Thursday, May 28, 2026

US to provide plutonium from atomic bombs to fuel nuclear plants

Nuclear Power plant. (Reference image by from Carol M. Highsmith’s America, Library of Congress collection, taken from Rawpixel.)

The US is planning to distribute plutonium left over from Cold War-era weapons to commercial nuclear developers as part of the Trump administration’s efforts to accelerate the rollout of new reactors.

The Department of Energy has selected Oklo Inc. and four other firms for advanced negotiations to participate in the Surplus Plutonium Utilization Program, the Santa Clara, California-based company said in a statement Tuesday.

Closely held Exodys Energy, Shine Technologies, Standard Nuclear and Flibe Energy Inc. were also competitively selected for negotiations, the Energy Department said.

Under the program, the US will supply almost 20 metric tons of weapons-grade plutonium that can be converted into reactor fuel. Oklo is one of dozens of companies designing new nuclear power plants and has warned of potential shortfalls in the uranium supply chain that may hinder deployment. However, critics warn that distributing weapons-grade plutonium could lead to security concerns, and point to previous government efforts that have been costly failures.

“This program creates a pathway to use existing surplus material as bridge fuel for advanced reactors to bring more reactors online sooner,” Oklo chief executive officer Jacob DeWitte said in the statement. “Material that has been set aside for disposal can instead be converted into fuel to produce electricity through fission.”

Oklo will partner with the European nuclear provider Newcleo to use the material. Oklo shares gained 4.3% to $68.70 as of 4 p.m. in New York on Tuesday.

The Energy Department announced last year it would be accepting applications for the materials after previous efforts to turn some weapons-grade plutonium into fuel for commercial reactors failed, costing taxpayers billions.

“The Surplus Plutonium Utilization Program is anticipated to help companies unlock the next level of private funding to broaden domestic nuclear fuel supplies, spur innovation on American recycling technologies, and unlock private sector funding to fuel the nation’s nuclear renaissance,” the Energy Department said in a statement Tuesday.

Nuclear has regained some public support in the artificial-intelligence era because it can supply carbon-free power around the clock as demand for electricity climbs. Fission power is tantalizing to hyperscalers and governments seeking to win the AI race, but the technology is still unproven commercially and it will likely be several years before any new reactors are in service.

The plutonium program has doubters, especially after previous US efforts to convert weapons-grade material into reactor fuel faltered. The first Trump administration in 2018 pulled the plug on a federal effort in South Carolina after cost estimates for the Mixed Oxide Fuel Fabrication Facility swelled to nearly $48 billion with a completion date in the 2040s.

Revisiting the idea raises concerns about safety and proliferation, according to Edwin Lyman, director of nuclear power safety for the Union of Concerned Scientists.

“Knowing how complex and expensive it is to convert the material into reactor fuel, it just makes no sense that any private entity would be able to take this on and execute such a dangerous project,” Lyman said in an email. “The safest and most secure way to dispose of this surplus plutonium — an incredibly dangerous waste product — is to bury it deep underground.”

(By Will Wade, Ari Natter and Emily Forgash)


World Nuclear News


Oklo selected for US surplus plutonium programme


Nuclear technology company Oklo has been selected by the US Department of Energy for advanced negotiations under the Surplus Plutonium Utilization Program, which aims to turn designated surplus plutonium material into fuel for advanced reactors.
 
Oklo's rendering of an Aurora powerhouse (Image: Oklo)

The Department of Energy (DOE) announced plans in October last year for private companies to dispose of about 20 tonnes of surplus plutonium by making the materials available for advanced nuclear technologies. A Surplus Plutonium Utilization Program request for applications issued on 21 October describes the plutonium on offer, and the "thresholds" prospective applicants must meet. The DOE wants applications "with detailed recycling and processing plans, including funding commitments and schedule to utilise the surplus plutonium materials within DOE's inventories for nuclear fuel for reactors in the United States". Applications were due by 21 November.

Oklo said its selection - alongside four other advanced nuclear companies (Exodys Energy, SHINE Technologies, Standard Nuclear, and Flibe Energy) - supports the company's broader fuel strategy, which includes multiple pathways to source fuel to support advanced reactor deployment while domestic enrichment and fuel infrastructure continue to scale.

SHINE Technologies CEO, Greg Piefer, said: "We've spent more than a decade building the capabilities needed to handle complex nuclear materials - recycling used fuel, recovering isotopes, doing the kind of separations work this programme calls for. Turning surplus material that's been sitting in storage into fuel for the next generation of reactors is exactly the kind of problem we built SHINE to solve."

In partnership with France-headquartered innovative reactor developer Newcleo, Oklo would lead the utilisation of surplus plutonium, while Newcleo would bring relevant fuel experience and potential project capital, subject to definitive agreements, customary approvals, and applicable US security and safeguards requirements.

"Oklo and Newcleo view the programme as a pathway for disposition through use: converting material that already exists into fuel for advanced reactors, using it to generate reliable electricity, and consuming it through fission under stringent security, safeguards, and material control requirements," the companies said in a joint statement. "In doing so, the programme can turn a long-term material management challenge into a domestic energy source."

"Fuel supply constraints are a key throttle to advanced reactor development," said Oklo co-founder and CEO Jacob DeWitte. "This programme creates a pathway to use existing surplus material as bridge fuel for advanced reactors to bring more reactors online sooner. Material that has been set aside for disposal can instead be converted into fuel to produce electricity through fission."

Newcleo CEO and founder Stefano Buono added: "We are proud of this transatlantic partnership with Oklo to deliver on our promise of reducing nuclear liabilities through our fuel and reactor technologies. The US is taking a visionary approach to the fuel cycle, and we look forward to contributing to it."

In October 2025, Newcleo and Oklo signed an agreement to develop advanced fuel fabrication and manufacturing infrastructure in the USA. At the time, Newcleo said it was planning to invest up to USD2 billion "via an affiliated investment vehicle", with the investment spanning "multiple projects under US oversight" and aiming to "foster transatlantic cooperation that enhances energy security, and focus on creating a robust and resilient fuel ecosystem. Specific projects and investment amounts will be detailed in forthcoming definitive agreements".

In March this year, Newcleo announced it had initiated pre‑application engagement with the US Nuclear Regulatory Commission to support the future licensing of its first Lead-cooled Fast Reactor and an associated mixed‑oxide (MOX) fuel fabrication facility in the USA.

Newcleo is developing its Small Modular Lead-cooled Fast Reactor (SM-LFR) technology. According to the company's delivery roadmap, the first non-nuclear precursor prototype of its reactor is expected to be ready by later this year in Italy, the first reactor operational in France by the end of 2031, while the final investment decision for the first commercial power plant is expected around 2029. Newcleo plans to directly invest in a MOX plant to fuel its small modular lead-cooled fast reactors.

Oklo's Aurora powerhouse is a fast neutron reactor that uses heat pipes to transport heat from the reactor core to a supercritical carbon dioxide power conversion system to generate electricity. Building on the design and operating heritage of the Experimental Breeder Reactor II (EBR-II), which ran in Idaho from 1964 to 1994, it uses metallic fuel to produce electricity and usable heat, and can operate on fuel made from fresh HALEU or used nuclear fuel.

Agreement on UAE nuclear workforce development


The Emirates Nuclear Energy Company has signed a strategic cooperation agreement with the Department of Government Enablement – Abu Dhabi, represented by the Mawaheb Talent Hub, to establish a comprehensive framework for the training and employment of UAE nationals in the growing civil nuclear energy sector.
 
(Image: ENEC)

Mohamed Al Hammadi, Managing Director and Group CEO of Emirates Nuclear Energy Company (ENEC), and Mariam Al Musharrakh, Director General of GovTalent at Department of Government Enablement – Abu Dhabi (DGE), witnessed the signing of the agreement by Abdulla AlShimmari, Executive Director of National Workforce Enablement Sector at DGE, and Ahmed Alshamsi, Chief Human Capital Officer at ENEC.

Under the five-year agreement, the two parties will cooperate to qualify at least 100 UAE nationals holding high school diplomas, vocational diplomas, or postgraduate degrees. DGE's Mawaheb Talent Hub will provide ENEC with a curated list of candidates and grant access to its state-of-the-art facilities to conduct awareness workshops, technical assessments, and interviews.

ENEC will lead the development and funding of the training programmes and financial support for trainees. Upon successful completion of the programme and meeting hiring criteria, the selected trainees will be integrated into the workforce at ENEC and its subsidiaries.

"Since its inception, ENEC has been dedicated to cultivating a world-class team of Emirati professionals who are the backbone of our success at the Barakah Plant today and for the many decades of operations ahead," Al Hammadi said. "This agreement with the Department of Government Enablement – Abu Dhabi, allows us to expand our talent pipeline, ensuring that the next generation of UAE nationals is equipped with the expertise to lead and secure our nation's carbon-free future and drive long-term sustainable growth. This Initiative also supports the UAE's transition to a knowledge-based economy by equipping job seekers with specialised skills for high-tech industries."

DGE Undersecretary Ibrahim Nassir added: "We believe that the most important investment any nation can make is in its people. This agreement with ENEC reflects exactly that - a shared commitment to placing Emirati talent at the heart of one of the UAE's most strategically vital sectors. Through Mawaheb, we are not simply connecting job seekers to vacancies; we are building a pipeline of nationally qualified experts who can lead the UAE's clean energy future for generations to come. Partnerships of this depth and ambition are what transform national vision into lasting reality."

ENEC said the partnership builds upon its proven track record of human capability development. "To date, more than 2,000 Emirati talents have been involved in the development and operation of the Barakah Nuclear Energy Plant," it said. "Through six dedicated talent pipeline programmes, ENEC continues to empower future experts to manage the civil nuclear energy sector for decades to come."

Under a USD20 billion deal announced in December 2009, four Korean-designed APR1400 reactors have been built at the Barakah site by a consortium led by Korea Electric Power Corporation (KEPCO). First concrete for Barakah 1 was poured in July 2012, while that for units 2-4 was poured in April 2013, September 2014 and July 2015, respectively. The units entered commercial operation between April 2021 and September 2024. The Barakah plant - in the Al Dhafra Region of Abu Dhabi - is owned by ENEC and operated by Nawah, a joint nuclear operations and maintenance subsidiary of the ENEC and KEPCO. The plant provides about 25% of the UAE's electricity needs.

Assystem, AtkinsRéalis contracted to support EDF in the UK


French engineering group Assystem and Canadian engineering firm AtkinsRéalis have both been appointed by EDF and Sizewell C Limited to a new five-year Professional Services Framework.
 
The Hinkley Point C construction site, pictured in June last year (Image: EDF Energy)

EDF Energy manages the UK's eight nuclear power plant sites, five that are operating (Sizewell B, Torness, Heysham 2, Heysham 1 and Hartlepool) and two that have entered decommissioning (Hinkley Point B and Dungeness B). It took over the sites when it acquired British Energy in 2009. The company is also constructing the new Hinkley Point C plant in Somerset, and there are advanced plans for a replica of Hinkley Point C at Sizewell C in Suffolk.

Assystem has been selected as a strategic engineering partner and will have a leading role across the various contracts, covering engineering, digital expertise, project management, and construction management on Sizewell C and Hinkley Point C, two gigawatt-scale nuclear power plants in the UK, as well as work on EDF's existing nuclear generation and nuclear services.

"The four new framework agreements will strengthen the support Assystem provides to the UK's nuclear programme," Assystem said. "Under these contracts, the company will also support the design authority of the main licensees and contribute to delivering 6.6 gigawatts of new EPR-generated clean electricity to the UK grid."

Assystem, which has been contracted by EDF worldwide for more than 60 years, said this new partnership "highlights both Sizewell C's and EDF's long-term collaboration with Assystem, as the French multinational energy company continues to seed its investment into the UK's low-carbon energy infrastructure".

Last year, Assystem announced plans to double its UK workforce by creating 1,000 new engineering, digital, and project management jobs by 2030 to support the delivery of these crucial nuclear projects, boosting skills and regional economic investment across the UK – strengthening domestic nuclear capabilities and international industry collaboration between France and the UK.

"Assystem is proud to stand alongside EDF and Sizewell C as a strategic partner at this pivotal moment for the UK's new nuclear programme," said Andrew Bedford, Senior Business Unit Director, Nuclear New Build, at Assystem. "Our position on the Professional Services Framework not only strengthens our long-standing collaboration with EDF but also accelerates the delivery of world-class nuclear capabilities in the UK. With our commitment to double Assystem's UK workforce by 2030, we're bringing vital skills, innovation, and engineering momentum to help meet domestic energy transition needs."

AtkinsRéalis's role expands

The appointment of AtkinsRéalis to the Professional Services Framework extends the multidisciplinary work AtkinsRéalis delivers across EDF's existing fleet of nuclear power plants and its new-build Hinkley Point C programme for an initial five-year term, with the option to extend by a further five years. It also encompasses engineering services delivered at the Sizewell C nuclear new-build programme.

Under the new Professional Services Framework, AtkinsRéalis will support EDF Nuclear Services, EDF Nuclear Operations, Hinkley Point C and Sizewell C across more than 60 different technical and project delivery disciplines, from design and engineering to programme management and consultancy.

"The framework ensures AtkinsRéalis will continue to support EDF as a trusted delivery partner during a vital transition period as some of its existing plants enter vital life extension programmes, others shift towards the end of operational life, and as Hinkley Point C prepares for operations as the UK's first large-scale reactor for a generation," the company said. "The inclusion of Sizewell C will also help to realise the full benefits of replication as the AtkinsRéalis team applies the knowledge and experience from Hinkley Point C to the new build programme as it enters construction phase."

AtkinsRéalis President and CEO Ian Edwards said: "EDF has been a major client to our Nuclear business for over two decades, and this framework is a continuation of the vital work we have been delivering across operational and new build programmes for EDF Energy and Sizewell C in the UK. Our proven ability to provide a breadth of capabilities strengthens our role as a strategic partner with EDF and reinforces our leading position as a truly end-to-end engineering services provider in the global nuclear industry."

"There are over 3000 experienced AtkinsRéalis employees working across civil nuclear programmes in the EMEA region, from structural and mechanical engineers to specialists in digital design, project delivery and decommissioning," added Joe St Julian, President, Nuclear, AtkinsRéalis. "This new framework enables EDF and Sizewell C to seamlessly access our specialists for any of their UK programmes, reinforcing our ability to act as a trusted delivery partner during this crucial period of their nuclear operations."

Third application lodged for Swedish SMR plant


Swedish nuclear technical services provider Studsvik has submitted an application to the Swedish government to construct a small modular reactor power plant at its existing site in Nyköping in Södermanland County.
 
(Image: Jonatan Klefbom/Government Office)

The application was handed to Johan Britz, Minister for Employment and acting Minister for Climate and the Environment, by Studsvik's President and CEO Karl Thedéen and Christian Sjölander, Head of New-Build Projects. The application concerns the construction of two to four light water-cooled and light water-moderated nuclear reactors with a combined capacity of between 600 MWe and 1,400 MWe. Subject to permits, the company is aiming for commercial operation of the first reactors in the 2030s.

"Sweden has decided to build new nuclear power, and the country needs new firm, fossil-free capacity on a scale not seen in a generation," Thedéen said. "Few sites in the country are as ready to contribute as Nyköping. Studsvik combines an active nuclear site and decades of technical expertise with one of Sweden's most experienced new-build development teams. Our intention is to turn that into real capacity for the Swedish grid."

Studsvik has previously said its Nyköping site is in a strategic location and houses the company's broad expertise in nuclear technology, including fuel and materials technology, reactor analysis software and fuel optimisation, decommissioning and radiation protection services as well as technical solutions for handling, conditioning and volume reduction of radioactive waste.

Sjölander added: "The application is the start of a permitting process. Our task now is to do the technical, environmental and community work needed to build confidence among the municipality, the authorities and our neighbours that this is a project worth backing - and to keep that dialogue going at every stage."

The government review is the first stage of an extensive permitting process that will also involve the municipality, the Land and Environment Court and the Swedish Radiation Safety Authority. Any future establishment would require further reviews, permits and approvals under Swedish nuclear, environmental and planning legislation, alongside continued local engagement.

Nyköping Municipality noted that it has not currently taken a position on the possible construction of the plant. "The issue will be examined within the framework of the formal permit process that applies to nuclear facilities in Sweden," it said. "According to the legislation, the municipality has a so-called veto right and can say 'yes' or 'no' to the establishment. In order for the establishment to be carried out, the municipality must say 'yes'. The issue is decided by the municipal council and handled at an early stage of the process."

The Nyköping project would be part of Studsvik's ReFirm SMR programme - which came into the group with the acquisition of Kärnfull Next earlier this year - aiming to expand carbon-free and dispatchable energy production across southern Sweden. ReFirm is also pursuing projects at Valdemarsvik, Motala and Karlshamn.

In February, the Swedish government announced several proposed measures to make it easier to establish new nuclear power in the country. ​The new legislation introduced an early-stage government approval process designed to improve predictability and accelerate the deployment of new nuclear capacity. The following month, Kärnfull Next submitted an application to build a 1,200–1,600 MWe power plant based on SMRs in the municipality of Valdemarsvik in Östergötland county in southeastern Sweden, becoming the first application under the country's new Act on Government Approval of Nuclear Facilities. It marked the first application for the establishment of new nuclear power in Sweden in 50 years.

"Further applications may follow as the group's project portfolio matures," Studsvik said.

Earlier this month, Swedish lead-cooled small modular reactor technology developer Blykalla submitted an application to the government to construct a power plant in Norrsundet, Gävle, in east central Sweden, comprising six SEALER reactors.

"Developments for a new start of Swedish nuclear power and an effective climate transition are now proceeding rapidly," said Acting Minister of Climate and Environment Johan Britz. "The fact that the government has now received another application for new nuclear power clearly shows that the legislative changes that the government has implemented create the right conditions for companies to want to invest in new nuclear power."

First RITM-200 reactor unit manufactured for floating nuclear plant


The RITM-200C reactor will be one of two which will together be installed on the first of Russia's planned fleet of floating nuclear power units.
 
(Image: Rosatom)

The 58 MWe capacity reactor unit has been manufactured by Rosatom's Machine-Building division at the ZiO-Podolsk plant near Moscow.

Serial production of the floating power units (FPU-106) is under way to power a copper mining industrial cluster in the Chukotka Autonomous Okrug. This will be the first such project to provide carbon-free energy for industrial production, with four floating power units earmarked for it.

Alexey Likhachev, Director General of Rosatom, said: "Rosatom continues to expand its range of floating power units, and the completion of the first reactor for the lead floating nuclear power unit is a significant milestone. Today, Russia is the only country with an operating floating nuclear power plant, and we intend to maintain our leadership in the development of small-scale technologies, offering innovative and low-carbon energy solutions to our partners in Russia and abroad."

The RITM-200C is a modification of the RITM-200 reactors in operation on the latest series of nuclear-powered icebreakers. In total, Rosatom's Machine-Building division is in various stages of producing 14 RITM-200-based reactor units for icebreakers and floating power units.

Russia's first floating nuclear power plant, the Akademik Lomonosov, has been operating in Chukotka since 2020. During this time, it has generated more than 1.2 billion kWh of electricity and avoided more than 400,000 tonnes of greenhouse gases, Rosatom said.

The state nuclear corporation says that the RITM-200 reactors have proved their effectiveness in Arctic conditions. It says that, in floating power units, they will be able to effectively address current or potential energy shortages in remote, offshore areas. As well as producing floating power units for domestic use, Russia also sees considerable export potential.

According to past presentations, the FPU-106 units would provide 106 MWe, the refuelling interval would be every 5 to 7 years, and there would be a service life of about 40 years. A version of a floating power unit targeting international markets would be 100 MWe with a refuelling interval of 10 years and a service life of 60 years.

Vessel for Newcleo technology demonstrator installed



France-headquartered innovative reactor developer Newcleo announced that the main vessel for its PRECURSOR non-nuclear demonstrator has been installed at the ENEA Brasimone Research Centre, near Bologna, Italy.
 
(Image: Fucina Italia)

To support Newcleo's advanced reactor R&D programme, SRS Servizi di Ricerche e Sviluppo Srl has recently completed the installation of OTHELLO, a 2 MW loop-type lead test facility for qualifying components and materials in lead-cooled environments. SRS is currently working on the installation of PRECURSOR, a 10 MW pool-type non-nuclear test system scheduled for completion in 2026 at the ENEA Brasimone Research Centre. PRECURSOR - which will use electrical heaters to simulate the nuclear fuel - will reproduce the company's demonstration LFR-AS-30 reactor at a reduced scale.

The vessel for PRECURSOR was manufactured in Piombino, in Tuscany, by Fucina Italia srl and engineered by Newcleo together with SRS - all companies within the Newcleo group.

The dimensions are slightly smaller than those of Newcleo's commercial 200 MWe version of its lead-cooled fast neutron reactor, the LFR-AS-200. The vessel weighs just over 20 tonnes empty, but once filled with lead and internal components the full mass will exceed 155 tonnes.

"What makes [PRECURSOR] truly unique is that it will generate electricity using a turbine,the only component we didn't manufacture but just completed by our partner FINCANTIERI, making it potentially the only facility in the world to do such a complete demonstration of reactor functionalities," Stefano Buono, CEO and founder of Newcleo, said.

Newcleo said PRECURSOR is also the demonstration of the company's vertical integration capabilities: engineering, fabrication, transport, and installation.

Newcleo is progressing with the construction of its demonstration LFR-AS-30 reactor, with a power output of 30 MWe, which it plans to locate in Indre-et-Loire in the Chinon Vienne et Loire community of municipalities in western France. This first reactor would offer, in addition to electricity generation, advanced research services and the production of medical isotopes. The company continues administrative procedures in close cooperation with local elected officials, aiming for commissioning by 2031.

Europe’s Arctic Oil Dilemma Deepens as Supply Fears Grow

A dozen financial institutions from Scandinavia have urged the European Commission to remain firm in its opposition to Arctic oil drilling even as the bloc faces physical oil shortages in weeks, according to energy experts.

“The Arctic is one of the planet's most vulnerable ecosystems and home to unique wildlife .... Further oil and gas expansion would add pressure to these globally significant ecosystems, by increasing the risk of oil spills and leakages,” the lenders said in a letter organized by the Nordic Center for Sustainable Finance and sent to the Commission today.

The letter features more than 130 signatories from the financial and energy industries, trade unions, and individuals, including Germany’s former economy minister, now senior Arctic analyst at a Danish research facility.

“Further oil and gas expansion would add pressure to these globally significant ecosystems by increasing the risk of oil spills and leakages, which could cause irreversible environmental damage, while increased shipping, noise, and physical disturbance would further intensify the environmental stress on the region,” the letter also said.

The European Union has increased its imports of U.S. crude oil significantly lately to replace lost Middle Eastern supply, but, as Carlyle Group’s Jeff Currie recently warned, the U.S. oil, coming from inventories, will run out sooner rather than later, leaving the EU scrambling for supply. The EU has banned imports of Russian crude.

Norway, which is not a member of the EU, is campaigning for a change in attitude about Arctic oil drilling as it faces a decline in oil production due to natural depletion at its North Sea fields. The Nordic country is the biggest local supplier of the EU with oil and gas, as the UK decimates its oil and gas industry in favor of a transition to alternative energy and electrification.

By Irina Slav for Oilprice.com

 

Mozambique Contests TotalEnergies' $2 Billion Cost from LNG Project Delay

The government of Mozambique disagrees with TotalEnergies’ estimate that the years-long delay in the Mozambique LNG project has cost it and its partners $2 billion in overruns, a source familiar with the matter told Bloomberg on Wednesday.

TotalEnergies and its partners in the $20-billion Mozambique LNG project had to suspend work and declare force majeure for several years amid serious concerns about security due to Islamist attacks near the site.

A recent audit report by UK-based consultancy Bayphase could not confirm the costs TotalEnergies claims to have incurred due to the delay. So Mozambique is not inclined to accept the $2-billion cost overrun estimate, according to Bloomberg’s anonymous source.

Mozambique has yet to approve an updated development plan for the massive LNG export project, which could transform the economy of one of Africa’s poorest countries and increase supply to the global LNG market in the medium to long term.

However, in order to approve the updated plan, Mozambique and the project developers need to be on the same page about costs. The government and the French supermajor continue discussions on the costs and the plan and they could still reach an agreement on how to proceed, Bloomberg’s source said.

After a five-year hiatus, in January 2026 TotalEnergies formally re-launched the Mozambique LNG project.

At the end of last year, TotalEnergies lifted the four-year-long force majeure on the Mozambique LNG project, which was stalled due to the precarious security situation near the site of the planned export facility. The project site is close to the town of Palma in the Cabo Delgado province, where Islamic State-affiliated militants were active for years.

In the spring of 2021, following Islamist militant attacks in towns close to the construction site, TotalEnergies declared force majeure and suspended works on the project. Mozambique LNG was Africa’s largest foreign investment when announced.

Due to the force majeure, the goal to achieve first LNG production has slipped, first to 2027, and later, to 2029.

By Tsvetana Paraskova for Oilprice.com

 

Dallas Fed Pres Says World Needs To Consume Less Oil And Gas

Federal Reserve Bank of Dallas President Lorie Logan says that the world may eventually have to reduce its consumption of oil and natural gas to bring volatile energy markets into a balance. Speaking at a closed-press conference, Logan emphasized the reality of physical supply constraints, noting that the current rate of oil and gas consumption is not sustainable. Logan expects energy markets to stabilize before too long, though it may force a downward adjustment in global consumption.

The Bank of Dallas chief did not provide near-term economic forecasts; however, she was one of three Fed policymakers who strongly objected to post-meeting statement language that hinted the Fed's next move would be an interest rate cut following the April 2026 Federal Open Market Committee (FOMC) meeting. Logan argued that forward guidance should accurately reflect the policy outlook, and that because inflation risks were elevated, an interest rate hike was just as likely as an interest rate cut.

The dissent was heavily driven by surging energy and oil prices tied to the ongoing conflict in the Middle East. The three officials expressed deep concerns that higher energy prices would trickle down to consumer goods and transportation, risking prolonged inflation above the Fed's target inflation rate at 2.0%.

Logan spent a significant portion of her speech urging the central clearing of the Fed's own Treasury securities, warning that highly leveraged investors pose a risk as leveraged positions can unwind rapidly during sudden price or funding shocks.

Logan previously noted that U.S. oil producers are highly unlikely to ramp up production in the near term, pointing out that producers require prolonged, stable high prices to justify investing in the equipment needed for expansion. Global energy markets have been facing massive volatility due to an ongoing Middle East conflict, with the continued closure of the Strait of Hormuz taking ~14% of the world's oil supply offline resulting in a heavy drawing-down of global storage reserves.

By Alex Kimani for Oilprice.com

 

IEA Forecasts a $3.4 Trillion Energy Investment Boom

Global energy investment is set to jump to $3.4 trillion this year, the International Energy Agency said today, noting that the rise will be driven by countries’ efforts to address the second energy crisis in less than five years.

Of the global total, $2.2 trillion is expected to be spent on electricity, including grids, storage, nuclear, wind, solar, and efficiency, the agency said, with the balance of $1.2 trillion to be poured into oil and gas, as well as coal. Interestingly, the IEA sees crude oil investment specifically declining this year, for the third year in a row, to $500 billion, despite the price surge triggered by the war in the Middle East.

Natural gas investment, on the other hand, is seen surging to $330 billion, which would be the highest annual total investment in gas in ten years, the IEA said. Yet investments in solar power are expected to top this, reaching $365 billion in 2026. Total investments in what the IEA calls renewable power are estimated to reach $665 billion.

“We are in the midst of the largest energy security crisis the world has ever faced – and I believe this will reshape investment strategies globally, with parallels to the major changes the energy world witnessed after the oil shocks of the 1970s,” IEA’s secretary-general Fatih Birol said.

“We are already seeing intensified efforts by both producer and consumer countries to diversify trade routes and energy sources – such as advancing new pipelines and other supply infrastructure, on the one hand, and turning more to domestically available resources, on the other,” Birol added.

These efforts include a surge in interest in Canadian oil and gas, and plans by the United Arab Emirates’ national oil company ADNOC to double the capacity of its oil pipeline to Fujairah as soon as next year as a means of bypassing the Strait of Hormuz.

By Irina Slav for Oilprice.com

FirstEnergy Seeks Ohio Rate Hikes Under New Three-Year Grid Plan

FirstEnergy’s Ohio electric utilities have filed a three-year rate plan with state regulators that would fund roughly $800 million annually in grid upgrades while gradually increasing customer bills to support reliability investments.

FirstEnergy’s Ohio subsidiaries - Ohio Edison, The Illuminating Company, and Toledo Edison - submitted their first Three-Year Rate Plan to the Public Utilities Commission of Ohio, outlining proposed investments in electric infrastructure, vegetation management, and customer assistance programs.

Under the proposal, the company would invest an average of $800 million per year in poles, wires, and grid technologies designed to reduce outages and speed restoration times. Another $83 million annually would be directed toward tree trimming and vegetation management, one of the leading causes of outages across Ohio.

The filing comes as U.S. utilities accelerate spending on grid hardening and modernization amid rising electricity demand, aging infrastructure, and increasingly severe weather events. Multi-year rate plans have become more common across regulated utility markets because they provide greater visibility into capital spending and reduce the frequency of rate cases.

FirstEnergy said the proposal is also aimed at making customer bill increases more gradual and predictable. Residential customers using around 1,000 kilowatt-hours per month would see average annual bill increases ranging from 2.2% to 2.8% over the three-year period, depending on the utility territory.

The plan includes expanded customer assistance initiatives, including the creation of a new $4 million Energy Assistance Fund in 2029 through the consolidation of existing programs. The company also proposed a separate $1 million Emergency Energy Support Fund for customers facing disconnection or attempting to restore service.

Additional energy-efficiency and conservation programs would continue through the duration of the plan, including weatherization assistance, smart thermostat rebates, and programs aimed at helping customers better manage electricity consumption.

The proposed rate adjustments would apply only to the distribution portion of customer bills and would not affect electricity supply costs, which are determined separately by competitive suppliers.

 The Public Utilities Commission of Ohio will now review the filing and open the proposal to public comment before issuing a decision.

By Charles Kennedy for Oilprice.com

 

LG Energy Solution and DTE Sign 6-GWh Michigan Battery Storage Deal

LG Energy Solution Vertech has signed an agreement with DTE Energy to supply 6 GWh of battery energy storage systems for eight projects in Michigan.

The deal includes the delivery of battery storage systems with 1.5 gigawatts of power capacity and 6 gigawatt-hours of energy storage capacity to DTE Energy over a two-year period.

The projects will use battery cells manufactured in Michigan and at other facilities in the United States and Canada. The companies said all eight projects will meet domestic content requirements.

The systems are designed to store power when generation exceeds demand and discharge electricity during peak demand periods, helping DTE reduce grid strain and improve reliability.

The deal comes as utilities across the United States are expanding battery storage to manage rising electricity demand, renewable generation, and grid volatility. In Michigan, DTE is also preparing for new load growth from data centers, including Oracle’s planned data center in Saline Township.

DTE said the battery systems funded through the Oracle contract would be sufficient on their own to meet the utility’s share of Michigan’s 2030 clean energy standard for battery storage.

The agreement also reinforces Michigan’s role in the North American battery supply chain, with LG Energy Solution tying the storage rollout to domestic manufacturing and job creation.

By Charles Kennedy for Oilprice.com

 

High Freight Costs Force Asian Buyers to Cancel U.S. LPG Cargoes

The Middle East supply crunch has led to soaring freight rates to ship liquefied petroleum gas (LPG) to Asia from other regions, prompting some buyers to cancel U.S. cargoes due to the high shipping costs.

Buyers have so far canceled at least two cargoes of LPG, the main cooking fuel in India and a key petrochemicals feedstock in China, which were previously slated to depart from the U.S. Gulf Coast in June, sources with knowledge of the matter told Bloomberg on Thursday.

Buyers are also in discussions to cancel additional cargoes as the high freight costs eat into the margins of the LPG importers, according to Bloomberg’s sources.

Buyers in Asia, including top energy importers China and India, have turned to U.S. LPG to partially replace the supply lost from the Middle East.

LPG exports from the Persian Gulf supplied 92% of India’s and 26% of Southeast Asia’s imports in 2025, according to data by Vortexa.

With Middle Eastern exports now constrained, the U.S. is sending higher volumes of LPG, propane, and butane to Asia.

“As uncertainty persists over Middle East Gulf LPG production and exports, US LPG is likely to remain firmly positioned in the Asian markets at least through May – H1 June,” Anna Zhminko, associate market analyst at Vortexa, said at the end of March.

However, the soaring freight rates are now easing demand for U.S. LPG cargoes, according to Bloomberg’s sources.

Meanwhile, India, which uses LPG as its main cooking fuel and has felt shortages since the Iran war choked supplies at the Strait of Hormuz, seeks to boost its supply agreements. Earlier this month, India signed a strategic agreement with the United Arab Emirates to receive liquefied petroleum gas from the UAE.

In addition, India-bound LPG tankers have started to move through the Strait of Hormuz with transponders off on part of the route as dark activity rises among commercial shipping and a growing number of vessels exit the chokepoint.

By Tsvetana Paraskova for Oilprice.com

Europe Turns to Canadian LNG as Gulf and Russian Gas Risks Deepen

A number of European energy utilities have expressed interest in buying the future output of the Ksi Lisims LNG project, which will be Canada’s second export facility for liquefied gas.

The Ksi Lisims LNG facility already has offtake agreements for 5 million tons in annual production, but the companies behind the project want to secure commitments for another 3 to 4 million tons, the chief executive of Western LNG, the project leader, told Reuters in an interview.

The Ksi Lisims plant will have a total annual capacity of 12 million tons of superchilled gas, and once the additional purchase commitments are secured, the project will proceed to a final investment decision, the publication also reported.

The Reuters interview follows news that Ksi Lisims had secured an offtake commitment from Germany’s state-owned utility SEFE, set up specifically to boost the country’s supply of natural gas. This is Ksi Lisims LNG’s first commitment from a European company, as the continent scrambles to find gas supplies that are not under sanctions and do not originate in a Gulf state.

The Ksi Lisims LNG facility, if the final investment decision is made, will produce gas from two floating platforms, aiming for a low-emission profile in tune with the federal Canadian government’s priorities, which recently changed somewhat, putting the exploitation of the country’s abundant hydrocarbon resources higher.

The markets for this LNG will be in the Pacific Basin, per the project’s website, with a focus on Asia, where demand for low-emission fuels is growing. However, the talks with European energy buyers suggest strongly that plans for future markets are flexible and the gas will go where it is needed, possibly regardless of the price, since European importers do not really have a lot of options to choose from when it comes to gas sellers.

By Irina Slav for Oilprice.com