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Ocean Winds Sells 20% Stake in French Offshore Wind Farm to Allianz for $230M
Ocean Winds, the 50-50 joint venture between Portugal’s EDP Renováveis and France’s Engie, has agreed to sell a 20.25% stake in its 500 MW Îles d’Yeu et Noirmoutier offshore wind project in France to Allianz Global Investors for $232 million.Located in Vendée on France’s Atlantic coast, the Îles d’Yeu et Noirmoutier offshore wind farm consists of 61 Siemens Gamesa turbines of 8.2 MW each and is backed by a 20-year inflation-linked feed-in tariff ensuring long-term revenue stability.The transaction implies an enterprise value-to-megawatt ratio of $6.5 million, according to EDP, which holds a 71.3% stake in EDP Renováveis.Following a final investment decision in April 2023, construction has reached its final phase.Power generation began in June 2025, with more than half of the turbines already installed and supplying electricity to French households.The wind farm is expected to be fully commissioned by the end of 2025.After the sale, the project’s ownership will comprise Ocean Winds with 40%, Allianz Global Investors with 20.25%, Sumitomo Corp with 29.5%, Banque des Territoires with 9.75%, and Vendée Energie with 0.5%.
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Trump Halt on Offshore Wind Hits US Shipbuilders, Ports
U.S. shipbuilders and port operators are getting hit in the fallout from President Donald Trump’s campaign to wipe out the offshore wind industry, suffering hundreds of millions of dollars in lost government support, vanishing vessel orders, and an uncertain future for the billions of dollars' worth of investments.The impact represents an unintended consequence of Trump’s policy on the offshore wind industry, which has included stop-work orders and permit reviews for massive projects that were spurred by former President Joe Biden's green investment policy.Trump calls offshore wind an unsightly and inefficient technology that harms whales and birds. But he is also a huge supporter of U.S. maritime industries that he views as crucial in the global competition for trade and military dominance of the high seas."He has a counterproductive argument," said Joe Orgeron, a Republican Louisiana state representative and former offshore vessel business owner, who pointed out the offshore wind industry was responsible for many ship orders in recent years. “That all came to a sudden halt, unfortunately."Reuters interviewed 13 port representatives, shipbuilders and trade groups who detailed the knock-on impacts of Trump’s policy moves targeting offshore wind, the details of which are reported here for the first time.The impacts include more than $679 million worth of canceled Department of Transportation financing for ports to support offshore wind, including a $34 million grant for a facility in Salem, Massachusetts that was expected to generate $75 million in tax revenue over 20 years and create 800 jobs.Meanwhile, orders for new offshore wind service vessels - designed to carry workers and huge turbines offshore or to lay undersea cable - have also disappeared, according to trade group Oceantic, following a busy 2024 that saw the launch of at least 10 U.S. vessels built to serve offshore wind.Existing vessels are also being sold off, or considered for redeployment to other global regions, according to the reporting.The Trump administration said it can revive the U.S. shipbuilding and port industry, which has suffered from years of cost-inflation and a dearth of government support, without offshore wind’s support."This administration will restore America’s maritime dominance by modernizing our ports and expanding our shipbuilding capacities to compete with communist China," the U.S. Department of Transportation told Reuters."We’re also doing it as quickly and cost-effectively as possible— two attributes completely absent in offshore wind manufacturing."BIG CANCELLATIONDanish shipping giant Maersk canceled a $475 million contract earlier this month for a ship that was custom designed to install massive turbines at the Empire Wind power project off the coast of New York, laying bare the downturn in vessel demand.Equinor's Empire Wind had been embroiled in Trump’s opposition to offshore wind earlier this year when the administration issued a stop-work order that delayed its construction for a month.The ship’s builder, Singapore-based Seatrium, said it was evaluating its options for the vessel, which was nearly fully built, and could take legal action.Offshore wind’s rise in the Northeast in recent years had fueled robust demand for many such vessels, including several built in U.S. shipyards or flying U.S. flags, according to trade group Oceantic Network. It said the sector cumulatively has attracted $5.1 billion in port investments and $1.8 billion in vessel orders.Among the vessels built is the $715 million Charybdis, the only U.S.-flagged wind turbine installation vessel, which is now working on Dominion Energy’s D.N Coastal Virginia Offshore Wind project.Louisiana’s Edison Chouest also built two major offshore worker housing vessels for Equinor and Orsted projects currently under construction.But that work is drying up.Offshore wind developer US Wind said in court documents filed this month it had been on track to secure specialized vessels for offshore wind installation, but the Trump administration's efforts to stop its Maryland project had disrupted that progress.Such vessels are scarce and booked years in advance, requiring early action to meet construction timelines, the company said.Rhode Island’s Blount Boats, which began building crew transfer vessels for offshore wind in 2016, said it has stopped completely.“We’ve moved on,” said Executive Vice President Julie Blount. “There are no contracts for those boats, and it’s simply because the Trump administration has closed that down.”Meanwhile, some existing vessels serving offshore wind are being sold off.Houston-based Seacor Marine announced in August it would sell two U.S.-flagged liftboats — used on the Block Island and South Fork offshore wind farms — to Nigerian oil and gas services company JAD Construction for $76 million, citing delays and cancellations.Seacor did not respond to a request for comment.Other ships face uncertain futures. The $200 million Acadia, America’s first rock installation vessel, will likely work overseas after completing jobs for Equinor and Orsted, said Bill Hanson of Great Lakes Dredge & Dock Corp.The company has no plans for more offshore wind vessels.PORTS REELING TOOOceantic estimated last year that more than two dozen U.S. ports were pursuing offshore wind projects. Many of those lost critical funding after the DOT canceled 12 grants worth $679 million in August, hitting projects in states including Massachusetts, New York, California, Maryland, and Virginia."It’s realistic to look at the current landscape and see that this industry is going to be deeply challenged by the current administration," said Salem Mayor Dominick Pangallo, whose city’s port project is struggling after a funding cancellation.In Northern California, the Humboldt Bay offshore wind port that lost $426.7 million - the bulk of the canceled DOT funding - is expected to be delayed by about five years to at least 2035, according to Chris Mikkelsen, executive director of the Humboldt Bay Harbor, Recreation and Conservation District.The project is hoping to be able to tap funds from a state climate bond to make up for the lost federal money.In Norfolk, Virginia, the developer of a marine logistics terminal that lost a $39 million DOT grant submitted a revised proposal refocusing the project away from offshore wind to align with the administration's priorities, city economic development officials told Reuters.Some port projects are still underway. Equinor's South Brooklyn Marine Terminal, which will support its Empire Wind project, is 70% complete and has employed about 3,000 workers, according to a company spokesperson.In Maryland, US Wind says it is sticking with its plan for a shoreline steel manufacturing facility that could serve the shipbuilding and energy industries despite both the cancellation of a $47.4 million port grant and the administration's plans to revoke the permit for its offshore wind project. But US Wind has also warned in court documents that it could face bankruptcy if its project is canceled.Jim Strong of the United Steelworkers union, which has a deal to supply workers for US Wind's facility, said he was optimistic that Trump would see how investments in offshore wind can reverberate through industries that he cares about."He showed a tremendous amount of passion in his campaigns in talking about steel," Strong said of Trump. "I want to believe that once the story is out there, that there could be a change of positions."(Reuters)
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Oil prices rise 2.5% following US sanctions against Rosneft and Lukoil
The oil prices rose by around 2.5% Thursday, continuing gains from the previous day, as concerns about supply resurfaced following the United States' sanctions against major Russian oil companies Rosneft, and Lukoil, over the Ukraine conflict. Brent crude futures rose by $1.56 or 2.49% to $64.15 per barrel by 0303 GMT. U.S. West Texas Intermediate Crude futures gained $1.53 or 2.62% to $60.03. The U.S. declared it was ready to take additional action, as it urged Moscow to immediately agree to a ceasefire of its war in Ukraine. Donald Trump, who is now in his second term as president, has refused to comply with the demands of U.S. legislators to impose sanctions on Russia, hoping to convince them to stop the war. He said that if there was no end to the fighting, it was now time. Last week, Britain sanctioned Rosneft as well as Lukoil. Separately the EU approved a 19th set of sanctions against Russia, including a ban on Russian LNG imports. "President Trump’s fresh sanctions against Russia's largest oil houses aim directly at choking Kremlin revenue - a measure that could tighten the physical flow of Russian barrels, forcing buyers to reroute volumes on the open market," said Phillip Nova’s senior market analyst Priyanka Sahdeva. She added that if New Delhi reduces its purchases due to pressure from the United States, Asian demand could shift towards U.S. crude and increase Atlantic prices. India state refiners said They were reviewing Their purchases of Russian oil to ensure that there will be no direct supply from Rosneft or Lukoil, after the U.S. placed sanctions on them. Brent and WTI futures soared by over $2 per barrel immediately after the U.S. announced sanctions. This was also boosted by a sudden decline in US stocks. The market was sceptical about whether U.S. sanction would result in a fundamental shift in supply, which limited the gains of oil. Claudio Galimberti, Rystad Energy's global market analyst, said that the new sanctions between the US and Russia are increasing the tensions. However, the price of oil is more likely to be a reactionary move by the markets than a structural change. He said that the sanctions imposed on Russia over the last 3.5 years had largely failed to affect either the volume of oil produced or the revenues generated by the country. Some buyers in India and China continued their purchases. The markets expected a near-term surplus of OPEC+ supply due to the unwinding of production cuts to be a major price driver. The three things I'll be paying attention to in November are the unwinding of OPEC+, China's crude stocks, and wars in Ukraine, Mideast and elsewhere, said Rystad analyst Galimberti. (Reporting and editing by Florence Tan, Tom Hogue, Kim Coghill; Reporting by Katya Glubkova from Tokyo)
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Focus on Chinese Communist Party and iron ore
Iron ore futures traded in a narrow band on Thursday, as investors looked for cues to demand from a number of data points and an important Chinese Communist Party gathering. The Communist Party's leadership is expected to announce its five-year plan during a four-day meeting held behind closed doors that began Monday. After a series of disappointing data, and amid the massive uncertainty caused by the US-China trade dispute, there were lingering hopes that China would unveil some stimuli to boost the economy and shore up consumer trust. As of 0237 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange increased 0.19% to reach 775.5 Yuan ($108.87). As of 0227 GMT, the benchmark November iron ore price on the Singapore Exchange had not changed much. It was $104.2 per ton. The market was waiting for data on steel, such as inventory and production to gauge the demand. Ore prices have been limited by the expectation that fundamentals will weaken in the fourth quarter due to robust shipments and declining demand. Analysts at Galaxy Futures stated that "oil prices will likely fall as increased supply coincides falling demand." Fortescue, an Australian company, reported a 4.2% increase in iron ore shipment for the first quarter on Thursday. Vale, a Brazilian mining company, reported its highest quarterly production of iron ore since 2018. Analysts predicted that the supply of coking coal and other steelmaking materials would be constrained in certain key production areas. The benchmarks for steel on the Shanghai Futures Exchange are mixed. Rebar rose by 0.39%. Hot-rolled coils advanced by 0.37%. Wire rod fell 0.18%. Stainless steel remained flat. ($1 = 7.1230 Chinese yuan). (Reporting and editing by Amy Lv, Colleen Howe and Subhranshu Saghu)
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Georgia Governor Kemp meets with Hyundai and LG officials in South Korea, reports media
The Maeil Business Newspaper reported on Thursday that Brian Kemp, governor of Georgia in the U.S., will meet with South Korean leaders of business this week. This includes executives from Hyundai and LG Energy Solution. Kemp's trip comes after U.S. Immigration authorities raided in September the construction site of an under-construction battery plant in Georgia owned jointly by Hyundai Motor, LGES and LGE. After a week-long negotiation between South Korea, the United States and South Korea, hundreds of South Koreans were arrested on suspicion of working without visas. The local public relations agency that handled Kemp's visit refused to comment. Hyundai Motors and LG Energy Solution declined to comment as well. The raid shocked the South Korean government as well as the public, and revealed the lack of access for South Koreans to visas of the right type that are needed by investment sites. In the first week of this month, The United States allowed South Koreans working on equipment in U.S. facilities under temporary visas. They also opened new channels for South Korea to send workers into the country to conduct business. Hyundai Motor and LG Energy have announced a $4.3 billion joint venture to produce EV batteries near Savannah, Georgia. Each company will hold a 50% share. The plant will provide batteries for Hyundai, Kia, and Genesis EVs. Hyundai's CEO stated that the raid will delay the startup of the battery plant by at least two or three months. Hyundai has invested $12.6 billion in the state. This includes the newly opened car factory. It is the "largest economic development project" in the history of the state. According to the Governor's Office, South Korea was Georgia’s third largest trading partner in 2018. Total trade exceeded $17.5 billion. (Reporting and editing by Christian Schmollinger; Heekyong Yahng)
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Asian markets fall on possible new US trade restrictions against China
On Thursday, Asian stocks fell a second time as Wall Street was stung by disappointing earnings reports for tech giants. Meanwhile, U.S. sanctions on Russia and China rekindled geopolitical fears. Oil prices surged. The broadest MSCI index of Asia-Pacific stocks outside Japan fell 0.3% last week, while Japan’s Nikkei225 dropped 1.5%. Chinese stocks fell 0.4% in Hong Kong following reports that the White House was considering a plan aimed at curbing a range of software-powered products exported to China as retaliation against Beijing's recent round of export restrictions on rare earths. Charu Chanana is the chief investment strategist for Saxo Bank, Singapore. "Without fresh macro data to anchor investor sentiment, investors lean defensive as Trump's Asia trip stirs up geopolitical nervousness," she said. The chatter about U.S. software import curbs to China is hurting tech sentiment. And renewed sanctions against Russia remind us that geopolitical risk will not go away. As the corporate earnings season begins, global equity markets are beginning to ease off their record highs. Investors may have been disappointed by the results and outlooks of megacap companies, but most of the companies have exceeded analysts' expectations. South Korean stocks dropped 0.2% after Bank of Korea held rates, as analysts expected. Brent crude rose 2.3% to $64 a barrel on Wednesday after U.S. president Donald Trump imposed sanctions related to Ukraine for the first in his second term. The sanctions targeted Russian oil companies Lukoil, and Rosneft. The move was made on the same day that EU countries approved their 19th package on Moscow, which included a ban of Russian liquefied gas imports. Energy Information Administration reported on Wednesday that U.S. crude, gasoline, and distillate inventory fell last week due to increased refining and demand. S&P 500 futures rose 0.1%, after the second consecutive day of stock market declines in the United States. Wall Street analysts were disappointed by earnings reports released by tech giants. Netflix shares dropped more than 10% Wednesday after the streaming giant revealed its outlook for the next quarter. Tesla shares dropped 3.8% after-hours after the company reported a profit that did not meet analysts' expectations despite a record third-quarter sales that exceeded estimates. Apple shares dropped 1.6% on Wednesday after two civil rights groups filed a complaint with EU antitrust regulators over the App Store terms and conditions and its devices. The groups claimed that Apple had violated landmark rules intended to rein in Big Tech. The yield of the 10-year Treasury Bond in the United States was last stable at 3.955%. This is a 0.2 basis points increase compared to a previous closing of 3.953%. Investors think that the Federal Reserve will continue to ease policy. Fed funds futures indicate a 96% probability that the U.S. Central Bank will cut interest rates by 25 basis points at its meeting on October 29. This is compared to a 98.3% possibility on Wednesday. The U.S. Dollar Index, which measures the strength of the greenback against a basket six currencies, last traded 0.1% higher at 99.03. In early Asian trading, gold prices were close to $4,000 per ounce as investors took profits before the U.S. inflation report due this week.
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As US sanctions Russia's Rosneft and Lukoil, oil prices continue to rise
The oil prices increased by over $1 per barrel in the last session after the United States placed sanctions on Russian oil firms Rosneft, and Lukoil for the Ukraine conflict. Brent crude futures rose by $1.76 or 2.81% to $64.35 at 0041 GMT. U.S. West Texas intermediate crude futures also increased by $1.68 or 2.87% to $60.18. The U.S. has said that it is prepared to take additional action, as it calls on Moscow to immediately agree to a ceasefire of its war in Ukraine. U.S. president Donald Trump did not impose sanctions against Russia for the war before, instead relying on trade measures. Treasury Secretary Scott Bessent issued a statement saying that "given President Putin's unwillingness to end this senseless conflict, Treasury sanctions Russia's largest oil companies who fund the Kremlin war machine." Last week, Britain sanctioned Rosneft as well as Lukoil. Separately the EU approved a 19th set of sanctions against Russia, including a ban on Russian LNG imports. The rise in crude oil prices has been modest so far, Tony Sycamore said, a market analyst with IG. "The sanctions news has boosted the crude oil price but the rise has been relatively small because previous sanction/tariff threat have been diluted or deferred and also due to the difficulty of enforcing these sanctions." Brent and WTI rose more than $2 per barrel after U.S. sanction announcements, also boosted by the growing U.S. demand for energy. The U.S. urged Japan last week to stop importing Russian LNG ahead of Trump's visit to Asia. Washington is also increasing pressure in the region to reduce Russian supply. (Reporting and editing by Florence Tan, Tom Hogue and Katya Glubkova from Tokyo)
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BHP warns of 'difficult' decisions ahead for the Australian coking coal industry
BHP Group's CEO stated at the annual general meeting that it will be forced to make "difficult" decisions for its metallurgical business in Australia, if no regulatory changes are made to help it. BHP announced last month that it would cut 750 positions and suspend operations at a Queensland coal mine, which it shares with an affiliate of Mitsubishi. It blamed low prices and high royalties from the state government for its poor returns. Mike Henry, CEO of the miner’s annual general meeting, said: "Without change there will be without a doubt more difficult decisions." The incoming chair Ross McEwan, of the largest company in Australia and the top miner in the world, said that this week's critical minerals agreement between the U.S.A. and Australia was "a good start". On Monday, U.S. president Donald Trump and Australian prime minister Anthony Albanese inked a crucial minerals agreement to counter China. "It's too early to see what I think is a positive meeting between the Prime Minister of Australia and President of the United States." McEwan stated that the meeting was "a good way to begin these conversations". BHP is more interested in producing copper, iron ore, and steelmaking coal than it is in niche markets that are critical to the economy, he said, even though copper is increasingly seen as a strategic material due to its role in energy transition. Henry, a Rio Tinto executive, and two other Rio Tinto executives, met Donald Trump and Interior Sec. Doug Burgum at the Oval Office in August. Henry was "impressed" by the intensity of the U.S. focus on getting new mines and processing plants up and running. BHP and Rio Tinto are looking to build Resolution Copper Mine in Arizona. This mine could meet a quarter of the U.S. copper demand. Henry stated that the agreement was symbolic in the sense that it showed how serious the issue had been taken and what role Australia could play in supporting the U.S. Reporting by Melanie Burton and Renju José in Melbourne; editing by Himani Sarkar, Sonali Paul and Himani Sarkar
United States looks to suppress low-value Chinese shipments under $800 'de minimis' exemption
The Biden administration said on Friday it was moving to curb lowvalue deliveries going into the U.S. dutyfree under the $800 de minimis limit that has been exploited by Chinese ecommerce companies such as Shein and PDD Holdings' Temu.
White House authorities stated they will propose the brand-new trade guidelines to deny the duty-free exemption to bundles that contain low-value items subject to the Section 301 tariffs on Chinese products, the Area 232 tariffs on steel and aluminum products and Area 201 on secure tariffs on items including solar products and washing machines.
The proposed rule includes new info disclosure requirements for little packages to assist U.S. Customs and Border Security representatives to much better recognize contents for illicit or unsafe products such as precursor chemicals that can be made into the deadly opioid fentanyl.
American workers and businesses can outcompete anybody on a. equal opportunity, but for too long Chinese e-commerce. platforms have skirted tariffs by abusing the de minimis. exemption, stated U.S. Secretary of Commerce GinaRaimondo.
The White Home announcement comes 2 days after Democratic. lawmakers in Congress advised President Joe Biden to use executive. powers to close the de minimis arrangement, which they called a. loophole that has enabled Chinese imports to avert tariffs and. ship narcotics to the U.S. without customs evaluation.
The exemption has been part of U.S. trade law considering that 1930 to. accommodate individual tourists, however the limit was. increased to $800 from $200 in 2015 as an aid to little. businesses, consisting of sellers on e-commerce platforms such as. eBay.
Packages under the limit get in duty-free and with less. customizeds examination as long as they are dealt with to people'. houses.
Ever since, the volume of packages entering the U.S. under. the $800 limit has blown up to over 1 billion in 2015 from. around 140 million a years back, White House authorities stated,. attributing the majority of the growth to Chinese e-commerce firms.
Amongst the most significant recipients have been Shein and Temu,. which ship direct to U.S. consumers from China. The news sent. shares of Temu-owner PDD Holdings down more than 5% before the. bell.
Temu and Shein did not respond to Reuters ask for. remark.
U.S. textile producers blame the exemption for enabling. low-value clothing plans to skirt U.S. Area 301 tariffs,. which cover some 70% of massive Chinese textile and garments. imports.
The extreme increase in de minimis deliveries has actually made it. significantly tough to target and obstruct illegal or risky. shipments coming into the United States through this pathway, White Home. Deputy National Security Adviser Daleep Singh said.
That's why the administration is beginning a regulatory. process to reduce de minimis overuse and abuse.
The objective of the new rules is to reduce the volume of de. minimis deliveries to a more manageable level to better screen. bundles, a senior administration authorities said.
Another proposed rule would need de minimis packages to. consist of product tariff codes and other information to assist. better recognize suspect deliveries.
It was uncertain how rapidly the proposed rules might be. executed. They would need public remark durations to allow. interested celebrations to weigh in before they are completed.
Administration authorities stated they are dealing with. lawmakers to pass reforms to the trade provision for blanket. exemptions of certain import-sensitive products.
The action was revealed on the same day that the Biden. administration locked in steep U.S. tariff increases on some $18. billion worth of Chinese imports, including 100% tasks on. electrical vehicles, 50% on semiconductors and solar batteries and 25%. on lithium-ion batteries, steel and aluminum.
(source: Reuters)