Friday, September 08, 2023

 

Germany Passes Modified Fossil-Fuel Heating Law

Germany’s lower house of parliament managed to pass a controversial bill that would ban fossil-fuel heating—but the end result was a watered-down version of the bill that will interfere with the country’s ability to meet the industry’s 2030 climate goals, according to Germany’s economy ministry.

Germany has a goal of being climate neutral by 2045, and the bill is considered instrumental in reaching that goal. Included in the bill are provisions that require certain heating systems—those installed in new developments in areas relying on municipal heating—to run on at least 65% renewable energy starting next year. Property owners of existing buildings will have until 2028 to implement the changes, and gas boilers will still be allowed if they are of the type that can be later converted to hydrogen. 

The pushback against the original bill was mainly due to fears that the measures would come with high costs.

The bill passed 399 in favor of the fossil fuel heating ban and 275 against.

The bill now includes the caveat that if a boiler exchange is combined with other renovations, the government will subsidize the cost of the new heating system, providing as much as $96,404 per year. The bill originally called for subsidies that were two-thirds of that. The money for the subsidies will come from its Climate and Transformation Fund.

But not everyone is satisfied with the watered down version, which some environmental groups have argued is now ineffective.

Germany admitted that this version of the bill doesn’t get Germany to its 2030 goal like the previous version did, which called for the green switch earlier than the more palatable version that passed.

By Julianne Geiger for Oilprice.com

 

Mercedes And BMW Unleash New EVs For Chinese Market

Both Mercedes and BMW have their sights set on growth in China and taking down the industry leader, Tesla, new reports revealed this week.

Mercedes is going to try and count on a range boost to beat out Tesla's Model 3. The company's near-production concept of its CLA sedan has 466 miles of range on a single charge, Bloomberg reported this week. 

It's said to be able to add 400km of range in just a 15 minute charge. 

Mercedes Chief Technology Officer Markus Schäfer commented last weekend: “We’re taking it to the next level. This car is extremely important for innovation reasons and to push the limits for what we can do with a series car.”

The company is dealing with "disappointing sales" in China, where it is trying to keep up with both domestic auto manufacturers and lower priced Tesla vehicles. 

Mercedes Chief Executive Officer Ola Källenius has said he thinks the "rapid growth" in the industry is over and that it's time to focus on quality, stating: “After 30, 40 years of an economic wonder, they’re reaching a level of maturity where you’re dealing with structural issues. We have to take a little bit of a cautious stance on that and see how things develop, and not expect rapid growth as far as the economy is concerned in the short term.”

For this reason, he believes Mercedes will be able to sidestep the price war currently taking place in EVs. 

BMW is also hoping its new vehicles can make inroads in China. The automaker presented a prototype of its future electric-vehicle lineup this week, including its Vision Neue Klasse concept car, which will be on display at next week’s IAA show in Munich. 

The vehicle is slated to be released in 2025 and sports a "digital display projected onto the entire width of the windscreen" and goes full Minority Report with " software that can process voice commands and hand gestures", according to Bloomberg

The idea is to appeal to Chinese customers, who tend to like more "gadgets" with their EVs, the report says. 

BMW CEO Chief Executive Officer Oliver Zipse said the vehicle will set BMW's course for "the next decades". 

He has also said that BMW continues to grow in China and isn't negatively affected by the ongoing price war, started by Tesla this year, because of the brand's positioning in the premium market. 

The top-end Neue Klasse models reportedly are going to have a range of up to 497 miles and will be able to charge from 10% to 80% in under 30 minutes. 

By Zerohedge.com

Australia Considers Extending The Life Of Its Biggest Coal Plant

The biggest coal-fired power plant in Australia could see its operating life extended beyond the planned closure in 2025, the government of New South Wales said on Tuesday.

The Eraring Power Station, Australia’s largest coal-fired plant, is located on the shores of Lake Macquarie in New South Wales, approximately 120 kilometers (74 miles) north of Sydney and 40 kilometers (25 miles) south of Newcastle. The station’s operator, Origin Energy, notified in 2022 the Australian Energy Market Operator (AEMO) of the potential early retirement of Eraring in August 2025.  

The station, which has been operating since 1984, comprises four 720 MW coal-fired generator units and one 42 MW diesel generator. This gives it an overall generating capacity of 2,922 MW and makes it Australia’s largest power station, which accounts for around 25% of New South Wales’ power requirements.

Australia plans to retire a lot of its coal fleet by 2033 and to bet on renewable energy, but it faces power shortages if it rushes the energy transition, analysts and AEMO have warned.

The New South Wales government said today that a recent electricity reliability check-up has found there will be reliability challenges for NSW in the next couple of years.

“The government will engage with Origin on its plans for Eraring, at the same time as pursuing all alternative solutions to deliver the renewable generation, transmission and storage solutions that NSW needs,” NSW said.

“The check-up makes it clear that the case for Origin Energy to extend its time frame for Eraring is there, as does the recent AEMO report on reliability,” NSW Minister for Energy, Penny Sharpe, said at a news conference.  

AEMO’s most recent reliability report showed that a central scenario in the analysis found increased reliability risk.

“Over the 10-year outlook, we continue to forecast reliability gaps, which are mostly due to the expectation that 62 percent of today’s coal fleet will retire by 2033,” AEMO CEO Daniel Westerman said.

By Tsvetana Paraskova for Oilprice.com

 

Tata’s Sustainability Shift Could Revolutionize UK Steel

  • The proposed UK government support complements Tata Steel India's £700 million planned investment in Port Talbot.

  • While safeguarding the plant's future is crucial, Tata Steel hints at possible layoffs, impacting up to 3,000 employees.

  • Tata emphasizes the move to low-emission sustainable technologies, aligning with the UK's decarbonization goals.

Via Metal Miner

The British government and Tata Steel remain in discussion regarding the future of the Port Talbot steel manufacturing plant. Recently, the government said they may pledge a substantial £500 million (approx. U.S. $629 million) in financial support for the South Wales facility. This may be in addition to Tata Steel India’s planned investment of £700 million in the same unit, in conjunction with their commitment to construct an electric arc furnace. 

According to the Hindu BusinessLine, Tata Steel responded to a questionnaire saying that talks with the UK government were ongoing. The organizations continue to seek a framework for the continuity and decarbonization of steel making in the UK. Of course, they have to deal with very challenging underlying business conditions, given that several of Tata’s heavy-end assets are approaching the end of life.

The ongoing discussions aim to safeguard the future of the Port Talbot steelworks. At present, the plant has about 8,000 employees. However, Tata Steel recently cautioned that laying off 3,000 of them could prove necessary in the foreseeable future.

Tata Hopes to Embrace More Sustainable Tech

It’s important to point out that the £500 million is nowhere near the £1.5 billion Tate initially sought from the UK government. This was back in January of 2023, when the British government first proposed a comprehensive package for the steel manufacturing industry, including Tata Steel UK.

Following the announcement, Tata Steel indicated its intention to assess the proposed offer thoroughly before determining the future direction of its operations in the UK. Indeed, the country remains steadfastly committed to decarbonization and escalating the carbon tax. According to Tata Steel’s annual report, the transition to alternative technologies has, therefore, become a priority for Port Talbot’s sustainability. Coincidentally, steel exports from India to European countries reached a five-year high between April and July.

The Tata group told the media that given the aging profile of Tata Steel UK’s legacy steel making assets, the UK’s decarbonization journey, and rising carbon costs, it was necessary to move Port Talbot over to low-emission sustainable technologies. This would be the best way to ensure the continuity of steel making in the long-term. Speaking of long-term, no steel buyer should ever make purchasing/sourcing decisions without knowing long-term price projections. MetalMiner Insights provides both short-term and long-term steel price projections. Learn more.

Despite Losses, Tata Remains a Steel Manufacturing Powerhouse

report in moneycontrol.com noted that over the past decade or so, up to FY22, Tata Steel’s UK division had sustained annual losses. These included capital expenditures and amounted to around $393 million a year. Still, both the Netherlands and UK plants are integral components of Tata Steel’s broader European operations.

Tata Steel UK has since streamlined its steel production operations to a single site located in Port Talbot. The facility manages two blast furnaces with a combined production capacity of 5 million tons per annum (MTPA). 

As the largest steel producer in the UK, the company specializes in the manufacture of high-quality strip steel products tailored for diverse sectors. This includes steel manufacturing for the construction, automotive, packaging, and engineering industries. Will this have a significant impact on 2024 steel sourcing? Learn how to manage falling demand, rising prices and supply chain shocks in MetalMiner’s free September workshop here.

By Sohrab Darabshaw

 

Chevron LNG Workers Begin Strike

Workers at the Gorgon and Wheatstone liquefied natural gas projects offshore Australia will begin striking today after talks with the projects’ operator, Chevron fell through.

Talks have been going on for a couple of weeks now, eventually moving to mediation with the participation of the Australian Fair Work Commission.

The trade union alliance representing the workers, the Offshore Alliance, has repeatedly warned that it will cost Chevron billions if it rejects the workers’ demand.

"Despite the Offshore Alliance giving Chevron plenty of opportunity to sort out (bargaining agreements) ... they will finally be facing their day of reckoning," the trade union said earlier today.

Work stoppages at the Gorgon and Wheatstone facilities began at 5 a.m. GMT today and could last for up to 11 hours daily. The industrial action is scheduled to continue until September 14.

Reuters noted in a report that as the strikes begin, the two LNG facilities may need to be shut down, "if there are not competent personnel to undertake handovers during work stoppages," per the OA.

The two projects together account for about 5% of global LNG supply. While Chevron failed to reach a deal with the workers, sector player Woodside, the operator of Australia’s largest LNG facility, the North West Shelf, managed to strike a deal and avert a strike.

The three LNG facilities—the North West Shelf, Gorgon, and Wheatstone—represent a tenth of global LNG supply. The threat of strikes there lifted gas prices considerably and put Europeans on high alert ahead of the coming winter.

Australia, the world’s biggest LNG exporter currently, does not export directly to Europe but due to its size, any disruption in supply there reverberates across the global LNG market. This week prices have been on the rise again, on the news about Chevron. As industrial action begins, they will likely move higher still.

By Irina Slav for Oilprice.com

Strikes Begin at Chevron’s Australian LNG Operations After Talks Break Off

Chevron Australia LNG
Chevron's Gorgon facility which is part of the large export operation will be impacted by the strikes (Chevron)

PUBLISHED SEP 8, 2023 2:47 PM BY THE MARITIME EXECUTIVE

 

The first of the strikes began today at Chevron Australia’s LNG operations sending fears of potential repercussions in the global energy markets as the job actions are due to escalate over the next week. Chevron is one of the world’s largest producers and makes up a large part of Australia’s LNG supply, which is also the largest exporter in Asia.

The Offshore Alliance, which is made up of the Maritime Union of Australia and the Australian Workers Union, delayed the start of the scheduled strike for a day as mediated talks were continuing. Chevron had asked Australia’s Fair Work Commission to become involved in mediating talks this week after the company failed to win support for an Enterprise Agreement it presented to workers without the approval of the union. It was almost unanimously rejected leading to the talks which after five days reportedly also failed. 

A company spokesperson told Reuters, "Unfortunately, following numerous meetings and conciliation sessions before the Fair Work Commission, we remain apart on key terms." The company said the unions were demanding terms "above and beyond" others in the industry.

The Offshore Alliance highlights that Chevron is the only one of the major producers that has failed to reach an agreement now that the government has permitted unions to again collectively negotiate contracts. Woodside had also been faced with a potential strike but after marathon sessions going to the deadline, they announced terms for a preliminary agreement last month. The union says it has bargained in good faith on its demands over wages, overtime, work rules, and job security.

Earlier in the week the union filed a notice that detailed its plans to increase the efforts over the coming week. The current strike will last up to 11 hours and in addition, the union can bar members from undertaking specific tasks. After these intermittent actions, the Offshore Alliance said it will start a two-week work stoppage on September 14 at Chevron’s operations. 

Currently, no new talks are scheduled with the only thing both sides are agreeing on is that they remain far apart. Last year, the Offshore Alliance held out in a 71-day strike against Shell. Work was stopped on the massive Prelude offshore facility and only restarted in September 2022.

Australia is the primary supplier of gas to much of Asia. China and Japan are the two largest importers followed by South Korea and Taiwan. Chevron has been taking steps to increase output from the Gorgon and Wheatstone operations which are being impacted by the strike. They were already supplying at least five percent of global supply.

Traders fear if it becomes a prolonged job action, Asian buyers might be forced to start bidding against the Europeans who are also large imports from both the U.S. and Qatar. Dow Jones reported that prices on the European markets started up by nine percent this morning with Reuters saying intra-day prices were up as much as 12 percent. The U.S. price started the day up more than two percent.


Two-Week Strike Scheduled at Chevron Australia’s LNG Operations

Wheatstone LNG Australia
Strike will include the massive Wheatstone facility in Western Australia (Chevron file photo)

PUBLISHED SEP 5, 2023 6:13 PM BY THE MARITIME EXECUTIVE

 

The contentious labor situation between Chevron Australia and the Offshore Alliance which represents more than 500 workers heated up further with the union announcing today it has served notice for a two-week strike scheduled to begin September 14. This comes as mediators are working all this week in an attempt to reach an agreement before the first limited job actions due to begin on Thursday, September 7.

Chevron Australia, which produces between five and seven percent of the world’s LNG supply from its Australia operations, says that it is looking for the current talks to “narrow the differences” while saying it does not believe a strike is necessary to resolve the issues. The Offshore Alliance, which is a combination of the Maritime Union of Australia and the Australian Workers Union, is escalating the fight against Chevron after reaching a preliminary agreement with Woodside and conducting a strike against Shell in 2022 to win a new collective bargaining agreement. Australia’s new government restored the rights of unions which led to the new round of negotiations for Enterprise Agreements.

“The Offshore Alliance is escalating Protected Industrial Action to demonstrate that our bargaining negotiations are far from 'intractable',” the union wrote in a new posting on social media today. They said their lawyers have notified Chevron that they will escalate work bans and the work stoppage in response to what they say is Chevron Australia’s “duplicitous claim,” about the negotiations.

Last week, Chevron attempted to bypass the union presenting what the company called a “market competitive” offer to the workers at the Gorgon and Wheatstone facilities in Western Australia. The Offshore Alliance reports that only four of the 518 workers voting accepted the terms in what it termed a “humiliating defeat” for Chevron.

After the workers voted down the proposal, Chevron asked Australia’s Fair Work Commission to mediate the negotiations. The mediated sessions began on Monday and are expected to continue each day this week. The union however is already critical of the process saying it is only for the onshore facilities not including the offshore platforms.

The Chevron facilities cover the gas needs of Western Australia and are major exporters primarily to Asia. Analysts speculated to Reuters that Asian buyers might begin to outbid European buyers to meet their LNG needs. Traders have been carefully watching the negotiations and potential impacts on the market. So far, both Bloomberg and Reuters report there has been little change in the price of LNG on world markets. Just over a year ago, the Offshore Alliance held out in a 71-day strike against Shell before terms were reached on the new union contract.


NUKE COP28

Net Zero Nuclear campaign launched, seeking to triple capacity by 2050

07 September 2023


World Nuclear Association and the Emirates Nuclear Energy Corporation (ENEC), with support from the International Atomic Energy Agency’s Atoms4NetZero and the UK government, have launched the Net Zero Nuclear initiative seeking "unprecedented collaboration between government, industry leaders and civil society" ahead of COP28.

The launch took place in London (Image: World Nuclear Association)

The launch of the new campaign - by ENEC Managing Director and CEO Mohamed Al Hammadi, World Nuclear Association Director General Sama Bilbao y León, UK Minister for Nuclear and Networks Andrew Bowie and nuclear advocate and Miss America Grace Stanke - took place on the first morning of the World Nuclear Symposium 2023, attended by 700 people from across the global industry.

The aim of the campaign is to ensure that nuclear energy’s potential "is fully realised in facilitating the decarbonisation of global energy systems by promoting the value of nuclear energy and removing barriers to its growth", especially ahead of COP28, which takes place in the United Arab Emirates later this year.

It says that recent data modelling suggest nuclear energy capacity needs to at least triple by 2050 to achieve climate targets, which would require about 40 GW of new nuclear per year, about six times the deployment rate of the past decade.

At the launch, Al Hammadi said that net-zero “will not be possible without nuclear energy” and said that as well as bringing clean energy day and night, its ability to decarbonise heavy industry and transport meant there should be even greater collaboration to ensure its growth. "Talking is great, but delivering is even greater," he added.

Al Hammadi and Bilbao y León discussed the aims of the initiative (Image: World Nuclear Association)

Bilbao y León said: "Scaling up nuclear energy capacity to at least three times its current size requires political will from energy leaders, along with mobilising quickly and efficiently the required financing. We have no time to lose … through Net Zero Nuclear, we hope to facilitate the action our industry needs to grow."

Grace Stanke, a nuclear engineering student who is spending her year as Miss America raising awareness about nuclear power and zero-carbon energy sources, said many younger people had got involved in nuclear because of climate change, and said that extreme weather events meant climate change was a “pressing issue that we grew up with - we're not afraid to take action, because if we don't take action today, we won't have a tomorrow" adding that it was "important to have this conversation at the international level … let's start at the top because if it's not happening everywhere, on this planet, what's the point?"

The UK Department for Energy Security and Net Zero announced at the launch that it would be joining Net Zero Nuclear as the inaugural government partner, with Bowie echoing the point that there could be “no net zero without nuclear”. He highlighted the UK’s plans for new nuclear capacity - large plants and small modular reactors - and stressed the need for international collaboration.

Zronek highlighted positive developments taking place (Image: World Nuclear Association)

Earlier, opening the annual conference, World Nuclear Association chairman Bohdan Zronek, director of ČEZ's nuclear energy division, and Bilbao y León outlined the key developments in the nuclear energy sector over the past year and also the developing plans for new nuclear in existing, and newcomer, countries and also highlighted a series of examples of collaboration taking place across the industry.

They were also joined for the morning session, on Nuclear for Global Growth and Prosperity, by International Atomic Energy Agency (IAEA) Director General Rafael Mariano Grossi, who gave his backing to the Net Zero Nuclear campaign and said it was "clear we're at a key moment for nuclear" with lifetime extensions of existing plants as well as the development of small modular reactors and increasing interest in nuclear from newcomer countries.

The IAEA's Grossi makes a point (Image: World Nuclear Association)

He said that the IAEA was helping those countries along that road, and was also pursuing initiatives to help harmonisation, which would have broader benefits for faster rollout of future nuclear capacity. He said that "just as technology and industry adapts", the regulatory process should adapt as well.

Grossi also stressed that, above all, the priority remained the safety and security of the nuclear power plants in Ukraine, saying that any attack on them, or anything going wrong inside them, would mean that the "visions, plans, ideas and aspirations" being discussed "will be much more difficult", in terms of persuading people and politicians to back nuclear energy.

US Congressman Chuck Fleischmann said that it was critically important for future nuclear "that we who support new nuclear get the information out to our respective constituencies that new nuclear is safe". He also highlighted the collaboration taking place between the USA and Canada which has led to them learning and gaining from working together.

​Joo Ho Whang, president and CEO of Korea Hydro & Nuclear Power, outlined the current and planned positive prospects for new nuclear in South Korea.

Whang, left, Bilbao y León and Fleischmann (Image: World Nuclear Association)

He also stressed the importance of supply chains in the nuclear sector, giving the example that the number of nuclear grade cement producers had fallen from three to one under the previous South Korean government, which had a nuclear phase-out policy. He said that with new projects planned, it was important, nationally and internationally, to have a strong supply chain.

Researched and written by World Nuclear News