Hydrogen Stocks Crash as Hype Faces Reality Check 


Will the climate alarm spending and subsidy bubble go the way of the boom-and-bust dot-com bubble of the late 1990’s? Leaders can and do make grandiose climate policy decrees, but Big Green needs constant handouts which eat into economies that meet its demands. Meanwhile energy costs are driven upwards and renewables make electricity grids struggle to remain stable, but there’s no detectable effect on the claimed objective of it all i.e. CO2 levels. In the case of hydrogen, attempts to create a market for the product are going badly.
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The low-carbon hydrogen hype has begun to fade in recent months as companies and investors realize that their ambitions face the reality of costly projects amid regulatory stumbling blocks and uncertain future demand, says OilPrice.com.

The momentum behind green hydrogen from two years ago, generated by the U.S. Inflation Reduction Act (IRA), has slowed amid still high costs and macroeconomic headwinds. In addition, regulatory uncertainty and a lack of committed demand are undermining the 2030 production goals for low-carbon hydrogen, both in the United States and Europe.

As a result, investors are re-thinking funding, companies are re-drawing hydrogen production strategies, and share prices of major hydrogen players are crashing.

For example, Denmark’s Green Hydrogen Systems (CPH: GREENH), a provider of standardized, modular alkaline electrolyzers, has plunged by 65% year to date. U.S.-based Plug Power (NASDAQ: PLUG) has seen its stock tumble by 53% year to date, and Ballard Power Systems Inc (NASDAQ: BLDP) has crashed by 58%.

Other firms focused on green hydrogen and technologies have also seen their share prices battered amid signs that despite progress in project announcements, project commitments with final investment decisions (FID) are a fraction of the total pipeline of projects.
. . .
Even the International Energy Agency (IEA), the most vocal backer of all things renewable, has warned that policy and demand uncertainty are slowing down green hydrogen adoption globally.

According to the IEA, the main reasons for the slow uptake of low-carbon hydrogen “include unclear demand signals, financing hurdles, delays to incentives, regulatory uncertainties, licensing and permitting issues and operational challenges.”

Full article here.

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October 29, 2024 at 02:48PM

BBC Still In Denial About Sri Lanka’s Ban on Fertilisers

By Paul Homewood

 

One of our readers sent me this correspondence he had with the BBC a few weeks ago:


 

Below is a letter I wrote at the beginning of October to Tony Grant, the editor of Radio 4’s ‘From our Own Correspondent’:

Dear Mr Grant,

I listened with disbelief at your piece from Sri Lanka broadcast on the 28th of September, in which your correspondent, Samira Hussain, reported that the economic crisis that devastated the country a couple of years ago was brought about by the corruption of the then ‘right wing’ government.  Whilst I daresay there was (and remains) a fair deal of corruption in its administration, the cause of that disaster (and it was a disaster for tens of thousands of rural farmers) was not that.  It was the catastrophic crop failures that followed the government’s responding to the demands of the global climate change lobby by banning the import of fertilizers. 

I don’t believe that you and your colleagues are ignorant of this, or of the misery and starvation that was the outcome.  Rather, that such cause runs counter to the supposedly truth-seeking national broadcaster’s Climate Change agenda.  Indeed, I recall at the time of the disaster how shamelessly it managed to avoid any mention of banned fertilizer, so perhaps this lie of omission is what you’ve since all come to believe. 

That the Corporation has become an unquestioning propagandist for this controversial creed is lamentable.  Serving up such dishonest journalism is extraordinary.

To my surprise, the normally combative Grant ( with whom I’ve had previous correspondence) failed to reply, instead forwarding my letter to BBC Complaints who in turn responded (misspelling my name) with a typical piece of obfuscation:

Reference CAS-7944404-Z4T1X8

Dear Steven,
Thank you for contacting us in relation to our broadcast of From Our Own Correspondent on 28 September and for sharing your thoughts with us.
We note your concerns relating to Samira Hussain’s report due to concerns of factual inaccuracies.
The primary focus of this report was to provide an overview of the current political landscape in Sri Lanka, including the election of a new president, Anura Kumara Dissanayake and the backdrop of the country’s ongoing economic challenges. As part of this Samira mentioned the role corruption and financial mismanagement by the previous government, particularly the Rajapaksa administration exacerbating the economic crisis.
That said, we do understand your point regarding the impact the government’s ban on chemical fertilisers had. While the report did not explore this specific aspect, this is something that we have featured in our wider coverage:
https://www.bbc.co.uk/news/science-environment-62149554
https://www.bbc.co.uk/news/world-asia-pacific-58485674
https://www.bbc.co.uk/news/world-61028138


Below are my thoughts!

The BBC clearly want him to believe that those three links are recent. They are not. This is the first one is a piece of disinformation from Marco Silva two years ago, which claims that the fertiliser issue was only a minor issue:

image

image

https://www.bbc.co.uk/news/science-environment-62149554

The second is another BBC Verify piece, which again dismissed fertilisers as being the main cause of the food problem.

The third’s only reference to fertilisers was an outright lie, that imports were banned because of foreign currency shortages:

image

image

https://www.bbc.co.uk/news/world-61028138

We need to remember how the BBC reported the Sri Lanka crisis at the time:

image

Leaves from the lush green tea estates covering the hills of central Sri Lanka end up in cups across the world.

Tea is the island’s biggest export, normally bringing in more than $1bn a year, but the industry is being hard hit by the unprecedented economic crisis.

Most of Sri Lanka’s tea is grown by smaller farmers, like Rohan Tilak Gurusinghe, who owns two acres of land close to the village of Kadugunnawa.

But he’s still reeling from the impact of a sudden, poorly thought-out government decision to ban chemical fertiliser last year.

"I’m losing money," he tells the BBC despondently. "Without fertiliser or fuel, I can’t even think about the future of my business."

The ban, ordered to try to protect the country’s dwindling foreign reserves, was one of a number of disastrous policy decisions implemented by the now-ousted President Gotabaya Rajapaksa, with agricultural output falling significantly.

https://www.bbc.co.uk/news/world-asia-62221355

Even back then, they were still trying to blame the ban on “dwindling foreign reserves”. In fact it was the massive drop in tea exports which led to those dwindling reserves.

The truth is simple and there for the BBC and everybody else to see, because this is what Sri Lanka’s President proclaimed in Glasgow at COP26 in October 1921, a few months after the ban was introduced.

Nitrogen is an abundant element that is essential to the sustenance of all living things.

However, reactive nitrogen generated by human activity and released into ecosystems worsens climate change.

Overuse of nitrogen, especially in fertilisers, has adverse impacts on soil, water, air, and human health.

For decades, chronic kidney disease has been a serious issue in Sri Lanka’s agricultural heartland.

The overuse of chemical fertilisers has contributed significantly to this problem.

It is in this context that my Government took firm steps to reduce imports of chemical fertilizer, and strongly encourage organic agriculture.

https://srilankahc.uk/2021/11/01/speech-by-president-gotabaya-rajapaksa-at-the-cop-26-side-event-on-31-oct-2021-in-glasgow-scotland-uk/?mc_cid=5757bf9f03&mc_eid=4961da7cb1

It could not be any plainer.

But the BBC could never admit that Sri Lanka’s disastrous harvest was due to climate change policies. That would not do, would it?

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October 29, 2024 at 01:10PM

Oops, Science Was “Settled”—Until It Wasn’t: Plants Absorb 31% More CO₂ Than We Thought

A new study reveals that plants have been absorbing 31% more CO₂ than previously believed. Yes, 31%—a glaring error that casts serious doubt on climate models, emissions scenarios, and policy prescriptions like Net Zero. For years, we were told that the “science was settled,” and that urgent action was needed to avoid catastrophic warming. But this discovery suggests that our models have been dramatically underestimating nature’s ability to manage CO₂. This revelation not only upends the rationale behind aggressive policies but also raises broader questions about the supposed certainty of climate science.

The Myth of “Settled Science”

The phrase “settled science” has been the bedrock of climate advocacy for decades. We’ve been told that if we don’t make rapid, costly changes, we’d face imminent disaster. Skeptics were treated as heretics, while the so-called consensus was portrayed as unquestionable. Yet, it turns out we were 31% wrong about something as fundamental as plant CO₂ absorption. This isn’t a minor correction; it’s a massive revision that undermines the credibility of models driving policy.

The Unraveling of Climate Models

Climate models are the tools used to predict warming and guide policy. They’ve been treated as scientific scripture, driving policies from emissions reductions to renewable energy mandates. But with a key assumption proven wrong, the models’ projections are called into question:

  1. Overblown Emissions Impact: Climate models predicted rapid CO₂ buildup, assuming limited natural absorption. This inflated the urgency of drastic emissions cuts. Correcting for higher CO₂ absorption rates means that CO₂ accumulates in the atmosphere slower than models predicted, weakening the case for urgent, economy-wrenching measures.
  2. Questionable Feedback Loops: Many models rely on dramatic feedback loops—such as reduced plant CO₂ absorption at higher temperatures—to justify emergency interventions. But this new data shows plants can handle more CO₂ than anticipated, making these feedback loops look less inevitable and more speculative.
  3. Policy Implications: If the models guiding climate policy have been this far off, then the entire framework behind policies like Net Zero becomes shaky. Policies driven by these models were never proven to be beneficial, but were only assumed to be so. The discovery that plants are absorbing significantly more CO₂ undermines the supposed need for extreme measures.

Integrated Assessment Models: Revisiting Flawed Assumptions

Integrated Assessment Models (IAMs) blend climate and economic data to suggest policies that balance costs and benefits. They have provided much of the justification for global measures ranging from carbon taxes to renewable subsidies. But with CO₂ absorption rates off by 31%, these models face a major credibility problem.

  1. Cost-Benefit Analysis Loses Its Basis: IAMs assume a certain rate of CO₂ absorption to weigh the costs of emissions cuts against the benefits. If the natural absorption is higher, then the benefits of aggressive cuts are lower than the models projected. In short, many of these “benefits” were assumed rather than demonstrated.
  2. Marginal Abatement Costs Are Likely Wrong: If plants are more effective carbon sinks, the cost of reducing each additional ton of CO₂ may be overstated in current models. This means that the high costs of immediate interventions may not be justified by the reduced warming they are supposed to achieve.
  3. Tech-Centric Solutions Become Harder to Justify: Expensive technological carbon capture schemes, often seen as a cornerstone of Net Zero strategies, become less urgent in light of nature’s greater CO₂ absorption capacity. Relying on natural processes might be more cost-effective, while prioritizing costly tech solutions could be a waste of resources.

The Net Zero Push: Unproven and Assumed to Be Beneficial

Net Zero policies are often presented as inherently beneficial, with no need to prove their value. The assumption is that reducing emissions rapidly will stabilize the climate and prevent catastrophic warming. But the reality is far less certain:

  1. Urgency Based on Unproven Models: The rush to Net Zero has been justified by models that assumed much lower natural CO₂ absorption. With plants taking in more CO₂, the urgency diminishes, raising questions about whether this policy was ever justified, beyond mere assumptions of benefit.
  2. Economic Costs Without Clear Benefits: The transition to Net Zero is projected to cost trillions, requiring massive infrastructure changes and energy system overhauls. These changes were sold as necessary to prevent dire outcomes, but with natural systems absorbing more CO₂, the supposed benefits become even murkier. The costs are real, while the benefits remain speculative.
  3. A Flawed Logic of Assumed Good: Proponents argue that even if Net Zero doesn’t deliver promised benefits, it’s better to “play it safe.” But this logic ignores the very real economic and social costs of these policies—costs that can harm the most vulnerable. If models were wrong about something as basic as CO₂ absorption, then continuing these extreme measures without re-evaluation is irresponsible at best.

Climate Sensitivity: Rethinking the Crisis Narrative

Climate sensitivity measures how much the Earth’s temperature will rise with a doubling of CO₂. It’s a core figure in climate models, typically estimated to be between 1.5°C and 4.5°C, with policy-driving models often assuming a midpoint of 3°C. If plant CO₂ absorption rates were so underestimated, it suggests that the models might also be overestimating climate sensitivity.

  1. Slower CO₂ Accumulation Reduces Sensitivity: If natural absorption is higher, the atmospheric CO₂ concentration increases more slowly, which may imply a lower climate sensitivity than currently assumed. In other words, less CO₂ means less immediate warming, contradicting the dire predictions that have justified extreme policies.
  2. Overestimated Warming Scenarios: The upper estimates of climate sensitivity have driven much of the urgency around climate action, but this new data suggests that the Earth may not warm as rapidly as claimed. If the worst-case scenarios are less likely, then the aggressive timelines for emissions reductions look increasingly unjustified.
  3. Time to Adapt, Not Panic: If climate sensitivity is indeed lower, it means we have more time to adapt to any changes, that may in fact be natural, rather than rush into drastic mitigation measures that haven’t been proven to work. Adaptation becomes a more reasonable and potentially effective strategy, given the new information on natural absorption rates.

The Bigger Picture: Science Isn’t Settled, and Neither Is Policy

The discovery that plants absorb 31% more CO₂ than we thought reveals just how far off the mark climate models—and the policies based on them—can be. It’s not just a matter of revising a few numbers; it’s about rethinking the entire narrative of “settled science.”

  • Assumptions, Not Proof: Policies like Net Zero were based on assumptions of benefit, not evidence. They were sold as urgently needed to prevent catastrophe, but those catastrophic outcomes were based on models that got a core assumption wrong by nearly a third.
  • More Surprises Await: If this key factor in the carbon cycle was so miscalculated, how many other natural systems might also be misunderstood? The real danger may not be climate change itself, but the overconfidence of those who claim to understand it fully.
  • The Real Risk Is Bad Policy: Extreme measures based on flawed models can do more harm than good. If the costs of policies like Net Zero outweigh their uncertain benefits, then pushing ahead with them is reckless and potentially damaging.

Conclusion: Stop Assuming, Start Reassessing

The revelation that plants absorb 31% more CO₂ than previously estimated is a major blow to the models driving global climate policy. It challenges the core assumptions behind policies like Net Zero, which were never proven to be beneficial but only assumed to be so. If climate sensitivity is lower, warming slower, and natural CO₂ absorption higher, then the rush toward extreme measures looks increasingly unjustifiable.

It’s time for policymakers to recognize that the science is not “settled” and that uncertainty remains the defining feature of climate science. Instead of doubling down on unproven policies, it’s time to pause, reassess, and adapt to evolving evidence. Continuing the rush to Net Zero without a fundamental re-evaluation isn’t prudent; it’s a gamble with society’s resources and well-being.

Abstract

Terrestrial photosynthesis, or gross primary production (GPP), is the largest carbon flux in the biosphere, but its global magnitude and spatiotemporal dynamics remain uncertain1. The global annual mean GPP is historically thought to be around 120 PgC yr−1 (refs. 2,3,4,5,6), which is about 30–50 PgC yr−1 lower than GPP inferred from the oxygen-18 (18O) isotope7 and soil respiration8. This disparity is a source of uncertainty in predicting climate–carbon cycle feedbacks9,10. Here we infer GPP from carbonyl sulfide, an innovative tracer for CO2 diffusion from ambient air to leaf chloroplasts through stomata and mesophyll layers. We demonstrate that explicitly representing mesophyll diffusion is important for accurately quantifying the spatiotemporal dynamics of carbonyl sulfide uptake by plants. From the estimate of carbonyl sulfide uptake by plants, we infer a global contemporary GPP of 157 (±8.5) PgC yr−1, which is consistent with estimates from 18O (150–175 PgC yr−1) and soil respiration ( PgC yr−1), but with an improved confidence level. Our global GPP is higher than satellite optical observation-driven estimates (120–140 PgC yr–1) that are used for Earth system model benchmarking. This difference predominantly occurs in the pan-tropical rainforests and is corroborated by ground measurements11, suggesting a more productive tropics than satellite-based GPP products indicated. As GPP is a primary determinant of terrestrial carbon sinks and may shape climate trajectories9,10, our findings lay a physiological foundation on which the understanding and prediction of carbon–climate feedbacks can be advanced.

https://www.nature.com/articles/s41586-024-08050-3

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October 29, 2024 at 12:03PM

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October 29, 2024 at 10:07AM