[HN Gopher] Energy economics and rocket science with Casey Handmer
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       Energy economics and rocket science with Casey Handmer
        
       Author : vikrum
       Score  : 32 points
       Date   : 2024-08-18 18:33 UTC (4 hours ago)
        
 (HTM) web link (www.complexsystemspodcast.com)
 (TXT) w3m dump (www.complexsystemspodcast.com)
        
       | wesleyd wrote:
       | Listened to this yesterday. Super enjoyable. Made the point that
       | electricity in the future will be consumed much closer
       | geographically to where it is generated than today - and so we
       | probably don't need huge interconnects - but much less close in
       | time (because batteries).
        
       | aesch wrote:
       | Casey Handmer's company is creating synthetic hydrocarbons from
       | renewable energy. Here is a good video where he gives a tour of
       | the company and talks about its goals:
       | https://www.youtube.com/watch?v=NngCHTImH1g.
       | 
       | Curious what people think about the idea of synthetic
       | hydrocarbons? It is a seemingly obvious idea that I hadn't heard
       | about until recently, as long as you can use energy efficiently
       | to create the synthetic hydrocarbons.
        
         | churchill wrote:
         | Synthetic hydrocarbons will likely fail, simply because of the
         | same reasons vertical farming failed. Once you're spending
         | money on infrastructure to capture solar energy, losing 80% to
         | inefficiency, before piping into your vertical farm via LEDs
         | (losing another 50% to 80%), a farmer who draws free sunshine
         | will outcompete you because he's using free energy while you're
         | spending millions to power a small factory sized farm; energy
         | isn't free.
         | 
         | Likewise, Casey's idea (Terraform Industries) requires solar
         | energy to convert air and water to natural gas. It'll cost 10x
         | the price of the gas Qatar & Saudi Arabia pump out of the
         | ground essentially for free. These technologies won't be viable
         | until humanity is pressed harder and prices (for food or fuel)
         | climb.
        
           | schiffern wrote:
           | Inevitably the solution to the anti-profitability of running
           | (essentially) a gas power plant in reverse is government
           | subsidies. Amazing how otherwise "efficient market" folks can
           | forget market wisdom the moment big change is needed in big
           | industries.
           | 
           | The touted advantage is that instead of market-driven
           | electrification of multiple sectors you only need one big
           | silver bullet technology, however these are futile systems
           | that actually _reduce_ the total amount of energy available
           | to society (vs electrification which does the opposite). And
           | since the pricing signals are messed up by subsidies you can
           | 't invest in the economically optimal amount of energy
           | efficiency. This is precisely the opposite of the sort of
           | activity we might want to subsidize.
           | 
           | Handmer has some great writing on space subjects, but on this
           | we're going to disagree.
        
           | d_burfoot wrote:
           | The analogy to vertical farming is a tempting one, but
           | ultimately misleading. There is a crucial difference between
           | TI-produced natural gas and Saudi-produced gas: the former is
           | carbon neutral, the latter isn't.
           | 
           | For every molecule of CH4 TI creates, they're pulling a
           | molecule of C02 out of the atmosphere to do it. When you burn
           | a CH4 molecule from a Saudi well, you're moving carbon from
           | the ground into the atmosphere.
        
             | schiffern wrote:
             | This "crucial" difference makes no difference, because it
             | won't stop Saudi Arabia from pumping out gas.
        
             | churchill wrote:
             | Will you pay 10x for synthetic fuel? And if you do, for
             | moral reasons, you will be driven out of the market by
             | those burning cheaper fuel. Just like the cultured meat
             | startups have learned, established players won't let you
             | take away their subsidies and drive them out of business.
             | 
             | Big Oil has rivers of money to lobby and make sure carbon-
             | neutral fuel startups can't legislate them out of the
             | market.
        
               | megaman821 wrote:
               | There is probably a market for 2-4x more expensive
               | carbon-neutral aviation fuel. Most other fuel-consuming
               | vehicles are better off going in a different direction,
               | batteries or hydrogen fuel cells.
        
         | Retric wrote:
         | The problem with synthetic hydrocarbons isn't energy abstractly
         | its capital vs energy costs. The more hours per month of
         | electricity you want the more you end up paying on a per kWh
         | basis.
         | 
         | So if you're fine turning all the equipment off most the of
         | time you can get really cheap power, but having a 1 billion
         | dollar facility including its workforce doing nothing 70% of
         | the time is expensive. On the flip side if you want 24/7
         | operation you end up with much higher per kWh rates.
        
           | amelius wrote:
           | > having a 1 billion dollar facility including its workforce
           | doing nothing 70% of the time is expensive
           | 
           | We work normally only about 33% of a day.
        
             | immibis wrote:
             | Very expensive industrial facilities don't.
        
         | sien wrote:
         | There are a few companies doing it.
         | 
         | Prometheus Fuels is another, they have been on HN previously :
         | 
         | https://news.ycombinator.com/item?id=31264388
         | 
         | They have a cool website :
         | 
         | https://prometheusfuels.com/
         | 
         | There are some companies that want to use nuclear power , Valar
         | Atomics is one :
         | 
         | https://www.valaratomics.com/
         | 
         | The cost estimates seem to be 4-10 times as expensive as fossil
         | fuels.
        
       | mataslauzadis wrote:
       | Casey is awesome!!!
        
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       (page generated 2024-08-18 23:00 UTC)