Climate Issues

in
Business
Week 2-3 Recap
Key Terms and Definitions

Dr. Cankut Kaan Bolat

Dr. Selin Özokcu
 Energy Ethics Climate Economics

The Earth System Climate Change

Adaptation Mitigation

Climate Technologies Social Acceptance

Rebound Effect Kyoto Protocol

Paris Agreement UNFCCC, IPCC, COP

Cankut Kaan Bolat
The Seven Sisters Carbon Footprint

First Transition Energy Security

Oil and Gas OPEC

Energy Sector Global Economy

Climate Change Climate Technologies

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 Climate The Need
Change of Energy
THE FUNDAMENTAL PROBLEM OF THE FUNDAMENTAL PROBLEM OF
OUR CENTURY OUR CIVILIZATION

Long-term modification of climate patterns; can be Oil and gas as the conventional energy resources.
caused by human activities and natural variations.
Renewable energy capacity to reach 4800 GW in
Almost every developed country declared their net 2026, which is equal to total fossil and nuclear
zero targets until 2050, with Türkiye having pointed capacity today.
out 2053 for our net zero emissions.
Renewable energy growth to dominate the total
European Commission’s Fit for 55 aim to reduce energy growth in the near future, with a share of 95%
GHG by 55% until 2030, compared to 1990 levels. between the years 2022 - 2026.

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 Climate Technologies
A BRIEF LOOK

WHAT IS IT? RENEWABLES AND ENERGY STORAGE

Technologies and services to decarbonize the global Changing the fossil fuel perspective
economy
Intermittency is the ultimate bottleneck
Products and services to mitigate and adapt to the effects
of climate change

CLEAN HYDROGEN CARBON CAPTURE, REMOVAL AND USAGE

An alternative fuel for the need of energy Methane, nitrous oxides, water vapor, flourocarbons

A key element in green transition Carbon is the ultimate GHG

From DAC to NBS, a variety of approaches

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Climate Issues
in
Business
Week 4
Innovation in Energy Technology:
Renewables and Energy Storage

Dr. Cankut Kaan Bolat

Dr. Selin Özokcu
Energy Electricity

Cankut Kaan Bolat

 Energy Electricity
THE ABILITY TO DO WORK THE DEVICE POWERING ENERGY

The main input for development of a civilization A specific form of energy

(i.e. Kardashev’s Scale of Technological Advancement) (Generated by converting other energy forms)

Exists in various foms: Mechanical, chemical or solar energy can be transformed

Heat, light, motion, chemical into electricity

Can be found in different sources: Electricity is then used to power our devices, lighting and
Fossil fuels, nuclear, solar, wind other appliances

Cankut Kaan Bolat

Source: US Department of Energy

 Green Transition
FROM FOSSIL TO RENEWABLES

INNOVATION AND SUSTAINABLE ENERGY ENERGY SECTOR AND CHALLENGES

Industral revolution and coal for electricity The problem with large scale renewable integration

Increased energy demand, expansion of mining Transition from centralized to decentralized

Critical technologies and meeting the global demand Importance of smart grids and energy storage

DRIVING INNOVATION MARKET POTENTIAL

Venture capital investments and government incentives Rapid market growth in renewables

Making innovation necessary with policy Chance for long term profitability with carbon neutrality

Cost competitiveness compared to fossil fuels Advanced energy storage solutions as a service

Source: International Energy Agency, BP Statistical Review of World Energy, World Economic Forum Cankut Kaan Bolat
Renewable Energy
Energy Storage

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Source: US Department of Energy
 Renewable Energy
Energy Storage
THE INTERMITTENCY DILEMMA THE LONG DURATION APPROACH

Sun does not shine and wind does not blow 24/7 Long duration energy storage can be a solution to this

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Source: US Energy Information Administration

 Renewable Energy
Energy Storage
THE INTERMITTENCY DILEMMA THE LONG DURATION APPROACH
Sun does not shine and wind does not blow 24/7 Long duration energy storage can be a solution to this

Market Growth Solid State and Flow Batteries

Global renewable capacity is expected to grow 2.7 times by Flow batteries for stagnant applications, solid state batteries
2030, almost hitting the target of tripling, set at COP 28 for grid stability, renewable integration and electric vehicles

New Business Models The Energy Export Dream

Energy as a service for emissions reductions, and Countries with abundant renewable resources can position
microgrids for energy reliability themselves as energy exporters

Government Incentives and Subsidies Corporate Sustainability Commitments

Tax credits for solar installations, feed-in tariffs and carbon Industry and major corporations are transitioning to 100%
pricing mechanisms to provide financial incentives renewables, creating a large demand

Cankut Kaan Bolat

Source: International Energy Agency

Source: World Energy Outlook 2024
Source: IEA Renewables 2024
Source: IEA Renewables 2024
Source: IEA Renewables 2024
Source: IEA Renewables 2024
 ENERGY STORAGE

The process of capturing energy, and using it later

Crucial for energy supply stabilization -> energy security

The key is the storage optimization; storing during low demand or high
production

Can be used in phones, laptops, electric vehicles, buildings, plants

Can be small scale, large scale, grid scale, and seasonal

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 MECHANICAL ENERGY STORAGE
Pumped Hydro Storage
Using excess electricity to pump water to a higher elevation and
storing potential energy
Water released through turbines to generate electricity, when
energy is needed
High capacity and high efficiency but requires certain geographic
conditions

Flywheel Energy Storage

Storing kinetic energy by spinning a rotor at high speeds
Flywheel slows down to convert kinetic energy to electricity, when
energy is needed
Good for short duration storage, can deliver rapidly
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 THERMAL ENERGY STORAGE
Molten Salt Storage
Used mainly in concentrated solar power plants, and high
temperature industrial applications
Effective for storing large amounts of thermal energy for several
hours
Gemasolar Plant, Spain: 15h electricity without sunlight

Ice Storage
Involves producing ice during off-peak hours
The ice is used to cool buildings during peak energy demand
Reduces the need for electricity for air conditioning
Calmac and ice banks for cooling buildings
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 POWER-TO-X STORAGE
Hydrogen Storage
Splitting water into hydrogen and oxygen via electrolysis, using
excess electricity
Storing hydrogen for later use in fuel cells
Potential for seasonal storage but insufficient infrastructure

Carbon Dioxide Storage

Transforming stored carbon dioxide to liquid form
Releasing the liquid to turbines and generating electricity

Very early stage, novel, risky and expensive technologies

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Energy Storage Technology Technology Readiness Level Application Areas Real Life Example

Pumped Hydro Storage 9 Large scale, stable grid Gökçekaya HES, 1.4 GW

Gravitational Storage 6-9 Renewable integration EVx China, 25 MW

Compressed Air Energy Storage 9 Electricity production Yingcheng CAES, China, 300 MW

Flywheels 7-9 Short duration, frequency regulation S4 Energy, The Netherlands, 3 MW

Smart Thermal Storage 4-9 Industry, residential heating Crescent Dunes, USA, 110 MW

Latent Heat Storage 1-9 Air conditioning, solar applications Dubai CSP, UAE, 700 MW

Thermochemical Storage 4-6 Waste heat, space applications

Supercapacitors 9 Electric and hybrid vehicles Osmose H2020, Spain

Superconductive Magnetic Storage 6-7 Power quality management

Power-to-X Storage 4-9 Transportation, industry

 ELECTROCHEMICAL ENERGY STORAGE
Lithium-Ion Batteries
The most common form; phones, electric vehicles, utility scale
applications
High energy density and efficiency
Degradation over cycles, ideal for short to medium duration

Flow Batteries
Storing energy in liquid electrolytes, containted in external tanks
Last longer compared to Li-ion and do not degrade as quickly
Suitable for large scale, long duration applications but have low
energy density

Next-Gen Solid State Batteries

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 LONG DURATION
ELECTROCHEMICAL ENERGY STORAGE
Solutions designed to extend conventional Li-ion batteries (i.e. LFP)

Storing energy for more than 10 hours, important for grid stability

A bridge between daily needs and seasonal storage

Balances the grid, smoothing out low generation periods and allowing
renewable penetration

Ideal for utility scale applications, covering up for multi-day weathering

events
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 LONG DURATION
ELECTROCHEMICAL ENERGY STORAGE
Supports energy arbitrage, allowing the producer to store during low
demand and sell at high demand

Lower efficiency but higher duration compared to lithium batteries

Less geographical dependence and higher flexibility compared to

mechanical storage methods

Paves the way for old school fossil fuel energy producers as well, in
addition to renewable technologies

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 Energy Storage Vanadium Redox
Li-Ion Na-Ion Ni-Cd Na-S
Technology Flow

Technology Readiness Global: 9 (NFP) Global: 8 Global: 7 Global: 9 Global: 8

Level Türkiye: 9 (NMC) Türkiye: 5 Türkiye: 4 Türkiye: N/A Türkiye: 3

Cost $311-519/kwh for NFP $296-377/kwh for > 24h $77/kwh (CATL) $450-850/kwh $450/kwh

Gravimetric Energy
75-250 Wh/kg 10-35 Wh/kg 160-200 Wh/kg 50-75 Wh/kg 150-240 Wh/kg
Density

Roundtrip Efficiency (%) 96% 70-85% 80% (CATL) 60-70% 80-90%

20 years and 10000

Cycle Life 1000-3500 cycles 1000 cycles 1500-2500 cycles 4000 cycles
cycles (Everflow)

Operational Requires thermal High initial costs, low Not suitable for low Self discharge, toxic High production costs,
Disadvantages management efficiency temperatures, heavy ingredients recycle costs

Supply Access Very hard Very hard Hard Very hard Hard

Lithium hydroxide,
Main Critical Element Vanadium - Nickel, cadmium -
graphite

Source: Technology Development Foundation of Türkiye, 2022

Source: Autobot India
Source: Pham et al. (2022)
Source: IEA Batteries and Secure Energy Transitions 2024
Source: IEA Batteries and Secure Energy Transitions 2024
Source: IEA Batteries and Secure Energy Transitions 2024
Source: IEA Batteries and Secure Energy Transitions 2024
Source: IEA Batteries and Secure Energy Transitions 2024
Source: IEA Batteries and Secure Energy Transitions 2024
 ENERGY STORAGE: SUMMARY
Battery sector was the fastest growing commercial energy technology
in 2023, more than double deployment year on year

42 GW utility scale battery deployment in 2023 globally

40% increase in electric vehicle battery deployment, 14 million new

EVs in 2023

Energy sector accounts for 90% of total Li-ion battery demand today,
compared to 50% in 2016, and market size increased 10x

45 million total EVs in the world, 85 GW total battery storage

Source: IEA Batteries and Secure Energy Transitions 2024 Cankut Kaan Bolat
 ENERGY STORAGE: SUMMARY
90% cost reductions in lithium batteries since 2010, allowing them to
outlast alternatives

Price decline from 1400 USD/kwh (2010) to 140 USD/kwh (2023), one
of the fastest declines in any energy sector ever

Much higher energy densities, much lighter and more compact stacks
compared to lead acid alternatives

Lithium domination in storage; LFP technology to rise to 40% in EVs and

80% of new battery storage in 2023

Source: IEA Batteries and Secure Energy Transitions 2024 Cankut Kaan Bolat
 ENERGY STORAGE: SUMMARY
Over half of all battery use in the energy sector is performed by China

Followed by the EU, the US and the UK, Korea and Japan

400 million in Africa gained access to electricity with solar home

systems and mini grids

Over half of global raw material processing for lithium and cobalt, and
85% of total battery production is governed by China

Europe, the US and Korea each hold 10% or less of the supply chain for
some battery metals and cells

Source: IEA Batteries and Secure Energy Transitions 2024 Cankut Kaan Bolat
Source: IEA Batteries and Secure Energy Transitions 2024
Source: IEA Batteries and Secure Transitions 2024 Cankut Kaan Bolat
Source: IEA Batteries and Secure Transitions 2024 Cankut Kaan Bolat
Source: IEA Batteries and Secure Transitions 2024
 Energy Energy
Storage Security

Cankut Kaan Bolat

Source: IEA Batteries and Secure Transitions 2024
 Energy Energy
Storage Security
KEY TO TRANSITION KEY TO NATIONAL SECURITY

Demand for critical minerals expected to increase sixfold: Where are the largest reserves on these minerals located?
Lithium, cobalt, nickel, manganese, graphite Chile, Australia, Indonesia, Congo, South Africa and China

Important for grid stability, which is the key to increasing Who operates the mines for these minerals?
renewable use China either dominates or is a major player

Helps achieving the targets of the NZE commitments, Who has the largest control over global supply chains?
gives political advantage in climate policies framework e.g. 80% of cobalt is refined in China (ING Newsroom, 2023)

Helps diversifying the energy mix, hence decreasing China dominates 85% of the global battery cell production
import dependency and increasing energy security Where does it leave the security perspective?

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Source: International Energy Agency, BP Statistical Review of World Energy

Source: IEA Batteries and Secure Transitions 2024
 Battery Battery
Market Market
WORLD TÜRKİYE

Total volume of 2400 Gwh globally, fourfold increase National Energy Plan states a target of 2.1 GW storage
since 2020 capacity for 2030, and 7.5 for 2035

EVs accounted for 90% of total battery use, annual 120 GW renewable capacity for 2035, $80B renewable and
volume more than 750 Gwh $28B infrastructure investment (Bayraktar, 2024)

Over 40 GW addition in 2023, 65% for utility scale 32 GW battery integrated renewable capacity authorization
projects by EMRA (EPDK, 2024)

Global investment increased 8x in EV applications, and Expected 7.2 GW total capacity modeled, 6.9 Twh
5x in battery storage decrease in disruptions and 11.7 Twh in consumption

$150B total investment in 2023, $115B being EV Expected $369M decrease in natural gas imports, 2.3 Mt
technologies emissions decrease (Shura, 2024)
Cankut Kaan Bolat

Source: International Energy Agency, EMRA of Türkiye

Source: Ministry of Energy and Natural Resources of Türkiye, 2024
 REFERENCES
MINISTRY OF ENVIRONMENT, TECHNOLOGY DEVELOPMENT
URBANIZATION AND CLIMATE FOUNDATION OF TÜRKİYE
CHANGE IN TÜRKİYE Long Duration Energy Storage Deep Dive Report:
Strategy and action plans of the Presidency of
Climate Change: https://ttgv.org.tr/media/2024/01/65095cdf956
20.pdf
https://iklim.gov.tr/eylem-planlari-i-19

INTERNATIONAL ENERGY AGENCY ENERGY ECONOMICS JOURNAL

World Energy Outlook 2024 Is there a macroeconomic carbon rebound
effect in the EU ETS?
https://www.iea.org/reports/world-energy-
outlook-2024/executive-summary#abstract https://www.sciencedirect.com/science/articl
e/pii/S0140988323003778

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