Indonesia is upping its EV game: Indonesia is reportedly planning additional tax incentives to lure global EV producers to the country, Bloomberg reported on Friday, citing people with knowledge of the matter. The sources say the Indonesian government has agreed to offer 0% export duty and VAT exemptions to EV producers that set up shop on shore. They said potential investors will be allowed to import cars to sell domestically, but they must set up a factory within two years or face penalties still being outlined by the government. These decisions are subject to changes before a formal announcement, according to the sources. The incentives come as Indonesia tries to catch up with neighboring countries like Vietnam, the Philippines, and Thailand for a share of the global EV supply chain. It has been in talks with US company Tesla in recent years to set up on shore, while leading EV producer BYD signed an agreement in May to explore investments, although no actual moves on investing are yet in sight.

A push in the US to scale up DAC: The US Department of Energy (DOE) will provide over USD 1 bn in federal grants for projects in Texas and Louisiana aimed at removing over 2 mn metric tons of carbon emissions annually by scaling up direct air capture (DAC) technology, Reuters reported on Friday. The DOE selected Louisiana’s Project Cypress run by Batelle, Climeworks Corporation and Heirloom Carbon Technologies and the South Texas DAC Hub proposed by Occidental Petroleum’s subsidiary 1PointFive and partners Carbon Engineering and Worley. The move comes under a wider plan to deploy DAC, which could help the country meet its target of neutralizing greenhouse gas emissions by 2050, according to the DOE.

SOUND SMART- DAC technology refers to the removal of CO2 directlyfrom the atmosphere at any location, rather than carbon capture which is generally absorbed at the point of emissions. Carbon dioxide removed under DAC technologies can be permanently stored in deep geological formations or be utilized in various applications.

DAC could be happening in the region: State oil giant Abu Dhabi National Oil Company (Adnoc) signed a strategic collaboration agreement with Occidental Petroleum earlier this month to explore potential investment opportunities in carbon dioxide capture and storage (CCS) hubs in the UAE and US. Under the agreement, Adnoc and Occidental will evaluate the development of direct air capture (DAC) facilities in the UAE — including what could be the first megaton DAC project outside of the US — to potentially absorb as much as 1 mn tons of carbon dioxide annually. Adnoc will also explore the possibilities to participate in several DAC and CO2 sequestration facilities in the US that are currently being developed by Occidental’s subsidiary 1PointFive.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Singaporean firm to build a US solar panel factory: Maxeon Solar Technologies will build a 3 GW, USD 1 bn solar cell and panel factory in the US. The company is considering a plan to up the plant’s production capacity to 4.5 GW, and will make a final investment decision later this year. (Reuters)
  • EV company Zeekr launches a sports car: Geely-owned EV brand Zeekr is launching its first luxury sports car within weeks, with the first batch to be delivered later this year. The car will sell for over CNY 1 mn (USD 140k). (Reuters)
  • Rainforest nations demanding rich countries fulfill pledges: A dozen rainforest countries have formed a pact calling on developed nations to meet an existing pledge to provide USD 200 bn per year for biodiversity preservation and USD 100 bn annually in climate financing. (Reuters)
  • Adani ready to go in alone on hydrogen mega-project: Gautam Adani — founder and chairman of Indian conglomerate Adani Group — said he is still prepared to invest bns of USD to develop the green hydrogen sector in India after French oil-giant TotalEnergies recently pulled the brakes on a plan to buy 25% of Adani New Industries pending investigation into fraud allegations. (Bloomberg)
  • China emissions hit new record: China recorded a 10% y-o-y rise in its emissions in 2Q, up 1% from record levels in 2021 on the back of increased reliance on coal to make up for weak hydropower output following a historic drought last summer. (Carbon Brief)
Tags: