Argentinian, German officials meet to discuss critical minerals

Energy News Beat

 

​[[{“value”:”

Argentina’s Mining Secretary, Flavia Royon, and the governors of the Lithium Table provinces, that is, Jujuy, Catamarca and San Juan, travelled to Germany to promote the country’s critical mineral resources at a conference and through one-on-one meetings with government officials.

The politicians met with representatives from Germany’s Ministry of Foreign Affairs, members of the Economic Affairs Commission of the German Parliament, the Secretary of Commerce, as well as with the director of mineral resources, the director of exports and representatives for the Americas of the German Ministry of Economy and Climate.

“The Argentine delegation, led by the Secretary of Mining and accompanied by the governors, held a fruitful exchange with the 15 deputies from the German Chamber of Deputies’ Economic Affairs Commission. The German representatives showed keen interest in the exploration and production of critical minerals, such as copper and lithium, in Argentine territory,” Royon’s office said in a media statement.

According to the brief, the discussions revolved around the role that Argentina can play in the global energy transition, particularly concerning the EU as the block moves toward supplier diversification.

The Argentinian governors detailed the mineral potential of each of their provinces, with a special focus on the mining projects that employ solar energy, thus fostering processes with low carbon emissions.

“This comprehensive approach reflects the provinces’ commitment to responsible industrial practices and respect for the environment. The domestic mining industry is considered a platform with great potential to be a beneficiary of German financial funds and tools. These funds are designed to meet the most demanding standards of environmental stewardship. Notably, these Argentine provinces considerably exceed these standards,” the release reads.

To strengthen this bilateral collaboration, especially in the energy and mining sectors, the German parliamentarians who met with the Argentinian delegation will visit the South American country in March 2024.

“}]] 

The post Argentinian, German officials meet to discuss critical minerals appeared first on Energy News Beat.

 

Argentinian, German officials meet to discuss critical minerals

Energy News Beat

 

​[[{“value”:”

Argentina’s Mining Secretary, Flavia Royon, and the governors of the Lithium Table provinces, that is, Jujuy, Catamarca and San Juan, travelled to Germany to promote the country’s critical mineral resources at a conference and through one-on-one meetings with government officials.

The politicians met with representatives from Germany’s Ministry of Foreign Affairs, members of the Economic Affairs Commission of the German Parliament, the Secretary of Commerce, as well as with the director of mineral resources, the director of exports and representatives for the Americas of the German Ministry of Economy and Climate.

“The Argentine delegation, led by the Secretary of Mining and accompanied by the governors, held a fruitful exchange with the 15 deputies from the German Chamber of Deputies’ Economic Affairs Commission. The German representatives showed keen interest in the exploration and production of critical minerals, such as copper and lithium, in Argentine territory,” Royon’s office said in a media statement.

According to the brief, the discussions revolved around the role that Argentina can play in the global energy transition, particularly concerning the EU as the block moves toward supplier diversification.

The Argentinian governors detailed the mineral potential of each of their provinces, with a special focus on the mining projects that employ solar energy, thus fostering processes with low carbon emissions.

“This comprehensive approach reflects the provinces’ commitment to responsible industrial practices and respect for the environment. The domestic mining industry is considered a platform with great potential to be a beneficiary of German financial funds and tools. These funds are designed to meet the most demanding standards of environmental stewardship. Notably, these Argentine provinces considerably exceed these standards,” the release reads.

To strengthen this bilateral collaboration, especially in the energy and mining sectors, the German parliamentarians who met with the Argentinian delegation will visit the South American country in March 2024.

“}]] 

The post Argentinian, German officials meet to discuss critical minerals appeared first on Energy News Beat.

 

Argentinian, German officials meet to discuss critical minerals

Energy News Beat

 

​[[{“value”:”

Argentina’s Mining Secretary, Flavia Royon, and the governors of the Lithium Table provinces, that is, Jujuy, Catamarca and San Juan, travelled to Germany to promote the country’s critical mineral resources at a conference and through one-on-one meetings with government officials.

The politicians met with representatives from Germany’s Ministry of Foreign Affairs, members of the Economic Affairs Commission of the German Parliament, the Secretary of Commerce, as well as with the director of mineral resources, the director of exports and representatives for the Americas of the German Ministry of Economy and Climate.

“The Argentine delegation, led by the Secretary of Mining and accompanied by the governors, held a fruitful exchange with the 15 deputies from the German Chamber of Deputies’ Economic Affairs Commission. The German representatives showed keen interest in the exploration and production of critical minerals, such as copper and lithium, in Argentine territory,” Royon’s office said in a media statement.

According to the brief, the discussions revolved around the role that Argentina can play in the global energy transition, particularly concerning the EU as the block moves toward supplier diversification.

The Argentinian governors detailed the mineral potential of each of their provinces, with a special focus on the mining projects that employ solar energy, thus fostering processes with low carbon emissions.

“This comprehensive approach reflects the provinces’ commitment to responsible industrial practices and respect for the environment. The domestic mining industry is considered a platform with great potential to be a beneficiary of German financial funds and tools. These funds are designed to meet the most demanding standards of environmental stewardship. Notably, these Argentine provinces considerably exceed these standards,” the release reads.

To strengthen this bilateral collaboration, especially in the energy and mining sectors, the German parliamentarians who met with the Argentinian delegation will visit the South American country in March 2024.

“}]] 

The post Argentinian, German officials meet to discuss critical minerals appeared first on Energy News Beat.

 

Argentinian, German officials meet to discuss critical minerals

Energy News Beat

 

​[[{“value”:”

Argentina’s Mining Secretary, Flavia Royon, and the governors of the Lithium Table provinces, that is, Jujuy, Catamarca and San Juan, travelled to Germany to promote the country’s critical mineral resources at a conference and through one-on-one meetings with government officials.

The politicians met with representatives from Germany’s Ministry of Foreign Affairs, members of the Economic Affairs Commission of the German Parliament, the Secretary of Commerce, as well as with the director of mineral resources, the director of exports and representatives for the Americas of the German Ministry of Economy and Climate.

“The Argentine delegation, led by the Secretary of Mining and accompanied by the governors, held a fruitful exchange with the 15 deputies from the German Chamber of Deputies’ Economic Affairs Commission. The German representatives showed keen interest in the exploration and production of critical minerals, such as copper and lithium, in Argentine territory,” Royon’s office said in a media statement.

According to the brief, the discussions revolved around the role that Argentina can play in the global energy transition, particularly concerning the EU as the block moves toward supplier diversification.

The Argentinian governors detailed the mineral potential of each of their provinces, with a special focus on the mining projects that employ solar energy, thus fostering processes with low carbon emissions.

“This comprehensive approach reflects the provinces’ commitment to responsible industrial practices and respect for the environment. The domestic mining industry is considered a platform with great potential to be a beneficiary of German financial funds and tools. These funds are designed to meet the most demanding standards of environmental stewardship. Notably, these Argentine provinces considerably exceed these standards,” the release reads.

To strengthen this bilateral collaboration, especially in the energy and mining sectors, the German parliamentarians who met with the Argentinian delegation will visit the South American country in March 2024.

“}]] 

The post Argentinian, German officials meet to discuss critical minerals appeared first on Energy News Beat.

 

Can Germany meet its ambitious wind energy targets?

Energy News Beat

German Chancellor Olaf Scholz seems optimistic that his governing coalition — comprising his center-left Social Democrats, the Greens and neoliberal Free Democrats — will push ahead with the country’s energy transition. He remains optimistic despite Germany’s budget problems, despite growing bureaucratic challenges and a mood of despondency prevalent among large parts of German society.

“If we manage to achieve what we have set out to do, and I am confident that we will, then we will break with 200 years of industrial tradition and prosperity built on coal, gas and oil,” said Scholz, speaking in Potsdam last Monday.

Currently, around 30% of German electricity is still generated by burning coal and gas. Wind turbines, meanwhile, generate almost half of the country’s power. The government aims to shift to fully climate-neutral electricity production primarily by establishing large wind farms far out in the North and Baltic Sea.

 

So far, some 1,500 turbines — up 300 meters (nearly 1,000 feet) tall — have already been installed out at sea, where they can rely on strong and continuous wind. Taken together, they supply around 8.5 gigawatts of electricity. The plan is to increase the power output to 30 gigawatts by 2030.

Overly ambitious targets?

To reach this goal, Germany will have to quadruple the amount of power generated by wind turbines in just six years. Wind industry representatives, however, have warned that this could be difficult.

According to the German Wind Energy Association, only 27 new wind turbines were connected to the power grid in 2023. And several trade associations warned in a joint statement that “In order to achieve the statutory expansion targets, the expansion [of wind energy] must increase drastically by 2030.”

In a  recent letter, Germany’s Federal Maritime and Hydrographic Agency warned that establishing certain North Sea grid connections could be delayed by up to two years due to converter construction bottlenecks.

Are floating wind farms more efficient?

Stefan Thimm, head of Germany’s Federal Association of Offshore Wind Energy, said “if this situation materializes or turns out even worse, it will call into question the agreed expansion targets and send a signal of uncertainty into the value chain.”

Seaports key to meeting infrastructure challenges

Producing electricity through offshore wind farms is one thing, but transporting said electricity to shore through huge power cables is quite another. And so, too, is installing the large converters that turn alternating into direct current so that the electricity can be sent from northern Germany to the country’s industrial heartland in the south and west.

Experts estimate that an area equivalent to the size of 270 soccer fields will soon have to be made available in German ports to grow the wind power sector.

“Seaports are key offshore wind energy hubs,” said Karina Würtz, managing director of the Offshore Wind Energy Foundation. She added that they are crucial for constructing and dismantling wind farms, act as service ports for operation and maintenance and as storage and production sites.

Germany lagging behind Netherlands, Denmark

Würtz pointed out that neighboring countries like the Netherlands and Denmark have been much faster and more effective at building out their wind infrastructure.

“While the Dutch and Danish ports of Eemshaven and Esbjerg have strongly focused on the offshore wind sector in recent years and taken large market shares from German ports, the latter have increasingly turned to other business areas,” she said.

Chancellor Scholz (at the microphone) and Robert Habeck (at right) inaugurated a new LNG terminal in Wilhelmshaven in December 2022Image: Axel Heimken/AFP/Getty Images

Competition is fierce in the industry, with specialist converter construction companies, for example, in high demand. This is because many countries including Germany now want to grow their offshore wind power sector. Greenpeace, meanwhile, has said the German government is setting the wrong priorities, for example by investing a lot of money in liquefied natural gas(LNG) terminals.

“Instead of building completely unnecessary LNG terminals at a dizzying speed, Olaf Scholz should concentrate on setting up offshore wind farms […] to make up for delays as soon as possible,” Martin Kaiser, an energy and climate expert at Greenpeace, told DW.

Kaiser said it was unacceptable that Germany’s lack of converter stations and the chancellor’s misplaced priorities meant Germany was failing to meet its renewable energy targets. The government built the LNG terminals after Russia’s invasion of Ukraine in early 2022 brought the flow of Russian gas into Germany to an end, forcing the country to import gas from several different countries instead.

Germany lacks funds for wind

Yet the government lacks the funds to grow its offshore wind sector, as it would need to take out fresh loans. This, however, is strictly prohibited by law.

Establishing a special fund to support the sector — akin to Germany’s special armed forces fund — would be a possibility. German Economy Minister Robert Habeck of the Greens, also in charge of the climate portfolio, suggested setting up such a fund in the Bundestag last week to grow the wind power sector and tackle other issues.

Habeck’s proposal, however, was immediately rejected by the opposition and also his coalition partner, the neoliberal Free Democrats.

This article was originally written in German

The post Can Germany meet its ambitious wind energy targets? appeared first on Energy News Beat.

 

GOLDSTEIN: Trudeau government doesn’t know how much its carbon tax reduces emissions

Energy News Beat

Given that Prime Minister Justin Trudeau’s carbon tax is costing the average Canadian household hundreds of dollars annually when factoring in its negative impact on the economy, how much is it lowering Canada’s greenhouse gas emissions?

In response to an order paper question by Conservative MP Dan Mazier last week (hat tip to commentator Spencer Fernando for reporting it), Environment Minister Steven Guilbeault said:

“The government does not measure the annual amount of emissions that are directly reduced by federal carbon pricing. Retroactively attributing specific GHG reductions to a specific action, such as carbon pricing, a discrete regulation, or a specific incentive, is difficult given the multiple interacting factors that influence emissions, including carbon pricing, tax incentives, funding programs, investor preferences and consumer demand. The National Inventory Report, which reports annually on historical GHG emissions, does not include this information.”

Given that, how can Canadians possibly know if they’re getting good value for the money they’re spending on the carbon tax?

Mazier posted on X that, “Trudeau’s radical Environment Minister admits the government DOES NOT measure how many emissions are ‘reduced’ by their costly carbon tax. Why? Because the carbon tax is not an environmental plan – it’s a tax plan.”

BREAKING NEWS

Trudeau’s radical Environment Minister admits the government DOES NOT measure how many emissions are ‘reduced’ by their costly carbon tax.

Why?

Because the carbon tax is not an environmental plan – it’s a tax plan.

Emissions have gone up since Trudeau. pic.twitter.com/y8qfDn5LJN

— Dan Mazier (@MBDan7) February 2, 2024

Parliamentary budget officer Yves Giroux reported last year that 60% of Canadian households paying the federal carbon tax (in all provinces except Quebec and B.C., which have federally-approved carbon pricing plans) are paying more in carbon tax than they receive in climate action incentive rebates, when factoring in its negative impact on the Canadian economy.

The PBO says this will increase to 80% in Nova Scotia in 2025, 80% in Ontario in 2026, 80% in Manitoba in 2029 and 80% in Alberta and P.E.I. in 2030.

Here are the PBO’s estimated net costs for people living in provinces under the federal carbon tax regime. The first figure is the estimated average household cost this year, with the carbon tax at $65 per tonne of emissions, the second in 2030 when it will be $170 per tonne:

Alberta $710, $2,773; Ontario: $478, $1,820; Saskatchewan $410, $1723; Manitoba $386, $1490; Nova Scotia $431, $1,513; P.E.I $465, $1,521; Newfoundland and Labrador $347, $1,316.

The PBO’s calculations did not include New Brunswick because it joined the federal carbon tax system after it did these estimates.

The Trudeau government says 80% of households paying the carbon tax end up better off financially because of the rebate system but, again, the PBO says that’s only true if you don’t factor in its negative impact on the economy.

Mazier’s question about emission reductions was prompted by testimony from Derek Hermanutz, director general of the economic analysis directorate of the federal environment ministry before the Commons environment committee on Nov. 9, 2023 that:

“I think we’re probably in a world where we could say with some rough analysis that up to one-third, potentially, of the emissions reductions that we’re projecting to 2030 would come from carbon pricing.”

In a Dec. 1, 2023 news release, “How pollution pricing reduces emissions,” the federal government simultaneously estimated reductions from the carbon tax as “roughly one-third” and “as much as one-third” of Canada’s emission reductions in 2030.

A chart in the release estimated the carbon tax will reduce Canada’s emissions (670 million tonnes in 2021, according to the latest available government data) by 19 million tonnes in 2022, 24 million tonnes in 2023, 32 million tonnes in 2024, 43 million tonnes in 2025, 49 million tonnes in 2026, 56 million tonnes in 2027, 62 million tonnes in 2028, 70 million tonnes in 2029 and 79 million tonnes in 2030.

Of course, the government isn’t sure because it hasn’t measured the annual amount of emissions directly reduced by the carbon tax since introducing it in 2019.

 

This also means most reductions the Trudeau government claims will be achieved in 2030 – at least 66% – have to come from measures other than the carbon tax.

 

As for the carbon tax’s effectiveness as part of what the Trudeau government says is its $200 billion plan to address climate change, Canada’s emissions in 2021 increased by 1.8% to 670 million tonnes compared to 2020.

 

The Trudeau government’s goal is to reduce Canada’s annual emissions by 40% to 45% compared to 2005 levels in 2030.

 

In 2021, they were 8.5% lower than 2005 levels.

 

We won’t know Canada’s 2022 emissions until April, because the government reports them two years after the fact.

 

The PBO says Canada’s emissions – 1.5% of the global total – are too small to materially impact climate change.

Source: The Toronto Sun

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Climate Scientists Want An Umbrella The Size Of Argentina To Block Out The Sun

Energy News Beat

A team of climate scientists want to launch enormous umbrellas into space to reduce the Earth’s exposure to the sun and fight climate change, The New York Times reported Friday.

The underlying idea is that large parasols could be positioned in space such that they marginally reduce the intensity of sunlight the Earth receives and thereby mitigate some global warming, the Times reported. In order to block out enough radiation, a single sunshade would need to be approximately the size of Argentina — nearly one million square miles — and would weigh about 2.5 million tons, so scientists are looking to prove the idea could work by first producing a 100-square foot prototype with the help of $10 to $20 million of funding.

Dr. Yoram Rozen, a physics professor and the Asher Space Research Institute’s director at Technion-Israel Institute of Technology, is leading the team of scientists pushing the idea, according to the Times. Because the Argentina-sized umbrella would be too large to feasibly launch into space, his team is hoping to build a set of smaller shades that would diffuse the intensity of the radiation reaching the planet.

“We can show the world, look, there is a working solution, take it, increase it to the necessary size,” Rozen told the Times.

Rozen and his team are still designing the prototype, but they anticipate that they could build it within about three years once they get the required funds, according to the Times. A full-sized product would cost trillions of dollars, and that expense would likely have to be picked up by many countries, Rozen told the Times.

“We at the Technion are not going to save the planet,” Rozen told the Times. “But we’re going to show that it can be done.”

Supporters of the ambitious sunshade idea posit that, if implemented successfully, the world would still need to stop using fossil fuels to power the global economy, according to the Times.

“I’m not saying this will be the solution, but I think everybody has to work toward every possible solution,” Istvan Szapudi, an astronomer at the Institute for Astronomy at the University of Hawaii who recently published a paper examining a similar idea, told the Times.

Source: The dailycaller

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Chile’s mining sector needs 34,000 new professionals by 2032 – report

Energy News Beat

 

​[[{“value”:”

The mining industry in Chile, the world’s top copper producer and second-largest lithium producer, will need more than 34,000 new workers by 2032, according to a study released this week.

The report by the CCM-Eleva Alliance, a joint initiative between the Mining Council and Fundacion Chile, analyzed workforce trends and challenges of 27 mining and supplier companies in the country, representing 96% of the sector.

“The fresh estimation of talents needed in the next decade reflects a growth of 36% compared to what was estimated in the previous study,” said Vladimir Glasinovic, director of the Eleva Program (CCM-Eleva Alliance). “It shows a mining industry that is growing robustly, generating jobs and local development.”

One of the main findings of the study was that demand for human capital will increase by more than a third over the next nine years, compared to the previous edition of the study, published two years ago. The main drivers of this demand for talent are the retirement of workers nearing the end of their careers and the development of new projects in key regions. 

The main projects fuelling demand for new talent, according to the report, are Teck’s Quebrada Blanca 2 (Q2), which produced first copper last year and is ramping up operations; Gold Fields’ Salares Norte, expected to start by April; Antofagasta’s Centinela Mining District, and Anglo American’s Los Bronces expansion, slated tentatively for early 2026.

The study also identified that 75% of the demand for professionals will be concentrated in five types of specialists, with mechanical maintainers topping the list. Mobile equipment operators and fixed equipment operators took the second and third places, respectively.

The study aims to provide relevant information for public policies and industry strategies to address the human capital needs of the mining sector, which is one of the main pillars of Chile’s economy. It also highlighted the progress and challenges in terms of gender equity, technological impact and educational offer available in the country.

Source: CCM-Eleva Alliance Report.

It concluded that female participation in the industry is at 15%, where one in every three hires within mining companies was a woman, and participation in decision-making positions reached 17%.

The figures show that Chile’s female participation percentage in the labor market is below those of developed countries or other economies in the region. However, in terms of womens’ participation in the mining industry, the country is better positioned, above Peru and at the same level than the United States.

Overall, the Chile’s mining industry currently registers the highest employment rate in 12 years, showing a 38% increase with respect to 2020 and 22% compared to 2011.

The full report, “Workforce Study of Large-scale Mining in Chile 2023-2032″ is available here.

“}]] 

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ENB #182 “Something Big is About to Happen” – Tucker Carlson. But what is he missing? The connection to the distruction of the grid.

Energy News Beat

Tucker Carlson just released “Something Big Is About to Happen” and discussed the border as a migration and invasion. Dr. Bret Weinstine is Tucker’s quest, and he covers his visit to the Darien Gap and discussions with Michael Yon. Michael was able to show him all of the camps and the paths that the migrants take from all over the world.

What Tucker and Bret missed was the connection to the US Grid. The Chinese camp can only be described as a military processing camp. The Secretary of Homeland Security visited the Center, and the number of Chinese military-aged men traveling through the camp went up to 10,900 from 900 in the previous 100 days.

Why is this important? I have been talking about grid security for years, and the ability for the Chinese-purchased main grid interconnects has been documented, and now confirmed by the US. Officials. The story “US Officials Deliver Warning that Chinese Hackers are Targeting Infrastructure – Warning About The Real Question – Is Mayorkas in on it?  was posted on January 31st. It covers more of the FBI warnings and descriptions of the topics covered by Tucker, Michael Yon, and Dr. Bret Weinstine. The grid can be brought down remotely, and with 10s of thousands of military-aged men in the country – you should be aware.

Please follow Michael Yon on his Substack, Twitter, and LinkedIn. He is a national treasure that has been battle-tested and should be listened to. I appreciate his efforts in sharing his travels and his leadership. George McMillian and I have talked about Michael and George’s travels through the Panama and Darien Gap areas.

https://t.co/41KMcKIW6M Michael – here is our podcast that talks about your trip to the Darien Gap.

— STUART TURLEY – Energy Podcast Host (@STUARTTURLEY16) February 4, 2024

@Michael_Yon Twitter

@TuckerCarlson

https://youtu.be/1XhsgQ48fGs?si=rElwavSFRHQDj7I_ Tucker’s Interview

 

Highlights of the Podcast

01:34 – Chinese grid equipment coming

05:32 – The Panama Canal Railway

11:38 – The IOM helps the invaders get through from Colombia

29:29 – The Chinese Communist Party

33:16 – The Canadian border and increasing numbers

38:09 – The vaccine before the Palestinians

52:36 – The war in Ukraine and got into some combat stuff

1:19:57 – The factories and people are still smoking dope in America

1:24:22 – The biggest gas field in Europe

1:30:20 – The Second Amendment folks to try to bring in the U.N.

1:41:07 – The Chinese Communist Party and the World Economic Forum

1:47:56 – The structure of lies and truth

The video below is from Michael Yon on his trip to Panama and traveling with George McMillan going through the Darien Gap. I appreciate both George and Michael’s time to tell me about their trips and the connections they are seeing.

 

The camps not controlled by the Chinese are all funded by the UN and other NGOs. The following are from Michael on their trip. George even commented that he has also seen these same NGOs worldwide facilitating migrations of people. The UN NGO headquarters is right in the open on the Panama Canal. Michael took this shot.

 

Thank you, Michael Yon, for your efforts to help get the story out. The migrants are being used as pawns, and no one will have a better life. The energy sector can help solve the problems, but we need to watch who we elect and hold all of them accountable for our tax dollars. I recommend defunding the UN and electing all new leadership. If you are a current politician from any party, you have not had America first. As a humanitarian, it is sad that people are being sold into slavery and sex trafficked, and our energy security has been compromised. We can provide low-cost power to everyone if we work together and do not print money. The UN, WHO, WEF, and IMF must be tossed out. As the world awakens, it will get more interesting and hazardous.

 

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Orsted’s strategic shake-up has investors worried

Energy News Beat
Wind firm Orsted will present its new strategy on Wednesday
Company faces dilemma of cutting targets or raising capital
Cutting dividend, asset sales could restore confidence -analysts

COPENHAGEN, Feb 2 (Reuters) – Orsted (ORSTED.CO), opens new tab is expected to trim investment plans and cut dividends on Wednesday as it presents a new strategy but investors are worried that the Danish renewable energy firm may want to raise new capital to stick to its ambitious targets.
Once a green investor darling, the world’s biggest offshore wind developer found itself at the centre of a perfect storm of rising inflation, higher interest rates and supply chain delays that forced it and other companies to cancel offshore projects.
The nascent offshore wind industry in the United States alone was last year marked by stalled developments and write-offs that according to project developers like BP (BP.L), opens new tab, Shell (SHEL.L), opens new tab and Equinor (EQNR.OL), opens new tab could surpass $9 billion.
Orsted halted development of two offshore wind projects in New Jersey in November and said related impairments had surged above $5 billion, more than halving the value of its shares.
Just months before, management had presented a plan to invest 475 billion Danish crowns ($69 billion) to achieve its target of installing 50 gigawatts (GW) of renewable capacity – mostly offshore wind – by the end of the decade.
On Wednesday, at its headquarters outside Copenhagen, the company will again welcome investors and analysts, who broadly speaking say Orsted has two choices: Stick with its ambitious growth plan and raise fresh capital or set less ambitious targets that can be funded by cutting dividends and selling existing assets.
“The 50 gigawatt target has to be removed, and the market knows it. But they need to cut their financial goals so deep that it hurts,” said a portfolio manager overseeing investments in Orsted.
Analysts have called for the company to cut dividends, sell assets and reduce costs. Lowering the 2030 target by 10-12 GW would “appear sensible”, according to Bernstein.
Bank of America analysts last month recommended buying Orsted shares, arguing the company can avoid the need for new capital by selling half of its U.S. business, reducing capital expenditure by 20% and cutting dividends by a quarter.
Orsted CEO Mads Nipper said in November as the strategic review was launched that there were “no active plans” to raise equity.
“This…left the market nervous that plans could become active and that a capital raise may happen nonetheless given the size of the hole in the balance sheet,” Bank of America said.
A decade ago, state-controlled Orsted was a first-mover in offshore wind, beginning a transition from an oil and gas focused utility to a pure renewables player.
“Orsted has been and still is a prestige project for the politicians,” said Sydbank analyst Jacob Pedersen. “Investors would like to do without a capital increase but the Danish state may see it differently,” he said.
Orsted shares have risen by around two-thirds since early November but are still well below their level before the first writedowns were announced.
Bernstein analysts said there could yet be further writedowns. “100% of previous mistakes might not have been unveiled yet.”
($1 = 6.8472 Danish crowns)

Reporting by Jacob Gronholt-Pedersen; additional reporting by Stine Jacobsen and Scott DiSavino; Editing by Kirsten Donovan

Source: Reuters

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