We highlight a couple of themes today – one of which is the need for everything. One of the striking conclusions from Shell’s presentation last week was that the company is not putting its eggs in just one or two baskets, it is investing in almost everything – solar, hydrogen, biofuels, natural gas, physical carbon capture, and natural carbon capture through tree planting programs.
Bill Gates is focusing his investments on both carbon capture and hydrogen, suggesting that both are needed. This reflects an issue that we cover frequently in our ESG and climate work, which is that there is no silver bullet for anything and there will be roles for many different technologies either permanently or as part of the transition.
The headline on chemical recycling is a good case in point – it is not a silver bullet, but it will have a role in the treatment of waste plastic for which there is no obvious or economic mechanical recycling route. It will not be a very profitable business as you are essentially downgrading the value of the plastic to a fuel equivalent value – whether it ends up back in an ethylene plant or is used as a fuel.