Australia putting big bucks into domestic renewables: Australia plans to move away from its reliance foreign suppliers with a new AUD 22.7 bn (USD 15 bn) initiative aimed at enhancing domestic manufacturing and renewable energy sectors, Reuters reports. Key components of the initiative include tax incentives worth AUD 7 bn for critical minerals processing, AUD 6.7 bn for renewable hydrogen production, and AUD 1.5 bn to support solar panel and battery supply chain development from the fiscal year ending June 2028 to the 2039/40 fiscal year, the newswire writes.

Capitalizing off of Australia’s mineral wealth: Australian manufacturing has faced challenges due to high labor costs and geographical isolation, but the initiative seeks to address these hurdles while capitalizing on Australia's mineral wealth. It will target the ailing nickel sector with strategic interventions to sustain competitiveness and secure domestic supply chains. Australia recently classified nickel as a critical mineral, allowing the nickel sector to unlock bns of USD in government funds.

UK’s “net zero” Teesside project will produce 20 mn tons of CO2, experts say: The Net Zero Teesside project, which is supported by fossil fuel giants BP and Equinor, is expected to emit 20 mn tons of carbon over its operational lifespan despite its "net zero" branding, The Guardian reports, citing research submitted to the UK government. The initiative aims to construct a gas fired power station in the UK using carbon capture utilization and storage (CCUS) technology. Although the project claims it will capture and bury 95% of its emission in the North Sea, this would still release 20 mn tons of CO2 emissions.

Skepticism around CCS: If carbon capture and storage (CCS) is widely used, companies would still only be able to maintain up to 20% of current oil and gas demand until 2050 without exceeding global warming targets outlined in the Paris Agreement. A number of factors hinder CCS’s capabilities, such as its high cost and potential environmental damage to residents near the storage sites.

IN OTHER UK NEWS- Japan’s Sumitomo Electric Industries broke ground on the UK’s first factory dedicated to high-voltage subsea cables, according to a statement. The Scottish factory will produce cables capable of transmitting electricity from wind farms over long distances and will bring in GBP 350 mn in investments, Bloomberg reported.

Sumitomo has big plans: Sumitomo has been chosen by the UK’s largest renewables generator SSEN Transmission — along with cable installer Van Oord — as the top bidder for a 525 kV Shetland 2 High Voltage Direct Current subsea transmission line between the Shetland Islands and the mainland. The 330-km-long cable would connect 2 GW to the UK’s network. Around 21 GW of offshore wind projects off the coast of Scotland need to be connected by the type of cable the factory will produce, according to Bloomberg.

EQT wants wind developer OX2: Swedish private equity firm EQT has offered to acquire OX2, one of Sweden's largest wind park developers, for around USD 1.5 bn, Bloomberg reports. The offer from EQT Infrastructure VI fund represents a 43.4% premium over OX2's last closing price. The move is part of EQT's strategy to invest in the energy transition across Europe and the US, including previous investments totaling approximately EUR 12 billion in the sector to acquire German power producer Tion Renewables and Cypress Creek Renewables in the US.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Itochu sets sights on South African USD 5.9 bn ammonia purchase: Japanese trading company Itochu is looking to buy a USD 5.9 bn green ammonia project from Hive Hydrogen South Africa that would make the country a world leader in clean ammonia production. Hive could start producing green ammonia from the plant in 2029 — with plans to sell to East Asia — and talks on an offtake agreement are underway. (Bloomberg)
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