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
Much of Australia’s reduction in greenhouse gas emissions last year is likely to be wiped out as transport recovers after the Covid-19 lockdown and agriculture recovers from a long-term drought, according to a national climate data audit.
Scott Morrison to the National Press Club earlier this month the government “resumed” emission reductions, citing official data that found emissions fell 3% in the year to June to the lowest level since 1998. He stated “this is a fact”.
An audit by Hugh Saddler, an energy consultant and honorary professor at the ANU Crawford school of public policy, suggests at least some of the decline is likely to be lost.
The monthly national energy emissions audit, published by the Australian Institute, found a reduction in carbon pollution of about 4.5% over the two years to 2020. This is largely due to surges in solar and wind power, but also related to the impact of the Covid-19 shutdown, especially on transportation, and the continuing effects of long-term drought, which significantly reduced the numbers of sheep and cattle.
The audit found cuts in the last two categories were unlikely to continue.
The end of lockdowns and restrictions on domestic travel means emissions from road and aviation traffic are likely to “revert to previous upward trends”.
Likewise, agricultural emissions are likely to increase as drought conditions subside and livestock numbers and crop production increase, in line with government projections. Nearly 80% of agricultural emissions come from livestock and agriculture.
Saddler said it underscored that recent national emission reductions were largely due to external conditions, not climate policy. The Morrison government does not have a comprehensive policy to reduce emissions from transportation or agriculture.
He said the government’s discussion paper on “future fuels” on reducing emissions from transportation did not offer “almost nothing”, and the government had no plans to reduce agricultural emissions. Several Members of the National Parliament argued that the sector should be excluded of climate commitments, a stance that has put them at odds with farmer groups who are calling for a net zero emissions target by 2050.
“Power plant emissions will continue to fall but, in the absence of significant policy changes, the reduction from this sector will be offset by continuing to increase transportation emissions,” said Saddler.
“Total emissions from all sectors other than power generation will remain almost unchanged from 2018.”
The projection report shows that the Morrison government is not yet on track to meet Australia’s 2030 emissions target under the Paris climate conference (a 26% to 28% reduction to 2005 levels). Conversely, the policy set will result in a 22% cut during that time period. More than half were achieved before the Coalition was elected in 2013.
Morrison said the government wants Australia to achieve net zero emissions as soon as possible, and preferably by 2050, through a “technology, not tax” approach, but has not explained how its policy will achieve that.
Richie Merzian, director of the Australian Institute’s climate and energy program, said emissions from vehicles and agriculture are now almost the same as emissions from the entire electricity sector.
“There is a real opportunity for the federal government to set the country towards net zero emissions by 2050, if not sooner, but this will require sector-level plans for transportation and agriculture,” he said.
The audit has looked at changes in emissions in the national electricity market, which includes five eastern states and the Australian Capital Territory, since 2008.
They fell 26.5% during that time as coal-fired power plants shut down and reduce their operating capacity, and wind and solar energy made up a larger share of the electricity supply.
The surge in renewable energy investment has been driven largely by national renewable energy targets – which are filled in 2019 and not renewed or replaced – and aided by country targets and rapid reductions in the cost of solar and wind energy technologies. Renewable energy including solar power on the roof now provides about 27% of the annual electricity.
Even though Covid-19 was under lockdown, electricity use fell only 0.6% between February and November last year. But the amount of electricity generated by burning coal fell by nearly 8% in New South Wales and Queensland between late 2019 and late 2020.
Saddler said the NSW Electricity Infrastructure Investment Act, which is bypassing the state parliament in November and pledging to cover 12 gigawatts of new solar and wind power and 2GW of long-term storage, will be a significant development in managing the switch to variable renewable energy.
Cboundary changes are full of surprises. We were warned of heat waves, storms and firestorms of high intensity. What we don’t see coming is a cynical, cyclic economy of blackout bullshit. As climate impacts intensify, power grids filled with fossil fuel infrastructure collapse. The blackouts are usually caused by wind and sun – and are used to extend the life of existing fossil fuel generators. Opportunity costs increase, climate impacts worsen, and blackouts increase. It’s an accelerating spiral of death.
Last week Texas suffered blackout likely to be the worst on record in the US. Millions of people were without electricity for days, initially on a rough scale on par across eastern Australia it will be dark at once. The outburst of winter weather froze a vital component in power plants, the supply of gas was limited by frozen pipelines and, as a result, a third The state’s thermal power plant is offline (mostly gas). An unspecified proportion of wind turbines has been disabled due to ice sheet and low temperature shutdowns, but “gas and coal are actually the biggest culprits in the crisis”, Eric Fell, North American gas director at Wood Mackenzie, said. Bloomberg.
Regardless, the windfarm is to blame. “Cold weather freezes Texas wind energy due to deep freezes gripping large parts of the US,” was one Reuters title. “Turbine Frozen and Soaring Demand Rolling Outages in Texas”, write The New York Times. “The windmill froze, so the power grid went out,” said Tucker Carlson of Fox News. Fox to blame renewable energy for 128 blackouts for two days. The governor of Texas, Greg Abbott, said: “This shows how the Green New Deal is going to be a deadly deal.” He joined Republicans Ted Cruz, Dan Crenshaw and Lauren Boebert, each of which took advantage of the crisis to attack renewable energy (most of them in receive the end of the tantalizing numbers of the fossil industry).
The narrative is confusing. Image of a helicopter cleaning a wind turbine (taken from 2015 test in Sweden) first wrong served as if in Texas. They are simultaneously frozen but also released by helicopters (how ironic!). The details don’t matter; the goal is to fill in the initial information gaps with imagery and narrative arrangement words.
It’s a record-by-record repeat of 2016 goes out in South Australia, where statewide power supplies were cut off during a devastating storm. That event soon to blame about wind power by conservative politicians and media. Despite the role of the wind in the sequence of events associated with the soon-to-be fix software setup, it was presented as proof that technology would bring darkness to Australia, as I write in my book that delves into the technical, cultural, and political details of that pivotal moment.
Since then, South Australia’s renewable energy growth has been slow but steady next. Clean energy has been reduced from 40% to 60% of generation, and the remaining gas fleet is shrinking. And the Australian market operator has published scenario examine how the country can grow to around 90% without impacting on reliability:
These steps are impressive but at the national level too slow to achieve grid emissions subtraction aligned with the 1.5C target – essentially, near zero emissions electric power by around 2030.That goal requires coal and gas power plants to shut down properly before their scheduled retirement age; conversation that was still plagued by a terrifying blackout. Meanwhile, the Australian coal and gas plants are located failed simultaneously during an increasingly intense heat wave.
Even the prospect of closing coal plants on time is being challenged reason that it would cause a South Australian-style blackout. The Australian prime minister threatened to build a 1,000MW gas-fired power plant that uses public money as a kind of punishment for being deemed to lack strong power, even though it belongs to the network operator forecast confirming that new renewables will more than offset factory closings. Even though Australia’s renewable industry is making step, investation slow down. Unless 2016 baggage is removed, decarbonization will be limited in rate.
The era of blackout bullshit is a clamping movement of worsening climate impacts on the one hand and aging fossil infrastructure on the other, with a firestorm of pro-fossil misinformation burning through conservative media and algorithmically reinforced social networks. Climatic impact amplifiers, such as the collapsing network below deregulation and the free market ideology, don’t get the fame they deserve. The technical details of wind and solar integration are ignored. It was a wall of exhausting and unstoppable noise.
US renewable sector, backbone from Biden’s 100% clean electricity plan by 2035, could end up struggling on an already steep hill plagued by a campaign of frequent and aggressive blackouts. “We can’t have another Texas” would be his cry. Malcolm Turnbull’s “Blackout bill [Shorten]”Can be used again for Biden.
It can be avoided. The benefits of renewable energy must be widely shared extensively, through programs such as community ownership and investment. Climate profession it has to be real, rich, and diverse. Deeper efforts to combat misinformation, including from traditional media, must be undertaken. And climate resilience must be incorporated into any transition plans. Decarbonization must proceed more rapidly, and can, with full awareness of the threat of the fossil fuel death spiral.
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.
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
MILAN, Feb 19 (Reuters) – Italian energy group Eni’s fortunes picked up in the last quarter of this year as firmer oil prices after “a year like no other” saw full-year profits fall.
Adjusted net income for the fourth quarter was 0.66 billion euros ($ 798 million), down 88% on the year but beating analyst expectations for a 0.04 billion euro loss.
But for the full year, it reported a loss of 742 million euros compared to a gain of 2.876 billion euros in 2019 after what Eni Chief Executive Claudio Descalzi said was “a year unlike any other in the history of the energy industry”.
The unprecedented drop in demand triggered by the COVID-19 pandemic saw big European rivals Shell and BP as well as big US companies Exxon Mobil and Chevron report heavy losses for the year.
Eni’s shares fell sharply last year, hitting their lowest level in a quarter century as the health pandemic rocked oil markets.
In the fourth quarter production fell 11% to 1,713 million barrels of oil equivalent per day but the company said full-year production was on target.
Like its competitors, Eni has cut its investments to offset the impact of the pandemic and spent 35% less last year at 5 billion euros.
Adjusted cash flow for the year fell to 6.7 billion euros compared with guidelines for 11.5 billion euros on Brent oil prices of $ 60 per barrel.
“By taking advantage of the actions we took, our adjusted cash flow for 2020 … was able to finance our capex, with a surplus of 1.7 billion,” said Descalzi.
The companies, which said they were well-equipped to deal with this year’s uncertain trading environment with liquidity of around 20.4 billion euros, confirmed a 2020 dividend of 0.36 euros per share.
In a note, Royal Bank of Canada said Eni remains one of the more leveraged names among integrated oil companies.
“We see Eni’s aggressive strategy around the energy transition as posing a risk to shareholders from time to time,” he said.
Eni, like other European peers, is cleaning up his business as investors increase pressure on the oil and gas sector to fight climate change.
It will release its new business plan on Friday.
By 1019 GMT Eni’s shares were down 1.1%, while the European oil and gas index was down 0.5%.
($ 1 = 0.8271 euro)
Additional reporting by Stefano Bernabei; Edited by Edmund Blair and David Evans