Decarbonisation

Share to Twitter Share to Linkedin But how might transition metals markets cope? Authored by Robin Griffin, Anthony Knutson and Oliver Heathman in Wood Mackenzie's metals & mining team. By 2050 the energy transition could see nickel (Ni) demand triple, copper (Cu) demand more than double, and demand for Lithium chemicals grow 700%. The burden on miners of transition metals will be immense and the industry will be transformed as investors scramble to deliver the necessary metal. For battery raw materials in particular there will be a reliance on deposits that are as yet undefined. Lithium is a prime example. There is plenty of uncertainty around the costs of extraction at known Lithium projects, let alone the millions of tonnes of Lithium required from unexplored sources, some of which will rely on untested technologies. Add in the likelihood of global carbon prices and you can understand why long-term pricing for Lithium and other energy … [Read more...] about The Energy Transition Will Transform The Mining Industry.

Share to Twitter Share to Linkedin The Inflation Reduction Act (IRA) has transformed the US from laggard to leader in energy transition policy – but greater clarity in some areas will be essential to prospective investors Authored by David Brown , Director, Energy Transition Service at Wood Mackenzie The Inflation Reduction Act (IRA) is an energy transition policy game-changer for the US. But now the initial furore has died down the next phase – leveraging the IRA to realise President Biden’s net zero vision – must ramp up. It’s a mammoth undertaking. Our analysis of a net zero outcome for the US requires US$10 trillion in investment through 2050. And additional guidance from the Biden administration is needed to see the IRA truly jump-start that investment. So, what are the key steps that could optimise the huge potential of this landmark policy change? Where is greater clarity needed to create optimal conditions for investors? 1. CCUS … [Read more...] about Maximising The Inflation Reduction Act: Four Things To Watch

The Ukraine-Russia war has taken its social and psychological toll. (Illustration by Suneesh K.) In over a year since Russia attacked Ukraine in February 2022, the global energy market witnessed high volatility in prices and unprecedented disruptions in supply chains, forcing countries to look towards alternative sources of energy to ensure energy security. Moreover, with weather patterns across the globe changing, countries across the world are making a stronger commitment to reduce the use of what is described as the “dirtiest fuel” by climate change activists—coal. But the global energy crisis triggered by the Russia-Ukraine conflict resulted in renewed interest in coal in countries from Europe to Asia. Have we regressed on the global energy transition agenda? Energy experts consider this only a blip; in fact, they believe that this “unprecedented energy crisis” has given a big push to energy transition policies across the world. “Nuclear power is making a comeback and, … [Read more...] about Russia-Ukraine conflict pushed countries to look at alternative fuel for energy security in the long term

Share to Twitter Share to Linkedin Engineering business Weir Group pulled the FTSE 100 index higher in midweek business following the release of better-than-expected full-year results. Weir — which primarily manufactures hardware for commodities producers — was trading 7% higher on Wednesday at £20.35 per share. The Glasgow business said that revenues rose 28% year-on-year, to £2.47 billion. Adjusted operating profits leapt 33% to £395 million. On a statutory basis pre-tax profits increased 24% to £260 million. Weir’s bottom line was boosted by a 70-basis-point improvement in adjusted operating margin, to 16%. This reflected a shift in revenue mix at its mining division towards aftermarket sales, it said, as well as underlying operational efficiency and the successful mitigation of inflationary pressures. Elsewhere, free operating cash conversion improved to 87% in 2022 from 63% a year earlier. However, net debt rose by £24 million year on year … [Read more...] about Weir Group Leads FTSE 100 Higher As 2022 Profits Beat Forecasts

Hydrogen is a less economic, more resource-intensive method of heating than alternatives such as heat pumps and solar thermal. Hydrogen is one of the most abundant gases, estimated to make up 75 percent of the mass of the universe. It also has great potential to help the world slash greenhouse gas emissions, since it doesn’t produce any carbon dioxide (CO2) emissions when it’s burned for energy. Yet its use has been limited thus far. That’s set to change in the UK over the next couple of years. Under proposed plans drawn up by National Gas, which owns and operates the UK’s 7,630-kilometer (4,760-mile) natural gas transmission network, between 2 percent and 5 percent of the fuel running through the pipelines could be hydrogen by 2025. The plans have not yet been approved by the government. But other countries, including Norway, are also exploring hydrogen blending. Considering 77 percent of Britain’s gas imports come from Norway, it’ll need to be ready to receive blended gas. … [Read more...] about Climate change: Hydrogen isn’t the cleanest way to heat our homes

An aerial view of palm oil plantations in Merang during an aerial tour of the Sumatran forest taken by Greenpeace and South Sumatra Governor, Alex Noerdin on December 10, 2010 in District Musi Banyuasin, Palembang, South Sumatra, Indonesia. (Photo by Ulet Ifansasti/Getty Images) Did we just … win ? It’s certainly sounding that way. Emissions from fossil fuels — the key driver of global warming since the dawn of the industrial era — are set to peak within two years, according to Rystad Energy, an oil and gas consultancy. Carbon pollution from electricity, the sector with the biggest footprint, will never again hit the levels it reached last year, the International Energy Agency said February 8. That’s a remarkable and somewhat unexpected achievement. Predictions of large-scale decarbonisation are “the academic equivalent of science fiction,” Vaclav Smil, Bill Gates’s favorite energy thinker, argued last year . Exxon Mobil Corp. still expects petroleum demand to be … [Read more...] about Fossil fuel emissions may peak in two years but the fight against climate change is just beginning

Representative image (Source: ShutterStock) On February 1, finance minister Nirmala Sitharaman allocated capital investment worth Rs 35,000 crore towards energy transition and achieving India’s goal of net zero carbon emissions by 2070. An additional Rs 19,700 crore was sanctioned for the government's National Green Hydrogen Mission. India views green hydrogen as a key decarbonisation tool and plans to increase its production to 5 million tonnes annually by 2030, entailing the setting up of at least 125 GW of renewable energy and significant electrolyser manufacturing capacity. Hydrogen is a clean fuel with no carbon emissions at the end-use stage. However, producing hydrogen from fossil fuels adds to the carbon footprint. The target is to produce green hydrogen from electrolysis of water using green or renewable energy, which has no carbon emissions. This will result in virtually zero emissions during generation and end use. G20 Sherpa Amitabh Kant said India has the … [Read more...] about Green hydrogen: Prominent names set to benefit from government push

(Representative image) American private equity giant KKR and Hero Group have agreed to invest $450 million in Hero Future Energies (HFE), the renewable energy arm of the Indian company, the two sides said on September 20. The investment would position HFE for continued growth and also support its efforts to expand its renewable energy capacity and capabilities across technologies such as solar, wind, battery storage, and green hydrogen, and into new markets over time, a press release said. Also Read | KKR in advanced talks to invest $400 million in Hero Future Energies: Report “HFE’s clean energy solutions play an important role in helping companies decarbonise as energy demands continue to grow. We look forward to working closely with HFE’s management team and existing investors, including the Hero Group and IFC, to help HFE achieve its next phase of growth and contribute to the energy transition efforts in India and globally,” Hardik Shah, Partner at KKR, said. … [Read more...] about KKR, Hero Group to invest $450 million in Hero Future Energies

Lithium is used in electric vehicle (EV) batteries India needs investments to the tune of Rs 33,750 crore to achieve the government PLI target of setting up 50 GWh of lithium-ion cell and battery manufacturing plants, according to a study. The country requires up to 903 GWh of energy storage to decarbonise its mobility and power sectors by 2030, and lithium-ion batteries will meet the majority of this demand, an independent study released on Tuesday by the Council on Energy, Environment and Water (CEEW) said. "India needs investments worth up to Rs 33,750 crore (USD 4.5 billion*) to achieve the government PLI target of setting up 50 GWh of lithium-ion cell and battery manufacturing plants," CEEW said in the study report. CEEW, however, noted that at the time of writing the report, the conversion rate was taken as Rs 75 per US dollar. The CEEW study 'How can India indigenise lithium-ion battery manufacturing?' calculates the material and financial requirements and offers … [Read more...] about India needs Rs 33,750 crore to achieve PLI target of setting up 50 GWh of lithium-ion cell, battery manufacturing plants: Study

Finance Minister Nirmala Sitharaman delivers her fifth Budget. The Budget 2023-24 did not offer metal companies any new giveaways, maintaining the status quo on duty and tax structures for raw material sourcing. Increased infrastructure spending, however, was positive for demand. “To facilitate the availability of raw materials for the steel sector, exemption from Basic Customs Duty (BCD)  on raw materials for the manufacture of CRGO Steel, ferrous scrap and nickel cathode is being continued,” Finance Minister Nirmala Sitharaman said on February 1 while presenting the Budget . Follow our live blog for the latest Budget 2023 updates “Similarly, the concessional BCD of 2.5 percent on copper scrap is also being continued to ensure the availability of raw materials for secondary copper producers who are mainly in the MSME sector.” The industry was expecting some clarity on decarbonisation initiatives for the steel sector, including definition of "green steel". The budget … [Read more...] about Budget 2023: Lacklustre event for metals sector, duties unchanged