Big Oil Pours Billions into Biofuel Production to Meet Decarbonization Goals

By Rystad Energy - Nov 20, 2024

Major oil companies are investing in biofuels as a key part of their decarbonization strategies, with a focus on HVO and SAF.

These companies are utilizing a mix of greenfield developments, co-processing, and refinery conversions to increase biofuel production capacity.

BP and Chevron are leading the charge in terms of announced production capacity, with other oil majors also making significant investments in the sector.


Under increasing pressure to decarbonize and shift away from traditional fossil fuels, the world’s leading oil and gas companies are ramping up investments in the biofuels sector. Major players such as BP, Chevron, Shell, TotalEnergies, ExxonMobil and Eni are incorporating biofuels into their broader energy transition strategies, recognizing the growing global demand for sustainable fuel sources. According to Rystad Energy’s research, these six oil majors have announced a total of 43 biofuel projects that are either already operational or are targeted to start up by 2030. While investments span various biofuel products, including biodiesel and ethanol, the focus is clearly on hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), which are expected to make up nearly 90% of the projected biofuel production.

Analyzing the implementation of these investments, which could add a combined 286,000 barrels per day (bpd) of production capacity, reveals that 31 projects are greenfield developments. Six involve co-processing — integrating bio feedstock into existing crude-oil refineries to produce a blended feedstock — while another six are full conversions of refineries to facilities dedicated exclusively to biofuel production. Co-processing stands out as a cost-effective option that allows companies to leverage existing infrastructure and reduce upfront investment, making it an appealing choice for oil majors entering the biofuels market.

Supermajors are accelerating investments in biofuels like HVO and SAF, recognizing their potential as low-carbon ‘drop-in’ fuels that can be swiftly integrated into existing aviation, heavy transport and marine fuel systems. As the energy transition progresses, these biofuels offer a practical, near-term solution to reduce emissions without requiring significant changes to current infrastructure. With increasing regulatory pressure to adopt SAF, such as Europe’s ‘ReFuel EU’ initiative and expanding mandates in Asia Pacific, biofuels have shifted from being a potential option to becoming an essential component of decarbonization strategies,

Lars Klesse, Analyst, BioEnergy Research, Rystad Energy





Learn more with Rystad Energy's newly launched BioEnergy Solution.

The 43 biofuel projects announced by oil majors signal promising developments in the industry. Chevron's Geismar project, the largest of the 31 greenfield initiatives, is set to produce 22,000 bpd of biofuel, marking a significant addition to global capacity. Additionally, Chevron’s El Segundo refinery, the largest in co-processing capacity, converted a diesel hydrotreating unit last year into a 10,000 bpd renewable facility. BP's Kwinana project, the largest announced refinery conversion, is also poised to significantly increase the production of sustainable fuels. By 2030, this project is expected to produce 50,000 bpd of HVO and SAF, a gamechanger that could be pivotal for meeting rising demand for biofuels in the near future.

Among the leading companies, BP stands out with the largest announced production capacity in its pipeline, reaching a combined 130,000 bpd of ethanol and HVO/SAF capacity and positioning BP as a global frontrunner in the bioenergy space. Other oil majors, including Chevron, Eni, Shell, TotalEnergies and ExxonMobil, are also making significant strides, particularly in the advanced biofuels sector, although many of these projects are still in development.

BP and Chevron hold significant positions in operational capacity. BP's acquisition of Bunge Bioenergia, a leading Brazilian biofuel producer, has substantially increased its production capacity to approximately 66,000 bpd. The acquisition has enabled BP to exceed its 2025 milestone of 50,000 bpd and positions the company to achieve its biofuel target of 100,000 bpd by 2030. Additionally, Chevron's purchase of Renewable Energy Group and Eni's operational advanced biofuel capacity of 22,000 bpd, driven by both co-processing and conversion projects, further solidify their positions in the expanding biofuels market.




TotalEnergies has also outlined aggressive biofuel targets, aiming to use waste biomass for 75% of its biofuel production by the end of 2024. To achieve this, the French integrated energy and petroleum company plans to prioritize waste and residues from the food industry, such as used oils and animal fats, to avoid land-use conflicts. Meanwhile, ExxonMobil is gearing up to start biofuel production at its Strathcona Refinery next year, with an initial capacity of 20,000 bpd. The company also plans to launch 12 additional biofuel projects to help it reach its goal of 200,000 bpd by 2030.

As oil majors shift to lower-carbon energy, there is a clear trend toward advanced biofuels, particularly HVO and SAF, with companies scaling up production to meet rising demand from the aviation and heavy transport sectors. Despite some project delays, biofuels are seeing a significant increase in investment and innovation as 2030 decarbonization targets loom and the market for fossil-fuel alternatives grows.

By Rystad Energy

India Poised to Double Down on Natural Gas Amid Rapid Growth

By Tsvetana Paraskova - Nov 21, 2024

India's natural gas demand is expected to double by 2040 and triple by 2050.

Despite rising domestic production, India will increasingly rely on liquefied natural gas imports, especially from Qatar and the Middle East.

Natural gas will play a key role in India's energy transition, supporting industrial processes and reducing reliance on coal.


India’s energy demand growth is not limited to oil. The world’s third-largest crude oil importer is set to become a major force in the natural gas market as its demand is expected to surge in the coming decades amid industry and population expansion.

The share of natural gas in India’s primary energy supply is currently between 6% and 8%, according to data from various government statistics and international forecasters such as the International Energy Agency (IEA) and the Statistical Review of World Energy published annually by the Energy Institute.

Small Share of Natural Gas in Power Generation

Unlike in other major economies, India’s share of gas used for power generation is smaller as the country continues to bet big on coal-fired electricity and expands renewables capacity. India has a goal to reach net-zero, but two decades later than most countries, in 2070.

Renewable capacity installations are booming, with the 200 gigawatt (GW) milestone reached in October, data from India’s Central Electricity Authority showed earlier this month. Renewable electricity generation capacity now stands at 203.18 GW, up by 13.5% compared to October 2023. Renewable energy now accounts for 46.3% of total installed capacity of 453 GW.

Related: World’s Largest Climate Fund Sees Few Investment Opportunities

India targets to have a total of 500 GW power capacity from non-fossil sources by 2030.

While the country continues to boost renewable capacity installations for power generation, it will increasingly rely on natural gas for industrial production and processes, especially in fertilizers, oil refining, and petrochemicals.

Industry to Drive Gas Demand Surge

As India sees fertilizers as a critical industry for its agricultural sector, and as steelmaking and construction are booming to meet the growing economy and population, natural gas demand will continue to rise. India’s domestic production, although it has increased over the past two decades, will not be enough to meet growth in demand. So the country will have to rely on more liquefied natural gas (LNG) imports, considering that it lacks pipeline connections with major gas producers such as Russia or the Gulf petrostates.

Shell, the world’s top LNG trader, expects global LNG demand to surge by 50% by 2040, driven by higher demand from Asia, with coal-to-gas switching in China and a boost in LNG consumption to fuel economic growth in South and Southeast Asia.

In the fiscal year 2023, India imported about 20 million tons of LNG, more than half of which from Qatar, according to government data. The United Arab Emirates (UAE) and the United States were the next two big suppliers of LNG to India.

These imports are set to jump in the coming years as India is expanding its refining, petrochemicals, and fertilizer industries, and economic and population growth spur additional demand for construction, steelmaking, and gas-fueled vehicles.

India was the fastest-growing major economy in 2023, with GDP increasing by 7.8%. It is on track to become the third-largest economy in the world by 2028, the IEA said in its World Energy Outlook 2024.

Population and GDP growth, as well as a shift towards cleaner energy, are set to nearly double India’s gas consumption to 113.7 billion cubic meters (Bcm) by 2040 from 65 billion cubic meters (Bcm) in 2023, according to Rystad Energy research last month.

Near-term demand is supported by a 51% jump in domestic gas production since 2020 but this will not be enough to meet the country’s growing demand for natural gas.


“The result is that India will continue to rely heavily on imports to satisfy its future energy needs,” Rystad Energy’s analysts noted.

Rising gas demand could prompt India to move to contract more LNG production from the Middle East, according to Kaushal Ramesh, Vice President, Gas & LNG Research, at Rystad Energy.

“The geographical proximity of the two regions, combined with the substantial volume of uncontracted LNG production in the Middle East, presents an excellent opportunity for India to secure favorable terms – it’s an ideal buyer-seller relationship that could help fuel India’s needs,” Ramesh said.

India’s gas demand growth will be driven by industry. Natural gas is the input for the production of urea, key for fertilizers. India will continue to support urea production, regardless of natural gas prices, as it aims to ensure food security, Rystad says.

Then there is the refining sector, which also consumes a lot of natural gas. Indian refiners plan capacity expansions to meet rising demand for fuels and petrochemicals.


Moreover, India aims to be a refining hub in Asia as it is boosting refining capacity and expects to continue relying on fossil fuels until at least 2040.

India’s natural gas consumption is set to triple by 2050 amid industry expansion and rising oil refining, the U.S. Energy Information Administration (EIA) said earlier this year.

In 2022, India’s natural gas consumption amounted to 7.0 billion cubic feet per day (Bcf/d), with over 70% of the demand coming from the industrial sector. By 2050, India’s natural gas consumption is set to more than triple to 23.2 Bcf/d, according to EIA’s estimates.

Among India’s five consuming sectors, the industrial sector’s share of gas consumption will grow the most, rising to 80% of total consumption, followed by the transportation sector rising to 10%.

By 2050, gas consumption will surge by more than 250% for the production of basic chemicals and by more than 400% for refining, with the two industries together accounting for about 79% of India’s industrial natural gas demand in 2050, the EIA reckons.


By Tsvetana Paraskova for Oilprice.com

US Breaks Dependence on Gasoline Imports

OIL PRICE

By Editorial Dept - Nov 16, 2024

In the latest edition of the Numbers Report, we will take a look at some of the most interesting figures put out this week in the energy and metals sectors. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.
Let’s take a look.

1. US Downstream Sector Keeps on Giving Despite Shrinking Margins



- US refiners saw their average earnings per share decline to 25 cents this past quarter from $4.75 per barrel in Q3 2023 and $4.85 per barrel in Q3 2022.
- Nevertheless, shareholder returns remained very robust at $5.2 billion in total, as demonstrated by Marathon which paid $3 billion to its shareholders and has $8.5 billion in share buyback authorizations.
- Weaker gasoline and diesel cracks on the back of an oversaturated Atlantic Basin fuel market put a lot of pressure on refiners, as Valero and Marathon are up 6% on the year compared to the energy sector’s average growth of 13%.
- Margins are expected to be relatively weak in Q4 this year, with some respite coming early next year once LyondellBasell shuts its 257,000 b/d Houston refinery.


2. US Breaks Dependence on Gasoline Imports



- The United States is the world’s single largest gasoline market, however, due to regional discrepancies continues to import gasoline from other regions, mostly Europe.
- This trend now seems to be ebbing as gasoline imports to the U.S. averaged only 320,000 b/d in October, the lowest monthly reading in at least a decade, according to Kpler data.
- This comes as US refiners cranked up gasoline production after maintenance, tallying up only 333 unplanned outages across the country in Q3, the lowest number in three years.
- US gasoline demand has held up quite nicely against a creeping hybrid/EV market penetration, with the EIA’s demand metric showing consumption around 9 million b/d, unchanged from a year ago.

3. Chinese Overcapacity in Copper Aggaravates Trump Risks




- Chinese overcapacity has become one of the key market trends in metal and renewable markets this year, with copper facing its very own dilemma of Chinese domination.
- China already controls half of copper refining globally and continues its capacity expansion at breakneck speed, hurting European or Chilean operations as it is set to mark another 5% annual increase in 2024.
- The pressure on smelters is such that copper treatment fees are expected to drop to a mere $40 per metric tonne next year, halving compared to 2024 levels and marking the lowest level since 2004.
- Meanwhile, copper prices have plunged following Donald Trump’s re-election and expectations of tariff wars leading to trade disruptions, with the three-month LME contract shedding 8% since and trading below $9,000 per metric tonne.

4. Buoyed by China’s EV Bonanza, Electric Vehicles Rise Higher



- Global sales of fully electric and hybrid vehicles rose to another all-time high in October, hitting a 35% year-over-year growth rate led by a 54% annual jump in Chinese EV sales.
- European sales readings are posting only moderate increases after most government subsidies were scrapped, however the continent is still in the green with a 0.8% year-over-year rise
- China now accounts for 70% of global EV sales and that metric could even go higher in November-December, traditionally robust months for Chinese car buyers.
- In the United States and Canada, sales of electric vehicles were up by 11% from a year ago at 0.16 million units, however North American sales are just a half of Europe’s and one-seventh of China’s.

5. After Years of Freefall, Lithium Starts to Rise Again




Lithium prices are finally on the rise thanks to strong automotive demand in China and supply cuts, with lithium carbonate prices gaining more than 8% over the past month and hitting a three-month high.
Beijing has expanded subsidies for prospective EV buyers to $3,000, buoying demand, whilst prices were also lifted by speculation that external buyers are stocking up lithium ahead of potential tariff wars.
Simultaneously, some 190,000 metric tonnes of lithium mine capacity was shut by producers this year due to the profitability of mining, with another 50,000 mtpa delayed.
The price rally could be relatively short-lived as metal analysts still see a slight balance surplus in 2025 and rising protectionism presents a notable downside risk for lithium miners.

6. Europe Hits a Premium vs Asia as Supply Risks Proliferate



Northwest European LNG prices flipped to a premium vis-a-vis Asian benchmarks for the first time in 2024, trading just a tad north of $14 per mmBtu, some $0.30 per mmBtu higher than JKM.
Alongside the still unresolved Ukraine-Russia gas transit conundrum and streaks of cold weather in November, litigation between Russia’s Gazprom and Austria’s OMV emerged as a new pain point.
The Austrian energy major warned of potential disruptions in Russian gas supply as soon as this month as it seeks to recover the $243 million arbitration award from Gazprom in delivered gas.
Gas inventories have been depleting quicker than last year, with the rate of withdrawals averaging 0.039% this winter compared to the 0.09% injection rate in the same period of 2023, leading to mountain temperate concerns, too.


7. Here Come the Chip Wars



According to Reuters, the US Department of Commerce ordered the world’s largest chipmaker, Taiwan’s TSMC to halt shipments of advanced chips to Chinese customers.
The order specifically targets sophisticated chips of 7 nanometers or of more advanced design, seeking to halt the supply that feeds China’s AI accelerator and graphic processing units.
The ban comes after TSMC notified the Commerce Department that one of its chips has been found in a Huawei AI processor, in an apparent violation of export controls.
Beijing has reacted to the chip export ban by saying that the US seeks to raise tension in the Taiwan straits and that the move undermined the commercial interests of Taiwanese companies.

That’s it for this week’s Numbers Report. Thanks for reading, and we’ll see you next week.

INTER-IMPERIALIST RIVALRIES

Libya a New Instrument in Moscow’s European Strategy?

By Cyril Widdershoven - Nov 22, 2024

Russia is strengthening its ties with eastern Libyan warlord General Haftar, aiming to disrupt European energy supplies and expand its geopolitical influence in North Africa.

By leveraging Libya’s vast oil reserves and increasing its military presence at key bases, Russia seeks to displace Western oil companies.

Libya's interest in joining BRICS and Moscow’s growing influence highlight potential shifts in global alliances.


North Africa’s main oil producer, Libya, is again making headlines, mainly in light of OPEC’s ongoing market struggles. At the same time, Europeans are looking at the OPEC member as a potential source for their energy-hungry industries. After Europe’s energy crisis, mainly caused by Russia’s invasion of Ukraine, the Southern Mediterranean is back on the books of politicians and investors. However, amid the ongoing civil war, which has split the country into two main warring factions, international powers have their own strategies in place. While Western powers, led by the US and EU, are backing the still fledgling official government of Libya, Russia and several mainstream Arab powers remain aligned with eastern Libyan warlord General Haftar. While Libya is still producing well below its former historic levels, moves are being made to increase output substantially in the coming years. Moscow, at present, is setting up a major new strategy in which not only the Haftar-Moscow links are being strengthened but also the option of putting Europe’s energy supply at risk.

Some experts have indicated that the current Russia-Haftar discussions have only one main target: to hold Europe to ransom. While most of General Haftar’s military or political decisions are assessed as his own, it now seems that Moscow is partly leading the discussion, enforcing a possible Russian hold on North Africa’s oil and gas future. In recent weeks, Haftar’s closure of Libya’s El Sharara oil field, with a capacity of 300,000 bpd, has mainly hit supplies to European clients, as 80% of the production flows to Europe. El Sharara’s leading operators include Norwegian energy giant Equinor, Austria’s OMV, France’s TotalEnergies, and Spanish operator Repsol.

Related: Russia to Lift Gasoline Export Ban Earlier Than Planned

International media failed to recognize the link between the shutdown and a decision by Italian officials in Naples not to allow Haftar’s son, Saddam, to enter the country. This move followed Spain’s arrest warrant for Saddam Haftar, who is also a leading figure in the Libyan National Army (LNA). Spain accuses Saddam Haftar of trying to acquire lethal drones. Haftar closed down El Sharara to pressure Madrid.

Moscow’s assessment of the situation is clear. A potential conflict between Libya’s LNA-backed powers and European oil and gas operators presents an opening for Russian interests. Gazprom, or possibly a newly merged Russian entity combining Gazprom Neft, Rosneft, and Lukoil, could step in. While this might seem unlikely to Western observers, power dynamics on the ground in eastern Libya favor Moscow. Russia’s creeping influence is already evident in Sub-Saharan Africa, such as in Mali and elsewhere. With around 3,000 mercenaries in Libya, Moscow views the country as a potential hub for further expansion into Africa. Strengthening ties with Haftar benefits both the Libyan warlord—who is losing support from Abu Dhabi and Egypt—and Putin’s struggling regime.

Establishing a stronghold in Libya aligns with former Soviet cooperation agreements and advances Moscow’s goal of targeting Europe’s energy supply. Libya, holding the 9th largest oil reserves in the world, could supply vast volumes of oil and gas to Europe if a peace plan and power-sharing agreement between Haftar in Benghazi (east Libya) and Western-backed PM Abdul al-Dbeibeh in Tripoli (west Libya) could be reached. If not, Moscow may attempt to push out Western oil and gas operators and replace them with its own.

If successful, Moscow could not only weaponize Libya’s energy resources but also gain access to valuable minerals and metals in the country and Sub-Saharan Africa. Libya has shown growing interest in joining BRICS, presenting an economic and political alternative to Western alliances. Libyan officials confirmed this interest during the Russia-Africa Partnership Forum (November 9–10) in Sochi, Russia, though no official invitation has been extended yet.

Last month, investigative platform Eekad reported that Moscow has stepped up its military presence in Libya. Russian forces have established several air bridges to the Brak Al Shati base since March, and increased activities have been reported at four other strategic military bases: Al-Jufra, Al-Gardabiya, Al-Khadim, and the port of Tobruk. Moscow appears intent on using eastern Libya’s oil and gas regions as a gateway into Africa.

As reported by NOC, Libya’s crude oil production currently stands at 1.36 million bpd, with aspirations to reach 2 million bpd by the end of 2025.

By Cyril Widdershoven for Oilprice.com

British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity

me-metals: British Columbia Premier David Eby on Monday split the Ministry of Energy, Mines and Low Carbon Innovation into two: Mining and Critical Minerals and Energy and Climate Solutions, to fast-track projects and tackle regulatory and social challenges.

According to me-metals cited from mining.com, Jagrup Brar, appointed as the first Minister of Mining and Critical Minerals, will oversee 17 projects advancing toward construction. He will also lead reforms to the Mineral Tenure Act (MTA), the government said in a media briefing late Monday. The government sees these tasks as steps to streamline permits, attract investment, and modernize old regulations.

Brar, an MLA for Surrey-Fleetwood since 2017, has no known mining background. However, his appointment was well received by local mining associations.

Eby said the restructuring positions BC to leverage its copper, lithium, and rare earth reserves, materials that are critical for electric vehicles, batteries, and renewable energy.

“The transition to a low-carbon future represents a generational opportunity we must seize, not abandon,” he said during the new cabinet’s swearing-in ceremony Monday in Victoria, just weeks after his NDP party won a tight provincial election.

Keerit Jutla, president and CEO of the Association of Mineral Exploration, told The Northern Miner that the new ministry’s creation is “a significant and important step by the government.”

“I see this government beginning to implement some of the recommendations industry has made,” he said in response to questions.

The new cabinet includes notable appointments such as Brenda Bailey as Finance Minister, Adrian Dix leading the Energy and Climate Solutions portfolio, Ravi Parmar as Minister of Forests, and Christine Boyle overseeing Indigenous Relations and Reconciliation.

“In order for BC to realize its full potential as a natural resource leader, a whole-of-government approach will be needed to ensure it is built holistically, and representative of all of BC, urban and rural,” Jutla said.

Critical vision questioned

Critical minerals are central to BC’s economic vision, with demand for lithium expected to grow sixfold by 2030 and copper demand projected to double by 2050, according to government data. The province’s mineral base could attract billions in investment and create thousands of jobs, particularly in rural areas, industry advocates say.

Yet, the industry remains skeptical. Mining companies cite permitting delays and regulatory uncertainty as major barriers. Approvals often take years. Reforming the MTA to meet Supreme Court-mandated Indigenous consultation requirements will test Brar’s leadership. The government has offered few details on how to fast-track these projects while maintaining environmental standards and honouring Indigenous rights.

Much of the proposed development of mineral resources overlaps with Indigenous land claims. Unresolved issues over sovereignty and benefit-sharing could cause delays. The government has pledged to strengthen partnerships with Indigenous groups. It will include traditional Indigenous knowledge in project planning. However, industry and First Nations question the potential to turn promises into real collaboration.

Environmental concerns further complicate the push for critical minerals. The province touts these resources as vital to the clean energy shift. Yet, mining risks habitat destruction, water contamination, and greenhouse gas emissions, critics like the BC Mining Law Reform network said in its ‘Dirty Dozen 2023’ report.

Others such as the Business Council of BC has said that framing mining as a climate solution oversimplified its impacts. It also doubts the province’s ability to cut emissions 40% below 2007 levels by 2030.

source: mining.com

NEO Battery Materials Awarded as Consortium Partner in $20M Recycled Silicon Battery Project by South Korean Government

November 20, 2024 

Awarded as Consortium Partner in CAD$20M Recycled Silicon Battery Project Organized by the South Korean Ministry of Trade, Industry, and Energy

Major South Korean Battery Value Chain Companies and Universities as Consortium PartnersHansol Chemical as Head Project Organization along with South Korea’s Largest Cathode Materials Producer, INNOX eco-M, LiBEST, etc.

Project Focus: Developing High-Performance, Low-Cost Silicon Anode Materials Based on Silicon Waste from Semiconductor and Photovoltaic Wafer Manufacturing
NEO Battery Materials Acting as Downstream Participant to Jointly Develop High-Performance Silicon Anode Materials with Consortium Partners

TORONTO, Nov. 20, 2024 (GLOBE NEWSWIRE) -- NEO Battery Materials Ltd. (“NEO” or the “Company”) (TSXV: NBM) (OTC: NBMFF), a low-cost silicon anode materials developer that enables longer-running, rapid-charging lithium-ion batteries, is pleased to announce that the Company has been awarded as a consortium partner along with major battery value chain companies and universities in a CAD$20M recycled silicon battery project organized by the South Korean Ministry of Trade, Industry, and Energy.

In a project titled “Recycled Silicon-Based High Energy Density Electrode Manufacturing Technology Development,” the South Korean Ministry of Trade, Industry, and Energy (MOTIE) and the Korea Evaluation Institute of Industrial Technology (KEIT) will invest approximately CAD$20M in government contributions for the next 5 years in consortium partners.

With Hansol Chemical, a leading South Korean chemical materials company, as the head project organization, several major battery and chemicals companies are participating as consortium partners, including South Korea’s largest cathode materials producer, INNOX eco-M (NEO’s recycled silicon collaborator), and LiBEST.

The project will focus on developing high-performance silicon anode materials based on recycled silicon scrap from semiconductor and photovoltaic wafer manufacturing. Consortium partners recognize that solving the limitations of waste materials is critical to achieving price and technological competitiveness for silicon anodes and strengthening sustainability in the lithium-ion battery industry.

NEO Battery Materials will act as a downstream value chain participant. Using recycled silicon inputs optimized with low-cost technologies, NEO will jointly develop silicon anode materials with consortium partners to manufacture high-content silicon anode batteries. This project directly advances the Company’s strategic plan to secure low-cost, high-performance silicon feedstock.

Mr. Spencer Huh, Director, President, and CEO of NEO, commented, “NEO Battery Materials is highly pleased to be a consortium partner in this key project organized by the South Korean federal government. Along with major battery industry players, we are confident in developing low-cost silicon anode materials to attain material circularity and supply chain resiliency. With approximately 900 tons of waste silicon produced annually in South Korea, all consortium partners are motivated to develop effective technologies to recycle and reuse all waste generated moving forward.”

About NEO Battery Materials Ltd.
NEO Battery Materials is a Canadian battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics, and energy storage systems. With a patent-protected, low-cost manufacturing process, NEO Battery enables longer-running and ultra-fast charging batteries compared to existing state-of-the-art technologies. The Company aims to be a globally-leading producer of silicon anode materials for the electric vehicle and energy storage industries. For more information, please visit the Company’s website at: https://www.neobatterymaterials.com/.

British government finds Glencore UK violated business guidelines at its oil operation in Chad

Posted on 21 November 2024

Local communities were harmed by toxic spill in Chad after oversight failures at Glencore’s London headquarters

The British government has today found that Glencore UK failed to take appropriate measures to prevent and mitigate a 2018 toxic spill at its Badila oilfield in Chad, breaching the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. An estimated 18,000 people live in the vicinity of the Badila oilfield.

Glencore is listed on the London Stock Exchange and is one of the world’s largest natural resource companies. Its oil business is managed by Glencore UK Ltd out of its London headquarters.

The findings were made by the UK National Contact Point (NCP) at the Department for Business and Trade, which implements the Guidelines for responsible business conduct of UK-based companies. The Guidelines set standards for issues including human rights, labour rights and environmental practices.

In its statement published today, the NCP publicly criticised Glencore UK for failing to adequately identify, prevent and mitigate the human rights and environmental risks at the Badila oilfield operated by its then wholly owned subsidiary PetroChad Mangara Ltd (PCM). It found that Glencore UK had a business relationship with PCM, and that although Glencore UK was not directly responsible for the spill, it breached its due diligence responsibilities.

Civil society complaint highlights harms caused

The long-overdue NCP findings were in response to a detailed complaint on behalf of local communities filed in 2020 by UK-based corporate watchdog RAID, the Public Interest Law Center (PILC) in Chad and the Association of Young Chadians of the Petroleum Zone (Association des Jeunes Tchadiens de la Zone Petroliere – AJTZP).

The complaint set out the effects of a toxic wastewater spill on 10 September 2018 when a basin holding ‘produced water’ – a by-product of crude oil production – collapsed at the Badila oilfield. Eighty-five million litres of wastewater (the equivalent of 34 Olympic-sized swimming pools) flooded agricultural fields before pouring into the Nya Pende River. Local residents rely on the river for drinking, bathing, washing clothes and watering livestock. A few weeks later, residents also reported an oil pipe leak, an incident contested by the company.

At least 50 local residents living near Glencore UK’s oil operations reported burns, skin lesions, sickness and diarrhoea after bathing in or using the contaminated river water in the weeks following the incidents. Many of those harmed were children, some of whom were hospitalised. Livestock drinking from the river also died.

Anneke Van Woudenberg, RAID’s Executive Director, stated:
“Glencore UK’s failure to conduct proper human rights due diligence has had devastating consequences for communities living near the Badila oil field. While we welcome the NCP’s findings that Glencore UK failed to prevent these harms, it is troubling that the company is not being held accountable for remedying the damage caused.

Not only does the NCP’s decision contradict UK legal precedent, which establishes that parent companies may owe a duty of care to individuals and communities harmed by their subsidiaries’ actions, it also severely fails local communities impacted by the company breaching its responsibilities.

The UK NCP has missed a crucial opportunity to reinforce to UK companies the importance of upholding responsible business practices and the necessity to provide remedies when their actions cause harm.”

According to residents, the basin had been leaking weeks before it collapsed, but Glencore UK failed to properly address the problem or to warn local residents about the impending danger. Residents say the company has still not acknowledged the harm caused or provided remedy, despite the devastating losses.
Frustration with the NCP’s decision

The three groups – RAID, PILC and AJTZP – welcome the NCP’s decision that Glencore UK breached the OECD Guidelines but said they are disappointed the NCP did not consider Glencore UK responsible for remedying the human rights impacts of the Badila spill.

While the NCP viewed the company’s UK headquarters as being at arms-length from the harm caused on the ground, the NGOs argued that, as the 100% owner of PCM, Glencore UK had a greater responsibility for its Chadian operations than the NCP’s characterisation that they held a weaker “business relationship”.

As Glencore sold PCM to the French company Perenco in June 2022, the UK NCP identified four recommendations to strengthen Glencore’s due diligence practices in other and future activities, but did not suggest remedy for the specific case of the Badila spill. The recommendations include: to improve policies on carrying out effective due diligence with regards to its business relationships; to reference due diligence in its environmental policy; to ensure the company’s complaint mechanism is effective and accessible; and to develop and publish due diligence reports regularly.

Aristote Benainou Ngarkaya, President of AJTZP, stated:
“The NCP’s recommendations are insufficient. Although Glencore no longer owns PCM, residents continue to live in a polluted area and suffer from the wastewater spill’s effects. After six years of waiting and an excessively drawn-out UK NCP process, who will provide the remedy they deserve? Glencore UK should own up to its actions and provide full compensation to those affected.”


Glencore UK’s ongoing troubles

The NCP’s decision follows years of international investigations into acts of bribery and corruption by Glencore, including by its UK oil subsidiary. In May 2022, Glencore pled guilty to corruption charges brought against it in the US for widespread bribery in countries across the globe. A month later, in June 2022, its UK subsidiary Glencore UK pled guilty to seven counts of bribery for preferential oil deals in West Africa. A UK court later ordered it to pay £280 million. In August 2024, the UK Serious Fraud Office further charged Alex Beard, who ran Glencore’s oil division from 2007 to 2019 for corruption, alongside others Glencore UK staff. The case is ongoing.

Further background:The UK NCP’s Initial Assessment, the complaint filed to the UK NCP, and RAID’s press release at filing can be found here.
RAID’s 2021 press release can be found here.
RAID’s March 2020 report, Glencore’s Oil Operations in Chad: Local Residents Injured and Ignored, can be found here.
Correspondence between RAID, AJTZP, PILC and Glencore in March 2020 can be found here.

The OECD Guidelines for Multinational Enterprises are the only government-backed international instrument on responsible business conduct with a built-in grievance mechanism. Although the OECD Guidelines are not legally binding on companies, they are binding on signatory governments, such as the UK, which is required to ensure the Guidelines are implemented and observed. The NCP receives complaints against companies that have allegedly failed to adhere to the Guidelines’ standards.


Visit our Chad report here

Timeline:

10 September 2020: The organisations submitted the complaint to the NCP

22 January 2021: The UK NCP issued its Initial Assessment decision accepting the issues for further examination of issues relating to the 2018 wastewater spill and subsequent alleged oil leak. The Initial Assessment does not aim to determine whether the OECD Guidelines were breached.

March 2021: Both parties agreed to enter into mediation.

May 2021: The NCP process was paused, following a mention by Glencore of potential parallel legal proceedings against the company.

March 2022: The NCP proceedings were resumed but Glencore declined to continue mediation citing that the threat of litigation relating to matters being considered within the NCP process meant they could not enter into mediation.

June 2022: Glencore Plc sold PCM to French oil company Perenco.

DIAMONDS

Alrosa plans to scale back production and trim headcount

The company looks to restart production if market conditions improve.

 Credit: Bjoern Wylezich/Shutterstock. · 

GlobalData

Fri, November 22, 2024 


Russian diamond mining company Alrosa could halt some of its production and reduce its workforce size in 2025, reports Reuters citing the company's CEO Pavel Marinychev.

Marinychev said the move comes as a result of "deep crisis" in the global diamond industry and the impact of Western sanctions on Russian diamond sales.

Following Russia’s invasion of Ukraine, sanctions were imposed by Western nations on several Russian companies, including Alrosa.

Marinychev highlighted that for the second consecutive year, diamond prices have been in decline.

The crisis facing Alrosa is intensified by the G7 and EU's ban on Russian diamond purchases, which forms part of the broader sanctions regime.

Marinychev was quoted by the news agency as saying in a local television station in the Yakutia region of Russia's Far East that: "Certain areas that are less profitable, which are at the borderline of profitability, may be subject to suspension during this crisis period."

Despite the potential production halt, the CEO mentioned that operations could be reactivated should market conditions improve.

Marinychev added: “We are currently in a rather difficult situation. Our task is to endure and wait out this period, to wait for prices to start rising again.”

The Russian government has occasionally stepped in to purchase diamonds from Alrosa via a state fund.

To manage costs amidst these challenges, Marinychev looks to reduce labour expenses by 10% in 2025.

This strategy will involve cutting some of the company's 35,000 workforce, though the exact number of staff reductions was not disclosed.

"Alrosa plans to scale back production and trim headcount" was originally created and published by Mining Technology, a GlobalData owned brand.

Russian war machine funded by illicit gold trading, WGC report states


Photo by Reuters

18th November 2024
By: Darren Parker
Creamer Media Senior Contributing Editor Online


Russian State-funded private military company (PMC) Wagner Group is one of the greatest beneficiaries of illicit gold trading, a new report published by the World Gold Council (WGC) shows.

According to the report, penned by former UK Deputy Prime Minister Dominic Raab, estimates suggest the PMC earned more than $2.5-billion from illicit gold mining since the invasion of Ukraine alone, which has been funnelled back into the Russian war machine.


Although artisanal and small-scale gold mining (ASGM) provides income for millions of people in more than 80 countries, some estimates indicate that 80% of ASGM takes place in the shadow economy. The ASGM industry is responsible for an estimated 20% of global yearly gold supply and about 80% of overall gold mining employment.

The report, titled ‘Silence is Golden’, states that ASGM communities are preyed upon by criminal gangs, armed groups and corrupt officials and exploited by intermediaries who launder gold out of countries clandestinely.


“Increasingly, there is evidence of the growing contribution of illegal mining to international crime, corruption and conflict,” Extractive Industries Transparency Initiative board chair Helen Clark says in the report foreword.

However, there are plenty of international and domestic instruments intended to protect ASGM, including the UN Guiding Principles on Business and Human Rights 2011, the EU’s Conflict Minerals legislation and the US Dodd-Frank Act.

Nonetheless, the report states that there is a “striking lack of transparency” across businesses and governments in relation to the implementation of these legal standards, coupled with a dangerous inertia in enforcing the law against the most nefarious criminals involved.

As such, the violence artisanal gold miners suffer ranges from attacks by governments and mercenaries to exploitation from criminal gangs. The illicit profits they make and launder – sometimes through the main international gold hubs, including Hong Kong, India, Miami, Switzerland, Türkiye, and the United Arab Emirates – now present a real and present danger to international security.

Aside from the illicit gold trade funding Russia’s assault on the Ukraine, the trade also fuels civil wars, while funding terrorist groups and organised crime.

The extortion from ASGM communities has been an integral part of the expansion strategy of affiliates of the Islamic State and Al-Qaeda operating in the Sahel. Meanwhile, in Colombia, the Clan del Golfo and former paramilitary groups, the National Liberation Army (ELN) and dissident Revolutionary Armed Forces of Columbia (FARC), finance their activities from illegal mining.

The plunder of ASGM communities also robs the countries affected of a significant amount of income and revenue. In one year, this cost Sudan almost $2-billion.

The report states that there is no panacea to remove these threats. Rather, governments, international organisations and the gold sector must coordinate sustained action to prosecute the criminal perpetrators, prevent illicit profiteering, integrate responsible ASGM into legal and viable supply chains, cut off the profits of criminal actors, and nurture the livelihoods of responsible ASGM communities.

The report outlines several strategic objectives with 24 practical actions for governments, international organisations, non-governmental organisations, mining companies and economic development organisations to combat the illicit gold trade.

The report calls for the International Criminal Court to consider, as part of its investigation in Ukraine, the potential criminal responsibility of those who facilitate illegal refining, laundering and transfer of the profits of the Wagner Group back into the Russian war machine.

Further, the report suggests that governments should implement all of the UN Office on Drugs and Crime’s recommendations to make greater use of UN Conventions to promote better judicial cooperation and more prosecutions.

Donor countries should also provide greater support for regional judicial cooperation with international destinations for gold from ASGM communities under UN Conventions to prosecute illegal gold traffickers on a greater scale.

The report further calls for Interpol to be mandated to deliver a step-change in the use of its data, border controls and operational support to national authorities, including the Red Notice system, to prevent those engaged in the illicit gold trade from slipping through borders.

Another step towards tackling the illicit gold trade would be for members of the World Customs Organisation to expand the international anti-money laundering and terrorist financing initiative Project Tentacle with a properly funded five-year mandate to seize assets from the illicit trade in gold.

The report also calls for governments to enact sanctions under the Magnitsky Law model of visa bans and asset freezes against government leaders and officials who partner or collude with the Wagner Group or any equivalent organisation.

Governments should implement sanctions against high-level individuals and companies involved in the smuggling and laundering of gold.

The report further suggests that governments should review implementation of the Organisation for Economic Cooperation and Development’s (OECD’s) ‘Due Diligence Guidance for Responsible Supply Chains’ in the gold sector, with a renewed focus on refineries and trading hubs.

The Financial Action Task Force should be mandated to renew its 2015 thematic report into the gold sector, make further recommendations and develop a specific framework with key performance indicators that need to be satisfied for any international hub in the gold trade to avoid the ‘black list’ and ‘grey list’.

The report also suggests that governments should require international hubs and major refineries to collate country-level data to build up a clearer picture of ASGM imports and exports, and its corresponding financial flows.

Meanwhile, donor countries should focus aid and development policy to prevent governments from contracting private military groups to maintain security in return for access to natural resources.

With the support of donor countries, the report states that governments of ASGM communities should adopt national legal frameworks that ASGM communities can realistically engage with, and uphold the rule of law applicable to them proportionately.

With the support of donor countries, governments where ASGM exists could provide wider support for the integration of ASGM communities, including with respect to land rights, licensing fees, taxation and geological exploration.

Donor countries’ support for regional cooperation, through organisations such as the Economic Community of West African States, should focus on prevention, including developing an early warning system for vulnerable ASGM communities, to safely alert authorities to early security threats.

Further, the report says Group of Seven (G7) and Group of 20 (G20) governments, alongside the World Bank, should support the expansion of central bank gold-buying schemes to integrate ASGM communities into national legal frameworks, and sign up to the WGC’s London Principles.

Large-scale gold mining companies should adopt and publish a policy for implementing and supporting sustainable supply chains with responsible ASGM communities, in accordance with the WGC’s Responsible Mining Principles.

Further, the report suggests that, where the legal framework and local conditions allow, large-scale gold mining companies should seek to support local ASGM integration. Options might include identifying land for ASGM activities; exploring the potential for tributer, subcontractor and buyback arrangements; and technical support.

Also, governments with significant gold refining and smelting sectors should encourage sourcing from such ASGM communities and incentivise them with targeted tax breaks.

The report says that, where the legal framework and local conditions allow, refiner and smelter businesses should seek to proactively source gold from responsible ASGM communities, and large-scale mining companies should prioritise refiners and smelters which do.

Raab suggests that the London Bullion Market Association implement an ASGM Good Delivery List within two years and publish a plan with milestones and key performance indicators.

This plan should focus on intermediate refiners and aggregators who work with responsible ASGM actors, central banks, large-scale miners who support local ASGM due diligence efforts and mercury-free processing plants that adhere to international standards.

Meanwhile, governments in the major gold-consuming countries should promote awareness among consumers about the source of gold bought in their shops.

Further, G7 and G20 governments should formally recognise that the illicit financial flows from illegal gold mining represent a “systemic threat” to international security.

The G7 and G20 governments should keep the exploitation of ASGM and the related security threats as a standing item on their yearly agenda to focus on the implementation gap.

Raab also suggests that the members of the OECD should expand the organisation’s mandate to make it the central forum on ASGM, with a standalone yearly meeting to coordinate efforts to bridge the implementation gap.

Finally, the WGC should continue to act as a champion and industry leader for innovative collaborations, and a critical adviser to help drive change and expand good practice.

“Without viable economic alternatives, the poorest and most marginalised of our world’s citizens are forced into artisanal gold mining, taking place within hazardous conditions and of little economic gain for their families.

“Our partnership with . . . Raab is a call to action to both redirect illicit gold away from the world’s bad actors and improve the lives of those working in the sector, offering actionable ways that governments and international agencies can contribute to positive change, both environmental and economic for the millions impacted globally,” WGC CEO David Tait says.

Edited by Chanel de Bruyn

ECOCIDE

Chile’s rare salt flat fish face threat from lithium mining project

Reuters | November 20, 2024 | 

Salt flat of Maricunga at sunrise. (Stock image)

At more than 3,700 meters (12,000 feet) above sea level, the “karachi” swims happily in dense salt flat waters, but locals worry a future lithium project will endanger this extreme-environment fish.


The Orestias ascotanensis is a small ray-finned fish that grows to just 7.5 centimeters (3 inches), but has adapted to the Ascotan salt flat’s high concentrations of heavy metals and variable salinity.

The salt flat also sees high solar radiation and temperature variations that reach 26 Celsius (79 Fahrenheit) during the day and below freezing at night, according to Marco Mendez, a professor at the University of Chile who studies evolutionary biology.

Scientists at the Millennium Institute’s genome center have been studying the fish and found genes that allow it to resist each element of its hostile environment, from solar radiation to heavy metals to low oxygen levels.

The fish has also evolved to do it quickly.

“We’ve seen how they’ve done this in a short evolutionary time because there are other variants of this fish in less hostile environments,” said Miguel Allende, director of the institute.

“They’ve taken these genes and exacerbated them.”

While the fish can survive extreme environments, it still needs an environment to live in and residents say copper mining has reduced the fish population due to water extraction.

“That’s what’s hurting them, when they take the water, the fish die,” said Mauricio Anza, a local resident, who said people in the area are working to preserve the areas flora and fauna.

But Ascotan is also one of the salt flats where the government plans to launch a private lithium mining project, something locals and experts say must come with guarantees to safeguard the ecosystem.

“Mining activity, while important from an economic point of view, must be carried out with the aim of ensuring that this very particular environment is not lost forever,” Allende said.

(By Rodrigo Gutierrez and Fabian Cambero; Editing by Alexander Villegas and Sandra Maler)