CoolCo says LNG newbuild duo still available for charter

Energy News Beat

LNG carrier operator CoolCo is still in talks with charterers to find work for two newbuild LNG vessels it purchased from its largest shareholder Eastern Pacific Shipping.

“CoolCo continues to be in discussions with multiple potential charterers seeking employment for the newbuilds,” the firm said in its third-quarter report on Tuesday.

CoolCo exercised its option with affiliates of EPS Ventures in June to acquire newbuild contracts for two 2-stroke LNG carriers scheduled to deliver in second half of 2024.

South Korea’s Hyundai Samho is building these 174,000-cbm ME-GA vessels and they feature GTT’s Mark III Flex membrane cargo tank system, reliquification, air-lubrication, and shaft generators.

CoolCo will pay $234 million for each of the LNG carriers.

In October, CoolCO entered into sale and leaseback financing arrangements with China’s Huaxia Financial Leasing, the leasing arm of Hua Xia Bank, for the Kool Tiger and Kool Panther vessels.

Besides these two newbuilds, CoolCo has seven TFDE LNG carriers it acquired from Golar LNG and the four LNG carriers it purchased from EPS.

The company also manages eight LNG carriers and ten FSRUs in addition to owned fleet, according to its website.

CoolCo achieved average time charter equivalent earnings (TCE) of $82,400 per day for the third quarter, compared to $81,100 per day in the prior quarter.

The company’s fleet “continued to perform well” with a Q3 fleet utilization of 97.3 percent with the remaining covered by a ballast bonus, compared to 100 percent for the first half of the 2023.

CoolCo said there are no drydocks planned for 2023, with the next drydock expected during the second quarter of 2024.

“Subsequent to the quarter, a ship management services customer has decided to transfer up to nine vessels for which CoolCo currently provides technical management to managers that solely provide ship management services over the course of 2024,” it said.

Moreover, the LNG shipping firm generated total operating revenues of $92.9 million in the third quarter, compared to $90.3 million for the second quarter of 2023.

The company reported a net income of $39.2 million in the third quarter, compared to $44.6 million in the prior quarter, and adjusted Ebitda of $62.8 million, compared to $59.9 million in the prior quarter.

CoolCo said the decrease in net income was primarily due to lower unrealized mark-to-market gains on its interest rate swaps.

The company declared a dividend for the third quarter of $0.41 per share, to be paid to shareholders of record on December 7.

CEO Richard Tyrrell said that during the third quarter the company “benefited from strong operational performance, a seasonal uplift on our variable rate contract and the fleet’s fixed-rate, medium- and long-term charter coverage.”

“Additionally, we took measured exposure to the charter market in the form of one vessel that we chose to deploy directly in the spot market while waiting for the right term opportunity,” he said.

According to Tyrrrell, the net result was a “sequentially higher TCE level” at $82,400 per day.

“While not currently reaching the levels seen in the months following the Russian invasion of Ukraine, rates in the early fourth quarter have settled in at levels above historic norms for both the industry and for the CoolCo fleet. This provides us upside on legacy contracts as they renew and scope to maintain TCE performance,” he said.

“During the second half of 2023, newbuild deliveries have been limited and overall fleet supply has remained well-balanced against demand,” Tyrrell said.

The last two newbuilds in the market from independent owners that deliver ahead of CoolCo’s 2024 deliveries have now secured long-term employment, positioning the company’s newbuilds “as both the next in line and some of the only uncommitted newbuilds currently available before 2026,” he said.

“Newbuild pricing has remained elevated relative to historical levels at about $260 million per vessel, which along with the current interest rate environment is “providing significant support to the long-term charter rates available for newbuilds while also discouraging incremental newbuild orders,” he said.

“Moving forward, a continued strength in gas prices and tightening regulations are expected to put increasing pressure on the large number of remaining steam turbine vessels in themarket, likely resulting in heavy scrapping in the coming years,” Tyrrell said.

As the weather begins to turn colder in the Northern Hemisphere, seasonal support for LNG carrier demand “typically ratchets up,” Tyrrell said.

“We have thus far seen only limited term chartering activity ahead of the 2023/24 winter market, but with the continued absence of Europe’s traditional supply backstop from Russian pipeline gas and few vessels currently employed as floating storage, the potential for weather events to produce volatility, and thus demand for LNG carriers, is heightened,” he said.

“Ultimately, energy security remains a top priority for many LNG importing nations, and we expect European demand to remain strong and Asian demand to continue its recovery,” Tyrrell said.

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Origin: Australia Pacific LNG deliveries impacted as tanker loses power at jetty

Energy News Beat

Deliveries from the ConocoPhillips-operated Australia Pacific LNG plant on Curtis Island have been delayed as a loaded LNG tanker docked at the terminal’s jetty had lost power and was unable to leave, according to shareholder Origin.

Origin, which is subject to a takeover offer from a consortium consisting of Canada’s Brookfield Asset Management and a unit of US-based energy investor EIG, said in a statement on Tuesday that downstream operator of APLNG, ConocoPhillips, “is working with all parties concerned, including the relevant maritime regulator and port authority, to resolve the situation.”

The firm, as upstream operator, has started turning down production to reduce the flow of gas to the LNG facility.

In addition, Origin is taking steps to bank its non-operated portfolio production and execute additional domestic gas sales, it said.

The company did not reveal the name of the vessel but its AIS data provided by VesselValue shows that the tanker in question is the 2017-built 174,100-cbm, Cesi Qingdao.

Cesi Qingdao is owned by a joint venture of MOL, Cosco Shipping, and Sinopec. It transports APLNG volumes for China’s Sinopec.

Origin currently owns a 22.5 percent in the APLNG project, while Sinopec owns a 25 percent share in the project.

US energy giant ConocoPhillips has a 47.5 percent share in the APLNG project and operates the 9 mtpa LNG export facility on Curtis Island near Gladstone.

However, ConocoPhillips revealed plans in March to become upstream operator of APLNG following the closing of EIG’s transaction with Origin, and it has also agreed to purchase up to an additional 2.49 percent shareholding interest in APLNG for $0.5 billion.

Origin said only one LNG vessel is able to dock at the LNG facility at a time.

As a result, no other cargoes can be loaded until the situation is resolved, it said.

According to the firm, two LNG cargoes have already been deferred out of the FY2024 delivery schedule.

“It is expected that more LNG cargos will be deferred, with Australia Pacific LNG ordinarily loading a LNG vessel for export approximately every three days,” it said.

The total number of cargoes to be deferred will depend on the timeframe for resolution, Origin said.

Origin added there is no impact to domestic gas customers and the firm “will provide further updates as appropriate.”

ConocoPhillips Australia also confirmed later on Tuesday that an LNG vessel docked at the APLNG LNG facility lost power and was unable to leave the terminal as scheduled.

The company said that there have been no injuries to personnel on the vessel or at the LNG Facility from the event.

“We have been working with the ship captain and management, local and federal regulators, and the customer to respond to this event,” it said.

The company said it has assessed and planned for scenarios to best manage the supply through the APLNG facility while the situation is being resolved—this includes deferring cargoes as required.

“We remain focused on ensuring safe operations and continue to support the ship management with their repair plans,” ConocoPhillips Australia said.

(Updated with a statement by ConocoPhillips Australia.)

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Germans Have Become Welfare Piggy-Bank For Immigrants, New Govt Data Reveals

Energy News Beat

Authored by John Cody via Remix News,

Germany’s welfare system is being dragged down by the country’s growing immigrant population, with data from the country’s Federal Employment Agency showing that over six out of 10 welfare recipients deemed able to work are migrants.

The country’s welfare system, once referred to as Hartz IV, but now relabeled as citizen’s money (“Bürgergeld”), is now flowing to the country’s migrants, even though they make up a small share of Germany’s overall population. In fact, in some German states, they take in over 70 percent of all welfare money at a time when services and benefits are being cut for Germans across the country.

Overall, 62.6 percent of all welfare recipients are migrants, and within the 15 to 25 age group, this number goes up to 71.3 percent, according to German news outlet NIUS.

In the state of Hessen, which is home to Frankfurt, 76 percent of welfare recipients are migrants. In Baden-Württemberg 73.7 percent are migrants, in Hamburg the share is 72.3 percent, Bavaria features 64.4 percent, and in Berlin this figure is 67.8 percent. In the vast majority of states, the share is over 50 percent. Only the eastern German states, which have historically been far poorer and feature far fewer migrants, is the share below 50 percent. Mecklenburg-Vorpommern has the lowest share of migrants at 29.2 percent, but it also has one of the lowest numbers of migrants in all of Germany.

The Alternative for Germany, which has called for mass deportations to help save Germany’s budget, is pointing to the data to show the failure of the current left-liberal government’s approach to migration.

“The migration policy of the last few decades has failed catastrophically,” said AfD MP René Springer, who also serves as policy spokesperson.

“Rigorous measures are now needed to stop further immigration into our social systems.”

He said this means Germany needs “complete border protection and rejections at our national borders, consistent deportations, and from now on only benefits in kind instead of cash for asylum seekers and refugees.”

Perhaps most troubling, most of these welfare recipients with a migration background were actually born in the country. That means they may be German citizens speaking German, but they are still unable or unwilling to work.

The data will further poke holes in arguments that migrants are needed to prop up Germany’s pension system and fill the country’s workplaces. Instead, migrants are choosing simply not to work and collect welfare in huge numbers.

In addition, almost 60 percent have remained unemployed for over a year, which bodes poorly for this segment of the population integrating into the workforce in the future.

Previous data shows that Germany is expected to spend an enormous €36 billion on migrants in 2023 alone at a time when inflation and unemployment are growing.

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2024 Will Be The Busiest Political Year On Record – and potentially violent

Energy News Beat

Yesterday, Deutsche Bank’s Jim Reid published his 2024 World Outlook titled “The race against time” (which we will discuss shortly), and which refers to the fact that funding has dried up or tightened considerably over the last couple of years for various parts of the economy as rates have risen. So can central banks loosen, and can yields fall quickly enough to avoid a funding accident that could lead to contagion? Those are some of the questions Reid and his team try to answer.

One interesting mention in the report is a point that BofA’s Michael Hartnett has repeatedly made in his Flow Show notes, namely that 2024 will see elections in countries covering around half the world’s population.

In today’s Chart of the Day by the DB strategist, he looks at this back over 220 years and shows that this is set to be the year with the biggest percentage of elections across the globe. Also interestingly, it will be the polar opposite of 2023 which was one of the lightest years in the last four decades. In fact, this time last year DB was shighlighting here how 2023 was set to be the first year of the 21st century with no major G7 election.

So 2024 will be a big change from 2023. Clearly many elections will be relatively routine affairs, but as we saw from the Dutch election last week, there can be surprises.

The mains ones to watch are:

The US Presidential Election in November. A Trump victory, assuming he is the Republican nominee, plus a Republican sweep in Congress, could bring substantive policy changes.The Taiwanese election in January 2024 could help shape US-China relations over the next few years.European Parliamentary elections in June. Given the relatively high polling numbers for the far right across parts of Europe and the recent Dutch result, this election could test the capacity of the traditional mainstream parties to maintain a majority and the Commission’s ability to push further EU integration, such as with the “open strategic autonomy” agenda.Indian elections in April/May. Political stability is behind our view that their economy will double in size out to 2030

So, to paraphrase Reid, stand by for the busiest political year ever.

 

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‘Massive’ federal solar investment could mean big utility savings in Kentucky coal country

Energy News Beat

An unlikely collaboration between a Kentucky coalfield county and Kentucky’s largest city began when a former high school English teacher, Megan Downey, walked into the Lawrence County courthouse in Louisa in August.  

Inspired by a personal desire to find ways to tackle the impacts of climate change, Downey had launched a nonprofit called The Solar Collaborative last year in Virginia dedicated to helping Appalachian communities transition to renewable energy. 

She had been pitching an idea to local governments across Eastern Kentucky: Seek some of the billions in federal funding up for grabs in the Solar for All competition. Through the competition, the U.S. Environmental Protection Agency plans to invest $7 billion through 60 grants to states, local governments, nonprofits and tribal governments to “increase access to affordable, resilient, and clean solar energy for millions of low-income households.” The money comes from the Inflation Reduction Act’s Greenhouse Gas Reduction Fund. 

When Downey talked with Deputy Judge-Executive Vince Doty about the opportunity, he agreed “within minutes” to sign up.

“He’s the biggest advocate, I think, in the whole region for this type of project,” Downey said. “A lot of low-income communities don’t have access to that economic savings that’s associated with solar, and so it’s just one more way in which a wealth gap is continuing to increase.”

Doty brought other Eastern Kentucky counties on board for an application to the competition; judge-executives in Lawrence, Johnson, Martin, Floyd, Pike, Boyd, Greenup counties all wrote letters of support. After learning they had both submitted letters of intent to apply for the federal funding, the mountain counties teamed up with Louisville’s government to submit a unified application that could provide affordable access to solar energy for thousands of low-income homes in Kentucky from its largest cities to its rural Appalachian counties. 

It’s one of two competing applications from Kentucky. The other was submitted by the Kentucky Energy and Environment Cabinet; solar advocates say it could be a significant boost  for the use of residential solar across the state. 

Advocates argue more distributed solar, for example via solar panels on rooftops, could mean utility bill savings for Kentuckians and a curbing of greenhouse gas emissions connected to Kentucky’s fossil fuel-reliant electricity grid. 

For Doty, seeking funding for solar was foremost about easing the financial burden of his constituents in a region that faces continued economic challenges from the decline of the coal industry. Lawrence County is one of 20 Eastern Kentucky counties served by electric utility Kentucky Power, which has the highest monthly residential utility bills in Kentucky, according to a state analysis. 

“We always try to put our citizens first,” Doty said. “If there’s a chance that we can save somebody $300 a month off their electric bill, that’s worth trying for.” 

Both the Louisville-Eastern Kentucky and state government proposals are wide in scope, highlighting specific ideas for how to use tens of millions of dollars in federal funding. Both applications could mean integrating solar energy into thousands of homes, whether through direct ownership of rooftop solar installations or better access to existing or planned community solar projects. 

The Louisville-Eastern Kentucky application is asking for $150 million to be spent over five years, proposing:

A zero to low-cost forgivable loan program geared toward having low-income households own small solar installations or receive energy efficiency upgrades. For example, homeowners applying to the loan program who are below 80% of the area median income could have an entire loan forgiven for a six-kilowatt solar installation; half of the loan could be forgiven for property owners renting to Kentuckians below 80% of the area median income. 
Turn community centers in areas prone to natural disasters into “resilience hubs” equipped with solar power and electric battery storage for times of power outages. 
Build a workforce to deploy residential solar by creating training programs, building on already existing programs in Kentucky’s community and technical college system. 

Downey said Doty had advocated in a number of meetings as the Louisville-Eastern Kentucky application was being developed that it was a “non-negotiable” that Kentuckians should own the solar installations themselves 

The application anticipates, if awarded funding, at least a 20% energy bill reduction for approximately 7,300 households in Kentucky taking part in the proposal. Households that ultimately receive a six-kilowatt solar installation for free could see energy bill reductions up to 50%, according to the application. 

“If you put solar on your home, you immediately have benefits economically from the savings that you garner. It also increases the value of your home,” Downey said. “So this has the potential for a really significant impact if you look at it over 25 years as far as wealth generation goes.” 

The Louisville-Eastern Kentucky application estimates the results of the funding would add another approximate 44 megawatts of distributed solar power onto Kentucky’s grid. That would increase distributed solar in the state by about 70%, with 63.5 megawatts of distributed solar already in Kentucky. 

The application also estimates about 1,300 “green jobs” will be created through the proposed solar investment. Steve Ricketts, the board chair of the advocacy group Kentucky Solar Energy Society, said while construction work associated with larger, utility-scale solar projects is temporary, ending once the project is completed, those workers also can work on installing solar in their own communities. 

“They can be working on homes in their own town, they can be working on businesses and around town. So the two are incredibly complementary, and, frankly, have to go together to make it all work,” Ricketts said. 

Sumedha Rao, the executive director of Louisville Metro Government’s Office of Sustainability, said the estimates of solar power added, households helped and renewable energy jobs created through the funding proposal are somewhat conservative and that the impact of the grant could be even more. 

Given that Kentucky has historically relied on fossil fuels, she said, a transition to renewables can be a “scary proposition” for some Kentuckians. But she believes the Solar for All grant competition has a lot of upside with helping the state transition economically. 

 “We really feel like this is something that can have a massive impact for years to come,” Rao said.

The Solar for All application submitted by state officials leads with its own idea of how residential solar can be deployed across the state, particularly in areas hit by devastating floods and tornadoes in recent years. 

Requesting $100 million from the Solar for All competition, one of the state’s proposals is to put residential solar and an electricity battery storage system on 850 “disaster recovery” homes that could result in 70% utility bill savings for each home — or up to $1,000 in annual bill savings per home — over the course of 20 years. 

For Kenya Stump, the executive director of the state’s Office of Energy Policy, eliminating most of the energy bills is just one way to help people recovering from natural disasters who may have lost every material thing they own. 

“If they can live in a home from here on out that is more resilient, that also has the burden of that kind of cost is no longer there — shouldn’t we kind of strive for that?” Stump said. 

The application also proposes to help increase solar access for low-income Kentuckians, support housing nonprofits in creating energy-efficient housing, develop residential solar in cities and boost the state’s solar deployment workforce in several ways: Create subsidies and carve-outs to help Kentuckians participating in the Low-Income Home Energy Assistance Program, or LIHEAP, take part in existing and planned “community solar” projects to cut residential utility bills by about 20%.
Add solar power and electricity battery storage onto about 1,500 homes that already have energy efficiency upgrades, such as households that have participated in Weatherization Assistance Program
Develop “Solarize” campaigns to promote residential solar in Kentucky cities including Paducah, Owensboro, Henderson, Bowling Green, Lexington and Ashland. 
Create 1,500 “work-ready” scholarships and provide funding to community and technical colleges funding to create solar deployment training programs. 

Stump said in many instances low-income Kentuckians live in homes that are old and energy inefficient, leading to higher energy usage and subsequently higher utility bills. She said by enrolling LIHEAP recipients in community solar programs — such as ones offered by East Kentucky Power Cooperative and Louisville Gas and Electric and Kentucky Utilities (LG&E and KU) — they can get a direct credit on their bill and get more value from the utilized renewable energy.

“The energy regardless of the source will just still leak out” of poorly insulated, inefficient homes, Stump said. “We also hope that this will incentivize the growth of more municipal and utility community solar offerings that would be eligible to have LIHEAP carve-outs as well.” 

Some stakeholders involved in the Louisville-Eastern Kentucky application, while supportive of community solar projects in general, were skeptical of using Solar for All funds on such projects out of concerns that some community solar models, specifically LG&E and KU’s “Solar Share” program, subsidize an asset of an investor-owned utility with taxpayer funds. 

Stump said while stakeholders may wish some existing community solar projects were designed differently, it’s what is currently offered by Kentucky utilities and “can provide some benefit” to low-income Kentuckians that haven’t been able to take advantage. 

The two Kentucky applications submitted to Solar for All do align on ways to boost the workforce needed to install residential solar on homes, though Stump added that developing a renewable energy workforce needs to be paced with the deployment of solar. 

“That’s our greatest challenge is to make sure we get the timing right so that it aligns with the deployment of projects. We don’t want to give someone hope, and then there not be any work,” Stump said. 

For Stump, the Solar for All competition is just one federal program and incentive among many that will ultimately “shift and transform our energy landscape.” 

Lane Boldman, the executive director of the environmental advocacy group Kentucky Conservation Coalition, believes both applications are “really solid” but points out the federal government is only giving out 60 grants. Competition for the grants is stiff: More than 30 states have submitted notices that they’re applying along with a number of local governments and nonprofits across the country. 

Lawrence County and Louisville decided to collaborate, in part, to increase the chances that their Solar for All application would get awarded. The stakeholders with Lawrence County and Louisville also tried unsuccessfully to unify their application with the state’s proposal. 

Boldman said a big question became if a single grant application could ask for enough funding to cover all of the “great ideas” being proposed for the competition. 

“The decision really was that it was better to keep them as two separate applications,” Boldman said. “I have to say that I think both grants are very strong and deserving, and so we just have to wait and see what the federal government decides.” 

 

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Black-led Chicago nonprofit sees cycling as a tool for building healthy communities

Energy News Beat

Biking within Black and Brown communities is complicated. 

While non-motorized transportation is an important tactic for reducing emissions, many people still associate biking with something that kids do — or think of it as the last resort for people who can’t afford cars. 

In BIPOC communities, that is compounded by external factors such as perceived or realistic safety issues, police harassment, and lack of access and infrastructure due to decades of disinvestment.  

Olatunji Oboi Reed, president and CEO of the Equiticity Racial Equity Movement in Chicago, aims to change that.

“There are some systemic barriers that keep Black and Brown people driving, that keep Black and Brown people driving by themselves, that push Black and Brown people away from transit or cycling or walking. So, we’ve got to think about this holistically and at the systemic level … some of the systemic barriers that keep us from getting rid of our cars,” Reed said. 

Based in North Lawndale on Chicago’s West Side, Equiticity is a multifaceted, multi-racial organization focused on eliminating racial inequality. Reed, along with his staff and an active board of directors, guides the organization in its pursuit of racial justice — largely pedal-powered by bicycle. 

For Reed and for Equiticity, getting more Black and Brown people on bikes is about more than recreation or even transportation. He sees it as a vehicle for enhanced community cohesion, economic development, and improved health outcomes for Black and Brown residents, whose life expectancy is a full decade lower than that of White residents of the city, in part due to poor air quality generated by fossil fuel combustion.

Reed, along with childhood friend Jamal Julien, launched Slow Roll Chicago — a local outpost of a global bicycle movement — in 2014 as a means of encouraging more Black, Brown and Indigenous people to embrace bicycling for both recreation and transportation. While Reed has stepped away from leadership, Slow Roll Chicago continues to work to strengthen community connections and development.

In 2017, Reed expanded his vision of promoting racial equity beyond Slow Roll Chicago with a well-attended soft open of Equiticity in Chicago’s tony River North neighborhood. A number of delegates from the National Association of City Transportation Officials conference, along with local advocates, supporters and members of the media, were in the audience. The new organization was initially tasked with a plan to establish bike libraries on the city’s predominantly Black and Brown South and West Sides.

Since then, the organization has expanded its programming reach while remaining firmly rooted within a framework of advocating for BIPOC communities. Today, Equiticity encompasses advocacy, social enterprises, and programming, along with “community mobility rituals” where Black, Brown and Indigenous people take to the road on two wheels. 

Three of its major programs — the Mobility Opportunities Fund, GoHub Community Mobility Center and BikeForce Workforce Development Program — are specifically designed to make biking more accessible and affordable for Black and Brown riders by addressing inequities, disinvestment and disparities, along with promoting economic development.

In November 2022, Equiticity launched the Mobility Opportunities Fund, supported by a grant of $448,950 from ComEd. The fund initially provided $350 for the purchase of a conventional bicycle, $750 for the purchase of an electric bicycle, $1,500 for the purchase of an electric cargo bicycle and $3,500 for the purchase of an electric vehicle. (Stipends were later increased to $8,750 for EVs.)

Only four EVs were purchased using resources from the fund. However, community members bought 111 bikes, 85 electric bikes and 57 electric cargo bikes with their stipends, according to an August 2023 report on the program.

“When I came on board, I was very excited, because I understand being someone who resides in North Lawndale,” said Remel Terry, director of programs at Equiticity. “I understand the benefit of having alternative modes of transportation especially if you can’t afford a bike or even the cost of, as we’ve seen, gas and things of that nature.

“And then the overall climate-friendly aspect is also a big deal, in my opinion, and helping us to understand how to be more environmentally friendly without having to harp on things in the way sometimes it gets communicated.” 

A community bike ride in Chicago’s North Lawndale neighborhood on August 15, 2020. Equiticity sees events like this as “software” that deepens social bonds while encouraging active transportation. Credit: Equiticity

Equiticity is developing the GoHub Community Mobility Center to help address EV charging deserts along with other mobility and transportation needs for residents of North Lawndale. 

“The GoHub would have charging stations accessible to the community who may have electric vehicles,” Terry said. “So, it’s really like a one stop shop bringing all of the various programs into a physical space within the community of North Lawndale.”

But the GoHub is not limited to facilitating EV adaptation. Reed envisions multiple functions to address transportation-related inequities that Black and Brown low- and moderate-income residents experience, some of which may not be readily apparent.

That includes “hardware” — physical infrastructure — and “software,” which Reed describes as “the work we do to socialize people around the act of mobility.”

“For us, that’s our community mobility rituals. We do community bicycle rides, neighborhood walking tours, public transit excursions, group scooter rides, and open streets festivals,” Reed said.

“We also, as a part of the GoHub, want to have a hyper-local advocacy coalition. So, these are people at the neighborhood level who identify the needs to grow our mobility. And then we organize ourselves to move the stakeholders and policy makers in the city to bring the resources to bear that we need to grow our mobility in our neighborhoods,” Reed said.

North Lawndale suffers from a high crime rate, which is highly publicized in local and national media. In acknowledging the prevalence of violence in the neighborhood, Reed also envisions the “software” of the GoHub as a means to reduce the presence of violence that can discourage residents from biking.

“Violence in our neighborhood is not something that we are able to pontificate about often. It is pretty close to us. Trauma is driving our concerns around mobility. So, we want to address trauma. 

“We want mental health services to be a significant part of our work in the GoHub… We want space in the GoHub where that space is dedicated to other forms of healing to help people move through their trauma and begin to consider other modes of travel that, heretofore, they weren’t focused on,” Reed said.

Equiticity launched BikeForce in 2022 as a workforce development program for teens between the ages of 15 and 19 living in North Lawndale and adjacent communities. The apprenticeship program focuses on the emerging electric transportation sector, through the mechanics of e-bicycle construction, along with electric vehicles, e-scooters, battery systems, and electric motors. The Cook County Justice Advisory Council awarded Equiticity a $600,000 grant earlier this year, which allowed the program to expand to serve 60 trainees over 18 months. 

“BikeForce is providing these participants with comprehensive and targeted mentorship, career services and workforce training in an emerging, environmentally sustainable sector — all while increasing access to climate-friendly mobility devices in North Lawndale,” Terry said in an email.

The apprenticeship program also provides networking and opportunities for living-wage jobs to as many as 30 young people each year. Participants who complete the program also receive a cash stipend of $1,100 and a non-electric bicycle, Terry said.

“They’ll be able to leave this program and be hired as a bike mechanic somewhere with the experience of also understanding the battery aspect of the electric bike, which is a very big deal,” Terry told Streetsblog in September.

Equiticity launched the Free 2 Move Coalition during the summer of 2022 to advocate for improvements in biking infrastructure and policy changes, especially around the issue of police harassment of Black and Brown bike riders, including aggressive enforcement of street crossing regulations and prohibitions against riding on the sidewalk. These types of stops increased exponentially as an alternative to stop-and-frisk, saido Jose Manuel Almanza, director of movement and advocacy building at Equiticity.

“Right now, the Chicago Police Department can stop vehicles for a number of reasons, including a busted taillight, no registration or expired registration, [or] no city sticker — stuff that we think that should not be in the hands of the Chicago Police Department” Almanza said.

Equiticity’s research found that between 2014 and 2019, police disproportionately issued citations for bike riding on sidewalks on the West and South Sides, which are predominantly Black and Brown neighborhoods.

“At the same time, those areas have little to no biking infrastructure. So, it makes sense that people just feel safer riding on the sidewalk,” Almanza said. “So, we want to eliminate the CPD’s ability to ticket folks for these offenses, and at the same time invest in these neighborhoods to give them the space and the safety they need to ride their bike safely on the road.”

Like many Black and Brown communities, North Lawndale has suffered the effects of decades of disinvestment. However, dollars intended to mitigate disinvestment frequently don’t make their way to areas where they are most needed. 

At the same time, initiatives to mitigate disparities are sometimes met with pushback — driven by mistrust and anxiety about displacement, and exacerbated by the failure of municipal and other entities to engage community stakeholders, Almanza said. 

“We really want to expand biking infrastructure. However, a lot of people on the West Side and South Side see biking infrastructure as a sign of gentrification. A lot of people think, well, who are these bike lanes really for? It just seems that whenever the city does any kind of improvements in, for example, North Lawndale or Little Village, we get priced out. And I think just seeing that over and over and over again, it just creates suspicion in people that, well, in the past, everything they’ve done was not for me. So why is this for me now?

“Different communities in Chicago have different needs and people who live here know what’s needed, know what’s working, know what isn’t. However, we just keep seeing a lack of engagement from city agencies when it comes to creating a plan around infrastructure. A lot of our communities have been here for a very long time, so there’s a lot of history in it, and it seems like a lot of that history isn’t taken into consideration.” Almanza said.

For Reed, advocacy, education and improving biking infrastructure are all integral to Equiticity’s mission of getting Black and Brown people on bikes — and having them feel safe riding.

“How are we going to convince somebody not to drive and they should walk or bike, and there’s no sidewalk? This is not a rural community. This is the city of Chicago. People consider this the welcome center to the country,” Reed said.

“Corporations are headquartered here. And we’ve got a neighborhood in our city with no sidewalk. And it’s been like that for decades. “The intersection [at] 79th and Stony [Island] is one of the most dangerous intersections in the state of Illinois. It’s been like that for generations. And we’re supposed to convince somebody in that neighborhood to ride a bike. I wouldn’t dare tell somebody to ride a bike on Stony Island. I wouldn’t ride a bike on Stony Island. So, we’ve got to improve the quality of our infrastructure. We’ve got to use infrastructure to reduce all types of violence, interpersonal, police, and vehicular. And this is taking place.”

 

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Oil prices rise over 2%; focus on OPEC+, storm-hit Kazakh output

Energy News Beat

Yahoo Finance

NEW YORK – Oil prices jumped over 2% on Tuesday on the possibility OPEC+ will extend or deepen supply cuts, a storm-related drop in Kazakh oil output and a weaker U.S. dollar. Brent crude futures were up $1.88, or 2.4%, at $81.86 a barrel by 11:03 a.m. EST (1603 GMT). U.S. West Texas Intermediate (WTI) crude gained $1.84, or 2.5%, to $76.70.

Source: Reuters

OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, is due to hold an online ministerial meeting on Thursday to discuss 2024 production targets.

The talks will be difficult and a rollover of the previous agreement is possible rather than deeper production cuts, four OPEC+ sources said.

The market tumbled last week when OPEC+ pushed back the original date for its meeting to iron out differences on production targets for African producers.

“Even with the disagreement, the possibility of keeping the deal as is for another month remains high,” said Phil Flynn, an analyst at Price Futures Group in Chicago.

One possible compromise could involve Angola and Nigeria accepting reduced production targets for a few months if targets for the other countries were likewise lowered, said Commerzbank’s Carsten Fritsch.

“According to delegates, Saudi Arabia is demanding lower production quotas from the other OPEC+ countries. While Kuwait has signaled that it would be willing to do so, some countries are apparently resisting any such move.”

The United Arab Emirates is likely to oppose this, given that its 2024 production target was increased at its urging when OPEC+ held its previous meeting in early June, he added.

Oil also found support from a weak dollar, an expected decline in U.S. crude inventories and the drop in Kazakh output.

Kazakhstan’s largest oilfields have cut their combined daily oil output by 56%.

Four analysts polled by Reuters estimated that the latest round of weekly U.S. supply reports will show crude inventories fell by about 2 million barrels.

The first of this week’s two reports is due at 2130 GMT from the American Petroleum Institute.

The U.S. dollar sank to a three-month low on Tuesday after U.S. Federal Reserve Governor Christopher Waller flagged the possibility of lowering the Fed policy rate in the months ahead if inflation declines further.

A weaker dollar typically bolsters oil demand, making dollar-denominated oil less expensive for buyers using other currencies.

In the Middle East. Israeli forces and Hamas fighters held their fire beyond the original deadline of a truce, extended at the last minute by at least two days to let more hostages go free.

(Reporting by Stephanie Kelly; additional reporting by Alex Lawler, Natalie Grover and Sudarshan VaradhanEditing by Kim Coghill, David Goodman and David Gregorio)

 

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OPEC+ looking at deeper oil cuts ahead of Thursday meeting

Energy News Beat

Today

LONDON :OPEC+ is looking at deepening oil production cuts despite its policy meeting being postponed to this Thursday amid a quota disagreement between some producers, an OPEC+ source said on Monday.

Source: Reuters

Several analysts have said they expect OPEC+ to extend or even deepen supply cuts into next year in order to support prices, which on Monday were trading just above US$80 a barrel, down from near US$98 in late September.

An OPEC+ source said he expected there to be an option for a “collective further reduction” on Thursday, without providing details. OPEC+ sources earlier this month said the group was set to consider additional cuts.

The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known as OPEC+, will begin its online meetings to decide oil output levels at 1300 GMT on Thursday, according to a draft agenda seen by Reuters on Monday.

The meeting was delayed from Nov. 26. OPEC+ sources said this was because of a disagreement over output levels for African producers, although sources have since said the group has moved closer to a compromise on this point.

OPEC member Kuwait is committed to any decisions issued by OPEC, especially those that concern market quotas and oil production, the country’s oil ministry said in a post on social media platform X.

On Thursday at 1300 GMT, ministers on an advisory panel called the Joint Ministerial Monitoring Committee hold talks. This will be followed at 1400 GMT by a meeting of the full policy-making group of OPEC+ ministers, the agenda showed.

Saudi Arabia, Russia and other members of OPEC+ have already pledged total oil output cuts of about 5 million barrels per day (bpd), or about 5per cent of daily global demand, in a series of steps that started in late 2022.

This includes Saudi Arabia’s additional voluntary production cut of 1 million bpd which is due to expire at the end of December, and a Russian export cut of 300,000 bpd also until the end of the year.

(Reporting by Ahmad Ghaddar and Alex Lawler, Editing by Louise Heavens, Dmitry Zhdannikov and Christina Fincher)

 

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EU tire giant to cut production in crisis-hit Germany

Energy News Beat

The country’s competitiveness as an industrial location has been undermined, Michelin said

French tire giant Michelin will slash over 1,500 jobs in Germany by 2025, as competition from lower-wage nations and soaring energy prices make production in Western Europe unprofitable.

Michelin will fully shut down plants in Karlsruhe and Trier and discontinue some products at its site in Homburg, the company announced in Frankfurt on Tuesday. The decision will affect 1,410 employees in total. The Karlsruhe factory, Michelin’s oldest in Germany, was founded in 1931.

A further 122 jobs will be lost at the customer contact service in Karlsruhe, which will be moved to Poland, the company said. The operation supports clients in Germany, Austria, and Switzerland, an area where Michelin employs some 8,000 people, according to its website.

“The commitment of our employees, the progress made within the company and the investments made in recent years in the affected activities can no longer compensate for the strong competitive pressure,” Maria Rottger, president of Michelin’s Northern Europe region, explained.

German trade union IG BCE said it will not “simply accept” the plans and will look for alternative solutions.

The firm noted that “recent health and geopolitical crises” had pushed up operating costs, putting “additional strain on Germany’s competitiveness as an industrial location.”

Germany has grappled with increasing economic problems since the EU chose to no longer buy cheap natural gas from Russia in response to the Ukraine crisis. The decoupling was reinforced in September 2022, when explosions sabotaged the undersea Nord Stream pipelines which delivered Russian fuel directly to Germany. Berlin has yet to identify the perpetrators of the attack, which Moscow claimed was likely masterminded by the US.

Some German politicians are urging the government to reconsider its antagonistic stance towards Russia, citing the economic damage their nation has suffered.

“The economic sanctions are hurting us more than Russia,” Klaus Ernst, an MP from The Left party, said on X (formerly Twitter) on Monday.

“The result is skyrocketing energy prices, a sharp decline in production in the energy-intensive industry and a shrinking economy in Germany,” he added, calling for energy supplies to be ramped up, including from Russia, in order to rein in prices.


READ MORE:
German economy to slow without green transition – vice chancellor

Earlier this year, US tire maker Goodyear revealed plans to shut down two factories in Germany, which will cut around 1,750 jobs. As part of its rationalization plan in Europe, the Middle East, and Africa, it will permanently close its facilities in Fulda and Furstenwalde.

 

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ESG loan bubble close to bursting

Energy News Beat

Oil Price

Sustainability-linked loans, or SLLs, have only been around for a few years. In that short time, they have ballooned into a market worth $1.5 trillion. But now, as scrutiny comes for sustainability claims with no substance, that market faces a reckoning. And so do the banks that lent those money.

Source: Oil Price

The first sustainability-linked loan was the work of Dutch ING Groep and was closed in 2017. Since then, sustainability-linked loans have become the second-largest ESG market in the world, after so-called green bonds.

The essence of SLLs is that the borrower can benefit from a slightly lower interest rate in exchange for undertaking commitments in the environmental department—a principle that’s pretty similar to how ESG investment funds operate. But just like ESG investment funds, regulators—and investors—have now started to question the validity of sustainability-related claims by bond issuers and bank borrowers.

In a recent article on the issue, Bloomberg noted that the situation has reached a point where banks that provide SLLs are looking for legal cover in anticipation of greenwashing lawsuits. This anticipation could prove legitimate because banks did not check their clients’ ESG commitments in detail before granting loans, nor did they check whether these clients were using the money for environmental, social, or governance improvements.

They were not meant to check, and they did not need to—or so they thought. The great attraction of sustainability-linked loans lies in the fact that the borrower, as Reuters notes in a recent article, can use the money for pretty much whatever they want—because the bank classifies the loan as part of its own ESG efforts and does not seem to be too bothered whether the ESG claims of the borrower have substance or not. Did anyone say greenwashing?

Bloomberg noted in its article that sustainability claims made by borrowers are not made publicly available, and the market for sustainability-linked loans is not regulated. In other words, a company could take out a sustainability-linked loan and pay an interest rate that’s between 2.5 and 10 basis points lower than a regular loan, swearing it will use the money to sustainable ends. Then, it can take the money home and do anything it wants with it, even if it has nothing to do with sustainability.

The bank, meanwhile, does not care what the borrower would use the money for because it has already filed the loan under its own sustainability targets, and considered it a step in the right direction of hitting these targets. It seems these SLLs have been as popular with lenders as they have been with borrowers.

So, in a matter of six short years, a market that went from zero to $1.5 trillion is about to suffer some tremors as banks’ lawyers warn the reputational risks have become too great to ignore. The situation smacks a bit of the subprime mortgage crisis from 2007. A market for obscure financial products getting out of regulatory hand is always a dangerous situation.

Perhaps nobody could have predicted the questions that would start popping up about the actual substance of ESG claims made by companies. Perhaps nobody anticipated the political backlash in conservative U.S. states. Yet both these things are happening and are shaking the very foundations of the whole ESG market.

Reuters recently did a survey among banks and found that only one of the 14 did not file the SSLs it provided under its own sustainability efforts. All the rest did just that, essentially assuming that the borrower would use the loan as promised. It really is no wonder that scrutiny is tightening up, and as a result, SLLs are on the decline.

Bloomberg reported earlier this month that sustainability-linked loan issuance in the United States has dropped by as much as 80% amid growing concerns about greenwashing and higher interest rates. Issuance is down in other regions, too, as regulators start to pay attention to these loans, just as they started paying attention to other green claims made by companies eager to benefit from the ESG investment trend.

With investment funds now rebranding and dropping words like “sustainable” from their names amid growing investor caution, it was only a matter of time before banks started paying attention, too. Per Bloomberg, this attention has taken the form of seeking help from legal professionals and devising cover in the contracts for SLLs.

The cover appears to be a loophole allowing banks to reclassify SSLs as ordinary loans should the borrower not use the money to advance its ESG goals as promised. In other words, banks are admitting they have no way of enforcing the terms of the loan contract on the borrower and are looking for a way out of potential greenwashing accusations by changing these terms.

By Irina Slav for Oilprice.com

 

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