2024-02-28 12:49

BAMBOLIN, India, Feb 28 (Reuters) - India's coal sector is united about one thing. It doesn't matter if you are a miner, trader, utility or steelmaker, you are bullish, extremely bullish. The overarching theme at this week annual Coaltrans India conference in the western state of Goa is that coal production, imports and demand are all going to rise in coming years, and by substantial volumes. India may have committed to eventually starting to phase down consumption of the polluting fuel on its road to net-zero emissions by a targeted 2070, but for the coming decade the coal industry sees a ramp up. Even the most cautious of forecasts at the conference saw demand for all grades of coal reaching 1.5 billion metric tons by 2030, with some reaching as high as 1.9 billion. To put that in context, India's coal demand was 1.23 billion tons, composed of domestic production of 964 million tons and imports of around 266 million. Put another way, even the more pessimistic of forecasts expects an increase of nearly 300 million tons of coal demand in India in the next six years, an increase of 25%. To put the scale of the increase in context, 300 million tons is more than the total annual demand of Germany, the fourth-biggest coal-consuming nation after China, India and the United States. The optimism over coal's future in India's energy mix is largely built on a shift in the thinking of the government of Prime Minister Narendra Modi to prioritise energy security and domestic resources over reducing carbon emissions to mitigate climate change. The thinking is that India has massive reserves of coal, which it can mine relatively cheaply, and if it continues to invest in infrastructure, it can move the coal from where it is produced to where it will be burnt in power plants and factories. The more the world's most-populous nation can use domestic energy, the less it has to pay for expensive imports in the form of crude oil and liquefied natural gas. Although crude oil and its refined products don't compete with coal in power generation, they may increasingly in the future as the shift to electric vehicles gathers pace. India's industrial users of coal, such as cement and ceramics, are also being encouraged to look at using gas produced from coal to power their plants, rather than imported coking coal, met coke and LNG. NOT ENOUGH RENEWABLES Another factor worth noting about the bullish view of India's coal sector is that they believe in the strong growth scenario even though the South Asian nation is ramping up the deployment of renewable energies such as wind, solar, battery storage and pumped hydropower. India is likely to exceed its target for 500 gigawatts (GW)of renewable energy capacity by 2030, but the demand for electricity is likely to outpace the capacity additions. This means India will continue to increase its fossil fuel generation, and lion's share of this will be coal, with 85 GW of new plants already under construction and likely to come online by 2030, which would boost coal-fired capacity by just over one-third from the current 237 GW. Steelmakers are also poised to increase demand for coal, the key raw material used to turn iron ore into crude steel. India produced about 140 million tons of steel in 2023, and the government is targeting that to rise to 300 million by 2030. That figure is likely optimistic, but it's possible that the country can produce more than 200 million tons in that time frame, according to several steel makers present at the Coaltrans event. India's steel and sponge iron sectors imported about 93 million tons of coal in 2023, and consultants iEnergy Natural Resources estimate this will rise to 135 million by 2030. If there was any disagreement on the outlook for India's coal sector at the conference, it was the likely future mix of domestic production and imports. India doesn't produce significant volumes of coking coal, so any increase in steel production is likely to rise in higher imports of coking coal and met coke, a beneficiated product made mainly from coking coal, but can contain some lesser quality grades. The main debate is whether a combination of state-controlled behemoth Coal India (COAL.NS) , opens new tab and newly-operating private coal mines will be able to raise output enough to displace imported thermal coal for the power sector. India is investing heavily in improving the rail system to transport coal, but it's still likely that coastal power plants in the south and west of the sub-continent will rely on imported fuel for years to come. The opinions expressed here are those of the author, a columnist for Reuters. https://www.reuters.com/markets/commodities/indias-coal-sector-sees-huge-leaps-output-demand-2024-02-28/

2024-02-28 12:40

Feb 28 (Reuters) - European airlines are signing sustainable aviation fuel (SAF) deals needed to meet carbon-reduction targets set by the European Union. The adoption of alternative fuels made from bio-based materials could cut carbon emissions by up to 80% compared to conventional fuel, and is seen as a means of helping the sector reach its net zero emissions goal by 2050. In November 2023, a Virgin Atlantic plane made a 100% SAF-powered flight from London to New York City to highlight the importance of the alternative fuel's use. SAF currently makes up , opens new tab less than 0.1% of aviation fuel used globally and costs three times as much as regular jet fuel when made from waste oils, with other versions made from green hydrogen costing even more. Here are some deals signed so far: AIR FRANCE-KLM (AIRF.PA) , opens new tab In November 2023, the group invested $4.7 million in DG Fuels' SAF production plant in the U.S. state of Louisiana, a step towards its target to use SAF for 10% of its flights by 2030. It also said that in September 2023 it had signed a memorandum of understanding (MoU) with Austrian energy company OMV (OMVV.VI) , opens new tab to buy more than 300,000 metric tons (100 million U.S. gallons) of SAF by 2030. The deal was followed by an offtake agreement for OMV to supply the airline with 2,000 metric tons of SAF in 2023. EASYJET (EZJ.L) , opens new tab In September 2022, the airline signed a five-year SAF supply agreement with Q8Aviation, the jet fuel unit of Kuwait Petroleum International. FINNAIR (FIA1S.HE) , opens new tab In June 2022, the Finnish carrier signed a five-year deal worth $192 million with U.S.-based renewable fuel producer Gevo (GEVO.O) , opens new tab to buy 21,000 metric tons of SAF per year from 2027. IAG (ICAG.L) , opens new tab In February, the owner of British Airways and Iberia signed a deal to buy 785,000 metric tons of e-SAF, which is considered to be even cleaner but is more expensive than SAF made of biofuel. E-SAF is made synthetically, extracted from renewable electricity, water, and CO2 and converted into a fuel via a power-to-liquid process. In August 2023, it signed an agreement to buy 14,700 metric tons of SAF in 2023 from U.S. energy firm Phillips 66 (PSX.N) , opens new tab. Microsoft (MSFT.O) , opens new tab was also involved in the deal as part of its efforts to cut carbon emissions of its business travel and air freight. In November 2021, IAG and Southwest Airlines (LUV.N) , opens new tab jointly agreed to buy nearly 920,000 metric tons of SAF created from woody biomass in Mississippi. Under the deal, IAG will buy 220,000 metric tons of SAF over 10 years starting 2026, while Southwest will buy 670,000 tons over 15 years starting from the same year. ICELANDAIR (ICEAIR.IC) , opens new tab The Icelandic carrier in March 2023 said it had signed , opens new tab an MoU with green hydrogen developer IdunnH2 for the use of up to 45,000 metric tons of SAF from 2028 onwards. JET2 (JET2.L) , opens new tab Britain's Jet2 said in April 2023 it was making a "major investment" in a SAF production plant in northern England, with production expected to start in 2027. LUFTHANSA (LHAG.DE) , opens new tab Germany's flagship carrier in August 2023 signed a letter of intent on the production and supply of SAF with specialty chemicals firm HCS Group. Production in Germany is set to start in 2026 with a volume of 60,000 metric tons per year. The carrier in 2022 strengthened its SAF partnership with OMV, which also supplies the biofuel to Austrian airlines at Vienna International Airport. NORWEGIAN AIR (NAS.OL) , opens new tab The Norwegian carrier in April 2023partnered , opens new tab with a local producer of electrofuels, Norsk e-Fuel, to build a SAF production plant in the country. The plant is scheduled to be operational in 2026 and it should secure about 20% of Norwegian's total SAF needs by 2030. RYANAIR (RYA.I) , opens new tab The Irish airline in October 2023 purchased 500 metric tons of SAF from OMV (OMVV.VI) , opens new tab, as part of an MoU to buy up to 160,000 tons of SAF over eight years starting from 2023. Ryanair also signed a supply agreement with Shell (SHEL.L) , opens new tab in December 2022, to buy 360,000 metric tons of SAF from 2025 to 2030, a fifth of what it needs to meet its target to power 12.5% of flights with the fuel by 2030. It has struck similar deals with Spain's Repsol (REP.MC) , opens new tab, set to supply up to 155,000 tons of SAF between 2025 and 2030, and Finland's Neste (NESTE.HE) , opens new tab, which powers all Ryanair's flights at Amsterdam Airport Schiphol. VIRGIN ATLANTIC The British airline partnered , opens new tab with Neste (NESTE.HE) , opens new tab in 2022 to acquire 2,000 metric tons of SAF. In December 2022, it agreed , opens new tab to buy 260,000 tons (85 million U.S. gallons) of SAF from Gevo by 2030, via a joint venture with U.S. airline Delta. WIZZ AIR (WIZZ.L) , opens new tab The budget carrier said in April 2023 it would invest 5 million pounds ($6.1 million) in biofuel company Firefly, expecting to supply up to 525,000 metric tons of SAF to its British operations from 2028. ($1 = 0.8151 pounds) https://www.reuters.com/business/aerospace-defense/european-airlines-secure-supplies-low-carbon-jet-fuel-2023-11-28/

2024-02-28 12:38

NEW YORK, Feb 28 (Reuters) - Moelis & Co (MC.N) , opens new tab has hired Stephen Trauber to run its global energy business, with the prolific dealmaker joining as part of a significant expansion of its investment banking capabilities amid record acquisition activity in the oil and gas space. As well as retaining Trauber, Moelis is also hiring senior dealmakers Muhammad Laghari and Alexander Burpee from Guggenheim Securities, according to a statement to Reuters on Wednesday. The oil and gas industry in the United States is experiencing a wave of consolidation, as producers seek to increase their scale, drive down costs and secure the best drilling locations. Last year saw record levels of dealmaking among shale companies, with the pattern continuing into 2024. The hires - as some investment banks have been cutting positions - show an effort by Moelis to tap into this merger boom and build upon its existing expertise in advising energy clients in the Middle East and Europe, including Saudi Aramco (2222.SE) , opens new tab and Abu Dhabi National Oil Co. Trauber joins Moelis as global head of energy and clean technology, based in Houston. The veteran banker retired from Citigroup (C.N) , opens new tab in 2022, where he was co-head of its energy investment bank, having advised on more than $700 billion of energy transactions over a 35-year career, per the statement. "Steve is a recognized leader in the industry who has played a key role in many of the energy sector's landmark transactions," said Navid Mahmoodzadegan, co-founder of Moelis. Laghari and Burpee will join Moelis as managing directors effective March 4, and will bolster the bank's ability to advise both oil and gas producers, as well as midstream companies, the statement said. Their hiring, first reported by Reuters in December, will see the duo reunite with Trauber, having been at Citigroup before joining Guggenheim in 2022. Both have more than 15 years of energy experience, the statement added. The push into the U.S. oil and gas sector comes after Moelis formed its Clean Technology Group in September, which focuses on advising companies on deals in the energy transition space. https://www.reuters.com/business/energy/moelis-hires-energy-dealmaker-trauber-oil-gas-ma-push-2024-02-28/

2024-02-28 12:37

MADRID, Feb 28 (Reuters) - Spanish power utility Endesa (ELE.MC) , opens new tab is in advanced negoatiations to sell stakes in renewable assets and may have some news on the process in the first half of this year, its Chief Financial Officer Marco Palermo said on Wednesday. Like its peers such as Repsol and Iberdrola, Endesa, which is controlled by Italy's Enel (ENEI.MI) , opens new tab is seeking to raise cash to invest in new renewable projects by selling more developed ones. https://www.reuters.com/business/energy/endesa-advanced-talks-renewable-assets-stake-sale-2024-02-28/

2024-02-28 12:33

LONDON, Feb 28 (Reuters) - France had no prior knowledge of Microsoft's partnership with tech startup Mistral AI, a finance ministry official told Reuters, denying suggestions that French lobbying for looser European AI rules had been on behalf of the U.S. tech giant. Earlier this week, Microsoft (MSFT.O) , opens new tab said it had made a 15-million euro ($16 million) investment in Mistral, and would soon make the Paris-based company's AI models available via its Azure cloud computing platform. Following the announcement, a Microsoft spokesperson told Reuters it had invested in Mistral without taking a stake. Later, Microsoft clarified that its investment would convert into equity in Mistral's next funding round, a common practice among big tech companies investing in AI startups. Mistral and the French government had previously lobbied for looser regulations under the European Union's wide-ranging AI Act, ostensibly to avoid over-regulating smaller startups. Some EU lawmakers on Tuesday , opens new tab questioned whether Mistral had lobbied on Microsoft's behalf, and the extent of the French government's knowledge of the partnership. "That story seems to have been a front for an American-influenced big tech lobby," Kim van Sparrentak, an EU lawmaker who worked closely on the AI Act, told Reuters. "The Act almost collapsed under the guise of no rules for 'European champions', and now look. European regulators have been played." But the French government denied any prior knowledge of the agreement. "Yesterday, we learned of the technological partnership between Mistral and Microsoft. It's great news that a young French company has joined Microsoft's previously exclusive partnership with OpenAI on its Azure platform," a French finance ministry official told Reuters. "France, like all other member states, took part in the writing the AI Act. At the time, we were not aware of this partnership project, but it has no specific consequences." Microsoft and Mistral did not immediately respond to requests for comment. https://www.reuters.com/technology/france-had-no-prior-knowledge-microsofts-mistral-ai-deal-official-says-2024-02-28/

2024-02-28 12:29

JOHANNESBURG, Feb 28 (Reuters) - Harmony Gold (HARJ.J) , opens new tab, South Africa's biggest gold miner by volume, says it will pay a record interim dividend after a jump in output of the precious metal and profits in the six months through December. The Johannesburg-based gold miner on Wednesday declared an interim payout of 147 rand cents per share, increasing returns to investors as higher gold price, improved mine grades and higher output helped to lower costs and boosted revenues by 35%. Harmony said its net profit in the first-half surged 220% to almost 6 billion rand. Harmony is among South Africa's few remaining gold miners squeezing profits from some of the world's most costly, ageing and deepest gold mines. Gold output jumped 14% to about 832,000 ounces and production for the year is forecast at about 1.48 million ounces. Output was buoyed by a 30% increase in production from its Mponeng mine. Harmony said it also approved a plan to extend the life of Mponeng, the world's deepest gold mine, by 20 years from seven currently. Like most of its South African peers, Harmony is shifting focus away from home country to gold and copper projects in Papua New Guinea, where it already owns a producing operation, and Australia. https://www.reuters.com/markets/commodities/south-africas-top-gold-miner-boosts-dividend-after-profit-jumps-2024-02-28/