• Sam Altman-Backed Nuclear Startup Signs Major Data Center Contract
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• By ZeroHedge - May 27, 2024
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• Oklo has signed a non-binding letter of intent with Wyoming Hyperscale for a 10-year power purchase agreement.
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• Oklo is committed to providing clean, reliable, and affordable energy solutions to meet the needs of data centers.
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• The partnership with Wyoming Hyperscale underscores Oklo's commitment to advancing sustainable energy practices in the data center industry.

Sam Altman backed nuclear startup Oklo inked a deal to supply 100MW of nuclear power to data center company Wyoming Hyperscale, it was announced last week.

The news sent shares of NYSE-listed Oklo up more than 30% in trading on Friday. 

The companies signed a "non-binding letter of intent outlining plans for the PPA, which will last for 10 years," according to industry publication Data Center Dynamics. This comes on top of the revelation that, last month, Oklo signed to supply up to 500MW of power to another data center, Equinix. 

"Wyoming Hyperscale is building a data center campus on 58 acres of land," the report says. 

Jacob DeWitte, co-founder and CEO of Oklo, commented: “As the widespread adoption of artificial intelligence increases, Oklo remains dedicated to providing clean, reliable, and affordable energy solutions to meet the needs of our data center partners.”

“Our partnership with Wyoming Hyperscale underscores our commitment to advancing sustainable energy practices and supporting high-efficiency operations within the data center industry.”

Trenton Thornock, founder of Wyoming Hyperscale, added: "Our goal is to create data centers with minimal environmental impact. This collaboration with Oklo perfectly aligns with our vision for sustainable, efficient operations. By merging sustainability with advanced technology, we are setting a new standard for the future of accelerated computing.”

As we wrote earlier this month, Oklo won shareholder approval on May 8 for its NYSE listing. The company's mission is "to provide clean, reliable, affordable energy on a global scale through the design and deployment of next-generation fast reactor technology".

Backed by investors like Jeff Bezos, Bill Gates, and Peter Thiel, the who's who of the AI revolution, nuclear fusion startups are gaining traction. Sam Altman, who invested in Oklo in 2015, believes the company is "best positioned to commercialize advanced fission energy solutions," per a July press release.

Last month, we published a lengthy report discussing why even as the AI trade may be fizzling, the "electrification" trade, aka the "Power-Up America" trade - so urgently needed to run all those electricity-gobbling data centers needed to run AI - is just getting started and has in fact outperformed substantially both the broader AI and Data-Center Equipment baskets over the past two months...

... and Altman - who teamed up with another power company, Exowatt, earlier this year to focus on clean energy for AI power -agrees: "Fundamentally today in the world, the two limiting commodities you see everywhere are intelligence, which we're trying to work on with AI, and energy," Altman told CNBC in 2021. 

For those who missed it, in "The Next AI Trade," we outlined various investment opportunities for powering up America, most of which have dramatically outperformed the market. In the next iteration, we will likely add Oklo to the list of beneficiaries certainly ahead of the inevitable cascade of Buy ratings sure flood the name over the next month.

By Zerohedge.com 

Q&A: The prospects for floating nuclear power plants

24 May 2024

Deputy General Director for Shipbuilding, Floating Energy and Marine Engineering at Rosatom's Atomenergomash, Vladimir Aptekarev, on the potential for floating power units.

How a 100 MW FPU might look (Image: Rosatom)

There seem to be a lot of proposals for, and interest in, floating nuclear power plants around the world. To be clear, these are not the same as nuclear-powered vessels, are they?

I would suggest using the term floating power unit (FPU) instead of floating nuclear power plant, to be more precise. While FPUs and nuclear-powered vessels both utilise nuclear reactors, they differ in purpose. Nuclear-powered vessels are designed for various maritime transportation tasks, whereas FPUs are non-self-propelled vessels specifically engineered to generate and supply electricity to customers. For FPU operation, coastal infrastructure is required to ensure mooring and electricity transmission onshore.

Do the reactors have to be specifically designed for a floating power unit, or are they essentially slightly adapted versions of land-based SMRs?

Based on the RITM-200 reactors, which are currently operational in new Project 22220 nuclear icebreakers, FPUs with power capacities of 100 MW and 106 MW have been designed. Developed by OKBM Afrikantov, the RITM series represents a unique advancement in reactor technology. The RITM-200 technology, developed by Russia, is a flagship small modular reactor (SMR) technology based on the evolution of Soviet pressurised water reactor technology initially tailored for icebreaker vessels. Through innovative technological advancements, their efficiency and reliability have been significantly improved. RITM reactors are versatile and can be utilised across three main domains: marine transportation, including nuclear icebreakers and nuclear-propelled cargo vessels; small-scale land-based nuclear power plants; and floating nuclear power units.

What do you think will be the key uses for floating nuclear power units?

Floating power units are specifically engineered for deployment in remote or inaccessible regions where establishing conventional power infrastructure proves impractical or costly. By supplying electricity to onshore communities or industrial facilities, FPUs offer advantages such as mobility, scalability, and reduced environmental impact compared with conventional fossil fuel-based power plants. They are increasingly recognised as a promising solution for advancing global nuclear energy. This recognition stems partly from the growing demand for sustainable power sources in remote areas and regions lacking extensive grid infrastructure. FPUs boast several advantages over alternative power generation sources. Not only are they environmentally-friendly and relatively easy to install at deployment sites, but they also address tariff concerns by ensuring stable electricity prices over extended periods. Additionally, they can facilitate heat supply to various facilities. An illustrative example of FPU deployment is the forthcoming installation of four RITM-200 floating power units at the Baimskiy Mining and Processing Plant in Chukotka. Rosatom plans to construct more than a dozen FPUs, offering ‘turnkey’ power supply solutions to coastal regions in countries across Africa, South Asia, and Latin America. These solutions, based on a build-own-operate scheme, provide stable electricity without requiring countries to invest in their own nuclear infrastructure or assume ownership of the units.

What are the safety considerations and safety benefits, compared with land-based plants, and how do you think the regulatory process will work around the world?

The safety concept of the RITM-200 reactor units is grounded in the principle of deep-layered protection, coupled with inherent safety features employing passive and active systems. These reactor units optimally integrate passive and active safety systems to ensure normal operation and stability, drawing from the operational experience of nuclear icebreakers equipped with RITM-200 reactor installations. In contrast to land-based nuclear power plants, the operation of FPUs adheres to the "green field" principle, meaning there are no activities involving nuclear fuel handling at the operational site. All fuel-related operations, including the handling of both fresh and used fuel, occur exclusively at specialised facilities within the Russian Federation. FPUs are non-self-propelled vessels housing nuclear power installations. Their design and construction comply with Russian regulations and internationally recognised maritime norms, notably the SOLAS Convention. Commissioning occurs within the territory of the Russian Federation, with licensing overseen by Rostekhnadzor and the Russian Maritime Register of Shipping, drawing from the experiences of projects like the Akademik Lomonosov. A specific regulatory and legal framework for FPUs exists solely within the Russian Federation. The host country’s government decides on FPU placement based on authorisation documents from its nuclear regulatory authority or another relevant body. There are no prohibitions on FPU operation, even abroad. However, effective FPU project implementation necessitates the adaptation of Russian project experience and collaboration among regulators across different countries.

What about the costs - will floating nuclear power plants be cheaper than land-based ones?

At the present moment, land-based nuclear power plants and floating power units represent two separate businesses. We do not sell floating power units; instead, we sell electricity generated by them. As a result of technical and economic feasibility studies, scientific research, and extensive market research in foreign countries, we have managed to adopt an extremely economically efficient and, at the same time, highly convenient principle of operation for our clients. This involves supplying electricity based on Power Purchase Agreements (PPAs) with highly predictable costs, extending up to 60 years, depending on the preferences and capabilities of the customer, without being tied to the cost or dependency on hydrocarbons. However, electricity supply is not interrupted for the entire duration of the contract, up to 60 years, which is the maximum projected operational lifespan of the floating power unit. This is achieved through the use of the RITM-200M, optimisation of the fuel cycle, with a refueling interval of 7-10 years, and the presence of a spare floating power unit in the operational "energy fleet" during the refueling and planned maintenance period when the installed power unit is sent to a specialised base in the Russian Federation. Seven power units operating worldwide, regardless of the country, can be substituted by just one floating power unit. Such a model is not only economically efficient but also eliminates the need for handling nuclear fuel in the host country of the floating power unit, following the "green field" principle. Additionally, it obviates the need for the foreign partner to create expensive infrastructure.

What sort of global demand do you think there will be in the coming years?

The demand and interest in floating power units have been increasing due to the global energy deficit. Floating power units undoubtedly possess significant commercial potential not only in Russia but also internationally, with countries in the Middle East, Southeast Asia, Africa, and Latin America already expressing interest in them.  The potential international market for electricity abroad for the FPU project is currently estimated at more than 2.8 GW.

What plans does Russia have for floating nuclear power plants – what are your designs and what is the state of current projects?

The floating nuclear power plant Akademik Lomonosov has been commissioned marking a significant milestone. A project for supplying power to the Baimskiy Mining and Processing Plant is being implemented. Under a contract signed in 2021, the Machine Engineering Division of the State Atomic Energy Corporation Rosatom will supply four FPUs, each with a capacity of up to 106 MW of electric power, for the project. Of these, three FPUs will be primary units, while the fourth will serve as a backup. The project for supplying power to the Baimskiy Mining and Processing Plant will be the first "serial" reference for floating power units and the world’s first experience in electrification using a floating power unit for mineral extraction projects. In 2023, technical design work commenced for 100 MW FPUs based on the RITM-200M reactor units, developed for export with enhanced technical and economic performance suited for relatively warm climates. Currently, negotiations are in progress with several countries across different regions of the world, with some negotiations already resulting in signed agreements.

Vulcan rejects Mexico’s ‘illegal expropriation’ of its investments

Reuters | May 27, 2024 | 

Vulcan Materials’ Columbus quarry. Credit: YouTube

U.S. construction company Vulcan Materials (NYSE: VMC), opens new tab on Monday rejected what it considers the “illegal expropriation” of its investments in Mexico and said it remains open to a negotiated solution with the Mexican government.


The company has been engaged in a years-long conflict with Mexico’s government after officials ordered a halt to limestone quarrying at Vulcan’s mining unit in the coastal state of Quintana Roo in 2022, alleging environmental damages by the company, which denies the accusations.


Mexican President Andres Manuel Lopez Obrador last week said that the site had not been expropriated, only closed, and that it would remain closed at least until he leaves office in October.

In a statement on Monday, Vulcan described the suspension of their operations as “authoritarian” and said it could not produce or sell materials “due to the arbitrary actions of the government of Mexico in order to force us to give up our important investments in the region.”

Last year, Lopez Obrador laid out plans to offer 6.5 billion Mexican pesos ($391 million) to buy the land where Vulcan Materials operates and solve the dispute, but said the company did not want to sell the land.

“The truth is that at no time have we received a ‘generous offer’ to buy our property,” Vulcan said on Monday.

“We were given an informal appraisal, without signatures and without details, that substantially undervalues our assets, including the limestone reserves of which we own under Mexican law, as well as the only deep draft port in the region.”

($1 = 16.6440 Mexican pesos)

(Reporting by Kylie Madry and Raul Cortes Fernandez; Writing by Brendan O’Boyle; Editing by Sarah Morland)

More than 2,000 buried alive in Papua New Guinea landslide, local authorities say

Reuters Published May 27, 2024 

Locals gather at the site of a landslide at Mulitaka village in the region of Maip Mulitaka, in Papua New Guinea’s Enga Province on May 26, 2024

. — AFP


More than 2,000 people were buried alive by a massive landslide in Papua New Guinea last week, the national disaster centre said on Monday, as treacherous terrain and the difficulty of getting aid to the site raises the risk few survivors will be found.

The numbers of those buried around Yambali village in Enga province in the country’s north are based on estimates from local authorities which have been rising steadily since Friday’s landslide.

A UN agency put the estimated death toll at more than 670 people on Sunday.

The National Disaster Centre raised the toll again to 2,000 in a letter to the UN on Sunday that was released publicly on Monday. The landslide also caused major destruction to buildings and food gardens, it said.

“The situation remains unstable as the landslip continues to shift slowly, posing ongoing danger to both the rescue teams and survivors alike,” according to the letter.

About 4,000 people were living near the affected area, CARE International PNG country director Justine McMahon told ABC television on Monday.

But it is difficult to get an accurate estimate of the local population as PNG’s last credible census was in 2000 and many people live in remote mountainous villages. The country recently announced a census would be conducted in 2024.

The unstable terrain, remote location and nearby tribal warfare are hampering relief efforts in Papua New Guinea.

Emergency crews, led by Papua New Guinea’s (PNG) defence personnel, were on the ground, but the first excavator only reached the site late on Sunday, according to a UN official.

Social media footage posted by villagers and local media teams showed people scaling rocks, digging with shovels, sticks and their bare hands to find survivors. Women could be heard weeping in the background.

Six bodies have been retrieved so far. The UN said the number of possible deaths could change as rescue efforts were expected to continue for days. PNG media on Monday reported that residents had rescued a couple trapped under rubble after hearing their cries for help.

Johnson and Jacklyn Yandam told local NBC News that they were very grateful and described their rescue as a miracle.

“We thank God for saving our lives at that moment. We were certain that we were going to die but the big rocks didn’t crush us,” Jacklyn said. “It’s really hard to explain as we got trapped for nearly eight hours, then got rescued.

We believe we were saved for a purpose.“ About 1,250 people have been displaced by the landslide, which occurred in PNG’s Enga province early Friday. More than 150 houses were buried and about 250 houses abandoned.

“The houses are buried under around eight metres of dirt. So there is quite a lot of debris to get through,” said CARE’s McMahon

Relief workers gather around provisions to be distributed, in the aftermath of a landslide in Enga Province, Papua New Guinea on May 26, 2024. — Reuters

Dangerous conditions

Water continued to flow under the debris, the UN migration agency said, making it extremely dangerous for residents and the rescue team to clear debris.

Serhan Aktoprak, the chief of the UN migration agency’s mission in PNG, told ABC television that emergency crews would continue to look for survivors until the residents asked them to stop.

Aktoprak said that the rescue team had eight vehicles but that he hoped to receive additional resources soon.

Tribal violence in the region has raised security concerns for road travel, with the military escorting convoys of rescue teams. Eight people were killed, and five shops and 30 houses burnt down on Saturday, the UN agency said. PNG gave arrest powers to its military in February amid an eruption of tribal violence that saw at least 26 men killed in an ambush.

The landslide hit a section of highway near the Porgera gold mine, operated by Barrick Gold through Barrick Niugini Ltd, its joint venture with China’s Zijin Mining. Barrick has said the mine has enough fuel on site to operate for 40 days and other critical supplies for longer.

Barrick’s Porgera mine operating without restriction after landslide

Reuters | May 27, 2024 | 

The Porgera mine in Papua New Guinea. (Image courtesy of Barrick Gold.)

The Porgera mine in Papua New Guinea is running without restriction and has enough fuel on site for 40 days, operator Barrick Gold Corp said on Monday, after a massive landslide struck in the province the mine is located.


The landslide in Enga province buried more than 2,000 people, the government said earlier on Monday, as treacherous terrain impeded aid and lowered hopes of finding survivors.

The Porgera mine is an underground gold mine jointly run by Barrick Gold, China’s Zijin Mining Group and stake holders from Papua New Guinea, according to Barrick website. The mine was re-started earlier this year after being in dispute for four years.

Barrick in its statement said the Porgera gold mine is providing support to the survivors of the mountainside collapse, which happened 30 kilometres (18.64 miles) from its gold mine.

Shares of Barrick Gold were trading up by 1% on the Toronto Stock Exchange on Monday morning.

(By Divya Rajagopal and Kanishka Singh; Editing by Diane Craft)enough fuel on site for 40 days, operator Barrick Gold Corp said on Monday, after a massive landslide struck in the province the mine is located.


The landslide in Enga province buried more than 2,000 people, the government said earlier on Monday, as treacherous terrain impeded aid and lowered hopes of finding survivors.


The Porgera mine is an underground gold mine jointly run by Barrick Gold, China’s Zijin Mining Group and stake holders from Papua New Guinea, according to Barrick website. The mine was re-started earlier this year after being in dispute for four years.

Barrick in its statement said the Porgera gold mine is providing support to the survivors of the mountainside collapse, which happened 30 kilometres (18.64 miles) from its gold mine.

Shares of Barrick Gold were trading up by 1% on the Toronto Stock Exchange on Monday morning.

(By Divya Rajagopal and Kanishka Singh; Editing by Diane Craft)

BHP, Rio Tinto to fast-track electric haul truck trials

Cecilia Jamasmie | May 27, 2024 | 

CAT battery-electric haul truck. (Image courtesy of Caterpillar.)

BHP (ASX: BHP) and Rio Tinto (ASX: RIO), the world’s two largest miners, have partnered to accelerate the first trial of Komatsu (TYO: 6301) and Caterpillar (NYSE: CAT) large, battery electric haul truck technology.


The tests, to be run at the companies’ massive iron ore mines in the Pilbara region of Western Australia, will focus on performance and productivity, they said. The plan is part of BHP and Rio Tinto’s larger efforts to lower their operational emissions and reach net zero by 2050.

Caterpillar and Komatsu will each provide two trucks to both mining giants for these trials. BHP will trial the Caterpillar trucks, while Rio Tinto will test the Komatsu trucks.

The CAT 793 trucks’ trails will be begin in the second half of 2024. The two Komatsu 930 haul trucks will be tested from 2026.

“There is no clear path to net zero without zero-emissions haulage, so it’s important that we work together to get there as quickly and efficiently as we can,” Rio Tinto Iron Ore boss, Simon Trott, said in a statement.

“Operational decarbonization relies on breakthroughs in technology and partnerships like this will help drive our industry forward,” BHP’s Australia president, Geraldine Slattery, said separately.

The companies noted they have already achieved reductions in Scope 1 and 2 operational greenhouse gas emissions through switching some of their power supply to renewable sources. “We are looking to build on that progress through development of battery-electric technology to reduce diesel usage across our operations,” Slattery said.

Both miners believe that testing two types of battery-electric haul trucks in Pilbara conditions will provide better data and accelerate learning.

This is not the miners’ first initiative with Caterpillar and Komatsu. In 2021, the four companies joined forces to develop and validate prototype battery-electric haul trucks.

Before that, BHP, Rio Tinto and Vale (NYSE: VALE) launched a program to encourage the development of new concepts for battery-powered large-scale haul trucks.

Rio and BHP have also partnered up with BlueScope Steel, Australia’s largest steelmaker, to try producing “green iron” by 2027.

Diesel consumption in Rio Tinto’s mining equipment and rail fleet was responsible for 12% of its Scope 1 and 2 (those incurred through mining operations and power consumption, respectively) emissions in 2023. Diesel combustion accounted for about 40% of BHP’s Scope 1 and 2 emissions during the 2020 fiscal year.

CITIC Metal to sell up to 2% stake in Ivanhoe Mines

Staff Writer | 

May 27, 2024 | 

Concentrator plant, at Kakula North. Credit: Ivanhoe Mines

CITIC Metal Co. is planning to sell a small portion of its holdings in Ivanhoe Mines (TSX: IVN) through public trades or privately through block trades, or the combination of both.


The Chinese commodity trader is Ivanhoe’s largest shareholder. It owns about 314.7 million of Ivanhoe’s Class A shares, representing 24.78% of those outstanding. The next largest shareholder is Zijin Mining Group, also based in China, with an approximate 13% shareholding.

In a press release via the Shanghai Stock Exchange, CITIC said it has received board approval to sell at most 25,390,428 shares, or 2% of Ivanhoe’s outstanding share capital. Shareholder approval for the divestment will be sought in a meeting scheduled for June 11.

Assuming CITIC gains the approval and sells the maximum amount, it will then hold approximately 289.3 million shares, for a 22.78% shareholding in Ivanhoe.

The announcement by CITIC comes at a time when the Canadian government is placing higher surveillance on foreign money flowing into its critical minerals sector, with extra scrutiny on those coming from China.

In 2022, it forced three Chinese investors to sell their stakes in Canadian mining companies. The proposed investment by Zijin in Solaris Resources (TSX: SLS; NYSE: SLSR) was also scrapped recently due to the government’s security review.

Vancouver-headquartered Ivanhoe currently has joint ownership with Zijin in the massive Kamoa-Kakula copper complex in the Democratic Republic of Congo, which began commercial production in 2021. In its final phase, Kamoa-Kakula is expected to become a top 3 copper producer globally, with peak production of 700,000 tonnes annually.

 

Hurricane Forecast Points to a Dangerous 2024 Atlantic Season

This year's NOAA preseason forecast is the highest ever for predicted activity, including a range of up to 25 named storms. Dark blue represents lower bound, light blue represents upper bound of estimate (The Conversation / CC BY ND)

PUBLISHED MAY 26, 2024 9:12 PM BY THE CONVERSATION

 

[By Jhordanne Jones]

The 2024 Atlantic hurricane season starts on June 1, and forecasters are predicting an exceptionally active season.

If the National Hurricane Center’s early forecast, released May 23, is right, the North Atlantic could see 17 to 25 named storms, eight to 13 hurricanes, and four to seven major hurricanes by the end of November. That’s the highest number of named storms in any NOAA preseason forecast.

Other forecasts for the season have been just as intense. Colorado State University’s early outlook, released in April, predicted an average of 23 named storms, 11 hurricanes and five major hurricanes. The European Centre for Medium-Range Weather Forecasts anticipates 21 named storms.

Colorado State also forecasts a whopping 210 accumulated cyclone energy units for 2024, and NOAA forecasts the second-highest ACE on record. Accumulated cyclone energy is a score for how active a given season is by combining intensity and duration of all storms occurring within a given season. Anything over 103 is considered above normal.

These outlooks place the 2024 season in league with 2020, when so many tropical cyclones formed in the Atlantic that they exhausted the usual list of storm names: A record 30 named storms, 13 hurricanes and six major hurricanes formed that year, combining for 245 accumulated cyclone energy units.

So, what makes for a highly active Atlantic hurricane season?

I am a climate scientist who has worked on seasonal hurricane outlooks and examined how climate change affects our ability to predict hurricanes. Forecasters and climatologists look for two main clues when assessing the risks from upcoming Atlantic hurricane seasons: a warm tropical Atlantic Ocean and a cool tropical eastern Pacific Ocean.

Warm Atlantic water can fuel hurricanes

During the summer, the Atlantic Ocean warms up, resulting in generally favorable conditions for hurricanes to form.

Warm ocean surface water – about 79 degrees Fahrenheit (26 degrees Celsius) and above – provides increasing heat energy, or latent heat, that is released through evaporation. That latent heat triggers an upward motion, helping form clusters of storm clouds and the rotating circulation that can bring these storm together to form rainbands around a vortex.

Ocean heat in 2024 is a big reason why forecasters are warning of a busy hurricane season.

The North Atlantic sea surface temperature has been shattering heat records for most of the past year, so temperatures are starting out high already and are expected to remain high during the summer. Globally, ocean temperatures have been rising as the planet warms.

A long-term temperature pattern known as the Atlantic Multidecadal Oscillation, or AMO, also comes into play. The summer Atlantic ocean surface can be warmer or cooler than usual for several seasons in a row, sometimes lasting decades.

Climate patterns associated with the warm phase of the Atlantic Multidecadal Oscillation, or AMO. NOAA Climate.gov

Warm phases of the AMO mean more energy for hurricanes, while cold phases help suppress hurricane activity by increasing trade wind strength and vertical wind shear. The Atlantic Ocean has been in a warm phase AMO since 1995, which has coincided with an era of highly active Atlantic hurricane seasons.

How the Pacific can interfere with Atlantic storms

It might seem odd to look to the Pacific for clues about Atlantic hurricanes, but Pacific Ocean temperatures also play an important role in the winds that can affect hurricanes.

Like the Atlantic, water temperatures in the eastern Pacific oscillate between warm and cold phases, but on shorter time spans. Scientists call this the El Niño Southern Oscillation, or ENSO. The warm phases are known as El Niño; cold phases are called La Niña.

La Niña promotes the upward motion of air over the Atlantic, which fuels deeper rain clouds and more intense rainfall.

La Niña’s effects also weaken the trade winds, reducing vertical wind shear. Vertical wind shear, a difference in wind strength and direction between the upper atmosphere and the atmosphere near Earth’s surface, makes it harder for hurricanes to form and can pull apart a storm’s vortex.

In contrast, El Niño promotes stronger trade winds, increasing wind shear. It also centers the upward motion and rainfall in the Pacific, triggering a downward motion that promotes fair weather over the Atlantic.

El Niño was strong during the winter of 2023-24, but it was expected to dissipate by June, meaning less wind shear to keep hurricanes in check. La Niña conditions are likely by late summer.

Where ENSO is in its transition may determine how early in the season tropical storms form – and how late. A quick transition to La Niña may indicate an early start to the season as well as a longer season, as La Niña – along with a warm Atlantic – maintains a hurricane-friendly environment earlier and longer within the year.

This ocean tag team controls hurricane activity

The Atlantic and eastern Pacific ocean temperatures together control Atlantic hurricane activity. This is like bouncing in a bounce house or on a trampoline. You get a good bounce when you’re jumping on your own but reach far greater heights when you have one or two more people jumping with you.

When the eastern Pacific is in its cold phase (La Niña) and the Atlantic waters are warm, Atlantic hurricane activity tends to be more frequent, with a higher likelihood of more intense and longer-lived storms.

The record 2020 hurricane season had the influence of both La Niña and high Atlantic ocean temperatures, and that’s what forecasters expect to see in 2024.

It is also important to remember that storms can also intensify under moderately unfavorable environments as long as there is a warm ocean to fuel them. For example, the storm that eventually became Hurricane Dorian in 2019 was surrounded by dry air as it headed into the Caribbean, but it rapidly intensified into an extremely destructive Category 5 hurricane over the Bahamas.

Jhordanne Jones is a NOAA Climate & Global Change postdoc fellow hosted by Purdue University. Her research examines the degree of predictability achieved from large-scale environmental phenomena for seasonal tropical cyclone activity. 

This article has been updated with NOAA officials describing the forecast as the highest number of storms it has ever forecast. 

This article appears courtesy of The Conversation and may be found in its original form here. 

 

Eight Ports in the British Isles Get Electric Ship Charging Stations

Port of Heysham is one of eight seaports that will receive the upgrades (Peel Ports file image)

PUBLISHED MAY 26, 2024 10:20 PM BY THE MARITIME EXECUTIVE

 

 

The UK’s second largest port operator, Peel Ports Group, has announced plans to establish the first green shipping corridor between the UK and Ireland. This is part of a artnership between the port operator and the marine tech company NatPower Marine. The collaboration will see NatPower Marine develop the UK’s first commercial electric charging network to support electric propulsion and cold ironing (shore power).

The charging infrastructure will require an estimated investment of $127 million and will be delivered across all eight UK and Ireland ports operated by Peel Ports Group. The masterplan of the infrastructure also includes electric car, van and truck chargers for commercial electric vehicles passing through the ports.

This investment in the UK is part of a $3.8 billion global charging network, planed by NatPower Marine for 120 port locations worldwide by 2030.

“NatPower Marine is investing to deploy the largest global network of charging ports to help resolve the ‘chicken and egg conundrum’ facing this industry: shipping lines cannot electrify vessels if port charging infrastructure is not available, and ports are unable to raise capital for charging infrastructure without certainty of demand from shipping lines,” said Stefano Sommadossi, CEO NatPower Marine.

With over 3,000 vessels crossing the Irish Sea every year, emitting 230,000 tons of CO2 and 20,000 tons of nitrous oxide, this partnership may drastically reduce emissions.

The first Irish Sea routes identified in the project proposals include Belfast-Heysham and Dublin-Birkenhead. The small Port of Heysham in Lancashire is on track to become the UK’s first net zero port, according to Peel Ports, and the charging infrastructure will support this goal. Currently, the port is leading in reduction of carbon emissions of its landside plant, equipment and vehicles by up to 90 percent. The port claims that all its vehicles, plant equipment, forklift trucks and ancillary equipment are now operating on either electricity or biofuels.

“The proposals presented as part of this partnership are potentially game-changing, and fully support our ambitions to become a net-zero port operator by 2040,” said Claudio Veritiero, CEO of Peel Ports Group.

In the past two years, the UK government has significantly invested in green shipping corridors, an initiative the UK led as part of the Clydebank Declaration during COP 26 in November 2021. Last month, the UK government launched the fifth round of Clean Maritime Demonstration Competition (CMDC 5), with funding of over $900,000 available for start-ups looking to establish green shipping routes to and from the UK.

Putting Methanol Through its "Paces," With a Focus on Safety

Illustration courtesy ABS

PUBLISHED MAY 27, 2024 3:20 AM BY QUAIM CHOUDHURY

 

 

With more than 90% of global GDP now covered by a net zero target, the growing consensus to tackle climate change is matched only by a deepening understanding of the immensity of the challenge. For the shipping industry, there’s a real urgency to reverse the 20% emissions growth of the last decade and begin the essential but expensive task of decarbonizing the global fleet, 98.8% of which, according to a 2023 report from UNCTAD, still runs on fossil fuels.

The first challenge is to overcome the huge inertia of an aging fleet, with an average ship age of 22.2 years. With over half the global fleet older than 15 years, many ships are either too old to retrofit or too young to scrap. Over time, the replacement cycle will change the fleet’s emissions profile, as shipowners place orders for newbuilds that can run on cleaner fuels such as LNG, ammonia and methanol.

The clock is now ticking to accelerate that pace of change, particularly as the IMO’s enhanced GHG strategy for 2030 includes stricter targets to cut the carbon intensity of international shipping by 40%. Shipowners must act soon to transition their fleets because without clear investment signals the availability of candidate fuels will lag demand, creating further hesitancy and potentially derailing the transition.

Any new fuel, however, must be put through its PACES to meet the industry’s expectations on Performance, Availability, Cost, Emissions and Safety. Here, methanol has a head start because in terms of performance it’s already a proven fuel, with methanol storage available in over 100 ports around the world. Its key advantage is that it’s an easy substitute for diesel because it is a liquid fuel under ambient conditions making it easy to transport, store and bunker using familiar procedures. The cost of converting diesel engines to methanol dual-fuel vessels and installing the land-based infrastructure is significantly lower than other alternative fuels that require pressurization or cryogenics.

Fossil-based methanol (known as grey or brown methanol, depending on whether derived from gas or coal) burns cleaner and delivers a tank-to-wake CO2 reduction of about 7% compared to diesel but performs worse on a well-to-wake basis. However, blue or green methanol (made from renewable biomass or via an electrolysis process), while expensive and still only available in limited quantities, are chemically identical to conventional methanol, which means there are no future compatibility issues or further engine investment required by shipping companies, allowing a seamless, gradual transition to meet future well-to-wake emissions rules.

A safe transition

As a low flashpoint fuel, methanol does impose additional safety considerations in some instances e.g., during bunkering operation, which is the primary reason  ABS decided to publish the first Technical Advisory on methanol bunkering providing guidance on the technical and operational challenges that must be overcome.

The main methods of methanol bunkering are truck tanker-to-ship, barge/ ship-to-ship and land storage tank-to-ship. For smaller vessels that may run on methanol fuel cells, it’s possible to provide the fuel in portable tanks.

Because of the low flashpoint and toxic properties, hoses and connections must be approved for methanol use and inspected periodically in compliance with the latest version of MSC.1-Circ. 1621. The fittings and connections should be cleaned, tight fitted, quick release and a self-sealing type. Seals are to be in good condition, pressure-tested and hoses are to be recertified according to the above IMO circular. Any mobile facilities such as tank trucks, rail cars and portable tanks should conform to meet ISO and other standards for handling methanol fuel.

For port operations, it’s important to verify compatibility, transfer rate, vapor return arrangements, communications, Emergency Shut Down (ESD), and emergency procedures. The responsibilities and procedures are to be agreed upon and confirmed in writing prior to starting bunkering – a checklist is a good way to confirm compatibility and capture this information and ABS Technical Advisory includes sample checklists to help with this work.

It’s important the receiving and supply barge if applicable are safely moored and adequately fendered, with all due attention to tidal and weather conditions not to mention surges from passing ships. Hoses should have sufficient slack to allow for any expected relative motion and the manifold arrangements, spill containment systems, and hose connections for the supply source and the receiving ship should be confirmed including emergency release (hose breakaway) arrangements.

Spark aware

Because of the low flash point, it’s important to be particularly careful about potential sources of ignition. Road truck/ISO tanks and ship should be earthed with a bonding wire to protect from static electricity. Materials should be non-sparking, the risks of electrical arcing addressed, and careful consideration needs to be given to make sure both the supply source and receiving ship don’t introduce any source of ignition into any hazardous area.

Vapor return needs to be carefully managed to ensure systems are compatible and have sufficient space, given that the estimated volume of vapor is 1: 1.4 times more than the cargo space volume it replaces. And both the supply source and receiving ship need to have inerting and purging capabilities. It’s obviously vital to have firefighting and emergency procedures in place.

Safety is rooted in good communication. There needs to be compatible communications between the supply source and the ship so both parties can monitor the bunkering operation, and, if necessary, initiate an emergency shutdown.

A ship-to-shore link is to be provided to enable automatic and manual ESD of bunkering operations. The ESD should be capable of activation from both the bunker receiving ship and the bunker supplier, and the signal should simultaneously activate the ESD on both sides of the transfer operation with no release of liquid or vapor during this procedure. An ESD might be activated for a wide range of reasons, including an overflow in receiving tank, high tank pressure, a leak, vapor or fire detection, loss of ventilation in double wall piping, excessive ship movement, abnormal pressures in the transfer system or power failure.

At the manifold connection a manually operated stop valve and a remotely operated shutdown valve are to be provided.  This remote valve is to be of the fail-close type, which closes on loss of actuating power, and be capable of manual closure and to have indication of the valve position. There are multiple industry standards and regulations that apply to emergency shutdown and related safety systems, and these are listed in our Advisory, along with additional ABS recommendations. These include that systems are designed to accommodate surge pressures and that manual operation of the ESD system is possible by a single control on the bridge, safe control station and at least two strategic positions around the bunker manifold area.

The human factor

Crew training and certification are essential for safe methanol bunkering, with the minimum requirements outlined in the IGF Code and the Interim Guidelines for the Safety of Ships Using Methyl/Ethyl Alcohol as Fuel or the Seafarers’ Training, Certification and Watchkeeping (STCW) Code for IBC Code Vessels. Formal training should include basic handling, including scenarios for leakage, spillage and fire. Personnel should understand methanol’s properties, its operational risks and hazards, fire prevention and firefighting protocols, and importantly, clearly understand their roles and responsibilities, particularly in the event of an emergency. Only those with the proper training should be allowed into the designated safety zone for the bunkering operation, which is an ignition-free area with clearly defined boundaries, typically set by a risk assessment and determined by regulations.

For shipowners considering the fuel mix of their fleet, methanol passes the PACES test. It’s a proven fuel, with existing bunkering infrastructure in some ports and more being built. Making sure this bridging fuel is handled safely, particularly during bunkering, is going to be key to the ongoing displacement of fossil fuels in the global fleet. This Technical Advisory should help with this effort as the maritime industry steams towards IMO2030 and beyond.

Quaim Choudhury is Senior Managing Principal Engineer at ABS.

MOL to Expand Wind-Assisted Propulsion After Validation on First Vessel

Shofu Maru was the first vessel fitted with MOL's rigid sail and validation results were released (MOL)

PUBLISHED MAY 27, 2024 2:37 PM BY THE MARITIME EXECUTIVE

 

 

Mitsui O.S.K. Lines (MOL) is moving forward expanding its use of wind-assisted propulsion as part of its overall decarbonization efforts. They have test results after approximately 18 months of operation of the first vessel fitting with their rigid sail and now report they are also considering other technologies. In addition to new constructions, they are also pursuing their first retrofit of the Wind Challenger rigid sail to a bulker.

The move to expand the use of wild-assisted propulsion comes as the technology continues to draw strong interest from shipowners and operators. The International Windship Association recently said that there are a total of 37 vessels with wind-propulsion installed and in service. This represents a doubling over the past 12 months with a total of 22 installations and wind-ready ships delivered. With the emergence of the EU Fit for 55 effort and the IMO set to adopt its GHG strategies mapped out in 2023, the association expects wind propulsion installations will continue to grow.

MOL says it has accumulated extensive operational technology to pursue wind propulsion technology. The group plans to launch 25 vessels equipped with the Wind Challenger by 2030, increasing to 80 by 2035. MOL is scheduled to deploy its second vessel, a 64,000 dwt bulker, with the Wind Challenger in June and today reported a total of six additional newbuilding bulk carriers, 42,000 dwt and 58,000 dwt, and one multipurpose vessel.

The Wind Challenger is a rigid sail made of fiberglass with a width of about 50 feet and a maximum height of about 175 feet. Its sections are nested so that it can retract to a fraction of its operating height to reduce air draft. The mounting point is forward, on the bow, and well clear of the cargo hatches. MOL working with Oshima Shipbuilding has been perfecting the design and preparing it for commercialization since 2018.

 

MOL will retrofit the sail for the first time in 2025 to an in-service bulker (MOL)

 

MOL reports three bulkers have been ordered from Oshima Shipbuilding Co. with preparations underway for three additional contracts. The first three bulkers, due in the second half of 2026 and the first half of 2027, will each be fitted with the Wind Challenger rigid sail and it is considering also adding up to three wind rotors per vessel manufactured by Anemoi Marine Technologies on some of these vessels. MOL expects the combined use of both technologies to reduce fuel and GHG emissions by an average of about 15-28 percent per year. The other three bulkers, so far, are planned to have just the Wind Challenger. MOL previously also agreed to install two Norse rotors on a 200,000 dwt bulker operated for Vale with that installation expected to be completed this year.

MOL Drybulk has also decided to install two Ventfoils, a foldable and autonomous unit for wind-assisted ship propulsion, manufactured by EconoWind. The technology will be installed on one of its new multipurpose vessels (17,500 dwt) slated for delivery in 2025 and operation under a time charter. 

Next year, MOL also plans the first retrofit of a Wind Challenger to an in-service bulker. The first of its third-generation bulkers, the Kurotakisan Maru III (89,999 dwt), which entered service in December 2021 and carries coal for J-Power will add the rigid sail. The retrofitting of the Wind Challenger aboard this second vessel is expected to reduce greenhouse gas (GHG) emissions by about five percent on a Japan-Australia voyage and about eight percent on a Japan-North America West Coast voyage, compared to a conventional vessel of the same type.

Recently, MOL also released data from its first vessel using the Wind Challenger, the Shofu Maru (100,000 dwt), which entered service in October 2022. The vessel has completed seven round-trip voyages to Japan mainly from Australia, Indonesia, and North America operating as a dedicated coal carrier for Tohoku Electric.  

Daily fuel consumption over the 18 months since the vessel entered service was reduced by up to 17 percent. On average the fuel saving has been between five and eight percent per voyage. MOL notes that the data was calculated using a method verified by Lloyd’s Register of Shipping and that the fuel saving during operation depends largely on wind conditions. The Wind Challenger does not produce thrust when the vessel encounters a headwind.

 

China Bags Oil E&P Contracts Off Mozambique

File image courtesy CNOOC

PUBLISHED MAY 26, 2024 6:05 PM BY THE MARITIME EXECUTIVE

 

 

China’s footprint in the African energy sector continues to expand, with Mozambique last week approving oil exploration and production contracts for CNOOC (China National Offshore Oil Corporation) subsidiaries, covering five blocks. CNOOC signed the concession contracts with Mozambique’s Ministry of Energy and the state-owned national hydrocarbons company (ENH).

The blocks span an area of 11,000 square miles, with exploration water depths starting from 500 to 2,500 meters. All the blocks are located in the Angoche and Save Sediment Basin offshore Nampula province.

According to the terms of the contracts, the first stage of the exploration period for the blocks will be four years. Five wholly owned subsidiaries of CNOOC Limited will act as the operators in the exploration and development phases, with independent operator rights and interests in the blocks. ENH will own the remaining non-operator interests.

Speaking during signing of the contracts, Mozambican Minister of Energy Carlos Zacarias said that the CNOOC deal represents a huge success in fulfilling the government’s five-year program 2020-2024 in the mineral resources and power sector.

According to Mozambique’s energy sector regulator, the National Petroleum Institute (INP), CNOOC will carry out an intensive exploration work program, including acquisition of 1000 miles of 3D seismic data and drilling of a minimum of four deep-water research wells in the designated offshore regions.

In 2021, the government launched the sixth bidding process for concession of areas for hydrocarbons exploration and production, which has so far received positive response from energy multinationals. Some of these companies include TotalEnergies, ExxonMobil, ENI, and now the addition of CNOOC.

According to exploration data of these firms, Mozambique is tipped to become a major exporter of LNG, especially after the discovery of over 180 trillion cubic feet of natural gas reserves in the Rovuma basin, further north of the Angoche site. The first LNG shipment destined for Europe departed Rovuma Basin in November 2022. This was a successful attempt by Mozambique to monetize its vast hydrocarbon reserves.

Unfortunately, a rising wave of insecurity in Mozambique’s Cabo Delgado province could deter the ongoing energy projects in the region. Almost three years ago, TotalEnergies was forced to suspend operations on a multi-billion LNG project at the Afungi site in northern Mozambique. At the time, Islamic insurgents escalated attacks in the nearby town of Palma, where many sub-contractors for the Afungi site were based.

COLD WAR 2.0

U.S. Navy Bases are Ejecting Foreign Nationals 2-3 Times a Week

A Chinese national arrested at the 29 Palms Marine Corps base in March for unauthorized access. The individual was in the U.S. illegally (U.S. Border Patrol)

PUBLISHED MAY 26, 2024 6:40 PM BY THE MARITIME EXECUTIVE

 

The U.S. Navy's base security personnel are catching and evicting a steadily increasing number of foreign nationals - particularly Chinese citizens - who are attempting to glean national security secrets, a top U.S. admiral said in an interview over the weekend. Many of them have proper papers allowing them to visit the United States as tourists or students, but their presence on a military base is not authorized - and in many cases, may constitute a criminal offense. 

"Usually the cover story is 'I'm a student, I'm an enthusiast I want to see the ships,' that type of thing," U.S. Fleet Forces Commander Adm. Daryl Caudle told Fox and Friends. "We have to turn them around, and typically we will get the [Naval Criminal Investigative Service] involved. We will get biometrics if possible."

Chinese visitors have been arrested for accessing or spying on U.S. naval installations multiple times in recent years, and two U.S. Navy servicemembers who were born in China were recently arrested on espionage charges. The more insidious, high-volume, low-effort Chinese attempts at naval base espionage have been gathering pace, Caudle said. 

"This thing of our military bases getting penetrated by foreign nationals is happening more and more. . . .  It's really hard for us to tell the underlying motive in these types of cases," Caudle told Fox News. "This is something we see probably two or three times a week, where we're stopping these folks at the gate, and this is just the Navy alone."

At least some of these individuals are Chinese nationals who entered the U.S. illegally and then attempted to access a military base. In March, an illegal Chinese immigrant was arrested on the 29 Palms Marine Corps Base and handed over to Border Patrol agents. 29 Palms is the Marine Corps' largest base and is used for its large-scale multi-unit exercises. 

"Despite being prompted to exit at the Condor gate by installation security, the individual proceeded onto the installation without authorization," a Marine Corps spokesman told Marine Corps Times. "Military law enforcement were immediately notified and detained the individual."

Suspicious drone overflights are also an increasing problem, Caudle said, and the Navy is working on increasing its capabilities to detect and defend against this new potential threat. 

"Generally it's just folks with drones - you can buy them commercially from Amazon or whoever it may be," he said. "But it's hard to differentiate that from a nation-state that's attempting to do espionage."

 

Op-Ed: Mariner Shortage Could Put the Jones Act at Risk

Civilian mariners with Military Sealift Command unload an aid cargo in Thailand (USN file image)

PUBLISHED MAY 26, 2024 12:26 PM BY DENNIS MURPHY

 

 

Let’s take a little look at the American maritime industry today as it stands. In fact, why not have a look around at your own personal “work world.” In very simple terms, do you have enough trained employees to handle the work load you already have? And we are talking about the employees that sweep the floors all the way up to the “boss-man.” If you don’t have a trained and properly staffed work force, then you have no company at all.

A thriving workforce is the key to very survival of the commercial maritime industry in America. And it all revolves around the Jones Act being maintained in the future. If, or when, the Jones Act falls, everything in our professional world will change.

Everywhere I look, I see unfilled positions go wanting. I like to think I keep my “finger on the pulse” of employment opportunities. And if you want a job in the maritime industry these days, all you have to do is just wave your hand in the air and you have one. There are always open positions posted at the mariners’ unions. Check out job boards and you’ll find more jobs. Lots of them. Have you had a look lately at the Military Sealift Command web site? Jobs... Jobs... Jobs. Here at MITAGS (the school I teach at), we have openings for full-time instructors on both coasts. And these openings have been active for many months.

At least weekly, the Washington State Ferries are having to cancel sailings due to lack of crew. The ferry system has resorted to advertising on TV to get applicants interested in going to work for them. Even the U.S. Coast Guard has “a critical shortage of qualified personnel.”

About this time you might be thinking: So what? More work for mariners. Well, the fact is that if there aren’t enough American mariners, then there will be more pressure to end the Jones Act and bring in foreign labor. If we are not proactive today, this might well be what our future will look like.

So, what can we do right now to insure a bright future for a maritime industry staffed by Americans? Once again, in my humble opinion, we need to pump money into attracting and training new people for the industry. And we need lots of them. Everything from welders to truck drivers to technicians to mechanics to mariners. When I was young, they had something called shop class in schools, and at that time every vessel employed ordinary seamen. (Those days are just a memory.) How many companies employ lots of ordinary seaman these days? All the companies want AB’s. But if you don’t have OS’s, just where do the AB’s come from?

In your particular field of expertise, do you foster an active recruitment and retention program? Have you developed a community outreach program to get the folks that actually live close to your operation involved and interested in going to work for you? Do you offer internships, apprenticeships, and scholarships? Do you offer paid cadet positions? What about paid training programs? Why would a young person even want to come to work for you? Those days of just offering a paycheck are long gone. Certainly, these are some important things to think about.

No, this “revamping” of our attitude towards staffing will not be easy or cheap. There will probably be a need for a government/private industry collaborative effort to get things moving along. And, of course, it will take lots and lots of time and effort on all of our parts. But if we don’t do something right now, then without any question, the maritime industry in America will look entirely different in the not-to-distant future.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.