Tag Archives: Carbon / Emissions Markets

Germany opens a third auction for payments to close coal-fired power plants | Instant News


FRANKFURT, March 3 (Reuters) – Germany’s energy regulator has opened a third round of bidding for coal-fired power plant operators to compete for compensation to cover their capacity, part of the country’s shift towards carbon-free power.

Germany has decided to abandon coal in 2038 and achieve a carbon-free energy system by 2050.

A spokesman for the Bonn Bundesnetzagentur-based regulator said a bid had to be submitted by April 30 to cover the 2,481 megawatt (MW) capacity that would go offline by the end of 2022.

The regulator’s website shows the maximum price per megawatt of closed capacity will be € 155,000 ($ 186,883).

In the auction, operators announce the price they will be prepared to close their factories in exchange for funds to cover some of their financial losses.

The winner is determined not only by price but also by the relationship between the costs expected to result in a CO2 reduction.

The second round, which opens on January 4 to deactivate capacity of 1,500 MW and which also sets a maximum price of 155,000 euros / MW, has concluded with results due in the coming weeks, the spokesman said.

Following the first round of bidding, which opened in September, regulators closed 4,788 MW of coal-fired power generation capacity on January 1.

The average pay to operators in the round was set at 66,259 euros / MW after bidding ranged from 6,047 euros / MW and 150,000 euros / MW.

The auction will continue in the coming years, but after 2027, coal-fired power plants can be ordered to close without compensation.

$ 1 = 0.8294 euros Reported by Vera Eckert; Edited by Edmund Blair

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EUROPEAN POWER – Friday prices rose due to lower German winds, solar power output | Instant News


PARIS, February 25 (Reuters) – European spot electricity prices for delivery on Friday rose on Thursday due to lower forecasts for wind and solar power generation in Germany.

* Over-the-counter baseload prices for Friday delivery in Germany rose 6.2% to 48.30 euros per megawatt hour (MWh) at 1009 GMT.

* France’s future contract added 6.2% to 48.25 euros / MWh.

* Power generation from German wind turbines is expected to fall 1.8 gigawatts (GW) day-on-day to 13.4 GW, while solar generation is expected to drop 2.2 GW to 3.6 GW, Refinitiv data show.

* “We expect wind power output to fall in the first half of the day, and increase in the latter half of tomorrow,” Refinitiv analysts said.

* French wind power supply is expected to increase by 1 GW to 3.6 GW, data show.

* Refinitiv forecast shows the average daily German wind power supply will fall to around 3 GW early next week before rising to 8 GW next Friday.

* France’s nuclear capacity reaches 75% of the total installed.

* More than half of EDF’s nuclear reactors could be operational for a decade longer than planned after maintenance work was carried out, French nuclear security watchdog ASN said on Thursday.

* French electricity demand on Friday is expected to rise 700 megawatts (MW) to 56.9 GW and fall in Germany by 390 MW to 64.2 GW, Refinitiv data show.

* Further along the curve, German Cal ’22 baseload power edged up 0.1% to 53.20 euros / MWh, following higher fuel prices.

* France 2022 contract added 0.2% to 54.25 euros / MWh.

* European CO2 allowances expiring December 2021 edged down 0.1% to 39.10 euros per tonne.

* Coal for northern European delivery in 2022 rose 0.9% to $ 69.1 a tonne, after hitting the highest level since February 1 at $ 69.20 earlier in the session. (Reporting by Forrest Crellin; Editing by Emelia Sithole-Matarise)

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Future check: Australia’s gas grid looks environmentally friendly with hydrogen | Instant News


MELBOURNE (Reuters) – Australia’s natural gas pipeline owners are working to prove their future A $ 75 billion ($ 59 billion) asset amid a global push toward clean energy, running tests to mix hydrogen with gas and produce green methane to replace the material fossil fuel.

Cashing in rare bipartisan support for hydrogen across Australian national and state governments to help reduce carbon emissions, owners of pipelines and networks have committed A $ 180 million for a variety of projects involving green hydrogen.

The Australian state has pledged to achieve net zero carbon emissions by 2050, in line with many developed countries, but Canberra has not committed to a 2050 term.

“This is a business risk that we have to manage,” said Ben Wilson, chief executive of the Australian Gas Infrastructure Group (AGIG), which is owned by a unit of the Hong Kong-based CK Group.

“What was initially defensive has become an opportunity, especially given our renewable energy sources. We could become the world’s biggest exporter of green hydrogen, “he told Reuters.

Pipe owners seeking government funding for a hydrogen project aim to show how their infrastructure can be used to deliver hydrogen in mixtures with gas and store hydrogen as a form of renewable energy storage.

(Graph: Map of the Australian pipeline,)

“Ultimately, we also think that continuing to use this infrastructure allows the entire economy to remove carbon at a lower cost,” said Dennis Van Puyvelde, head of gas for Energy Networks Australia.

A study conducted for the industry body last year found that to achieve net zero emissions by 2050, building a hydrogen distribution network would cost half the cost of expanding the power grid to serve businesses and industries currently dependent on gas, and save Australia around A $ 13. billion.

The pipeline company is working on a shorter timeframe than 2050, as several states push to have 10% hydrogen in gas pipelines by 2030.

EYES WITH GREEN METHAN

A study conducted for the government found that hydrogen can be safely added to gas supplies up to 10% by volume without having to modify pipelines or equipment.

Van Puyvelde said the advantages of mixing hydrogen to gas allow for the gradual buildup of industrial hydrogen, requiring an electrolycer of up to 1 gigawatt, compared to the much larger and more expensive electrolyzers that would be required to export green hydrogen.

In the first testing of hydrogen into distribution networks in Australia, AGIG will begin injecting a volume-based 5% green hydrogen mixture in the gas next month, to 700 homes in Adelaide.

Jemena, a company owned by State Grid Corp of China and Singapore Power, is working on a similar government-backed project in Sydney, mixing up to 2% hydrogen into the country’s largest local gas network later this year.

More projects are in the works, with the pipeline company selected for A $ 70 million in hydrogen funding from the government, the Australian Renewable Energy Agency said.

Over the long term, the industry is closely watching Europe’s largest energy grid operator, E.ON, converts gas pipelines in Germany to produce pure hydrogen.

Apart from hydrogen, an ideal substitute for natural gas is green methane, if it can be produced commercially. Methane is chemically the same as natural gas, a fossil fuel.

Testing its potential, APA Group, Australia’s largest pipeline company, is building a pilot plant in the state of Queensland that will use solar energy to drive an electrolyzer to separate water, generate hydrogen and combine it with carbon dioxide extracted from the air to produce methane. .

The project has attracted the interest of US companies, and if successful, could help companies around the world, such as APA, which have billions of dollars invested in pipelines servicing liquefied natural gas (LNG) plants.

“If successful, it will be compatible with the existing LNG infrastructure. You don’t need to retrofit, “APA’s head of transformation, Hannah McCaughey, told Reuters. ($ 1 = 1,269 Australian dollars)

(This story has been rewritten to correct paragraph 3 to improve formatting)

Reporting by Sonali Paul; Edited by Ana Nicolaci da Costa

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Germany is ready for a ‘new chapter’ in transatlantic relations | Instant News


BERLIN, February 19 (Reuters) – Germany is poised for a “new chapter” in transatlantic relations in which the United States and Europe follow a common agenda, Chancellor Angela Merkel said on Friday.

“In our principles and values, in our belief in democracy and its ability to act, we have a broad and sound basis,” he told the Munich Security Conference via video link.

“There is a lot to be done, and Germany is gearing up for a new transatlantic chapter.”

Big challenges like the pandemic and climate change must be tackled together in multilateralism, he said, and the United States and Europe must have a similar attitude towards Russia.

“It is very important for us to develop a general Russian transatlantic agenda, which on the one hand makes cooperative offers, but on the other hand clearly identifies differences,” he said. (Reporting by Paul Carrel; Written by Maria Sheahan)

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Italy’s Eni pledged to be carbon neutral by 2050 in its latest green push | Instant News


MILAN (Reuters) – Italian energy group Eni on Friday stepped up its ambition to reduce greenhouse gas emissions, pledging to become clean carbon neutral by 2050, as it seeks to keep pace with the industry’s pace under pressure from investors to go green.

FILE PHOTO: Italian energy company Eni logo is seen at a gas station in Rome, Italy August 16, 2018. REUTERS / Max Rossi / File Photo

Like his peers, Eni is stepping up plans to transition to cleaner fuels as governments around the world scale up green deals to tackle the climate crisis and power economies.

“We are committed to the full decarbonization of all our products and processes by 2050,” said Chief Executive Claudio Descalzi. “Our plans are concrete, detailed, economically sustainable, and technologically proven.”

Graph: Strategic Presentation of ENI 2021-2024 –

Eni shares were speeding up after the plan was launched, up 2.3% at 1324 GMT versus a flat European oil and gas index.

In an update to the cleanup efforts announced last year, Eni said it would cut absolute emissions by 25% by 2030 from 2018 levels and 65% by 2040.

Eni’s plans come just days after newly appointed Italian Prime Minister Mario Draghi has put climate change at the core of his plans for Italy and said his government intends to increase renewable energy and green hydrogen production.

Eni, which derives most of its revenue from oil and gas, said the goal of decarbonization by 2050 will be achieved by increasing yields from bio refineries, increasing renewable capacity, deforestation initiatives, carbon capture and other green projects.

“These are targets, not aspirations,” Descalzi told analysts during the plan presentation, adding that management salaries would be tied to it.

The world’s top oil and gas companies have set targets for reducing greenhouse gas emissions from their operations and the use of the products they sell.

Royal Dutch Shell pledged to eliminate net carbon emissions by 2050, raising its ambition from its previous target, as its oil production declined from its 2019 peak, while Total changed its brand as part of a push to diversify and grow electricity and renewable energy production.

Eni said he would combine his renewable and retail businesses to grow his customer base in synergy with green ambitions.

Revealing the short-term target until 2024, Eni said production would increase by 4% per year, with upstream spending of around 4.5 billion euros per year.

Eni plans to spend a total of 7 billion euros per year over the next four years, with more than 20% of that allocated to green projects and retail and renewable businesses combined.

Eni said it would once again base its dividend policy on Brent prices, saying a base price of 0.36 euros per share would start from an annual Brent scenario of $ 43 per barrel, two dollars lower than the previous level.

The company will buy back shares for 300 million euros if Brent reaches $ 56 per barrel, and more if the price rises.

Earlier on Friday, Eni posted a better-than-expected net profit adjusted for the fourth quarter as oil prices strengthened after what Descalzi said was “a year unlike any other in the history of the energy industry” sending full-year profits tumbling.

“We will never forget this extraordinary year marked by the most unexpected and disturbing crisis we have ever seen,” said Descalzi.

Graph: Eni vs European Oil and Gas Sector –

Additional reporting by Stefano Bernabei; Edited by Edmund Blair and David Evans

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