The transition to a low-carbon economy is an imperative task to mitigate climate change. One of the most effective strategies involves leveraging renewable energy sources like wind and solar power. However, these sources are inherently intermittent and can produce excess energy during periods of low demand or high supply. Dumping excess renewable energy refers to the situation where surplus energy generated from renewable sources like wind, solar, or hydroelectric power is either wasted or not fully utilized.  Curtailment is when a renewable energy plant’s production is restricted and reduced. These happen when the supply of renewable energy exceeds demand, and the grid cannot store or manage the extra energy. Overall, dumping excess renewable energy and curtailment mean losing valuable renewable power because of mismatches between supply and demand or technical limitations of the grid.

Take Texas, for example; the state’s wind energy curtailments, where renewable energy output is reduced or shut off to match demand, are projected to rise from 5% in 2022 to 13% by 2035 under a business-as-usual scenario, wasting significant energy potential (Reuters, 2023). In 2022, California wasted 2.4 million megawatt-hours of electricity, about 1% of the state’s overall annual power generation, 95% percent of It being solar; the state was unable to use the power at the time of generation and had no means to store it.

On a bright and windy summer day in Europe deemed ‘Crazy Sunday’, Germany saw zero or negative wholesale power prices for most of the day due to massive wind and solar production. In essence, the countries’ renewable energy sources generated up to 80GW of power in one afternoon, while peak demand was around 50GW. Germany can theoretically export the excess using its 27GW of interconnector capacity. However, with neighboring countries also experiencing large amounts of wind and solar production, massive curtailment is inevitable. Exporting energy has an economic cost too - last year, UK operator National Grid ESO paid GBP 550/MWh to dispose of the excess energy (Resolve Energy, 2023). These challenges will only get bigger as we expand renewable energy capacity. 

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The Renewable Energy Surplus and the CO2 Shortage Challenge

Renewable energy sources like wind, solar, and hydroelectric power are rapidly expanding, but they are inherently intermittent, creating periods where supply exceeds demand. Batteries can be used to store the excess energy; however, the costs of battery storage are high and there are various supply chain, technical, regulatory and market challenges, which means that not all the surplus energy in the grid can be efficiently stored. During these periods, surplus renewable energy is often wasted through dumping or curtailment. This presents a missed opportunity, especially when this excess energy could be channeled into technologies designed to capture and convert atmospheric CO2.

In recent years, industries that rely on CO2 for their operations, including food and beverage, agriculture, and manufacturing, have faced critical shortages of this essential gas. These shortages, driven by various factors including the rising costs of fossil fuel-based production methods, have highlighted the need for alternative, sustainable sources of CO2. As the global push toward decarbonization accelerates, leveraging excess renewable energy to power Direct Air Capture (DAC) technologies provides a viable solution to this growing problem.

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The Role of Renewable Energy in DAC and CCU

By harnessing surplus renewable energy, industries can power energy-intensive DAC technologies that capture CO2 directly from the atmosphere. Once captured, this CO2 can either be stored permanently, aiding global decarbonization efforts, or it can be used for industrial processes, offering a sustainable alternative to fossil fuel-derived CO2 that is currently facing a pricing surge and supply crisis.

Industries such as food and beverage production and controlled environment agriculture are feeling the impact of CO2 shortages. Beverage carbonation, the preservation of produce, and the operation of greenhouses all require substantial amounts of CO2. The implementation of DAC technologies powered by surplus renewable energy provides a sustainable alternative to fossil fuel-derived CO2, offering industries a stable and green supply of this critical input.

Additionally, this creates a new economic opportunity. Industries can monetize surplus renewable energy by investing in DAC, addressing their businesses’ CO2 needs. By tapping into surplus renewable energy, businesses can transform this current liability — excess energy — into an asset that supports decarbonization while ensuring the reliable supply of green CO2 for industrial use. 

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