The Crisis Forcing An Energy Revolution | Ep268: Jonathan Maxwell

The UK is heavily exposed to global energy markets and has some of the highest electricity prices in Europe. At the same time, vast amounts of heat generated across industry and infrastructure go unused. Whether it should be called "waste" is a matter of debate, but could making better use of the energy we already produce be one of the biggest untapped opportunities in the energy transition? This week, Michael Liebreich is joined by Jonathan Maxwell, founder and CEO of SDCL, a specialist investment firm focused on energy efficiency. They explore why energy efficiency should be treated as a strategic resource, why “waste” heat could become one of Europe's most overlooked energy resources, and how Europe and the UK can strengthen its energy resilience following renewed tensions in the Strait of Hormuz.   They discuss the economics of gas versus electricity, the rapid growth of AI-driven data centres and their power requirements, and how long-term infrastructure investment can help build a more resilient, affordable and efficient energy system. **Topics covered in this episode:** - The Strait of Hormuz and Europe's energy security - The UK's energy system and the cost of electrification - Gas versus electricity pricing - Debating “waste” heat and energy efficiency - AI, data centres and growing power demand - Powering and cooling next-generation infrastructure - Infrastructure investment and portfolio management - Europe's energy transition beyond the AI boom **Leadership Circle:** Cleaning Up is proud to be supported by its Leadership Circle. The members are Actis, Alcazar Energy, Arup, Copenhagen Infrastructure Partners, Cygnum Capital, Davidson Kempner, EcoPragma Capital, EDP, Eurelectric, the Gilardini Foundation, KKR, Mitsubishi Heavy Industries, National Grid, Octopus Energy, Quadrature Climate Foundation, Schneider Electric, SDCL and Wärtsilä. For more information about the Leadership Circle, visit cleaningup.live **Links**: - Jonathan Maxwell’s bio: https://www.linkedin.com/in/jonathan-maxwell-a121a533/ - Jonathan on Cleaning Up 2024: https://www.youtube.com/watch?v=vN2YWPqBPHk - Jonathan on Cleaning Up 2023: https://www.youtube.com/watch?v=1OTbyOxYUpg - Jonathan on Cleaning Up 2020: https://www.youtube.com/watch?v=Wqrtr2lePM8 - Jonathan’s substack: https://jonathanmaxwell.substack.com/ - The Edge by Jonathan Maxwell: https://the-edge-book.com/product/the-edge-by-jonathan-maxwell/ - SDCL: https://www.sdclgroup.com/ - Ed Conway on Cleaning Up: https://www.youtube.com/watch?v=VhvEExdYeEU - Robert Dunn on Cleaning Up: https://www.youtube.com/watch?v=juAyLAUmU3w - Subscribe to our newsletter: https://cleaninguppod.substack.com/ **Acronyms:** - LNG: Liquified Natural Gas - JCPOA: Joint and Comprehensive Plan of Action - CHP: Combined Heat and Power - PUE: Power Usage Effectiveness - CCHP: Combined Cooling Heat and Power - EBITDA: Earnings before interest, taxes, depreciation, and amortisation **Chapters**: - 00:00 - Europe's Energy Security - 05:11 - Strait of Hormuz Impact - 15:39 - Electrifying the UK - 23:14 - Gas vs Electricity - 28:56 - Waste Heat Debate - 32:14 - Powering Data Centres - 42:20 - AI Investment - 46:42 - Cooling Data Centres - 52:16 - Managing Energy Assets - 01:06:47 - Outro