Study: Blue Hydrogen's Emissions Could be Doubled By Upstream Gas Leaks

The future site of BP's hydrogen production hub in Teesside, UK, which will include Britain's largest blue H2 plant (BP file image)

PUBLISHED JUL 2, 2024 8:21 PM BY THE MARITIME EXECUTIVE

 

A new study from climate consultancy Carbon Tracker suggests that the CO2 emissions from natural gas-based "blue" hydrogen could be up to two times higher than expected - not because of the underlying carbon capture technology, but because of upstream emissions, which may be outside of the H2 producer's control. 

Methane is released in varying amounts during the extraction, processing and transport of natural gas. It is a potent greenhouse gas, far more conducive to warming than carbon. Upstream methane leakage affects the lifecycle GHG profile of every user downstream. That includes producers of blue hydrogen, which is gray hydrogen (made from natural gas) coupled with carbon capture to abate the production plant's exhaust.

Blue hydrogen is among the most commonly-discussed alternative fuels for the green transition, since it can be produced from an abundant gas feedstock using familiar technology. The advent of a blue hydrogen industry could spur new long-term demand for natural gas, extending the runway for this fossil fuel and giving it a new lease on life in a "green" economy. 

However, the study suggests that "[blue hydrogen] projects can be considered low-carbon only if, on top of achieving high-carbon capture rates, they can guarantee to utilize natural gas with low upstream emissions." Factoring in these upstream emissions, Carbon Tracker looked at the unintended consequences of boosting blue hydrogen production and creating new demand for natural gas, particularly for projects in the UK and Europe. 

As gas reserves decline in the North Sea, Britain is increasingly reliant on imported American LNG. This means that if blue hydrogen ramps up in the UK, it would create more demand for natural gas extracted in the United States and shipped across the Atlantic. Given the comparatively high methane leakage rate of the U.S. natural gas industry, hydrogen made in Britain from American LNG would have a high lifecycle GHG profile, simply because of the practices of U.S. natural gas producers. American LNG's upstream emissions intensity is 10-15 times greater than UK pipeline gas, depending upon the source.

"Even with the best technology, blue hydrogen from imported LNG could emit up to 2.5 times more than the UK’s low carbon hydrogen standard," Carbon Tracker found. "Green hydrogen, produced from renewable electricity, remains the only truly low-emission pathway."

To resolve this "significant regulatory blind spot" for blue hydrogen, Carbon Tracker urged the adoption of strong standards for emissions monitoring, reporting and verification (MRV) for the upstream natural gas industry. "The current self-reporting framework is not working and there is a large gap between reported and measured emissions," the consultancy warned.

It also called for UK and EU policymakers to support only carbon-capture projects that "deliver permanent emissions reductions on the whole supply chain," on a lifecycle basis. This would exclude projects with high upstream emissions and would require blue H2 producers to guarantee that their feedstock suppliers would have low rates of methane leakage. 

"If conditions for low-carbon blue hydrogen and gas-CCS cannot be met, a stronger focus should be placed on green hydrogen from renewable sources and alternative flexibility technologies, such as long-duration energy storage, pumped hydro and green hydrogen turbines," the consultancy advised. 

 

Germany Blocks MAN’s Sale of Gas Turbine Business to China

MAN Energy Solutions' agreement to sell its gas turbine business to China is being blocked by the German goverment (MAN)

PUBLISHED JUL 3, 2024 12:57 PM BY THE MARITIME EXECUTIVE

 

 

Citing national security concerns, Germany plans to block the proposed sale of MAN Energy Solutions’ gas turbine business to a subsidiary of China’s state-owned shipbuilding company CSSC. MAN had announced the deal in June 2023 saying that the product area was no longer central to the company’s growth and divesting of the business was in keeping with the strategy to focus on offering for decarbonization.

MAN produced and serviced gas turbines of up to 8 MW in size with applications as mechanical drives or for power generation. The engines are also used in offshore applications. The shipping sector filtered with gas turbines as an early step to reduce emissions and improve efficiency. However, the engines proved costly in the maritime sector. For example, cruise lines including Cunard and Princess Cruises added gas turbines as adjuncts to the diesel motors on ships built in the early 2000s. Princess later removed them from at least one ship while Cunard stopped using them to reduce fuel costs. Royal Caribbean International and Celebrity Cruises also installed GE’s gas turbines on ships built around the same time.

The acquisition called for the unit including production centers in Germany and Switzerland, R&D, service and sales, and all related businesses to be acquired by Longjiang Guanghan, an affiliate of China Shipbuilding Industry Corporation and a subsidiary of China State Shipbuilding Corporation (CSSC). The company is a provider of small and medium-sized gas turbines in a 5 to 50 MW range as well as other combustion technologies. MAN was providing a five-year guarantee for the production sites in Oberhausen, Germany, and Zurich, Switzerland. 

MAN Energy Solutions had already taken the decision prior to 2023 to separate from the gas turbine product area and called the acquisition and means of providing for the future development of the gas turbine series. They said it would also preserve approximately 100 jobs associated with the unit.

The company launched a business strategy plan in 2020 that calls for the transformation of the business into a solutions provider for sustainable energy. Acquired in 2011 by Volkswagen AG, MAN has been working to enhance its business performance. In December 2020, Volkswagen committed to maintaining its position for at least four more years as part of union contract negotiations.

Germany’s Economy Minister Robert Habeck announced the decision to reject the acquisition deal citing national security concerns. Last September Germany had said it would be taking a close look at the planned sale of the assets to China. Unconfirmed media reports cited close ties between Longjiang and the Chinese military. Under German law the government has the right to review and approve deals where assets are being sold outside the European Union. In 2022/2023, the government used the same powers to force a reduction of the size of the investment COSCO planned to make in a Hamburg container terminal.

Reuters is reporting that MAN is expected to wind down gas turbine development and product after today’s decision.

 

German Offshore Wind Farm Selects China’s Most Powerful 18MW Wind Turbines

Ming Yang would supply 16 of the 18.5 MW turbines for a German offshore wind farm (Ming Yang)

PUBLISHED JUL 3, 2024 3:59 PM BY THE MARITIME EXECUTIVE

 

 

A new offshore wind farm planned for the German North Sea signed a preferred supplier agreement reserving the world’s largest wind turbines with a rating of 18.5 MW, which could make it the first to employ the massive equipment. News of the selection however has been met with resistance from the industry and today the German government said it plans to review the supply agreement.

Luxcara, an asset manager based in Germany, reported it signed an agreement with China’s Ming Yang Smart Energy as the preferred supplier for 16 wind turbines with a rated capacity of up to 18.5 MW. The plan calls for the turbines to be installed in 2028 at the Waterkant site. Luxcarta won the right to build the wind farm in the German government’s August 2023 auction. Waterkant would be located approximately 55 miles from Borkum in the North Sea.

They reported the wind turbines were selected from an international tender and after extensive due diligence. Ming Yang committed to using renewable energy in the manufacture of the turbines and that relevant electrical components for the turbines would be sourced from European suppliers.

“The Waterkant team thoroughly examined the turbine offers received in response to an international tender launched in late 2023,” the company wrote in its announcement. “Besides technological, financial, contractual and environmental aspects, the decision for Ming Yang was also based on an extensive due diligence exercise, covering the supply chain, ESG compliance aligned with the EU taxonomy and cyber security supported by independent experts from international advisors DNV and KPMG.”

The European wind industry lobby responded to the news criticizing the deal noting it gives China access to the German and EU infrastructure. They cited dangers of unfair competition building on an April 2024 announcement that the European Commission was planning to review the market for possible “distortions” from Chinese competition.

Germany’s economy minister told Reuters that they would look “very closely” at the supply agreement. He also cited the need for fair competition. He made the statements on the same day it was announced that Germany would block a deal to sell MAN’s gas turbine business to a subsidiary of China’s state shipbuilder. It is part of the growing anxiety over China’s aggressive competition and efforts to make inroads into the West.

Chinese wind turbine manufacturers are anxious to gain opportunities in the European market. Luxcara highlights by selecting the largest turbines available it is maximizing the production from the site and expediting Germany’s energy transition. They said it would help to create competition in the industry but that control would remain with an independent German company.

Ming Yang announced its plans for a turbine able to generate between 18 and 20 MW in 2023. They said it was evolving from the current platform for 14 to 16 MW with a lightweight design with an integrated drivetrain and employing large carbon-fiber blades with high-performance airfoils. They said it will be suited for medium to high wind regions and can sustain typhoons.

The turbines planned for Waterkant would have a rotor diameter of 260 meters (853 feet). The company says the site will be able to generate electricity for approximately 400,000 homes.

Two other Chinese manufacturers, CSSC Haizhuang and Dongfang, have also announced 18 MW turbines. Both companies installed prototypes earlier this year at their test sites. GE Verona had announced plans for a competing offering but recently shelved its efforts saying it would focus on the 15 MW turbines which will be the workhorse of the industry.

DOF Buys Maersk Supply Service for $1.1B and Maersk Spins-Off Wind Business

DOF will acquire the offshore business to become the largest provider in the energy sector (DOF file photo)

PUBLISHED JUL 2, 2024 5:46 PM BY THE MARITIME EXECUTIVE

 Norway’s DOF Group will pay approximately $1.1 billion to acquire Maersk Supply Service further consolidating the offshore service sector focusing on the oil and gas sector. The deal comes just a year after A.P. Moller-Maersk sold the company to A.P. Moller Holding and is a further step in the restructuring of the industry.

Under the terms of the agreement, DOF will pay $577 million in cash and issue new shares to A.P. Moller Holdings which will become a 25 percent owner of the combined company. Maersk Supply Service will undergo a further restructuring separating its offshore wind installation business and its assets in Brazil with DOF buying the company and 22 vessels, consisting of eight high-specification CSV vessels, 13 high-specification AHTS vessels, and one cable layer. After completing the deal, DOF Group’s total fleet will be 65 owned vessels and a total of 78 offshore/subsea vessels.

They highlight that the deal will create one of the largest oil service companies listed on the Oslo Stock Exchange with an estimated market capitalization of $2.3 billion. According to the companies, the combined company to be known as DOF will provide a comprehensive offering and be a major integrated service provider for the energy industry. 

DOF CEO Mons Aase highlights the combined company will have the largest fleet of CSVs and high-end AHTS vessels. He said it will enhance the customer experience through increased scale, global reach, and industry-leading services.

The two businesses' operations are said to be strategically and geographically complimentary. They expect the combination will spur further growth opportunities. The transaction is subject to standard approvals and is expected to close during the fourth quarter of 2024.

“This long-term solution for Maersk Supply Service’s OSV activities together with DOF Group is founded on our shared values and unwavering commitment to safety and efficiency of our operations. The combination of our talented employees, modern fleet and geographical spread will create a leading offshore service provider characterized by unique scale and a wide range of product and service offerings across key markets for the benefit of our customers,” said Christian Ingerslev, CEO of Maersk Supply Service.

Under the terms of the agreement with DOF, the offshore wind sector has been carved out from Maersk Supply Service. In March 2024, Maersk Supply Services announced it would partner with Louisiana-based Edison Chouest Offshore for the offshore wind business. Maersk has a large wind installation vessel currently under construction at Seatrium due in 2025 and with Edison Chouest, they plan to develop a feeder supply network to move materials from shore to the installation vessel.

A.P. Moller Holding reported today the launch of a new company Maersk Offshore Wind which takes the operations for the offshore wind business from Maersk Supply Service. The installation vessel is expected in mid-2025 and is under contract to provide services to the Empire Wind project in New York being developed by Equinor.

Maersk Supply Service was launched in 1967 as the first Scandinavian offshore company and focused on the oil and gas sector. A.P. Moller-Maersk sold the company in March 2023 to its parent company, the family investment company, as the final step for the shipping line to exit the energy sector. However, with the prolonged downturn in the offshore energy sectors, Maersk Supply Service continued to reorganize including launching into the offshore wind sector and ordering a wind installation vessel. In 2023 it also exited its operations in Australia and the Pacific to focus on the wind sector and offshore energy.

 

Meyer Werft Agrees with Union to Reorganization as Part of Proposed Bailout

Meyer won orders for two additional 180,000 GT cruise ships from Carnival Cruise Line extending its order book to 2028 (Meyer Werft)

PUBLISHED JUL 3, 2024 2:05 PM BY THE MARITIME EXECUTIVE

 

 

Germany cruise ship builder Meyer Werft and the union IG Metall reached important agreements as the first step toward a proposed reorganization and bailout of the financially troubled yard in Papenburg, Germany. Meyer Werft is facing with a liquidity crisis as an after effect of the pandemic and rising costs.

The company is in negotiations with the state government to provide critical loan guarantees for the next few years. While the Papenburg shipyard was able to maintain its orderbook during the pandemic and has added to it with new contracts, it faces a cash shortage in order to build and deliver these cruise ships. Typically, the cruise lines provide a 20 percent upfront payment with the order and the shipyard must finance the materials and pay employees and contractors during the construction period.

The company and union announced their agreements at a press briefing in Papenburg this afternoon, July 3. The union has agreed to job cuts for 340 employees at the Papenburg yard, down from an original proposal to cut 440 positions immediately. Further, the shipyard agreed to attempt to avoid layoffs. It will not renew 100 temporary positions when they expire and will launch a voluntary separation scheme. If by April 2025 they have not reached the 340 number then layoffs may be implemented.

Meyer Werft made several key concessions which CEO Bernd Eikens called “important building blocks,” for the future. The company agreed to relocate its headquarters, which have been in Luxembourg since 2015, back to Germany. Following the required structure for German companies, they will institute both a supervisory board and a group works council in the “near future.” The Papenburg shipyard also agreed to a minimum staffing level of 3,100 employees, including at least 1,200 in production, through 2030.

Meyer Werft is a large employer in Germany’s Lower Saxony region and supports a broad network of contractors and suppliers. Estimates are that at least 10,000 jobs are associated with the shipyard’s work.

Eikens said today’s agreements will be followed by “further steps” in the next few days. He took the reigns of the company from the Meyer family in December 2023 and has brought in a reorganization specialist. He has said the shipyard must and will become more profitable.

Meyer Werft is reported by the German media to be seeking €270 million in financing with government loan guarantees to carry the company through 2027. The state government has expressed its support for the company while calling for the reorganization steps that were agreed to today. However, they will also need the support of the federal government due to the size of the proposed guarantees. The media reports that Meyer is also looking for investors and may require as much as £400 million in new capital.

The German news outlet NDR is reporting that talks are beginning today with the Federal Ministry of Economics. Two of the leading political wings have expressed their support for the discussions and concern over the potential impact on jobs. Media reports are saying that a deal must be reached by September to shore up the weak finances of the Papenburg yard.

The broader Meyer Group, which also has shipyards in Turku, Finland and Rostock, Germany, is reported to employ 7,000 people. The bailout is focused on Papenburg. 

Meyer has recently expanded its work winning its first contracts for offshore platforms. It is also contributing to the construction of a German research vessel. The yard traces its origins to Willm Rolf Meyer, who started building small wooden sailing boats in 1795 in Germany. It transitioned into cruise ships in the 1980s after a downturn in the tanker market and today is one of only three major builders in Europe for large cruise ships

 

Anglo considers options to sell coal assets after fire

Thomas Biesheuvel and Dinesh Nair, Bloomberg News

Anglo American Plc is considering options to push ahead with a sale of its coal business after an explosion at its flagship Australian mine, including the possibility of selling individual assets or excluding the damaged operation from a potential deal. 

The plan to exit coal formed part of a dramatic restructuring program announced earlier this year by Anglo, as the London-based miner was trying to fend off a takeover pursuit by larger rival BHP Group. 

While it also intends to spin off its platinum unit and either sell or separate diamond miner De Beers, the company had been planning to tackle the coal sale first, seen internally and by investors as the most easily achievable part of the restructuring. Anglo has said it already received interest in the assets and a deal for the highly attractive coking coal mines in Australia would have demonstrated early progress to investors looking for signs that Anglo’s go-it-alone approach offers better value than the rejected bid from BHP. 

The plan was thrown into question on Saturday when a methane explosion deep underground started a huge fire at Anglo’s Grosvenor coal mine in Queensland. It’s likely to be several months before the company is able to safely reenter the mine, let alone restart mining. 

However, the company is reluctant to abandon the sales process despite the setback, given the strong early interest it received in the mines, according to people familiar with the matter. Before the accident, Anglo had been planning to kick off a sales process in the coming months with a view to reaching a deal by the end of the year, said the people, who asked not to be identified discussing private information. 

While the company had not laid out how it was going to sell the unit, its options now could include selling the rest of the coal business without Grosvenor or selling the other mines individually, the people said, emphasizing that no final decisions have been made.

While excluding Grosvenor from a sale would result in a lower price, Anglo is keen to move forward and demonstrate that it’s making progress after its board unanimously rejected the approach from BHP in May. The world’s biggest miner is currently restricted from making a fresh approach for Anglo but a six-month regulatory standstill will expire later this year. 

A spokesman for Anglo declined to comment. 

Anglo rose as much as 2.1 per cent in London to 2,447 pence. The stock slumped as much as four per cent Monday after news of the explosion.

Besides a sale of its coal business, Anglo is also working on plans to spin off its majority stake in Anglo American Platinum Ltd. and exit its ownership of De Beers. The company would prefer to wait for a recovery in the diamond market, the people said, as the internal view at the company is that De Beers should command a price that reflects its status as a trophy asset.

 THE BOSSES FUCKED UP

WestJet says operations 'stabilized' after long weekend strike

The Canadian Press

WestJet says its operations have "stabilized" after a strike by its mechanics over the long weekend upended plans for thousands of Canadians. The WestJet check-in area at Pearson International Airport is photographed in Toronto, Saturday, June 29, 2024. , THE CANADIAN PRESS/Christophe

WestJet says its operations have "stabilized" after a strike by its mechanics over the long weekend upended plans for thousands of Canadians. 

About 680 workers walked off the job Friday evening despite a directive for binding arbitration from federal Labour Minister Seamus O'Regan.

A tentative deal was reached late Sunday night and the airline said in a statement Monday that further cancellations would be required over the coming days.

WestJet says it projects minimal future cancellations due to the strike, with 30 today and eight for Thursday. No cancellations related to the strike are expected on Friday.

The airline says the total number of cancellations due to the strike was 1,171. 

Workers still have to vote on the tentative deal, which the union has said gives the mechanics a 30-per-cent boost in total compensation over the contract’s five-year term. 

This report by The Canadian Press was first published July 3, 2024.

How arbitration plans went awry in WestJet mechanics strike

Christopher Reynolds, The Canadian Press

Arbitration doesn't typically spur a strike. If anything, the reverse occurs.

But on Thursday, a directive for binding arbitration from Labour Minister Seamus O'Regan was met with job action by WestJet plane mechanics just one day after it was issued, catching the airline and the government off guard and marking a turbulent start to one of the busiest travel weekends of the summer.

The work stoppage, which ended late Sunday night, raises questions about a dispute resolution process that pushed tensions to the breaking point and how consumers should respond to the threat of an airline strike.

Given the minister's broad authority "to secure industrial peace" under the Canada Labour Code, O'Regan had the power to bar a strike in a directive to the country's labour tribunal that imposes binding arbitration, said a union official and aviation experts.

In their public statements last week, both the airline and the federal government seemed to presume a strike was off the table after the order, but a ruling Friday by the Canada Industrial Relations Board said the union's 680 WestJet workers could still walk off the job because the directive had not explicitly suspended that right.

The decision forced WestJet to call off more than 1,100 flights affecting roughly 150,000 travellers — many of whom received less than a day's notice — according to figures from the Calgary-based company and tracking service FlightAware.

The strike sparked outrage in the C-Suite.

"In my 25 years in aviation, I have never encountered such an unreasonable counterparty. Calling for a strike despite the minister ordering arbitration is a misuse of the right to strike," said CEO Alexis von Hoensbroech in a post on LinkedIn.

He said in the statement that the move served no purpose other than disrupting customers and "creating damage" to the carrier. 

"Once the parties are in arbitration, there is no more bargaining taking place, so a strike no longer influences the outcome."

That turned out not to be the case. Talks did resume over the weekend, and they yielded a tentative deal that would see the mechanics receive a 30-per-cent boost in total compensation over the contract's five-year term, according to Ian Evershed, a representative for the Airplane Mechanics Fraternal Association who helped lead the negotiations.

Now, arbitration will only kick in if workers vote to turn down the agreement. They overwhelmingly rejected an initial offer in a mid-June vote, prompting WestJet to request binding arbitration and setting in motion the manoeuvres that culminated in the Canada Day long weekend strike.

The work stoppage took a toll on consumer goodwill, with travellers venting their frustration on social media in sometimes colourful language.

One customer said on the X platform the airline informed them only at 11:12 p.m. on Saturday that their next-day flight out of Las Vegas was cancelled, calling the last-minute move "scumbag behaviour." 

While most travellers could receive refunds from WestJet, those with related costs tied to hotel or other flight bookings — that they missed, or that they made while stuck abroad — might not get that money back without coverage for trip cancellation or interruption, said Marty Firestone, president of insurance firm Travel Secure Inc.

"This has been a nightmare for people," he said. "Getting that refund for your airfare is the least of your problems."

The strike also left both sides in the standoff embittered.

In the conference room at a hotel near Toronto's Pearson airport, the mood see-sawed wildly from day to day, Evershed said.

"When the ministerial referral came through we felt completely defeated. And then likewise over the course of the next day or two where the CIRB upheld our right to strike ... we were elated," he said.

"I'm sure that the company was just devastated by that."

As the weekend wore on, the friction only intensified.

“Emotions are running high. The big contributing factor is fatigue ... There are points where frustration takes over," Evershed said.

“Some of the things that have been said publicly — it’s unfortunate that it went that far," he added, referring to both parties. In an update Sunday morning, the union negotiating committee said it was "the victim of WestJet’s virulent PR campaign that (members) are scofflaws," citing "calumnies" against workers around their right to strike.

Eventually, a hard-headed resolve to hash out a deal took hold. Von Hoensbroech joined the talks Sunday morning, a WestJet spokesperson confirmed. The CEO and Evershed spoke via video conference late Sunday afternoon, and the two sides reached an agreement at 10:30 p.m. MDT, said the union rep — a mechanic at the carrier for more than 15 years.

“At the end of this, I’m a WestJet employee."

This report by The Canadian Press was first published July 2, 2024.

Feds announce $11 million in funding for clean energy projects, mostly in Alberta

The Canadian Press

Eleven clean energy projects, most of which are based in Alberta, have been selected to receive a total of $11 million in federal funding. Energy and Natural Resources Minister Jonathan Wilkinson rises during Question Period, Monday, June 17, 2024 in Ottawa. , THE CANADIAN PRESS/Adrian Wyld

Eleven clean energy projects, most of which are based in Alberta, have been selected to receive a total of $11 million in federal funding.

Natural Resources Minister Jonathan Wilkinson made the announcement in Calgary Wednesday where he was attending a conference with provincial and territorial ministers.

Of the funding, $2.5 million will go to small modular nuclear reactor research at the University of Alberta and University of Regina.

The remaining $8.5 million will be divided between seven Alberta companies doing work in the area of hydrogen.

Recipients of the funding will include Atco Gas, which is working to develop the first commercial 100 per cent hydrogen-heated building in Canada; Innovative Fuel Systems, which is developing a retrofit system to convert heavy-duty diesel truck engines to hydrogen engines; and New Wave Hydrogen, which aims to use shock-wave heating to produce clean hydrogen from natural gas without producing any carbon dioxide emissions in the process.

Interest in low-carbon hydrogen and other low-carbon fuels has increased significantly in recent years. 

There are now more than 80 low-carbon hydrogen production projects currently in various stages of development, according to the federal government. The government's own estimate pegs the economic opportunity of hydrogen development in Canada at over $100 billion. 

"Hydrogen presents a massive opportunity," said Wilkinson. "(It's) a clean energy source that can build on existing strengths, and simultaneously support energy security and climate objectives."

Both hydrogen and small modular nuclear reactors are areas of focus for the feds, as it works toward its goal of getting Canada to net-zero emissions by 2050.

A new report from clean energy think-tank the Pembina Institute and Simon Fraser University says Canada is on track to make significant progress toward that goal thanks to government policies that are accelerating the shift to clean energy.

"If all governments stay the course on the plans and policies that they have already implemented (or announced plans to implement), Canada would be on track to significantly reduce emissions by the end of this decade," the report's authors state.

The report gives high marks to the federal government as well as the governments of B.C. and Quebec for supporting the energy transition, but says Alberta and Saskatchewan are lagging behind.

This report by The Canadian Press was first published July 3, 2024.

 WORKERS CAPITAL

OMERS selling LifeLabs to U.S.-based Quest Diagnostics

P3: PUBLIC PENSIONS FUND PRIVATIZATION

The Canadian Press

Ontario pension fund manager OMERS has signed a deal to sell medical lab company LifeLabs to U.S.-based firm Quest Diagnostics in a deal valued at $1.35 billion including debt.

Quest Diagnostics chairman and CEO Jim Davis says the deal is based on the belief that the company can help LifeLabs accelerate growth and improve health care.

OMERS purchased LifeLabs in 2007 and helped grow the business.

Under the deal, the companies said LifeLabs will retain its brand, Canadian headquarters and management once the deal is closed.

Quest is expected to help LifeLabs with improved online appointment scheduling and faster patient service centre processing.

OMERS is the pension fund manger for municipal employees and retirees in Ontario.

This report by The Canadian Press was first published July 3, 2024.

 

Waterloo software firm OpenText cuts 1,200 jobs as part of business optimization plan

Tara Deschamps, The Canadian Press

OpenText Corp.'s chief executive says the company plans to shed about 1,200 roles as part of a business optimization plan.

In an open letter to stakeholders released Wednesday, Mark Barrenechea describes the cuts as a way of "placing the right talent in the right locations of our business, funding growth and innovations, and completing these objectives with higher productivity, lower cost, and expanded margin."

The Waterloo, Ont.-based software company did not immediately respond to questions about the extent and nature of the layoff, but data provided by LSEG Data & Analytics showed OpenText employed 24,100 staff last June.

Barrenechea's note said the job reduction will come with one-time costs of about $60 million but will generate about $150 million in savings per year.

The move will be combined with plans to create 800 new roles in sales, professional services and engineering and comes as the company is ushering in a new chapter.

Barrenechea's letter called that chapter "OpenText 3.0 – Information Reimagined" and said it builds on former stages of the company that centred on content management and then information management based in the cloud.

The new stage taking the form of a three-year plan focused on cloud, security and artificial intelligence innovations.

In the cloud segment of the business, Barrenechea said the company will find ways to automate and drive productivity for workers, and in the AI portion, it will seek out ways to transform business processes.

Across all of its technology, it will work to ensure it offers security and compliance for global businesses.

"We are very excited about opportunities going forward to continue our growth and increase our market share by helping our customers transform," Barrenechea said.

"Along with our plans to pursue large margin expansion opportunities and execute on strong capital allocation, we are confident we will deliver significant long-term value for all our stakeholders."

Richard Tse, an analyst with National Bank of Canada, believes the moves will drive "some organic growth in the interim until the company can pursue a more active level of acquisition activity."

"Overall, we believe the above actions signal challenging operating results in the short term, including the upcoming FQ4 results," he wrote in a note to investors.

In OpenText's most recent quarter, the company earned US$98.3 million, up from US$57.6 million a year earlier. 

Its revenues for what was the third quarter totalled US$1.4 billion, up 16 per cent from US$1.2 billion during the same period last year. 

During the quarter, the company completed the divestment of its AMC business to Rocket Software for US$2.3 billion in cash before taxes, fees and other adjustments.

This report by The Canadian Press was first published July 3, 2024.

Hope for Mekong dolphins as Cambodia numbers increase: minister


By AFP
July 1, 2024


Irrawaddy dolphins feature on the "Red List" of endangered wildlife by the International Union for Conservation of Nature - Copyright AFP TANG CHHIN Sothy

The number of Mekong dolphins has risen to more than 100 in Cambodia, the agriculture minister said Monday, raising a glimmer of hope for the endangered mammals.

Irrawaddy dolphins — small, shy creatures with domed foreheads and short beaks — once swam through much of the mighty Mekong, all the way to the delta in Vietnam.

But their population in the river has dwindled from 200, when the first census was taken in 1997, to just 89 in 2020, largely due to illegal fishing, habitat loss and plastic waste.

“Currently, we have some 105 dolphins,” Agriculture Minister Dith Tina said during a ceremony to mark National Fisheries Day.

In the first six months of this year, eight new dolphin calves were recorded, but there were also two deaths, the agricultural ministry said.

The boost to numbers follows the birth of eight dolphins last year, a ministry statement said, while 2023 also saw five deaths recorded.

“The ministry has strongly taken measures against fishing offences and the making and distributing of destructive fishing tools that seriously damage marine resources,” Dith Tina said.

Last year Cambodia’s then leader Hun Sen U-turned on a law to protect the species, saying “dolphins keep dying” while the fishing industry suffered from the conservation legislation.

Irrawaddy dolphins feature on the “Red List” of endangered wildlife by the International Union for Conservation of Nature (IUCN).

Adding to concerns about their survival, around 70 percent of the population is now too old to breed.

The dolphins’ habitat has also been reduced by upstream dams in Laos and China and climate change, which have had a major impact on water levels in the river.