
Today, we’ll wrap with a brief discussion of a proposed change that will significantly impact the momentum behind the build-out of a domestic cleantech supply chain.
Data from E2, a national, nonpartisan group of business leaders, investors, and professionals, recently noted that since the IRA’s enactment, 301 clean energy projects have been announced in 41 states and Puerto Rico. It goes on to claim that companies have announced over 100,000 new jobs, and nearly $121 billion in capital investment.
I suspect all those numbers are inflated. Projects and commitments have been continually falling by the wayside. However, a significant number of projects – particularly in the battery storage space - have moved forward. Until now. A change to the eligibility of these manufacturing projects puts many of them in jeopardy.
The proposal on the table would now restrict any involvement by “prohibited foreign entities,” formally known as a “Foreign Entity of Concern.” Credits can no longer be claimed if a project includes “any material assistance from a prohibited foreign entity.”
“Material assistance” is defined as “Any component, subcomponent, or critical mineral included in such property is extracted, processed, recycled, manufactured or assembled by a prohibited foreign entity, or any design of such property was based on any copyright or patent held by a prohibited foreign entity or any know-how or trade secret provided by a prohibited foreign entity.”
Not only do about 60% of the projects announced include a foreign entity, but if passed, the bill would restrict the use of raw materials from foreign entities. In essence, it will render the majority of the announced projects ineligible.
Needless to say, I doubt many saw this coming, but they should have.
On that note, on to today’s Quick Hits, Stories include another UK cleantech record, a GHG twofer, the less than optimistic outlook for oil, and a continuing problem for renewables that the proposed changes to the IRA will make far worse.
𝗧𝗵𝗲 𝗵𝗲𝗮𝗱𝗹𝗶𝗻𝗲𝘀:
▶ Tea, crumpets, and a second-hand EV
▶ I’ll have coal with a methane chaser
▶ Nil, baby nil
▶ Get in line
#solarpower #coal #methane #evs #electricvehicle #ghg #ghgemissions