2024-12-23 20:46

SAN SALVADOR, Dec 23 (Reuters) - El Salvador's legislature overturned a seven-year-old ban on metals mining on Monday, a move that President Nayib Bukele had pushed for to boost economic growth, but that environmental groups had opposed. El Salvador became the first country in the world to ban all forms of metals mining in 2017. Bukele, who took office in 2019, has called the ban absurd. All 57 of Bukele's allies in the Central American country's 60-seat legislature voted for the president's legislation to overturn the ban. The legislation will grant the Salvadoran government sole authority over mining activities within the country's land and maritime territory. "By creating a law that puts the state at the center, we are guaranteeing that the population's wellbeing will be at the center of decision making," lawmaker Elisa Rosales, from Bukele's New Ideas party, said in a speech to the legislature. The legislation does prohibit the use of mercury in mining, and seeks to declare some areas incompatible with metals mining as protected nature reserves. El Salvador's economy is expected to grow 3% this year, according to the International Monetary Fund, but it has a heavy debt burden that hit a level of around 85% of gross domestic product earlier this year. Bukele, who enjoys wide popularity among voters after a gang crackdown, has touted mining's economic potential for the country of roughly 6 million people. The president shared on social media last month that studies conducted in just 4% of Salvadoran territory where mining is possible had identified gold deposits worth some $132 billion, equivalent to about 380% of El Salvador's GDP. "This wealth, given by God, can be harnessed responsibly to bring unprecedented economic and social development to our people," Bukele wrote at the time. Dozens of people protested on Monday near Congress against the reauthorization of mining, arguing that future projects could affect the communities and ecosystem of the smallest country in Central America. "We oppose metals mining because it has been technically and scientifically proven that mining is not viable in the country," environmentalist Luis Gonzalez told reporters. "The level of contamination that would be generated in the water, soil and biodiversity is unacceptable for life as we know it." Sign up here. https://www.reuters.com/markets/commodities/el-salvador-lawmakers-overturn-national-mining-ban-2024-12-23/

2024-12-23 20:42

Dec 23 (Reuters) - Talen Energy (TLN.O) , opens new tab plans to contest the Federal Energy Regulatory Commission's (FERC) rejection of an amended interconnection agreement for an Amazon data center at its Pennsylvania nuclear plant, the company said on Monday. The U.S. utility earlier this year sold a data center connected to its Susquehanna nuclear power plant to Amazon (AMZN.O) , opens new tab and hoped to increase its capacity from 300 megawatts to 480 megawatts. The deal, however, faced opposition from American Electric Power (AEP.O) , opens new tab and Exelon (EXC.O) , opens new tab. FERC, in an order issued on Nov. 1, sided with the two regulated utilities and blocked the interconnection agreement. Talen, last month, filed a request for a rehearing, to which the regulator responded on Monday, stating it would address the request in a future order. As FERC did not decide on the rehearing request within 30 days, the decision to reject the amended interconnection agreement is now eligible for an appeal to a U.S. Circuit Court of Appeals, Talen Energy said in a statement. Shares of the company, which have more than tripled this year, were up 0.6% in afternoon trading. Sign up here. https://www.reuters.com/business/energy/talen-energy-appeal-fercs-rejection-amazon-data-center-deal-2024-12-23/

2024-12-23 20:27

Dec 23 (Reuters) - Greece and Israel signed an agreement to promote regional energy stability and innovative energy projects in the Eastern Mediterranean and the European Union, the Greek Ministry of Environment and Energy said on Monday. The agreement was signed by Greek Energy Minister Theodoros Skylakakis and his Israeli counterpart Eli Cohen, during the latter's visit to Greece, it added. "The creation of a 'green' electricity corridor from Israel to the EU via Greece will be a project of strategic importance for the Eastern Mediterranean region," the Greek minister said in a statement. Sign up here. https://www.reuters.com/business/energy/greece-israel-sign-energy-deal-eastern-mediterranean-2024-12-23/

2024-12-23 20:17

Altus shares surge as much as 23% on TPG Rise deal talks Altus has been exploring sale since Oct Private capital wants power assets amid AI, data center boom NEW YORK, Dec 23 (Reuters) - Buyout firm TPG's (TPG.O) , opens new tab climate investment arm is in talks to acquire Altus Power (AMPS.N) , opens new tab, a provider of solar power to commercial property owners and residential homes, people familiar with the matter told Reuters on Monday. If the talks between TPG Rise Climate and Altus are successful, a deal could be signed in the coming weeks, said the sources, who requested anonymity as the discussions are confidential. The transaction has yet to be finalized, the sources cautioned, adding that another suitor could also approach Altus and that it was possible that no deal with any party would be reached. Shares of Altus surged more than 23% on the news on Monday before paring some gains, giving the company a market value of nearly $650 million. Altus also had debt net of cash of about $1.1 billion as of the end of September. Stamford, Connecticut-based Altus, one of the largest owners of commercial-scale solar plants in the United States, had said in October it was working with advisers to explore options including a potential sale. Altus and TPG declined to comment. A boom in artificial intelligence and data centers has been driving power demand higher, making clean energy providers increasingly attractive to infrastructure investors. Founded in 2009, Altus operates commercial-scale solar power installations and provides energy storage and vehicle charging facilities. The company's portfolio currently produces about 1 gigawatt of power, according to its website. As of Friday's close, Altus shares had lost nearly two-thirds of their value since the company went public in 2021 through a $1.6 billion merger with a blank-check acquisition firm backed by commercial real estate giant CBRE Group (CBRE.N) , opens new tab, as it faced increased competition from other clean energy providers. CBRE remains the biggest shareholder in Altus with a 15.38% stake, according to LSEG data. Blackstone's (BX.N) , opens new tab energy arm, which provided $350 million in debt financing and committed $300 million in preferred equity as part of the SPAC deal in 2021, holds a 13.2% stake in Altus. In recent quarters, Altus has witnessed an uptick in fortunes as it has signed new commercial property customers, amid a surge in demand for renewable energy. For the quarter ended September, Altus posted a 30% jump in revenue to $58.7 million, with net profit up more than 26% to $8.6 million. TPG through its Rise Funds, including TPG Rise Climate, manages $19 billion of assets focused on backing companies that aim to drive social and environmental impact, according to its website. Sign up here. https://www.reuters.com/markets/deals/tpg-talks-acquire-solar-firm-altus-power-sources-say-2024-12-23/

2024-12-23 19:55

Loonie trades in a range of 1.4350 to 1.4433 Canada's economy grows 0.3% in October 10-year yield increases 1.8 basis points TORONTO, Dec 23 (Reuters) - The Canadian dollar steadied against the U.S. dollar on Monday, clawing back its earlier declines, as investors weighed domestic GDP data as well as minutes from the Bank of Canada's latest meeting that showed some members favored a smaller rate cut. The loonie was trading nearly unchanged at 1.4375 per U.S. dollar, or 69.57 U.S. cents, after trading in a range of 1.4350 to 1.4433. The Bank of Canada's decision to cut rates by 50 basis points on Dec. 11 was a close call, with some members of the governing council suggesting a 25-basis-point cut was more appropriate, the minutes showed. "We continue to expect Canadian central bankers to cut rates by another 25 basis points in January and then pause in March to assess how the economy responds to lower interest rates," Tiago Figueiredo, a macro strategist at Desjardins, said in a note. Investors are pricing in roughly 13 basis points of easing at the central bank's next policy decision on Jan. 29, equivalent to a 52% chance of a 25-basis-point cut. Canada's economy exceeded market expectations with 0.3% growth in October, led by increases in oil and gas extraction and manufacturing, but gross domestic product likely contracted in November. On Thursday, the loonie touched its weakest intraday level since March 2020 at 1.4467. It has had to contend recently with the threat of U.S. trade tariffs as well as a hawkish shift by the Federal Reserve and domestic political uncertainty. Canadian Prime Minister Justin Trudeau is under increasing pressure from his own legislators to step down and let someone else take over. The U.S. dollar (.DXY) , opens new tab resumed its upward trajectory against a basket of major currencies as U.S. Treasury yields climbed. The Canadian 10-year yield was up 1.8 basis points at 3.295%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-recoups-losses-investors-assess-boc-minutes-2024-12-23/

2024-12-23 18:48

HOUSTON, Dec 23 (Reuters) - Venture Global LNG wants to extend the force majeure at its Calcasieu Pass liquefied natural gas plant in Louisiana to 2025, delaying first supplies under long-term contracts to three years after starting production, according to its initial public offering document. The closely held Arlington, Virginia, company on Friday filed a registration statement to offer shares to the public for the first time. Lower gas prices cut operating profit for the first nine months of this year to $1.17 billion, from $4.1 billion for the same period of 2023, the filing said. The plant's extended commissioning, due to power issues, has led to contract arbitration cases brought by BP (BP.L) , opens new tab, Shell (SHEL.L) , opens new tab, Edison (EDNn.MI) , opens new tab, Repsol (REP.MC) , opens new tab Galp (GALP.LS) , opens new tab and Orlen (PKN.WA) , opens new tab. The cases could cost Venture Global billions of dollars if it loses, an IPO document filed on Friday showed. Under the extended force majeure, customers would not be able to terminate their sales and purchase agreements after June 2025, Venture Global told potential investors in its IPO filing. Force majeure is a contract clause that frees parties from obligation due to uncontrollable events. The long-term customers disagree with the force majeure, first imposed in 2023, but have not moved to end their contracts, Venture Global said in its IPO document. "We are working hard to complete the remaining work needed to reach this (commercial startup) milestone," a Venture Global spokesperson said in a statement. Customers have been aware of the commercial startup timing, the statement said. BP declined to comment. Shell in the past has called Venture Global an unreliable partner. Venture Global has moved from financial go-ahead to first LNG in 30 months, the company said, and in 2025 could become the second-largest U.S. LNG exporter. Its second export plant, Plaquemines LNG, recently began producing first LNG. A first shipment from that Louisiana plant could come within days. The IPO document did not list the number of shares to be offered or a proposed price. The company said it expects to retain at least 50% ownership, the document said. It said that three external customers that it did not identify accounted for 73% of the nine months' $3.45 billion in revenue this year. One of those three contributed about 31% of the revenue, the filing said. Sign up here. https://www.reuters.com/business/energy/venture-global-lng-wants-force-majeure-first-plant-extended-2025-ipo-document-2024-12-23/