2024-12-31 23:03

Dec 31 (Reuters) - U.S. banks Citigroup (C.N) , opens new tab and Bank of America (BAC.N) , opens new tab said on Tuesday they are exiting the Net-Zero Banking Alliance (NZBA), a group of global banks that have pledged to curb greenhouse gas emissions. They follow Wells Fargo (WFC.N) , opens new tab and Goldman Sachs (GS.N) , opens new tab, which both left the alliance earlier this month. Financial firms, historically criticized for their connections to the fossil fuel industry, have made efforts to incorporate net-zero standards more prominently into their operations. However, they have begun scaling back on some initiatives to avoid irking Republican policymakers who are opposed to limiting the financing of fossil fuels. Citi said it had made progress toward its own net-zero goals and decided to leave the NZBA. BofA, in an emailed statement to Reuters, said: "We will continue to work with clients on this issue and meet their needs." The NZBA aims to bring down carbon emissions from the lending and investment portfolios of its members to zero on a net basis by 2050. Last month, BlackRock (BLK.N) , opens new tab, Vanguard and State Street (STT.N) , opens new tab were sued by Texas and 10 other Republican-led states, which said the large asset managers violated antitrust law through climate activism that reduced coal production and boosted energy prices. (This story has been refiled to add dropped words in the quote in paragraph 6) Sign up here. https://www.reuters.com/business/finance/citigroup-joins-us-lenders-exiting-net-zero-banking-alliance-2024-12-31/

2024-12-31 21:54

Dec 31 (Reuters) - BMW (BMWG.DE) , opens new tab and Yamaha Motor (7272.T) , opens new tab have invested in U.S.-based rare earths processing startup Phoenix Tailings, the latest move by manufacturers to boost production of the strategic metals outside of China. Rare earths are a group of 17 metals used to make magnets that turn power into motion for electric vehicles, cell phones and other electronics. The existing standard to refine these minerals, known as solvent extraction, is an expensive and dirty process that gradually became unpopular in the United States after it was developed in the 1950s but one that Chinese rivals have spent the past 30 years mastering. Beijing has taken steps in recent months to curb exports, a move that has fueled a scramble across the West for replacement technologies. Phoenix says its process can produce rare earths from mined ore or recycled equipment with little to no emissions. BMW and Yamaha's venture capital investment divisions are among several investors - including venture capital funds Envisioning Partners, MPower and Escape Velocity - in Phoenix's $43 million Series B funding round, which closed on Dec. 20, Phoenix CEO Nick Myers told Reuters in an interview. Phoenix declined to disclose each investor's funding. The company will use the funding to build a $13 million facility in Exeter, New Hampshire, that can produce 200 metric tons of rare earths annually and should open by June 2025, Myers said. The remaining funding will be used for research, engineering and business development. The Massachusetts-based company, which has 33 employees, says it has signed supply contracts worth more than $100 million, although it declined to say with whom. If the Exeter facility is successful, Phoenix plans to build larger processing facilities elsewhere in the U.S. That could help the company achieve its goal of going public within three to five years, Myers said. MP Materials (MP.N) , opens new tab and Lynas Rare Earths (LYC.AX) , opens new tab are two of the largest non-Chinese rare earths miners and processors, although both have struggled amid Chinese competition. Myers said he believes Phoenix can succeed because it does not operate a mine. The company is applying for U.S. government loans and grants. Myers added that he believes Donald Trump, who will become U.S. president on Jan. 20, will be a "very strong benefit for onshoring manufacturing" and critical minerals companies. Phoenix closed a $10 million Series A funding round in August 2021. Sign up here. https://www.reuters.com/markets/deals/bmw-yamaha-motor-back-us-rare-earths-startup-phoenix-tailings-2024-12-31/

2024-12-31 21:51

CAPE TOWN, Dec 31 (Reuters) - South African power utility Eskom has successfully linked the second unit of its Koeberg nuclear power plant to the national grid after a major refit, further boosting electricity supply after years of power cuts, the company said on Tuesday. After a bleak decade of controlled power outages, Eskom has provided uninterrupted electricity supply for the past nine months, helping to improve business confidence in Africa's most industrialised economy. Koeberg power station, north of Cape Town, is currently the only commercial nuclear power plant in Africa and its two units contribute around 1,860 megawatts or 5% of national power supply. "Koeberg exemplifies how nuclear power can align economic and environmental priorities to create a sustainable energy future," Dan Marokane, Eskom's chief executive officer, said in a statement. In July, the nuclear regulator extended the 40-year operating licence of the plant's Unit 1 by a further 20 years. The regulator is expected to make a decision to extend Unit 2's licence for a similar period before the end of 2025. South Africa is planning an additional 2,500 MW of future nuclear power. It is also considering resurrecting development of its small Pebble Bed Modular Reactor design, discontinued more than a decade ago due to a lack of funding and partners. Sign up here. https://www.reuters.com/business/energy/south-africas-koeberg-nuclear-plant-refit-boosts-power-supplies-2024-12-31/

2024-12-31 21:40

HOUSTON, Dec 31 (Reuters) - U.S. natural gas demand from LNG plants hit a record on Tuesday, the last day of the year, climbing to 15.2 billion cubic feed (bcf) in a sign of a strong year ahead from the startup of two new gas-processing plants, preliminary data from financial firm LSEG showed. U.S. natural gas demand for LNG plants is forecast to rise to 17.8 bcfd next year with the commissioning of Venture Global LNG's 20 million tones per annum (MTPA) Plaquemines plant in Louisiana and Cheniere Energy's (LNG.N) , opens new tab Corpus Christi Stage 3 expansion in Texas. Demand for natural gas by LNG export plants could spur higher production in the U.S. and increase prices at the country's main gas exchange in Louisiana, called Henry Hub, according to analysts. Gas prices were up 48 cents in midday trading on Tuesday, at $3.94 per million cubic feet (mcf), according to LSEG data. The U.S. is the world's largest exporter of the superchilled gas and a major supplier to Europe and Asia. LNG exports and feedgas demand also tend to be higher in the cooler months in the Northern Hemisphere as it improves the plants efficiency. Tuesday is the third time in two weeks that U.S. LNG feedgas demand has crossed 15 bcfd but the first time it has gotten to 15.2 bcf, according to LSEG data. In December, Venture Global and Cheniere announced first LNG from their expansion projects with Venture Global's Plaquemines plant making its first shipment to Germany. U.S. gas demand for LNG is expected to increase to 20.3 bcfd in 2026 as the new plants ramp up output, and climb to 24.2 bcfd in 2028 according to US EIA data. The gains will follow the start of Golden Pass LNG, a joint venture of QatarEnergy (QATPE.UL) and Exxon Mobil (XOM.N) , opens new tab being constructed on the Texas coast with first gas due in late 2025 or early 2026. Sign up here. https://www.reuters.com/business/energy/us-lng-gas-demand-hits-record-high-last-day-year-2024-12-31/

2024-12-31 21:21

ABUJA, Dec 31 (Reuters) - Nigeria will require applicants for oil licences and permits to show evidence of low carbon emissions and a renewable energy program from Wednesday before approvals are granted, the head of its upstream regulatory agency said on Tuesday. Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission, said the policy was to comply with the country's goal of net zero carbon emissions by 2060. It issued a template, called the Upstream Petroleum Decarbonisation Template (UPDT), to guide applicants. Komolafe said enforcement will start from Jan. 1, 2025, and will cover all approvals in the upstream sector including divestments. "By this, the commission is deepening its efforts to align the upstream petroleum industry with national priorities and international climate goals while ensuring sustainable value creation from oil and gas resources for Nigeria's energy security and economic development," Komolafe said. The new requirement will also compel operators to implement methane management programs such as leak detection and repairs, optimise operations with energy-efficient technologies and integrate renewable energy sources into projects. Sign up here. https://www.reuters.com/world/africa/nigeria-oil-licence-applicants-must-prove-low-carbon-emissions-nigerian-2024-12-31/

2024-12-31 20:43

WASHINGTON/NEW YORK, Dec 31 (Reuters) - The U.S. Treasury Department intends to release guidance on how to access tax credits for hydrogen production under the 2022 Inflation Reduction Act later this week, according to two sources familiar with the matter. The long-awaited guidance will provide a pathway for hydrogen produced using nuclear power to access the credits, the sources told Reuters, though the details of that plan were not immediately clear. The question of whether existing nuclear plants should be eligible for the hydrogen subsidy has been a major sticking point for the rule, with environmentalists saying that only hydrogen produced with new clean energy sources should be granted the perks. One of the sources said the guidance would likely be released on Friday. A spokesperson said the Treasury Department was working to finalize the guidance and that the agency was considering various requests related to the rules. "Finalizing rules that will help scale the clean hydrogen industry while implementing the environmental safeguards established in the law remains a top priority for Treasury," said spokesperson Michael Martinez. "In that process, we are carefully considering the numerous comments we have received on the proposed regulations." In December 2023, the Treasury Department unveiled its proposed rules governing how energy companies would qualify for the credits under the act. In its draft guidance, the agency said the credit would range from 60 cents to $3 per kilogram and be based on the life-cycle greenhouse gas emissions from the power-generating source used in hydrogen production. The country's producers of nuclear power, which is virtually carbon free, have since lobbied the Biden administration to include existing reactors in the program. The level of any inclusion of nuclear power in the final rules will determine whether it's commercially viable to invest in hydrogen production, one source said. Some possible guidelines could include a limit on the number of credit-qualifying megawatts allowed from existing nuclear power plants used in hydrogen production, one source said. Sign up here. https://www.reuters.com/sustainability/climate-energy/us-issue-hydrogen-credit-rule-this-week-with-path-nuclear-sources-say-2024-12-31/