2024-12-19 11:59

Vessel wanted in Sweden after Baltic Sea cable breaches Chinese authorities conducting investigation on Thursday Swedish police participate as observers Representatives from Denmark, Finland, Germany also on board Boarding facilitated by Danish authorities COPENHAGEN, Dec 19 (Reuters) - China has allowed representatives from Germany, Sweden, Finland and Denmark to board a Chinese bulk carrier at the centre of an investigation into Baltic Sea cable breaches, the Danish foreign minister said on Thursday. The Yi Peng 3 vessel is wanted in Sweden for questioning over a breach of two undersea fibre-optic cables in November, and has been stationary in waters nearby for a month while diplomats in Stockholm and Beijing discussed the matter. Investigators quickly zeroed in on the ship, which left the Russian port of Ust-Luga on Nov. 15, and a Reuters analysis of MarineTraffic data showed that the vessel's coordinates corresponded to the time and place of the breaches. The Baltic Sea cables, one linking Finland and Germany and the other connecting Sweden to Lithuania, were damaged on Nov. 17-18, prompting German Defence Minister Boris Pistorius to say he assumed it was caused by sabotage. Danish Foreign Minister Lars Lokke Rasmussen on Thursday said his country had facilitated a meeting earlier this week between representatives from Germany, Sweden, Finland and China, helping break a month-long standoff. "It is our expectation that once the inspection has been completed by this group of people from the four countries, the ship will be able to sail towards its destination," Lokke Rasmussen said. LSEG data showed Yi Peng 3 remained anchored in the same spot in the Kattegat strait between Denmark and Sweden. Swedish police in a statement said they participated on board the vessel as observers only, while Chinese authorities conducted investigations. "In parallel, the preliminary investigation into sabotage in connection with two cable breaks in the Baltic Sea is continuing," the police said. The actions taken on board the ship on Thursday were not part of the Swedish-led preliminary investigation, the police added. The breaches happened in Sweden's exclusive economic zone and Swedish prosecutors are leading the investigation on suspicion of possible sabotage. Western intelligence officials from multiple countries have said they are confident the Chinese ship caused the cuts to both cables. But they have expressed different views on whether these were accidents or could have been deliberate. Swedish Prime Minister Ulf Kristersson had urged the ship to return to Sweden to aid the investigation. The was no immediate response from the Chinese foreign ministry outside of business hours on Thursday. Sign up here. https://www.reuters.com/world/europe/swedish-police-go-board-yi-peng-3-vessel-invitation-china-2024-12-19/

2024-12-19 11:54

Cash accounts for just over half of all transactions in the bloc Card and mobile payments gain ground Sweden warns that cash still needed in crisis or war FRANKFURT, Dec 19 (Reuters) - Cash is close to losing its status as the main means of payment in the euro zone, traditionally one of the most resistant corners of the developed world to the rise of electronic payments, European Central Bank data showed on Thursday. An ECB biennial Study on the Payment Attitudes of Consumers in the Euro area (SPACE) showed that cash now accounted for just over half of all transactions in the bloc at 52%, down from 59% in 2022. Its share had been as high as 79% in 2016. Card payments continued to gain ground, rising from 34% to 39% in the last two years. Mobile payments' quota doubled to 6%. The results will likely strengthen an argument inside the ECB that it needs to introduce a digital euro, practically an electronic wallet with the central bank, to ensure residents have access to a risk-free means of payment even in a cash-free world. "By supporting both cash and the development of a digital euro, we want to guarantee people can always choose to pay with public money, now and in the future," ECB board member Piero Cipollone said. Cards have long overtaken cash as the dominant means of payment in terms of value, accounting for 45% of all euros exchanged in the latest survey compared to cash at 39%. Meanwhile, in European Union member Sweden, where electronic payments are most prevalent, authorities are worried about what might happen if those channels were disrupted. In a brochure entitled "If there is a crisis or a war", Sweden recommends that people keep enough cash on hand to last a week. The country's central bank has called on the government to force businesses selling essential goods such as prescription medicines, food and fuel, to accept cash and to strengthen cyber-security measures in the financial system. With most banks no longer offering cash services at their branches, the central bank has also opened a number of cash depots to ensure access to cash across the whole country. Sign up here. https://www.reuters.com/markets/europe/even-euro-zone-king-cash-is-about-lose-its-throne-2024-12-19/

2024-12-19 11:47

FY loss 55 billion rand vs 26.1 billion a year ago Due in part to charge related to transmission unit separation Sees profit of more than 10 billion rand in fiscal 2025 JOHANNESBURG, Dec 19 (Reuters) - Eskom expects to report a full-year profit of more than 10 billion rand ($546 million), its first profit in eight years, thanks to operational stability and government's debt relief package, its CEO said as the power utility reported a wider loss on Thursday. Eskom Chief Executive Officer Dan Marokane told a press conference that the profit after tax for the year ended March 2025 would be a significant improvement from a loss of 55 billion rand reported in its financial year to March 31. "Financial year 2024 was the most painful but also a year of building in which the generation recovery started picking up momentum," said the CEO of the South African company. Eskom's power cuts, known locally as load-shedding, have curbed economic growth in Africa's most industrialised nation for more than a decade. The company implemented scheduled power cuts on 329 days during the financial reporting period. But a dramatic turnaround in Eskom's electricity supply this year has seen South Africa go without power cuts for about nine months, lowering its diesel spend by 11.9 billion rand, a presentation on the company's website showed. Lower debt and debt service costs will also contribute to the improved profit outlook, in addition to a 12.7% tariff hike, Eskom's Chief Financial Officer Calib Cassim said. In this reporting period, its gross debt decreased by 11.7 billion rand to 412.2 billion rand, thanks to a government debt-relief package worth 250 billion rand over the medium term. However, the benefits of this debt-relief "will be nullified" if nothing is done to tackle the escalating municipal debt of 95 billion rand as of November, Cassim told Reuters. The higher loss after tax of 55 billion rand in current reporting period from 26.1 billion rand in 2023 was because of a one-off tax charge linked to the separation of its transmission unit. Eskom is being split into three companies that will separately manage electricity generation, transmission and distribution, as part of a reform plan announced by President Cyril Ramaphosa in 2019 to make the utility more efficient. ($1 = 18.3056 rand) Sign up here. https://www.reuters.com/business/energy/south-africas-eskom-reports-3-bln-loss-split-transmission-unit-2024-12-19/

2024-12-19 11:44

Dec 19 (Reuters) - Geothermal energy startups are on the upswing with Big Tech companies looking to feed their power-intensive AI data centers, but long-term investments remain uncertain as oil majors double down on natural gas. Meta (META.O) , opens new tab and Alphabet's (GOOGL.O) , opens new tab Google are among the tech companies partnering with startups proposing to produce geothermal electricity, to power their data centers. Large data-center operators are also racing to meet the energy needs of artificial intelligence, accelerating a range of clean technologies in the process. "We believe geothermal, along with abundant natural gas, can be part of the all-of-the-above energy mix we need to meet the demand," said Trey Lowe, chief technology officer at U.S. shale gas producer Devon Energy (DVN.N) , opens new tab, an investor in geothermal startup Fervo Energy. Geothermal has been promoted as a faster way to generate carbon-free electricity than nuclear, and without the intermittency of wind and solar. But the startups still face high upfront costs, particularly for drilling, and long project approval times. That has soured some of the initial enthusiasm, with limited investments so far - analysts estimate just over $700 million in financing has been contributed to overall geothermal projects since 2020. Top shale oil producers Chevron (CVX.N) , opens new tab, Diamondback Energy (FANG.O) , opens new tab and Exxon Mobil (XOM.N) , opens new tab have also begun advocating for natural gas as the mainstay fuel for electric power, offering to work with utilities to couple their power plants with carbon sequestration projects that cut greenhouse emissions. "In general, (there is) a lot more interest from smaller oil and gas producers as well as service companies ... we've talked to Chevron and Shell (SHEL.L) , opens new tab but the supermajors seem to be taking more of a wait-and-watch view," said Cindy Taff, CEO of Sage Geosystems, which is developing energy storage and geothermal baseload technologies deep in the earth. Sage recently closed a $30 million fundraising led by U.S. shale gas producer Expand Energy (EXE.O) , opens new tab, formerly Chesapeake Energy, and plans to launch its Series B round in January. In December, Colorado-based Gradient Geothermal - which generates geothermal energy using existing oil and gas infrastructure - announced it was providing Chord Energy (CHRD.O) , opens new tab services to help generate power at one of its oil and gas sites in North Dakota. Gradient Chief Operating Officer Johanna Ostrum said most mid-size and smaller independent energy firms were interested in geothermal energy for their own power needs, not to create electricity for resale. Geothermal aims to compete on cost. The average levelized cost of electricity (LCOE) of the conventional geothermal projects in the U.S. is around $64 per megawatt-hour (MWh), which is competitive with other dispatchable energy sources such as combined cycle gas, which is around $77/MWh on average, and nuclear, which is around $182/MWh, according to energy consultancy Rystad Energy. Thanks to an improving investment landscape, more than 60 startups have sprung to life in the last two years, said Bryant Jones, executive director of industry association Geothermal Rising. "Texas is becoming the 'place to be' for geothermal exploration and development across the board," said Matt Welch at the Texas Geothermal Energy Alliance (TxGEA). "Much of this is due to an abundance of identified geothermal resources, 1-stop shopping permitting process and our regulatory certainty." Ten of the 22 geothermal startups launched in the U.S. between 2016 and 2022 were headquartered in Texas, according to a report , opens new tab published last year. The current lower commodity prices could also encourage more shale companies to diversify their revenue streams by tapping geothermal power. The sector is receiving increased bipartisan interest as well. The CLEAN Act and HEATS Act recently passed the House and are awaiting Senate approval. If they become law, it would make it easier to set up geothermal projects in the country. "Government incentives and private investments are increasing...combination of a low decline asset with high certainty on pricing piques the interest of many investors," said Devon's Lowe. Sign up here. https://www.reuters.com/technology/artificial-intelligence/ais-energy-hunger-fuels-geothermal-startups-natgas-rivalry-clouds-future-2024-12-19/

2024-12-19 11:29

Trade officials say internal discussions aimed at preparing for Trump administration India seeks broader trade, investment deal with Trump Plans to offer tax cuts on farm and other key imports Sees opportunity to draw U.S. firms away from China NEW DELHI, Dec 19 (Reuters) - India is preparing to offer tariffs cuts on some farm and other goods mainly imported from the U.S., aiming to clinch a broader trade and investment deal once president-elect Donald Trump takes charge, government and industry sources in New Delhi said. To tackle Trump's threat of a "reciprocal tax" on Indian goods for high tariffs, some officials of the Indian commerce ministry are ready to consider cuts on certain products such as pork, a senior government source said. Currently India slaps about a 45% import tariff on pork, which is mostly supplied by the U.S. Tariffs could also be reduced on high-end medical devices such as pace makers and luxury motor-cycles, including Harley Davidson, said a second official with direct knowledge of trade issues, citing the 25% to 60% tariffs on these products. With bilateral trade between India and the U.S. exceeding $118 billion in the 2023/24 fiscal year ending in March, and India enjoying a $32 billion trade surplus, the country is readying for trade talks with the U.S., aiming to clinch a broader trade and investment deal once president-elect Donald Trump takes office. To address Trump's concerns over the trade imbalance, officials have also proposed buying more LNG and defence equipment from the U.S., the second official said. India's energy imports from the U.S., including crude oil, refined fuel and coal, were estimated at $12 billion in fiscal 2024, and aircraft and parts at $2 billion. Such imports could rise by $5 billion to $10 billion annually, a third government source, said. The government and industry sources spoke on condition of anonymity because the discussions remain confidential. A commerce ministry spokesman declined to comment. Commerce ministry officials have previously said they would wait for the Trump administration to take office before any offer of trade talks, while working out plans for possible negotiations. Indian officials are also sensing an opportunity in Trump's plans to impose up to 60% tariffs on Chinese imports, by pitching India as an alternative manufacturing base. The government has held consultations on the issue within ministries, as well as with local think-tanks and industrial groups, said a government source who attended some of the meetings. TRUMP GOOD FOR INDIA "That is an opportunity," said Arvind Virmani, a government adviser and member of the state-run policy think-tank NITI Aayog. "It is in the interest of the U.S. and India that more of critical manufacturing or the sensitive manufacturing be done in India rather than China," he said, adding a "preferential trade cum investment deal," which is more ambitious than an earlier proposed mini-trade deal, would benefit both countries. Ajay Sahai, director general at the Federation of Indian Export Organisations, said high tariffs on goods from China would accelerate the process of global companies moving to India. "We have to do our homework... Overall the coming of Donald Trump is definitely good for India," he said. During Trump's first term, a proposed mini-trade deal aimed at addressing trade imbalances and strengthening trade ties through limited agreements faltered over disagreements on tariffs, market access and intellectual property. India is now seeking a broader deal, offering significant concessions including production-linked incentives for shipping and support for logistics companies. "Under Trump's 'Make in America programme', India could extend concessions for U.S. companies for manufacturing low-end products in India for their supply chains," said Ram Singh, a trade analyst at the state-run Indian Institute of Foreign Trade. In the semiconductor sector, for instance, he said, India could become a hub for the production of low-end chips as part of the global supply chain while U.S. companies focused on high-end products. Noting that India has attracted investments, such as Apple Inc's (AAPL.O) , opens new tab iPhone production, the sources said the government plans to offer further incentives in sectors like aircraft maintenance, semiconductors, electronics and renewables. India also plans to allow 100% foreign direct investment in the insurance sector, up from the current 74% in a move that could help leading US insurers like AIG (AIG.N) , opens new tab. The plan would require parliament approval. Sign up here. https://www.reuters.com/world/india/india-gears-up-potential-trade-deal-trump-targets-china-say-government-sources-2024-12-19/

2024-12-19 11:25

MADRID, Dec 19 (Reuters) - The amount of electricity used in Spain has inched up this year after falling for two consecutive years, with a record 56% coming from renewable sources such as wind and solar, according to estimates on Thursday from grid operator Red Electrica. Flagging electricity demand has been a key concern for Spain's renewables industry, which warned that the mismatch with increasing supply of green energy threatened future investments in the sector. Demand rose 1% - or 1.6% when adjusted by working hours and temperature - from 2023 to 248 terawatt hours, the preliminary figures show. Spain has set ambitious targets for renewables in its climate and energy plan. By the end of the decade, renewables are expected to generate 81% of the country's electricity. The 56% coming from renewables in 2024 represents an increase of six percentage points over last year, which had been the highest so far. Wind was again the main source of electricity generated in Spain, accounting for roughly 23% of the mix, followed by nuclear power at 19%. After a strong growth, solar photovoltaic occupied third place, surpassing gas plants. Carbon dioxide emissions tied to the production of electricity fell more than 16%, thanks to the growth of green energy sources and a sharp decline in use of gas to produce electricity. Sign up here. https://www.reuters.com/sustainability/climate-energy/renewable-energy-produced-record-56-spains-electricity-2024-2024-12-19/