6. Breakthrough Energy Catalyst Program Overview
Breakthrough Energy Catalyst
Program Overview
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BREAKTHROUGH ENERGY OVERVIEW
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BE CATALYST
Technologies to Reach Net-Zero Emissions
Getting to net zero requires a broad set of technologies and only some of those technologies are ready for cost-effective deployment.
Global emissions (100-year GWP) Technologies that could make a difference
These technologies typically
51
Direct air capture fall into one of two challenge
Other (CH4, Meat substitutes categories:
N2O, HFCs) 12 Cow methane reduction
Green ammonia
Agriculture 1. Implementation
1 Heat pumps
Buildings 3 challenge: Scaling cost
Building energy efficiency
4 effective solutions,
Deforestation Low carbon steel
where the key challenge
Low carbon cement/alternative building materials
Plastic recycling is coordinating and
emissions Industry 11
Renewable hydrogen speeding deployment on
CO 2 Renewables the global scale.
Long duration energy storage
Power 12 Bioenergy with carbon capture and storage (BECCs) 2. Innovation challenge:
Perovskite solar cells Decreasing cost of new
Small modular nuclear reactors climate technologies by
Transport 8 Electric vehicles funding early deployment
Sustainable aviation fuels to drive technologies
2016 emissions Batteries down their cost curves.
Gt CO2e/year
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BE CATALYST
Getting the Next Set of Climate Technologies to Scale
There is a gap in incentivizing actions to broadly commercialize the next set of climate technologies. We have systems in place to recognize
companies and individuals for technologies that are ready to deploy, but no systems to bring the new technologies we’ll need to that point.
Two types of actions needed to reach net zero
1. Implementation challenge: 2. Innovation challenge: Insufficient incentives
Scaling cost effective climate Decreasing cost of new climate for supporting early
technologies technologies commercial techs
has led to slow
Status There are systems in place that There are insufficient systems in place to scaling of critical
incentivize and recognize implementation of give recognition for reducing cost of techs emissions reducing
readily available, cost effective solutions. that aren’t yet ready for implementation. technologies.
Example Impact If we don’t start
systems and quantification recognizing
recognition and reporting companies for
Insufficient systems and deceasing the cost of
new technologies, we
Recognition recognition will run out of cost
Supporting effective solutions
products RECs Offsets and progress to netzero
will stall.
Example - Energy - Solar - Hydrogen - Long duration
technologies efficiency - Electric - Sustainable energy storage
- Wind Vehicles aviation fuel - Direct air capture
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BE CATALYST
Addressing the Innovation Challenge: The Green Premium
The green premium is the difference in price between a fossil technology and its low carbon alternative. It is a metric that can help us
measure the progress we’ve made toward addressing climate change and understand where we still have barriers to overcome.
Low Green Premium Example High Green Premium Example
Electric Vehicles Sustainable Aviation Fuel
Electric vehicles are Low carbon fuels, which
reaching cost parity with will be required to
internal combustion decarbonize aviation,
engines. We compared shipping, and heavy duty
the total cost of ownership trucking, still have a very
of the EV Chevy Bolt to a high green premium.
Chevy Malibu.
Price Breakdown: The
Price Breakdown: The cost per gallon of jet fuel
average cost per mile in relative to advanced
US cents assuming a 7% biofuels (e.g. HEFA) and
cost of capital, 8-year electrofuels (e.g. power to
depreciation, 12,000 miles liquid).
driven per year.
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BE CATALYST
Breakthrough Energy Catalyst
The goal of Breakthrough Energy Catalyst is to build projects that help the next set of critical climate technologies reach
scale, eventually catalyzing the replacement of fossil-based technology with low carbon alternatives.
Key Program Components Impact for Contributors
Increasing supply of technologies that enable
01 transitions to low carbon business models
Increased production for cost competitive clean
technologies will help financiers and large emitters
transition to low carbon business models.
Creating demand for technologies needed
Deploy capital to buy
Build coalition and Raise to reach emissions commitments
down the green 02
partnerships capital Projects will provide opportunities for corporate
premium buyers to procure products that allow them to
Assemble the necessary Solicit contributions from Use capital to fund reach their emissions commitments.
partnerships to make the philanthropy, government, projects across a set of Recognizing climate leadership
project a success (e.g., corporates, and individuals priority technologies and
with control point partners enable market penetration 03 A new methodology, the catalyzed emissions
in the value chain) reduction framework, will recognize leadership on
funding climate technology deployment based on a
rigorous calculation methodology.
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BE CATALYST
Technology Focus Areas
Green hydrogen, SAF, DAC, and LDS have been prioritized as initial focus areas for BE Catalyst.
Selected technologies Key selection criteria
We have prioritized these three technologies for the BE
Sustainable aviation fuel (SAF) Catalyst program because:
— The technology can play a critical role in a net zero
future, but cost is currently too high.
Green Hydrogen — A modest amount of deployment funding can
dramatically reduce cost because the technology is
at the appropriate stage in the deployment cycle: past
Direct Air Capture (DAC) R&D but before major investment has already matured
project development.
Long Duration Energy Storage (LDS)
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BE CATALYST
Key Program Components
Contributors will aggregate capital into a pooled fund. Breakthrough Energy will allocate funding to projects with highest
potential for impact.
Contributing Funds Aggregating Capital Funding Projects Measuring Impact
Corporate 8 Green Hydrogen Projects Breakthrough Energy Catalyst
Contributors will measure impact in terms of
7 SAF Projects long-term ‘catalyzed emissions
Companies will contribute Breakthrough
reductions.’
dollars to the program fund, Energy Catalyst
which will distribute capital Program Fund 4 Direct Air Capture Projects
Contributors will be recognized
to projects in priority
technology areas. 15 based on the long-term climate
LDS Projects impact of their contributions.
Example Project: Sustainable Aviation Fuel in the Pacific Northwest
SAF green premium in Washington ($/L) $250 - $350M
1.00 for a SAF plant that
Governments Individuals Philanthropy 0.53
0.33 produces ~100M
0.14
Other contributors will aggregate funding liters per year
to help buy down the green premium. Total Cost Kerosene Federal RFS Green premium
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