Russia’s Nuclear Energy Diplomacy, Explained

By RFE/RL staff - Oct 19, 2024

Kazakhstan's recent referendum approved the construction of a nuclear power plant, but the selection of the builder remains a complex geopolitical decision.

Russia's Rosatom is a leading contender, with a strong track record in building nuclear plants globally, but its involvement raises concerns about dependence and security risks.

Kazakhstan favors an international consortium to mitigate risks, but the feasibility and effectiveness of such an approach are uncertain.




With the result of Kazakhstan's controversial nuclear power referendum being a resounding "yes," attention now turns to which country will build the facility.

Kazakhstan's government has spoken in favor of an international consortium of nuclear energy companies taking up the task while noting that a final decision will not be made until next year.

But if Kazakhstan were to ignore Russia's Rosatom completely, it would be bucking a global trend.

Amid the war in Ukraine, and Moscow's increased diplomatic isolation, nuclear energy projects in foreign countries have become an even more important part of Russia's efforts to retain clout on the international stage.

Indeed, in a paper on Russian "nuclear energy diplomacy" published last year, scholars from the Norwegian Institute of International Affairs argued that nuclear energy could be "Russia's overlooked trump card in a decarbonizing world."

With the stakes high, the Kremlin will no doubt be expecting its energy-strapped partners in Central Asia to play ball, with Uzbekistan already signed up for a small Rosatom-built nuclear power plant and Kyrgyzstan mulling a facility that would be even smaller.

But at what cost -- financial or otherwise -- might Rosatom's growing outreach in the neighborhood come?

"Central Asia has a special place in Russian nuclear energy diplomacy because of the post-Soviet heritage, meaning that Rosatom's operations in the region are easier and smoother than elsewhere -- no language barrier, institutional and personal contacts going back to Soviet times," a co-author of the paper, Kacper Szulecki, told RFE/RL.

In this way "nuclear energy can be an element of [Russia's] maintaining visible economic and symbolic presence in the region," he said.

At the same time, nuclear power projects can create "hard dependencies" for host countries if their share of total power production becomes significant, while posing security risks that are unique to nuclear power, Szulecki argued.


"Some of the risks we examined [in the paper], like sabotage, are things which have a low likelihood of occurring, but potentially very destructive impacts," he said.

Globe-Trotting Rosatom

According to The World Nuclear Industry Status Report (WNISR) 2024, Rosatom "is the primary constructor and exporter of reactors, building 26 out of the 59 units under construction worldwide as of mid-2024."

At least 20 of those units are being built outside Russia, with Bangladesh, China, Egypt, India, and Turkey among the clients.

And while nuclear power as a whole has lost its share of global power production since the 2022 Fukushima accident, Russia remains "unashamedly nuclear" in the words of the World Nuclear Association, an advocate for the global industry, prioritizing new reactors over renewables for the most part.


It's not hard to see why.

The bills for nuclear power stations are large and seemingly growing.

The 4.8 gigawatt (GW) Akkuyu nuclear power plant that Rosatom began building in Turkey's Mersin Province in 2018 is commonly referred to in the media as a $20 billion facility.

But as recently as June, Rosatom Director-General Aleksei Likhachev put the price of the plant that will supply around 10 percent of Turkey's total power at $24 billion-$25 billion.

The 2.2 GW facility in Bangladesh is priced at $12.65 billion, with the vast majority of the financing coming via a Russian loan. The agreement for that facility was reached in 2011, with construction only beginning in 2017.

And Kazakh Deputy Prime Minister Roman Sklyar acknowledged -- once the results of the referendum were already in -- that the $10 billion to $12 billion price tag for the model his government is committing to might rise by as much as 50 percent over the next decade with inflation.

While Rosatom's aggressive search for clients is ongoing, it has also lost some as a result of the war.

In 2022, Finnish-led consortium Fennovoima announced that it was pulling out of its planned reactor project with the company, citing delays and increased risks due to the war in Ukraine.

Rosatom has not been directly targeted with sanctions, but some of its supply chains have been affected, delaying projects.

Those risks are seemingly on the minds of policymakers in Central Asia, too.


Tellingly, Skylar said Kazakhstan would include a "sanctions clause" in any agreement for the nuclear power plant, without naming Russia specifically.

Uzbekistan, meanwhile, has reined in its nuclear vision.

In 2018, when Russian President Vladimir Putin paid a visit to Tashkent, the two countries broke ground on building a nuclear facility with a projected 2.4 GW capacity, which would have accounted for around one-fifth of Uzbekistan's energy needs. It was to cost $11 billion.

The needle on that project never really moved after that, and when Putin and his counterpart Shavkat Mirziyoev confirmed a fresh deal for Rosatom to build a nuclear facility in the country of 35 million people earlier this year, it was for a facility that will feature six nuclear reactors with capacities of just 55 megawatts (MW) each.

Talking Consortiums

Central Asian neighbor Kyrgyzstan said in 2023 that it was also in talks with Rosatom for a relatively small nuclear facility with a reported 110 MW capacity.

But in May, Deputy Energy Minister Taalaibek Baygaziev said that just preparing specialists and laying the ground for such a project would take a full decade. By contrast, Rosatom is expected to complete its first foreign foray into wind power -- a 100-MW wind farm in Kyrgyzstan's Issyk-Kul Province -- in the next two years.

While power deficits in Kyrgyzstan and Uzbekistan are more severe, they are also becoming a problem in Kazakhstan, where authorities are adamant that nuclear energy is a big part of the solution.

This week, after the results of a tightly managed October 6 plebiscite showed that more than 70 percent of voters had backed a "yes" vote on the construction of a nuclear power plant, officials from President Qasym-Zhomart Toqaev downward reiterated their preference for an "international consortium" to build the plant.

Sklyar said that such a consortium would consist of "no more than five countries," a figure that presumably takes in China, France, Russia, and South Korea -- the countries that have already registered their interest in building the facility -- as well as Kazakhstan itself.

This idea of an international consortium is in keeping with Kazakhstan's desire to find common ground for partner countries amid sky-high geopolitical tensions.

But even ignoring the complications of getting rivals to work together, that isn't really how nuclear power plants get built, says Mycle Schneider, coordinator and publisher of the 2024 WNISR survey of the industry.

"Yes, nuclear power projects are international and often hundreds of companies can be involved," Schneider told RFE/RL.

"But the main question is always, ‘Who will be the responsible builder that takes on the investment risk?' Five companies with a 20 percent share each of the project? That doesn't happen."

And of those companies orbiting the project -- China's CNNC, France's EDF, South Korea's KEPCO, and Rosatom, "Rosatom is the only one that has been really successful winning foreign contracts to build reactors lately," the industry expert noted.

In a Kazakh government FAQ on the referendum, the government reassured those fearful that the facility might be manipulated by a foreign power. which could wield influence over the country, that the issue was "purely commercial, not political."

"The selected company or group of companies will only be involved in the construction -- not the operation -- of the station," officials insisted.

Again, Schneider argues it's not that simple.

"First, the acquisition of a nuclear power plant is a political issue in itself. Secondly, every power reactor design is highly specific and cannot be operated without technical assistance from the provider," Schneider told RFE/RL. "Operators are even trained for individual reactor models and cannot simply move from one to another. Training of autonomous operators takes years."

By RFE/RL

Aramco CEO Calls for Energy Transition Reset in Developing World

By Irina Slav - Oct 21, 2024



Saudi Aramco’s chief executive Amin Nasser has called for what he dubbed a reset in the transition plans for developing countries, citing strong projected growth in oil demand for the Global South.

Developing economies are growing and living standards are rising, Nasser said today at the Singapore International Energy Week, as cited by Reuters. This growth is driving higher oil demand, he added, noting this demand growth would extend over a long time. Even when growth slows down and eventually stops, Nasser added, demand for oil will remain at a plateau for another extended period.

“If so, more than 100 million barrels per day would realistically still be required by 2050,” Aramco’s chief executive said, adding that “This is a stark contrast with those predicting that oil will, or must, fall to just 25 million barrels per day by then. Being short 75 million barrels every day would be devastating for energy security and affordability.”

Because of all this, developing countries should decide on the best energy mix for themselves, Nasser suggested, as well as on a transition pace that is right for them. “Our main focus should be on the levers available now,” the executive said.

Nasser’s comments come on the heels of a new transition cost estimate for the Asia Pacific by BloombergNEF, which said last week that the region needs to triple what it is already spending on the transition to $2.3 trillion by 2030 in order to stay on course for meeting the Paris Agreement targets.

According to Nasser, Asia and other developing nations may need investments of up to $6 trillion annually to advance the transition. Meanwhile, Asia relies on hydrocarbons for 84% of its energy demand, Nasser said in its comments today. New sources of energy are covering new demand rather than displacing conventional sources of energy, he noted.

By Irina Slav for Oilprice.com

The UAE’s Renewable Energy Giant Plans Massive Global Expansion

By Tsvetana Paraskova - Oct 21, 2024, 5:01 AM CDT



Masdar, the renewables energy giant of the United Arab Emirates (UAE), wants to become one of the world’s biggest renewable companies targeting 100 gigawatts (GW) of solar and wind assets by 2030, CEO Mohamed Jameel Al Ramahi told the Financial Times in an interview published on Monday.

Masdar sees having up to a 35% market share of the renewables power capacity in the Middle East by the end of the decade, 20% of Europe’s clean energy capacity, and up to 25% of the U.S. capacity, Al Ramahi told FT.

Asia will also be a significant part of Masdar’s portfolio, the executive added.

The company’s shareholders are Abu Dhabi’s oil giant ADNOC, Abu Dhabi’s sovereign investment company Mubadala, and state utility giant TAQA.

Masdar is on an investment spree to buy renewable assets worldwide, and this spending drive will continue, Al Ramahi told FT.

Last month, Masdar said it would buy renewable power developer Saeta Yield from Brookfield in a deal valuing the target company at $1.4 billion. Saeta Yield develops, owns, and operates renewable power assets in Spain and Portugal.

The deal would be one of the biggest renewable energy transactions in Spain, one of Europe’s top markets for renewables.

Earlier this year, Masdar also announced an agreement with Spain’s power firm Endesa to become a partner for 2.5 GW of renewable energy assets in Spain.

Masdar also signed in June a $3.5 billion (3.2 billion euro) deal to buy Greece’s Terna Energy in the largest ever energy transaction on the Athens Stock Exchange, and one of largest in the EU renewables industry.

In early October, the UAE firm closed the acquisition of a 50% stake in Terra-Gen Power Holdings II, one of the largest independent renewable energy producers in the United States.

In another strategic market, Masdar is advancing, in partnership with RWE, the Dogger Bank South offshore wind project in the UK, part of the larger Dogger Bank, which will be the world’s biggest offshore wind farm when completed.

By Tsvetana Paraskova for Oilprice.com

Alberta Under Fire From Environmentalists for Restrictions on Renewable Energy

By Felicity Bradstock - Oct 19, 2024

Alberta's government has imposed restrictions on renewable energy projects, claiming that it would prioritize agriculture instead.

The restrictions have been criticized for hindering Alberta's transition to a cleaner energy future and for having little environmental justification.

Despite the restrictions, Alberta's renewable energy capacity has grown significantly in recent years, demonstrating the potential for the province to become a leader in green energy.

The Alberta government is wary of major new wind and solar energy developments due to their potential impact on the environment. However, critics say that the government is restricting green energy growth to focus on the continued production of oil and gas.

Last year, the Alberta government introduced a seven-month moratorium on green energy projects, including wind, solar, hydropower, biomass, and geothermal ventures, to focus on agricultural growth. The province’s Premier Danielle Smith said the government would be putting “agriculture first”, as well as restricting the development of renewable energy projects to at least 35 kilometers away from “pristine viewscapes” and parks and protected areas. Developers were not allowed to establish projects in areas with optimal soil conditions that could be used for agricultural activities. Smith stated, “We need to ensure that we're not sacrificing our future agricultural yields, or tourism dollars, or breathtaking viewscapes to rush renewables developments.”

In February, Smith said that the government had plans to expand the moratorium to restrict the development of solar and wind farms on Alberta's native grassland areas, as well as on irrigated and irrigable land. If these restrictions are put in place, the development of renewable energy projects may be prohibited on up to 40 percent of Alberta’s land. The viewscape limitation alone covers around 23 percent of the province’s land. The government is expected to release its final regulatory changes by the end of 2024.

In an email, the press secretary for Alberta's Utilities Minister Nathan Neudorf, Ashley Stevenson, stated, “These new rules ensure responsible land use, protecting the environment, Albertans' property rights, Alberta's beautiful landscapes, and the best agricultural industry in the world.” Stevenson added, “Our government is focused on putting Albertans first, not industrial power projects.”

The move was heavily criticized by environmentalists who say the government’s decision has little to do with environmental concerns and more to do with the desire to continue bringing in oil and gas revenues. As part of the moratorium, Alberta’s government tasked the Alberta Utilities Commission (AUC) with conducting an inquiry on whether renewables posed significant threats to Alberta’s best agricultural lands. The inquiry found no scientific support for the government’s rationale and suggested that less than 1 percent of prime land would need to be used for green energy projects to support a net-zero outcome.

Green energy advocates believe that expanding Alberta’s renewable energy capacity would threaten the position of the oil and gas industry in the province, which has always been a driving force for revenues and energy security for several decades. While the environmental basis for restricting development may be legitimate, it seems rather ironic that the province is continuing to conduct widespread oil and gas extraction on these lands. Alberta is a major oil producer; in North America, only Texas produces more crude. Alberta not only continues to produce fossil fuels, but it is also responsible for the output of one of the most polluting forms of crude – tar sands. A study published in the journal Science earlier this year showed that Canadian tar sands pollution is likely up to 6,300 percent higher than reported.

Meanwhile, a 2023 survey from the environmental think tank the Pembina Institute showed that opinions of the oil and gas industry amongst Albertans are changing. The survey revealed that 70 percent of Albertans thought the province’s economy was too dependent on oil and gas. In addition, 82 percent of respondents thought the provincial government should take an active role in planning for future job opportunities for energy workers.

The restrictions on renewable energy developments have led to several project cancellations and could deter energy companies from pursuing future projects in Alberta. A study from the Pembina Institute showed that 53 projects were canceled in response to the moratorium, with a combined projected power production capacity of 8,600 MW. Of those, 33 projects, which could have powered almost all of Alberta’s homes, were already in the development queue when the moratorium was released. The 53 projects were expected to contribute $91 million in tax revenues.

The government restrictions on green energy were surprising for many given the clear benefits of the expansion of the sector. Between 2019 and 2023, approximately $3.75 billion was invested in utility-scale wind and solar projects in Alberta and 4,500 workers were hired. Despite the negative outlook, Alberta’s renewable energy capacity has grown significantly in recent years. According to the Canadian Renewable Energy Association, Alberta contributed around 75 percent of Canada’s new renewable electricity generation in 2022. Meanwhile, the energy consultancy Rystad Energy forecast that Alberta would be the country’s biggest wind and solar electricity producer by 2025.

It is still unclear just how expansive the restrictions will be on the development of new renewable energy projects in Alberta. However, there is significant evidence to suggest that the development of green energy projects in the province would have little detrimental impact on the environment. Further, it could help Alberta shift away from a reliance on one of the dirtiest forms of fossil fuels in favor of cleaner alternatives.


By Felicity Bradstock for Oilprice.com

Can Hydropower Survive Climate Change?

By Haley Zaremba - Oct 20, 2024, 

Hydropower, the largest source of clean energy, is facing an existential threat due to climate change-induced droughts.

Droughts in China, Brazil, the US, and Europe have significantly reduced hydropower generation, leading to a resurgence of coal in some regions.

Developing countries like Zambia are particularly vulnerable to hydropower shortages, hindering their ability to transition to renewable energy sources.




Hydropower is the largest source of clean energy in the world, generating more electricity than all other renewable energy resources combined. However, the global rate of hydropower expansion is falling, and the technology faces an existential threat in many parts of the world due to changing weather patterns associated with climate change. This could spell major trouble for global decarbonization efforts as net-zero scenarios rely on a strong continued role for hydropower with an ideal annual growth rate of around 4%.

“In the last five?years the average growth rate was less than one-third of what is required, signaling a need for significantly stronger efforts, especially to streamline permitting and ensure project sustainability,” the International Energy Agency (IEA) reports. “Hydropower plants should be recognised as a reliable backbone of the clean power systems of the future and supported accordingly.”

While hydropower remains an essential part of any net-zero scenario, historic droughts in many parts of the world have proven punishing for hydropower systems and have potentially scared off would-be investors. In 2022, major droughts in China’s Yangtze River basin reduced developed hydropower potential (DHP) by 26%, constituting a major energy security issue for the region and for China as a whole. Similar challenges have been faced in Brazil, the United States, and European countries in the Mediterranean region in recent years, among other locales scattered around the globe. Critically, these are not isolated incidents, nor are they characteristic of one particularly hot and dry period; the risk of similar extreme droughts in the future rises by nearly 90% in some climate scenarios, notably SSP585.

However, studies have shown that hydropower can remain a consistent and reliable source of energy during intense and prolonged periods of drought. During a period of drought in the United States, according to the Department of Energy, “the overall hydropower fleet sustained 80% of its average generation” and “hydropower could still be relied upon to supply flexible power during periods of high energy demand—even during the most severe droughts of the past two decades.” Moreover, hydropower could even play an integral role in drought management.

Nevertheless, during China’s severe bout of droughts in 2022, the country saw a significant return to coal, with widespread ramifications for the whole world’s decarbonization efforts. China is not alone in this pattern, either. Just this month the southern African country of Zambia approved the construction of a brand new coal burning power plant “as it battles a power crisis caused by a record drought, which has stricken its hydro-electricity generation,” according to a report by Bloomberg.

The new coal plant will be the country’s third, following quickly on the heels of Zambia’s second coal-powered plant, approved in July. Currently, Zambia relies on hydropower for 85% of its energy mix, which has rendered it extremely vulnerable to fluctuations in water supply due to extreme and changing weather patterns expected to intensify along with rising global temperatures.

Zambia’s forced embrace of the dirtiest fossil fuel is indicative of a much larger issue regarding the development of affordable and accessible renewable energy resources in developing countries. To keep with net-zero pathways, Africa and other developing nations will be required to “leapfrog” over the development of fossil fuels, essentially skipping what has been an essential step in the sequence of economic development for wealthier nations since the industrial revolution. But the case of Zambia clearly shows that such an approach is still not feasible for countries struggling to meet their country’s energy needs by any means, much less through purely renewable production capacity.

For countries that are already struggling to meet their energy security needs, any threat to capacity could result in major economic shocks. Even if hydropower is still able to produce at 80% capacity in severe drought conditions, that 20% could be make-or-break for strapped economies. This spells major trouble for hydropower and for global decarbonization plans as a whole, which need to see significant continued growth in Asia Pacific, Africa and the Middle East to balance out declining additions in other regions.

By Haley Zaremba for Oilprice.com

China's Belt and Road Initiative Expands into the South Caucasus

By Eurasianet - Oct 20, 2024, 12:00 PM CDT

China has signed trade agreements with Azerbaijan and Georgia to strengthen economic ties and expand trade along the Middle Corridor.

These agreements focus on infrastructure development, streamlined customs procedures, and improved logistics.

Middle Corridor trade has seen a significant increase in 2024, partly due to China's growing involvement in the region.



China is hoping to expand its strategic footprint in the South Caucasus, signing agreements with Azerbaijan and Georgia in recent months designed to expand East-West trade via the Middle Corridor. Those deals, however, appear at this point to be more aspirational than substantial, as they do not involve firm financial commitments.

The most recent deals concluded by Beijing were signed in September. The first was a memorandum of understanding with Georgia covering trade – an economic version of a more far-reaching strategic partnership agreement announcement last year. Among the MoU’s provisions were commitments to jointly develop infrastructure, streamline customs procedures, and improve security and digitization of logistics.

“The signing of the memorandum gives us the opportunity to establish closer trade and economic ties with China, to attract additional investments in the country, and also to increase the export of Georgian products to China,” Georgia’s Ministry of Economy and Sustainable Development said in a statement.

A few days later, on September 19, Azerbaijan’s state rail company announced that China was set to join a joint venture founded last year to enhance the efficient movement of cargo along the Middle Corridor route.

Azerbaijan appears to be a focal point of China’s interests in the Caucasus. The two countries have not only sought to expand trade and investment, but also have tightened political ties. Azerbaijan over the summer sought to increase its role in the Shanghai Cooperation Organization and applied to join the BRICS group of emerging economies, two entities in which China plays a major role.

In July, Azerbaijan and China agreed to elevate relations to a strategic partnership in political, cultural, and economic matters, an arrangement similar to the one announced with Georgia last year. The joint declaration specifically referenced plans to cooperate on the expansion of Middle Corridor trade, adding that the countries aim to “jointly ensure the safety and stability of production and supply chains.”

At the signing ceremony, Chinese leader Xi Jinping said the agreement would “advance the construction of the Trans-Caspian International Transport Route, and ensure the healthy and stable operation of China-Europe freight trains,” according to a statement issued by China’s State Council.

Middle Corridor trade traffic has surged so far in 2024. During the first three quarters of this year, the route handled 3.4 million tons of cargo, marking a 70 percent increase in volume over the same period in 2023, the Trend news agency reported, citing official figures compiled by Kazakhstan’s Transport Ministry.

By Eurasianet.org

Labour’s Leadership Has Sparked Massive Clean Energy Investments in the UK

By Felicity Bradstock - Oct 20, 2024

Private companies have committed over $31 billion to UK renewable energy projects, spurred by Labour’s green-focused policies.

The Labour government’s initiatives include offshore wind expansion, carbon capture, and energy storage, attracting billions more in green investments.

The shift in policy promises to boost job creation and advance the UK’s goal of a zero-carbon electricity system by 2030.


The recent change in leadership in the U.K. and the promise of an accelerated green transition appears to have caught the eyes of private investors, who are now promising to spend heavily on green energy projects. Renewable energy firms have committed over $31 billion in the U.K., and other private companies are investing in renewable energy, clean tech, and decarbonization projects across the country, supported by a favorable shift in national energy policy, as well as several other government initiatives.

Earlier this month, some of the world’s largest green energy companies pledged to invest almost $31.39 billion across the U.K., ahead of a meeting with the recently elected Labour Prime Minister Kier Starmer. The PM stated that the investment promise was “a huge vote of confidence” in the government’s “relentless focus to drive growth across the UK”, which would create thousands of jobs across the U.K. Starmer said, “Whether you’re in Scotland, Wales, Northern Ireland, or England – we are creating the conditions for businesses to thrive, and our international investment summit will be a springboard for every part of the U.K. to be an engine of innovation and investment.”

The Labour government has been under pressure to secure funding to support its election campaign pledge to develop a green economy. The party ambitiously committed to establishing a zero-carbon electricity system by 2030.

This Tuesday, the government held the International Investment Summit with the aim of solidifying the U.K.’s leadership across several key industries. At the summit, the government secured $82.43 billion in private investments, expected to support the creation of almost 38,000 new jobs nationwide. The industries receiving the greatest funding were life sciences, technology, energy, and transport.

At the summit, Spain’s Iberdrola and Norway’s Orsted announced investments totaling $31.39 billion and $10.45 billion respectively. Most of these funds will contribute to the expansion of offshore wind warms. More investments were announced in carbon capture and hydrogen. The transport sector also attracted investor interest, with Macquarie announcing plans to invest almost $1.7 billion in green infrastructure and Octopus Energy’s renewable energy projects, which include solar farms and energy storage systems. This will help the U.K. achieve its electric vehicle (EV) adoption targets.

Orsted’s decision to invest heavily in the U.K.’s energy transition reflects the shift in energy policy under the new Labour Party. Mads Nipper, Orsted’s CEO explained, “The reason we are investing in the UK is that alongside the targets for clean energy, we also see the commitment to creating the policy frameworks required to deliver those targets and a government who wants to work with businesses to enable the investments required.” Iberdrola’s Executive Chairman Ignacio Galán echoed this sentiment, stating, “After having invested more than £30 billion in the last 15 years, the clear policy direction, stable regulatory frameworks and overall attractiveness of the U.K. are leading us to double our investments for 2024 to 2028, reaching up to £24 billion.”

The Labour Party’s Manifesto states “The Conservatives’ ban on new onshore wind, failure to build new nuclear power stations, and decision to scrap investment in home insulation landed British families with amongst the highest energy bills in Europe.” Labour outlined plans to “use public investment to crowd in private funding,” as has been seen in the U.S. through the Biden administration’s climate policy the Inflation Reduction Act. It also pledged to roll out its Green Prosperity Plan to “make Britain a clean energy superpower”.

Since winning the election in July, the Labour Party has introduced several new policies and initiatives aimed at accelerating the country’s green transition. The government introduced a bill to create Great British Energy (GBE), a publicly owned green power firm that will develop and invest in renewable energy projects. Labour has also invested in carbon capture and storage projects in Merseyside and Teesside; carried out successful offshore wind auctions, resulting in 10 new projects; created National Energy System Operator (NESO), splitting it from National Grid; approved three large new solar farms and established a Solar Taskforce.

This month, the government launched a scheme to expand the U.K.’s energy storage infrastructure. This is expected to support the development of the first significant long-duration energy storage facilities in almost four decades and help boost energy security. The move is expected to improve investor confidence and unlock billions in funding for vital projects, as well as support job creation.


The U.K. Energy Minister, Michael Shank, stated, “With these projects storing the surplus clean, homegrown energy produced from renewable sources, we can boost our energy security by relying less on fossil fuels, protect household bills, and help deliver our key mission to make Britain a clean energy superpower.”

The dramatic shift in the U.K.’s energy policy under the recently elected Labour government has already helped attract high levels of private funding in the country’s energy transition. Several major companies have pledged billions in investment for a wide range of green energy, clean tech, and decarbonization projects in just the first three months of new leadership. As greater confidence is felt by investors and the government proves its ability to advance the green transition, we can expect to see billions more in investment.

By Felicity Bradstock for Oilprice.com

Scientists To Drill Volcano In Search Of Unlimited Super-Hot Energy

By Tsvetana Paraskova - Oct 20, 2024

In Iceland, where geothermal is a major source of power and heating, the researchers from the Krafla Magma Testbed (KMT) will be looking to revolutionize geothermal energy.

KMT, which aims to start drilling a well in 2026, will establish the world’s first magma observatory, which will study the magma and potentially develop concepts about the next-generation super-hot geothermal technologies.

Currently, geothermal systems use hot fluids underground. KMT wants to harness the power of the super-hot magma, which makes these fluids hot.


An international team of scientists is preparing to drill into an active volcano in Iceland in search of a better understanding of the properties of the molten rock, magma, deep underneath.

Apart from gaining better insights into the processes taking place under the surface of the Earth, the researchers plan, via a testbed under the Krafla volcano, to look into the potential of super-hot geothermal energy.

The extremely hot temperatures in magma could be a source of limitless 24/7 clean energy, according to the Krafla Magma Testbed (KMT) initiative. This is an international effort to improve volcano monitoring, potentially predict eruptions, and test ideas about tapping into the magma geothermal energy.

As countries look to boost their low-carbon energy sources to reduce emissions and reach net zero, geothermal energy is set to see accelerated growth, according to estimates by research firm Rystad Energy. Currently, the global installed geothermal power generation capacity stands at 16.8 gigawatts electric (GWe). This capacity is expected to increase to 28 GWe by 2030 and 110 GWe by 2050, driven by greenfield projects, brownfield developments, and resource optimization at existing assets, Rystad said in a report this year.

In Iceland, where geothermal is a major source of power and heating, the researchers from the Krafla Magma Testbed (KMT) will be looking to revolutionize geothermal energy.

“It’s like our moonshot. It’s going to transform a lot of things,” Yan Lavallée, a professor of volcanology at the Ludwig-Maximilian University in Munich, who heads KMT’s science committee, told BBC News reporter Adrienne Murray.

KMT, which aims to start drilling a well in 2026, will establish the world’s first magma observatory, which will study the magma and potentially develop concepts about the next-generation super-hot geothermal technologies.

Magma holds five to ten times more energy than conventional geothermal energy, even in Iceland, where the subsurface hosts hot fluids, according to the Ludwig-Maximilian University.

“Learning to access this resource safely will drastically improve the energy landscape in volcanically active countries and worldwide,” said the university, which earlier this year hosted the first official conference of the Krafla Magma Testbed.


Currently, geothermal systems use hot fluids underground. KMT wants to harness the power of the super-hot magma, which makes these fluids hot.

“Magma are extremely energetic. They are the heat source that power the hydrothermal systems that leads to geothermal energy. Why not go to the source?” Lavellee told the BBC.

Just last month, the project secured financing for the next two years after signing an agreement with the Icelandic Ministry of the Environment, Energy, and Climate, Iceland’s national power company Landsvirkjun, and Reykjavik Energy. The agreement marked a new phase for KMT as Reykjavik Energy joined the project.

“Building on the Iceland Deep Drilling Project (IDDP-1), where magma was encountered at a depth of 2.1 km, KMT is dedicated to harnessing the potential of near-magma energy,” the initiative said.

But drilling more than a mile deep into the volcano will not be an easy task, not only in terms of financing. The super-hot temperatures of 500 degrees Celsius, or over 900 F, and the gases deep underground could melt and corrode conventional drilling equipment.


At the University of Iceland, Sigrun Nanna Karlsdottir, a professor of industrial and mechanical engineering, and her team are currently testing materials that would be able to withstand the super-hot magma temperatures.

The team is focusing its efforts on high-grade nickel and titanium alloys, Karlsdottir told the BBC.

Drilling into a volcano will not be an easy task, and it will take years to potentially perfect a way of tapping volcano geothermal power. But if KMT succeeds with major breakthroughs, geothermal energy could enter a new era of providing unlimited round-the-clock renewable energy.

By Tsvetana Paraskova for Oilprice.com

Mozambique police shoot two as Gemfields ruby mine is stormed

Bloomberg News | October 20, 2024 |

Montepuez is an open-pit mine, considered the world’s most lucrative ruby operation. (Image courtesy of Gemfields Group)

About 300 people invaded a pit at the Montepuez ruby mine owned by Gemfields Group Ltd. in northeastern Mozambique on Sunday, chief executive officer Sean Gilbertson said. Two people were shot by police, he said.


A crowd estimated at 500 gathered at a local village later in the evening intending to enter the mine, Gilbertson said by text message. A disinformation campaign circulated earlier that the company “opened its mine for mining by anyone” for 24 hours, he said.

“This campaign is fake” and was promoted by ruby smuggling syndicates, the company said in a statement. “Two people suffered firearm injuries when police responded to escalating aggression.”

The operation supplies about half the world’s rubies, according to the company’s website.

Political tensions have been high in Mozambique since the Oct. 9 general election. Multiple observer organizations have raised questions over the credibility of the nation’s election process.

Opposition leader Venâncio Mondlane, 50, called for street protests on Monday after his legal adviser, Elvino Dias, was gunned down by unknown gunmen.

(By Matthew Hill)

Australia’s MinRes investigating founder over tax questions

Bloomberg News | October 20, 2024 |

Mineral Resources CEO Chris Ellison. Submitted image.

Mineral Resources Ltd. has hired legal counsel to investigate payments made to its founder and managing director Chris Ellison, who failed to declare some revenue to the Australian Taxation Office.


Shares in the Australian miner, which produces iron ore, lithium and natural gas, tumbled as much as 14% on Monday.

Ellison, who has a large stake in the miner, said in an emailed statement that the company set up offshore entities more than 20 years ago that supplied Mineral Resources with mining equipment. However, he did not declare the revenue derived from these equipment supply contracts.

“Regrettably, revenue generated by the overseas entities that we were beneficiaries of was not disclosed to the Australian Taxation Office at that time,” Ellison said. “This was a poor decision and a serious lapse of judgment.”

Mineral Resources said in a corporate filing that it had launched an investigation.

“Mr Ellison self-reported to the Australian Taxation Office, repaid amounts owed and disclosed these matters to the board,” it said. “While this does not diminish what happened, Mr Ellison profoundly regrets his errors of judgment.”

A report in the Australian Financial Review over the weekend said Ellison had cut a deal with the tax office and agreed to pay the outstanding amount. In exchange, the ATO would not reveal the underpayment or investigation to the Australian Federal Police or the Australian Securities and Investments Commission.

“The board has full confidence in Mr Ellison and his leadership of the Mineral Resources executive team,” the company said Monday, adding it will issue a further statement once its inquiries are completed.

Perth-based Mineral Resources has a market value of about A$7.9 billion ($5.3 billion). Earlier this year, Ellison made headlines after stating he wanted to prevent employees at the company’s office from leaving the building to buy coffee.

(By Paul-Alain Hunt)