Daily Energy News
Policy & Regulatory
China plans to cap coal-fired power capacity at 1,100 GW by end-2020
19 Jun 2020China intends to cap its coal-fired power capacity at 1,100 GW and the number of coal mines at 5,000 (down from 5,268 in late 2019) by the end of 2020. According to the National Development and Reform Commission (NDRC), the country seeks to eliminate outdated power coal-fired power units and small coal mines. Production by large-scale coal mines should reach 96% of the country’s total output.
Read moreIndia initiates auction process for 41 commercial coal mines
19 Jun 2020India has launched the auction process of 41 coal blocks for commercial mining. The mines will require an investment of around INR300bn (US$3.9bn) over the next five to seven years and should reach peak production of 225 Mt, accounting for 15% of the country’s total coal output in 2025-2026. Four projects have been identified and could gasify around 100 Mt of coal by 2030 at a cost of INR200bn (US$2.6bn).
Read moreNew Zealand reforms its GHG emissions trading scheme
18 Jun 2020The New Zealand Parliament has approved the Emissions Trading Reform Bill, which will introduce a cap on the total greenhouse gas (GHG) emissions allowed within the Emissions Trading Scheme from 2021. The government proposed to cap the country’s emissions at 354 MtCO2eq over 2021-2025, with a limit of 160 MtCO2eq for industries covered by the ETS.
Read moreIndonesia delays production start-up of palm oil-based diesel to 2026
18 Jun 2020Indonesia, which planned to start producing diesel made entirely from palm oil in 2023, has delayed the target to 2026. The so-called “green diesel” is prepared by refining fossil crude oil and palm derivatives (fatty acid methyl ester, or FAME) together and the state-owned oil and gas corporation Pertamina is building refineries to process palm oil directly to fuel.
Read moreCompanies
Australian renewable producer Infigen supports Iberdrola’s takeover bid
19 Jun 2020Spanish energy group Iberdrola has made an US$841m bid to take over Australia’s largest renewable power producer Infigen Energy. The offer is supported by a Pre-Bid Agreement entered into with Infigen’s largest shareholders and Infigen has recommended its shareholders to accept the offer. Earlier in June 2020, UAC Energy proposed US$777m to take over Infigen. The Australian company owns 670 MW of wind power capacity, and has 268 MW of highly valued firming assets and an additional 246 MW of contracted renewables capacity through offtake power purchase agreements (PPAs).
Read moreEnergy & Climate Markets
Russia renews Sakhalin Energy hydrocarbon licences for 5 years
19 Jun 2020Russia has extended for five years Sakhalin Energy oil and gas production licences, which were due to expire in May 2021. Sakhalin Energy, the joint venture of Gazprom (50%), Shell (27.5%), Mitsui (12.5%) and Mitsubishi (10%), has secured permits to further develop the Piltun-Astokhskoye and Lunskoye oil and gas fields in the Sea of Okhotsk, off the eastern island of Sakhalin, until 19 May 2026. The initial licences were issued to the company in May 1996 for a 25 year period.
Read moreTunisia’s STEG extends gas supply agreement with Algeria until 2027
19 Jun 2020The Algerian national oil and gas company Sonatrach and the Tunisian Company of Electricity and Gas (STEG) have renewed their gas sales and purchase agreement (SPA) for eight years, until 2027, with an extension possibility for two additional years. In addition, the agreement includes a 20% increase in the contractual volume from 2025 in order to accommodate the expected increase in consumption. The initial contract was signed in 1997. Over the period 2016-2019, as part of the deal with Algeria, the STEG agreed to import 2.5 bcm/year of natural gas from Sonatrach.
Read moreForecasts
Denmark must implement extra measures to achieve its GHG emissions target
19 Jun 2020According to the Danish Energy Agency (DEA), without new measures, Denmark will fall short of meeting its Climate Act target to cut greenhouse gas (GHG) emissions by 70% by 2030 compared with 1990 levels, reducing emissions by only 44% by 2030. In December 2019, the Danish parliament adopted a new Climate Act with a legally binding objective to reduce GHG emissions by 70% by 2030 (compared to the 1990 level). Consequently, Denmark will have to cut GHG emissions by an additional 26 points, or 20 MtCO2eq, by 2030.
Read moreInfrastructure & Investments
Rosatom, Framatome and GE team up for Belene nuclear project (Bulgaria)
19 Jun 2020Rosatom, Framatome (former Areva) and General Electric (GE) have signed a Memorandum of Understanding (MoU) to work together to participate in the tender for the construction of 2 GW Belene nuclear power project in Bulgaria. As part of the agreement, if Rosatom is selected by Bulgaria to become a strategic investor, Framatome and General Electric would supply equipment for the plant. The €10bn project should be developed by a special company, in which the national electricity company NEK (Natsionalna Elektricheska Komapania) should own a stake.
Read morePattern Energy (US) acquires 1 GW New Mexico wind power project
19 Jun 2020The US power group Pattern Energy has completed the acquisition of the 1 GW Clines Corners wind power project in New Mexico (United States) from Orion Wind Power Resources, a joint venture of Orion Renewable Energy Group and Map Energy. The company plan to connect the 325 MW southern part of the wind project to its 1,050 MW Western Spirit power transmission line, which is expected to be commissioned in 2021. The remaining 650 MW part will be connected to the the SunZia transmission line, which will be built from 2022.
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