According to the central electricity authority (CEA), 101 coal-based power plants with total capacity of about 121 GW (giga watts) had less than eight days’ stock of coal with 22 power plants with total capacity of over 27 GW had less than one day’s stock of coal on 24 October 2021. Out of the 101 plants with critically low coal stocks, two pithead plants had coal stock of less than five days (against normative stock of 15 days) and another three had coal stock for less than three days. Amongst non-pit head plants, 37 plants had coal stock for less than seven days and 49 plants had coal stock for less than four days (against normative stock of 20–25 days). Amongst non-pithead plants that were more than 1,500 kilometres (km) away from coal mines, two had stocks for less than nine days and eight had stocks for less than five days (against a normative stock of 30 days). What this indicates is that coal stocks in power plants accounting for over 70 percent of coal-based power generation capacity were in a critical or supercritical state on 24 October 2021.
Incidental causes
Amongst the incidental reasons offered by power plants with critical coal stocks are that supply of coal was lower than expected. This could be because late monsoon rains affected both production of coal as well as the transport of coal. Other causes for low coal stocks in power plants include higher demand for domestic coal under the ‘self-reliance’ policy of the government that increased demand for domestic coal. The price arbitrage between domestic and internationally traded coal was significant enough to push demand for domestic coal even from power plants that generally relied on imported coal. Revival of the economy and the consequent increase in demand for power following the end of lockdowns are the other causes that explain the coal stock crisis. In July 2021, peak demand for power touched an all-time high of 200,570 MW exceeding the pre-COVID 19 peak demand (182,533 MW) by over 9 percent. Power demand has shown an increasing trend since the end of the first wave of the pandemic and has picked up again after a brief fall during the second wave of the pandemic.
Structural Causes
The crisis in the coal sector predates the COVID‐19 pandemic but the epidemic amplified it. Coal‐fired power plants had to bear the brunt of the lock-down induced decline in electricity demand in 2020, with solar PV (photovoltaic) and other renewable energy (RE) sources retaining priority access to the grid, and gas‐fired power generation experiencing an uptick on the back of record low international LNG (liquid natural gas) prices in the spring and summer of 2020. The plant load factor (PLF) of thermal plants fell from a high of 64 percent in April 2019 to about 42 percent in April 2020. Increased cycling of thermal plants to accommodate variable RE generation of power tested technical minimum load factors. This was a real come down for thermal plants that enjoyed PLFs in the range of 75-80 percent in the early 2000s. Annual investment in coal in the power sector fell from a peak of US $28 billion in 2010 down to US $11 billion in 2019 and is projected to fall further in the coming decades. In January 2021, the government announced that public sector and private firms will invest INR 4 trillion in the coal sector in the current decade. According to the government, the coal sector would be the largest contributor to India’s US $5 trillion economy target. The expected investment in the coal sector may or may not materialise but if it does, it will still be much lower than peak investment made in 2010.
Another structural issue that was behind the coal stock crisis is the irrational exuberance over the ability of RE, particularly solar, to meet varying demand for electricity. The share of coal in power generation in India has remained at around 70 percent since the 1990s, notwithstanding the support offered to investments in RE. The tremendous growth in RE has tempered growth in coal capacity, but not prevented it. Between 2012 and 2021, RE capacity additions grew at an average of over 17 percent compared to about 7 percent of coal capacity additions. In the same period, thermal generation increased by over 7 percent and RE generation by about 13 percent. Electricity generation from RE displaced thermal generators but it has done little to defer the need for capacity from those generators due to low correlation between RE production and peak demand in India. According to detailed studies, RE in India avoids far less thermal capacity than RE in other regions in the world.
Issues
Under the current strategy of a dominant share for solar, the cost of CO2(carbon dioxide) mitigation is found to be greater than or equal to estimates of the social cost of carbon (SCC). CO2mitigation costs are found to be lower if India undergoes rapid urbanisation and its national demand profile becomes increasingly similar to that of Delhi’s and Mumbai’s. This is because Delhi’s and Mumbai’s demand profiles are better correlated with RE generation across all mixes and targets, resulting in more new conventional capacity avoided by RE and less curtailment. But in such a future, peak demand is estimated to be higher requiring an increase in new thermal generation capacity. Ironically, if India experiences a lower growth rate of demand for electricity, total CO2emissions are lower, but costs of mitigating CO2emissions are higher because of greater RE curtailment. Even at this lower demand, new coal and gas capacity is required to meet peak demand, because of the low-capacity value of wind and solar. Though there is ideological preference for solar amongst policymakers and the people, it is probably worthwhile to objectively analyse the appropriate composition of conventional and RE capacity for power generation and allocate financial and policy attention proportionally.
Monthly News Commentary: NON-FOSSIL FUELS
Big players sign up for Solar Manufacturing
India
Solar Manufacturing
RIL will invest INR 750 bn (US $10.03 bn) over the next three years to set up four renewable energy giga factories in Jamnagar, Gujarat. The complex will have four giga factories, covering the entire spectrum of renewable energy. The first will be an integrated solar photovoltaic module factory. The second will be an advanced energy storage battery factory. The third will be an electrolyser factory for the production of green hydrogen and the fourth will be a fuel-cell factory for converting hydrogen into motive and stationary power. The rapid fall in the cost of production had made solar energy highly competitive, attracting large-scale investments and this would play a key role in ensuring similar growth trends for hydrogen. The company has set a target to become a net-zero carbon firm by 2035 and has announced a roadmap for its New Energy Business this year. Of India’s 450 GW renewable energy capacity target by 2030, the company will establish and enable at least 100 GW of solar energy by 2030. The company is of the view that this would create millions of new and high-value green jobs, will give a big boost to green enterprises in India, and transform India from an importer of fossil energy to an exporter of clean energy.
Reliance Industries Ltd (RIL), Tata Power, Adani Solar, Acme Solar and Vikram Solar have bid for contracts under the production-linked incentive (PLI) scheme for solar modules. Large companies are evincing interest and are expected to commit end-to-end solar manufacturing. The union cabinet had in April approved the PLI scheme for manufacture of high efficiency solar photovoltaic module with a INR 45 bn (US $602 mn) outlay. The incentives are expected to add 10 GW of high efficiency integrated solar PV manufacturing plants and bring direct investment of around INR 172 bn (US $2.3 bn) in solar PV manufacturing.
COP 26 signals
With India is exploring multiple options to lower its carbon footprints, the Indian government said the country would produce three times more nuclear power from its current level and called for greater India-US (United States) cooperation for clean energy sectors such as biofuels and hydrogen. The move will help India substantially increase its share of non-fossil fuel in total energy mix in sync with its pledges under the Paris Agreement. Though India’s share of installed capacity of non-fossil fuel-based electricity generation has already reached nearly 39 percent of its total power generation capacity against its existing target of 40 percent by 2030, the step towards nuclear energy would help it upgrade its climate action goal.
According to a new study by the Climate Trends and the Riding Sunbeams, direct supply of solar energy to Indian Railway lines, without the need to connect through the grid, would save almost 7 million tonnes (mt) of carbon a year while also powering at least one in four trains on the national network on competitive terms. According to the annual report of Indian railways 2019-2020, there was a passenger traffic of over 8 billion in that period, which would mean that 2 billion passengers could be travelling on trains directly powered by solar energy. The new analysis highlights that around a quarter of this new solar capacity — up to 5,272 MW— could be fed directly into the railway’s overhead lines instead of being procured over the electricity networks, reducing energy losses and saving money for the rail operator. The researchers found that substituting energy supplied from the coal-dominated grid for private-wire supply from solar could also rapidly cut emissions by as much as 6.8 mt carbon dioxide (CO2) each year — just over the entire annual emissions of Kanpur. The researchers also warned, however, that achieving the target of full electrification of all routes by 2023 could be accompanied by an increase in CO2emissions in the short term because of India’s current reliance on coal to produce electricity.
RE Policy and Market Trends
The Draft Electricity (promoting renewable energy through Green Energy Open Access) Rules, 2021, announced by the Ministry of Power, if implemented, could improve the certainty of cash flows for new renewable energy projects coming up through this route according to CRISIL Ratings. Considering that commercial and industrial (C&I) consumers account for almost 50 percent of all power consumption in India, and have their own go-green initiatives, the open access route can support likely strong demand pull from these consumers. In India, power distribution happens through three modes – state distribution companies, captive sources and open access. Under the open access route, which had a total installed capacity of about 11 GW as on 31 March 2021, renewable power producers sell electricity directly to C&I consumers.
Union Ministry of New & Renewable Energy met its Danish counterpart where both agreed on further engagement in renewable energy, especially offshore wind and green hydrogen. Indian government recently has set a target of 450 GW of renewable energy capacity by 2030. Both sides agreed to further their cooperation in renewable energy with a focus on offshore wind energy.
Roof Top /Distributed Solar Projects
India added 521 MW (megawatt) of rooftop solar in the second quarter (Q2) of calendar year (CY) 2021, a 53 percent quarter-on-quarter (q-o-q) increase compared to 341 MW installed in Q1 2021, according to the report titled ‘India Rooftop Solar Market Report Q2 2021’. According to the report, rooftop solar installations were up 517 percent year-on-year (y-o-y) compared to the 85 MW installed in Q2 2020. According to the report, this quarter’s installation numbers were skewed due to a large amount of residential rooftop solar capacity commissioned in Gujarat. The report said that in the first half (1H) of 2021, 862 MW of rooftop solar capacity was added—a 210 percent increase compared to the same period of last year. According to the report, at the end of Q2 2021, cumulative rooftop solar installations reached 6.1 GW.
Eastern Coalfields Ltd (ECL), a subsidiary of Coal India Ltd (CIL), has commissioned a 250 kilowatt (kW) rooftop solar power project, ramping up its total installed solar rooftop capacity to 692 kW. The implemented through the Solar Energy Corporation of India (SECI), the newly installed 250 kW plant set up at ECL’s headquarters in Sanctoria for captive consumption, has an average generation of 365,000 kWh per annum. The previously installed 442 kW capacity rooftop solar power projects are spread across ECL for consumption in hospitals, area offices and guest houses. Average annual generation from these solar projects is 645,000 kWhs. With installation of the recent project, ECL’s total solar generation has jumped to 1.010 million kWh. CIL is serious in its intent to pursue solar power generation as an alternative green energy source and has laid out plans to install 3,000 MW solar power by 2024.
A solar rooftop power plant will be set up in the Goa legislative assembly complex in Porvorim. Goa Energy Development Agency (GEDA) has invited tenders for design, supply, installation, testing and commissioning of the power plant, including operation and maintenance for five years. The 40 kWp grid-connected solar rooftop power plant will be set up on the third floor of the secretariat building at a cost of INR 3 million. The grid-connected rooftop solar power plant will be connected on net metering basis, where the surplus power generated by the building will be supplied back to the power grid. Several state and central government departments, agencies and educational institutions have also set up solar power plants including GEDA, Goa University, PWD offices, NIT, MPT, and Raj Bhavan, among others.
AMP Energy India has inaugurated its 2.4 MW solar power plant at Pondicherry University. The project is one of the largest solar power plants at a central university in the country. It is spread over 15 buildings, 2 car parks and 2 land parcels in the university campus. The plant would be instrumental in supplying solar energy to meet about 40 percent of the university’s energy needs. By adopting solar power, Pondicherry University will benefit from reduced energy costs and will contribute to reducing emissions of around 2,900 tons of CO2every year. The project has been developed under the 97.5 MW rooftop scheme by SECI. Pondicherry University and Amp Energy India have signed a Power Purchase Agreement (PPA) under this scheme for procurement of solar power for 25 years.
Power consumers, especially those from housing societies in Navi Mumbai and Thane, have demanded that MSEDCL avail of Central subsidy up to 40 percent on solar rooftop panel installations, which it can pass on to consumers who can then save INR800-2,400 in bills every month. BEST, Adani Electricity and Tata Power announced this scheme for their consumers in Mumbai. The subsidy is an initiative of the Union ministry of renewable energy and is being availed by most states. However, MSEDCL, which supplies electricity to the largest base of consumers – over 26 million in Maharashtra – is yet to avail of the subsidy. Residential consumers can opt for a minimum 1 kilowatt peak (kWp) solar panel, which will generate 1,400-1,500 kWh annually. For instance, if you generated 125 kWh in solar power in a month, and consumed 300 kWh a month, you pay for 175 kWh (300 minus 125). Savings could be INR800-INR2,400 a month, depending on 1-3 kWp of solar panel installed. For 1 kWp, the actual cost is INR46,000, but 40 percent subsidy reduces it to INR27,600, all inclusive of GST, and related costs such as supply, installation, testing, commissioning and a comprehensive 5-year maintenance.
India’s first sea-going solar fishing boats will be ready by December 2021 at Vypeen and Munambam in Kerala. Funded by Shell Foundation, the charity arm of British-Dutch petroleum company, five boats are in various stages of development and the works are done by a startup named NavAlt Solar and Electric Boats. According to NavAlt, there are over 250,000 small fishing boats in India and 1.13 tonnes of CO2(carbon dioxide) are released/tonne of live weight of marine fish netted. Shell Foundation is supporting the project with INR50 mn (US $0.67 mn), which includes the cost of developing the boats as well as financing the buyers to cover the extra cost compared to a traditional boat. NavAlt made headlines when it launched a solar water taxi and the country’s first solar ferry in Kerala.
In a bid to ease the procedure for consumers interested in setting up grid connected solar rooftop power generating system, the Kerala State Electricity Board (KSEB) has decided to set up a single point of contact at the corporate office level. The board would also set up a user-friendly, convenient and transparent web portal for solar rooftop applications so that applicants can monitor the status of their requests without any difficulty. The decision to set up a single point of contact for the rooftop solar installation scheme is one of the first set of consumer-friendly initiatives being adopted by the electricity board. The board has been receiving good response from consumers for setting up the grid connected solar plant.
Utility Scale Solar Projects
India added 2,488 MW of solar in the Q2 of the calendar year (CY) 2021, a 19 percent increase quarter-over-quarter, compared to 2,090 MW installed in Q1 2021, according to the report by Mercom India Research. It said that solar energy’s share of new power capacity additions was the highest ever in the first half of any year. It said that in the H1 of 2021, India added 4,578 MW of solar, a 251 percent increase compared to the same period previous year. Installations exceeded 3.2 GW of solar installed in all of CY 2020. According to the report, installations were significantly higher than the previous quarter despite various state level lockdowns because of the second wave of COVID-19. The report has increased its forecast by 23 percent in the medium-case scenario to about 8 GW to 9 GW in 2021. It said that by the end of Q2 2021, cumulative solar installations stood at 43.6 GW. According to the report, solar’s share of new capacity additions was the highest ever in the H1 of any year, accounting for 53 percent of all power capacity added in 1H 2021 while renewables made up about 71 percent of capacity additions in the H1 of 2021.
The Puducherry government has signed a power sale agreement with NTPC Ltd to purchase 100 MW solar power from its proposed solar power plant at Nokh in Rajasthan. The government had already signed a power sale agreement with SECI to purchase 140.64 MW wind power.
The government is eyeing to build a global showstopper in Ladakh by raising the capacity of the proposed mega solar power project to 10,000 MW along with a 5,000 MW battery storage and 3,000 MW wind farm. But the plan continues to stumble over land issues. The original blueprint envisaged a photovoltaic set up of 7,500 MW capacity split in roughly 70:30 ratio between Leh and Kargil districts, respectively. But the topography of Zanskar region of Kargil, where a packet of 2,500 MW was to be built, was found unsuitable for the transmission line. So the entire project was shifted to the Leh district with packets of 5,000 MW each in Hanle-Khaldo and Pang regions.
The state cabinet cleared two solar power projects that will be set up by Maharashtra State Power Generation Corporation (Mahagenco). The cabinet approved raising of funds for the projects — one of 187 MW and another of 390 MW. The project financing agreement for the 187 MW solar project was approved and a loan of up to INR5.88 bn (US $78.6 mn) will be taken from KFW-Bank, Germany. The agreement for these projects was approved on behalf of the state government, in coordination with the central government and with the consent of the finance department. Similarly, for the 390 MW solar power projects, a loan of INR15.64 bn (US $209 mn) at an interest of 0.05 percent per annum was approved to be taken from KFW Bank, Germany.
ReNew Power has commissioned 250 MW capacity of its interstate transmission system solar generation project in Jaisalmer, Rajasthan. It will provide clean energy to Bihar at a rate of INR2.55/kWh and direct employment to about 600 people. The project has a total generation capacity of 300 MW which was won by ReNew Power in tranche-III of the competitive auction conducted by the SECI. According to the company press, the remaining 50 MW capacity is expected to be commissioned by the end of this month.
Tata Power’s wholly-owned subsidiary, TP Saurya, has received a Letter of Award from Rewa Ultra Mega Solar to set up a 330 MW solar power project in Neemuch Solar Park, Madhya Pradesh. The project has been awarded through tariff-based competitive bidding followed by e-reverse auction. With this, the total renewable capacity of Tata Power will reach 4,361 MW with an installed capacity of 2,947 MW and 1,414 MW under implementation.
Research & Development
The researchers at the Indian Institute of Technology (IIT) Delhi have designed a device that can generate electricity from water drops, raindrops, water streams, and even from ocean waves using the ‘triboelectric effect’ and ‘electrostatic induction’. The electricity generated by the device called ‘Liquid-solid Interface Triboelectric Nanogenerator’ can be stored in batteries for further use. As per a statement from IIT Delhi, the device consists of specially designed nanocomposite polymers and contact electrodes and can generate a few milliwatt (mW) power, which is sufficient to power small electronic devices like watches, digital thermometers, radio frequency transmitters, healthcare sensors and pedometers. When compared to conventional methods, such as the use of the piezoelectric effect, it can generate significantly more electricity. A research team of Department of Physics in IIT Delhi at the Nanoscale Research Facility (NRF), IIT Delhi, have been working on harvesting electrical energy from to be wasted mechanical vibrations using the triboelectric effect. The group has filed an Indian patent on the various aspects of the use of ferroelectric polymer for harvesting mechanical energy including the present device. The Ministry of Science and Technology and the Ministry of Electronics and Information Technology have supported the research work under the NNetRA project. The IIT Delhi research team also explored the underlying mechanism of the electricity generated when the water drop comes in contact with the solid surface and it was found that saline water drops generate more electricity.
Hydro Power
Power Finance Corporation Ltd (PFC) has signed a pact with NHPC Ltd to lend funds for the development of hydro projects. NHPC is engaged in the development of hydropower in India and has also diversified into solar and wind power. It also provides consultancy services to hydropower and renewable energy projects.
Wind Power
ONGC (Oil and Natural Gas Corporation) is eyeing generating electricity from wind at its vast offshore acreage as it looks to augment its renewable energy portfolio. ONGC has oil and gas fields both in the Arabian Sea and Bay of Bengal. That experience of operating in shallow and deep-sea is now being tapped to set up wind turbines to generate electricity that could be wired to land. Last year, ONGC signed an MoU (Memorandum of Understanding) with India’s largest electricity generator NTPC Ltd to explore setting up offshore wind projects along with the 7,600-km coastline. The government has set a target of 5 GW of offshore wind installations by 2022 and 30 GW by 2030. According to the company it is pursuing opportunities in the renewable energy field in India and abroad.
Biomass
The efforts by Kanjirangal panchayat in Sivaganga district to recycle daily waste to generate electricity has earned praise from Prime Minister Office. The project has helped to scientifically deal with the garbage generated by the panchayat and also help reduce its electricity bill. The plant was set up at a cost of INR65 lakh under National Rurban Mission. The plant grinds the wastes and converts it into biogas, which is subsequently used to generate electricity. Before work on the plant began, a meeting was organised with the villagers where they were asked to hand over biodegradable and non-biodegradable waste separately. As per the panchayat six battery operated vehicles are used to collect the biodegradable wastes for the plant from houses. Now these vehicles are charged using the electricity generated from the plant. Around 70-80 kg of biodegradable waste is collected from the panchayat daily. Apart from this, they receive waste from Sivaganga municipality and hotels situated in towns. Nearly 200 kg of wastes is collected per day for generating electricity.
Rest of the World
Asia
Indonesian coal miner PT Bukit Asam plans to build three solar power projects on former mine sites as part of its expansion into renewable energy. State-controlled Bukit Asam has set aside land in West Sumatra, South Sumatra and East Kalimantan provinces and at each location the company plans to develop solar plants of up to 200 MW.
Royal Dutch Shell plc’s subsidiary Sarawak Shell Berhad (SSB) has taken a final investment decision on the Timi gas development project offshore Malaysia, which will be powered by solar and wind sources. The offshore wellhead project, developed with its partners Petronas Carigali and Brunei Energy Exploration, could see peak production of up to 50,000 barrels of oil equivalent per day (boe/d) and will move gas to the F23 production hub via an 80 kilometre-long pipeline. The unmanned platform, about 200 km (124 miles) off the coast of Serawak, was a step towards Shell’s commitment to achieve net-zero emissions by 2050.
Middle East & Africa
The United Arab Emirates (UAE) has connected the second unit of its Barakah nuclear power plant to the national power grid. The plant in the Al Dhafrah region of Abu Dhabi, one of the seven emirates making up the UAE and the nation’s capital, is the first nuclear power station in the Arab world and part of the Gulf oil producer’s efforts to diversify its energy mix. The unit has produced its first megawatt of electricity free of carbon emissions. Barakah’s Unit 1 was connected to the national power grid in August 2020. When completed Barakah, which is being built by Korea Electric Power Corp (KEPCO), will have four reactors with 5,600 MW of total capacity – equivalent to around 25 percent of the UAE’s peak demand.
Iraq has signed an initial agreement with POWERCHINA to build solar power plants with a capacity of 2,000 MW. The first stage of the project will have a capacity of 750 MW. Power from Iraq’s main grid suffers year-round from hours-long cuts each day, but shortages worsen during the hot summer months when temperatures regularly reach 50 degrees and households rely on air conditioning.
USA & North America
The Biden administration plans to make federal lands cheaper to access for solar and wind power developers after the clean power industry argued in a lobbying push this year that lease rates and fees are too high to draw investment and could torpedo the president’s climate change agenda. Washington’s decision to review the federal land policy for renewable power projects is part of a broader effort by the government of President Joe Biden to fight global warming by boosting clean energy development and discouraging drilling and coal mining. The push for easier access to vast federal lands also underscores the renewable energy industry’s voracious need for new acreage. According to research firm Rystad Energy, Biden has a goal to decarbonise the power sector by 2035, a target that would require an area bigger than the Netherlands for the solar industry alone. Under that policy, implemented by the administration of President Barack Obama in 2016, some major solar projects pay US $971 per acre per year in rent, along with over US $2,000 annually per MW of power capacity. For a utility-scale project covering 3,000 acres and producing 250 MW of power, that is a roughly US$3.5 million tab each year. Wind project rents are generally lower, but the capacity fee is higher at US $3,800, according to a federal fee schedule. As per the Energy Information Administration, to date, the Interior Department has permitted less than 10 GW of solar and wind power on its more than 245 million acres of federal lands, a third of what the two industries were forecast to install nationwide just this year.
According to the office of the US Trade Representative (USTR), a WTO dispute settlement panel has rejected China’s challenges to the US (United States) safeguard tariffs on solar products. As per the USTR this is the first successful defense of the US – Safeguard Measure on Imports of Crystalline Silicon Photovoltaic Products. In early 2018, the US imposed the solar safeguard measure to support the domestic solar industry’s efforts to adjust to import competition primarily attributable to excess solar cell and module capacity by Chinese producers in China and around the world and exacerbated by China’s non-market practices. In July 2019, China requested the establishment of a WTO panel alleging that the US imposition of the safeguard was inconsistent with various obligations under the General Agreement on Tariffs and Trade 1994 and the WTO Agreement on Safeguards. The Panel rejected all of China’s claims. Specifically, the WTO Panel found that the US established that solar imports had increased as a result of unforeseen developments, established a causal link between increased imports and serious injury to the domestic industry, and appropriately considered other factors besides increased imports that were allegedly causing injury to the domestic industry.
According to the US Energy Information Administration, (EIA) the California Independent System Operator (CAISO) region plans to increase its solar and wind power capacity in 2021 to help meet the state’s target of 50 percent renewable generation by 2025. The CAISO plans to add an additional 1.6 GW of utility-scale solar capacity and 0.4 GW of onshore wind turbine capacity this year. CAISO is also planning to add 2.5 GW of battery storage capacity this year. California expects to lean more on fossil fuels in coming weeks to keep the power on if scorching heatwaves stretch its grid, demonstrating the challenges grids face by relying more on large amounts of wind and solar energy that only run when the wind is blowing, or the sun is shining.
Harvard University is ending its investments in fossil fuels, drawing praise from divestment activists who had long pressed the leading university to exit such holdings. The school’s endowment had no direct investments in fossil fuel exploration or development companies as of June and will not make such investments in the future, given the need to decarbonise the economy. Recently valued at about US$42 billion, the most of any university, the school’s endowment has been under pressure for years from students, alumni and other activists to sell off its fossil fuel holdings as a way to slow climate change.
EU & UK
The British government will announce the biggest round of its renewable energy scheme, hoping to build up enough extra offshore wind capacity to power about eight million homes. Under the so-called Contracts-for-Difference (CfD) scheme, qualifying projects are guaranteed a minimum price at which they can sell electricity, and renewable power generators bid for CfD contracts in a round of auctions. The scheme is part of Britain’s plans to cut emissions before it hosts the United Nations’ Climate Change conference, or COP26, in Scotland in November. The latest round provides 200 million pounds (US $277 million) to support offshore wind projects and 55 million pounds for emerging renewable technologies.
Deep in the Oman desert lies one of BP’s more lucrative projects, a mass of steel pipes and cooling towers that showcases the British energy giant’s pioneering natural gas extraction technology. The facility earned BP Plc more than US $650 million in profits in 2019. Yet the oil major agreed to sell a third of its majority stake in the project. The deal exemplifies a larger strategy to liquidate fossil-fuel assets to raise cash for investments in renewable-energy projects that BP concedes won’t make money for years. BP’s big bet is emblematic of the hard choices confronting Big Oil. All oil majors face mounting pressure from regulators and investors worldwide to develop cleaner energy and divest from fossil fuels, a primary source of greenhouse-gas emissions that cause global warming. That scrutiny has increased since early August, when the United Nations panel on climate change warned in a landmark report that rising temperatures could soon spiral out of control.
The Czech parliament approved a law setting the framework for aid to renewable energy projects, which industry players hope will restart a boom in green projects. The law sets rules for the development of renewable resources in the coming years when billions of euros will be available for investments from European Union (EU) programmes for modernisation. It also allows for auctions for new capacity. The Czech Republic is the EU’s third largest coal consumer. A government commission has set 2038 as the year for complete departure from coal as fuel in power plants, although the debate continues and experts expect high carbon prices may shut down coal power plants much sooner. The central European country gets 16 percent of its energy needs from renewables, and needs large investments to meet its share on the EU’s climate targets. The Czech Republic’s main power utility CEZ has pledged to slash the proportion of coal in its portfolio to 12.5 percent in 2030 from 36 percent last year, and invest billions of euros into renewables, mainly solar.
Energy group Eni and Atlantia’s airport unit Aeroporti di Roma (ADR) have signed an agreement to develop biofuel for aviation to fight climate change. Airports operators and airlines are under pressure to contribute to the EU’s goal to cut economy-wide net carbon emissions by 55 percent by 2030 from 1990 levels. In July, the European Commission proposed to force suppliers to blend a minimum of 2 percent of sustainable aviation fuel (SAF) into their kerosene from 2025, rising to 5 percent in 2030 and 63 percent in 2050. Eni has been converting its refineries in Italy to produce biofuels as part of its drive to become net carbon neutral by 2050. It produces Hydrotreated Vegetable Oil biofuel in its Venice and Gela bio-refineries using its own in-house technology and can also produce sustainable aviation fuel with the same technology from waste and plant-based raw materials. ADR would reach EU target of zero carbon emission in 2030, ahead of a 2050 target for European airports.
News Highlights: 22 – 28 September 2021
National: Oil
IOC launches smart LPG cylinders in Patna
27 September:Indian Oil Corporation (IOC) launched ‘Indane composite cylinders’ of liquefied petroleum gas (LPG), which will allow customers to plan their next refill easily. The fibre cylinders will have a transparent component for consumers to verify the quantity of LPG supplied, IOC said. While launching the composite gas cylinder for domestic use in Patna, Kumar described this as a big achievement for the country.
Source:The Economic Times
India’s Nayara Energy hopes to operate refinery at 100 percent in 2021
27 September:India’s Nayara Energy hopes to operate its 400,000 barrels per day (bpd) refinery in western India at close to 100 percent capacity in 2021 as fuel demand is picking up, Chief Executive Alois Virag said. Nayara, part owned by Russian oil major Rosneft, cut rates at its Vadinar refinery in Gujarat state last year. India’s fuel demand is likely to rise by 9-11 percent as the economy in India is “steered towards higher growth” after the easing of the second wave of COVID-19, he said.
Source:The Economic Times
Assam government failed victims of Baghjan oil well blowout: Congress
27 September:The Congress alleged that the BJP-led government in Assam has failed to keep its promises of compensation and rehabilitation to the people of Baghjan in Tinsukia district, more than a year after the area suffered major damages due to an oil well blowout.
Source:The Economic Times
India state refiners to buy more light crude to boost gasoline output
25 September:Indian refiners are gearing up to alter their crude oil import mix in favour of lighter grades that yield more gasoline to meet a surge in demand for the motor fuel in Asia’s third-largest economy, company officials and analysts said. Refiners in the world’s No. 3 oil importer and consumer will increase imports of gasoline-yielding crudes from the United States and West Africa, while cutting heavier sour grades from the Middle East that yield more middle distillates like diesel and kerosene, they said. The move dovetails with an earlier push to reduce India’s reliance on Middle Eastcrudes to enhance energy security. Indian refineries are designed to maximise diesel production mostly from Middle Eastern oil, as government-controlled prices made the middle distillate the preferred fuel for industries and trucking firms. But a narrowing price gap between gasoline and diesel, and a consumer switch to personal vehicles instead of diesel-powered public transport since the onset of the coronavirus, are helping to lift gasoline consumption. Credit rating agency Moody’s India unit ICRA expects India’s gasoline consumption to rise 14 percent to a record 31.9 million tonnes (739,000 barrels per day) in the fiscal year to end-March 2022, while diesel consumption is expected to take well into the fourth quarter or even next year to recover pre-pandemic levels.
Source:The Economic Times
India’s oil imports rose to 4-month high in August
22 September:India’s oil imports rose to a four-month high of about 4.2 million barrels per day in August, recovering from the near 1-year low hit in July, tanker data from trade sources showed, as some refiners plan to boost runs in anticipation of pent-up demand around the festival season. Oil imports last month rose about 23 percent from July and about 6.2 percent from the same month last year, the data showed. Indian refiners mostly buy oil about two months ahead of processing.
Source:The Economic Times
National: Gas
ONGC puts 2nd well in KG block on production
24 September:Oil and Natural Gas Corp (ONGC) has put a second well in its promising KG basin block into production, its chairman Subhash Kumar said. ONGC had achieved first gas from the US$5 billion KG-DWN-98/2 or KG-D5 project in the Krishna Godavari basin in the Bay of Bengal in June last year. Augmenting production from the project thereafter got hit by supply disruption world over caused by the Covid pandemic. Considered to be the largest subsea project in India, block 98/2 is expected to have a total peak gas production rate of around 16 million metric standard cubic meters per day, with peak oil production rate estimated to be 80,000 barrels per day. The block sits next to the KG-D6 block of Reliance Industries Ltd and its partner BP Plc of UK. A total of 34 wells are planned to be drilled as part of the KG-DWN-98/2 project including 15 oil-producing wells and eight gas-producing wells.
Source:The Economic Times
PMPML gets ultimatum to clear gas dues
24 September:The Maharashtra Natural Gas Limited (MNGL) has told Pune Mahanagar Parivahan Mahamandal Limited (PMPML) to clear INR520 mn dues by 30 September. The MNGL authorities held a meeting with the PMC and PMPML officials.
Source:The Economic Times
National: Coal
Coal shortage deepens in India amid plunging plant inventories
27 September:India’s massive fleet of coal plants are running dangerously low on stockpiles, which may force the nation to buy expensive shipments of the fuel or else risk blackouts. Stockpiles have fallen to the lowest since November 2017, data from the Central Electricity Authority showed. Electricity demand from India’s state distribution utilities rose more than 10 percent in July and 18 percent in August as economic activity rebounded after a second wave of the pandemic receded and more citizens were vaccinated.
Source:The Economic Times
Fuel supply by Coal India to power sector rises 11 percent in August
27 September:Fuel supply by Coal India Ltd (C(L) to the power sector rose by 11.4 percent to 38.61 million tonnes (mt). The development assumes significance in the wake of thermal power plants in the country grappling with coal shortage. CIL which accounts for 80 percent of the country’s coal output had supplied 34.64 mt of coal in August last fiscal. Fuel supply by CIL in the April-August period of the current fiscal increased by 27.2 percent to 205.90 mt over 161.87 mt in the year-ago period, it said. The supply of coal by Singareni Collieries Company Ltd (SCCL) in August increased by 73.2 percent to 4.08 mt over 2.36 mt of coal supplied in August last fiscal, it said. SCCL supplies to the power sector in the April-August period increased by 84.2 percent to 22.16 mt from 12.03 mt a year ago. CIL has been writing to power generating companies since October last year urging them not to regulate the intake of coal and build up stock at their end, so that the electricity production does not suffer during summer and monsoon seasons, according to official sources. CIL had earlier said that it had launched a multi-pronged effort to help build up coal stocks at power plants, and stressed that supply to the electricity units carrying stock of zero to six days had been prioritised by preparing a contingency supply plan to increase their stock.
Source:The Economic Times
Coal mining leases granted in Meghalaya after seven years of ban
25 September:Mining leases for three coal blocks were granted in Meghalaya’s East Jaintia Hills by the union coal ministry in a major boost for the sector in the state after a ban was imposed by the Nation Green Tribunal (NGT) in 2014. The mining leases were granted in the name of Labour Lyngdoh, a resident of Rymbai village, and Dapmain Shylla of Byndihati village, according to state Mining and Geology officials. Labour and Dapmain are associates of coal barons Nehlang Lyngdoh and Thomas Nongtdu.
Source:The Economic Times
Next round of coal mines auction for commercial mining in October or November: Coal Minister
24 September:Coal Minister Pralhad Joshi said the next round of auction of coal mines for commercial mining will be launched in October or November. The details of most of these mines are already available in public domain, and some more mines will be added in the list, the coal ministry said in a statement. Meanwhile, the coal ministry will very soon come out with tender document for second attempt of sale of 11 coal mines in the ongoing auction round for the mines which have received single bids, it said. Eight coal mines have been successfully auctioned with the winning percentage of revenue share ranging from 6 to 75.5 percent with an average percent revenue share of 30 percent.
Source:The Economic Times
National: Power
CM Stalin gives 1 lakh power connection certificates to farmers in Tamil Nadu
23 September:In a major announcement of welfare schemes for the farmers, Tamil Nadu Chief Minister (CM) MK Stalin distributed one lakh free power connection certificates to the farmers. Stalin further said that the electricity board department has resolved 90 percent of grievances since the formation of the DMK government.
Source:The Economic Times
Telangana cabinet to clear increase in power tariff and RTC fares
22 September:Soon, electricity consumers and commuters of TSRTC may have to pay more as the state government is expected to clear the proposals on enhancing power charges and RTC bus fares in the next cabinet meeting. Chief Minister K Chandrasekhar Rao, who held a review meeting on the RTC and electricity department, asked the officials to come up with proposals on enhancement of charges. The government has not revised the electricity tariff in the last seven years after formation of the state. The power distribution companies generally submit their aggregate revenue requirement (ARR) to the Telangana State Electricity Regulatory Commission (TSERC) in November every year and any hike will come into effect from the next financial year.
Source:The Economic Times
National: Non-Fossil Fuels/ Climate Change Trends
IGL, SDMC ink pact to set up waste-to-energy plant
27 September:Indraprastha Gas Ltd (IGL) signed a Memorandum of Understanding with South Delhi Municipal Corporation (SDMC) to establish a waste-to-energy plant in Delhi to convert municipal solid waste into compressed bio-gas (CBG) for use as fuel for running vehicles. The move helps reduce municipal waste on one hand and produce clean energy on the other in a sustainable manner. Only 14 percent of the solid waste was processed in 2014 but in seven years, the figure has gone up to 70 percent.
Source:The Economic Times
Green rides help Delhi Metro earn INR195 mn through carbon credits in 6 years
27 September:The Delhi Metro Rail Corporation (DMRC) has earned INR195 mn in six years from the sale of 3.5 million carbon credits. These credits are tradable certificates, which enables DMRC to sell credits earned from its greenhouse gas (GHG) emission-reducing projects to other organisations, who need to compensate for their GHG emissions. Delhi Metro became the first Metro or railway project in the world to be registered by the United Nations under the clean development mechanism (CDM) in 2007, which enabled DMRC to claim carbon credits for its regenerative braking project. The 3.5 million carbon credits were collected over a period of six years from 2012 to 2018. CDM projects generate emissions credits called certified emission reductions, which are then bought and traded.
Source:The Economic Times
NTPC wins 1.9 GW solar power projects under CPSU scheme
26 September:NTPC Ltd has bagged 1.9 GW solar projects in CPSU Scheme-II tender. With this, NTPC now has over 6.3 GW capacity won through competitive biddings. This shall pave the way for NTPC’s plan of 60 GW RE (renewable energy) capacity by 2032, a company statement said. The company has won the projects in tranche 3 of 5 GW tender. Central Public Sector Undertaking (CPSU) Scheme Phase-II envisages setting up 12,000 MW grid-connected solar photovoltaic power projects by the government producers with Viability Gap Funding (VGF) support.
Source:The Economic Times
SJVN bags 1 GW solar power project
25 September:SJVN said it has won 1,000 MW grid-connected solar project worth INR55 bn in a bidding conducted by Indian Renewable Energy Development Agency Ltd (IREDA). The company bagged the project through open competitive bidding process for quoted capacity of 1,000 MW at the maximum tariff of INR2.45 per unit. SJVN bagged the full quoted capacity of 1,000 MW at a Viability Gap Funding (VGF) support of INR44.72 lakh per MW by the Government of India. SJVN participated in a VGF-based competitive bidding process for solar project of capacity 5,000 MW floated by IREDA. Earlier, the SJVN bagged three solar projects totalling 345 MW in the state of Gujarat, Uttar Pradesh and Bihar. All these solar projects have also been bagged through Open Competitive Bidding.
Source:The Economic Times
RIL, Adani, 17 others evince interest to set up solar PV units under PLI scheme
23 September:As many as 19 firms, including Reliance Industries Ltd (RIL), Adani Group and Tata have evinced interest for setting up solar manufacturing units under a production linked incentive scheme of the government. In April this year, the Union Cabinet approved a INR45 bn production linked incentive (PLI) scheme to boost domestic manufacturing capacity of solar PV modules. The scheme is aimed at adding 10,000 MW manufacturing capacity of integrated solar PV modules entailing direct investment of INR172 bn. Solar capacity addition presently depends largely upon imported solar PV cells and modules as the domestic manufacturing industry has limited operational capacities of solar PV cells and modules. The PLI scheme — National Programme on High Efficiency Solar PV Modules — approved by the Union Cabinet, is aimed at reducing import dependence in a strategic sector like electricity. Under the scheme, solar PV manufacturers will be selected through a transparent competitive bidding process. The PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants, on sales of high efficiency solar PV modules. Manufacturers will be rewarded for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market.
Source:The Economic Times
Rajasthan on top in solar energy production: CM
23 September:Rajasthan has become the leading state in the country in solar energy production, Chief Minister (CM) Ashok Gehlot said. This is the result of the Solar Energy Policy 2019 and the Rajasthan Investment Promotion Policy 2019 implemented by the state government, Gehlot said. Rajasthan’s solar generation potential has been assessed at 142 GW. To meet the global commitment, the union government has fixed a national target of 175 GW renewable energy, which includes 100 GW from solar energy by the year 2022. This will reduce dependence on conventional sources of energy by promoting non-conventional energy sources.
Source:The Economic Times
Torrent Power to acquire 156 MW wind power plants from CESC Ltd
22 September:Torrent Power announced that it has inked a share purchase pact to acquire 156 MW wind power projects for about INR7.9 bn from Surya Vidyut, an arm of CESC Ltd. Surya Vidyut operates 156 MW wind power plants spread across the states of Gujarat, Rajasthan and Madhya Pradesh. The projects have long-term power purchase agreements (PPAs) with respective state discoms for a period of 25 years, with weighted average PPA tariff of INR4.68 percent kWh.
Source:The Economic Times
Rooftop solar addition jumps 53 percent in April-June quarter on Gujarat booster
22 September:Completion of a large number of residential rooftop solar projects pushed up the pace of overall rooftop solar capacity addition by 53 percent sequentially at 521 MW in the April-June quarter (calendar year) against 341 MW installed in the January-March period, latest market data shows. The majority of the rooftop solar installations were in Gujarat, accounting for about 55 percent of installed capacity during the quarter under review. Maharashtra and Haryana rounded off the top three states for rooftop solar.
Source:The Economic Times
International: Oil
Global oil price eases as investors take profit after 5-day rally
28 September:Oil markets eased after a five-day rally as investors took profits on fears that higher prices may weaken fuel demand, though market sentiment remained firm amid tight supply. Brent crude futures fell 17 cents, or 0.2 percent, to US$79.36 a barrel after surging 1.8 percent and reaching its highest since October 2018. US (United States) West Texas Intermediate (WTI) crude futures dropped 9 cents, or 0.1 percent, to US$75.36 a barrel, having risen 2 percent and hitting its highest since July the previous day. Top African oil exporters Nigeria and Angola will struggle to boost output to their OPEC (Organisation of the Petroleum Exporting Countries) quota levels until at least next year as underinvestment and nagging maintenance problems continue to hobble output, sources at their respective oil firms warn.
Source:The Economic Times
Sudan protesters agree to resumption of South Sudanese oil exports
27 September:Sudan’s government reached an agreement with tribal protesters to allow the resumption of exports of landlocked South Sudan’s crude oil via a terminal on the Red Sea. The Sudanese energy and oil ministry warned that the port’s oil depots would become full up in 10 days’ time if the blockage continued. That would in turn force South Sudanese oil fields to halt production. The protesters have also forced the closure of a pipeline that carries imported crude to the capital Khartoum.
Source:The Economic Times
BP closes UK petrol forecourts due to shortage of drivers
24 September:Oil company BP said it had temporarily closed some of its petrol forecourts in Britain after its ability to transport fuel from refineries was hit by an industry wide shortage of truck drivers. BP, which has about 1,200 branded stations across the United Kingdom, said it was taking action to address the issue. The Petrol Retailers Association (PRA), which represents independent forecourts that account for 65 percent of Britain’s petrol stations, said the issues appeared to be confined to London and southeast England, and appeared temporary.
Source:The Economic Times
International: Gas
IEA presses Russia to end Europe gas shortage
22 September:The International Energy Agency (IEA) urged Russia to step up gas deliveries to Europe in anticipation of higher winter demand, as tight global supply pushes prices skywards. Higher demand, including from extremes of hot and cold weather this year, and squeezes on supply due to “a series of unplanned outages and delays across the globe and delayed maintenance from 2020” have boosted gas prices, the IEA said. But Moscow has made clear that it is waiting for its divisive Nord Stream 2 pipeline to Germany to come online before delivering more gas. The pipeline was completed this month in the face of objections from Germany’s eastern EU (European Union) and NATO allies like Poland, the Baltic states and the US (United States), which say it gives Moscow too much control over Europe’s energy supply.
Source:The Economic Times
Gas price at US$7-8 per mmBtu is ‘sweet spot’ for customers: Malaysia’s Petronas CEO
22 September:Malaysia’s state energy firm Petronas CEO (chief executive officer) Tengku Muhammad Taufik said that a gas price at US$7-8 per metric million British thermal units (mmBtU) could be a “sweet spot” for customers and allows investments to continue to happen. Global gas prices have been rallying all summer due to low storage inventories, high demand for gas in Asia, less Russian and LNG (liquefied natural gas) supply to Europe than usual, high carbon prices and outages. The average liquefied natural gas price for November delivery into Northeast Asia was estimated at about US$24 to US$25 per mmBtu. Benchmark Dutch natural gas prices in northwest Europe have surged to around US$25 per mmBtu from around US$6-7 per mmBtu at the start of the year.
Source:The Economic Times
International: Coal
US, UK welcome China end to coal funding but seek more
24 September:The United States (US) and Britain welcomed China’s promise to end funding for coal projects overseas, but voiced hope the world’s largest emitter would also do more at home on climate change. President Xi Jinping told the UN General Assembly that China will stop backing coal overseas, all but drying up the world’s foreign assistance to the dirty form of energy in developing countries after similar announcements by South Korea and Japan. British Prime Minister Boris Johnson, seeking to rally international support for strong climate action ahead of UN climate talks in Glasgow in November, voiced hope for a complete global end to coal by 2040. UN scientists said that warming of 1.5 degrees Celsius (2.7 Fahrenheit) above pre-industrial levels is a threshold at which the planet can avoid the worst ravages of climate change including increasingly severe weather, droughts and flooding.
Source:The Economic Times
International: Power
China’s electricity crunch is world’s latest supply-chain threat
28 September:China’s energy crisis is shaping up as the latest shock to global supply chains as factories in the world’s biggest exporter are forced to conserve energy by curbing production. Local governments are ordering the power cuts as they try to avoid missing targets for reducing energy and emissions intensity, while some are facing an actual lack of electricity. Clark Feng, whose Vita Leisure Co. buys tents and furniture from Chinese manufacturers to sell overseas, said electricity curbs in the eastern province of Zhejiang, where the company is based, have dealt another blow to businesses. With the power crisis moving from the factory floor to people’s homes, electricity utility State Grid Corporation of China said it will try its best to avoid power cuts to meet basic residential demand.
French company TotalEnergies expects rise in use of renewable energy in future
28 September:French company TotalEnergies said that it expected a big rise in renewable-based electricity, solar and wind forms of energy, partly due to a general increase in electrification in the industrial and business world. TotalEnergies said it expected that oil in general would plateau before 2030, while natural gas would continue to play a role as a transition fuel.
Source:The Economic Times
Sri Lanka to cease building coal-fired plants, aims to be net-zero emitter by 2050
25 September:Sri Lanka will cease building new coal-fired power plants and achieve net-zero carbon emissions by 2050, President Gotabaya Rajapaksa said. Sri Lanka has set a target of achieving 70 percent of all its energy requirements from renewable sources by 2030. Governments including Sri Lanka, Chile, Denmark, France, Germany, Montenegro, and the UK have announced a No New Coal Power Compact to halt the construction of coal-fired power plants, according to climate advocacy group Sustainable Energy for All. Renewable energy sources such as wind and solar, and small and large hydro power plants together account for half of the island nation’s installed electricity capacity, with coal and oil-fired power accounting for the rest. Renewable and hydroelectric power currently account for about 35 percent of the country’s power demand. Sri Lanka will also discourage imports of fossil fuel-powered vehicles, encourage adoption of electric cars and investments in green energy, Rajapaksa said.
Source:The Economic Times
Quad nations to focus on clean-energy supply chain: Australia PM
25 September:The United States (US), Japan, India and Australia will work to improve the security of supply chains for critical technologies such as clean energy and to ease a global semiconductor shortage, Australia’s Prime Minister Scott Morrison said. The Quad nations, in their first in-person summit in Washington, agreed on a partnership to secure critical infrastructure, the White House said. Australia is the world’s biggest supplier of rare earths outside of China, and is a major supplier of minerals used in electric vehicle batteries, such as nickel, copper and cobalt.
Source:The Economic Times
California governor signs US $15 bn package to tackle climate change
24 September:California governor Gavin Newsom has signed a US$15 billion package that will fund programmes to tackle drought and climate change in the state after a devastating wildfire season. Newsom signed 24 bills focused on climate and clean energy efforts, droughts, and wildfire preparedness, describing the funding as the largest climate package in California’s history. The package’s largest portion, US$5.2 billion, will go towards funding for emergency drought relief projects and expanding California’s water supplies. The package includes US$3.7 billion to address climate change risks, investing in projects that will mitigate extreme heat and tackle the threat of rising sea levels.
Source:The Economic Times
Indonesia approves Australian solar project over US$2.5 bn investment
24 September:Indonesia approved a giant solar power link between Australia and Singapore after a US $2.5 billion investment promise, authorities said. Southeast Asia’s largest economy has agreed to allow Sun Cable’s Australia-Asia PowerLink or AAPowerLink route through Indonesian waters and approved the undersea survey permit. AAPowerlink will generate solar electricity from one of the world’s biggest solar farm projects and transmit it from Darwin to Singapore starting in 2028. The project is expected to supply up to 15 percent of Singapore’s electricity needs and reduce the country’s emissions by around six million tonnes annually.
Source:The Economic Times
Iberdrola and Prosolia plan US $1 bn solar spree in Iberia
23 September:Wind power giant Iberdrola and solar project developer Prosolia Energy will jointly invest €850 million (US $996 million) in five solar parks in Iberia by 2025, including one of Europe’s largest power plants in Portugal, Prosolia said. Through the deal, the companies aim to develop total new capacity of 1.5 GW in four photovoltaic parks in Spain and a mega-plant in Portugal which is almost equal to the country’s entire current installed capacity, by 2025, Prosolia said. Iberdrola plans to spend €150 billion globally on tripling its renewable capacity by 2030, reaching a total 60 GW in 2025, as much as 25 GW of which will be in Spain.
Source:The Economic Times
Neste expects aviation biofuel demand to top 12 mt in 2030
23 September:Finnish oil refiner and biofuels maker Neste said it expects to be able to produce 1.5 million tonnes (mt) of biofuel annually for the aviation industry by end of 2023 versus about 100,000 tonnes currently. The company, which will hold a virtual capital markets day, estimates demand for the aviation fuel with exceed 12 mt per year by 2030. Renewables now account for 90 percent of Neste’s operating profit and the company said it aims to have three strong renewables businesses by 2030 in sustainable aviation fuel, biodiesel and polymers and chemicals. In its strategy update it added it sees road transportation biodiesel demand possibly rising to as high as 30 mt.
Source:The Economic Times
South Africa’s Sasol to reduce carbon emissions by 30 percent to 2030
22 September:South Africa’s fuel and chemical producer Sasol Ltd has raised its emissions reduction targets for 2030 to 30 percent from 10 percent previously in a bid to make the company a net zero carbon emitter by 2050, its CEO Fleetwood Grobler said. The new targets come as the company faces pressure from investors and environmentalists to take decisive steps at its heavily polluting plants, often described as amongst the continent’s worst greenhouse gas emitters (GHG). He said that the company intends to cut down its GHG emissions from 63.9 million tonnes (mt) to about 44.73 mt by 2030, up from 57.5 mt as per its previous target. He said with the reduction in coal consumption, a part of its workforce would also be redundant by 2030.
Source:The Economic Times
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