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Orsted prefers to invest more in Taiwan and South Korea than in new markets in Asia.
Orsted, world's largest offshore wind developer will increase its investment in Taiwan and South Korea, where it already has projects. Instead of expanding into new markets in Asia a senior official at the company said on Monday. The Danish company has lost around 80% of the value of its stock market since its peak in 2021 due to rising costs, disruptions in supply chains and a loss of investor trust in offshore wind. Per Mejnert Kristensen is Orsted's Asia-Pacific President. He spoke on the sidelines at the Energy Asia2025 conference. Orsted, which is the largest offshore developer in terms of capacity, retracted its 2030 target of 35-38 gigawatts of installed renewable capacity this year. Chief Executive Rasmuserrboe now faces the challenge to revive investor confidence and meet the new realities of offshore wind industry. The company has 10 gigawatts of offshore capacity worldwide, including 0.9 in Taiwan. The company has also developed projects in South Korea, Australia and other countries. We know we live in a changing environment. Kristensen added that "we need to see clearly investmentable projects" and he hoped that other Asian countries would follow the policies of Taiwan's government. They have excellent wind conditions for offshore winds. Because they have shallow water, you can build fixed-bottom offshore wind parks on the ocean. On the political front, they were very ambitious and had a clear vision. They then managed to create offshore wind frameworks which made projects investable," said he. He said that international investors and local partners could see clearly a path to investment for the next 30-40-50 year. He said that while the political ambition was there in some countries, it wasn't always translated into commercially viable frameworks. (Reporting and editing by Susan Fenton; Sudarshan Varadhan)
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Starmer: US-UK trade agreement to be completed "very soon"
Keir starmer, the British Prime Minister, said that the United States and Britain should "very soon" finalise the implementation of the trade agreement agreed last month. This was ahead of the meeting between Donald Trump of the United States in Canada. Starmer said to reporters at the Group of Seven (G7) Meeting that he would be meeting President Trump and discussing with him their trade agreement. "I am very happy that we have made that trade agreement. We are now in the final stage of implementation and I expect this to be completed very shortly." The United States and Britain reached an agreement on lower tariffs for Britain. Imports of UK vehicles are subject to lower tariffs Britain has agreed to lower tariffs for U.S. beef, ethanol, and aluminium. The deal was delayed until the details were finalised. The U.S. has agreed to reduce the 25% tariffs for steel and aluminum imports from Britain, to zero. However, a quota must be set up to ensure that British steel imports meet the supply chain requirements. Britain had Tariffs as low as 50% The U.S. has imposed tariffs on steel and aluminum on other countries this month. However, if a deal is not reached to reduce the tariffs by July 9, then the U.S. could increase the tariffs. Reporting by Suzanne Plunkett; Writing by Sachin Ravikumar and Alistair Smout, Editing by Kate Holton
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Debswana, a Botswana-based company, will approach the capital markets to finance Jwaneng underground Project
Debswana Diamond Company in Botswana is turning to the international capital market to fund its $6 billion Jwaneng Underground Project, said a director on Monday. The company's declining revenues have made it difficult to finance capital projects. Andrew Motsomi, managing director of the company, said that despite the decline in the global market for diamonds since the second half 2023, it is still pressing forward with its plan to convert its flagship Jwaneng Mine into an underground operation in order to extend its lifespan to 2054. This was revealed at a mining event in Gaborone, the capital. Debswana will reduce production by 27% between 2024 and 2025. Last week, the company announced that it would further reduce production by 16% in 2025 to 15 million carats. Debswana is a joint venture 50-50 between Botswana’s government and De Beers. It has previously funded its capital projects mainly with funds generated internally or from investors. Motsomi stated that the company was now working to acquire an international credit score to allow it access to capital markets. Motsomi did not specify how much money the company was looking for. "With revenues decreasing, the company faces escalating requirements for capital." Debswana anticipates an increase of capital expenditures from 5 billion pula (373.3 million dollars) per year for the last five years to 8 milliards pula per year over the next five years," he stated. Debswana began the underground Jwaneng project in May of last year, as open pit operations are expected to reach their limit by 2034. Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, also spoke at the conference. She expressed her optimism for a recovery in sales of diamonds starting in 2026. This will be supported by structural changes and long-term investments. Since January, the market has begun to show positive signs. "While we're not where we want to, the upward trend gives us hope that we can have a stronger recovery in the second half of the year," said she. ($1 = 13,4048 pulas). (Reporting and editing by Nellie Peyton, Alison Williams.
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TMC secures $85 million investment from Korea Zinc amid US mineral push
The Metals Co, a deep-sea miner, announced on Monday that South Korean refiner Korea Zinc would invest $85.2 millions. This will give the company a boost in its plans to supply vital minerals for the U.S. Energy Transition. The deal includes warrants that allow Korea Zinc to purchase more shares. TMC shares rose 7% during pre-market trading. TMC is seeking a U.S. license to harvest commercially polymetallic nodules on the seafloor. These nodules contain nickel, cobalt, copper and manganese, metals that are used in electric cars, grid infrastructure, and defense. Gerard Barron is the CEO of TMC. He said that Korea Zinc was the only company in the world capable of converting TMC USA materials into the metal products required by the United States. Both the Biden and Trump administrations are pushing to reduce China's reliance on these minerals. Korea Zinc is buying 19.6 million shares for $4.34 per share and receiving a 3-year warrant that allows them to buy 6.9 million at $7 each. TMC expects the transaction to close by June 26.
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Norway's parliament approves a new scheme of power subsidies for households
The Norwegian parliament passed on Monday a bill introducing fixed-price power contracts with subsidies for householders, which is the second scheme in the country to alleviate consumers' concerns about high and volatile power prices. Norway is holding a general elections in September. The cost of living, and the competitiveness of industry are expected to be key topics. The model, called Norway Price, offers consumers the opportunity to sign a contract with a fixed rate of 0.40 Norwegian crowns (0.041 USD) per kilowatt-hour (kWh), excluding fees. This initial period will run from Oct. 1, 2026 until Dec. 12. Payments are limited to 5,000 kWh/month per household and 1,000 kWh/month per holiday home. Norway Price aims to give consumers a predictable cost and is an alternative to the existing subsidy program introduced to respond to the rising costs during the energy crisis of 2022, which covers 90% all costs over 0.7 crowns/kWh. The new model is expected to be adopted by 60% of households in southern Norway and 80% holiday home owners. It could cost up to 6.6 billion crowns by 2026. Hydropower, which is abundant and inexpensive, has historically kept electricity rates low in Norway. Since the 2022 European energy crises, however, consumers in southern Norway who are connected to other European markets by cross-border cables have faced higher and more volatile costs. Former coalition partners Centre Party and Socialist Left have lent their support to the Norwegian Price law, introduced by the ruling Labour Party. The far-left Red Party also supports the law. The government's proposal, according to critics, was too expensive, took away power-saving incentives, and increased prices for those who were not eligible. This included businesses. ($1 = 9.8811 Norwegian crowns)
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Brent Oil Futures Structure Changes Due to Israel-Iran Conflict
Investors priced in the increased likelihood of Middle East supply disruption as they traded Brent crude futures contracts for first-month delivery and those for six-month delivery on Monday. Spread between Brent August contract and February 2026 contract On Monday,, the price of a barrel reached $6.00, just a little higher than the high of $6.95 on Friday. This was the highest price since October 2023. The spread was at its lowest level since December 2023, at a discount of 29 cents. Investors priced in an increased geopolitical premium for oil contracts that are due to be delivered after Israel struck targets in Iran on Friday. David Wech, Vortexa’s Chief Economist, said that the change in structure was a result of the spike at the front. The risk of disruption of the 18-19 million barrels of oil per day (bpd), which flow through the Strait of Hormuz, increases if the regional conflict between Israel & Iran intensifies. Janiv Shah, vice president for commodity markets at Rystad Energy, said that the Strait could squeeze up to 15 million barrels per day of crude oil exports, and 4 million barrels per day of product exports. This, in the current season of demand growth, may cause front-month accounts to fall into a deficit. The "backwardation", or the trading of contracts above those for future deliveries, is a common sign of tightening oil markets. Its opposite, "contango", signals a weaker market in the short term. Brent's front-end curve was already tightening as we entered the summer months in the northern hemisphere, albeit with a more shallow backwardated structure. Market participants anticipated a strong peak fuel demand, before a decline later this year, when OPEC, and non-OPEC, supply increases and demand decreases. The fact that the price of oil hasn't changed much in the past few months suggests that participants in the market do not expect the market to change over the long term. Vortexa's Wech added that a healthy fuel demand for the Atlantic Basin also contributed to the higher oil prices.
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MEG Energy board urges shareholders not to accept Strathcona’s $4.42 billion bid
MEG Energy, a Canadian oil company, urged Monday its shareholders to reject Strathcona Resources' hostile takeover bid of nearly C$6 Billion ($4.42 Billion), calling it inadequate and not in the best interests of their shareholders. The board launched a review of strategic alternatives to MEG's plan to become a separate company. Strathcona Resources, a Canadian oil and natural gas company, announced in May that it would launch a hostile bid to take over MEG Energy. Strathcona Resources valued MEG Energy's shares at C$23.27 each. MEG's closing price was C$25.71. MEG later advised its shareholders not to take any action regarding the unsolicited bid. Strathcona has been one of North America's fastest growing oil companies since 2020. Strathcona is owned by Calgary-based Waterous Energy Fund. MEG Energy stated that if the merger were to be completed, WEF would hold 51% of the combined company. This would allow WEF and its shareholders to gradually sell their ownership. The company stated in a press release that "this selling pressure or even the perceived threat of such pressure will immediately and significantly lower the share price of combined company over a long period of time." Strathcona Resources has not responded to a request for comment. (1 Canadian dollar = 1.3563 US dollars) (Reporting and editing by Pooja menon in Bengaluru)
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Residents are urged to leave the area as a wildfire rages.
On Monday, dozens of Greek firefighters battled to contain a wildfire which raged in a dense forest northeast of Athens and forced the authorities to order evacuations. With the help of 17 aircraft and 30 engines 120 firefighters were sent to Ano Souli village, located about 40 kilometers (25 miles), from Athens. Residents of Ano Souli and nearby Marathonas had to evacuate their homes. Greece, located at the southernmost tip of Europe, has experienced frequent floods and wildfires over the past few years. Scientists say that this has been made worse by a rapidly changing climate. The country spent hundreds of millions to compensate farmers and households for damages caused by extreme weather conditions and to acquire modern and advanced firefighting gear to combat wildfires that have grown more difficult to control due to rising temperatures in the summer. In anticipation of a challenging fire season, Greece has hired an unprecedented number of firefighters. In 2023, one of Europe's biggest wildfires ever recorded burned for several weeks in northern Greece. At least 20 people were killed. A destructive wildfire swept down from a mountain into built-up areas near Athens last year, forcing residents to leave.
EU rejects proposals to reduce reliance on Russian nuclear energy
Dan Jorgensen, EU Energy Commissioner, said that the European Commission would not be proposing measures this week to limit EU reliance on Russian nucleofuel alongside its proposals for a ban on Russian gas.
This week, the Commission will propose legal measures to stop the EU from importing Russian gas by 2027. The EU executive set this goal last month.
The Commission said that it would also propose in June trade measures targeting enriched Uranium to make Russian imports less attractive and to encourage countries to switch suppliers.
When asked Monday about the timing of nuclear proposals, Jorgensen said, "That too will come. But in the first phase, we'll focus on the gas."
He did not give a new deadline for the proposals.
"The nuclear question is complicated because we have to make sure we don't put countries in a position where they are unable to secure their supply. We are working hard to include that in the proposal," Jorgensen stated.
According to Bruegel, Russia will supply 38% of EU enriched uranium by 2023 and 23% raw uranium.
The Commission said that it would also restrict new supply contracts of Russian uranium, and enriched Uranium, which are signed by Euratom Supply Agency.
Brussels has set a deadline of end-2027 for the EU to stop buying Russian gas. However, the EU has not specified a date when it should stop buying Russian nuclear fuels. This is due to the fact that many countries rely on Russia to provide fuel, spare parts or fuel cycle services, and this could threaten the security of the supply.
Commission: In 2024, the EU spent 26.63 billion euros on Russian energy, including around 1 billion euro for nuclear fuel.
Five EU countries, Bulgaria, the Czech Republic Finland, Hungary, and Slovakia, have Russian-designed nuclear reactors that run on Russian fuel. All but Hungary have signed alternative supply contracts since 2022. However, the long wait time means they cannot switch immediately. ($1 = 0.8636 euro) (Reporting and editing by Christian Schmollinger; Kate Abnett)
(source: Reuters)