Climate Crisis AM 2/8/2024 Wind Energy Implodes
There is growing evidence that the costs of building wind energy facilities remain too high to boost the profits of companies in the sector. This has also made it hard for the sector to access capital. Industry giant Ørsted posted poor earnings, cut its divisions, fired nearly 1,000 people, and cut back its footprint in several places where it built facilities. Semafor states, “Top wind energy companies posted mixed earnings results, with profits beating Wall Street expectations — but executives warn that the industry isn’t out of the woods yet.” While public companies may have access to capital, the risk of failure and high capex in the industry mean that private venture-funded companies will have ongoing problems raising money for their projects. Interest rates for capital for these projects are likely to remain extremely high.
More climate trouble in US property damage
The dangers for ships that plan to use the Suez Canal as the shortest route for container ships and tankers going from Europe to Asia have hit earnings at one of the largest shipping companies in the world. Maersk gave investors a gloomy outlook for this year because of worries its ships will need to go around Africa’s Cape of Good Hope, which adds thousands of miles to their journeys. EBITDA could be as low as $1 billion this year compared to $9.6 billion in 2023. It is another example of how Yemen’s Houthi rebel attacks, which cause danger for Maersk, will lift costs, including increased insurance and fuel needed to send ships on longer routes. The news also confirms that supply chains could tighten, as ships take as much as two weeks longer to get to their destinations when they are rerouted.
California Flood Research
The risk of massive floods in California due to weather is rising. That is no surprise, but scientists have done expensive research to prove it. Science Advances published a paper titled “Climate change is increasing the risk of a California megaflood.” The authors wrote, “Using the data from the Community Earth System Model Large Ensemble, we find that climate change has already doubled the likelihood of an event capable of producing catastrophic flooding, but larger future increases are likely due to continued warming.” As if current conditions were not enough to prove the point. An atmospheric river, often called the Pineapple Express, has brought huge amounts of water from the warming Pacific near Hawaii, and this has caused massive flooding and high winds to Caiforman. It is similar to storms during the same period in 2023.
Elon Musk’s SpaceX has launched a rocket to carry a $948 million NASA satellite that will make observations about climate patterns. The satellite is called The Plankton, Aerosol, Cloud, ocean Ecosystem Mission — PACE. According to CBS News, “PACE is expected to provide high-precision data allowing researchers to fine-tune computer models, giving policy makers more accurate information about ongoing trends and long-term threats. It will also provide real-time measurements of aerosol movement through the atmosphere, plankton health and carbon transport.” It is another example of how climate experts hope to use highly sophisticated instruments to measure climate change. The problem is there is no evidence that the data will change the behavior of nations, companies, or individuals.
