2023-11-20 23:17
WASHINGTON, Nov 20 (Reuters) - The U.S. will lay out the first international strategy to commercialize nuclear fusion power at the upcoming UN climate summit in Dubai, U.S. Special Envoy on Climate Change John Kerry will say on Monday, two sources familiar with the announcement said. Fusion could have an important advantage over today's nuclear fission plants that split atoms, as it does not produce long-lasting radioactive waste. If deployed successfully, it could also provide a cheap source of carbon-free electricity. The former secretary of state will announce his plan to lay out the strategy that foresees strengthened cooperation with other countries aiming to speed commercialization on a tour of fusion company Commonwealth Fusion Systems near Boston. The UK and the United States on Nov. 8 signed a cooperation agreement on fusion. Fusion, the process that powers the sun and stars to generate electricity, can be replicated on Earth with heat and pressure using lasers or magnets to smash two light atoms into a denser one, releasing large amounts of energy. In August, scientists using laser beams at a national lab in California repeated a fusion breakthrough called ignition where for an instant the amount of energy coming from the fusion reaction surpassed that concentrated on the target. Kerry, who as a U.S. senator more than a decade ago backed legislation that would fund fusion research at the Massachusetts Institute of Technology, will tour Commonwealth with Claudio Descalzi, CEO of Italian energy company Eni (ENI.MI). Eni is working on four fusion research partnerships in Italy and the U.S., including one with Commonwealth. "I will have much more to say on the United States’ vision for international partnerships for an inclusive fusion energy future at COP28," Kerry said in a statement. Decades of federal investment is transforming fusion from an experiment to "an emerging climate solution", he added. HURDLES But there are hurdles to fusion's producing commercial electricity. The energy output of last year's fusion experiment at the U.S. National Ignition Facility was only about 0.5% of the energy that went into firing up the lasers, some scientists estimate. Scientists have so far only reached scattered instances of ignition, not the many continuous ignition events per minute needed to generate electricity to power homes and industries. There are also regulatory, construction and siting hurdles in creating new fleets of power plants to replace parts of existing energy systems. Some critics say fusion will be too expensive and take too long to develop to help in the fight against climate change in the foreseeable future. A source familiar with the planned announcement said the fusion strategy will be a framework that lays out plans for the global deployment of the technology that could gain support from international partners. The source said COP28, which runs from Nov. 30 to Dec. 12, will "be the starting gun for international cooperation" on nuclear fusion, which Kerry will tout as a climate "solution, not a science experiment". Despite what scientists say is an urgent need for an energy transition to fight climate change, investment has slowed into many parts of the clean energy business this year due to economic uncertainty and inflation. In 2023, international fusion companies have garnered about $1.4 billion in investments for a total of about $6.21 billion in mostly private money, the Fusion Industry Association (FIA) said, down from about $2.83 billion in new investment last year. But the number of companies getting investments rose to 43 from 33, spanning a dozen countries, according to the FIA, including the U.S., where Commonwealth is one of about 25 companies. Other countries pursuing fusion include Australia, China, Germany, Japan, and the UK. Of the two main types of fusion, one uses lasers to concentrate energy on a gold pellet containing hydrogen. The other, on which Commonwealth and many other companies are focusing, uses powerful magnets to trap plasma, or gaseous hydrogen heated to about 100 million degrees Fahrenheit (55 million degrees Celsius) until atoms fuse. https://www.reuters.com/sustainability/climate-energy/us-announce-nuclear-fusion-strategy-cop28-2023-11-20/
2023-11-20 22:46
Nov 20 (Reuters) - Denmark's Orsted and Eversource Energy's (ES.N) South Fork offshore wind project installed the first of its 12 turbines, New York State Governor Kathy Hochul announced on Monday, moving the country closer to its first wind farm in federal waters. Last week, the state offered a fresh solicitation as a lifeline to the troubled offshore wind industry which says its existing power sales contracts would not cover the cost of building and financing the projects. European energy companies Orsted (ORSTED.CO), Equinor (EQNR.OL) and BP (BP.L) have taken a combined $5 billion of writedowns on U.S. offshore wind projects that are not even completed. The New York State Energy Research and Development Authority (NYSERDA) said that the South Fork Wind project will produce clean power for around 70,000 Long Island homes and support New York's goal to develop 9,000 megawatts (MW) of offshore wind by 2035. The 132-MW project, located 35 miles (56 km) east of Montauk Point in New York, is expected to enter service in early 2024, and all 12 Siemens Gamesa wind turbine generators are projected to be installed by the end of 2023 or early 2024. In recent months, rising materials costs, high interest rates, and supply chain delays have prompted project developers to cancel or try to renegotiate power contracts for the first commercial-scale wind farms in the United States, with operating start dates between 2025 and 2028. On Nov. 30, New York will issue a new offshore wind solicitation open to all bidders, including those with existing contracts, allowing the companies to re-offer their planned projects at higher prices and exit their old contracts. The offshore wind projects that the companies are developing are Orsted's 924-MW Sunrise, and the joint venture between Equinor and BP's 816-MW Empire Wind 1, 1,260-MW Empire Wind 2 and 1,230-MW Beacon Wind. https://www.reuters.com/business/energy/new-yorks-south-fork-offshore-wind-project-installs-first-12-turbines-2023-11-20/
2023-11-20 22:41
Nov 20 (Reuters) - Issuance of securities backed by U.S. commercial real estate (CRE) loans posted a rare rebound last quarter, but sector struggles will likely persist through 2023, according to ratings agency DBRS Morningstar. The third quarter saw roughly $3 billion in new collateralized loan obligations (CLOs) backed by CRE loans, according to a Friday report by DBRS. This marks a significant turn from the second quarter, which saw less than $1 billion in CRE CLO issuance. Despite last quarter's rebound, DBRS analysts noted they anticipate a dropoff in issuance volume in the fourth quarter, as challenges including elevated interest rates and vacancies persist. "The modest spike in volume in the third quarter may have represented several quarters of origination volume by issuers, so with the latest transaction, it will take time for them to accumulate enough collateral for the next transaction," the analysts wrote. Total 2023 issuance is likely to be less than $10 billion, well below market expectations, the report noted. Office-backed loans represented almost half of all CRE delinquencies in the third quarter, according to DBRS. Office owners across the country continue facing several struggles, including the post-pandemic remote working trend. However, loans on lodging properties saw the largest jump in delinquencies quarter to quarter, the report noted, jumping to 3.40% in September from 0.28% in June. Loans secured by self-storage properties saw the second-largest quarterly rise in delinquencies. An overall 3.27% delinquency rate for CRE CLOs in the third quarter was roughly in line with the second quarter rate, according to DBRS. There were $2.67 billion in delinquent CRE CLO loans as of September, a $20 million increase from the second quarter. "DBRS Morningstar is aware the current interest rate and investment sales environments have made loan refinancing and property sale exit strategies increasingly difficult for borrowers, and as such, expects the majority of borrowers will need to exercise built-in loan extension options," the report noted. https://www.reuters.com/markets/us/us-commercial-property-loan-activity-drop-off-q4-after-q3-pickup-dbrs-2023-11-20/
2023-11-20 22:41
TORONTO/LONDON, Nov 20 (Reuters) - Canada's First Quantum Minerals (FM.TO) will carry out maintenance at its Panama mine from Nov. 23 due to coal supplies being blocked by protestors opposing the government's contract with one of the world's biggest and newest copper mines, two sources familiar with the discussions said on Monday. This move would effectively suspend production at the Cobre Panama mine until coal supplies resume as the mine cannot operate without power, one of the sources said. The sources declined to be identified as the information is not public. Copper prices hit a two-month high while the company's stock fell as much as 5.7% after Reuters reported the mine suspension. The stock ended down 3.5%, while the benchmark Canada index rose 0.4%. Protests have escalated since the government and First Quantum signed a new contract on Oct. 20 for the Cobre Panama concession, which contributes 1% to global copper production and 5% to Panama's gross domestic product. A ship with supplies for the mine was unable to dock as local boats blocked off access to the key port, the company said on Friday. An FQM spokesman on Monday declined to comment specifically on the Nov. 23 suspension. "In terms of production we are talking about a temporary halt because of the illegal blockade. As soon as the port reopens, we will be able to ramp production back up quickly," the company said in a statement to Reuters. Earlier on Monday, First Quantum said it had further ramped down operations at Cobre Panama to one remaining ore processing train, adding that it expects to run out of supplies for the on-site power plant during the week commencing Nov. 20. "The focus will be to maintain the tailings pond 24/7," one of the sources said about the maintenance. Tailings ponds are created to store waste generated from mining, which requires proper maintenance. Panama's top court will hear the legality of the contract awarded to First Quantum from Nov. 24, the company said in the statement. The contract has faced numerous legal challenges due to protests that claim it favors the miner too much and allege corrupt practices in its approval. Such protests have escalated into an anti-government movement, as well as demonstrations against the environmental impact of the giant operation. Last weekend, the protests against the mine received an endorsement from Hollywood actor Leonardo Di Caprio who shared a video from an environmental group that called for the Supreme Court to cancel the contract given to First Quantum. Cobre Panama produced 112,734 tonnes of copper in the third quarter, according to First Quantum's financial statements. It contributed $930 million to the overall third quarter revenue of $2.02 billion. ($1 = 1.3718 Canadian dollars) https://www.reuters.com/markets/commodities/first-quantum-place-panama-copper-mine-maintenance-mode-sources-2023-11-20/
2023-11-20 22:36
Nov 20 (Reuters) - Canadian energy company Capital Power (CPX.TO) said on Monday it was acquiring two U.S.-based natural gas-fired generation facilities in California and Arizona for a net cost of $1.1 billion. Capital, like some of its rivals, is aiming to increase its power generation through greenhouse gas emissions-free renewables as well as more stable, but polluting energy sources such as natural gas. This month, Canadian rival TransAlta said it would acquire Heartland Generation, which produces power from natural gas. Following the completion of the deal, Capital will become the fifth largest non-regulated gas-powered generator in North America from ninth position. It plans to be net-zero emissions by 2045. The acquisition is expected to generate around $265 million in core profit for the 2024-28 period, and is estimated to be 8% accretive. The deal is expected to close in the first quarter of 2024 The La Paloma natural gas-fired generation plant in Kern County, California has a capacity of 1,062 megawatts (MW) and is owned by CXA La Paloma. The Harquahala natural gas-fired generation facility in Maricopa County, Arizona has a capacity of 1,092 MW, and is owned by New Harquahala Generation Company, a newly formed and equal-weighted partnership between Capital Power Investments and a fund managed by BlackRock's Diversified Infrastructure business. "The acquisition of La Paloma and the partnership in Harquahala offer an attractive entry point in the WECC (Western Electricity Coordinating Council) market, are immediately accretive and maintains our investment grade credit ratings and balance sheet strength," said Sandra Haskins, CFO of Capital Power. Alberta-based Capital Power generates power from natural gas, wind, solar and other sources at sites in Canada and the United States. It has 62% of its capacity in Canada and 38% in the U.S. https://www.reuters.com/markets/deals/capital-power-acquires-two-lng-fired-power-plants-us-11-bln-2023-11-20/
2023-11-20 21:48
Nov 21 (Reuters) - A look at the day ahead in Asian markets from Alden Bentley, U.S. Breaking News Editor for Finance and Markets. A question for Asia traders on Tuesday looks to be: Does the Nikkei (.N225) have the oomph to reclaim the three-decade high set Monday before profit taking kicked in, amid a reluctance to overextend before market liquidity dries up for the holidays at the end of the week. The rise of the benchmark Japanese share index to its highest intraday level since March 1990 on Monday crowned an 8% rally so far this month and the Nikkei is on track for its heftiest monthly gain in three years thanks to strong earnings and offshore demand. Meanwhile, the resurgent yen in U.S. trade firmed to a 6-1/2-week high against the dollar at 148.10 after last week's rally pulled dollar/yen down to its lowest since early October. Chinese blue chips .CSI300 eked out a 0.2% gain as the country's central bank held rates steady as expected, but set a firm fix for the yuan that saw the dollar slip under 7.2000 CNY=CFXS to a three-month low. It stayed soft during U.S. trading, where it last was quoted midmorning at 7.1680 yuan. Asia awakens to another solid advance on Wall Street, notably tech stocks and a record high for Microsoft after CEO Satya Nadella said OpenAI chief Sam Altman is set to join the company to lead a new advanced AI research team. On Friday, the main U.S. stock indexes posted gains for the third week in a row as evidence of easing U.S. inflation supported bets that the Fed was done raising interest rates. The benchmark S&P 500 (.SPX) is now less than 2% away from its highest level this year that was reached in July. Treasury yields ticked lower on a solid 20-year note auction and anticipation that inflation will decelerate allowing the Fed to cut interest rates next year. There are few potential U.S. market moving events this week, besides Tuesday's day early release of the minutes from the Federal Open Market Committee's last meeting. U.S. markets are closed Thursday for Thanksgiving and Friday stocks and bonds will trade abbreviated sessions. Exchanges will also be closed in Japan on Thursday. Later in the week the Reserve Bank of Australia releases minutes of its Nov. 7 policy meeting and Bank Indonesia is expected to keep its key interest rate on hold at 6.00%. Japan releases consumer price data on Friday, arguably the data highlight for the week. Here are key developments that could provide more direction to markets on Tuesday: - FOMC Minutes - Chinese Q3 earnings: Baidu.com, iQiyi, Kingsoft Cloud, Kuaishou Technology, Tongcheng Travel Holdings https://www.reuters.com/markets/asia/global-markets-view-asia-graphics-pix-2023-11-20/
