Tag Archives: Electrical Utilities (TRBC level 4)

Brazil to cut its stake in Eletrobras to 45% from 61% in privatization – energy secretary | Instant News


SAO PAULO, February 24 (Reuters) – The Brazilian government will cut its stake in power company Centrais Eletricas Brasileiras SA, or Eletrobras, to 45% from the current 61% in the planned privatization process, a senior official at the Energy Ministry told Reuters. Wednesday.

The ministry’s Energy Secretary Rodrigo Limp said the government expects its stake in Eletrobras to double in value to 60 billion reais ($ 11 billion) with the increase in share price that privatization hopes will bring.

President Jair Bolsonaro presented a bill to Congress on Tuesday that would accelerate the divestment in Brazil’s biggest utility.

$ 1 = 5.4062 reais Reporting by Luciano Costa, Editing by Rosalba O’Brien

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UPDATE 1-Italia wants Open Fiber control in the broadband launch drive – source | Instant News


* CDP will not take any precautions on Open Fiber stock sources

* CDP wants a 10% stake in Open Fiber for source control

* TEAM board including CDP Chairman – source (Records by raising stakes, adding comments, background)

ROMA / MILAN, 22 Feb (Reuters) – Italian state lender Cassa Depositi e Prestiti (CDP) wants to increase its stake in Open Fiber to 60% to take control of the broadband company, sources say, as Rome moves ahead with plans to increase ultra-fast connectivity across the country.

CDP will not exercise its first refusal rights on the 50% utility stake that Enel sells in Open Fiber but wants to increase its own stake to 60%, two sources close to the matter said.

Enel, which co-owns Open Fiber with CDP, is in talks to sell 40% to 50% of the fiber infrastructure group to Australian fund Macquarie in June.

Under the deal, Macquarie will pay 2.65 billion euros ($ 3.2 billion) for a 50% stake, although any final price may fluctuate depending on a series of acquisition clauses.

The source said CDP would relinquish its pre-emption rights but entered into talks to buy a 10% stake in Open Fiber from Enel, and negotiate governing rights with Macquarie to take full control.

Former Italian Economy Minister Roberto Gualtieri has tried to create a full-fiber national network by combining Open Fiber with Italian Telecom (TIM) landline assets.

New Prime Minister Mario Draghi has put digital infrastructure at the heart of his government’s agenda, but he hasn’t clarified whether he intends to implement an integrated network project and under what conditions.

Controlled by the Ministry of Finance, CDP is the second largest shareholder of TIM behind French media giant Vivendi but never holds a board seat.

A third source said on Monday that the list of Telecom Italia candidates to be presented for the new council at the annual general meeting would include CDP Chairman Giovanni Porno Tempini.

TIM will reveal the list on Tuesday. The source said the CDP could summon a new council on Thursday to discuss its support for the list.

Telecom Italia and CDP declined to comment while Enel could not be reached for comment. ($ 1 = 0.8229 euros) (Reporting by Giuseppe Fonte, Stephen Jewkes, Elvira Pollina; Editing by Richard Chang)

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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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UPDATE 1-Draghi effect to drive up the Italian financial markets – Morgan Stanley | Instant News


(Add quote, details, background)

LONDON, Feb. 17 (Reuters) – Mario Draghi’s appointment as prime minister of Italy will provide a big boost to the country’s financial markets, Morgan Stanley said on Wednesday, predicting a big increase in the spread of closely watched sovereign bonds and double-digit performance. by its stock market.

Draghi, a former head of the European Central Bank who feasted on the Italian media as a national savior, pledged sweeping reforms to help rebuild Italy in a speech to the Senate on Wednesday ahead of a mandatory vote of confidence in his national unity government.

Morgan Stanley said the halo effect would narrow the BTP bond spread – a premium investor demand for holding Italian government bonds rather than AAA rated German debt – to 85 basis points in June from the current 90 bps spread. In the optimistic case it could drop to 55 bps before the end of the year.

For stocks, the bank expects Italy’s MSCI index to outperform MSCI EMU by 10-15% led by banks. Stocks with an overweight rating include: Unicredit, Mediobanca, ENEL, Stellantis and Prysmian.

“PM Draghi’s government is a significant positive catalyst for Italian equities, which are trading near record low valuations versus EMU,” said Morgan Stanley analysts.

The long-suffering European banking sector could do better.

Increasing perceptions around Italy could be matched by the expected economic recovery from the COVID-19 pandemic, Morgan Stanley said, adding that a performance of more than 30% was “absurd”.

The MSCI European stock index is currently trading at a discount to the World Index of All Countries excluding the United States for the first time since 2013.

“Draghi’s appointment could spark renewed interest in the region from global investors, as was the case around (Emmanuel) Macron’s election victory in France in 2017,” said Morgan Stanley.

Reporting by Marc Jones; Edited by Tom Arnold and Gareth Jones

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Brazil’s Belo Monte Dam reaches an agreement for a power plant | Instant News


SAO PAULO, February 8 (Reuters) – Brazil’s Belo Monte hydroelectric dam operator reached an agreement with environmental authorities on Monday that will allow it to maintain a steady flow of energy generating water in exchange for investments to reduce environmental and other impacts.

In January, environmental agency Ibama ordered Belo Monte operator, Norte Energia, to increase water flow into the Xingu River because of concerns about damage to the environment and local communities, according to documents reviewed by Reuters.

Environmentalists and indigenous peoples have criticized the construction of the Belo Monte dam – the world’s fourth largest hydropower plant – for unduly reducing water levels in the Xingu River, destroying the local environment and traditional fishing.

On Monday, Ibama and Norte Energia said in separate statements that the dam operator would invest 157.5 million reais ($ 29.4 million) over the next three years in environmental protection and assistance for local residents. Instead, the company does not need to increase the outflow to the Xingu River.

Norte Energia is 49.98% owned by state-owned company Eletrobras with other shareholders including miners Vale SA, Light SA, Neoenergia SA and CEMIG. ($ 1 = 5,3655 reais) (Reporting by Gabriel Araujo; written by Jake Spring; editing by Richard Pullin)

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