Andrew Fraser (Aberdeen Standards) | They talk, but they don’t do,’ this is how the Queen expressed her frustration with world leaders on the eve of COP26. The same accusation could be levelled at the world’s major banks. They finance the world’s largest companies and have a huge role to play in halting climate change. But the opportunity has yet to be fully grasped. Banks could take a major part…
The Spanish government sent a letter last week to the European Commission, in which it urged the region to adopt a common response to the electricity problem at the European level. The letter called for a reform of the wholesale electricity market and the creation of a European gas purchasing platform and strategic reserves. However, the institution dismissed Spain’s request. It will limit itself to guiding member states on measures to temporarily reduce the electricity bill within the margins of EU regulations.
Mirabaud | When electricity needs to be produced, the cheapest energy sources are used first: wind, solar and hydro. If they are not available, more expensive energies are added: lignite, nuclear, coal, gas and,finally,green ammonia.
You may ask, rightly, what green ammonia has to do with this list of energies. Scientists recently discovered a potentially revolutionary feature of ammonia by using it as an energy source.
Citi GPS | Much of the focus on the Energy Transition has been on how quickly renewables could take over, but reducing emissions from hard-to-abate sectors and places complicates the outlook. In this context, is natural gas a transition fuel, a soon-to-be stranded asset, or is it an energy source that could be part of the Energy Transition? Our report identifies five key demand areas where the proposition for natural gas is strong.
The five main integrated utilities operating in the Spanish electricity sector (EDP, Endesa, Iberdrola, Naturgy and Viesgo) invested over 11 billion euros in their activities in this market between 2016 and 2018, according to a report prepared by Deloitte. Of this total investment figure, €1.15 Bn corresponded to R&D&I in those three years, of which almost a third was allocated to electricity in Spain over the period.
Repsol expects to adjust the accounting value of some assets, with a post-tax accounting charge of approximately 4.8 billion euros in order to achieve net zero emissions by 2050. This adjustment will reduce specific reported income for 2019 but does not alter the company’s cash flow for the year nor the announced proposal to increase shareholder remuneration.
Roula Inglesi-Lotz and George Alex Thopil (The Conversation) | The transition from fossil fuels to cleaner energies is a global pursuit. But it’s faster and more intensive in some countries than others.
Renta 4 | Repsol Downstream investors’ day showed not only the firm’s resilience but also its capacity for future growth. We recall that within its growth target for operational cash flow from 4.6 Bn€ in 2017 to 6.5 Bn€ in 2020 at 50%/b, Downstream cash flow would grow 800 M€: 300 M€ from international margins, 200 M€ from improvements in profitability from greater efficiency and 300 M€ from expansion and new low carbon business preparing for the energy transition.
Kate Gordon via Caixin| It’s official: we’re in a time of energy transition. On April 22, Earth Day, the UN’s most recent climate deal – known as the Paris Agreement – will be formally signed in New York, ushering in a new era of country-led action to reduce carbon emissions.