2024-10-16 22:00

States, industry challenged EPA rule on carbon emissions Rule mandates 90% emission cut by 2032 for certain plants Oct 16 (Reuters) - The U.S. Supreme Court declined on Wednesday to put on hold a new federal rule targeting carbon pollution from coal- and gas-fired power plants at the request of numerous states and industry groups in another major challenge to President Joe Biden's efforts to combat climate change. The justices denied emergency requests by West Virginia, Indiana and 25 other states - most of them Republican led - as well as power companies and industry associations to halt the Environmental Protection Agency rule while litigation continues in a lower court. The regulation, aimed at cutting greenhouse gas emissions that drive climate change, took effect on July 8. The rule would require existing coal and new natural gas-fired plants eventually to reduce emissions including by capturing and storing carbon dioxide. The court did not explain its brief order denying the requests by the challengers, although conservative Justice Clarence dissented from the decision. The challengers "have shown a strong likelihood of success on the merits as to at least some of their challenges" to the rule, Justice Brett Kavanaugh said in a written statement accompanying the order, joined by fellow conservative Justice Neil Gorsuch. They are, however, "unlikely to suffer irreparable harm" before the lower court completes its review of the dispute because they do not have to begin work to comply with the rule until June 2025, Kavanaugh added. On Oct. 4, the justices rejected efforts to pause other new U.S. air pollution rules to tighten limits on mercury and methane. The EPA's new carbon pollution rule, issued under the landmark Clean Air Act anti-pollution law, was issued two years after a major ruling by the Supreme Court in 2022 undercutting the agency's power to issue sweeping regulations to force an electric-generation shift from coal to cleaner energy sources. The EPA has said efforts to address climate change and its impacts such as extreme weather and rising sea levels must include the power sector because fossil fuel-fired plants make up 25% of overall domestic greenhouse gas emissions. Notably, the rule mandates that coal plants operating past 2038 and certain new gas plants reduce emissions by 90% by 2032 including by using carbon capture and storage systems that extract carbon dioxide from plant exhaust and sequester it underground. The EPA has called the technology proven and technically feasible. The rule's challengers have said it has not been shown effective at the scale predicted by the EPA. The rule's requirements are "really a backdoor avenue to forcing coal plants out of existence," West Virginia, a major coal producer, and other state challengers said in a written filing. The Supreme Court's 2022 ruling was based on what is called the "major questions" legal doctrine embraced by its conservative justices that requires explicit congressional authorization for action on issues of broad importance and societal impact. The states and certain other challengers contend that the EPA's new rule likewise implicates a major question and exceeds the agency's authority. Numerous states and industry players filed multiple lawsuits challenging the rule in the U.S. Court of Appeals for the District of Columbia Circuit, which on July 19 denied requests to pause the regulation pending its review. The case did not implicate a major question because the EPA's actions setting plant limits were "well within" its statutory authority, the D.C. Circuit stated. Sign up here. https://www.reuters.com/legal/us-supreme-court-wont-pause-epa-power-plant-emissions-rule-2024-10-16/

2024-10-16 21:54

Copper output rises 4% Iron-ore output beat Jansen Stage 1 now 58% complete Oct 17 (Reuters) - Global miner BHP (BHP.AX) , opens new tab beat first-quarter iron ore output estimates on Thursday, spurred by easing of bottlenecks at its Western Australia operations amid efforts by China to revive its grappling property market and faltering economic growth. The world's largest listed miner over the last year has ramped up the South Flank mine to full production capacity and streamlined its port operations for its Western Australian iron ore business. The ramp-up comes at a time when mining rivals including Vale (VALE3.SA) , opens new tab and Rio Tinto (RIO.AX) , opens new tab are moving to expand their supplies. Vale plans to further lift its production, while Rio's Simandou mine will begin production next year. BHP, which is diversifying into potash, said the $10.5 billion Jansen Stage 1 project was 58% complete. The miner's upbeat iron ore production update comes as China, the commodity's largest purchaser, has been announcing a slew of stimulus measures to support its downbeat economic recovery. BHP said iron ore output from Western Australia on a 100% basis was 71.6 million metric tons in the three months to Sept. 30, beating a Visible Alpha consensus estimate of 70.7 Mt, according to a Macquarie note. "Upcoming stimulus (from China) is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence," said CEO Mike Henry. BHP, which has been aiming to expand its copper operations, recorded a 4% rise in the metal's output for the quarter, reflecting improved performance at its Escondida mine in Chile. Analysts at Citi said Escondida output rose on higher grades and throughput at the Chilean mine. Earlier this year, BHP made a $49 billion bid for British copper major Anglo American (AAL.L) , opens new tab, which did not materialise. But BHP joined hands with Lundin Mining (LUN.TO) , opens new tab to take over Filo Corp (FIL.TO) , opens new tab, gaining access to more copper assets. Copper, used widely across the globe, is an ideal conductor of electricity and easily malleable, qualities that have made it widely popular for use in wiring, engines, construction equipment, electronics and other devices. BHP's shares were up 0.3% at A$43.67 in early trade. Sign up here. https://www.reuters.com/markets/commodities/bhp-first-quarter-iron-ore-output-rises-3-2024-10-16/

2024-10-16 21:48

Oct 17 (Reuters) - A look at the day ahead in Asian markets. Markets across Asia should open on a firm footing on Thursday, supported by a rebound on Wall Street and softer Treasury yields the day before, and growing signs that global inflationary pressures are broadly easing. Asia's economic calendar on Thursday sees the release of the latest international trade data from Japan and Singapore, and Australian unemployment. The main three U.S. indices all closed in the green on Wednesday with banks and small caps leading the rise. Big Tech, however, remains under pressure, which may intensify the spotlight even more on TSMC's third quarter results on Thursday. Taiwan Semiconductor Manufacturing Co, the main producer of advanced chips used in artificial intelligence applications, is expected to report a 40% leap in profit to T$298.2 billion ($9.27 billion) thanks to soaring demand. The world's largest contract chipmaker, whose customers include Apple, Nvidia and ASML, has benefited from the global surge towards AI. A miss or weak guidance, however, could trigger another wave of selling across Big Tech. But assuming analysts' estimates are met or even exceeded, the backdrop to Thursday's session in Asia looks favorable, despite the dollar's tick higher. The VIX index of U.S. stock market volatility dipped back below 20.0 on Wednesday and oil fell for a fourth day in a row. Falling oil prices are often a warning of weak global economic activity and demand. A huge miss and surprising slump in Japanese machinery orders on Wednesday will only have strengthened those concerns. But the disinflationary pull from oil's weakness cannot be ignored, and if investors like one thing it's lower interest rates. In that light, investors will have been encouraged by the price signals from around the world over the last 24 hours. Inflation in New Zealand was slightly weaker than expected, inflation in Britain was much weaker than expected and sure to cement UK rate cut expectations, while the Bank of Thailand delivered a surprise rate cut. With the European Central Bank widely expected to cut rates on Thursday by 25 basis points for a second meeting, to 3.25%, global financial conditions are loosening. Rates traders currently expect the Fed, ECB and Bank of England each to cut rates another 50 bps and the Bank of Canada to cut at least another 75 bps by the end of the year. That's a lot of easing, especially without a recession, at least in the US. Indeed, if there is a US recession coming, someone forgot to tell the corporate bond market, where spreads are now the tightest in nearly 20 years. This is usually where the first hints of recession are seen as investors move to price the impending impact of rising unemployment, slowing growth and consumer weakness on companies' debt loads. Here are key developments that could provide more direction to markets on Thursday: - Australia unemployment (September) - Japan trade (September) - Taiwan's TSMC earnings (Q3) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2024-10-16/

2024-10-16 21:38

Decision marks another blow to California's fuel supplies Company cites poor profits compared with its other plants California isolated from U.S. Gulf Coast and Midwest refining centers Oct 16 (Reuters) - Phillips 66 (PSX.N) , opens new tab said it will shut its large Los Angeles-area oil refinery late next year, delivering a blow to California's fuel supply amid complaints about the state's high prices. Phillips 66 CEO Mark Lashier cited "market dynamics" for the decision. The Los Angeles facility provides lower profits than other company oil processing plants, a spokesperson said. California, the most populous U.S. state, consistently experiences some of the nation's highest average gas prices, leading to an often tense relationship between the state and oil companies. Phillips' exit will leave a hole in California's motor fuel supply, which has seen two other refineries close since 2020, including one by Phillips. The Phillips 66 Los Angeles refinery produces 85,000 barrels per day of gasoline and 65,000 barrels per day of diesel and jet fuel. The announcement came a day after California Governor Gavin Newsom signed a bill requiring the state's oil refiners to maintain minimum fuel inventories, and authorizing the state's Energy Commission to ensure that refiners have a plan to prevent shortages during maintenance outages. California is geographically isolated from U.S. Gulf Coast and Midwest refining centers, and must produce all its own motor fuels or import them from Asia. Motorists this week are paying about 46% more per gallon for gas than the national retail average of $3.20, according to AAA. Phillips earlier this year converted its Rodeo, California, refinery to producing renewable diesel from fats, vegetable oils and greases from making gasoline and diesel from crude oil. Marathon Petroleum in 2020 stopped producing fuels at a refinery in Martinez, California, citing poor profits. The Los Angeles facility employs about 600 Phillips 66 employees and 300 contractors. Mike Smith, chair of the United Steelworkers oil bargaining program, said the planned closing "is a devastating loss for workers and the surrounding communities." The union intends to bargain for severance pay and benefits for affected workers. Houston-based Phillips 66 is discussing with real estate developers the future use of the refinery's 659 acres now occupied by two facilities connected by a pipeline. Sign up here. https://www.reuters.com/markets/commodities/phillips-66-cease-operations-los-angeles-area-refinery-2024-10-16/

2024-10-16 21:09

WASHINGTON, Oct 16 (Reuters) - The U.S. on Wednesday opened applications for up to $900 million in funding to support the initial domestic deployment of small modular reactor nuclear technology. WHY IT'S IMPORTANT President Joe Biden's administration believes nuclear power is critical in the fight against climate change because it generates electricity virtually free from emissions, and that U.S. nuclear power capacity must triple to meet emissions goals. Small modular reactors (SMRs) differ from traditional larger nuclear plants in that they have simpler designs and can be scaled to demand. Backers say they are inherently safer and will be less costly because they can be built in factories rather than at site. SMRs could be used to generate heat or power and for desalination. But no U.S. commercial SMR has been built yet. Critics say they will be more expensive to run than larger reactors because they will struggle to achieve economies of scale. Like the large reactors, they will also produce long-lasting radioactive waste for which there is no final depository in the U.S. HOW WILL THE MONEY BE DISTRIBUTED? The funds come from the 2021 bipartisan infrastructure law and the Energy Department anticipates offering it in two tiers. Up to $800 million will go to milestone-based awards for support of first mover teams of utility, reactor vendor, constructor, end users and others. Up to $100 will spur additional SMR deployments by addressing gaps that have hindered the domestic nuclear industry in areas such as design, licensing, supplier development, and site preparation, the department said. KEY QUOTE “Revitalizing America’s nuclear sector is key to adding more carbon-free energy to the grid and meeting the needs of our growing economy - from AI and data centers to manufacturing and healthcare,” said U.S. Secretary of Energy Jennifer Granholm. Sign up here. https://www.reuters.com/sustainability/climate-energy/us-opens-applications-900-million-small-nuclear-reactors-2024-10-16/

2024-10-16 20:44

Oct 16 (Reuters) - U.S. railroad operator CSX (CSX.O) , opens new tab reported third-quarter profit below Wall Street estimates on Wednesday, as lower coal volumes offset benefits from stronger pricing, sending its shares down 3.4% in after the bell trade. Domestic coal demand has been hampered by a consumer shift to cheaper natural gas stockpiles for energy, while adverse weather conditions and work stoppages at Canadian railroads posed various operational challenges. The company also said coal demand will continue to remain stressed in the short term due to sluggish performance in the U.S. steel and industrial sectors. CSX's operating margin, a keenly watched metric, was 37.4% for the quarter, representing a 180 basis-point improvement from a year ago. The Jacksonville, Florida-based company reported a profit of 46 cents per share for the quarter through September. Analysts' were expecting a profit of 48 cents per share, according to data compiled by LSEG. It reported revenue of $3.62 billion in the third quarter, up 1% from a year ago, compared with analysts' average estimate of $3.67 billion. Sign up here. https://www.reuters.com/business/autos-transportation/railroad-firm-csx-misses-profit-estimates-sluggish-coal-volumes-2024-10-16/