2024-03-04 05:08

WOLFSBURG, Germany, March 4 (Reuters) - Volkswagen (VOWG_p.DE) , opens new tab will not consider a stock market listing for its battery unit until its factories are up and running and its unified battery cell is in use, the division's boss told Reuters, essentially ruling out a possible IPO before 2026. Thomas Schmall's comments provide the best indication so far for when Europe's top carmaker may float its PowerCo battery business on the stock exchange, as a follow-up to bringing in an outside investor or entering strategic partnerships with other cell manufacturers. "In a second step, an IPO remains an option for the future. However, this will only become an issue once the factories are up and running and the standardised cell is in use," he told Reuters. Volkswagen split off its battery unit in mid-2022, investing 20 billion euros ($21.7 billion) with partners to build plants reaching 240 gigawatt hours of capacity by 2030 in a move it hoped would give it greater control of its supply chain and help it catch up with Tesla (TSLA.O) , opens new tab. The unit, aiming for 20 billion euros in sales by the end of the decade, has so far announced three battery cell factories in Salzgitter, Valencia and Ontario to open in 2025, 2026 and 2027, respectively. It plans to use its unified cell, a single cell design available in three different chemistries, across at least 80% of its electric cars from 2025 - making 2026 the earliest time when Schmall's conditions for a listing would be met. PowerCo has so far shied away from being specific about the timing of a potential IPO, only saying it planned to have the business investor-ready from 2024. Schmall, for the first time, also ruled out another plant in Europe for now. "At the moment this is not on the table from both a competitive and cost perspective," he said. Capital-market enthusiasm for EVs has cooled as sales growth slowed and financial losses have piled up, with smaller companies from Polestar to Fisker struggling to amass the finances for EV development. The IPO market last year saw its lowest level of activity since 2016 as high borrowing rates held investors back. "Public market investors want to see cash flow," said Chris Burns, CEO of anode material supplier Novonix (NVX.AX) , opens new tab. Battery cell makers needed early offtake agreements and strong partnerships with carmakers to gain trust from the beginning, he added. "The sentiment is very poor... it's just not a good time," said Andy Leyland, founder of battery supply chain consultancy SC Insights. ($1 = 0.9211 euros) https://www.reuters.com/markets/deals/vw-battery-unit-rules-out-ipo-until-factories-running-unified-cell-use-2024-03-04/

2024-03-04 04:48

OPEC+ extends 2.2 mln bpd voluntary oil output cuts through Q2 Russia to cut oil output and exports by another 417,000 bpd Brent spreads widen after OPEC+ announcement March 4 (Reuters) - Oil prices settled slightly lower on Monday, as demand headwinds counterbalanced a widely expected extension of voluntary output cuts through the middle of the year by the OPEC+ producer group. Brent futures settled down 75 cents to $82.80 a barrel, while U.S. West Texas Intermediate (WTI) settled down $1.24, or 1.5%, to $78.74 a barrel. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) are extending their voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter to support prices amid global growth concerns and rising output outside the group. However, the end of a warm winter across the northern hemisphere is weighing on oil prices despite the OPEC+ announcement, said John Kilduff, partner at Again Capital LLC in New York. "We would have needed sustained heating oil demand to keep the complex up," Kilduff said. U.S. product supplies of distillate fuel oil, which includes heating oil, declined in December to 3.61 million barrels per day (bpd), down about 10% from November and the lowest since June 2020, data from the Energy Information Administration showed last week. Talk of a ceasefire in Gaza was also weighing on oil prices, Kilduff added. As market expectations for a rollover had grown more apparent recently, the OPEC+ reduction extension may have been increasingly priced in, said Walt Chancellor, an energy strategist at Macquarie. "With OPEC loadings appearing steady and aggregate OPEC supply potentially showing little effect from incremental voluntary cuts implemented in Q1, we do not view the extensions from the broader group as particularly impactful," he said. Still, Russia's announcement that it was cutting its oil output and exports by an additional 471,000 bpd in the second quarter surprised some analysts. Russia's additional cut is closely correlated with a 400,000 bpd drop in its refinery runs, largely stemming from Ukrainian drone strikes on refining assets across Russia, lead crude oil analyst at Kpler Viktor Katona said. While there has been little price movement because the OPEC+ decision had been expected, low-sulphur, or sweet, crude markets are tightening, widening Brent spreads, traders said. The premium of the first-month Brent crude contract to the six-month contract reached $4.56 a barrel. This structure, called backwardation, indicates a perception of tight prompt supply. The OPEC+ cuts will lead to lower production from the group at 34.6 million bpd in the second quarter, against an earlier forecast that output could rise above 36 million bpd in May as producers unwind supply cuts, said Jorge Leon, a senior vice president at consultancy Rystad Energy. It shows "robust determination to defend a price floor above $80 per barrel in the second quarter," he said. U.S. crude inventories are forecast to have risen by 2.6 million barrels last week, according to a preliminary Reuters poll on Monday, while distillates and gasoline stockpiles were seen down. "A long-standing deficit in U.S. crude stocks has been erased via a whopping 26 million barrel crude build during the past 4 weeks," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois. https://www.reuters.com/business/energy/oil-rises-after-opec-extends-output-cuts-2024-03-04/

2024-03-04 04:04

SINGAPORE, March 4 (Reuters) - MAN Energy Solutions plans to deliver later this year its first-ever engine fuelled by ammonia for installation on a new vessel in Japan and will be ready to offer ammonia-powered engines to its clients after 2027, its chief executive said. Ammonia is among several alternative fuels that shippers are exploring to reduce emissions. The shipping industry transports around 90% of world trade, but accounts for nearly 3% of the world's carbon dioxide emissions, and installing engines that burn cleaner fuels on vessels could help slow global warming trends. The ammonia-fuelled ship will take a year or two to undergo trials, while fuel supply, bunkering infrastructure and safety standards have to be created, MAN Energy Solutions CEO Uwe Lauber told Reuters late on Friday. "Actual sales (of ammonia engines), I would not foresee it before 2027," he said. Further cooperation with port authorities, including in Singapore, the world's biggest hub for ship refuelling, also known as bunkering, is required to ensure ammonia bunkering is carried out safely, Lauber said. While ammonia doesn't contain carbon, it is toxic and will require stringent safety measures when being handled as a ship fuel. Lauber did caution, however, that the output of green ammonia, which is produced from renewable fuels and the electrolysis of water and is considered a far cleaner fuel source, is unlikely to reach a certain scale before 2030, Lauber said. "If people believe this will come tomorrow that's a dream, this will not come. We need to build up infrastructure," he said. "A lot of work needs to be done also on safety devices with the classification societies. There are no rules today available on how to design an ammonia system on a ship," Lauber said. On Friday, MAN Energy Solutions opened a 20 million-euro ($21.6-million) workshop in Singapore, its largest outside Europe, to maintain, repair, and retrofit fleets using its dual-fuelled engines that can burn oil and alternative fuels such as liquefied natural gas and methanol. The company plans to increase the number of staff in Singapore to 400-500, up from 250 now, and will train clients on how to operate duel-fuel engines more efficiently, Lauber said. "The biggest burden is to address the existing fleet because our customers do not want to throw away their ships," he added. Depending on the ship's age, value and its engine type, Lauber estimated that 3,000-5,000 of the 20,000 ships globally that use MAN engines can be retrofitted to burn alternative fuels and the conversion package could cost between $25 million to $50 million. MAN is also conducting tests on its engines to use 100% biofuels, up from 30% currently, he said. ($1 = 0.925 euros) https://www.reuters.com/business/energy/man-energy-solutions-offer-ammonia-fuelled-ship-engines-after-2027-2024-03-04/

2024-03-04 03:47

CANBERRA, March 4 (Reuters) - Around 14,500 livestock sailed from Australia to Israel on Sunday for the second time, two months after their first voyage was curtailed by the threat of attack by Houthi militants in the Red Sea. The animals left Fremantle port in Perth on Jan. 5 but halfway to the Middle East, their ship abandoned its route and was ordered home by the Australian government. The turn-back was part of the havoc wrought by the Houthi strikes in support of Hamas militants in Palestine that have forced shippers to re-route to longer and more expensive journeys around southern Africa. The livestock endured weeks of limbo aboard the vessel and, since disembarking in mid-February, in holding facilities on land, where Australia's biosecurity laws require they must be quarantined. Activists and some politicians branded the animals' treatment as torture and demanded a swift end to the live sheep trade, but the government and industry say they have been in good condition and health. The agriculture ministry said in mid-February that four cattle and 64 sheep had died on board the Bahijah since it set sail on Jan. 5 but that these were below reportable mortality levels. The livestock were loaded onto the same ship they first sailed on, the MV Bahijah, over the weekend and left Fremantle on Sunday, said Geoff Pearson, the head of livestock at farm group WAFarmers. He said around 14,000 sheep and 500 cattle were on board and the remaining cattle would be exported on other ships in the coming weeks. The agriculture ministry said it had approved the shipment. "The exporter intends to transport the livestock to Israel without passing through the Red Sea," it said in a statement. The route from Australia around Africa to Israel takes around 33 days, industry figures say. Reuters has been unable to contact the exporter, Bassem Dabbah. The ship's manager, Korkyra Shipping, has not responded to requests for comment. https://www.reuters.com/world/asia-pacific/two-months-after-failed-voyage-14500-australian-livestock-sail-again-israel-2024-03-04/

2024-03-04 03:26

LONDON/SINGAPORE, March 4 (Reuters) - Bitcoin rallied to a two-year high on Monday, breaking above $68,000 as a wave of money carried it within striking distance of record levels. The price hit a session high of $68,580 and was last at $68,161. Bitcoin hit a record $68,999.99 in November 2021. The largest cryptocurrency by market value has gained 50% this year and most of the rise has come in the last few weeks when inflows into U.S.-listed bitcoin funds have surged. Spot bitcoin exchange-traded funds were approved in the United States earlier this year. Their launch opened the way for new large investors and has re-ignited enthusiasm and momentum reminiscent of the run up to record levels in 2021. "The flows are not drying up as investors feel more confident the higher price appears to go," said Markus Thielen, head of research at crypto analytics house 10x Research in Singapore. Net flows into the 10 largest U.S. spot bitcoin funds reached $2.17 billion in the week to March 1, with more than half of that going into BlackRock's iShares Bitcoin Trust (IBIT.O) , opens new tab, according to LSEG data. Smaller rival ether has hitched a ride on speculation that it too may soon have exchange-traded funds driving inflows. It's up 50% year-to-date and by Monday was trading at two-year highs, up 2.6% on the day at $3,518. The rally has come in tandem with records tumbling on stock indexes from Japan's Nikkei (.N225) , opens new tab to the S&P 500 (.SPX) , opens new tab and tech-heavy Nasdaq (.IXIC) , opens new tab and with volatility gauges in equities (.VIX) , opens new tab and foreign exchange (.DBCVIX) , opens new tab turning lower. "In a world where Nasdaq is making new all-time highs, crypto is going to perform well as bitcoin remains a high-volatility tech proxy and liquidity thermometer," said Brent Donnelly, trader and president at analysis firm Spectra Markets. "We are back to a 2021-style market where everything goes up and everyone is having fun." https://www.reuters.com/technology/bitcoin-bounces-beyond-64000-records-beckon-2024-03-04/

2024-03-04 02:36

March 4 (Reuters) - Japan's Electric Power Development (J-Power) (9513.T) , opens new tab on Monday lodged a A$380.9 million ($248.7 million) bid for Australian renewable energy firm Genex Power (GNX.AX) , opens new tab, as Japan's appetite for overseas acquisitions rapidly grows. Genex shares surged nearly 38% in early trade on Monday to A$0.255, a more than three-year high. The broader S&P/ASX200 (.AXJO) , opens new tab was up 0.2%. The A$0.275 per share offer represents a 48.6% premium on its last close from Friday. The Japanese firm, which owns a 7.7% stake in Genex, had previously made an offer to buy the company at a price of A$0.240 per share, Genex revealed in a regulatory filing on Monday. An independent committee of the board of directors of Genex had determined the earlier offer undervalued the Australian firm. Genex said the committee has unanimously determined the new offer is in the best interests of its shareholders. Outbound Japanese buyout activity has made its strongest start to the year so far in 2024 for six years, according to LSEG data. J-Power is a joint owner and developer of Genex's Kidston wind project and Bulli Creek clean energy project, which are both in the Australian state of Queensland. The new takeover bid requires 75% support from Genex shareholders and approval from Australia's Foreign Investment Review Board (FIRB). If that level of support is not reached, J-Power said it would launch an off market takeover at A$0.27 per share which would need at least 50.1% of shareholder backing to go ahead. Genex's major shareholder is Atlassian (TEAM.O) , opens new tab co-founder Scott Farquhar's Skip Capital, which holds 19.99% of the renewables firm. Farquhar in 2022 led a consortium that made an indicative bid for Genex at A$0.25 per share before walking away from the deal. Farquhar and Skip Capital did not immediately respond to requests for comment from Reuters. The move comes as part of the Japanese company's efforts to boost its renewable energy assets, including overseas, by 1.5 gigawatts by end-March 2026 from end-March 2018. The company held almost 10 GW of renewable energy in operation worldwide as of April 2023, according to its website. J-Power, which is Japan's major power generator with many coal-fired power plants and hydroelectric facilities, raised its 2030 emission reduction target last year by 1.3 million tons from 2013 levels. Under the new target, J-Power aims to cut its CO2 emissions by 46% by 2030 from 2013 levels of 48.77 million tons, against an earlier target of 44%. The latest goal is in line with Japan's national target. ($1 = 1.5316 Australian dollars) https://www.reuters.com/markets/deals/japans-j-power-makes-2487-mln-bid-australian-renewables-firm-genex-2024-03-04/