Low Rhine River levels are ringing alarm bells: Companies in Europe are scrambling to adapt to receding waters at the Rhine River, putting the future of the major western European shipping lane at risk, Bloomberg reports. Some companies like German chemicals giant BASF are re-routing logistics to train and trucks, while others like German plastics manufacturer Covestro could be shifting some of their production to Belgium. The shallow water at the Rhine has forced freight operators to start revamping fleets with barges to allow them to navigate. The scorching heatwave in southern Europe pushed the river at Kaub to levels that would only allow in some cargo vessels carrying half of normal capacity. Despite recent rains raising water levels at the Rhine, it was still insufficient for vessels to sail fully loaded. An overhaul of the Rhine’s fleet of 8.9k ships to keep the commerce flowing is also coming in at a hefty price of EUR 90 bn.

Capital Energy to sell USD 1 bn worth of wind + solar power plants: Spanish renewable energy investor Capital Energy has hired financial advisor and asset manager Lazard to sell its USD 1 bn portfolio of 4.3 GW of onshore wind and solar plants in Spain, Reuters reports, citing people with knowledge of the matter. The sale includes 48 projects due to begin construction within 15 months. According to the sources, bidders could either grab projects near completion, less developed projects, or a combination of both.

Britain greenlights new oil and gas projects in the North Sea: UK Prime Minister Rishi Sunak approved around 100 new oil and gas extraction licenses in the North Sea and announced support for two carbon capture and storage clusters in northeast Scotland and the Humber in northern England, the Financial Times writes. The fossil fuel exploration plan is integral to the UK’s carbon-neutrality target for 2050 because it will minimize imports of natural gas, according to Sunak. “When we reach net zero in 2050, a quarter of our energy needs will still come from oil and gas, and domestic gas production has about a quarter or a third of the carbon footprint of imported gas,” Sunak said, according to The Guardian. While Sunak says the move is consistent with the UK’s environmental commitments, the International Energy Agency has said that no new oil and gas projects should go forward if the Paris-agreed 1.5°C warming limit is to be met. The move is drawing criticism from climate advocates who say the plan would “send a wrecking ball” through the country’s climate targets.

REMEMBER- Greenpeace is taking the British government to court: London’s High Court approved Greenpeace’s request to challenge the British government over granting new licenses for fossil fuels extraction in the North Sea last April. Last year, the UK held its first oil and gas exploration licensing round since 2019 in a bid to shore up local energy supply after energy prices skyrocketed.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Adani’s sales on the up and up: Adani Green Energy reported bumper earnings in 2Q — up about 50% y-o-y to stand at USD 39 bn — on the back of a 70% rise in energy sales from new projects and improved use of solar plants. (Bloomberg)
  • EU finalizes corporate ESG rulebook: The EU Commission issued a finalized version of its rulebook on corporate ESG disclosures. Large companies will issue their first ESG reports in 2025 based on 2024 data. (Bloomberg)
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