South Korea’s Jeju island is a net-zero cautionary tale 🇰🇷🌳

A decade ago, it set a goal to become independent of fossil fuels by 2030

But halfway through, Jeju is way behind. Emissions rose and it isn’t producing enough clean energy

@HEESU_LEE

bloomberg.com/news/features/…
But there may be at least as much to learn from failure as from success 💡

These are Jeju’s two biggest sources of rising CO2 emissions:

1) Gasoline-powered vehicles, which accounted for nearly 37% in 2019

2) Fossil fuel-based power generation, which contributed 26%
To tackle gasoline vehicles, Jeju island encouraged EV adoption and more sources of renewable power. The government provided subsidies and tax breaks

It assumed that an increase in both would crowd out traditional cars and fuel. It hasn’t, and gas-powered cars has increased 🚗
Then there’s the problem of batteries 🔋

Jeju government agreed to own the batteries (most expensive part of an EV) to help reduce costs

But now the batteries have run their course. There’s no local way to dispose/recycle of spent batteries, and shipping to mainland is costly
Geographically, Jeju is the best place in Korea to harvest wind power 🌬

But residents pay Korea’s highest energy costs, because they rely on shipped diesel or natural gas

Jeju has renewable capacity of 828MW, just 22% of what it says it will need by the end of the decade
Worse yet, Jeju couldn’t even use all the renewable energy it did produce ⚡️

Funneling it into the existing grid could have overloaded the infrastructure, so the island was forced to curtail the excess

More than 19 GWh of electricity was lost from curtailments in 2020
The island can’t simply switch off thermal and gas-based generators to accommodate renewable energy because it can make the whole grid unstable

Without an adequate utility-scale battery storage facility on the island, there’s little the government can do
The fact that Jeju is facing stark challenges even absent heavy industry should be a warning for Korea, said Lee Yong Jae, a professor emeritus at Chung-Ang University who has studied the island’s energy transition plan

His full quote here 👇
Islands like Naoshima and Jeju are appealing laboratories for experiments like this

If these projects can be successful, the thinking goes, the efforts can be scaled up and replicated on the mainland 👀

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More from @SStapczynski

Mar 11
The tycoon whose big short bet on nickel helped trigger a historic spike in prices doesn't want to reduce his position 🪙

LME was forced to halt nickel trading on Tuesday, and it won't restart until at least next week. It'll be interesting when it does

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Mar 11
Uranium prices surged the highest since the 2011 Fukushima disaster on Russia supply concerns
📈☢️

Prices rose to $59.75/lbs, highest since March 2011, when meltdowns at Fukushima sent shockwaves through the nuclear industry and dashed uranium demand

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The White House is considering sanctions on Russia’s state-owned atomic energy company, Rosatom, intensifying concerns over disruptions to uranium exports from Russia

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Mar 10
Europe's plan to quit Russian natural gas is setting up a global fight for LNG 🇪🇺🥊

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Asia and Europe will battle for spare LNG cargoes like never before

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So what does this mean? Higher spot prices for longer

“Europe will need to bid these cargoes away from Asia,” said Nikos Tsafos of CSIS. “But what does a bidding war look like when spot prices are already above $50? I have no idea.”
To be sure, Europe's plan to quit Russian natural gas is full of obstacles

Its import terminals are working near max-capacity, and it will require additional FSRUs to take a large jump in deliveries

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European natural gas slumps as the bloc's government remains reluctant to sanction Russian supplies 📉📉

🇪🇺 Benchmark futures fell as much as 21%. But they're still way more expensive than normal
🇷🇺 Russian shipments are currently running as normal

bloomberg.com/news/articles/… Image
But watch out for Asian demand…

🇯🇵 Japan LNG inventories held by utilities slumped to the lowest level since Dec 2020. They may be eager to snatch up more cargoes to refill storage
Read 5 tweets
Mar 8
China is considering to buy stakes in Russian energy companies and assets 🇨🇳💰🇷🇺

👋 The move comes as Big Oil exits Russian oil & gas projects due to Ukraine war
🛢️ Any Chinese investment is to boost energy imports, and not a show of support for the war

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Japanese officials have warned that if they exit their Russian investments, then countries like China will just snatch them up

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Beijing is in talks with its state-owned firms, including CNPC and Sinopec, on any opportunities to invest in Russia

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Mar 7
Belgium should “keep an open mind” about extending the life of nuclear reactors due to the energy crisis, its energy minister said 🇧🇪☢️

This shows a shift for Belgium, which had targeted to phase out nuclear by 2025

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Without nuclear, Belgium would likely be forced to depend on more natural gas…

👀
Countries including South Korea are reassessing nuclear phaseout plans amid sky-high fossil fuel costs and plans to curb emissions
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