Saturday, October 22, 2022

German Government May Have To Inject Another $39 Billion In Energy Giant Uniper

The German government may have to pour another up to $39 billion (40 billion euros) in saving the country’s largest natural gas importer, Uniper, on top of a multi-billion euro rescue package and nationalization, German business daily Handelsblatt reported on Thursday, quoting financial and government sources.  

Last month, the German government, Uniper, and the company’s majority shareholder, Finland-based firm Fortum, agreed on a plan to nationalize the energy giant, aimed at preventing a collapse of the German energy and gas suppliers. Germany will own 99% of Uniper after the nationalization, which involves a capital increase of $7.9 billion (8 billion euros), is completed.

Germany, Europe’s biggest economy, aims to save its energy companies which have been amassing losses with the lack of contracted Russian gas supply and the high price they have had to pay on the spot market to replace lost Russian volumes.

Since the July $15 billion bailout of Uniper, losses at the German company have continued to mount as the energy crisis in Germany and Europe has worsened.

But Uniper now may need another liquidity injection after the government scrapped an idea to introduce a gas levy to all consumers, which would have gone to energy companies.

The rescuing of the biggest gas importer in Germany is becoming increasingly expensive for the government, which may have to splash a small to mid-double-digit sum in euros. In total, the new rescue package could cost the government another $9.8 billion (10 billion euros) to $39 billion (40 billion euros), a source familiar with the discussions told Handelsblatt.

After the scrapping of the idea of a gas levy, Uniper will now need additional liquidity assistance, the newspaper reported. The German government could come up as soon as next week with a new concept on how to further help Uniper, according to Handelsblatt’s sources.    
By Tsvetana Paraskova for Oilprice.com

Shell Resumes Oil Flows From Key Nigerian Terminal

  • Oil flows from the Forcados terminal in Nigeria has been restarted following a months-long pause.

  • Shell, the operator of the terminal, halted exports in mid-July due to a leak in a subsea mooring line.

  • The resumption of oil flowing into Forcados for export could lead to a sharp increase in Nigeria’s oil production and exports.

Shell has resumed exports from its Forcados oil terminal in Nigeria after a months-long pause, Shell Nigeria said late on Thursday night.

Oil exports resumed on October 20, according to the oil company. Before production resumed, the last crude oil exports from the Forcados terminal took place on July 9, according to S&P Platts. Oil flows to the terminal were halted on July 17 due to a leak in a subsea mooring line—a common target for oil thieves.

The resumption of oil flowing into Forcados for export could lead to a sharp increase in Nigeria’s oil production and exports, which have been languishing for years on the back of leaks and underinvestment due to theft.

Higher oil prices, along with increasing a country’s revenue stream, have one unfortunate side effect—it serves as an increased temptation for oil thieves.

Nigeria’s crude oil production slumped to 1.578 million bpd in 2020, according to OPEC’s Monthly Oil Market Report, from 1.786 million bpd in 2019, only to fall further in 2021 to 1.372 million bpd. By September 2022, Nigeria’s production sagged to 1.087 million bpd. The resumption of the Forcados terminal could increase Nigeria’s production by as much as a half a million barrels per day.

Nigeria’s key export grade Forcados was under force majeure in December as well, as a stranded barge prevented tanker loadings. 

Nigeria has been unable to take much advantage of the higher oil price environment like other oil-rich countries, with oil revenues coming in 61% below target during the first four months of 2022, according to Nigeria’s Budget Office. Nigeria’s oil industry continues to be plagued by oil theft, pipeline vandalism, and high gasoline prices, which Nigeria subsidizes. Nigeria imports nearly all the gasoline it consumes.

 By Julianne Geiger for Oilprice.com

Turkey's Precarious Position Between Russia And NATO

  • Turkey has so far been able to strike a delicate balance between its economic partner, Russia, and its NATO allies.

  • Pressured by both sides, Turkey is walking on thin ice, which will paradoxically become more fragile as winter nears.

  • Turkey depends on Russia for 45 percent of its gas, but continued cooperation with Putin is becoming more difficult.

As pressure increases, Turkey’s middle-man position in the Ukraine crisis is becoming harder to maintain. “Compartmentalization,” meaning separating divisive political, strategic and economic affairs from establishing a working relationship, has been the defining aspect of contemporary Turkish-Russian relations. Throughout the war against Ukraine, Turkey has been rather successful in striking a delicate balance between its Western allies and its economic partner, Russia. This strategy manifests itself in extensive diplomatic negotiations and constant mediation between Kyiv and Moscow. However, being increasingly pressured by both sides as the war drags on and escalates, Ankara’s strategy of compartmentalization risks losing its sustainability and applicability in Ukraine.

Since the outset of the Russian invasion, Ankara has made a significant push to prove its status as a reliable North Atlantic Treaty Organization (NATO) member to its allies. In fact, Turkey was one of the first countries within the alliance to supply Ukraine with critical weapons systems from the outset. Ankara’s military aid has been centered on a heavy supply of unmanned aerial vehicles (UAVs), particularly the combat-proven Bayraktar TB2s, which have turned the tables against Russian forces in the conflict. Since February 24, Turkey’s Baykar sent around 50 TB2s to the Ukrainian Armed Forces (Middle East Eye, June 18).

Besides its famed drone transactions, Turkey has also provided solutions to some pressing strategic problems in Ukraine. A few days after the war began, Ankara was quick to invoke the Montreux Convention and close the Dardanelles and Bosporus Strait to Russian warships (Reuters, February 28). Amid the blockade of the port of Odessa and the looming food crisis, Ankara worked together with the United Nations to establish a grain corridor that enabled the ships trapped in the Ukrainian port to set sail to international markets (UN, September 16).

Additionally, as the middle man, Turkey has facilitated bilateral exchanges and political asylum. A remarkable example here is the recent agreement with Ukrainian President Volodymyr Zelenskyy on providing custody for the five released Azov Battalion commanders until the war’s end (Twitter, September 22). Another is Ankara’s role in facilitating prisoner exchanges between Russia and Ukraine in late September 2022 (TRT WorldSeptember 26).

Nevertheless, as Turkey pushes to prove itself as a reliable NATO state, geo-economic constraints remain. Turkey shares maritime borders with Russia, and the Moscow-Ankara balance of power is crucial for security in the Black Sea region. The two countries also have undeniable economic bonds, which mainly manifest themselves in the forms of tourism and trade. Besides, Russia has repeatedly claimed that it is ready to fill gaps in Turkey’s pressing security requirements—deficiencies partly created by mistakes in Turkish policy, as well as Western negligence.

This is why, while bolstering Ukraine’s military capabilities vis-à-vis Russian aggression, Turkish President Recep Tayyip Erdogan also winks at Putin as he says Turkey can consider the Su-35s as an alternative to the F-16 modernization. Similarly, Turkey has an ongoing strategic energy project with Russia, in the form of the Akkuyu Nuclear Power Plant, as well as a recent agreement for a pipeline project that will connect Russian gas to Europe.

Now, however, with Russia’s missiles and Iranian drones raining over civilian targets and infrastructure, including in Kyiv, Turkey could completely turn against Russia on a moral basis. But rationally, Ankara would need its Western allies to acknowledge its legitimate security concerns. At this point, bolstering trust between Turkey and NATO will be crucial.

For decades, Turkey’s compartmentalization strategy served it well in most circumstances. Yet, in the case of Ukraine, the time for Ankara’s role as the middle-man may have reached its end. This reality manifests itself in Turkish Foreign Minister Mevlut Cavusoglu’s statement in early October 2022. The government official declared that both sides, Ukraine and Russia, had “quickly moved away from diplomacy” and that a “viable ceasefire” between the two parties must be “established as soon as possible” (Hürriyet, October 11). This statement is only natural, as Turkey still depends on Russia in various critical sectors, including energy, tourism and security.


Regarding energy, Turkey still depends on Russia for 45 percent of its gas (Al Monitor, July 28). Amid a lingering economic crisis, it remains unclear whether Turkey will be able to pay the price Russia demands. Despite the new plans to turn Turkey into an energy hub that will transit from Russian gas fields to European markets, the (supply) security and functioning of TurkStream is in Russia’s unstable hands, increasing vulnerability for Ankara and its Western allies (Al Jazeera, October 14). Put briefly, the new plan suggests establishing a distribution center in Turkey to export more gas to Europe through TurkStream, potentially in the Thrace region. Although this new project will play well for Erdogan domestically, it may put Turkey in a more difficult spot vis-à-vis its Western allies, who are actively trying to reduce their energy dependency on Russia.

On the financial side, the Turkish banking system is being increasingly pressured by the West, which has led to major Turkish banks suspending payment under Russia’s Mir system (Financial Times, September 28). This decision pushes Turkey to consider other alternatives for engaging in transactions with Russia, which will gain further importance as young Russians fleeing mobilization are relocating to Turkey in even greater numbers. Yet, Moscow’s need for transit routes may put more pressure on Ankara, especially if current routes remain compromised.

Pressured by both sides, Turkey is walking on thin ice, which will paradoxically become more fragile as winter nears. Indeed, encouraging Ankara to make the right decision for its NATO allies will involve an open dialogue that emphasizes shared interests, as well as empathy for Turkey’s security concerns and needs.

By the Jamestown Foundation

Will Bioenergy Ever Be Competitive?

  • New research found that miscanthus and sorghum – both C4 plant species – occupy a distinct niche of the leaf economics spectrum (LES), with greater photosynthetic rates and nitrogen use efficiency than more common C3 plants.

  • The CABBI researchers showed that C4 bioenergy crops have higher photosynthetic rates and greater nitrogen use efficiency.

  • This is the kind of research that can get more renewable raw materials competitive in the fuels marketplace.

A study led by researchers at the Center for Advanced Bioenergy and Bioproducts Innovation (CABBI) improves understanding of leaf functional relationships and provides valuable new information for scientists modeling the productivity of C4 bioenergy crops. The research team found that miscanthus and sorghum – both C4 plant species – occupy a distinct niche of the leaf economics spectrum (LES), with greater photosynthetic rates and nitrogen use efficiency than more common C3 plants.

The study, published in Plant, Cell & Environment, was led by Postdoctoral Researcher Shuai Li of CABBI, a U.S. Department of Energy-funded Bioenergy Research Center. Li works with Lisa Ainsworth, a Plant Physiologist with the U.S. Department of Agriculture’s Agricultural Research Service (USDA-ARS) Global Change and Photosynthesis Research Unit and Adjunct Professor of Plant Biology and the Carl R. Woese Institute of Genomic Biology (IGB) at the University of Illinois Urbana-Champaign.

LES describes relationships among leaf traits reflecting fundamental trade-offs underpinning key ecological strategies for resource acquisition and use in plants. It is largely based on information from C3 species in natural environments and has been studied rarely in C4 crops, which use a different carbon-fixation process: C4 plants convert sunlight energy into 4-carbon molecules, whereas the first photosynthesis product of C3 plants is a 3-carbon molecule. C4 plants make up about 3% of land plant species but include major sources of food and biofuels worldwide, such as maize, sorghum, and miscanthus.

The CABBI researchers showed that C4 bioenergy crops occupy a distinct range of the LES, with higher photosynthetic rates and greater nitrogen use efficiency. Additionally, Miscanthus × giganteus genotypes with different ploidy levels (or number of chromosome pairs) exhibit leaf trait divergence and distinct leaf functional relationships compared to C3 plants.

By expanding the trait relationships described in the LES to include C4 crops in agricultural conditions, the study enhances understanding of overall worldwide patterns in leaf functional relationships and offers insight into the potential for ploidy to improve resource use efficiency, Ainsworth said.

“This study took advantage of diverse plantings of miscanthus in Illinois and Mississippi to test how leaf properties vary in different lines and in different environments,” Ainsworth said. “We studied the investment that different miscanthus lines make in leaf structure and nutrient content – information that is crucial for modeling productivity of bioenergy crops and where they can be grown.”

***

This is the kind of research that can get more renewable raw materials competitive in the fuels marketplace. The reality that petroleum is still a leading fuel is do to its 150+ year head start and its versatility. Biofuels have a long way to go the get past the simple things like sugar cane and corn becoming ethanol. An advantage is there are immense advantages to liquid biofuels compared to gasses like pure hydrogen.

It's been quite some time since we’ve seen biofuel news, which makes this post especially welcome. Not to be remiss, this research was a fairly large effort, so the names of the participants follow.

By Brian Westenhaus via New Energy And Fuel

Lithium-oxygen batteries one step closer to moving out of the lab

Staff Writer | October 21, 2022 |

Oxygen tanks. (Reference image by Monica Volpin, Pixabay.)

Researchers at the Chinese Academy of Sciences have fabricated two-dimensional Mn3O4 nanosheets with dominant crystal planes on graphene (Mn3O4 NS/G) as efficient oxygen catalysts for lithium-oxygen batteries, achieving ultrahigh capacity and long-term stability.


In a study published in the journal ACS Catalysis, the scientists explain that Li-O2 batteries are among the most promising devices for the green energy transition due to their high theoretical energy density. However, the poor catalytic performance of its air cathode has impeded its commercialization.

This is why – they say – it is crucial to design oxygen catalysts with well-defined shapes and high-activity crystal facets that can effectively regulate the oxygen reduction reaction and the oxygen evolution reaction at the three-phase interfaces. The problem is that this process remains challenging.

Through their testing, the researchers noticed that the Mn3O4 NS/G with the facets (101) and enriched oxygen vacancies offered a lower charge overpotential of 0.86 V than that of Mn3O4 nanoparticles on graphene (1.15 V).

Moreover, the Mn3O4 NS/G cathode exhibited long-term stability over 1,300 hours and ultrahigh specific capacity up to 35,583 mAh/g at 200 mA/g, outperforming most Mn-based oxides for Li-O2 batteries previously studied.

“This work may provide clues for engineering Mn-based materials with a defined crystal facet for high-performance Li-O2 batteries,” Wu Zhongshuai, co-lead author of the research, said in a media statement.

New Research Paves The Way For Safer, Cheaper Lithium-Ion Batteries

  • Researchers have created a hybrid electrolyte that could provide a safer polymeric solid electrolyte for lithium-ion batteries.

  • Lithium-ion batteries are one of the most used batteries that support the modern information technology society, including smartphones and EVs.

  • If this solid electrolyte can scale up for manufacturing at low cost and offer a much safer lithium-ion battery.

Tohoku University research has resulted in a hybrid electrolyte that is both more stable while also retaining excellent conductivity. This should provide a safer polymeric solid electrolyte for Li-ion batteries with a myriad of applications.

The research group’s paper, “Increasing the ionic conductivity and lithium-ion transport of photo-cross-linked polymer with hexagonal arranged porous film hybrids,” has been published in the free access journal iScience.

Lithium-ion batteries (LIBs) are one of the most used batteries that support the modern information technology society, including smartphones and EVs. LIBs are repeatedly charged and discharged by Li-ions passing back and forth between the positive and negative electrodes, with the Li-ion electrolyte acting as a passageway for the ions. Normally, organic electrolytes such as liquid ethylene carbonate (EC) and their gels have been used as the Li-ion electrolyte due to their voltage resistance and ionic conductivity. However, as the liquids and gels are flammable, a switch to safer polymeric solid electrolytes is preferable.

Polymeric solid electrolytes such as polyethylene glycol (PEG) have been proposed as impact-resistant Li-ion electrolytes. However, PEG-based polymer electrolytes crystallize near room temperature, resulting in a significant drop in Li-ion conductivity to around 10-6 S/cm at room temperature.

To solve this problem, the research group invented a new type of polymeric solid electrolyte by combining a porous polymer membrane with pores of several microns and a photo-cross-linkable polyethylene glycol PEG-based polymer electrolyte.

The polymeric solid electrolyte realized a wide potential window (4.7 V), a high Li-ion conductivity in the 10-4 S/cm class, which is equivalent to a liquid and sufficient for practical use, and a high Li-ion transference number (0.39).

Li-ions transferring in the electrolyte move in various directions due to natural diffusion. The distance is several µm to 10 µm and does not always move linearly between electrodes, which is one of the reasons for the decrease in ionic conductivity. In the present study, therefore, the performance of photo-cross-linked PEG-based solid polymer electrolytes was improved by constructing them with micron-sized porous membranes.

This polymeric solid electrolyte not only shows high performance as an electrolyte but is also expected to be effective in deterring the formation of Li dendrites (dendritic crystals), which can cause ignition, due to the inclusion of a porous membrane. Through the realization of safe, high-performance LIBs, this achievement will contribute to the realization of a sustainable energy supply, which is the seventh goal of the Sustainable Development Goals.

***

This might be the tech that really sets off lithium ion from the oncoming competing battery chemistries. While we’re pretty safe using lithium ion in small single batteries for cell phones and even laptops, larger ones in bunches as in cars and busses have offered some spectacular fires, way too often. Curiously, they also seem to ignite themselves when surviving a hurricane, albeit likely having been soaked in salt water.

There is a high probability that competing chemistries will have problems maturing too.

If this solid electrolyte can scale up for manufacturing at low cost and offer a much safer lithium ion battery, that would be quite an improvement. Let hope it scales up at a really low cost.

By Brian Westenhaus via New Energy and Fuel