Mexico’s President Andres Manuel Lopez Obrador speaks during his regular press conference where he said that his government will help Cuba, including providing it with oil, at the National Palace in Mexico City, Mexico October 16, 2023. Mexico Presidency/Handout via REUTERS Acquire Licensing Rights
MEXICO CITY/COPENHAGEN, Nov 24 (Reuters) – A Danish fund will invest $10 billion in a development hub in southern Mexico to produce green hydrogen for ships and to replace fossil fuel use, Mexican President Andres Manuel Lopez Obrador said on Friday.
One of Lopez Obrador’s key infrastructure projects is the development of an industrial corridor connecting the Pacific and Atlantic oceans in Mexico’s poorer south.
“It is a financial economic fund from Denmark, they are going to invest in a development hub (…) $10 billion, because they are going to produce green hydrogen to replace fossil fuels,” the president told a press conference.
In August, Lopez Obrador said that Danish asset manager Copenhagen Infrastructure Partners (CIP) was going to begin construction of a green hydrogen plant in the southern port of Salina Cruz to supply ships with the fuel.
At the time, the president did not mention the size of the investment, and a spokesperson for CIP said on Friday that its plans for Mexico were known.
“We can confirm that we are involved in a large-scale green hydrogen project in the Oaxaca region in Mexico. Further development will take place in collaboration with local authorities and partners,” CIP said when contacted on Friday. “We will provide further updates as the project progresses.”
The CIP spokesperson said they did not know whether Lopez Obrador was talking about the same project on Friday and declined to confirm the sum he cited as its planned investment.
Lopez Obrador, a strong proponent of fossil fuels since taking office in late 2018, said that new vessels around the world will use the green hydrogen obtained through wind and solar energy via electrolysis.
“We are talking about the era of non-pollution, of everything being done to prevent climate change,” the president added, without providing further details on the investment or its timeline.
Denmark’s embassy in Mexico did not immediately respond to a request for comment on the president’s comments.
Reporting by Raul Cortes Fernandez; Additional reporting by Dave Graham in Mexico City and Johannes Birkebaek in Copenhagen; Writing by Brendan O’Boyle; Editing by Alistair Bell
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A gas pump selling E15, a gasoline with 15 percent of ethanol, is seen in Mason City, Iowa, United States, May 18, 2015. Over the past few months, privately held retailers Kum & Go and Sheetz have become the first significant chains to announce plans to start selling E15, 50 percent more than the typical U.S. blend. REUTERS/Jim… Acquire Licensing Rights
Nov 24 (Reuters) – The White House is stalling action on requests by Farm Belt states to allow regional sales of gasoline blended with higher volumes of ethanol after oil industry warnings that the move could cause regional supply disruptions and price spikes, according to two sources familiar with the matter.
The decision underscores concerns within President Joe Biden’s administration over fuel prices, as opinion polls show inflation and the economy as key vulnerabilities for his 2024 re-election bid. In an NBC News poll released on Sunday, just 38% of respondents approved of Biden’s handling of the economy.
Governors from eight Midwestern states – Illinois, Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin – petitioned the Environmental Protection Agency last year to let them sell gasoline blended with 15% ethanol, or E15, all year, arguing it would help them lower pump prices that soared following Russia’s invasion of Ukraine in February 2022.
The EPA last March issued a proposal that would approve the request by the governors. The agency subsequently missed deadlines to finalize the proposal after oil refiners including HF Sinclair Corp (DINO.N) and Phillips 66 (PSX.N) warned that a patchwork approach to approving E15 sales would complicate fuel supply logistics and raise the risk of spot shortages.
U.S. gasoline typically contains 10% ethanol.
The two sources familiar with the administration’s thinking, speaking on condition of anonymity, said the White House decided to delay action on the matter following the oil industry’s warnings in part because of concern that higher pump prices in certain states could hurt Biden’s re-election chances.
White House and EPA officials declined to comment on the matter.
Ethanol, a domestically produced alternative fuel most commonly made from corn, is cheaper by volume than gasoline. Adding more of it to the fuel mix can lower prices by increasing overall supply. But the U.S. government restricts sales of E15 gasoline in summer months due to environmental concerns over smog.
The ethanol industry for years has pushed to lift the restrictions on E15 sales nationwide, arguing the environmental impacts have been overstated.
Nebraska and Iowa sued the EPA in August for missing its statutory deadlines on the request by the governors. In its October response, the EPA did not deny it that missed the deadlines and did not offer an explanation.
The oil and ethanol lobbies have produced dueling studies that show how allowing E15 in some states would impact prices, with predictable results. Oil industry-backed studies showed price increases, while ethanol industry-backed studies showed any price increases offset by utilizing lower-cost ethanol.
University of Houston energy economist Ed Hirs said the average U.S. consumer does not understand oil markets, leaving the White House and Biden’s re-election campaign vulnerable to accusations that approving the requests by the governors caused fuel prices to spike, even if something else was to blame.
“There is an unwritten rule that high gas prices mean the incumbent won’t get re-elected,” Hirs said.
Reporting by Jarrett Renshaw and Stephanie Kelly; Editing by Will Dunham
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Canada’s Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland walk holding the 2023-24 budget, on Parliament Hill in Ottawa, Ontario, Canada, March 28, 2023. REUTERS/Patrick Doyle/File Photo Acquire Licensing Rights
OTTAWA, Nov 21 (Reuters) – Following are some of the commitments the Canadian government made in its Fall Economic Statement released on Tuesday.
*invest an additional C$15 billion in new loan funding, starting in 2025-26, for the Apartment Construction Loan Program, for a total of more than C$40 billion in loan funding. This investment will support more than 30,000 additional new homes, bringing the contribution to more than 101,000 new homes supported by 2031-32.
*invest an additional C$1 billion over three years, starting in 2025-26, for the Affordable Housing Fund. This investment will support non-profit, co-op, and public housing providers to build more than 7,000 new homes by 2028.
*help remove barriers to internal labor mobility, including by leveraging federal transfers, and other funding, to encourage provinces and territories to cut the red tape that impedes the movement of workers, particularly in construction, health care and child care
*deny income tax deductions for expenses incurred to earn short-term rental income, including interest expenses, in provinces and municipalities that have prohibited short-term rentals. It will also deny income tax deductions when short-term rental operators are not compliant with the applicable provincial or municipal licensing, permitting, or registration requirements.
*propose to spend C$50 million over three years, starting in 2024-25, to support municipal enforcement of restrictions on short-term rentals.
*introduce a new Canadian Mortgage Charter, which outlines how financial institutions are to work to provide tailored relief and ensure payments are reasonable for borrowers.
*the Canadian Radio-television and Telecommunications Commission will conduct a prompt investigation of international mobile roaming charges, and will provide an update and concrete next steps in 2024.
*work with the Canadian Transportation Agency to ensure that airlines seat all children under the age of 14 next to their accompanying adult at no extra cost
*explore removing the rule that restricts Canadian pension funds from holding more than 30% of the voting shares of most corporations. It also proposes to require large federally-regulated pension plans to disclose the distribution of their investments, both by jurisdiction and asset-type per jurisdiction, to the Office of the Superintendent ofFinancial Institutions
*begin buying up to C$30 billion of Canada Mortgage Bonds, starting as early as February 2024
(Reporting by Steve Scherer and David Ljunggren)
(steve.scherer@thomsonreuters.com; +1-647-480-7889)
Keywords: CANADA BUDGET/FACTBOX
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A worker assembles a new bike frame at the Pashley bicycle factory in Stratford-upon-Avon, Britain, June 30, 2022. REUTERS/Phil Noble/File Photo Acquire Licensing Rights
LONDON, Nov 17 (Reuters) – Britain announced a 4.5 billion-pound ($5.59 billion) investment programme for key manufacturing industries on Friday, with the automotive sector taking up a large chunk of the funds to support the move to zero emission vehicles.
The finance ministry said the funds will be available from 2025 over the course of five years, with 2 billion pounds earmarked for the car industry, 975 million pounds for aerospace and 960 million for clean energy.
The plans form part of the Autumn Statement that finance minister Jeremy Hunt will present on Nov. 22, hoping to revive the fortunes of both a stagnant British economy and the governing Conservatives ahead of an election expected next year.
“Our 4.5 billion pounds of funding will leverage many times that from the private sector, and in turn will grow our economy, create more skilled, higher-paid jobs in new industries that will be built to last,” Hunt said in a statement.
Hunt separately told reporters the commitment was “new money”, rather than a reallocation of previously announced spending, and that Britain favoured targeted support over blanket subsidies.
“We’re not getting into a global subsidy race,” he said.
As of the third quarter, British business investment stood 4% higher than its pre-pandemic level – a better performance than Germany, but some way behind France and the United States, according to a Reuters analysis of OECD data.
Earlier on Friday the IPPR think tank, which describes itself as an advocate for progressive policy, published a report that showed years of incoherent industrial strategy had badly hurt business investment in Britain.
“It’s time to be clear about the UK’s strategic objectives, like growing the green manufacturing and services we need for the future, and then to use every tool in the box to get us there,” said George Dibb, head of the Centre for Economic Justice at IPPR.
Hunt is considering making permanent a time-limited tax incentive that is designed to spur corporate investment, according to the boss of telecoms giant BT (BT.L), who said any such move would be a “game-changer”.
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Reporting by Andy Bruce, Editing by Kylie MacLellan
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A piece of equipment called a distributor used to hold trays of limestone for capturing carbon is seen at the Heirloom Carbon Technologies facility in Brisbane, California, U.S. February 1, 2023. REUTERS/Nathan Frandino/File Photo Acquire Licensing Rights
Nov 9 (Reuters) – California climate technology company Heirloom on Thursday unveiled what is says is the first U.S. commercial plant to suck planet-warming carbon dioxide from the air, a milestone in the effort to scale up nascent carbon removal technologies and hit global climate goals.
Scientists expect the world will need to remove billions of tonnes of carbon-dioxide from the air annually. Direct Air Capture such as that used by Heirloom can secure the CO2, but it is not yet clear whether it can do so at a price that makes the technology practical.
The new facility, which uses crushed limestone to capture 1,000 tonnes a year, is part of a ramp up that Heirloom says will cut costs. Current industry prices for carbon removal by direct air capture are around $600-$1,000 a tonne, one person familiar with the situation said.
Some of Heirloom’s first sales for capture and storage, in 2021, were more than $2,000 per tonne, and the U.S. government is aiming eventually for $100 a tonne.
The new plant, about an hour and a half from San Francisco Bay in Tracy, California, has tall stacks of trays holding limestone open to the air. The rock naturally absorbs CO2 and Heirloom has treated it to do so in a few days. Rock that has captured CO2 is heated with renewable energy to release the gas, and then reused. Heirloom works with startup CarbonCure to store the gas from the new plant in concrete.
U.S. Secretary of Energy Jennifer Granholm, who was due to visit the site on Thursday, in a statement called the plant a blueprint for beating climate change. The Department of Energy is spending billions in grants to built Direct Air Capture demonstration hubs. Heirloom is one of the winners of the largest tier grant.
Occidental Petroleum (OXY.N), another hub grant winner, aims to marry acquired DAC technology with its own expertise managing resources underground, where most of the carbon dioxide is expected to be stored.
BlackRock Inc, the world’s biggest money manager, on Tuesday said it will invest $550 million in Occidental’s West Texas plant.
Reporting By Peter Henderson
Editing by Marguerita Choy
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[1/4]An endangered coho salmon swims during spawning season in Lagunitas Creek in Marin County, California, U.S. January 13, 2022. Picture taken January 13, 2022. REUTERS/Nathan Frandino/File Photo Acquire Licensing Rights
Nov 8 (Reuters) – U.S. commercial fishing groups on Wednesday sued 13 tire manufacturers in California, saying a chemical used in their tires is poisoning West Coast watersheds and killing rare trout and salmon.
The Institute for Fisheries Resources and the Pacific Coast Federation of Fishermen’s Associations sued Bridgestone Corp (5108.T), Continental (CONG.DE), Goodyear Tire & Rubber (GT.O), Michelin (MICP.PA) and others in San Francisco federal court, alleging a chemical used in their tires known as 6PPD is killing protected salmon and trout in violation of the Endangered Species Act.
The fishing groups said the chemical, which becomes toxic when it degrades, is released from tires as vehicles drive around and park. They said the degraded chemical can be flushed into waterways during storms, where it kills protected salmon and trout.
Declining fish populations have led to restrictions on commercial fishing, the lawsuit said.
The lawsuit said researchers have identified the degraded form of 6PPD as causing salmon mortality, and that scientists believe trout and other fish are also likely being killed by the chemical.
The groups, which say that pollution has decimated their industry, want the court to issue an injunction barring the companies from manufacturing tires with the chemical without first taking measures to protect fish and watersheds.
The tire manufacturers did not immediately respond to requests for comment on Wednesday.
The lawsuit is the first in the U.S. to target tire manufacturers for their use of 6PPD, which is found in nearly every tire on the planet, according to Elizabeth Forsyth, an attorney for the fishing groups with the environmental law firm Earthjustice.
Forsyth said the lawsuit focuses on West Coast impacts from the chemical, but that she expects there will be further scientific evidence tying the chemical to damages elsewhere in the future.
The U.S. Environmental Protection Agency said earlier this month that it would take steps to regulate the chemical, which has been used in tires for decades and acts as a stabilizer to prolong the life of rubber. The EPA said exposure to the chemical can kill fish within a few hours.
In July, California’s Department of Toxic Substances Control adopted a rule requiring tire manufacturers to evaluate safer alternatives to 6PPD, noting the threat to coho salmon.
Together, the 13 tire manufacturers sued on Wednesday account for 80% of the domestic U.S. tire market, according to the lawsuit.
Reporting by Clark Mindock, Editing by Alexia Garamfalvi and Sandra Maler
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Nov 1 (Reuters) – Trane Technologies reported third-quarter results that beat analysts’ estimates and raised profit and revenue forecasts for the full year, underpinned by strong demand for heating and air-conditioning systems for commercial buildings.
Global warming and rising levels of air pollution have led to an increase in demand for air conditioners and air purifiers.
The company said on Wednesday it now expects 2023 revenue growth between 10% and 11%, up from its prior outlook of 10% growth.
Trane Technologies increased its outlook for full-year adjusted profit to about $9.00 per share, from its previous forecast of $8.80 to $8.90 per share.
The company, which operates brands such as Thermo King and Frigoblock, benefited from increased demand for environment-friendly heating, cooling and ventilation systems for commercial buildings and refrigeration systems used in trucks.
“With bookings at an all-time high, we continue to see robust customer demand for our sustainable products and services, with particular strength across our commercial HVAC businesses globally,” CEO Dave Regnery said.
On an adjusted basis, Trane earned $2.79 per share, compared with estimates of $2.66, according to LSEG data.
The company posted net revenue of $4.88 billion, compared with estimates of $4.80 billion.
Reporting by Kannaki Deka in Bengaluru; Editing by Shounak Dasgupta
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RIO DE JANEIRO, Oct 27 (Reuters) – BlackRock-managed fund Climate Finance Partnership (CFP) will make its first foray into Latin America with the acquisition of a minority stake in Brasol, a Brazilian renewable energy firm, BlackRock announced on Friday.
The stake will be “shy of 50%,” said portfolio manager Anmay Dittman, adding the investment will be a “test case” for future transactions in the region.
“We’re really excited to get a little bit of a beachhead in Latin America and hoping that we’ll find many more great investments,” Dittman said at a press conference.
CFP, a public-private fund which partners with the French, German and Japanese governments as well as some U.S.-based organizations, targets emerging market climate infrastructure.
CFP did not disclose the amount paid for the stake, but Brasol Chief Executive Officer Ty Eldridge said the cash injection will help the firm in its one-billion-real ($200.38 million) plan to increase energy generation capacity.
Brasol operates renewable energy assets and leases them to commercial and industrial clients.
Brasol plans to boost its generation capacity by 200 megawatts in the next 18 months, Eldridge said.
While solar, the firm’s “bread and butter,” will be a key focus, Brasol is also looking into other technologies, like electric vehicle charging, Eldridge said.
“I can’t tell you where every dollar is going to go,” he said. “But certainly it’ll go into this broad portfolio of energy transition assets, and it’ll be certainly more than just solar power.”
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Reporting by Fabio Teixeira; Editing by Cynthia Osterman
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The logo of Mexico’s Central Bank (Banco de Mexico) is seen at its building in downtown Mexico City, Mexico February 28, 2019. Picture taken February 28, 2019. REUTERS/Daniel Becerril/File Photo Acquire Licensing Rights
MEXICO CITY, Oct 11 (Reuters) – Mexico on Wednesday issued a decree to grant tax breaks for companies that relocate operations to Mexico, targeting major export industries such as carmaking and semiconductors, a move that won cautious praise from economists.
The incentives are designed to attract companies that want to shift their offshore operations closer to their customers, called nearshoring, in the wake of supply chain disruptions in Asia during the COVID pandemic.
Deputy finance minister Gabriel Yorio said in a post on X the incentives would apply to 10 sectors of the economy, including the manufacture of batteries, engines, fertilizers, pharmaceuticals, medical instruments and agribusiness.
President Andres Manuel Lopez Obrador has said Mexico should benefit from moves by industry to reduce dependence on China, but critics argue that his administration has been slow to set out clear-cut incentives to encourage investment.
Though welcomed, the measures failed to dispel concerns the government is obstructing investment by failing to provide essential infrastructure for companies, especially because of its nationalist energy policies favoring fossil fuels.
“These incentives are a good step in efforts to attract companies to the country”, said Gabriela Siller, an economist at Banco Base who is often critical of government policy.
But Mexican authorities need to spend more to guarantee power and water supply for industry and provide companies with a stable policy environment to encourage investment, Siller said.
Mexico could lure annual foreign direct investment flows of $55 billion to $60 billion if it takes better advantage of nearshoring, up from $36 billion in 2022, she said.
The new incentives include accelerated investment deductions of 89%-56% in 2023 and 2024, and additional deductions of 25% during three years for worker training, Yorio said.
The top 89% deduction will be available for machinery and equipment intended directly for research into new products or technology development in the country, the decree said.
The automotive, farm and tech sectors are among those set to receive deductions of more than 80%.
Lopez Obrador has prioritized support for Mexico’s fossil-fuel dependent and cash-strapped state power companies, feeding concerns about shortages of renewable energy that many major investors need to meet more ambitious climate targets.
That has dampened expectations Mexico could benefit from increased investment in semiconductors in North America.
Mexico’s moves to strengthen public sector control of the energy market have sparked trade disputes with Canada and the United States.
Ramse Gutierrez, vice president of investments at asset manager Franklin Templeton Mexico, said the public and private sectors needed to work together to lift the clean energy supply many companies need to win financial backing for projects.
U.S. carmaker Tesla has urged the government of Nuevo Leon state to build vital infrastructure for its planned auto assembly plant in northern Mexico, officials said this month.
Carlos Vejar, a former Mexican trade negotiator, welcomed the government’s announcement but urged it to improve infrastructure, security and the facilitation of permits.
Mexico still faces competition to win investment from both North and Central America, plus Colombia, he said.
“I don’t think this measure is a game-changer to persuade those who have doubts,” said Vejar.
Reporting by Valentine Hilaire; Additional reporting by Dave Graham; Editing by Anthony Esposito, Grant McCool and Sonali Paul
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People attend a demonstration to stop chemical sewage dumps, at Gwithian Beach, St. Ives, Cornwall, Britain, April 16, 2023. REUTERS/Dylan Martinez/files Acquire Licensing Rights
Oct 2 (Reuters) – Several UK water firms on Monday proposed investing billion of pounds to tackle water quality, leakage and pollution issues, in a move that an industry body said would see bills rise by an average of 156 pounds a year per household by 2030.
The investments are part of regulator Ofwat’s price review programme, wherein water utilities set out their plans for the next five-year regulatory period to drive up performance and keep in line with environmental guidelines.
South West Water’s parent firm Pennon Group (PNN.L) said it would invest about 2.8 billion pounds ($3.4 billion) over 2025-2030, while United Utilities (UU.L) submitted a total expenditure plan of 13.7 billion pounds across the same period.
These plans are subject to approval, and the England and Wales regulator will provide its final decision on the proposals in December 2024.
As a result of these record investments totalling 96 billion pounds, the average bill increase in England is expected to be an additional 7 pounds per month by 2025 and that is expected to increase to 13 pounds per month in 2030, according to industry body Water UK.
Britain’s water companies have come under fire from customers and the government alike for piling up debt and permitting shareholders and executives to profit at the expense of the ecosystem.
The industry, which was privatised in 1989, has also come under intense scrutiny over sewage releases which have dirtied rivers and beaches and hammered public confidence in the sector over price increases in the middle of a cost-of-living crisis.
“The problem the utilities face is that the costs of borrowing have gone up significantly and this makes the juggle between rewarding shareholders, funding investment and keeping a lid on bills a difficult one. Households will absorb a lot of the pain but investors will have to take their share too,” said Russ Mould, investment director at AJ Bell.
Ofwat’s annual performance report last week noted that only five out of 17 water companies under its watch achieved their targets on reducing pollution incidents, while half met their performance commitment on leakages in the 2022-2023 fiscal year.
Last Friday, Severn Trent (SVT.L) announced plans to invest 12.9 billion pounds under the programme and said it will raise 1 billion pounds to help finance the investment.
Shares in Pennon and United Utilities were up 3.7% and 2.9% in Monday morning trade.
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Reporting by Prerna Bedi and Eva Mathews in Bengaluru; Editing by Rashmi Aich and Hugh Lawson
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