AUSTRALIA

EPA deals ‘major blow’ to Woodside’s multibillion-dollar gas drilling plan at Browse basin

Adam Morton Climate and environment editor

THE GUARDIAN  AUS
Mon, 5 August 2024 

An aerial view of Scott Reef, which sits over the underwater Browse gas basin.Photograph: Greenpeace


A multibillion-dollar Woodside Energy gas export development off Western Australia’s north-west has been deemed “unacceptable” by the state’s Environment Protection Authority due to its impact on marine life at Scott Reef.

The EPA’s assessment of Woodside’s Browse liquefied natural gas (LNG) proposal was revealed in response to a freedom of information request by WAToday.

It follows scientists raising concerns that extraction at the Browse basin, about 300km off the Kimberley coast, could damage a coral reef ecosystem that is home to more than 1,500 species, many unique to the area. They identified risks to migrating whale species, the possible sinking of a beach used for nesting by endangered turtles and the potential of an oil spill in a pristine environment.


Related: Australia’s north-west reefs teem with life – but they are also at the centre of a massive fossil fuel expansion

The EPA refused WAToday’s request for information but said in its response it had told Woodside in February that its preliminary view was that “the proposal was unacceptable”.

Browse is Australia’s largest untapped conventional gas field. Woodside’s proposal involves drilling wells within about 3km of the reef and piping gas 900km for processing at the North West Shelf LNG processing plant at Karratha, on the Indigenous-heritage rich Burrup peninsula. It expects it to deliver 11.4m tonnes of LNG a year.

It is part of a proposed gas expansion that analysts say could be Australia’s greatest contribution to global heating if fully developed. Woodside’s “Burrup Hub vision” also includes the Scarborough gas field, the expansion of the Pluto LNG processing facility and extending the life of the North West Shelf plant by 50 years.

The plans have been broadly backed by senior members of the state and federal Labor governments, including the premier, Roger Cook, and the federal resources minister, Madeleine King, but some stages are yet to be approved under state and national environment law.

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The EPA position is not final; Woodside has an opportunity to provide more information. The authority will then make a recommendation to the state’s environment minister, Reece Whitby. The minister does not have to follow the EPA’s advice.

But the Conservation Council of Western Australia said even a preliminary view by the EPA that Browse should be rejected was a “significant and historic finding”. It said the authority had recommended against only two of 100 oil and gas proposals since the mid-1980s.

The council’s executive director, Jess Beckerling, said the revelation was “a major blow” to Woodside’s plan.

“The EPA has now said what we knew all along – the Browse project would be devastating for WA’s environment, and no government should let it proceed,” she said. “It is now incumbent on the WA and federal governments to respect this independent scientific advice and expert opinion, and refuse Woodside’s application to develop Browse.”

Greenpeace Australia Pacific’s chief, David Ritter, said the Burrup Hub was “an irredeemably bad project” and called on Plibersek to “put this project out of its misery, for once and for all”.

“This singular decision will come to define Labor’s legacy on environmental protection,” he said. “We urge Minister Plibersek to do the right thing and to choose a safe and sustainable future for our children over Woodside’s nature-wrecking pursuit of profit.”

Cook said the government wanted the Browse development to go ahead. He said it was a “difficult and complex” project and that conversations between Woodside and the EPA about addressing “issues of concern” were continuing.

“The EPA are there to assess these projects and make sure that we can mitigate against any negative impacts on the environment, and that’s why they are obviously in deep discussions with the government in relation to that project,” he said, according to the West Australian.

Cook said Browse would be “an important part of not only Western Australia’s gas supply, but making sure that we can assist our south-east Asian and north Asian partners to decarbonise their economies”.

A spokesperson for the federal environment department said it had paused assessment of the Browse project and the North West Shelf gas plant’s life extension until it received further information from the WA government and Woodside.

A Woodside spokesperson said Browse was “an important resource that could help address the shortfall of domestic gas in Western Australia forecast from the early 2030s and support energy security in Asia”.

“We continue to work with relevant regulators to progress environmental approvals for Browse,” they said.

The Institute for Energy Economics and Financial Analysis challenged the suggestion by Australian and Japanese leaders that the Asian country needed Australian gas to maintain its energy supply. The thinktank’s analysis found demand for gas had fallen in Japan over the past decade and the country was selling more LNG overseas than it bought from Australia.

 

Panama Canal Continues Progress Toward Normal Operations

Panama Canal continues to raise the number of daily transits (file photo)

Published Jul 31, 2024 6:06 PM by The Maritime Executive

After experiencing one of the worst droughts in its history, Panama highlights it is continuing to move in the right direction restoring capacity at the Panama Canal. The Panama Canal Authority reports it will add back further slots for daily transits in the coming weeks bringing it close to previous levels and a nearly full operating depth.

At the end of July, the Panama Canal Authority increased the total number of transits to 34 per day. Speaking this week with Reuters, Deputy Administrator Ilya Espino highlighted that they will add one additional slot next week, bringing as of August 5 the total to 35 daily transits. Then in September, another slot will be added to bring the total to 36.

The Panama Canal Authority has previously said its target was to return to 36 to 39 daily transits between the newer Neopanamax and original Panamax locks. At the peak of the water crisis, the Panama Canal Authority had lowered the transits to a total of 22. They had mapped a further step to 18 daily transits but were never required to implement those restrictions.

Espino highlighted that normally the Authority is only restricting vessel draft during the summer months. They are still holding a cap on the number of transits as well but expect due to efforts and the early return of the rainy season the situation will continue to ease.

Currently, the draft is set at 46 feet which permits most of the large vessels to proceed as normal at the Canal. Earlier this year, with the draft restricted LNG carriers were diverting, and large containerships were only able to carry partial loads. Some were transshipping boxes across the Isthmus by rail. Maersk for a time was substituting a double-ship deployment with boxes transferred from ship to ship using the rail links to avoid having to make the transit.

Water levels in Gatun Lake, which is the reservoir for the Canal, and also supplies drinking water to the population, have been rising with the onset of the rainy season, which typically continues for several more months.  Today, the water level in the Gatun Reservoir is at 84 feet and the Authority is expecting based on weather forecasts that it will rise at least two more feet by October. It peaked at 88 feet in December 2022 but had fallen to 79 feet as of June 2023. 

The Panama Canal Authority implemented various water-saving steps including recycling water and double locking where two smaller vessels made the transit in tandem. That helped along with the restrictions on the number of transits and vessel draft to maintain the water level at 79 to 80 feet. However, it also meant that there were longer waits and a pile-up in the number of vessels queuing for the transit.

While the Canal is nearly back to normal on the number of daily transits, the draft is still down currently four feet from the peak. At the beginning of 2023, the Panama Canal was accommodating vessels with a 50-foot draft.

Longer-term, the Authority has mapped out a plan to create a second reservoir to help it manage the impact of climate change. The development of railroads, including efforts in Mexico, is also being presented as an alternative route for cargo.

 

Echandia Joins the Growing Green-Propulsion Industry in Washington State

Washington Gov. Jay Inslee (second from left) joins the ribbon-cutting for the new Echandia factory, July 31 (Echandia)

Published Aug 1, 2024 4:00 PM by The Maritime Executive

 

In a sign of the favorable investment climate in the U.S. shipbuilding supply chain, Swedish battery maker Echandia has decided to set up a manufacturing plant in Washington State, just 50 miles from Norwegian-owned competitor Corvus.

"The US market holds immense strategic importance for us, and this represents a pivotal step in our rapid expansion," said Fredrik Hellström, CEO of Echandia Marine AB, in an announcement Thursday. "We look forward to being part of the thriving Washington business community for many years to come."

Echandia predicts that the U.S. maritime electrification market will grow in the years ahead, and Washington is a promising location. The Washington State Ferry system - the largest in the United States - has a legislative mandate to transition its 21-vessel fleet to battery-hybrid operation by 2040, at an estimated cost of $4 billion. The invitation to bid for the first five hybrid vessels was released in May.

"Washington is leading the world’s high-tech revolution, putting people to work on solutions that will change the world for the better," said Washington Gov. Jay Inslee in an accompanying statement. "Echandia will continue that right here in Marysville, putting brilliant Washingtonians to work and accelerating the decarbonization of maritime transport."

Echandia is the second maritime-battery firm to start production in Washington. In 2022, Norwegian-owned battery system builder Corvus Energy announced the construction of a new factory at the Port of Bellingham, Washington, north of Marysville on the I-5 corridor. The new manufacturing plant officially opened in January 2023, and it has an annual output of 200 MWh of battery storage system capacity. Corvus has existing battery factories in Norway and British Columbia, but it wanted to expand production to meet growing U.S. demand. 

Echandia and Corvus are part of a growing trend of foreign direct investment in the U.S. shipbuilding industrial base, all by firms from allied nations. In addition to longstanding foreign investors like Fincantieri, newcomers from South Korea and Canada are looking to enter the market. In April, Hanwha Ocean attempted to purchase Austal USA by bidding for parent firm Austal Ltd. The bid was turned down, but Hanwha successfully acquired Jones Act shipbuilder Philly Shipyard in June. In addition, Canada's Davie Shipbuilding recently committed to investing in a U.S. yard for icebreaker production, pending identification of the right partner. 

WSC Presents Fund Plan to Support Green Fuels Ahead of IMO’s MEPC Session

WSC proposes a fund to support demand and drive production of green fuels (file photo)

Published Jul 31, 2024 7:03 PM by The Maritime Executive

 

 

The World Shipping Council, which represents the container and vehicle transport sectors, has refined its proposals to the International Maritime Organization for a financial mechanism that it believes will create price equality and drive the adoption of green fuels. The group joins others that are lining up with their competing proposals ahead of the next MEPC session, 82 which is scheduled to run from September 30 to October 4.

Experts expect a contentious session as the IMO looks to review the draft framework for decarbonization efforts and supporting research. The last session in March set the groundwork for the agenda which promises to confront key issues on the path to decarbonization as well as other key issues including new Emission Control Areas.

Industry groups and members are also targeting key elements of the decarbonization effort. For example, calls are increasing for revisions to address the shortcomings in the Carbon Intensity Index (CII). 

"IMO member states have a unique opportunity to decarbonize the world’s ocean supply chains. We do not have time for half measures,” said Joe Kramek, the recently appointed President & CEO of the WSC. “The IMO's regulations must make it possible for green fuels to compete with fossil fuels, to drive the transition effectively. Anything less risks raising transportation costs without achieving the climate progress the world needs."

The WSC like many others highlights the concern that green fuels are far more expensive than traditional fossil fuels. They are also concerned about supply and production capacity. The working premise in much of the industry is that if the price of green fuels is addressed ensuring demand from operators will drive investments in production. The WSC points out that 60 percent of the newbuilds on order for the container and vehicle sector are designed to use green fuels further evidence that demand will emerge for these alternatives.

"For shipping’s energy transition to take place, green maritime fuels must be available at scale, requiring billion-dollar investments by energy producers. For these investments to occur, the IMO must adopt regulations that not only increase fossil fuel prices but also make green fuels a viable alternative,” asserts Kramek.

The WSC’s proposal to stimulate the necessary levels of investment in green fuel production calls for the creation of a fund which they call the Green Balance Mechanism. A regulatory measure, it would place a price on fossil fuel use. To bridge the gap between higher-priced green fuels and traditional fossil products, the WSC allocates funds from the older fuels to lower GHG-intensity fuels. 

The proposed fee applies to fossil fuels and is calculated on an annual basis. It would be adjusted based on the amount of green fuel use and market prices as well as progress on reaching the initial goal of a 65 percent reduction in industry carbon emissions. Further, they propose to reward those offerings that create the greatest well-to-wake reductions with higher financial allocations.

The World Shipping Council has submitted updated designs for its proposals based on a positive response and input from IMO member states and other stakeholders. They provided a draft of the regulatory text and are working to build support for their proposed approach.

The Green Balance Mechanism proposal also includes a framework to create a parallel IMO Net-Zero Fund. The purpose would be to raise funds for research, development, and demonstration projects and climate mitigation initiatives.

Similar ideas for funds have been presented to the IMO during the past sessions. Observers believe it is likely that MEPC will adopt some form of the fund concept as a critical tool to support the development of green fuels. The industry widely accepts that steps will be required to level the divide between traditional and alternative fuels, although many of the proposals also call for greater government involvement to drive the transition. 

OTG Recognizes Methanol’s Rising Popularity as Alternative Fuel of Choice

(Left to right): Knut H. Mikalsen & Johan Gustafsson

Published Jul 31, 2024 1:48 PM by The Maritime Executive

 

[By: Ocean Technologies Group]

Ocean Technologies Group (OTG), the global leader in maritime Human Capital Management and operational technologies, has launched a pioneering new e-learning title: Methanol Fuel Safety.

As the world looks to reduce its dependency on fossil fuels in favour of cleaner energy, methanol has emerged as an increasingly popular option due to its low emissions, production versatility and cost-effectiveness when compared to other alternative fuels. Recent data indicates methanol has overtaken liquified natural gas (LNG) as the preferred alternative fuel for new ships in 2023.

According to the Methanol Institute, there are currently 251 methanol newbuild vessels on the water or in the order book. Well-established technologies also allow for easy conversion of existing marine internal combustion engines to run on methanol. Most methanol orders are for containerships, with a few for bulk and car carriers. Although LNG remains popular, particularly for new builds in container and car carrier segments, the total number of LNG orders fell from 222 in 2022 to 130 in 2023. These figures reflect the industry's broader move towards exploring various alternative fuels to achieve a greener future.

Recognising the importance of this trend and in response to customer desire to start preparing their seafarers for new fuels, OTG has developed a new e-learning title on Methanol Fuel Safety. The course curriculum aligns with ongoing work in industry groups to establish training standards for working safely with new fuels. This comprehensive programme provides seafarers with essential knowledge on safe handling and storage of methanol fuel and provides guidance on managing leaks and fires.

The title considers all applicable industry regulations and guidelines available such as “The International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code)” and the IMO’s interim guidelines for “The Safety of Ships Using Methyl/Ethyl Alcohol as Fuel.”

“It is really important for our customers to ensure that their seafarers stay ahead of the curve and have the knowledge, skills and defined competencies to handle new fuels safely before they are required to work with them,” said Knut Mikalsen, Director of Learning Solutions for OTG.

“At OTG, we’re committed to engaging with customers and key industry stakeholders to develop reliable training standards that can help mitigate potential risks and enable seafarers to work safely with these new fuels while maintaining the highest standards of operational excellence.

With a rapidly evolving space such as decarbonisation, e-learning offers a key advantage in that titles can be swiftly updated to ensure the latest information and best practices are always available wherever and whenever there is a need,” added Johan Gustafsson, Chief Revenue Officer at OTG.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

ClassNK Issues World's First AiP for Bunkering Boom for Ammonia Fuel

3D model of fuel ammonia bunkering boom

Published Jul 31, 2024 12:46 PM by The Maritime Executive

 

[By: ClassNK]

ClassNK has issued an Approval in Principle (AiP) for a design concept of the ammonia fuel bunkering boom, which is jointly developed by Nippon Yusen Kabushiki Kaisha (NYK Line) and TB Global Technologies Ltd. This is the world’s first AiP certification for the design of a bunkering boom for ammonia fuel.

As ammonia fuel utilization is expected in shipping for decarbonization, bunkering vessels that supply fuel to ships and related equipment will play an essential role in the supply chain. On the other hand, due to the novelty, it can be difficult to confirm the safety of some equipment by applying existing rules.

Targeting such new technologies, ClassNK has issued the ‘Guidelines for Technology Qualification’ that define a certification process to demonstrate that an acceptable level of safety, equivalent to that of technologies designed under existing rules and standards, has been verified. Through the guidelines, ClassNK is providing a risk-based approach to safety assessment for the implementation of new technology.

ClassNK carried out a drawing review of a basic design of the bunkering boom based on part N of its ‘Rules and Guidance for the Survey and Construction of Steel Ships’ for ships carrying liquefied gases in bulk, and conducted a review of documents required by the ‘Guidelines for Technology Qualification’. Upon confirming they comply with the prescribed requirements, ClassNK issued the AiP.

ClassNK will continually strive to contribute to advanced decarbonization initiatives through safety assessments and more.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

Dual-Fuel Bulker Strikes Anchored Ship's Bow, Damaging LNG Tank

Still via Sailors TV

Published Jul 30, 2024 3:10 PM by The Maritime Executive

 

On July 16, a dual-fuel LNG bulker allided with an anchored ship off the busy Hay Point terminal in northeastern Australia, causing extensive damage. 

According to multiple social media accounts, the LNG-capable bulker HL Eco was preparing to anchor off Hay Point when she suffered a propulsion casualty. As she drifted, her port side struck the bow of the anchored bulker YM Serenity at low speed. As HL Eco slid past, the YM Serenity's prow struck her port side LNG fuel tank. The YM Serenity's starboard side anchor lodged in HL Eco's port side, and the still-moving HL Eco dragged on the anchor chain as she drifted away. 

Instead of seeking a place of safety, several members of YM Serenity's crew ran towards the bow as HL Eco struck their ship, and they attempted to control the starboard side anchor as it paid out under tension. 

According to social media reports, Marine Safety Queensland was notified, and two tugs were dispatched to assist the stricken vessels. Both safely re-anchored to await inspection. Neither ship suffered damage below the waterline, and no pollution or injuries have been reported. 

HL Eco is a 2020-built Capesize bulker with a capacity of 180,000 dwt and a comparatively clean inspection record, with only three deficiencies in four years. 

 

China's Yangzijiang Shipyard Rides the Shipbuilding Boom

File image courtesy Yangzijiang Shipbuilding

Published Jul 25, 2024 10:58 PM by The Maritime Executive

 

China's largest private-sector shipbuilder, Yangzijiang Shipbuilding, is having an enviable year. The yard's order backlog has ballooned to more than $16 billion, a new record reflecting soaring global demand for tonnage. To handle all the order volume, the company has acquired more than 200 acres of extra land next to its shipyard, including nearly a mile of additional waterfront.  

Yangzijiang benefits from surging global interest in buying new tonnage. With Korean and Japanese yards largely full, shipowners are looking to China for newbuild slots, and more than 60 percent of all merchant vessel orders over the year to date have gone to Chinese yards. 

Yangzijiang is also securing orders for much more sophisticated tonnage, not just bulkers and tankers. This week, Japanese owner Nissen Kaiun announced that it has signed a contract to build four very large ammonia carriers (VLACs) at Yangzijiang's Yangzi Mitsui joint venture division. It is the first VLAC order at any private yard in China. (The price was highly competitive, according to Chinese industry media.) These ships will be dual-fuel powered with LPG, and will deliver by 2029. Until recently, the niche VLAC segment was dominated by South Korea's Big Three yards, which have positioned themselves to capture high-value-added projects like gas carriers. 

This entry into a new high-end gas segment is a change for Yangzijiang, which just began building its first LNG carriers in 2022 and secured its first very large ethane carrier (VLEC) orders earlier this year.

All of this success requires new space, and Yangzijiang is making a brick-and-mortar investment that would have been unthinkable 10 years ago. With LNG carriers and other high-value projects in mind, it has agreed to acquire a nextdoor parcel of land and invest more than $400 million in an expansion plant, including a 300,000-tonne drydock. This should add another 800,000 dwt worth of annual capacity and - according to local party secretary Zhang Changping - "break the monopoly of Japan and South Korea in the field of high-value-added ships, and achieve industrial self-reliance." 

To make the most of the new space, the company says that it is planning to set up an advanced and digitalized production plant, with a 5G industrial data network. 

Yangzijiang's expansion is notable for its size, but many Chinese yards are growing. New Times Shipbuilding is working on adding a new graving dock, and many yards that shut during the financial crisis have retooled and reopened, like Hengli Heavy Industries, Weihai Samjin and SPS Shipyard, among others. According to shipbroker BRS, there will be plenty of business to go around: Chinese orderbooks are largely full through 2027, and extend out through 2029.

 

ADNOC and Chinese Place $1.9B Order for Large Ethane and Ammonia Carriers

The UAE - China JV looks to expand from LPG to the emerging ethane and ammonia segments (ADNOC)

Published Jul 23, 2024 8:38 PM by The Maritime Executive

 

 

In an effort to position their joint venture at the forefront of the growing ethane market and anticipated ammonia transport market, the UAE and China announced an order for up to 13 of the largest gas carriers yet built. The order placed by AW Shipping, the joint venture between ADNOC Logistics and Services and China’s Wanhua Chemical Group, is being valued at approximately $1.9 billion to be built by China’s Jiangnan Shipyard.

The companies highlight that currently there are only 25 very large ethane carriers (VLEC) in operation while demand is expected to grow. AW Shipping ordered nine VLECs valued at $1.4 billion and scheduled for delivery between 2025 and 2027. The vessels will have a carrying capacity of 99,000 cm and can be powered either by ethane or conventional fuels. They will be among the largest vessels of their kind preparing the joint venture for anticipated continuing demand in the sector.

AW Shipping will also be among the pioneering companies that are moving ahead with very large ammonia carriers (VLACs) for the anticipated market to move ammonia as it develops as an alternative fuel and also as a hydrogen carrier. The new order includes two VLACs priced at approximately $250 million with an option for two additional VLACs at the same price. These vessels will have a capacity of 93,000 cm and can be powered by liquified petroleum gas (LPG) or conventional fuels. They will deliver between 2026 and 2028.

“These newly ordered VLECs and VLACs are future-oriented green vessels developed by Jiangnan,” said Lin Ou, Chairman of Jiangnan Shipyard. “We are committed to delivering these vessels on time and with good quality, to better help ADNOC L&S achieve its transformational growth strategy and decarbonization objectives."

The new vessels are part of a strategy recently outlined by ADNOC L&S to deploy more than $5 billion for new investments after its June 2023 stock listing. ADNOC L&S was formed in 2016 by the UAE’s Abu Dhabi National Oil Company, one of the twelve largest oil companies in the world. The L&S group was designed to create one of the largest integrated shipping and maritime logistics companies. Among the group’s other investments was news of a recent order for eight to ten LNG carriers each with a 174,000 cm capacity to be built in South Korea.

“This $1.9 billion investment represents a major step forward in the ADNOC L&S transformational growth strategy and our commitment to expanding our fleet to carry new energy resources and accelerate our decarbonization objectives. Ethane and ammonia are playing vital roles in decarbonizing both global industrial processes and the shipping industry,” said Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S.

AW Shipping was launched in 2020 to own and operate a fleet of very large gas carriers and modern product tankers. ADNOC and Wanhau committed to transporting LPG cargoes and other petroleum products sourced from ADNOC to Wanhua’s manufacturing facilities in China and elsewhere. This latest will produce significant income for ADNOC L&S under charter agreements while positioning the joint venture in the emerging markets.

Future of undersea electricity cable linking Greece, Cyprus and Israel will be decided next month

Cyprus’ Energy Minister George Pananastasiou talks during an interview in his office at the Energy Ministry in Nicosia, Cyprus, Thursday July 25, 2024. (AP Photo/Petros Karadjias)


BY MENELAOS HADJICOSTIS
 July 25, 2024


NICOSIA, Cyprus (AP) — The future of an electricity cable linking the power grids of Greece, Cyprus and Israel will be cleared up next month when a ruling is expected on whether Cypriot consumers would pick up the tab for the cable’s four-year construction costs, Cyprus’ energy minister said Thursday.

Officials have said the 1.9-billion-euro ($2.06 billion) cable, known as the Great Sea Interconnector, would end the energy isolation of both the east Mediterranean island nation and Israel while promising consumers cheaper energy through the conveyance of more power generated from renewable energy sources (RES). The European Union is partly financing the project with 657 million euros.

The Greek project operator, the Independent Power Transmission Operator, or IPTO, initially made it a condition that construction costs should be borne by Cypriot taxpayers to make the project viable and, in turn, attract investors. That was turned down by the Cypriot energy regulator, CERA.

Minister George Pananastasiou said Thursday the regulator will render its definitive ruling on Aug. 12.

According to Pananastasiou, IPTO’s calculations which it has submitted to CERA to reconsider its decision show that the additional burden for Cypriot consumers over the four-year construction period would be minimal, at 0.6 of one euro cent per kilowatt hour of energy consumption.

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Already 40-50 kilometers (25-31 miles) of cable has been laid along the Mediterranean seabed as part of the project’s first phase connecting the Greek island of Crete with Cyprus. Cypriot consumers will benefit almost immediately from a 30%-40% drop in energy prices once the cable goes online, Papanastasiou told the Associated Press in an interview.

The Cypriot government is also expected to decide in September whether to pour 100 million euros into the project after evaluating a viability assessment.

The electricity cable is part of Cyprus’ strategy to wean itself off crude oil. The country is also looking to build its first natural gas terminal that would use cheaper, imported liquified natural gas to fire up its power plants. Papanastasiou said this would result in a 40%-45% drop in greenhouse gas emissions.

However, the construction of the LNG terminal has been beset by problems.

Last week, the Chinese-led CPP-Metron consortium pulled out of its contract to build the terminal because of a financial dispute. Cyprus’ President Nikos Christodoulides said Monday the consortium should never have been awarded the contract in the first place because it couldn’t see it through.

The terminal was supposed to have been completed by 2022 and an accompanying ship that converts liquefied natural gas back into gaseous form is still stuck in Shanghai under a heap of legal red tape.

Papanastasiou said the Cypriot government is determined to complete the project in a year’s time by using the same subcontractors who had been hired by the Chinese-led consortium or others who could finish it faster and cheaper. Regarding the ship, Papanastasiou said if legal wranglings continue to hold up its delivery, then the government would look to charter a similar-sized vessel to start importing natural gas in time for the completion of the terminal.

The energy minister said current quantities of natural gas found off Cyprus’ southern coastline still don’t justify the investment for either supplying its very small domestic market or the construction of an onshore processing plant to liquify the gas for export.

He said hopes rest on ExxonMobil’s new drilling scheduled for next year for a significant discovery that would warrant construction of such infrastructure.

SMRs feature in Indian budget

24 July 2024

The Indian government has announced plans to partner with the private sector to develop small modular reactors in a 2024-25 budget announcement which recognises a significant role for nuclear in the country's future energy mix.

Finance and Corporate Affairs Minister Nirmala Sitharaman at the post-budget press conference on 23 July (Image: Press Information Bureau)

The budget was presented to Parliament by Minister of Finance Nirmala Sitharaman, who said nuclear energy is expected to form a "very significant" part of the energy mix for Viksit Bharat, the government's strategy to make India into a completely developed nation by 2047.

The first budget since Prime Minister Narendra Modi won a third successive term in office in the general election which took place earlier this year sets out the detailed roadmap for the government's pursuit of its development goal, in line with the strategy set out in an interim budget presented in February. Energy security is one of nine priorities for achieving Viksit Bharat that was identified in the interim budget.

"Towards that pursuit, our government will partner with the private sector for (1) setting up Bharat Small Reactors, (2) research & development of Bharat Small Modular Reactor, and (3) research & development of newer technologies for nuclear energy," Sitharaman said in her budget speech. "The R&D funding announced in the interim budget will be made available for this sector."

The budget allocates a total of INR24,969 crore (USD2.983 billion) to the Department of Atomic Energy (1 crore is 10 million).

Sitharaman said the government intends to bring out a policy document on "appropriate" energy transition pathways "that balances the imperatives of employment, growth and environmental sustainability". As well as the commitment to nuclear energy, the budget includes a major project to install rooftop solar, and a policy for promoting pumped storage projects, which the government says will help to facilitate the integration of the growing share of renewable energy. A project to build a full-scale 800 MWe commercial Advanced Ultra Super Critical thermal power plant will receive fiscal support from the government, and a roadmap for transitioning 'hard to abate' industries to focus on emission targets will be formulated, she said.

India currently has 23 operable nuclear reactors providing some 7,425 MWe of generating capacity, with seven units currently under construction, including both Indian-designed and Russian-designed units as well as one fast breeder reactor. It has plans for a fleet of Indian-designed and built 700 MWe pressurised heavy water reactors as well as for large reactors from overseas vendors, including further Russian-designed VVER reactors in addition to those already in operation and under construction at Kudankulam in Tamil Nadu.

More recently, Indian attention has also been turning to small modular reactors (SMRs): In August 2023, Minister of State Jitendra Singh told the country's parliament that the government was considering options for SMRs, and looking at ways to allow the participation of the private sector and start-ups in such projects.

India's Atomic Energy Act of 1962 prohibits private control of nuclear power generation: only two government-owned enterprises - NPCIL and Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI, set up to build and operate fast reactors) - are legally allowed to own and operate nuclear power plants in India. But the possibility of involving other public sector and private corporations in the country's future expansion plans has been under consideration for some time.

Earlier this year, government sources said India was planning to invite private firms to invest some USD26 billion in its nuclear energy sector, and holding talks with several private firms to secure investments to support the construction of some 11,000 MWe of new nuclear capacity by 2040.

RoPower and Fluor sign FEED 2 contract for SMR project

25 July 2024

Romania's Nuclearelectrica its project company RoPower Nuclear have signed the Front-End Engineering and Design (FEED) Phase 2 contract with Fluor Corporation for the Doicești small modular reactor project.

(Image: Nuclearelectrica)

The signing ceremony took place during the US Department of Energy-led Partnership for Transatlantic Energy and Climate Cooperation (P-TECC) summit - the project has received substantial support from both the Romanian government and international partners, including a significant grant from the US Trade and Development Agency.

Under the FEED 2 contract, Fluor will provide RoPower Nuclear with the design and engineering services required for the implementation of the project, at the end of which there will be an updated cost estimate and schedule as well as the safety and security analyses needed for a final investment decision.

Romania's small modular reactor (SMR) project is aiming for 462 MW installed capacity, using NuScale technology with six modules at the former coal plant site at Doicești, each with an installed capacity of 77 MW. The SMR project is estimated to create nearly 200 permanent jobs, 1500 construction jobs and 2300 manufacturing and component assembly jobs, as well as facility operation and maintenance jobs over the 60-year life of the facility.

Sebastian Burduja, Romania's Minister of Energy, said: "This investment has the potential to put our country on the map of the most important global centres of energy innovation. Romania aims to become an example for other countries in the region, where there are dozens of similar coal-fired power plants that could be transformed more quickly into nuclear power generation capacity - zero CO2 band production - using SMR technology."

Cosmin Ghiță, CEO of Nuclearelectrica, said: "We are thrilled to continue our progress with the Doicești SMR project. The continued development of this advanced nuclear project is a testament to the strong partnership between Romania and the United States, reflecting our shared goals of energy security and environmental stewardship."

Pierre Bechelany, president of Fluor’s LNG & Power division, said: "We are pleased to continue our role in supporting this important project to deploy the next generation of nuclear power to produce clean and reliable baseload electricity for Romania and Europe. When completed, the plant will be the first of its kind in Europe."

As well as Nuclearelectrica, RoPower Nuclear, Nova Power & Gas (part of the E-INFRA group and joint owner of RoPower) and Fluor, Samsung C&T Corporation and Sargent & Lundy are also involved in works to facilitate the development and deployment of NuScale SMR power plants in Romania. Also this week, the US International Development Finance Corporation restated its interest in considering providing up to USD1 billion of financing for the project.

Steady Energy, Kuopion Energy enhance cooperation

19 July 2024

Finnish small modular reactor developer Steady Energy has signed a one-year pre-planning agreement with Kuopion Energia aimed at constructing a small nuclear power plant to start producing district heat in the city of Kuopio in the early 2030s.

LDR-50 district heating SMR (Image: Steady Energy)

As part of the agreement, Kuopion Energia will start an environmental impact assessment for potential plant locations. Suitable locations for the plant will be refined during the environmental impact assessment process, Steady Energy noted, adding that, generally, suitable places in cities include existing industrial sites.

"The investment decision will be made by Kuopion Energia, which will also seek necessary zoning changes in due course," Steady Energy said. "Zoning decisions are the responsibility of the City of Kuopio. The estimated construction time is 3.5 years."

Steady Energy's LDR-50 district heating SMR - with a thermal output of 50 MW - has been under development at the VTT Technical Research Centre of Finland since 2020. Designed to operate at around 150°C and below 10 bar (145 psi), the company says its "operating conditions are less demanding compared with those of traditional reactors, simplifying the technical solutions needed to meet the high safety standards of the nuclear industry". It noted that its reactors are affordable enough for municipal utilities to invest in independently.

"LDR-50 is a small and simple nuclear reactor which would help Kuopio to achieve its climate goals and provide affordable energy for heating the city," Steady Energy said. "The newly signed agreement initiates practical work towards an investment decision for the plant."

Last month, Steady Energy said it is set to start construction of its first LDR-50 district heating reactor pilot plant in Finland next year. Currently, the proposed locations for the pilot plant include: Salmisaari caves in central Helsinki; Huuhanmäki caves in Kuopio, the regional capital of North Savo in eastern Finland; and the power plant sites at Kymijärvi and Teivaanmäki in Lahti, a regional capital in southern Finland.

In December 2023, the company signed a letter of intent with municipal energy company Kuopion Energia in Eastern Finland that includes an option for the construction of up to five district heating reactors starting in 2030. That agreement followed a letter of intent signed in October between Steady Energy and Helsinki's energy company Helen for the construction of up to 10 SMRs for district heating.

Researched and written by World Nuclear News

GUESS WHO

Senators Introduce Bill to Shorten Approval Time of Energy and Mining Projects

By Charles Kennedy - Jul 23, 2024

A bill sponsored by Senate Energy Committee Chairman Joe Manchin and Senator John Barrasso proposes giving the Department of Energy 90 days to approve new LNG export projects and aims to shorten approval times for energy and mining projects.

“The United States of America is blessed with abundant natural resources that have powered our nation to greatness and allow us to help our friends and allies around the world,” Manchin said in a press release. “Unfortunately, today our outdated permitting system is stifling our economic growth, geopolitical strength, and ability to reduce emissions.”

To address the problem, the two legislators “put together a commonsense, bipartisan piece of legislation that will speed up permitting and provide more certainty for all types of energy and mineral projects without bypassing important protections for our environment and impacted communities.”

In a news story on the bill, Bloomberg noted that it was unlikely to be passed as it is but it could make an important part of future energy legislation during the next Congress.

The focus of the bill is on shortening approval times for new energy and mining projects, as well as grid expansion projects that regulators have warned are essential for a changing energy system that relies increasingly on wind and solar generation capacity.

Manchin and Barrasso are among vocal critics of President Biden’s so-called pause on new LNG export capacity approvals, which came into effect earlier this year under pressure from climate activists, who argued natural gas is even worse for the climate than coal. The move prompted more than a dozen states to sue the federal government. Earlier this month, a federal judge in Louisiana blocked the pause.

In his ruling, Judge Cain said that the government’s move had been arbitrary, capricious, and unconstitutional and that it had violated the Natural Gas Act. Judge Cain added that the Department of Energy had gone “above and beyond its scope of authority.”

By Charles Kennedy for Oilprice.com

US Senators release energy permitting reform bill

Staff Writer | July 22, 2024 

US Senator Joe Manchin. Credit: Wikimedia Commons.

US Senators Joe Manchin (I-WV) and John Barrasso (R-WY), on behalf of the Senate Energy and Natural Resources Committee, released on Monday the Energy Permitting Reform Act of 2024.


The legislation could speed up approvals of clean-energy, pipeline and electricity transmission projects by shortening some federal environmental reviews and setting limits on court challenges.

“The United States of America is blessed with abundant natural resources that have powered our nation to greatness and allow us to help our friends and allies around the world,” Manchin said in a news release. “Unfortunately, today our outdated permitting system is stifling our economic growth, geopolitical strength, and ability to reduce emissions.”

He went on to say that the bill is a result of over a year of hearings in the Senate Energy and Natural Resources Committee, considering input from colleagues on both sides of the aisle, and negotiations. Manchin currently serves as Chairman of the Committee.

It signals a win for West Virginia Senator Manchin, previously a Democrat, now serving as an Independent, after a previously stalled legislative effort to fast-track energy projects. A bid to attach the energy-permitting package was dropped from must-pass government funding legislation in the Senate last year when it didn’t have the votes.

“A commonsense, bipartisan piece of legislation will speed up permitting and provide more certainty for all types of energy and mineral projects without bypassing important protections for our environment and impacted communities,” Manchin continued.

“The Energy Permitting Reform Act will advance American energy once again to bring down prices, create domestic jobs, and allow us to continue in our role as a global energy leader.”

“Washington’s disastrous permitting system has shackled American energy production and punished families in Wyoming and across our country. Congress must step in and fix this process,” added Barrasso, Ranking Member of the Committee. “Our bipartisan bill secures future access to oil and gas resources on federal lands and waters.”

The American Exploration & Mining Association (AEMA) released a statement on Tuesday applauding the bill.

“Our inefficient federal permitting system is a significant deterrent to attracting investment in the United States to explore for and develop strategic mineral resources, and it has resulted in the US being increasingly reliant on foreign countries,” AEMA executive director Mark Compton said in the statement.

“The permitting reforms in this deal are a good start, and we look forward to working with both sides of the aisle to see they become law.”

Full text of the Energy Permitting Reform Act of 2024 can be found here.