Good morning.
The energy transition is a battle fought through electrons and molecules. We want green electrons, electricity generated by wind, sun, or waves instead of, say, coal. And we want to store energy in green molecules such as ethanol, hydrogen, or ones made from food waste. I recently boarded a Japan Airlines flight that was powered by sustainable aviation fuel (SAF) created from used cooking oil. Fry to fly!
Honeywell CEO and chairman Vimal Kapur thinks a lot about green molecules. His company is a pioneer in the technology that produces SAF. As Kapur recently told me: “You can’t run a plane on electricity.” (Not yet, perhaps, although Germany’s H2FLY conducted the world’s first piloted flight of an electric aircraft powered by liquid hydrogen.) That’s why he has Honeywell focused on creating SAF and carbon-free molecules like green hydrogen as part of the solution in achieving the energy transition.
It’s not the only area where Honeywell plays. Since taking the top job last year, Kapur has aligned the industrial giant’s portfolio around automation, the future of aviation, and the energy transition. Yesterday, Honeywell announced the acquisition of Air Products’ liquefied natural gas (LNG) process technology and equipment business for $1.8 billion. It’s his fourth major acquisition in eight months. While LNG isn’t what you’d call clean energy, it produces fewer carbon dioxide emissions than coal and oil, which makes it an important bridge in what Kapur calls the decarbonization journey.
Honeywell can also use LNG to produce hydrogen and carbon dioxide, the latter of which it can capture, liquefy, and ship to oil companies that can reuse it. The issue isn’t just the technology but the cost: making it feasible for others to do the right thing. “The energy transition is not easy and it’s not cheap,” said Kapur. “We are solving economic problems.”
Creating a business case around the move to a low-carbon economy is the essence of sustainability. If you’re looking to share your approach and learn from others, consider joining the Fortune Impact Initiative, held in conjunction with our partners at EVERFI from Blackbaud. We will meet on Oct. 8 and 9 in Atlanta for conversations led by Kristin Stoller and my other newsroom colleagues. You can learn more here.
More news below.
Diane Brady
diane.brady@fortune.com
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TOP NEWS
Intuit layoffs
Intuit, the developer of products like QuickBooks and TurboTax, is laying off 1,800 employees, or 10% of its global workforce. CEO Sasan Goodarzi claims the job cuts will help the company focus more on AI, such as its financial assistant Intuit Assist. The company still expects its headcount to grow in the coming fiscal year. Fortune
Tesla is back in the Magnificent Seven
Tesla’s shares have erased their losses so far this year, thanks to second-quarter deliveries that exceeded (low) expectations. Investors are snapping up Tesla stock even after the company slipped below a 50% share of the U.S. EV market. Tesla is scheduled to reveal the Cybercab, a robotaxi, on Aug. 8. Fortune
Japan’s travel boom
Tourism is now Japan’s second-largest export, thanks to the weak yen, post-COVID revenge travel, and “Instagram culture.” If current trends continue, Japan is set to exceed the record for yearly visitors, 31.9 million in 2019. But the travel surge is sparking a backlash among Japanese fed up with overcrowding and bad manners, and cities in Japan are considering restrictions and more expensive prices to manage the crowds. Fortune
AROUND THE WATERCOOLER
The European VC wunderkind behind Mistral, Revolut and Slack just raised $2.3 billion and predicts the AI revolution is only in ‘the earliest innings’ by Prarthana Prakash
GoFundMe CEO Tim Cadogan is revolutionizing crowdfunding with a conscience, securing over $30 billion for 'good causes' since 2010 by Peter Vanham
Welcome to ‘The Great Detachment’: Workers are checked out—and so are their bosses by Chloe Berger
Deutsche Bank and HSBC are winning Europe’s AI talent war as the U.K. strikes back against the U.S. by Ryan Hogg
AI has destroyed Google’s promise of carbon neutrality, with emissions rising 50% over the last five years by Eva Roytburg
Klarna’s CEO learned valuable leadership lessons on a Toyota factory floor by Fortune Editors
This edition of CEO Daily was curated by Nicholas Gordon.
