2024-07-24 12:31

FRANKFURT, July 24 (Reuters) - Germany's government on Wednesday adopted a strategy for the import of hydrogen to help secure sustainable energy supply as it embarks on creating fossil fuel alternatives for large parts of its industry. Hydrogen, provided it is green, so produced in an electrolysis of water using renewable electricity, can help the transition to a lower carbon economy. The strategy maps out how and from where Germany will import hydrogen, where transport and value chains are built in ports and pipeline systems, how trade is to be organised and certified. It is meant to be a signal to potential suppliers that their offers are welcome. "The import strategy is a major building block of Germany's hydrogen policy and complements the involvement of the government in the domestic market ramp-up," a statement from the Economy Ministry said. Germany expects it will need between 95 and 120 terawatt hours (TWh) of hydrogen per year by 2030 and 360-500 TWh by 2045 to reach its goal of climate neutrality, with imports expected to cover 50-70% of those needs. The figures imply that Germany's hydrogen-based energy consumption in 2045 would match the country's total power demand forecast in 2030. The countries initially expected to deliver either green hydrogen or a so-called blue variety, made with natural gas in a process where the CO2 released in production gets captured and stored, are Norway, Britain and Denmark. Energy industry group BDEW, commenting on the strategy, said that it needed to prioritise targets that ensured the rapid arrival of hydrogen and bring down prices to competitive levels. A nationwide plan for a hydrogen transport network was unveiled on Tuesday for approval by the energy regulator. Sign up here. https://www.reuters.com/business/energy/german-government-signs-off-hydrogen-import-strategy-2024-07-24/

2024-07-24 11:39

MUMBAI, July 24 (Reuters) - The Indian rupee fell to an all-time low on Wednesday as likely outflows from local equities weighed on the currency, though the pressure was eased by the Reserve Bank of India's intervention. The rupee hit a record low of 83.72 against the U.S. dollar in the final minutes of the session, eclipsing the previous record of 83.7150 hit on Tuesday. It ended the day at 83.7175, also its weakest closing level on record and marginally lower than its close of 83.6875 in the previous session. Dollar bids from at least two large U.S.-based foreign banks, likely on behalf of custodial clients, pressured the currency, a trader at a foreign bank said. The benchmark BSE Sensex (.BSESN) , opens new tab and the Nifty 50 (.NSEI) , opens new tab equity indices ended the day lower by about 0.3% each. Sentiment surrounding local equities has dampened after the government, in the budget on Tuesday, raised taxes on profits from equity investments and on equity derivatives trades. Overseas investors sold over $350 million of Indian stocks, on a net basis, on Tuesday, per exchange data. They had invested nearly $5 billion this month before the budget was unveiled. On Wednesday, the RBI's intervention helped limit the rupee's decline, traders said. State-run banks "sold (dollars) heavily," early in the session and were spotted offering dollars in the latter half as well, a second trader at a foreign bank said. Despite the recent pressure on the rupee, the RBI's routine interventions have kept volatility expectations in check. The rupee's 1-month implied volatility is at 1.75%, hovering close to its lowest in nearly two decades. "While we understand that the stability of currency is good, too much stability and not allowing market forces to function may result in imbalances building up in the longer term," said Ashhish Vaidya, managing director and treasurer, global financial markets at DBS Bank India. The dollar index was largely steady at 104.5 while most Asian currencies weakened marginally. (This story has been refiled to correct the spelling of Ashhish in paragraph 12) Sign up here. https://www.reuters.com/markets/currencies/indian-rupee-hits-record-low-amid-pressure-local-equities-2024-07-24/

2024-07-24 11:24

Ilva steelworks are vital for underdeveloped southern Italy India's Vulcan Green Steel, Ukraine's Metinvest among bidders Italy took control of Ilva after clashes with ArcelorMittal ROME, July 24 (Reuters) - Six international and domestic players have expressed interest in taking over the steelworks of Acciaierie d'Italia (ADI) which was formerly known as Ilva, the government told trade unions during a meeting on Wednesday. They are India's Vulcan Green Steel and Steel Mont, Ukraine's Metinvest, Canada's Stelco and Italian steel firms Arvedi and Marcegaglia, government officials told Reuters. The fate of ADI is a major headache for Italian Prime Minister Giorgia Meloni, as its closure would have serious knock-on effects for the country's manufacturing sector. ADI's main plant in the city of Taranto is one of the largest in Europe and a major employer in Italy's under-developed south. Addressing unions, Industry Minister Adolfo Urso said six players would be interested in taking part in the tender process that Rome was expected to launch by the end of this month, according to the officials, who attended the meeting. The government took charge of the group's factories in Italy this year under a special administration procedure, ending weeks of clashes with its then top shareholder ArcelorMittal (MT.LU) , opens new tab, the world's second-largest steelmaker. As energy costs rose and rolled steel coil prices fell, ADI ran out of cash and accumulated huge debts with suppliers including energy group Eni (ENI.MI) , opens new tab and grid operator Snam (SRG.MI) , opens new tab, prompting the government to offer financial aid and a temporary layoff scheme to keep staff at home. Canada's Innovation Minister Francois-Philippe Champagne championed Stelco's bid in a telephone conversation with Urso on Tuesday, the Italian ministry said in a statement. Metinvest, Ukraine's largest steelmaker, is looking for production sites abroad to offset significant asset losses at home, including the vast Azovstal steel plant in Mariupol that was destroyed during a prolonged Russian siege. Vulcan Green Steel is part of Jindal Steel Group, which has already signed off on a preliminary agreement with the Italian government to relaunch the Piombino steelmaking site in Tuscany. Sign up here. https://www.reuters.com/markets/commodities/italy-receives-six-expressions-interest-ilva-steelworks-government-tells-unions-2024-07-24/

2024-07-24 11:16

CAPE TOWN/WINDHOEK, July 24 (Reuters) - A dispute in Namibia over access to diamond-rich land around the town of Luderitz is now threatening to derail major energy projects, state and company officials said as the government steps up efforts to resolve the dispute. Any protracted delays may scare off investors at a crucial time for Namibia, as it aims to accelerate its first oil production following large offshore finds by TotalEnergies (TTEF.PA) , opens new tab, Shell (SHEL.L) , opens new tab and Galp (GALP.LS) , opens new tab. At the heart of the discord are vast tracts of desert land surrounding Luderitz and Elizabeth Bay, 25 kms south, that form part of a mining licence held by Sperrgebiet Diamond Mining (SDM) company and which companies need for their projects. "At the moment, the ministry and licence holder are in talks to find a best solution to address the issue (of land access)," a spokesperson for the mines and energy ministry said. Besides a proposed 800 megawatt gas-to-power plant, Hyphen Energy's $10 billion green hydrogen project and two wind farms are among those potentially affected as the year-long deadlock drags on, officials said. Elizabeth Bay is where BW Energy (BWE.OL) , opens new tab plans to land a pipeline from its offshore Kudu gas field to supply a gas-to-power plant and liquefied natural gas facility. BW Energy, which postponed a final investment decision on its Kudu project, previously told Reuters that getting land to build a power plant and 40 km onshore pipeline is a challenge. "We have been at an impasse now for a year to conclude the mechanics of how we will coordinate and cooperate once we are in operation ... this is quite urgent," Manfriedt Muundjua, a senior BW Energy official told an energy conference in April. The co-owners of SDM are embroiled in a Windhoek high court spat, complicating land negotiations, since the mine's majority shareholder, Dubai-based GEM Group, was taken to court by its minority partner, Lewcor, over allegations of asset stripping. "We are still negotiating with the mine operators but its a time-consuming process and we don't have time," Luderitz mayor Phillippus Balhao said. ($1 = 18.3666 Namibian dollars) Sign up here. https://www.reuters.com/world/africa/land-dispute-threatens-derail-namibias-energy-hub-plans-2024-07-24/

2024-07-24 11:15

VILNIUS, July 24 (Reuters) - Latvia has appealed a decision by the European Union Court of Justice that annulled sanctions imposed on Russian billionaire Mikhail Fridman and his business partner Petr Aven, Latvian news agency LETA quoted the country's Ministry of Justice as saying. LETA said the ECJ "is currently assessing whether the appeal is admissible". ECJ, the EU's top court, in April annulled sanctions imposed on Aven and Fridman in 2022-23, saying the bloc had failed to provide sufficient evidence that the two had supported the Kremlin's actions or policies against Ukraine, which Russia invaded in 2022. Fridman is a dual Russian-Israeli citizen and Aven is a dual Russian-Latvian citizen, ECJ said in its judgements. They are major shareholders of conglomerate Alfa Group, which includes Russia's top private bank Alfa Bank and its biggest food retailer X5 Retail Group. Sign up here. https://www.reuters.com/world/europe/latvia-appeals-removal-sanctions-russians-fridman-aven-2024-07-24/

2024-07-24 11:13

July 24 (Reuters) - Newmont Corp (NEM.N) , opens new tab and Barrick Gold Corp (ABX.TO) , opens new tab, the top two gold miners of the world, are expected to post higher quarterly profits, powered by a rally in the precious metal's prices. Rising hopes of a U.S. interest rate cut in September, uncertainty around U.S. elections and global geopolitical risks have boosted bullion's safe-haven appeal, pushing it to a record-high level. "We are expecting a very strong second quarter, given the significant increase in the gold price and relatively flat cost expectations," analysts at brokerage TD Cowen said. During the April-June quarter, spot gold averaged $2,335.87 per ounce, 18% higher than the same period last year. NYSE Arca Gold Miners Index (.GDM) , opens new tab, which tracks the gold-mining industry, has risen about 20% so far, versus a 16.5% rise in the benchmark S&P 500 (.SPX) , opens new tab. As commodity prices remain strong, the market will be watching for mining companies to demonstrate stability in production and costs in the quarter and discipline and rationality in their growth plans, BMO Capital Markets analyst Jackie Przybylowski said. SECOND-HALF BOOST Barrick, in its quarterly production snapshot last week, said it expects its gold and copper output to progressively increase each quarter through the year with a higher weighting in the second-half. It cited the ramp-up of the Pueblo Viejo project expansion in Dominican Republic and improvements at Nevada Gold Mines for the outlook. With costs holding steady, second-quarter margins (Barrick) are set to benefit from an increase of about $250 per ounce in gold prices sequentially, and anticipate a meaningful operational improvement in the third-quarter, said analysts at Jefferies. Newmont is traditionally weighted to second-half due to weather impacts, Przybylowski said. The top miner is expected to report 1.56 million ounces gold production for second quarter, nearly 26% higher than last year, according to LSEG data. Newmont is expected to report quarterly results on Wednesday, while rival Barrick Gold is scheduled for August 12. Sign up here. https://www.reuters.com/markets/commodities/gold-rally-boost-profits-miners-newmont-barrick-2024-07-24/