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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[1/2]A logo of Brazil’s state-run Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes/File Photo Acquire Licensing Rights
HOUSTON/BRASILIA/RIO DE JANEIRO, Nov 17 (Reuters) – Brazil’s leftist President Luiz Inacio Lula da Silva pressed the head of state-run oil firm Petrobras (PETR4.SA), Jean Paul Prates, to modify the company’s 2024-2028 investment plan to prioritize local job creation, five sources told Reuters.
Lula’s requests to Prates may raise fresh fears of political interference in the company, which under previous administrations has come under pressure to boost Brazil’s economy over the concerns of private investors.
In a Nov. 9 meeting in Brasilia, Prates presented Lula with a draft of the investment plan, which is due to be unveiled at the end of this month, the sources said.
They said Lula complained about Petrobras’ lack of planned investments in Brazil’s shipbuilding industry, a sector that has long been close to his heart and which he hopes to revitalize.
Lula told Prates that Petrobras should commission 25 ships to be built in Brazilian shipyards, instead of the four currently planned.
He also complained about Petrobras hiring foreign suppliers, arguing it should instead focus on using Brazilian firms, the sources said.
Additionally, Lula asked for Petrobras to push forward completion of a fertilizer factory in Mato Grosso do Sul state by two years, so it is finished before his term ends in 2026.
Another of Lula’s suggestions was to kickstart projects currently listed in the plan as under preliminary analysis.
When asked for comment, Petrobras referred Reuters to a Nov. 8 statement, in which it said it is still finalizing its investment plan. Any eventual changes to its spending plans would follow the strategic guidance approved by the company’s board, the statement said.
Brazil’s presidency did not immediately respond to a request for comment.
Last week, Reuters reported that Petrobras’ plan will include around $100 billion in investments that the firm is both analyzing and those it has already committed to. In the previous 2023-2027 plan, Petrobras projected $78 billion in investments.
The sources said Lula’s requests will likely complicate completion of the plan before the end-November deadline. Prates is due to meet the president next week to discuss alterations.
The plan has yet to be presented for approval by Petrobras’ board.
Reporting by Sabrina Valle, Lisandra Paraguassu, Rodrigo Viga Gaier; Additional reporting by Marta Nogueira; Writing by Fabio Teixeira; Editing by Roberto Samora, Gabriel Stargardter and Marguerita Choy
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Exxon Mobil logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights
JAKARTA, Nov 14 (Reuters) – Indonesia’s Coordinating Ministry for Maritime and Investment Affairs has signed an initial agreement with Exxon Mobil (XOM.N) to explore potential investment in a petrochemical project in the country, the ministry said in a statement.
The potential project is expected to produce polymer and may utilise carbon storage facility Exxon is currently reviewing with state oil company Pertamina, it said.
The agreement was signed during Indonesia’s President Joko Widodo’s U.S. trip this week.
During the same trip, Pertamina and Exxon also agreed to move ahead with their evaluation to invest over $2 billion for carbon capture and storage (CCS) facilities using two basins in the Java Sea, Pertamina said in a separate statement on Tuesday.
The CCS hub has the potential to store at least 3 gigatons of carbon emitted by carbon-intensive industries in Indonesia and the rest of the region, Pertamina Chief Executive Nicke Widyawati said.
Jack Williams, senior vice president at Exxon Mobil, said Exxon and Pertamina have the potential to reduce emissions and support economic growth in Indonesia.
Reporting by Fransiska Nangoy and Bernadette Christina; Editing by Tom Hogue
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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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A plane belonging to Garuda Indonesia is seen on the tarmac of Terminal 3, SoekarnoÐHatta International Airport near Jakarta, Indonesia April 28, 2017. REUTERS/Darren Whiteside/File Photo Acquire Licensing Rights
JAKARTA, Oct 27 (Reuters) – Indonesia on Friday flew its first commercial flight using palm oil-blended jet fuel, as the world’s biggest producer of the commodity pushes for wider use of biofuels to cut fuel imports.
Operated by flag carrier Garuda Indonesia, the Boeing 737-800NG aircraft carried more than 100 passengers from the capital Jakarta to Surakarta city about 550 kilometres (342 miles) away, Garuda Indonesia CEO Irfan Setiaputra said.
“We will discuss further with Pertamina, Energy Ministry and other parties to ensure this fuel is commercially reasonable,” Irfan said during a ceremony, adding the plane was set to return to Jakarta later on Friday.
Garuda conducted several tests including a flight test on the new fuel earlier this month and an engine ground test in August.
The palm-oil blended jet fuel is produced by Indonesian state energy firm PT Pertamina (PERTM.UL) at its Cilacap refinery, using hydroprocessed esters and fatty acid (HEFA) technology and is made of refined bleached deodorized palm kernel oil.
Pertamina has said the palm-based fuel emits less atmosphere warming greenhouse gases compared with fossil fuels, and palm oil producing countries have called for the edible oil to be included in feedstock for the production of sustainable aviation fuel (SAF).
“In 2021, Pertamina successfully produced 2.0 SAF in its Cilacap unit using co-processing technology and was made of refined bleached deodorized palm kernel oil with production capacity 1,350 kilolitres per day,” said Alfian Nasution, a director at Pertamina.
Meanwhile, Harris Yahya, a director at Energy Ministry said the use of biofuel would lower the greenhouse effect.
The aviation industry, a major emitter of greenhouse gases, is looking for ways to cut its carbon footprint by using alternative fuels.
Experts say the industry will need 450 billion litres of SAF a year by 2050, if the fuel is to account for around 65% of the mitigation needed to achieve net-zero targets.
But some countries have raised concerns over the potential for deforestation in the production of palm oil from plantations. The European Union has imposed import restrictions on the commodity.
In 2021, Indonesia ran a test flight with the same fuel on an aircraft made by state-owned Dirgantara Indonesia, flying from the city of Bandung in West Java to the capital Jakarta.
Indonesia has mandated 3% biofuel blending by 2020 for jet fuel, but implementation has been delayed.
Reporting by Bernadette Christina; Editing by Kanupriya Kapoor and David Evans
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A logo of Brazil’s state-run Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes/File Photo Acquire Licensing Rights
RIO DE JANEIRO, Sept 28 (Reuters) – The head of Brazil’s state oil firm Petrobras (PETR4.SA) said on Thursday it will sign a memorandum of understanding with mining giant Vale (VALE3.SA) to study potential joint ventures in renewable energy, even as looks to new suppliers for diesel.
“Vale is a consumer (of energy) and probably very interested in hydrogen production, it has some activities in energy transition that are interesting,” Petrobras CEO Jean Paul Prates told reporters, saying the companies would look for synergies.
The partnership would come at a time when Petrobras is pushing to move into renewable energy. Earlier this month, the state-run firm unveiled plans to develop offshore wind farms.
Regarding diesel, Prates said Petrobras could if necessary and strategic import the fuel from abroad as bans on Russian imports – the main source of imported diesel in Brazil – could force the country to look for suppliers elsewhere.
Russia surpassed the United States as Brazil’s top supplier this year.
“We’re going to import to meet our contracts and possibly one or two more quotas that are necessary and that we see as an opportunity to enter a new market or a new customer that is good for us,” Prates said.
Meanwhile, spiking oil prices have widened the gap between Petrobras’ refinery prices and those charged abroad, which analysts say is discouraging third-party imports. Petrobras last adjusted its gasoline and diesel prices in mid-August.
“The models, for the time being, indicate it’s possible to maintain the same level with absolutely no risk to the company’s profitability,” said Prates.
Petrobras’ refinery utilization factor is currently at a rate of 94%, he added.
Reporting by Marta Nogueira; Editing by Steven Grattan and Sarah Morland
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People walk along the beach on the Suffolk coast as the Sizewell B nuclear power station can be seen on the horizon, near Southwold, Britain, January 31, 2019. REUTERS/Russell Boyce Acquire Licensing Rights
LONDON, Sept 18 (Reuters) – Britain on Monday opened the search for private investment in the Sizewell C nuclear project, inviting potential investors to register their interest.
The building of the plant by French energy giant EDF in southeast England, capable of producing around 3.2 gigawatts of electricity or enough to power around 6 million homes, was approved in July 2022.
“The government, the Sizewell C Company and EDF, the project’s lead developer, are looking for companies with substantial experience in the delivery of major infrastructure projects,” a statement from the Department for Energy Security and Net Zero said.
The British government announced last year that it would support Sizewell C with around 700 million pounds ($895 million) while taking a 50% stake during its development phase.
“The launch of the formal equity raise opens another exciting phase for the project, following a positive response from investors during market testing,” said Sizewell C Company Joint Managing Director, Julia Pyke.
Reporting by Kylie MacLellan, writing by William James
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A gas pump is inserted inside an Audi vehicle at a Mobil gas station in Beverly Boulevard in West Hollywood, California, U.S., March 10, 2022. Picture taken March 10, 2022. REUTERS/Bing Guan Acquire Licensing Rights
WASHINGTON, Sept 13 (Reuters) – The U.S. Energy Department has talked to oil producers and refiners to ensure stable fuel supplies at a time of rising gasoline prices, Jared Bernstein, head of the White House Council of Economic Advisers, said on Wednesday.
Rising U.S. gasoline prices were largely behind the largest increase in U.S. consumer prices in 14 months in August.
Gasoline prices jumped 10.6% in August after climbing 0.2% in July, accounting for more than half the increase in the Consumer Price Index. Gasoline prices peaked at $3.984 per gallon in the third week of August, according to data from the U.S. Energy Information Administration, up from $3.676 per gallon during the same period in July.
Reporting By Jeff Mason and Jarrett Renshaw
Editing by Chris Reese and David Gregorio
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A view shows a makeshift dwelling near an area where hundreds of artisan miners have found a rich seam of copper, in the hills of Tapairihua in Peru’s Andes, October 18, 2022. REUTERS/Marco Aquino/file photo Acquire Licensing Rights
LIMA, Aug 31 (Reuters) – Peruvian miner Minsur (MINSURI1.LM) has announced an investment of at least $2 billion in five years as it expands its copper and tin operations, an executive told Reuters on Thursday.
Minsur is set to invest around $543 million in an underground project in Justa mine, which is owned by the firm and Chilean mining company Copec (COPEC.SN), Minsur corporate affairs executive Gonzalo Quijandria said in a phone interview with Reuters.
Another $381 million will be invested to expand the processing plant and to improve the Justa mine camp, which began operations in 2021, Quijandria said.
The mine produced 126,036 fine metric tons of copper last year and was the world’s seventh most productive copper mine, according to official data.
Peru is the world’s No. 2 copper producer.
Minsur also operates the only mine in Peru for tin, a relatively rare element, and produces about 9% of this metal globally, according to the company.
Regarding such a production, Quijandria said Minsur plans to invest $462 million in its tin production line and another $100 million in tin exploration projects in the country.
“They are sustaining investments that include new tailings dams in the San Rafael mine and improvements in the Pisco smelter,” he said.
Minsur also plans to invest some $342 million in the modernization of its polymetallic producer Minera Raura.
Earlier on Thursday, Peru’s ministry provided a different breakdown of figures from the company, and Reuters did not receive an immediate response to a query about the discrepancy.
The announcement followed a meeting between Minsur CEO Juan Luis Kruger and Peru’s energy and mines minister, Oscar Vera.
The Mina Justa Subterranea project will be the second largest and most modern underground mine in Peru,” the ministry said in a statement, adding that Minsur expects to present the first permits for the project in the first months of next year, with production expected to start in 2027.
Reporting by Marco Aquino; Editing by Brendan O’Boyle, Paul Simao and Leslie Adler
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