Innovation is the linchpin of the transition to clean energy. To reach net zero in time, we need breakthroughs in every sector. The dual challenge is to scale those solutions already in hand, and also to land the ones where we’ve yet to crack the code. We need both the now and the new.
For innovative technologies to attain mass adoption, they must do more than reach price parity with legacy products and processes. To disrupt the status quo, they need to achieve a clean discount, where they flat-out beat the high-carbon alternatives on cost.
In terms of progress, our nine Key Results fall broadly into two tiers. With electricity and EVs, we’re well on our way to a clean discount or already there. In leading markets, solar and wind are producing electricity at less than 4 cents per kilowatt-hour, within reasonable distance of our 2050 target. In the second group, which includes industrial heat, steel, cement, hydrogen, and fertilizers, we’ve made little or no headway to date. For example: Despite recent progress, green ammonia, the cleanest nitrogen-based fertilizer, still costs two to three times as much as conventional ammonia.
Beyond funding by governments, venture capital, universities, and philanthropies, one important tool for driving innovation is advanced procurement. By stimulating early demand, we can keep startups afloat as they incubate the next breakthrough.