2025-08-27 07:03
Mitsubishi consortia withdraws from three Japan offshore wind projects Mitsubishi won the first round of state auctions in 2021 Japan is betting on renewables to cut fossil fuel imports TOKYO, Aug 27 (Reuters) - Mitsubishi Corp (8058.T) , opens new tab said on Wednesday it would withdraw from three Japanese offshore wind power projects due to soaring costs, in a blow to the energy security goals of a country eager to reduce its dependence on imported fuel. A Mitsubishi-led consortia won the first state auctions for the three wind farms in Chiba and Akita prefectures in 2021. The farms had projected capacity of 1.76 gigawatt (GW) and were set to start operations around 2028 to 2030. Sign up here. In a statement on Wednesday, Mitsubishi said the business environment for offshore wind power has since significantly changed worldwide due to tighter supply chains, accelerating inflation and fluid interest rates. "To adapt to these unexpected changes, we have been pursuing various options including reassessment of costs, project schedule, and revenue. However, after discussions among the partners, we have determined that establishing a viable business plan is not feasible given the current conditions," it said. Earlier this year, Mitsubishi logged a charge of 52.2 billion yen ($354 million) on the projects. On Wednesday, partner Chubu Electric Power (9502.T) , opens new tab said it expected a loss of around 17 billion yen this fiscal year due to the withdrawal. Japan wants offshore wind farm capacity to reach 10 GW by 2030 and 45 GW by 2040, and has auctioned around a tenth of targeted capacity. Winners of other offshore auctions include RWE (RWEG.DE) , opens new tab, Iberdrola (IBE.MC) , opens new tab and BP (BP.L) , opens new tab. The Ministry of Economy, Trade and Industry (METI) did not immediately reply to a request for a comment on whether it would re-auction the three sites vacated by the Mitsubishi consortia. METI has been discussing relaxing rules for developers to encourage the construction of a massive offshore wind farm sector against a global slump in which projects have been hit by soaring costs and delays. Denmark's Orsted (ORSTED.CO) , opens new tab decided to pull out of Japan last year under a global restructuring drive, and London-headquartered Shell recently shrank its team focused on Japan offshore wind as it scales back low-carbon operations. "If the projects from consequent rounds are able to move forward, this should not be seen as an apocalyptic event for wind energy in Japan," said Yuriy Humber, CEO of Tokyo-based consultancy Yuri Group. "Mitsubishi bid aggressively (in the first round), but macro and other factors went against them. Now there is a rebalancing and, I believe, the sector will emerge stronger in Japan." ($1 = 147.3300 yen) https://www.reuters.com/sustainability/climate-energy/mitsubishi-quits-japan-offshore-wind-sites-citing-rising-costs-2025-08-27/
2025-08-27 06:48
US imposes additional 25% tariffs on Indian exports Some Indian refiners resume Russian crude purchases despite levies Russia lifts August crude exports after refinery attacks NEW DELHI, Aug 27 (Reuters) - Oil prices steadied on Wednesday, after falling in the previous session, as investors watched for fresh developments in the Ukraine war and weighed hefty new U.S. tariffs on India, the world’s third-biggest crude consumer. Brent crude futures fell 9 cents to $67.13 per barrel at 0633 GMT, while West Texas Intermediate (WTI) crude futures were down 8 cents at $63.17. Sign up here. Both contracts fell more than 2% on Tuesday after beginning the week at a two-week high. "(There is) a lot of uncertainty over how the Ukraine stalemate might be resolved, which portends volatility for crude but likely in a relatively small range," said Vandana Hari, founder of oil market analysis provider Vanda Insights. "Over the past week or so, much of the Ukraine peace discount has been reversed, but the market is also not ready to price in a major supply risk premium," Hari added. U.S. special envoy Steve Witkoff said on Tuesday he will meet Ukrainian representatives in New York this week, adding that Washington is also in talks with Russia as it seeks to end the war. Additionally, U.S. President Donald Trump's doubling of tariffs on goods from India to as much as 50% took effect as scheduled on Wednesday. Trump has said the higher charges are a result of India's Russian oil buying, which increased following Moscow's invasion of Ukraine as Western sanctions led Russia to discount its cargoes. Indian refiners initially curbed their Russian crude purchases following the U.S. tariff announcements and after stricter European Union sanctions on Russian-backed Indian refinery Nayara Energy. However, state-owned refiners Indian Oil and Bharat Petroleum have resumed buying Russian supplies for September and October, company sources said last week. Indian Oil, the country's biggest refiner, has said it will continue to buy Russian crude depending on the economics. That has led some analysts to question how much impact the higher U.S. tariffs will have on Indian purchases. "The secondary tariff has not been enough to stop India from buying Russian oil. The market will be watching Russian oil flows to India closely going forward to gauge the impact, if any, of secondary tariffs," Warren Patterson, head of commodity strategy at ING, said in a note. Analysts estimate India has saved at least $17 billion by increasing oil imports from Russia since early 2022. Additional tariffs of up to 50% on Indian imports could slash exports by more than 40%, or nearly $37 billion, this April-March fiscal year alone, according to New Delhi think-tank Global Trade Research Initiative (GTRI). The war in Ukraine is influencing the oil market in other ways as Ukrainian drone attacks on Russian refineries are cutting their operations, requiring them to export the crude they cannot process. Russia has revised up its crude oil export plan from western ports by 200,000 barrels per day in August from the initial schedule after attacks last week, three people familiar with the matter said on Tuesday. https://www.reuters.com/business/energy/oil-steady-investors-eye-ukraine-war-us-tariffs-india-2025-08-27/
2025-08-27 06:47
ISLAMABAD/NEW DELHI, Aug 27 (Reuters) - India on Wednesday opened all gates of major dams on rivers in its part of the Kashmir region following heavy rains, and warned neighbouring Pakistan of the possibility of downstream flooding, an Indian government source said. Pakistan said Islamabad received the warning, and subsequently issued an alert for flooding on three rivers which flow into the country from India. Sign up here. Arch-rivals India and Pakistan have been ravaged by intense monsoon rains and flooding in recent weeks. Pakistan's heartland province of Punjab faces an "exceptionally high" risk of flooding due to a combination of heavy rains and the excess water India is releasing from the dams, which then flows across the border, according to Pakistani officials. Pakistani Punjab serves as the country's breadbasket and is home to half of its 240 million people. An Indian source said that some 200,000 cusecs of water is likely to be released. A cusec is a volume equivalent to one cubic foot, or 28 cubic litres, per second. It was unclear whether the Indian water release would be a one-off event or would be carried out in stages. A Pakistani disaster management official had warned on Tuesday that India would be releasing controlled volumes of water in coming days. Pakistan says New Delhi had passed on two earlier flood warnings since Sunday. The nuclear-armed nations have been in a tense stand-off since a brief conflict in May, their worst fighting in decades, and any flooding in Pakistan blamed on India could inflame ties. India routinely releases water from its dams when they get too full, with the excess flowing into Pakistan, as the two nations share rivers. Pakistani authorities on Wednesday called in army troops to help rescue people from already flooded areas in the Punjab province, and for relief and evacuation efforts. Pakistan began forced evacuations due to floods on Friday. The number of displaced people in Pakistani Punjab due to flooding now exceeds 167,000, including nearly 40,000 people who left voluntarily following flood warnings since August 14. The death toll from flooding in Pakistan since the start of the monsoon season in late June now stands at 802, half of them in this month alone. Punjab province was divided between the two countries when they gained independence in 1947. (This story has been refiled to fix the dateline) https://www.reuters.com/sustainability/climate-energy/india-releases-water-dams-warns-rival-pakistan-cross-border-flooding-says-source-2025-08-27/
2025-08-27 06:43
HANOI, Aug 27 (Reuters) - Vietnam is planning to switch completely to ethanol-blended gasoline from next year, opening up the possibility for the Southeast Asian country to import more ethanol and corn from the United States. The Ministry of Industry and Trade has submitted a proposal to the government to switch to E10 - a blend that mixes gasoline with up to 10% of bioethanol, according to ministry documents reviewed by Reuters. It currently uses the RON95 and RON92 unleaded gasoline standards. Sign up here. The switch will pave the way for the import of American ethanol and corn to Vietnam as the Southeast Asian country seeks to narrow its trade gap with the United States, its largest export market, according to one document. "This is one of the quick and effective solutions to increase the imports of goods from the United States, reducing the surplus," it said. The United States recorded a trade deficit of $123 billion with Vietnam last year, one of its highest globally. Vietnam in March cut its import tariff on ethanol to 5% from 10%. Donald Trump said last month that Vietnam could import U.S. products with zero tariffs. Vietnam, which consumes less than 30 million tons of petroleum products per year, has also pledged to boost imports of other American products, including airplanes, LNG, crude oil and farm produce. Vietnam's customs data showed imports from the United States in the first seven months of this year rose 22.7% to $10.54 billion, but fuels and corn were not listed specifically among the imports. The country currently has six ethanol plants with a combined capacity of 600,000 cubic metres a year, meeting around 40% of the demand for E10 gasoline production, one of the documents showed. The documents also said using E10 gasoline would help reduce carbon emissions and align with the country's net zero targets. Vietnam pledged to become carbon neutral by 2050 at the United Nations climate conference in Glasgow (COP26) in November 2021. https://www.reuters.com/sustainability/climate-energy/vietnam-make-switch-ethanol-blended-fuel-move-boost-us-imports-2025-08-27/
2025-08-27 06:38
NEW DELHI, Aug 27 (Reuters) - Heavy rain has caused flooding and landslides in northern parts of India, cutting off amenities and killing around 34 people, officials and local media reported, with more rain forecast for Wednesday. A landslide on Tuesday near the shrine of Vaishno Devi on the famous pilgrims' route has killed at least 30 people, ANI, in which Reuters holds a minority stake, reported on Wednesday. Sign up here. It was the latest catastrophe caused by downpours in the Himalayan region that killed 60 people and left 200 missing in Kishtwar in Indian Kashmir last week. In nearby Jammu, the India Meteorological Department (IMD) said rain reached 368 mm (14.5 inches) on Tuesday. IMD forecast more rain and thunderstorms with gusty winds for the mountainous region of Ladakh, and heavy rain for Himachal Pradesh and the federal territory of Jammu and Kashmir. Schools were ordered shut in many parts of Jammu, Himachal Pradesh and Punjab in India's north. Authorities were battling to restore "almost nonexistent" telecommunications services, said Omar Abdullah, chief minister for Jammu and Kashmir. Overflowing water in the Tawi, Chenab, Jhelum and Basantar rivers caused floods in low-lying areas, officials said, with three people killed as a result in Doda district in Jammu. "The immediate priority is restoration of electricity, water supply and mobile services, for which the authorities have been working continuously overnight," Jitendra Singh, India's science and technology minister, said in a post on X. Singh also said the Madhopur bridge suffered significant damage on Wednesday morning. Television images showed vehicles falling from the bridge as it collapsed. Some highways linking Jammu to the rest of India were also damaged. Neighbouring Pakistan has also grappled with monsoon rain in recent weeks. On Tuesday, Pakistan said its eastern province of Punjab faced "very high to exceptionally high" danger of flooding from heavy rain and India's decision to release water from two dams. The number of displaced people in the province has exceeded 150,000 including nearly 35,000 who left their homes voluntarily since August 14 after flood warnings, officials said. https://www.reuters.com/sustainability/climate-energy/over-30-people-killed-heavy-rain-causes-flooding-landslides-northern-india-2025-08-27/
2025-08-27 06:34
Masan has flagged interest in selling tungsten complex, sources say Its Nui Phao complex is a top supplier of the critical mineral outside China Two Chinese firms interested in taking a stake in the business, source says Western diplomats have visited the complex multiple times in recent months, sources say HANOI, Aug 27 (Reuters) - American and other Western officials are worried a Vietnamese tungsten mine and refinery may come under Chinese control, potentially hampering access to a major source of the critical mineral outside China, people with knowledge of the matter said. Heightened U.S.-Sino trade tensions have seen China, by far the world's dominant supplier of tungsten, restrict exports of the hard metal as well as other critical minerals in retaliation for U.S. tariff policies. Sign up here. The Nui Phao complex in northern Vietnam is owned by Masan High-Tech Materials (MSR.HNO) , opens new tab, a subsidiary of the Masan (MSN.HM) , opens new tab conglomerate which has flagged its interest in selling the asset, five sources said. Two Chinese companies have approached two foreign firms, asking them to act as their proxies in bidding for a stake in the business, according to one person briefed on those discussions. That would allow them to exert their influence without publicly declaring their interest, the person said, declining to name the parties involved. Stake sales could meet resistance from Hanoi which has hampered Chinese involvement in sensitive sectors in the past. That said, Hanoi has allowed large-scale Chinese investment in Vietnam's manufacturing sector and the two neighbours have embarked on joint rail link projects that were once seen as dangerous from a defence perspective by many Vietnamese. Nine people were interviewed by Reuters for this article, most of whom spoke on condition of anonymity given the sensitivity of the subject. Reuters was unable to establish whether any bids - whether for the entire complex or the mine or the refinery separately - have been made. Masan and the U.S. embassy in Hanoi declined to comment. Vietnam's environment ministry, which oversees mining concessions, and China's foreign ministry did not respond to requests for comment. VISITS OF SUPPORT A U.S. diplomat and other Western officials have in recent months visited the Nui Phao complex multiple times, sources said. The visits were meant to "show support," according to one of the officials, who added: "There is Western interest in keeping the supply not China-controlled". The Nui Phao mine is one of the largest outside China. It produces almost all the roughly 3,400 metric tons estimated to be extracted annually from Vietnam, which last year was the world's second-biggest producer after China, according to the U.S. Geological Survey, a government agency. The refinery attached to the mine is also one of the largest outside China, with a capacity of 6,500 tons a year, and produces many tungsten products facing Chinese restrictions, including oxides and ammonium paratungstate (APT). "It would be a concern if such an important refining operation were to be sold to a party not sharing the interests of Western industries," said Andrew Goledzinowski, a former ambassador for Australia to Vietnam and an adviser to EQ Resources (EQR.AX) , opens new tab, which processes the entire output of its Australian tungsten mine at Masan's refinery. Tungsten is an extremely hard metal often classified as critical for its applications in defence and electronics industries, including for ammunition and semiconductors. China, which dominates production with 83% of global output in 2024, restricted exports in February, requiring companies to obtain licences before shipping. Chinese exports of a range of tungsten products fell sharply in February and have only partially recovered since then, according to Chinese customs data. Exports were 17% lower in July versus January. That's sent prices of APT, a raw material for many tungsten products, surging to record highs, up 71% in China and up 52% in Europe compared to the beginning of the year, according to information provider China Tungsten. Tungsten from Vietnam accounted for 22% of U.S. imports last year and 8% of Europe's imports, according to Project Blue, a minerals consultancy. Masan has struggled to make the complex profitable, and the business is not part of its core food-processing and retail operations. The company sold its tungsten subsidiary in Germany last year. Meanwhile, relations between Washington and Hanoi have soured. This month, U.S. President Donald Trump imposed 20% tariffs on Vietnamese goods without a final agreement with Hanoi. He has also threatened more duties and has declined requests for a meeting with Vietnam's top leader, To Lam, according to multiple officials. Complicating matters, the complex's permits are set to expire in the coming years. The mine's license is valid until early 2028. Any delays in arranging the renewal of concessions could force the refinery to scale down operations even before existing concessions expire, one of the people said. https://www.reuters.com/world/china/west-frets-over-chinas-interest-vietnam-tungsten-mine-sources-say-2025-08-27/
