Thursday, October 20, 2022

SORRY YOU SOLD THE WHEAT BOARD, YET

  • This year's harvest under possible threat of Canada's supply chain shortcomings

This year's important harvest has farmers hopeful it will make up for last year's poor crop yield, yet supply chain stalls could put a further wrench in agriculture profits.

The Western Grain Elevator Association said that capacity remains stable but not comfortable, as grain elevator levels reach 85 per cent, leading to fears of grain delivery delays.

Western Canada's grain harvest is an estimated 75 million tonnes this year, said Wade Sobkowich, executive director for the Western Grain Elevator Association, as drought, floods and wildfires contributed to a below average harvest of 49 billion tonnes the year prior.

Sobkowich said 85 per cent is an acceptable fulfilment level. When the rate drops below that, railcar delays impact the entire supply chain, leading to a buildup at the grain elevators and slow down farmer deliveries.

"Farmer's don't get paid until they deliver," he said.

Last year, one in nine people were employed by the agriculture sector, contributing $135 billion to Canada's gross domestic product, according to Agriculture and Agri-Food Canada.

Currently, farmers are ordering around 10,000 to 11,000 railcars per week, said Sobkowich.

The AG Transport Coalition's most recent grain report from September, said that Canadian National Railway fulfilled 88 per cent of hopper cars and Canadian Pacific Railway fulfilled 77 per cent, at an increase of 73 per cent the week prior.

CP spokeswoman Salem Woodrow, said in a statement that the company is prepared to meet the transportation needs of grain customers this crop year.

She said CP ramped up hopper car delivery at the start of the crop year, matching record order fulfilment and port unload levels over September.

Sobkowich said the discrepancy in the numbers between CP and CN is due to the recording methods of CP as the railway company calculates the demand they accept rather than legitimate demand.

"Probably, in CP's view they are performing better than what our numbers show," said Sobkowich.

CN also said it has made record grain movements, as 2.62 million tonnes of grain move from Western Canada in September, said CN spokesman Jonathan Abecassis.

Although, Abecassis said CN did have a slow start to the season, as the harvest was slow to get underway and grain supplies were tight given the impact of last year’s drought.

"Unfortunately, getting trains moving again is a progressive process, it doesn’t all just happen at once,” said Abecassis in a statement.

Sobkowich said CN seems to be holding at an acceptable level, "although of course we would like to see them get closer to 100 per cent."

He said the WGEA will continue to watch fulfilment levels closely but has some concerns about how delivery stalls could persist into the fall.

Transport Minister Omar Alghabra announced an $8 million investment in new grain terminal equipment in the Port of Montréal earlier this month to improve the quality of the grain-cleaning service, optimize traffic flow in the yard, and increase capacity for loading and handling containers.

“Thanks to these funds, grain exports here at the Port of MontrĂ©al will be able to move more than double,” said Alghabra at a news conference.

In a phone interview, Alghabra said a new rail regulation will come into force, that requires rail companies to provide more information about operations and performance. However, no exact timeline on when the regulation will come into effect has been announced.

The Minister's announcements come after the National Supply Chain Task Force said in a final report that urgent action from both government and industry is needed to keep goods flowing in Canada.

FORMER FEDERAL LIBERAL MINISTER

Hall Findlay, Suncor Energy's first 'chief climate officer,' to retire from role

Suncor Energy Inc.'s first-ever chief climate officer is departing her role at the end of November, but Martha Hall Findlay says she feels "far more optimistic" than she once did that Canada's oil and gas sector can be part of the climate change solution.

Hall Findlay joined Suncor in 2020 as chief sustainability officer, and was named the company's chief climate officer — the first appointment of its kind by a Canadian energy company — in February of this year.

While at the company, Hall Findlay played a key role in the development of the Pathways Alliance, a consortium of major oilsands companies that have together pledged to reach net-zero carbon emissions from production by 2050.

Her tenure also coincided with a rocky period for the Calgary-based energy giant, one that saw the company targeted by U.S.-based activist investor Elliott Investment Management for a string of recent operational difficulties and workplace safety incidents. Suncor's former chief executive Mark Little resigned in July. 

But while Hall Findlay acknowledged it has been an "interesting" time to be part of the Suncor executive team, she said she is retiring because of a string of personal challenges over the past two years — challenges that have included a breast cancer diagnosis, a double mastectomy, and the death of her sister.

"Pathways has been my heart and soul for the last two years. I never took time off," Hall Findlay said in an interview Wednesday. "It's been awesome, but I'm not going to lie — I'm exhausted."

Before joining Suncor, Hall Findlay served as the Liberal Member of Parliament for the Toronto riding of Willowdale, Ont from 2008 to 2011. She then moved to Calgary to become president and chief executive of the Canada West Foundation, a Calgary-based think tank. 

Hall Findlay said at the time, she was deeply concerned about the federal government's negative rhetoric with respect to the oilsands industry, and believed it posed a threat to national unity. 

On Wednesday, she said she believes significant progress has been made since then. Oilsands companies have a plan to get to net-zero, and have said they will spend $16.5 billion before 2030 on the first stage of a massive proposed carbon capture and storage facility near Cold Lake, Alta.

The federal government has also made its own commitment to industry in the form of an investor tax credit for carbon capture and storage projects.

A final investment decision for the Pathways carbon capture project — which would capture CO2 emissions from more than 20 oilsands facilities in northern Alberta and store them safely underground, delivering an estimated 10 million tonnes of emissions reductions per year — has not yet been made. Hall Findlay said industry still needs more government support — both from a financial and regulatory perspective.

"Part of the discussion we’re trying to have is how we can get these big projects up and running as soon as possible, because that’s important for the federal government too," she said.

"But I'm confident we can do it. I think it’s absolutely critical not just for Alberta, not just for the industry – I think it’s critical for the country.”

In an emailed statement Wednesday, Pathways Alliance president Kendall Dilling said Hall Findlay has been an "integral and outstanding contributor" to the organization's efforts to work collaboratively with governments and help Canada meet its climate commitments.

“While Pathways Alliance will miss Martha’s straightforward approach to communicating about the need for the oilsands industry to take a leadership role in reducing emissions, the momentum she and other company leaders have helped build will continue as we pursue our goals," Dilling said.

CANADA'S ON LINE CREDIT UNION

Vancity to offer carbon footprint tracker for its Visa credit cards

Vancity says it is launching a program that will allow its Visa credit card holders to track the estimated carbon emissions of their purchases. 

The Vancouver-based credit union says all Vancity Visa credit card holders will be offered the data, which will also include how their spending-linked emissions compare nationally and which purchases have the highest environmental cost.

Vancity says it is partnering with climate-focused German fintech ecolytiq to offer the carbon calculator.

The credit union says it will be the first to offer a Visa-based carbon footprint calculator in Canada when the program becomes available in the new year.

Mastercard last year announced a carbon calculator tool that banks could roll out to customers, but did not immediately respond to clarify whether any Canadian banks currently offer its calculator tool.


The Mastercard option was rolled out in collaboration with Doconomy, a Swedish fintech company that in 2019 launched a credit card with a carbon footprint limit.

Rent remains cheaper than monthly mortgage payments in most Canadian cities: Zoocasa

The cost to rent an apartment is still cheaper than an average mortgage payment in most Canadian cities, according to a brokerage Zoocasa.

In a post published by the brokerage on Monday, it states average monthly rent is still less expensive than monthly mortgage payments for a condo in 11-out-of-15 major Canadian cities.

For example, the average price of a condo in Toronto is $769,058, with an average monthly mortgage payment of $3,335. That’s still 44.81 per cent more expensive than the average monthly rent for a one-bedroom apartment in Toronto ($2,303), Zoocasa states.

“The rise in demand for rentals is reflected in the housing market; in September of last year when interest rates were low, there were 9,046 sales across the GTA,” Daniel Crook, author at Zoocasa, said in the post.

“This September, we were down to 5,038, a decline of 44 per cent. With that higher cost of borrowing, some are considering rentals as a more financially sound option.”

The only major cities where monthly mortgage payments are actually cheaper than rent are in Western Canada. The average monthly mortgage payment in Edmonton is $954, which is 19.22 per cent less than the average rent of $1,181.

Calgary’s average mortgage payment is $1,205, which is 18.58 per cent less than the average rent of $1,480. In Winnipeg, the average mortgage is $1,152, which is 12.33 per cent less than an average rent of $1,314. Saskatoon’s average mortgage is $949, which is 11.39 per cent less than the average rent of $1,071.

 

HOME SALES SLOW

On Wednesday, Statistics Canada reported the price of other owned accommodation expenses, which includes the commissions on the sale of real estate, rose at a slower pace in September (5.8 per cent), than in August (7.4 per cent).

The organization also found that the homeowners’ replacement cost index, which looks at the price of new homes, increased slightly in September (7.7 per cent), which was lower than the 8.4 per cent rise in August.

“These movements reflect a general cooling of the housing market,” the report said.

Methodology for Zoocasa

“Rental prices. Average rental price for one bedroom units courtesy of Zumper.com, TorontoRentals.com and Rentals.ca. The average price of condo apartments is sourced by TREEB, the CREA MLS Home Price Index, and local real estate board data.

Mortgage payments. The average monthly montage payments were calculated using RateHub.ca’s Mortgage Payment Calculator, assuming a 20 per cent down payment, 30-year amortization, and a 5-year fixed interest rate of 5.14 per cent.”

Path to lower inflation can be achieved without 'crushing' economy: Poloz

Former Bank of Canada governor Stephen Poloz believes there’s a path for the central bank to tamp down sky-high inflation without crushing economic growth, so long as Tiff Macklem and company operate with a deft touch.

In an interview Thursday, Poloz – now a special advisor at law firm Osler – said that while there will be some painful side-effects to the inflation fight, a combination of prudent policy and consideration of the transitory inflationary effects of the war in Ukraine, could lead to a scenario where price pressures continue to abate without sending the domestic economy into a deep funk.

“It would be nonsense to crush inflation down to two per cent immediately since some of it is going to go away by itself, obviously it would be nonsense to just ignore it and hope for the best,” he said. “So somewhere in the middle is that sort of stagflationary some-of-this, some-of-that path, and there’s no painless way to get there because what has happened in Ukraine.”

Inflation has moderated from its June high of 8.1 per cent year-over-year; it did run at a 6.9 per cent pace in September – more than three times the Bank of Canada’s two per cent target.

That decline has largely been due to moderating gasoline prices, with the average of the three core measures – which strip out volatile items like gas and groceries – holding steady at 5.3 per cent in the month.


Digging deeper, grocery prices rose 11.4 per cent in September, the fastest pace since 1981.

While Canadians have been adjusting their spending habits – the Bank of Canada’s latest survey of consumer expectations showed more than 80 per cent of Canadians are taking actions to cope with higher inflation – Poloz said there are other factors at play when it comes to businesses adjusting their behaviour in ways that should prove disinflationary.

“There are some mechanisms affecting inflation that people aren’t really talking about, like how much less disposable income people have. Walmart results – they had a lot less stuff in the basket,” he said.

“What’s Walmart’s response? They’re going to slash prices: that’s what disinflation looks like, it’s not about crushing the economy. So I think we have a lot of those preconditions there that are helping.”

The prospect of more outsized rate hikes has led to a growing chorus of calls that Canada will enter a recession next year. Earlier this week, Scotiabank said it expects a technical recession – two consecutive quarters of negative economic growth – in 2023, and that the Bank of Canada will ultimately have to raise rates by another full percentage point by year’s end.

While Poloz did admit a recession of some type is the most likely outcome for the domestic economy, he said that underlying strength in the labour market should soften the blow and make such a drop in economic activity feel like more of an adjustment to more normalized conditions.

“It does look [like a recession] from where we’re sitting, but it’s not necessarily the case: I’ve got to admit there’s a grey zone there. I think of it more as an altitude adjustment: the plane got up to 40,000 feet by mistake, we really were supposed to be at 35,000 feet – too much turbulence up here,” he said.

“So let’s get it levelled off at a sustainable altitude of 35,000 feet. Do we have to go down to 30 for a while to get back to 35? Possibly, but it’s not going to feel like much of a recession if that’s what happens: the labour market is super strong, the economy is strong.”

Though central banks around the world are walking something of a tightrope as the pandemic recedes, Poloz said from his vantage point, policymakers are largely doing a good job.

"They’re on the right path, they’re doing the right thing, or course they are. We just don’t know – nobody, including them – when we’ll actually get there. It will be real-time discovery.”

'We are in the initial stages of funds flowing back into commodity-rich Canada': Portfolio manager

Canada stands to benefit from increasing investments in commodities, at a time when energy volatility and security challenges weigh on many countries, according to Rafi Tahmazian, senior portfolio manager and director at Canoe Financial.

In a note to clients Monday, Tahmazian said in the coming quarters he expects there will be a larger focus on countries with natural resources.

“This (energy security) has important investment implications, especially for countries such as Canada which have more than 30 per cent of their equity markets exposed to energy and materials,” Tahmazian said.

“We believe we are in the initial stages of funds flowing back into commodity-rich Canada.”

 

GROWING CONCERNS AROUND ENERGY SECURITY

Tahmazian pointed to energy security as the main reason for why he sees additional investments in Canada over the coming months.

“It’s becoming obvious to us that we’re entering a new era of higher-for-longer energy prices and ongoing energy security challenges,” Tahmazian said.

“We believe consumers will continue to be vulnerable to energy price spikes and some areas of the globe will even experience periods without energy.”

Energy security has become a big issue in Europe, as the European Union (EU) looks to reduce its dependence on Russia.

On Dec. 5, EU sanctions on Russian crude by sea will come into effect. On the organization’s website, it says “as the majority of the Russian oil delivered to the EU is seaborne, these restrictions will cover nearly 90 per cent of Russian oil imports to Europe by the end of the year. This will significantly reduce Russia’s trade profits.”

Many countries in Europe are also moving to stockpile fuel ahead of the winter in order to avoid shortages. This comes as the region faces its worst energy crisis in 50 years, with Russia cutting its natural gas deliveries after the EU placed sanctions on its crude.

“The region, with its dependence on Russian gas, will be extremely vulnerable to weather conditions over the next couple of winters,” Tahmazian said.

“We believe hoarding action like this is a sign of things to come as governments try to protect the lower- and middle-class consumer, but it comes at the expense of increased government debt, decreasing purchasing power, and reversing climate change agendas.”

Energy vulnerabilities came into focus last month after the Nord Stream 1 and 2 pipelines experienced four major gas leaks.

On Tuesday, Danish authorities reported “powerful explosions” that damaged at least 50 metres of underwater pipeline. A video shot by a Norwegian robotics company and published by Swedish newspaper Expressen shows a massive break in the Nord Stream 1 pipeline.

Tahmazian said there has been signs of a “developing energy crisis for years now that have been largely ignored until recent European developments brought to light the very real impact on energy consumers.”

“As Europe heads into winter, natural gas inventories there are significantly higher than historic averages as countries paid any price to replenish storage from extremely depressed levels in the spring,” he said.

“And what’s less talked about, are the ten-fold price increases consumers had to bear to rebuild storage or governments reversing coal closures in an effort to meet consumer need this winter.”

MINING IS NOT GREEN

Climate changed: Mining industry digs into alternative methods as risks rise

In the North, some mines risk leaking acid if the permafrost melts, while across Canada heavier rainfall will add strain to tailings dams and a lack of it could throw operations. 

While no strangers to extreme weather, the growing risks from climate change are forcing the mining industry to take a hard look at their methods, and how to prepare for the worst. Many of the most prudent actions to minimize risk are, however, also more costly, meaning that while some have taken them on, not everyone has followed suit.  

"This is a serious and emerging problem," said Jamie Kneen, Canada program co-lead at advocacy group MiningWatch Canada.

Kneen said his biggest area of concern is around how mining companies manage the waste they generate, and the dams they use to contain it. Companies are increasingly digging up lower concentrations of metals, meaning there is more waste to deal with after. And while many mines last less than a decade, the tailings they generate are a much longer-term problem.

"We've got, you know, tailings dams that are getting bigger and bigger at the same time as the climate risk is getting bigger," said Kneen.

Given the risks, companies are leaning more on alternative ways to manage the vast volumes of rock and contaminated water generated by extraction, said Bruno Bussière, a professor of mining at UniversitĂ© du QuĂ©bec en Abitibi-TĂ©miscamingue.

Some of those methods include removing much of the water from the waste so it can be piled dry to make it more stable. Companies are also more often pushing waste back into mine shafts and open pits to reduce the risks, he said.

"We have to see an open pit as an opportunity."

Moving millions of tonnes of rock back into a hole or adding a water removal step for tailings, however, doesn't come cheap, so it becomes in part a question of how much value a company sees in it, said Bussière.

“Clearly it adds costs, short term costs, capital costs, but you reduce the risk. So what is the price of the risk? That's what they have to decide.”

Climate change is changing that equation for some, as the uncertainties ahead mean that companies sometimes have to assume the worst possible scenarios. 

Companies are also shifting methods as they're pressured to improve their ecological profile more generally, while recent mining disasters, including the 2019 tailings dam failure at a Vale S.A. mine in Brazil that killed 270 people, and the 2014 dam breach at an Imperial Metals Corp. mine in B.C., have led to higher standards for dam management.  

For example, in Nunavut, Agnico Eagle Mines Ltd. has gone with dry tailings at its Meliadine mine, in part to improve resilience to future climate change, while it's already had to expand water storage at its northern mines because of more frequent extreme rainfall. It's also still working through the best way to cover a satellite deposit of its Meadowbank mine to make sure the waste rock doesn’t thaw and generate acid. 

“Dams (and) standards are evolving. So we need to make sure that we're ahead of it, because it's way more expensive to go back and fix a dam than to build it right the first time,” said Mohammed Ali, vice-president of sustainability and regulatory affairs at Agnico.

The company is looking at a range of adaptations elsewhere, such as to site access during wildfires, and  skeleton-crew scenarios for when staff with kids can’t make it to work because schools are closed due to extreme heat. It's also considering more automated underground machines as higher temperatures make for tougher working conditions underground. 

Other companies, such as Glencore at its Sudbury, Ont. operations, have already seen an increased number of down days because of rules requiring production to be halted when temperatures underground top 31 degrees.

The industry is doing more on adaptation as the data gets better, and as disclosure requirements increase, said Ali.

“The financial world is saying, I don't want to put money into a place where there could be a financial risk of some climatic event, and I lose my investment. So that's where the drive has come on adaptation.”

Disclosures show the wide range of actions companies are having to take on adaptation. Teck Resources Ltd. in its latest climate report noted that permafrost thaw is adding silt to the water at its Alaska operation that it needs to deal with, while in B.C. it is working on spring runoff management and flood mitigation projects. In Chile it's working on measures to use less water including the construction of a large-scale desalination plant at its QB2 project. 

BHP has also spent billions of dollars building desalination plants in Chile to manage both immediate and long-term water shortages. 

“Those were big investments at the time, but it was also looking ahead and seeing that’s where we needed to go,” said Caroline Cox, who oversees sustainability at BHP as chief legal, governance and external affairs officer. 

At its massive Jansen potash project in Saskatchewan that could last 100 years, BHP has gone with conventional mining rather than using hot water to extract the minerals. The decision, which carries more upfront costs, means it will use about 60 per cent less fresh water and will create half the emissions of other potash mines, she said. 

The growing push for adaptation is a contrast from only a decade ago when Natural Resources Canada started to ramp up consultations on the issue, said Pamela Kertland, a program manager in the department’s climate change impacts and adaptation division.

“There was a perception almost globally that adaptation was something in the future.” 

Along with growing acceptance and data are improved planning tools, such as a how-to guide for adaptation put out by the Mining Association of Canada last year with financial support from the federal government. 

Provincial governments have also started to catch up to the issue. Places like Quebec and Nunavut require companies to explain how they’ve taken into account how climate change might affected operations as part of environmental reviews, while Yukon has committed to getting such rules on the books this year.

Governments, however, are falling short on forcing some of the preparation needed, said Kneen at MiningWatch. 

“Governments are taking steps to regulate this, but they're very cautious, and the industry as well is trying to address this, but I think I would say that they're not going far enough fast enough to meet the challenge.”

He said there are some improvements, such as companies no longer proposing the most dangerous type of tailings dam, but that it’s still voluntary whereas other countries including Brazil and Chile have outlawed the practice. Provinces like British Columbia, unlike Quebec, also still allow mining companies to gradually pay into reclamation bonds, which raises the risk of taxpayers being left with the bill as climate risks increase. 

There’s also the concern that while big players can afford to splash out on best practices, smaller companies with shorter mine lives may not think climate adaptation is so important, and not worth the cost of doing it right, said Kneen.

“It's expensive, and part of what we've been trying to impress on industry and regulators alike is that if you have a higher standard, it's good, it may be more expensive. And if you can't afford it, if the market isn't justifying that, then you actually don't have an economical project.”

CALL AN ELECTION

'I'M NO QUITTER'

U.K.'s Truss quits after turmoil obliterated her authority

British Prime Minister Liz Truss resigned Thursday — bowing to the inevitable after a tumultuous, short-lived term in which her policies triggered turmoil in financial markets and a rebellion in her party that obliterated her authority.

Making a hastily scheduled statement outside her 10 Downing Street office, Truss acknowledged that “I cannot deliver the mandate on which I was elected by the Conservative Party.”

Hers is the third resignation by a Conservative prime minister in as many years and leaves a divided party seeking a leader who can unify its warring factions. Truss, who said she will remain in office for a few more days while that process unfolds, has been prime minister for just 45 days.

Just a day earlier she had vowed to stay in power, saying she was “a fighter and not a quitter.” But Truss couldn't hold on any longer after a senior minister quit her government with a barrage of criticism and a vote in the House of Commons descended into chaos and acrimony just days after she was forced to abandon many of her economic policies.

A growing number of lawmakers had called for Truss to resign after weeks of turmoil sparked by her economic plan. When it was unveiled by the government last month, the plan triggered financial turmoil and a political crisis that has seen the replacement of Truss’ Treasury chief, multiple policy U-turns and a breakdown of discipline in the governing Conservative Party.

Earlier, Conservative lawmaker Simon Hoare said the government was in disarray.

“Nobody has a route plan. It’s all sort of hand-to-hand fighting on a day-to-day basis,” he told the BBC on Thursday.

Truss quit after a meeting with Graham Brady, a senior Conservative lawmaker who oversees leadership challenges. Brady was tasked with assessing whether the prime minister still has the support of Tory members of Parliament — and it seemed she did not.

“It’s time for the prime minister to go,” Conservative lawmaker Miriam Cates said earlier Thursday. Another, Steve Double, said of Truss: “She isn’t up to the job, sadly." Legislator Ruth Edwards said “it is not responsible for the party to allow her to remain in power.”

Lawmakers' anger grew after a Wednesday evening vote over fracking for shale gas — a practice that Truss wants to resume despite opposition from many Conservatives — produced chaotic scenes in Parliament.

With Conservatives holding a large parliamentary majority, an opposition call for a fracking ban was easily defeated. But there were displays of anger in the House of Commons, with party whips accused of using heavy-handed tactics to gain votes.

Chris Bryant, a lawmaker from the opposition Labour Party, said he “saw members being physically manhandled ... and being bullied.” Conservative officials denied there was manhandling.

Rumors swirled that Conservative Chief Whip Wendy Morton, who is responsible for party discipline, and her deputy had resigned. Hours later, Truss’ office said both remained in their jobs.

Newspapers that usually support the Conservatives were vitriolic. An editorial in the Daily Mail was headlined: “The wheels have come off the Tory clown car.”

International Trade Secretary Anne-Marie Trevelyan, sent onto the airwaves Thursday morning to defend the government, insisted the administration was providing “stability.” But she was unable to guarantee Truss would lead the party into the next election.

“At the moment, I think that’s the case," she said.

With opinion polls giving the Labour Party a large and growing lead, the Conservative Party decided its only hope of avoiding electoral oblivion was to replace Truss. But they remain divided over who exactly should do that.

The party is keen to avoid another divisive leadership contest like the race a few months ago that saw Truss defeat ex-Treasury chief Rishi Sunak. Among potential replacements — if only Conservative lawmakers can agree — are Sunak, House of Commons leader Penny Mordaunt and newly appointed Treasury chief Jeremy Hunt.

Whoever it is will be the country's third prime minister this year alone. A national election doesn’t have to be held until 2024.

Truss' downfall was hastened by the resignation on Wednesday of Home Secretary Suella Braverman. She quit after breaching rules by sending an official document from her personal email account. She used her resignation letter to lambaste Truss, saying she had “concerns about the direction of this government.”

“The business of government relies upon people accepting responsibility for their mistakes,” she said in a thinly veiled dig at Truss.

Braverman was replaced as home secretary, the minister responsible for immigration and law and order, by former Cabinet minister Grant Shapps, a high-profile supporter of her defeated rival Sunak.

The dramatic developments came days after Truss fired her Treasury chief, Kwasi Kwarteng, on Friday after the economic package the pair unveiled Sept. 23 spooked financial markets and triggered an economic and political crisis.

The plan’s 45 billion pounds ($50 billion) in unfunded tax cuts sparked turmoil on financial markets, hammering the value of the pound and increasing the cost of U.K. government borrowing. The Bank of England was forced to intervene to prevent the crisis from spreading to the wider economy and putting pension funds at risk.

On Monday Kwarteng’s replacement, Hunt, scrapped almost all of Truss’ tax cuts, along with her flagship energy policy and her promise of no public spending cuts. He said the government will need to save billions of pounds and there are “many difficult decisions” to be made before he sets out a medium-term fiscal plan on Oct. 31.

Speaking to lawmakers for the first time since the U-turn, Truss apologized Wednesday and admitted she had made mistakes during her six weeks in office, but insisted that by changing course she had “taken responsibility and made the right decisions in the interest of the country’s economic stability.”

Opposition lawmakers shouted “Resign!” as she spoke in the House of Commons. But Truss said she would not.

Labour Party leader Keir Starmer accused the Conservatives of lacking “the basic patriotic duty to keep the British people out of their own pathetic squabbles.”

He said that amid a worsening a cost-of-living crisis, “Britain cannot afford the chaos of the Conservatives anymore. We need a general election now.”

H2 KEEPS ICE ALIVE

BMW Chairman Says Hydrogen Cars Will Be The Hippest Thing To Drive

The head honcho in Munich believes hydrogen will be the next trend after battery-powered EVs.



Oct 19, 2022 

By: Adrian Padeanu


It might come as a surprise, but BMW started hydrogen research back in 1978. However, it wasn't until 2000 that the E38 750hL arrived. A fleet of 15 cars was presented in Berlin with a V12 engine capable of running on gasoline and hydrogen. The vehicles were used as shuttles during the Expo 2000 in Hannover. The Hydrogen 7 followed in 2006 during the E68's life cycle – once again with a V12 - and was put into production, albeit in small numbers.

Fast forward to 2022, BMW has started in-house fuel cell production of the iX5 Hydrogen and plans to build a limited series of the hydrogen-fueled SUV. Sadly, there's no V12 around this time. Why is the Munich-based automaker insisting this technology has a future? Well, it'll apparently become trendy after the battery-powered EV craze dies down in an unspecified amount of time. At least that's what the company's chairman Oliver Zipse believes will happen.

















In an interview with Bloomberg, BMW's head honcho said: "After the electric car, which has been going on for about 10 years and scaling up rapidly, the next trend will be hydrogen. When it's more scalable, hydrogen will be the hippest thing to drive." He went on to say that having only one powertrain – namely battery-powered EVs – available in Europe in 2035 would be a dangerous thing:

"For the customers, for the industry, for employment, for the climate, from every angle you look at, that is a dangerous path to go to.”

BMW is not all alone in the hydrogen boat as Toyota also believes there is a future for fuel cell vehicles. In fact, the two automakers are collaborating on FCVs and will begin mass production as early as 2025. Earlier this year, BMW sales chief Pieter Nota told Asia Nikkei the Bavarian brand is working on "various projects" with the Japanese marque.

Both companies have been quite vocal against the rush to the widespread adoption of battery EVs. Aside from hydrogen tech, BMW and Toyota believe there's still a future for combustion engines, especially in markets where the charging infrastructure leaves a lot to be desired.

Of course, hydrogen stations are few and far between, and it's not up to the automakers to build them. On the other hand, the EV charging network is rapidly expanding, hence why most car makes are pouring billions into ICE-less cars. BMW will sunset the gasoline engine in Rolls-Royce models at the end of the decade, with Mini to follow suit in the early 2030s. The core brand has not set a cutoff date for the combustion engine.

Plug Power Cuts 2022 Hydrogen-Production Forecast as Two Plants Dropped

(Bloomberg) -- Plug Power Inc. is cutting its hydrogen-production forecast after abandoning plans for two plants and encountering permitting delays at a third facility. 

The company will be able to make about 50 tons of green hydrogen per day by yearend, down from an earlier forecast of 70 tons, Chief Strategy Officer Sanjay Shrestha told analysts and investors gathered Wednesday for Plug’s annual symposium. 

The Latham, New York-based company is building production plants across the US and Europe that will use renewable power to split hydrogen from water, creating a carbon-free fuel. Shrestha said Plug remains on track to hit its forecast of 200 tons per day by the end of 2023.

The company has abandoned plans for plants in Pennsylvania and Canada, and has experienced permitting delays for another site in New York state. However, Plug has other projects in Georgia and Texas, and on Wednesday announced a joint venture with Olin Corp. to build a 15-ton-per-day green hydrogen plant in Louisiana. 

The shares slipped 6.1% to $17.94 at 10:53 a.m. in New York.