Energy News Monitor I Volume VIII, Issue 23

The Week in Review Coal

 

 

NEWS BRIEF

OIL & GAS

ONGC likely to give NOC for Cairn-Vedanta deal by December end

November 22, 2011. ONGC is likely to give its 'no-objection certificate' to Cairn Energy Plc's stake sale in its Indian unit to Vedanta Resources by the year-end. The NOC will be given after Cairn Energy, its Indian arm Cairn India and the mining group sign a legally binding agreement accepting to share royalty and pay cess on the most important Rajasthan oilfields. The need for a legal document has arisen because Cairn India insisted on ONGC giving a no-objection to the Cairn- Vedanta deal before agreeing to twin conditions that the government had set for clearing the $9 billion deal.

RIL, BP form JV to market natural gas in India

November 19, 2011. Reliance Industries and BP have incorporated India Gas Solutions, a 50:50 joint venture that will compete with existing gas marketing firms such as Gail India, the Adani group and Gujarat Gas, in which Britain's BP is selling its controlling stake. BP's international gas fields and Reliance's domestic output will give the joint venture an edge in the Indian market, where exiting players are grappling with diminishing domestic output and high cost of imports. The incorporation of the new venture follows BP's $7.2-billion deal to buy 30% stake in Reliance's 21 oil and gas blocks, including the gas-rich D-6 block. Reliance said the joint venture was a significant step in this relationship.

ECS recommends rejecting Reliance Industries and ONGC bids for two oil blocks in Andaman

November 17, 2011. A high-level panel of secretaries has recommended rejecting bids by Reliance Industries and state-owned Oil and Natural Gas Corp (ONGC) for the Andaman sea block as they had offered "very low" profit share to the government. RIL, which had bid for six out of the 34 areas offered for exploration under the ninth auction round of New Exploration Licensing Policy (NELP), was ranked number one for the Andaman deep-sea blocks, AN-DWN-2010/3 and AN-DWN-2010/4, ahead of a consortia of ONGC and Oil India Ltd. An Empowered Committee of Secretaries (ECS), which reviewed the bids recently, felt that 10.95 per cent profit share offered by RIL was less than benchmark 15 per cent and therefore was deemed very low. ECS in its recommendations, which would go to the Cabinet Committee on Economic Affairs (CCEA), opined that RIL should not be awarded these two blocks.

ONGC gas output projected to fall 1.4 pc next fiscal

November 16, 2011. State-owned Oil and Natural Gas Corp (ONGC) may see 4.7 per cent rise in crude oil output at over 25 million tons in 2012-13 but natural gas output is projected to fall 1.4 per cent. The company estimates, submitted to the oil ministry, put crude oil output at 25.046 million tons in 2012-13, up 4.74 per cent from revised estimate of 23.912 million tons for the current fiscal. Its total offshore crude oil production is estimated to go up by nearly 7 per cent to 17.870 million tons while the same from onshore fields would dip marginally to 7.176 million tons from 7.209 million tons in current year.

` 120 billion petroleum refinery to come up in Andhra

November 17, 2011. Amerind Petroleum Private Limited (Amerind) proposes to set up a nearly ` 120 billion petroleum refinery near Visakhapatnam, in joint technical collaboration with US-based American Industrial Corporation (AIC). The refinery to come up in Petroleum, Chemicals and Petro-chemicals Investment Region (PCPIR) near the coastal city of Visakhapatnam, will have an initial refining capacity to process 7.5 million tonnes of crude oil per annum (or 150,000 barrels per day) and will produce the entire range of petroleum products.

Indian Oil plans to double refining capacity to 123 million tonnes a year by FY-21

November 16, 2011. Indian Oil Corp (IOC), the nation's largest oil firm, plans to double its refining capacity to 123 million tonnes a year by 2020-21. IOC has eight refineries with a combined capacity of 54.2 million tonnes (MT). After including its subsidiary company unit at Chennai, it has a total refining capacity of 64.7 MT. The additional capacity would come from 15 MT a year new refinery being constructed at Paradip in Orissa by September, 2013 and another similar capacity unit planned on the West coast. IOC plans to raise its Gujarat refinery capacity to 18 MT by 2016-17 from current 13.7 MT. The capacity would in the next phase be raised to 23 MT by 2020-21.

Adani, GSPC may foil Gail's BG Group stake buy in GGCL

November 22, 2011. Gail India's aim to buy the BG Group's controlling stake in country's largest private sector city gas distribution firm, Gujarat Gas Company Limited (GGCL), will face a stiff challenge from the diversified Adani Group and archrival Gujarat State Petroleum Corp (GSPC). Adani Group is believed to have appointed a Mumbai-based M&A advisory firm to pursue a deal with BG Group that wants to hive off its 65% interests in GGCL with market capitalisation of over ` 4,500 crore. Gail has a presence in city gas distribution at Vadodara in partnership with the local civic body and it can emerge as largest CGD player in Gujarat that accounts for country's one-third natural gas consumption but it has a history of bitter rivalry with GSPC, which is controlled by the Gujarat government. Recently, Gail approached the Supreme Court challenging gas regulator's mandate to GSPC for laying 4,000 km long pipelines on three routes at an investment of ` 12,500 crore.

Gail, HPCL, Greater Calcutta Gas Supply Company signed MoU for joint venture

November 17, 2011. Gail, Hindustan Petroleum (HPCL) and Greater Calcutta Gas Supply Company signed an MoU for a joint venture for city gas distribution, which is likely to require an investment of around ` 2,000 crore. GAIL and HPCL will hold 37 per cent stake each, while the rest will be owned the West Bengal government-controlled Greater Calcutta Gas Supply Company. HPCL said it would take at least 2-3 years to execute the project.

Stakeholders to Brainstorm over Post-Tsunami LNG Market

November 16, 2011. The liquefied natural gas (LNG) suppliers, consumers, natural gas transporters, stakeholders in city gas distribution players business, regulators, upstream players and government agencies will come together, in Ahmedabad, to brainstorm over the market conditions after Tsunami hit Japan. Since March 2011, LNG buyers have been compelled to change their strategies after the domino effect of Japan's earthquake sent shock waves worldwide. In India, leading suppliers and consumers are facing challenges in terms of rising spot LNG prices and reduced availability of long term LNG supply offers. In India, largest LNG consumer Gujarat is facing challenges since Tsunami resulted in increasing Japan's gas appetite. Gujarat that accounts for one third of Indian gas demand is facing challenges amidst dwindling domestic gas production and rising LNG prices in the international market. The gas prices are all time high in the state and it is trying to find out long term solutions to support local industrial customers besides the city gas distribution companies.

` 649 bn under-recovery in 15 days for oil marketing firms

November 16, 2011. The government-run oil marketing companies suffered a loss of ` 64,900 crore as under-recoveries during the first 15 days of this month due to selling diesel, kerosene and domestic liquefied petroleum gas on subsidised rates. The companies suffered the maximum under-recovery of ` 37,719 crore on sale of diesel. The oil marketing companies suffered under-recovery of ` 10.17 per litre on sale of diesel. The companies suffered a loss of ` 25.66 on sale of each litre of kerosene oil and ` 260.5 on sale of each cylinder of liquefied petroleum gas (LPG) for domestic use. Total under-recovery on sale of kerosene oil during the first fortnight of November was ` 13,361 crore while under-recovery on sale of domestic LPG was ` 13,820 crore.

India to launch shale gas exploration bid during 12th Plan

November 22, 2011. India will launch its maiden bid round for exploration of shale gas during the 12th Plan Period (2012-17). Shale gas or natural gas trapped in sedimentary rocks (shale formations) below the earth's surface, is the new focus area in the US, Canada and China as an alternative to conventional oil and gas for meeting growing energy needs. Currently, the policy allows exploration and production of conventional oil and gas and coal bed methane (CBM). However, shale gas exploration faces several challenges such as the availability of water and vast tracts of land. India's gas demand is likely to rise from 290 million standard cubic meters per day in 2012-13 to 470 mmscmd in 2016-17. Against this, domestic supply will increase from 124 mmscmd to 220-230 mmscmd only. The rest of the demand has to be met by either imports or through unconventional energy sources like shale gas. ONGC said emissions from use of shale gas are higher than natural gas & coal and so the environment impact too would need to be assessed.

OilMin seeks additional cash subsidy of ` 566 bn

November 22, 2011. The Petroleum Ministry wants ` 56,600 crore more in cash subsidy to partially compensate the state-owned oil firms for losses they incur on selling fuel below cost. The subsidy sought is over and above the ` 30,000 crore assistance already promised by the Finance Ministry for the first half of the current fiscal.

Oil Ministry yet to decide on allowing oil PSUs to buy ADB stake

November 22, 2011. The Oil Ministry is yet to decide on allowing GAIL India, Indian Oil, Bharat Petroleum and Oil and Natural Gas Corp (ONGC) to acquire the Asian Development Bank's stake in Petronet LNG Ltd. The ADB had offered to sell its 5.2 per cent stake in Petronet LNG Ltd in which the four state-owned oil and gas companies hold a 12.5 per cent stake each. Gas utility GAIL, refiners IOC and BPCL and exploration firm ONGC have already informed the ADB of their decision to exercise their Right of First Purchase/Refusal on the multilateral lending agency's stake.

RIL gets clean chit for capex till FY08 in KG-D6 gas fields

November 21, 2011. The Directorate General of Hydrocarbon has given a clean chit to Reliance Industries' capital expenditure of $2.5 billion spent up to 2007-08 in developing the KG-D6 gas fields because the CAG's audit has not quantified any loss to the exchequer. CAG will now inspect accounts of RIL-operated D6 block since 2008-09 and if it quantifies any illegitimate expenditure, the same will be recovered from the company.

GAIL making illegal profits by diverting its share of KG gas

November 21, 2011. GAIL India is said to be making "illegal profits" by selling natural gas allocated by the government for making LPG to industries at three times the price. GAIL was allocated 2.59 million standard cubic metres per day of gas from the KG-D6 fields of Reliance Industries for extracting LPG. GAIL produced 1.09 million tonnes of LPG in 2008-09 prior to commencement of supply of KG-D6 gas. It began receiving KG-D6 gas in September, 2009, but produced only 1.10 million tonnes of LPG in 2009-10. Its output fell to 1.07 million tonnes in 2010-11, the first full-year of KG-D6 gas supply. GAIL had been allocated a certain quantity of gas from the Western Offshore fields of ONGC and joint ventures like Panna/Mukta and Tapti for production of LPG. These supplies have fallen over the years, affecting the production of LPG. As such, the allocation from KG-D6 was intended to augment this output.

Oil Ministry sanctions 'scrupulous' action against Reliance Industries

November 20, 2011. Oil Ministry has sanctioned taking "scrupulous" action against Reliance Industries for natural gas output from its KG-D6 fields falling below the target. The ministry has decided to disallow expenditure incurred in constructing production/processing facilities at Dhirubhai-1 and 3 gas fields in KG-D6 block that are currently under utilised/have excess capacity because of falling output.

State oil companies under CAG scanner

November 19, 2011. State oil firms are under the scanner of the Comptroller & Auditor General of India for supplying diesel at a discount to defence establishments and Indian Railways and claim compensation on the revenue loss from upstream companies and the government. Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum have accepted that they offer small discounts to these customers and denied recovering any part of the amount from the government or upstream companies as compensation. CAG has asked the government for details about the matter after the auditor detected these discounts while examining some of some defence establishments.

Government not looking to hike prices of diesel, kerosene and cooking LPG

November 18, 2011. The Government is now not looking at raising prices of subsidised diesel, kerosene and cooking LPG despite oil PSUs losing a record ` 360 crore per day. The Ministry, which had given oil firms a tacit approval for the hike in petrol price by ` 1.80 per litre, was taken by surprise by the criticism revision in price of a commodity that was decontrolled or freed from government control generated. Oil companies pressed for a hike as they were losing ` 1.52 a litre on petrol (excluding local sales tax) because of weakening rupee. But had they shown little more patience, the loss would have been more than neutralised by the ` 1.85 per litre gain they made because of fall in global oil rates in next 10 days. The price hike had been criticised by both Opposition and parties within the ruling UPA coalition and has made the ministry more circumspect on revision in rates for subsidised products. Indian Oil Corp (IOC), Bharat Petroleum and Hindustan Petroleum are losing ` 11.44 per litre on diesel, ` 26.94 a litre on kerosene and ` 260.50 per 14.2-kg LPG cylinder.

Oil ministry approves 10 pc share sale in Oil India

November 18, 2011. India's oil ministry has approved sale of a 10 percent stake in state-run explorer Oil India. The government owns 78.4 percent of Oil India. The share sale will take place after a similar sale of shares in state-owned explorer Oil and Natural Gas Corp. The ONGC share sale is unlikely to take palce before March 31, 2012. It has been postponed several times because of poor market conditions.

Supreme Court not to meddle in fuel pricing

November 18, 2011. The Supreme Court declined to entertain a plea challenging the deregulation of prices of petroleum products, saying fixing of petroleum prices was a matter of government policy and the court could not interfere in it. The court said there was a regulator under the Petroleum and Natural Gas Regulatory Board Act, 2006 but the pricing of the petroleum products was not included in the list of notified areas to be covered under its jurisdiction.

India cautious about expansion of energy relations with Iran

November 17, 2011. India's reluctance to go ahead with multi-billion IPI gas pipeline and some other steps being taken by it recently indicate that New Delhi is now cautious about any expansion of energy relations with Tehran.

State Oil Companies cut petrol prices by ` 2.22 a litre in Delhi

November 16, 2011. Petrol is cheaper by ` 2.22 a litre in Delhi as state oil firms have decided to cut its rates for the first time in last 33 months under pressure from the ruling Congress, which demand an immediate roll-back of the recent price hike. The reduction is more than rolling back the ` 1.80 a litre price hike reducing the fuel price from ` 68.64 a litre to ` 66.42 a litre in Delhi giving a solace to common man who is already fighting a double digit food inflation.

Stake transfers in oil fields to NRIs to come under FEMA

November 16, 2011. The Reserve Bank has notified that all transfer of stake or interest in an oil and gas field to non-residents will be treated as FDI and will have to be reported under Foreign Exchange Management Act (FEMA). At present, 100 per cent foreign direct investment (FDI) is permitted in exploration and production of oil and gas under automatic route, requiring no prior approval.

POWER

ONGC's mega power project to ease electricity woes in North East

November 21, 2011. The electricity crisis in northeastern India is set to ease when the Oil and Natural Gas Corporation's (ONGC) first mega power project -- the largest in the region -- starts generating power by April next year. The gas-based thermal power project will resolve the power crisis of Assam, Meghalaya, Manipur, Nagaland, Mizoram and Tripura states.

Water shortage affects power generation in RHEP

November 20, 2011. Acute shortage of water in the source river has affected power generation capacity in Ranganadi Hydro-Electric Power Plant (RHEP), at Yazali in Lower Subansiri district of Arunachal Pradesh. The lone power station of central sector in the state is operating partially for just five hours a day. Since the flow of water in all rivers across the NE region reduced to a minimum level during this dry season and overall generation in the region has gone down drastically, power supply in Arunachal Pradesh too has been badly affected due to shortage of central sector power availability to the state.

BGR Energy bags order for two 300 MW power plants

November 17, 2011. BGR Energy Systems Ltd said it has bagged an order for two 300 MW coal-based private thermal power plants in Chhattisgarh. The Chennai-based company said the order from New Delhi-based TRN Energy Pvt Ltd. is valued at ` 1,698 crore and the completion schedule will be 29 months for unit I and 32 months for unit II. The plants will be located at Nawapara village in Chhattisgarh and have got forest and environmental clearances. Coal will be supplied by South Eastern Coal Limited.

Tribunal orders annual hike in power tariffs to avoid big shock once in years

November 22, 2011. Electricity consumers across the country will face a tariff hike every year following a landmark order by a tribunal. Financers and power producers said the judgment will help revive the beleaguered sector that was being choked by heavy losses of distribution companies. The appellate tribunal for electricity has ruled that state distribution companies should file tariff revision petitions by April 1 every year. Failure to do so in a month would empower state regulators to begin the exercise on behalf of power distribution companies.

NTPC issues tenders 4 million tonnes of coal

November 21, 2011. Country's top power producer NTPC floated tenders for importing 4 million tonnes of coal for 14 of its projects. The company has scrapped an earlier tender of the same amount to change certain technical specifications. The company floated four tenders for supply to projects including Farakka, Khalgaon, Simhadri, Talcher, Singrauli, Dadri, Sipat and Rihand. The selected bidder would be responsible for sourcing non-coking coal and delivering it till various NTPC power stations. Scope of work includes supply of imported non-coking steam coal to NTPC at Indian ports, storage, port clearances, arranging railway rakes, transportation and delivery at NTPC power station. NTPC estimates total coal requirement of about 162 million tonnes during the current year and targets importing 16 million tonnes. It has already signed an agreement with state-run State Trading Corp for importing 12 million tonnes.

Power Grid board approves ` 28.5 bn investment

November 17, 2011. State-run Power Grid Corporation of India said its board has approved investments worth ` 2,851.14 crore. The company would invest ` 2,127.51 crore for transmission system related works for generation projects in Chhattisgarh. The system is expected to be commissioned in 32 months progressively from the date of investment approval. Power Grid would invest ` 723.63 crore for 'Northern Region System Strengthening Scheme - XXIV' and the commissioning schedule is 36 months from the date of investment approval. Power Grid plans to add about 50,000 circuit kilometres of transmission lines in the next five years.

CIL appoints PFC to select partner for Orissa power project

November 22, 2011. Coal India said it had appointed the Power Finance Corporation to select a suitable partner and operator for its proposed 1,600-MW power project in Orissa. CIL had mooted the 1,600-MW coal-based power plant to utilise the coal from Vasundhara coalfields in Orissa.

CIL open to release ` 150 bn from cash reserves if needed

November 22, 2011. Coal India Ltd (CIL) said it was open to utilisation of up to a fourth of its cash reserves, about ` 15,000 crore, for purposes other than capital expenditure if asked by the government. The government had sought to ascertain the cash position of PSUs as part of efforts to explore all available options to raise money and reduce the fiscal deficit.

Chhattisgarh to stay power-cut-free state for 20 yrs

November 22, 2011. Providing the cheapest energy to consumers, mineral-rich Chhattisgarh will remain a no-power-cut state for the next 20 years. The young state, which was created out of Madhya Pradesh eight years ago, would add power generation capacity of 3,000 MW every year for the next two-three years. The state is expected to add over 20,000 MW by 2016. It has the potential to produce up to 50,000 MW.

Uncertainties over availability of fuel, land and water leave projects out of power

November 22, 2011. India is heading for a huge power deficit in three years as developers have slowed execution of projects worth about ` 1,50,000 crore due to uncertainty over availability of fuel. Many of these projects are unable to progress because of regulatory and fuel-supply obstacles, while in other cases the developers have consciously slowed down project implementation because of uncertainties surrounding the sector. The government is worried as PSU banks have high exposure to the projects and their non-execution could mean black outs in future.

J-K to raise funds from markets to buy back 2 NHPC projects

November 21, 2011. Jammu and Kashmir Chief Minister Omar Abdullah said the state will raise funds from the markets for buying Salal and Uri power projects from NHPC. The state government had expressed its intention of taking back the two power projects -- Salal (690 MW) and Uri (390 MW) -- from National Hydro Power Corporation (NHPC) which is seeking nearly ` 2,600 crore as compensation for handing over these projects.

Abdullah sought to dispel the notion that the state government has entered into a confrontation with NHPC over water usage levied on power generators in the state.

Abdullah also said his government has launched various mega, medium and small projects in the power sector with the aim of generating 4,000-5,000 MW of additional power within the next seven years and help the growth and development of all sectors in the state.

He said huge losses incurred by the state on account of power purchases, which have reached ` 2,000 crore, were affecting the development and welfare schemes of the state. He said while the Centre has been liberal in funding the state, it cannot go on forever. Earlier, the Chief Minister inaugurated the ` 71.33-crore Grid Station at Nipora near Mir Bazar.

The project, a third of its kind in the Valley, would help augment and streamline power transmission besides ensuring improvement in the voltage. The project will also complete the ring of 220 KV lines from Alastaing to Mir Bazar and Wagura to Mir Bazar in the Valley. It will also strengthen the existing Grid Stations at Pampore and Zainakote.

The Mir Bazar 220/132 KV Grid Station of 320 MVA capacity is likely to augment power supply in South Kashmir benefiting a population of 15 lakh in Anantnag and Kulgam districts.

World Bank plans $1.5 bn investment in Indian energy sector

November 20, 2011. The World Bank expects to invest about $1.5 billion in the country's fast growing energy sector over the next two years. The multilateral lender, which has a long association with the Indian energy sector, has already put $4 billion in the segment.

Gujarat Electricity Regulatory ropes in GEDA to monitor RPO and issue RECs

November 18, 2011. The Gujarat Electricity Regulatory Commission (GERC) has directed the power bodies to take preventive actions to minimize the accidents. The regulator suggested electricity distribution companies to focus on safety and form safety cells to give immediate attention to the same. According to the GERC directive, power bodies of the state will form a committee to monitor accidents in electricity distribution companies. GEDA is also asked to monitor the renewable power purchase obligation on regular basis and submit the report to the Commission quarterly basis. GERC circulated proposed guideline for signing of power purchase agreement for power projects and renewable energy projects and sought the views from the participants. GERC also discussed the paper on proposed solar tariff for the new control period 2012-15, assessed the impact of the last tariff orders of electricity distribution companies and reviewed their standard performance.

J&K govt to solicit prelim bids for 400-MW Karthai HEP project

November 17, 2011. The Jammu and Kashmir government is likely to float a tender in December this year seeking bids from power companies for pre-qualification to develop the 400-MW Karthai hydro electric power project in the state. In addition, a proposal for the 990-MW Karthai-II unit is in advanced stages of examination.

India woos GE, Westinghouse with cap on atomic equipment supply liability

November 17, 2011. India, planning $175 billion of atomic power plants, has capped liability of equipment suppliers in the event of an accident, paving the way for General Electric Co. (GE) and Westinghouse Electric Corp. to supply reactors. Claims by plant operators against component suppliers “shall in no case exceed the actual amount of compensation” paid by utilities.

Power tariffs to rise 20 pc each year: CERC

November 17, 2011. Consumers should prepare for a 15-20% increase in power tariffs every year for the sustenance of state distribution utilities that are struggling to stay afloat due to escalating losses and mounting debt, the Central Electricity Regulatory Commission (CERC) said. CERC said the regulator's biggest concern is that investment in the sector should not stop. India's state electricity distribution companies (discoms) reported an aggregate loss of around ` 40,000 crore in the year ended March, which is as high as the government's annual divestment target. The losses are estimated to soar to over ` 1.16 lakh crore by 2014. In the year so far, around 12 states have increased power tariffs in the range of 9-34% to ease the burden of distribution companies. States like Rajasthan, Tamil Nadu, Madhya Pradesh, Uttar Pradesh and Bihar account for 70.6% of the power distribution losses in the country. Though states like Maharashtra have been revising tariffs regularly, other states like Tamil Nadu and Rajasthan have not revised them for seven years and four years, respectively. State power regulators need to be independent of political pressure while considering revision of power tariffs.

Coal India grapples with problems of operational clarity & over-dependency on e-auction

November 16, 2011. Coal India's production and sales volume in the September quarter declined - both YoY and sequentially - due to the extended monsoon. Though this was offset by higher realisation from sales per unit, lack of clarity on core operational and regulatory issues still persists. And over-dependence on e-auction sales to drive the total earnings is not sustainable in the long term.

Empowered committee to decide compensation to NTPC for scrapped hydro project

November 16, 2011. The government approved setting up an empowered committee to compensate NTPC for abandoning a hydropower project in Uttarakhand due to environmental concerns. The committee would be headed by power ministry and would include senior representatives from concerned ministries who will finalise financial compensation to NTPC.

OIL & GAS

Chevron, Transocean spill may trigger fines, bans in Brazil

November 22, 2011. Transocean Ltd., the operator of the rig that exploded in the Gulf of Mexico and caused the worst U.S. maritime spill, and Chevron Corp. may be banned from deep- water drilling in Brazil after an oil leak. Chevron, which was fined 50 million reais ($28 million) by Brazilian environmental authorities, may lose the right to develop deep-water fields there and be ordered to pay as much as 100 million reais to the regulator. The regulator may also ban Transocean. Drilling at Chevron’s Frade project in the Campos Basin off Rio’s coast triggered a leak of as much as 3,000 barrels in eight days. The spill followed a surge of pressure from an oil reservoir.

Oil abundance in Canada provokes anxiety over fossil fuel lust

November 22, 2011. The helicopter swooping over once- pristine spruce forests provides a close-up view of why the province of Alberta, Canada, is among the planet’s most coveted -- and contested -- petroleum hot spots. Rivals Exxon Mobil Corp. and China Petroleum & Chemical Corp. each have bought a piece of Syncrude, one of the dozens of companies that are blasting, digging and steaming soil laden with 143 billion barrels of molasseslike crude called bitumen. Only Saudi Arabia, with 264 billion barrels, and Venezuela, with 211 billion, enjoy greater proven reserves, a BP Plc energy review found in June. Some of the world’s biggest energy producers have poured C$123 billion (US$120 billion) into Canada’s oil sands since 1997. The Canadian Energy Research Institute, or CERI, predicts that these companies will pay another C$137 billion by 2020 to tap the Florida-sized region’s unique advantage: rising oil production taking place in a stable democracy that’s close to the massive American market.

Petrobras has ‘many’ offers for $13.6 billion of assets

November 19, 2011. Petroleo Brasileiro SA, the fifth- biggest oil company by value, has “many, many, many” offers for the $13.6 billion of assets it plans to sell, including fields in the Gulf of Mexico. While Brazil’s state oil producer has yet to decide which assets to sell, the company known as Petrobras has received dozens of proposals. Petrobras is seeking ways to help finance its $224.7 billion five-year investment plan that includes the development of deep-water projects in the so-called pre-salt area of the Santos Basin, where the largest oil discovery in Brazil’s history is located. The company may farm out stakes in 186 exploratory blocks in the Gulf of Mexico. The company, based in Rio de Janeiro, won approval from the U.S. Bureau of Ocean Energy Management, Regulation and Enforcement to begin oil and natural-gas production at its Chinook-Cascade project in the Gulf of Mexico in March.

The project has the capacity to produce 80,000 barrels of oil daily and 16 million cubic feet of gas a day. Petrobras found traces of oil in an offshore well in the BM-S-9 block of the Santos Basin. The company said it found oil in the Logan Well in deep waters in the Gulf of Mexico.

Petrobras is going to end 2011 with daily production above its target, even as platform shutdowns and delays in drilling- rig deliveries constrain development of the Carioca and Lula fields in the Santos Basin. Output may reach 2.2 million barrels a day by the end of the year. On average domestic production may miss this year’s target of 2.1 million barrels a day. Petrobras should get the flow-rate data for its pre-salt wells off the coast by the middle of next year, when it completes 18 months of pilot projects in the area.

Biggest find in decades becomes $39 billion cautionary tale

November 17, 2011. After 11 years and $39 billion of investment, Exxon Mobil Corp., Royal Dutch Shell Plc and their partners have yet to sell a drop of oil from what was touted as the world’s biggest discovery in four decades. Kashagan, which may hold enough oil to supply the world for six months, has become a cautionary tale for oil companies worldwide as they spend an estimated $20 trillion through 2035 finding supplies in ever more difficult places. When the oil project starts production it will be a milestone for the Central Asian republic of 16.5 million that’s four times the size of Texas. The project is vital to Nazarbayev because the country relies on oil for 18 percent of gross domestic product and is rebuilding the economy after a devastating banking crisis. Kazakhstan’s national oil company believes expansion can be achieved by 2017.

Key Energy in play with Baker Hughes chasing shale oil

November 17, 2011. Baker Hughes Inc. is looking at deals as it tries to extract bigger profits from the boom in U.S. shale-oil exploration. That may put Key Energy Services Inc. and Lufkin Industries Inc. on its wish list.

Baker Hughes, which provides drilling services to oil and gas companies, is seeking opportunities to make acquisitions. After spending $7.1 billion on BJ Services Co. to gain a pressure-pumping business that helps drillers unlock oil trapped in shale, Key Energy, which hauls the fluids used in hydraulic fracturing, and Lufkin, a maker of pumps used to extend well production, may now make sense for Baker Hughes.

Bakken plans first U.S. refinery in 35 years

November 21, 2011. The Bakken shale oil bonanza in North Dakota has already upended the U.S. oil market once by reversing a decades-long decline in production. Now, as the boom fuels a surge in diesel consumption, the remote state may boast a second milestone: construction of the first U.S. greenfield refinery in 35 years.

In North Dakota, far from the rust belt refineries of the Midwest and now America's fastest-growing state economy, the $200 million refinery presents a perfect opportunity. Now North Dakota has just one refinery, Tesoro Corp's 58,000 bpd refinery, about 223 miles southeast of the new refinery's site. The Dakota Oil Processing project is expected to fill 252,000 gallons per day, or about 10 percent, of the state's current diesel needs.

Exxon preparing to shut Antwerp oil refinery for strike

November 16, 2011. Exxon Mobil Corp. is preparing to halt units at its Antwerp oil refinery in Belgium. The refinery will be fully shut by Nov. 23, the date workers plan to strike. The plant has a crude processing capacity of about 307,000 barrels a day.

Oil-tanker rally threatened as ships seen accelerating

November 22, 2011. The biggest rebound in oil-tanker rates in almost two years is already being threatened by signs the surge may spur ships to speed up, increasing vessel supply and undermining the rally. The rally in rates may also be sustained by older ships being scrapped. The cost of a 15-year-old tanker fell 48 percent to $23.5 million as scrap values rose 3 percent to $17.25 million, the narrowest gap in at least five years. Owners may break up 5 percent of the fleet within 18 months, the most in nine years.

Growth in Chinese oil demand is not expected to be replicated elsewhere. Japanese consumption will increase 0.7 percent next year, less than half the global pace of 1.5 percent. The Saudi Arabia-to-Japan voyage is the world’s biggest tanker route. North America will use 23.39 million barrels a day, 0.5 percent less than this year.

Gas exporters seek ‘high’ prices as they cooperate on supply, projects

November 15, 2011. The world’s largest natural-gas exporters aim to cooperate in developing projects for production and sale of the fuel to raise prices and boost supply.

Qatar, Iran, Egypt and Algeria, among others, agreed in the Qatari capital Doha that the price of the fuel used to generate electricity is too low. They disagreed on how the Gas Exporting Countries Forum, a producers’ group set up to share market information and coordinate projects, could also help maximize the income of its 11 members.

Iran says oil market to suffer if its exports affected, seeks ‘fair’ price

November 20, 2011. Any disruptions to Iran’s oil exports would create “severe problems” for the global crude market. Iran will seek a “fair price” for crude when the Organization of Petroleum Exporting Countries meets next on Dec. 14. it said.

Woodside, East Timor ‘aligned’ in wanting sunrise LNG to proceed

November 19, 2011. Woodside Petroleum Ltd. its partners and the governments of Australia and East Timor are “aligned in their desire” to see the Sunrise liquefied natural gas project developed.

Australia’s second-biggest oil producer is looking forward to further dialogue with the Southeast Asian nation to try to resolve a dispute that has stalled the proposed LNG venture in the Timor Sea.

Canada's Asian oil push not a slap to U.S

November 18, 2011. Canada is looking to diversify the market for oil sands crude by courting buyers in Asia, and is not trying to punish the United States for delaying TransCanada Corp's Keystone XL pipeline to Texas.

After the U.S. State Department pushed back a decision on the $7 billion Keystone XL pipeline by a year, Canada would accelerate efforts to build a pipeline to the Pacific Coast from the Alberta tar sands.

Brazil police to probe Chevron drilling, spill

November 17, 2011. Brazilian federal police have opened a probe into U.S. oil giant Chevron over alleged pollution linked to an oil spill at its offshore Frade project.

Brazil's energy regulator ANP said oil seeps off the coast of Rio de Janeiro were caused by a well drilled by Chevron at Frade, where the company has estimated as much as 650 barrels had been released causing a "sheen" on the sea surface.

Kayne Anderson Capital said to seek $1.6 billion for latest energy fund

November 17, 2011. Kayne Anderson Capital Advisors LP, is seeking to raise $1.6 billion for a fund to invest in private gas and oil companies.

The Kayne Anderson Energy Fund VI LP, which will invest in companies in the U.S. and Canada, is the firm’s sixth fund and aims for a first close in the second quarter of 2012.

BP must face Gulf spill claims from Alabama and Louisiana

November 16, 2011. BP Plc must face claims under federal maritime law, though not under state law, in suits brought by Louisiana and Alabama over the 2010 oil spill in the Gulf of Mexico. The states can sue for negligence and products liability under general maritime law and are eligible for punitive damages.

The Macondo well blowout and the explosion that followed killed 11 workers and set off the worst offshore oil spill in U.S. history.

The accident and spill led to hundreds of lawsuits against London-based BP and its partners and contractors, including claims brought by Alabama and Louisiana alleging state law violations.

POWER

Alsons in talks with Thai, Japanese firms for power project

November 21, 2011. Alsons Consolidated Resources is in talks with Thailand's Electricity Generating Company and Japan's Toyota Tsusho Corp. for a possible partnership in the 200 MW coal-fired power plant project in Maasim, Sarangani province. The Alcantara-led Alsons has also awarded the engineering, procurement and construction contract for the first 100 MW power plant in Saranggani to Korean company Daelim Industrial Co. Groundbreaking for the project is scheduled on November 25.

EDP delays construction of Alvito hydropower plant

November 18, 2011. EDP-Energias de Portugal SA, a Portuguese utility, delayed the construction of the Alvito hydropower plant in northern Portugal by three years.

Sasol to build gas-to-power plant in Mozambique

November 17, 2011. South African petrochemicals group Sasol plans to build a 140 MW gas-to-power plant in Mozambique, with first power from the project expected in late 2013. The plant will be built via a joint venture with local power utility EDM, which is expected to take a 51 percent stake in the project. The power will be mostly used for the Mozambican market. The plant is expected to cost around 1.8 billion rand ($220.6 million), in line with a similar project Sasol is developing at its Sasolburg operations in South Africa.

South Asian power transmission link in the works

November 22, 2011. Electricity trading with Pakistan is part of a larger plan of a South Asian transmission link, which will help countries in the sub-continent harness energy potential of the region. India plans to sell 500 megawatts (MW) of electricity to Pakistan, which will help the country reduce its chronic power shortage. South Asian electricity trade is being seen as a major area of cooperation among countries that will bring prosperity to the sub-continent by providing power to deficit parts of the region. India will need about 250,000MW by 2017, a five-fold increase, to sustain its economic growth. A South Asian grid will give the region 100,000MW of power to trade and help India tap hydropower and natural gas reserves of its neighbours. An integration of electricity grids across South Asia will reduce power costs and enhance manufacturing competitiveness of all members. Nepal, Bhutan, Afghanistan and India have huge hydroelectric potential, which can be tapped for intra-regional power trade. While a transmission link with Bhutan is in place, there are plans to tweak existing line to enable imports up to 5,000MW into India by 2020. Indian firms are working on hydropower projects of 10,000MW in Bhutan and 1,000MW in Nepal to be able to share power from these projects.

Europe urged to build more power lines to meet EU energy targets

November 21, 2011. Europe needs more transmission lines to reach the EU target for a single energy market by 2014, it has been claimed. But the European Network of Transmission System Operators for Electricity (ENTSO-E), said the 'main obstacle' to this is getting permits to build power lines. The creation of European level market rules is part of the third energy package and member states have committed themselves to implement the EU target model by 2014.

New power transmission line for Rwanda

November 18, 2011. The government of Rwanda, the German Development Corporation and the Netherlands government have signed a grant agreement worth almost $50 million to build a regional power transmission line in the country. The 220 kilowatt power line will connect Rwanda to DR Congo from Kibuye to Gisenyi and Kigali, then Gisenyi again and Goma. It will also help to meet the growing demand for electricity in Rwanda and its neighbouring states. The new power transmission line is scheduled to be complete and in operation by 2014.

New Transmission line to Ease Tibet's power shortages

November 16, 2011. A new power transmission line set to become operational on China's Qinghai-Tibet Plateau is expected to ease power shortages in Tibet's capital Lhasa. The power transmission line is part of the 13.9-billion-yuan (2.2 billion U.S. dollars) Qinghai-Tibet power grid interconnection project launched. By the end of 2015, Tibet's installed power generation capacity will hit 2.6 million kilowatts, more than twice the 2010 volume.

Spain allows net metering for small power plants

November 18, 2011. Spain's government passed a decree designed to make it easier for small power plants to connect to the grid and pave the way for their operators to become self-sufficient.

The government was working on regulations to accompany the decree covering "net metering", whereby producers of less than 10 kilowatts can feed surplus power to the grid or draw from it to offset shortfalls.

EPA rules could shut 13 GW of Midwest coal plants

November 18, 2011. Proposed federal environmental regulations could shut about 13,000 megawatts of coal fired generation, boost power prices, threaten electric reliability and cost billions to retrofit or replace most of the region's existing coal fleet.

Over the past few years, the U.S. Environmental Protection Agency (EPA) has proposed four regulations to clean the air and water that will affect the nation's coal-fired power plants.

Tongaat pursues power-generation plan to feed South African grid

November 18, 2011. Tongaat Hulett Ltd., a South African sugar producer, is pressing ahead with plans to expand electricity generation to feed the national grid, even as it awaits a change to government regulatory policy. Tongaat Hulett, which already produces enough power at its sugar mills for its own use, plans to expand generation capacity in expectation of a government go-ahead next year.

South Africa’s government agreed with unions and business organizations to expand investments in industries that use and promote renewable energy. By increasing power generation from sugar-cane byproducts, companies such as Tongaat Hulett can produce electricity for the grid without adding to polluting carbon emissions.

The government, which has committed to buying 3,725 megawatts of renewable energy from independent producers by 2016, issued proposals this year calling for partners to build wind farms and solar parks. The plans excluded biomass power generation. Tongaat Hulett is expecting its inclusion next year.

Suzlon bags 23 MW turbine order from GAIL valued at ` 1.4 bn

November 21, 2011. Suzlon Energy has bagged an order worth an estimated ` 140 crore for supply of wind turbines with a cumulative capacity of 23.1 MW to state-run gas utility GAIL (India). The cost of each megawatt of power derived from a wind turbine is around ` 6 crore. Suzlon Energy has frequently received orders from GAIL to supply wind turbines. The latest order is the fourth received by Suzlon Energy from GAIL since the first project was commissioned in March, 2010. While the first project was of 4.5-MW capacity, the second had generation potential of 14.7 MW and is currently under execution in Gujarat. Suzlon got another order for turbines with a cumulative capacity of 25.5 MW, to be commissioned in Karnataka.

150 MW solar power plant to be set up at Dhule soon

November 20, 2011. A 150 MW solar power plant will be set up in Dhule with financial assistance of Euro 250 million from KFW, a German investment bank. The project is claimed to be one of the biggest in the country. The project is expected to start generation by the end of 2012. This would be the first solar project that will be connected to the national grid.

IFC, SEWA in pact to promote green products in Raj, Guj

November 19, 2011. International Financial Corporation (IFC), a member of the World Bank group, signed an agreement with self-help group SEWA under which two lakh women in Gujarat and Rajasthan would be provided energy-efficient cooking stoves and solar lanterns. Under the memorandum of agreement (MoU), IFC will guarantee a loan from local banks to members of the Self Employed Women's Association (SEWA). The project named 'Hariyali', which will be spread over next three years, is intended to promote the strategy of clean growth and reduce emission of greenhouse gases. Local women will be provided not only with the such energy efficient products but also trained to develop them indigenously and market them locally. The project is expected to generate carbon credits by reducing greenhouse gas emissions and the credits will be shared among the SEWA members which will help to generate income for them.

SunEdison secures ` 5 bn funding for 50 MW solar projects in Gujarat and Rajasthan

November 18, 2011. Solar energy services provider SunEdison has announced it has secured project financing of more than ` 500 crore from Overseas Private Investment Corporation, L&T Infrastructure Finance Company Ltd and Infrastructure Development Finance Company Ltd for a series of solar photovoltaic projects in Gujarat and Rajasthan. The likely capacity of these projects will be 50 MW.

726 MW Tripura power plant to commence production soon: ONGC

November 18, 2011. The first unit of the 726 MW combined cycle power plant being set up by ONGC in Tripura shall start generating electricity soon. Tripura has a large stock of natural gas and the success of exploration rate of ONGC in the state is higher than in any other part of the country. ONGC is planning to set up a 102 MW wind power project in Rajasthan, the second wind power project undertaken by the company. ONGC's first 51 MW wind power project commissioned in Gujarat has already started generating power. ONGC is considering setting up a 102 MW capacity wind power project, expected to cost over ` 650 crore, in Rajasthan. ONGC is also examining the feasibility of setting up a 501 MW grid connected solar power photo-voltaic project in Gujarat and Rajasthan and some of its own installations.

Wind power capacity likely to rise 5 GW in 12th Plan

November 16, 2011. The government plans to add 5,000 MW of capacity in the 12th Five-Year Plan by encouraging retrofitting of older wind power farms, and tightening existing rules that let promoters enjoy tax breaks even without producing electricity.

Although the ministry of new and renewable energy resources has not finalised a policy yet, its draft paper aims to re-power, or install new turbines, at these old farms, most of which were set up in the 90s. This 5,000 MW target is in addition to the 15,000 MW planned through new projects. The ministry plans to push states into signing "renewable purchase obligations", which aim to ensure that new wind turbines are not just put up for availing of tax benefits. Such purchase obligations mandate state governments to buy some of their power requirement through renewable sources. The draft proposes setting up more wind projects in other states such as Karnataka and northern Rajasthan, where turbines have been installed recently. India's total wind power installed capacity is about 14,000 MW, with Tamil Nadu accounting for 43%.

Obama criticized by U.K. Minister for lack of climate effort

November 22, 2011. U.K. Minister of State for Climate Change Greg Barker criticized U.S. President Barack Obama for failing to make a “concerted political effort” in the fight against climate change. Obama has committed to cut U.S. emissions by 17 percent for the 15 years through 2020, so long as Congress passes domestic climate laws. He has yet to push emissions reductions through Congress after the Senate held up his legislation.

Utilities urge Europe to propose 2030 targets for carbon, efficiency

November 22, 2011. Three European utilities urged European Union regulators to propose an “ambitious” climate and energy package for 2030, setting binding targets for emissions reduction, energy efficiency and renewable sources. The 27-nation EU has a binding target to reduce greenhouse gases by 20 percent in 2020 compared with 1990 levels and wants to limit them by as much as 95 percent by 2050.

U.S. clean energy needs private funding as stimulus wanes

November 22, 2011. U.S. renewable energy developers will need to find new sources of funding after incentives backed by federal stimulus programs wind down. Renewable energy companies have received more than $65 billion in tax credits, grants and loans offered through the American Recovery and Reinvestment Act, the research company said.

China’s solar industry seeks U.S. polysilicon imports probe

November 22, 2011. A Chinese solar trade group will ask the government to start a dumping and subsidy investigation into sales of U.S. polysilicon in the nation after American authorities opened a trade probe into the imports of Chinese solar cells. The U.S. has exported a “large amount” of polysilicon, the raw material of solar panels, to China, which has become the biggest supplier of finished solar products.

Solyndra workers to get U.S. trade assistance based on China competition

November 22, 2011. Employees fired by Solyndra LLC, the solar-panel maker that failed after receiving a $535 million federal loan guarantee, were certified for U.S. aid under a program for workers hurt by overseas competition.

Israeli Minister Landau signs licenses for 13 solar facilities

November 22, 2011. Israel’s Minister of National Infrastructures Uzi Landau signed 13 solar technology production licenses for a total amount of 10.5 megawatts.

Canada oil sector must keep cleaning up act

November 21, 2011. The U.S.-imposed delay of TransCanada Corp's Keystone XL oil pipeline shows Canada's energy industry cannot relax efforts to improve its environmental record. The U.S. move has also helped build consensus that the oil industry must lessen its near-total export reliance on the U.S. market.

EPA delays carbon limits on oil refineries

November 21, 2011. The U.S. Environmental Protection Agency, struggling with an ambitious agenda on clean air regulations, said it will delay proposing the country's first-ever greenhouse gas limits on oil refineries. The delay is the latest setback for the agency's new raft of clean air rules on everything from smog to mercury pollution that are heavily opposed by industry. The EPA had been required to propose the rules on refineries by mid-December, as part of a court settlement with states and environmental groups.

Air-conditioning HFC gas must be curbed to aid climate, UN says

November 21, 2011. Emissions of hydrofluorocarbons, heat-trapping industrial gases used in air conditioners and refrigerators, must be curbed to help combat climate change, according to the United Nations.

The UN report comes as governments adhering to the ozone-protection rules of the Montreal Protocol consider phasing out hydrofluorocarbon-23 production, whose warming potential per molecule of HFC is 11,700 times more powerful than carbon dioxide. The European Union this year banned as of 2013 its use in the emissions-trading program of credits linked to the industrial gas generated under the UN carbon market.

Easy loans now a burden for China solar firms

November 21, 2011. Generous state bank loans to Chinese solar companies, a bone of contention for their Western counterparts, are threatening the financial health of the firms, as they grapple with falling product prices and tumbling demand from their biggest customer, Europe.

The huge funds that flow into China's solar sector, in which local governments hold stakes, have boosted production in the first half despite fragile demand, depressing product prices and setting off an anti-dumping probe by the United States. State banks provide easy loans to the sector amid the Chinese government's push to develop clean energy. Provincial governments that have helped build solar companies are also pressuring banks to continue lending, which may add to the woes of the struggling industry.

Solon sells 2.7 MW Italian solar power plant

November 21, 2011. Solon has sold a solar power plant with a capacity of 2.72MW in Apulia, southern Italy, to a family office based in Berlin, Germany.

The sale also includes a five-year service and maintenance agreement for Solon. The power plant, located in the small town of Orta Nova, has an annual output of about 4,000MWh of electricity, which is enough to power 1,050 homes and save about 2,800 tons of CO₂ emissions every year.

Greenhouse gases rise to record in 2010: UN

November 21, 2011. Concentrations of the three main gases blamed for global warming, carbon dioxide, nitrous oxide and methane all rose to record concentrations in the atmosphere in 2010, the UN’s World Meteorological Organization said.

Maybank starts $500 million private equity fund for renewables

November 21, 2011. Malayan Banking Bhd. agreed with Maybank MEACP Pte of Singapore to start a $500 million private equity fund for renewable energy in Asia. The 10-year fund will have a first tranche of $87.5 million, of which Maybank will contribute $50 million. It will invest in wind, solar, geothermal, small hydroelectric, biomass, biofuels and energy efficiency projects in the Asia-Pacific region with a focus on China, India, Indonesia, Malaysia, Thailand, the Philippines, Vietnam, Cambodia and Laos.

Brazil seeks to extend Kyoto Protocol to 2020 before replacement

November 21, 2011. Brazil will seek to extend by eight years until 2020 the Kyoto Protocol targets that bind developed countries to cuts in greenhouse-gas emissions, before replacing them with a wider agreement. Talks are deadlocked over a proposed second set of goals for the accord, whose measures exclude the three biggest emitters -- the U.S., which never ratified the deal, and India and China, considered developing nations. Russia, Canada and Japan refused to agree targets beyond 2012 under Kyoto, saying they will be ineffective without limits for the worst polluters. The 27-nation European Union is ready to sign up as long as other major economies spell out when they will take action. The period around a UN review of national action to fight climate change scheduled from 2013 to 2015, and a study on the science of global warming from the body’s Intergovernmental Panel on Climate Change due by the end of 2014 will mark a “good time” to begin to look at post-2020 plans.

Eskom plans solar energy projects at coal-fired plants

November 21, 2011. Eskom Holdings SOC Ltd., South Africa’s state-owned utility, plans to open 5-10 megawatt solar plants at its coal-fired stations from 2013 to reduce emissions. The utility, which provides about 95 percent of the country’s electricity, will make a final business case for the plants by the first quarter of 2012.

Eskom has obtained $615 million in loans from the World Bank and African Development Bank to develop a 100-megawatt wind power plant in the Western Cape that’s due to be ready by the beginning of 2013.

A 100- megawatt solar project in the Northern Cape is expected to be up and running by 2016. The utility has a net maximum electricity generation capacity of 41,194 megawatts, of which coal accounts for 85 percent and renewable energy less than 1.5 percent. Eskom has hydro-electric capacity of 600 megawatts and 3 megawatts of wind power capacity.

Gas transport beats renewables investment: Deutsche fund manager

November 21, 2011. Investing in gas transit could be a better move for investors than putting money into renewable infrastructure as Europe looks at alternatives to nuclear power after Japan's Fukushima disaster, Deutsche Bank fund manager RREEF Infrastructure said. Investment in renewable energy technology known as 'clean tech' has grown in recent years, with renewable energy accounting for almost half of the fresh global capacity in 2010. Yet renewable sources of energy may not be the best area to invest in the near term, said John McCarthy, global head of RREEF Infrastructure, which has $15.8 billion in assets under management.

Germany was among the nations which decided to move away from nuclear power after Japan's Fukushima nuclear crisis, triggering a dash for alternative energy sources.

As renewable technologies such as solar photovoltaic, wind and marine energy are developed and investors look to diversify to growing energy sectors, more opportunities are being uncovered in green infrastructure investment. No more than 20-25 percent of the money under management was dedicated to the renewable sector.

Subsidies for renewable energy technologies vary across Europe with governments setting their own tariff regimes for such investments. The UK government recently proposed halving subsidies for solar schemes of up to 50 kilowatts (kW), causing an outcry among developers.

Saudis say OPEC is asked to pay more than fair share on climate action

November 21, 2011. Saudi Arabia and its OPEC partners are asked to bear too much of the burden of cutting greenhouse- gas emissions because of their economic dependence on oil and gas exports.

Members of the Organization of Petroleum Exporting Countries, which supply 40 percent of the world’s oil, are opposed to emissions reductions targets imposed on industrialized nations by the Kyoto Protocol that threaten global oil demand growth.

Saudi Arabia has asked for compensation for the loss of income from oil sales as consumers look to obtain energy from cleaner fuels such as natural gas or renewable energy. UN climate negotiators gather in Durban, South Africa, for talks aimed at agreeing a successor to the present commitment period of the Kyoto Protocol, which obliges developed countries to cut greenhouse gas emissions by about 5 percent below 21990 levels by 2012.

Mitsubishi to supply commercial EVs to Suzuki

November 21, 2011. Mitsubishi Motors Corp will supply electric minivehicles for commercial use to Suzuki Motor Corp on an OEM (original equipment manufacturer) basis, as soon as next spring. Suzuki will receive the Minicab-MiEV, which is set to debut by year-end. Suzuki will market the electric vehicles (EV) under its brand, adding the first EV to its lineup. Anticipating demand, Mitsubishi will build around 4,000 units this fiscal year.

U.S. government a tenuous beachhead for biofuel firms

November 20, 2011. The U.S. military has emerged as a key ally for fledgling producers of non-food-based biofuels, who find themselves threatened by looming budget cuts and growing political hostility to renewable energy funding.

U.S. sets high bar for post-2020 climate accord after Durban

November 19, 2011. Climate-change deals reached at a United Nations meeting starting this month may be “completely silent” about how to combat global warming after 2020. While the U.S. isn’t part of the 1997 emissions-cutting Kyoto Protocol, portions of which took effect in 2005 and expire next year, the nation’s view on how to forge a replacement treaty may affect whether the current accord is extended through 2020.

Areva selling 300 MW of solar-thermal in 2011

November 18, 2011. Areva SA (CEI), which entered the solar- energy market by acquiring Ausra Inc., expects to have contracts to sell as much as 300 megawatts of solar-thermal systems. Opportunities in the U.S., Australia, India, the Middle East and Africa may yield an additional 450 megawatts of contracts by the end of 2012. The orders come as falling prices for photovoltaic panels are prompting developers such as Solar Millennium AG to abandon solar-thermal technology, which focuses sunlight with mirrors or lenses to heat liquids and drive steam turbines. Large companies like Areva will be more successful in solar-thermal than startups.

UBS analysts predict "collapse" in EU CO₂ permits

November 18, 2011. European Union carbon permits, which have shed more than 40 percent since June, could plunge further as the bloc struggles with a mounting debt crisis and a glut of supply in the carbon market is unlikely to disappear until 2025, analysts said.

Panasonic to build solar panel plant in Malaysia

November 18, 2011. Panasonic Corp will invest as much as 50 billion yen ($645 million) to build a solar panel plant in Malaysia, its first such facility overseas, as a strong yen pushes up production costs at home. The firm, which has been touting environmental and energy technology as key growth areas, dropped a plan to convert a television panel plant in Western Japan into a solar power factory in October because of the rising yen and an industry price war. The Malaysia plant will start production in the financial year starting next April and bolster the company's solar output capacity by 50 percent to about 900 MW. The company plans both production of solar cells and assembly of solar panels at the plant.

Brazil may cut taxes to ethanol producers

November 18, 2011. The Brazilian government is studying tax cuts and loans at lower interest rates for companies that stock ethanol during the period between sugar-cane harvests. The measures may be taken to boost ethanol supplies and prevent price increases.

Kent says Canada to speed environmental reviews of big projects

November 18, 2011. The Canadian government is considering to narrow the focus of its main environmental assessment agency so it can accelerate reviews of major industrial projects, Environment Minister Peter Kent said. The Canadian Environmental Assessment Agency examines projects that receive funding from or require the approval of the federal government, including oil and gas pipelines. As part of a scheduled review, the government has been examining the law that defines the agency’s powers.

Lego, Deutsche Bank, Motorola Pledging to obtain 25 pc wind power

November 18, 2011. Deutsche Bank AG, Lego A/S and Motorola Mobility Holdings Inc. are among 15 companies from 15 industries are getting at least 25 percent of their electricity from wind, or have pledged to do so.

Daily temperature extremes ‘virtually certain’ to rise, UN study says

November 18, 2011. Global daily temperature extremes are “virtually certain” to rise this century, a panel of about 200 United Nations scientists said in a study of weather-related natural disasters. Heavy downpours and heat waves may become more frequent. Europe will see longer and more intense heat waves and that average wind speeds of tropical storms will increase, the report said.

Energy Secretary Chu likely to survive Solyndra

November 18, 2011. Energy Secretary Steven Chu is taking the heat for government decisions on Solyndra, but he is unlikely to take the fall for taxpayer losses on a $535 million loan guarantee to the failed solar company. Chu will likely keep his job, unless damning new details come to light in several parallel investigations into Solyndra.

GM developing methods to handle volt batteries after crashes

November 18, 2011. General Motors Co. (GM) is developing ways to discharge the battery in Chevrolet Volts after accidents to prevent fires like the one that followed a government crash- test of the plug-in hybrid car in May. GM is working on safety practices with the U.S. National Highway Traffic Safety Administration and will make them public when completed. The Detroit-based automaker has taken longer to develop a plan than Nissan Motor Co. did for its Leaf electric car. Both the Volt and Leaf went on sale in December 2010.

EU rules may soak up $93 billion of utility cash

November 18, 2011. Companies from RWE AG to Vattenfall AB may have to find an extra 69 billion euros ($93 billion) to meet unprecedented European Union regulations designed to crack down on speculation in the region’s energy markets. A proposal made by the EU may for the first time require utilities and other firms with commodity assets to set aside funds to clear, or safeguard, their power, fuel and carbon-permit trades against default. Those companies don’t currently need to clear so-called over-the-counter, or OTC, trades which, in power, account for 73 percent of Europe’s electricity market.

Italy 2011 biodiesel output seen down 32 percent

November 18, 2011. Biodiesel output in Italy, a major producer in the European Union, is set to fall to 500,000 tonnes at best this year, a 32 percent drop from 2010, hit by soaring inflows of cheaper imports. The Italian industry produced 211,234 tonnes of biodiesel in the first six months of this year and second-half output is expected to be broadly similar.

German proposal to cut solar target would ‘starve’ industry

November 17, 2011. A German plan backed by Economy Minister Philipp Roesler to reduce solar power installations in the world’s biggest market to 1 gigawatt a year would “starve” the renewable industry.

Candy-to-fuel demand cuts oil inventory to lowest since 1975

November 17, 2011. Stockpiles of the cooking oils used to make everything from candy bars to biofuels are declining to the lowest in two generations as farmers fail to keep up with demand expanding at five times the pace of the world population. Inventories of soybean, rapeseed, sunflower and six other oils will drop to less than 29 days of consumption this year, the fewest since 1975. Palm, the most-consumed oil, will rise 8 percent to 3,475 ringgit ($1,100) a metric ton in Malaysian trading by the end of the first quarter, the highest since March.

Germany to Cut Solar Installs to 1 GW a year

November 17, 2011. Germany aims to reduce annual solar power installations to 1 gigawatt from July 2012 to cut costs. Germany added a record 7.4 gigawatts in 2010.

As rooftops beat utilities, solar demand will jump, Analyst says

November 17, 2011. Solar power may already be cheaper than electricity produced from coal or natural gas in some U.S. markets, and as panel prices continue to fall it may become cost-effective for at least 10 percent of the country. The installed cost of residential solar power may fall as low as $3.00 a watt by 2016, said Richard Keiser, a former Sanford Bernstein analyst who’s now president of Keiser Analytics. At that price it will be competitive with utility- scale power plants that deliver more than 400 billion kilowatt- hours of electricity. Solar energy doesn’t need to compete on price with electricity generated by large, fossil fuel-powered plants, the most common comparison, Keiser said. It just has to be less expensive than the electricity consumers buy off the grid, a point that’s quickly coming into reach. When it’s cheaper to install solar panels than to buy power from utilities, installations will surge. Keiser estimates that there will be more than 100 gigawatts of solar panels in use in the U.S. in five years, roughly 25 times the current total. That’s more than the 21 gigawatts that the Solar Energy Industries Association expects will be generating power at end of 2015. Keiser predicts the increase will be driven by residential- rooftop projects and may be aided by solar-leasing programs that are bringing the technology within reach for more homeowners.

Magna makes German buy, launches GM E-Car project

November 17, 2011. Canadian-based Magna International Inc said it will acquire German parts maker BDW Technologies' four aluminum die casting operations in Europe. The acquisition will be done through Magna operating unit Cosma International and close in the first quarter of 2012. It will give Magna two die casting operations in Germany, one in Poland and one in Hungary. Magna, the world's third biggest auto parts maker also announced that it had developed a demonstration fleet of nine electric vehicles based on General Motors Co's Chevrolet Equinox crossover. The project, undertaken jointly with GM and with the help of a grant from the Ontario provincial government, will help Magna E-Car Systems and GM gain insight into the performance of electric vehicles in the crossover segment of the market. The Equinox EV fleet is propelled by Magna E-Car Systems' electric drive system.

EU plans probe of U.S. bioethanol imports, threatening taxes

November 17, 2011. The European Union plans to threaten to tack tariffs onto U.S. bioethanol imports over concerns that American producers may be using trade-distorting government aid to sell in Europe below cost.

GE signs pact with Newcom LLC on Mongolian wind farm project

November 17, 2011. General Electric Co. (GE) signed an agreement with Newcom LLC to supply advanced technology wind turbines to power the country’s first wind farm. The $100 million project will be located 70 kilometers southeast of Ulaanbaatar, Mongolia’s capital city, and is set to open in 2012.

Suntech sees solar rebound in a year after ‘difficult time’

November 17, 2011. Suntech Power Holdings Co., the world’s biggest maker of silicon-based solar panels, expects a revival in demand next year after subsidy reductions becalmed markets and cut prices across Europe.

Israeli firm unveils eco-friendly desalination unit

November 17, 2011. Israel's IDE Technologies has unveiled a transportable desalination system that uses traditional reverse osmosis technology but without the need for chemicals, allowing cheaper and more eco-friendly production of drinking water. The unit, the first of its kind, is housed in a standard, 12-meter-long skid-mounted container and can produce between 500 and 10,000 cubic meters of water per day, depending on the water type, the company said.

U.S. grants $112 million for energy-efficient transit

November 17, 2011. The U.S. Transportation Department is sending $112 million to projects across the country to help build energy-efficient transit vehicles and facilities. The money, intended to create environment-friendly transportation options as well as construction jobs, will be shared among 46 projects. The department received 266 funding requests for a total $1 billion. Pennsylvania projects will receive the most funding, $18 million for purchasing hybrid buses and spreading the use of vehicles fueled by natural gas. California agencies will receive $14 million, primarily for changing to electric, hydrogen fuel cell, hybrid and diesel hybrid buses that emit fewer pollutants into the air and rely less on oil. Florida projects will receive $11 million, Illinois projects $8.2 million, Ohio $6.3 million, Texas $8.4 million, and Washington $6.8 million.

GM to test Chinese plug-in vehicle market

November 17, 2011. General Motors Co. (GM) will introduce its Chevrolet Volt plug-in hybrid car in China at an auto show, and dealers will begin taking orders for the model “shortly”. GM will be first among the world’s largest automakers to sell a plug-in car in China, where rivals including Daimler AG and Nissan Motor Co. also plan to introduce similar models. Electric-car sales in China are forecast to exceed those in the U.S. by 2020, helped by government subsidies and investment as the Asian nation, the world’s largest polluter, seeks to cut emissions.

World Bank OKs $297 million for Morocco solar plant

November 17, 2011. The World Bank approved loans to Morocco totaling $297 million to help finance the first phase of a 500 megawatt solar power plant, among the largest in the world. The Ouarzazate concentrated solar power plant is the first in Morocco's $9 billion solar power program, vital for a country that has no oil or gas but has an abundance of sun. The World Bank said $200 million of the loan will come from its fund that lends to middle-income countries, and the other $97 million from a World Bank Clean Technology Fund.

Solarhybrid may use First Solar panels in California projects

November 17, 2011. Solarhybrid AG, a German renewable energy project developer, may use panels from First Solar Inc. on two California power plants that it’s seeking to buy. Solarhybrid asked First Solar, the world’s largest thin- film solar company, to form a joint venture as part of its effort to buy Solar Millennium AG ’s U.S. project pipeline of 2,250 megawatts.

S. Korea to invest 35.5 trillion won in green energy technology

November 17, 2011. South Korea, the world’s ninth- largest greenhouse gas emitter, plans to spend 35.5 trillion won ($31 billion) by 2020 to develop technology for renewable and nuclear energy and carbon emissions reduction. The investment is part of the nation’s road map to grab a 10 percent share of the world’s clean-energy market and have one of the world’s top five energy industries by 2020. South Korea wants to build its capabilities in alternative and nuclear energy and is spending 1 trillion won this year for preferential payments to renewables projects. The country also wants to cut reliance on oil and is expanding the use of cleaner-burning energy amid increasing concerns about the environment.

Fisker receives $58 million in financing for plug-in hybrids

November 16, 2011. Fisker Automotive Inc., the startup maker of plug-in hybrid luxury sports cars, received $58 million in additional financing to bolster its cash position as initial deliveries begin in the U.S.

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