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Global Offshore Wind Stumbles to the End of '24
Soaring costs, project delays and limited investment put targets out of reachAfter a year of canceled projects, broken turbines, and abandoned lease sales, the global offshore wind industry no longer has much chance to hit the lofty targets set by governments in the U.S., Europe and elsewhere ... with the exception of China.Reuters spoke to 12 offshore wind companies, industry researchers, trade associations, and government officials in six countries to come up with a global picture of the state of the industry and its outlook, and found soaring costs, project delays and limited supply chain investment were hobbling installations."We're pretty far away from these targets," Soren Lassen, head of offshore wind research at energy research firm Wood Mackenzie, said in an interview. He said offshore wind farms now have a global average cost of $230 per megawatt-hour (MWh) – up 30% to 40% in the past two years and more than triple the average of $75/MWh for onshore facilities.That has companies retreating. BP last month said it was considering selling a stake in its offshore wind business, and Equinor earlier this year abandoned investments in Vietnam, Spain and Portugal. Meanwhile GE Vernova one of the industry's top turbine suppliers, is not taking new orders."We do not foresee adding to (our) backlog without substantially different industry economics than what we see in the marketplace today," GE Vernova CEO Scott Strazik said on a recent investor call.World governments had set a global target last year of tripling overall renewable energy use by 2030, something the International Renewable Energy Agency (IRENA) said would require offshore wind capacity to surge to 494 GW by the end of this decade, from 73 GW currently.IRENA Director-General Francesco La Camera told Reuters offshore wind is now projected to fall short of its target by a third. Estimates by three other prominent research firms project that the world will not reach 500 GW of offshore wind installations until after 2035.Copyright Alexander/AdobeStockTHE TRUMP EFFECTGovernments in Europe, the Americas and Asia have sought to prop up the sector with national targets aimed at attracting deep-pocketed developers including major global energy companies Equinor, Orsted, RWE and Iberdrola.The United States, for example, set a goal in 2021 of 30 gigawatts of offshore wind by the end of this decade, but had less than 200 megawatts operating as of May of this year, according to the National Renewable Energy Laboratory.The outgoing administration of U.S. President Joe Biden issued permits for 15 GW of projects, held six lease sales on multiple coasts, and extended tax credits to the industry.But U.S. offshore wind has been roiled since last year by canceled projects and contracts, suspended government auctions, and a high-profile construction accident at the country's first major commercial project.The industry is now worried that President-elect Donald Trump, will follow through on an election campaign promise to dismantle the industry's progress, possibly by withholding lease auctions. "Given the results of the U.S. elections, we see higher risks than before for the timely implementation of offshore wind projects there," Michael Mueller, finance chief of German offshore project developer RWE, told journalists on an earnings call this month.Energy research firm Rystad said it expects the United States to reach less than half of its 2030 target.Representatives of the Biden administration and Trump's transition team did not provide comment for this story.Carl Fleming, a partner at law firm McDermott Will & Emery who advises the White House on renewable energy policy, told Reuters the U.S. would struggle to miss its target regardless of who is in the White House, given market conditions.Image courtesy WindEuropeEUROPE ALSO FALLS SHORTIn Europe, Petra Manuel, offshore wind analyst at Rystad, expects countries with the highest offshore wind targets - the United Kingdom, Germany and the Netherlands - to reach about 60% to 70% of their goals. Nations with less ambitious targets, including Belgium, Denmark and Ireland, are also expected to come up short, he said.Industry trade group WindEurope, meanwhile, said it expects the European Union to have 54 GW of offshore wind capacity by 2030, about half of the 120 GW North Sea countries pledged.EU Energy Commissioner Kadri Simson told Reuters that delays in meeting targets could not be ruled out, but that none had been formally flagged by member states.Britain, the second-biggest offshore wind market after China, will also miss its goal of 60 GW by 2030, said Damien Zachlod, managing director of offshore wind developer EnBW Generation UK.The UK held its best-funded auction yet in September, adding 4.9 GW of new agreements. But future auctions will require far larger volumes to reach 60 GW on time, he said."It will be very, very challenging and we won't hit the target by 2030," he said.A spokesperson for the UK government did not immediately provide comment.Copyright somartin/AdobeStock& THEN THERE'S CHINAChina, which became the global leader in offshore wind in 2022, is bucking the global trend [though it is a closed market].Beijing has supercharged its industry with subsidies and low financing costs. Most of the sector's players are state-owned, and have access to locally-made offshore wind components.China accounted for more than half of 2023 offshore wind installations, with 6.3 GW, and the Global Wind Energy council trade group estimates the country will install 11 to 16 GW annually in the next two to three years.Sourcing cheap equipment from China would help reduce costs for developers in Europe, Japan and the United States, but governments there have sought to encourage local production to reduce reliance on Beijing.Elsewhere in Asia, nations including Vietnam, Japan, South Korea and Taiwan have sought to expand offshore wind but also face difficulties linked to soaring costs and regulatory uncertainty.Japan, for example, has set ambitions of building up to 45 GW of offshore wind capacity by 2040, up from less than 1 GW today. But the nation's auctions to date have been small, and the industry is constrained by laws preventing non-Japanese vessels from operating in offshore wind areas.Rebecca Williams, deputy CEO of the Global Wind Energy Council trade group, acknowledged there is a risk the industry could miss its targets, but said hitting them is still possible with the right policies."Of course, whenever there's a target, there's a risk that that target might not be met," Williams said on the sidelines of the COP29 conference in Baku."But the target is not the thing that's going to get the turbines in the water."(Reuters)
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TSX increases as higher gold, crude rates enhance mining, energy shares
Canada's main stock index increased on Monday, boosted by mining and energy business that gained on the back of higher gold and oil prices respectively. The S&P/ TSX composite index closed up 74.51 points, or 0.3%, at 24,965.19. Gold costs rose greatly on Monday as investors looked for a. safe house to park cash after the Russia-Ukraine war escalated. The stalled U.S. dollar, which has been rising for the previous couple of. weeks, contributed to the bullion need. Spot gold jumped 1.84% to $2,608.57 per ounce,. helping basic materials or mining companies post an. boost of 2.32%. Gold is carrying out strongly, and with the Canadian economy. being heavily resource-driven, it's providing a boost to the TSX. today, stated Shiraz Ahmed, senior portfolio manager and founder. of Sartorial Wealth at Raymond James. The U.S. choice to authorize long-range Ukrainian strikes. into Russia pressed petroleum costs higher, with the Brent crude. cost rising 3.15% to $73.28 per barrel. The energy sector, which represents over 17% of. the total composite-index weight, advanced by 0.8% due to higher. oil prices. The TSX has actually risen nearly 20% this year due to a raft of. elements such as expectations of lower interest rates,. geopolitical concerns and anticipation of the U.S. elections. Numerous analysts see the valuations over-stretched and anticipate. the market to be up to a more sensible level however see the timing. as unpredictable. I don't understand when it's going to occur but certainly we are. going to have a correction at some point, said Michael Sprung,. president at Sprung Investment Management. The boost markets got from the anticipation of. interest-rate cuts is fading away, he said. Canada will launch consumer-price information on Tuesday and. economic experts expect the numbers could help determine the size of. the anticipated rate cut by the Bank of Canada next month. Canadian housing starts increased 8% in October, compared to. the previous month, as groundbreaking increased on multi-unit. and single-family separated homes. The Nasdaq and S&P 500 closed greater, recovering some. losses as financiers anticipated quarterly profits from AI. leader Nvidia, while Tesla got on the. possibility of favorable policy changes from the inbound U.S. administration.
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ADM posts drop in Q3 earnings in postponed report, revises segment core earnings
Global grain trader ArcherDanielsMidland posted a drop in thirdquarter revenue on Monday and stated in its delayed filing that it has modified its estimation of total segment operating revenue. The business had on Nov. 5 delayed its revenues statement and cut its 2024 revenue outlook to amend previous financial statements due to the discovery of fresh accounting abnormalities. ADM was required to fix 6 years of monetary information in March after an internal examination found sales between its nutrition service and other core units were not recorded effectively. CEO Juan Luciano stated they are focusing on enhancing internal controls. Looking ahead, while we visualize softer market conditions into next year, we are acting to improve performance, he said. The business's total section operating earnings fell 28.3% to $ 1.04 billion in the quarter after restatement, while revenue for Ag Services & & Oilseeds section slumped 43% in the same duration. It reported net revenues of $18 million, or 4 cents per share, for the quarter ended Sept. 30, compared to $821. million, or $1.52 per share, a year earlier.
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Ecuador declares national emergency situation as wildfires, dry spell magnify
Ecuador's federal government stated a 60day nationwide emergency situation due to raging forest fires made worse by a severe dry spell, threat management authorities said on Monday. The South American country faces 13 active wildfires and another 9 that have been managed, according to an upgrade from the federal government's interactions workplace. The whole nation is suffering the devastations of this excellent dry spell that has currently lasted nearly 120 days, Danger Management Secretary Jorge Carrillo informed regional radio broadcaster FM Mundo. He said it is vital to utilize aerial assistance to eliminate the wildfires as the areas are rugged and in some cases it takes firemens three hours to reach fires by land. In the most-affected provinces, Azuay and Loja, the flames have consumed more than 10,000 hectares (24,700 acres). The emergency situation decree comes as Ecuador fights with an energy crisis that has actually resulted in power interruptions of approximately 14 hours a. day in current months.
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US crude oil futures flip to contango for very first time given that Feb.
U.S. unrefined futures turned to a contango structure for the first time since February on Monday, with West Texas Intermediate for January shipment trading at a premium to the December contract in a. sign that supply tightness is easing. The discount rate for front-month U.S. crude futures against. the second-month agreement broadened to as much as 4 cents throughout. the day. The December contract is due to end on Wednesday and. the market is eyeing higher supply. Under a contango, traders are wagering oil will fetch a. more powerful price in the future than current spot rates,. validating the expense of storage. We have seen a boost in crude stocks in. Cushing, the delivery point of West Texas Intermediate,. leading to a less tight market, stated Giovanni Staunovo, an. expert at UBS. Stocks at Cushing, Oklahoma, the shipment point for WTI. futures, were at 25.2 million barrels at the end of recently,. a little down on the week however recovering from an 11-month low of. 22.7 million barrels in mid-September, according to the U.S. Energy Information Administration. However levels still stay listed below the 10-year seasonal. average of 42.5 million barrels. Tank storage of listed below 20. million barrels, or in between 10% and 20% of Cushing's over 94.4. million barrels of functional capacity, is thought about close to. operational lows. The flip in U.S. unrefined futures structure to contango is. likely momentary, Staunovo added, indicating the nearing. expiry. The rest of the WTI forward curve remains in. backwardation, where nearer-term contracts trade above later on. ones, although those spreads are narrowing. Spot prices have actually fallen in recent weeks, resulting in a. flatter curve structure, Staunovo stated. U.S. unrefined futures have been trading below $70. per barrel for the last 5 sessions, LSEG data showed.
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Russia continues uranium deliveries as typical, and can supply to U.S. under unique waivers - Rosatom
Russia's state nuclear corporation Rosatom, the world's largest provider of enriched uranium, said on Monday it was providing uranium to all of its consumers as normal which materials to the United States could take place under a special regime. Russia stated on Friday that it had actually imposed momentary constraints on the export of enriched uranium to the United States in action to U.S moves. Uranium rates rose on the choice. In May, President Joe Biden signed into law a restriction on Russian enriched uranium, though the U.S. likewise has the capability to provide waivers if there are supply concerns. The decree forbiding the export of uranium items from Russia to the United States ... is an awaited reciprocal response to the actions of the U.S. authorities, Rosatom stated in a statement. The decree also establishes an unique licensing routine that permits the supply of Russian uranium items to the United States and U.S. clients, Rosatom stated. Supply of Russian uranium items to other countries continues the same, under terms concurred upon with our clients and in compliance with appropriate laws and guidelines. Russia holds about 44% of the world's uranium enrichment capability and around a 3rd of U.S. nuclear fuel imports used to originated from Russia, according to the U.S. office of nuclear energy. Kremlin spokesperson Dmitry Peskov stated the Russian move was a retaliatory step however that the objective was not to harm Russian interests. Indeed, a ban has been introduced, however in cases where it remains in our interests, the Federal Service for Technical and Export Control of Russia may decide to omit from this list of restrictions, Peskov stated. We are not speaking about any damage to our interests here. Rosatom, produced by a presidential decree in 2007, says it is the only business in the world that has all technologies of the nuclear fuel cycle, from uranium mining and nuclear research to structure, sustaining and running nuclear power plants.
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Nippon Steel not to import from overseas mills in bid to conserve U.S. Steel deal
Nippon Steel will not import steel to the U.S. from its global mills, the Japanese business's Executive Vice President Takahiro Mori stated on Monday in a letter to United Steelworkers union members. Nippon is looking to close its $14.9 billion offer for U.S. Steel by the end of the year before President-elect Donald Trump, who has actually pledged to obstruct the offer throughout his campaign, goes into the White House in January. In its effort to alleviate the obstacles postured by the union and President Joe Biden, the business has promised investments to US Steel and guaranteed task security to the United Steelworkers union. It has likewise assured to offer a stake in a U.S. steel plant joint endeavor if the company is successful in the buyout. In his letter, Mori reiterated the promises made over the past year and attended to issues raised by union leaders, including USW President David McCall. We are here to notify you, not to work out as President McCall has suggested. I have actually asked President McCall to satisfy, most just recently on November 11. I await his response, Mori stated. In September, an arbitration board jointly picked by the company and the USW, ruled in favor of the offer, but the union disagreed with the choice. Mori, who is set up for a U.S. check out next week, will fulfill steelworkers in Pittsburgh and likewise go to New york city and Washington. The Japanese steel company is making efforts to finalize the deal, as the Committee on Foreign Investment in the United States has extended its review until the end of December.
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Stellantis CEO states will adjust to U.S. market under Trump
Stellantis' will adapt to modifications in the U.S. automobile market anticipated under a Trump government, CEO Carlos Tavares said on Monday, with a platform that can offer electric, hybrid or gas versions of its models. President-elect Donald Trump's transition group is preparing to kill the $7,500 customer tax credit for electric-vehicle purchases as part of broader tax-reform legislation, 2 sources with direct understanding of the matter informed Reuters recently. Ending the tax credit might have grave ramifications for a currently stalling U.S. EV transition. Speaking throughout a see to a plant in western France, Tavares stated Stellantis, one of the top three vehicle makers in the U.S., required to see what decisions Trump would take, but that it might adapt to various conditions in various regions. The company will provide its multi-energy base platform for pick-up trucks in the U.S. market today, included Tavares. Our mission is simple: to provide clean, safe and economical mobility. And we will do so in a way that meets the expectations of the communities and nations in which we operate, he informed reporters.
Mammoet to Marshal XL Monopile Foundations for RWE’s Offshore Wind Farms
Mammoet has signed a contract with Buss Ports to marshal over 100 XL monopile foundations for RWE’s offshore wind farms Nordseecluster A and Thor.
The Nordseecluster, with a planned capacity of up to 1.6 GW, is one of the largest offshore wind energy projects in Germany and will be constructed in two phases (A & B).
Thor, with a planned capacity of more than 1 GW to power more than one million homes, is Denmark’s largest to date.
Mammoet will manage the phased load-in, temporary storage and load-out of 116 XXL monopiles for both wind farm projects at Buss Terminal Eemshaven in the Netherlands.
The largest foundations will weigh around 1,700 tonnes and measure 96 meters in length.
The monopiles will be offloaded onto the quay using a RoRo linkspan ramp and transported using Self-Propelled Modular Transporters (SPMTs) fitted with saddles.
The SPMT trailers will then drive the monopiles onto storage dunes, ready to be called off and shipped to the wind farms located in the German and Danish waters of the North Sea.
“This is a complex marshalling operation, with large components for both farms needing to be moved and managed on a single site.
“Combining our specialist heavy transport equipment with our engineering experience of monopile handling, we are delighted to support the development of these significant offshore wind projects concurrently,” said Wouter Santen, Project Manager at Mammoet.
“Mammoet has a proven track record for managing the movement of monopiles safely and efficiently. Having them by our side during the planning stage has been invaluable. We look forward to working with them as we move into the assembly phase,” added Marc Wegman, Managing Director of Buss Terminal Eemshaven.