Author: Graham Foster

The Public Utility Commission of Texas (PUCT) recently decided not to move forward with a proposed $1 billion performance credit mechanism (PCM) aimed at helping power generators. The commission concluded that the PCM would not enhance the reliability of the state’s energy grid. Last year, lawmakers approved the PCM to provide incentives to power generators during times of grid stress, a response to the events following Winter Storm Uri in 2021 that caused significant power outages and loss of life. PUCT Commissioner Lori Cobos, who recently announced her resignation, highlighted the thorough evaluation process of the proposed mechanism during a…

BP has announced a significant shift in its strategy by forming a 50/50 joint venture with Jera, the largest power generation company in Japan. This new venture, named Jera Nex bp, will house BP’s offshore wind business, illustrating the company’s move away from a heavy investment in renewable energy towards a renewed focus on its primary oil and gas operations. Based in London, Jera Nex bp will integrate Jera’s existing capacity of 1GW with BP’s extensive pipeline of development projects, potentially enhancing its total capacity to 13GW. BP plans to invest as much as $3.25 billion into this initiative, while…

The Federal Energy Regulatory Commission (FERC) is facing a significant request from a group of large energy consumers and advocates. They are urging FERC to prohibit transmission owners from planning local transmission projects that exceed 100-kV on their own. This request arises from concerns about the efficiency and cost-effectiveness of current planning practices. The coalition argues that local planning, combined with the lack of an independent planner for transmission systems, has led to projects that are both inefficient and costly. They highlight that these methods contribute to higher rates for consumers and poor project outcomes. In a recent rule revision…

Venture Global, a major US developer of liquefied natural gas (LNG), has announced its intention to launch an initial public offering (IPO) aimed at harnessing investor interest as the country anticipates a surge in energy exports. This move comes as President-elect Donald Trump prepares to take office, potentially reshaping the energy landscape. The company, which aims to construct and manage five LNG terminals along the Gulf Coast, submitted its IPO application to the US Securities and Exchange Commission last Friday. However, the specific size of the offering on the New York Stock Exchange remains undisclosed. Reports indicate that Venture Global…

Argentina is looking to expand its nuclear energy sector by partnering with a US investor and utilizing small modular reactor (SMR) technology. This shift, as per a key advisor to President Javier Milei, may end a previous Chinese project planned for the same location. Demian Reidel, the official overseeing the country’s nuclear energy policy, shared that Milei plans to allocate a site in Buenos Aires province for a new 1.2GW nuclear project. This initiative, designed by the Argentine research facility Invap, will rely entirely on foreign private investment. Reidel mentioned, “The design is Argentine, and the capital will be American—100%…

Key Highlights: Novonix, a battery materials firm, has secured a conditional loan of $754.8 million from the Energy Department for its new synthetic graphite facility in Chattanooga, Tennessee, announced on December 16. This new facility will focus on producing materials for electric vehicle (EV) battery anodes, which are primarily imported from China at present. The project is expected to create 450 jobs and produce 31,500 metric tonnes of synthetic graphite annually, which will support the production of 325,000 electric vehicle batteries each year. Full production is anticipated by the end of 2028. Industry Context: Currently, China holds more than 95%…

The emergence of protectionist policies under president-elect Donald Trump could potentially slow down the global shift toward greener energy solutions, warns Mike Henry, the CEO of mining giant BHP. Henry expressed his concerns about Trump’s suggested tariffs on imports and the possibility of a global trade conflict, highlighting these as significant obstacles for the energy transition. BHP, which operates the world’s largest copper mine, plays a crucial role in supporting decarbonization efforts because copper is key to various technologies, including electricity cables, wind turbines, and solar panels. Speaking in Paris, Henry stressed that the geopolitical effects of U.S. policies might…

Welcome to the last Energy Source newsletter of 2024, sent to you from New York! Recently, the Federal Reserve reduced interest rates for the third time this year, but hinted that borrowing costs could stay higher than anticipated in 2025. This news caused a drop in the stocks of renewable energy companies, with the iShares Clean Energy ETF finishing 3.2% down. The renewables sector has been under pressure due to high initial costs, and with a new US president, Donald Trump, stepping in, there are more uncertainties for the upcoming year. As we wrap up 2024, we reflect on key…

Syria’s largest oil refinery, the Baniyas facility, has stopped its operations due to a lack of crude oil imports from Iran, which previously provided about 90% of its supply. The refinery, which typically processes between 90,000 and 100,000 barrels of oil each day, last produced petrol on Friday, according to general manager Ibrahim Mousallem. Currently, the refinery is performing only minor maintenance as it awaits new supplies of crude oil. Mousallem mentioned that the new leaders of Syria, from the Salvation Government in the northwest, are hopeful for the lifting of sanctions that would allow the country to source oil…

Customers in the UK are set to face a significant increase in their water bills, with average costs expected to rise 36% by 2030. This decision comes after Ofwat, the water regulator, permitted utilities in England and Wales to increase their prices. The news, which was announced on Thursday, has sparked widespread frustration among the public and attracted political criticism aimed at water companies over issues like pollution and poor service delivery. Thames Water, being the largest water company in the UK, is particularly under pressure as it struggles financially and faces the possibility of temporary renationalization. Ofwat has also…