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Newly inaugurated US President Joe Biden has hit the ground running after only a few days in office, with ambitious plans unveiled and a score of executive orders signed reversing much of the Trump administration’s environmental and energy regulations.

The 78-year-old president is also poised to make good on his campaign pledge to lay the groundwork for the country’s most aggressive climate change agenda in history, rivalling and surpassing even that of the Obama administration.

While it remains to be seen if he will have enough bi-partisan support to push through all of his energy initiatives, especially the so-called Green Deal, there is no doubt that the US, currently the world’s largest crude oil producer and third largest liquefied natural gas (LNG) producer, is about to see abrupt changes that will forever change the country’s energy landscape.

Biden has already set in motion the process to have the US re-join the 2015 Paris Climate Accord that Trump pulled out off.

He has also issued an executive order to effectively kill the Keystone XL pipeline project designed to carry crude oil from tar sands in Canada’s Alberta province, as well as halting oil and gas leasing in Alaska’s Arctic National Wildlife Refuge – moves that have already set the US oil and gas sector on edge.

However, even before Biden took office, the US was leading China in total overseas green energy project financing. For fiscal year 2020, the US spent some US bn on climate financing to support low-carbon development in developing countries, a Brookings Institute report revealed two weeks ago.

China, the world’s top oil and natural gas user, and by far its largest greenhouse (GHG) gas emitter, is still largely financing overseas oil and gas deals in developing countries.

PROJECT INVESTOR

China, also the largest global energy project investor, financed a total of US$196.7 bn in overseas energy sectors between 2007 and 2016, the Brookings report added.

Over that time period, energy loans issued by China Development Bank (CDB) and Chinese Export-Import Bank (EXIM) amounted to as much as all the energy finance of major Western-backed multi-lateral development banks combined.

Even more troubling from a carbon footprint perspective, of all CDB and EXIM globally financed energy projects, fossil fuel projects received around 75% of the total credits.

Renewable energy at home under the Biden administration, for its part, is expected to deliver around 70% of the new generation capacity built this year, according to a new analysis from the US Energy Information Administration (EIA).

Expect that greener footprint to continue overseas, including joining a move already underway in Europe to not only move away from dirtier burning coal-fired power plants, but to even no longer finance LNG projects needed for both industrial and power demand usage.

PRO-GREEN PIVOT

The Catch-22 for Biden is that a pro-green pivot including hitting the US LNG sector would create headwinds, not to mention fierce partisan bickering, with the US vying with both Qatar and Australia for the top two LNG production slots.

Waiting in the wings are a host of other producers, including an ambitious Russia which aims to also compete for one of the top LNG import slots and capture as much Asia-Pacific market share as possible, including China the world’s second largest LNG importer.

China seems to have no greener build-out plans for its overseas energy infrastructure investment strategy. However, to its credit, it has put more money in both domestic solar and wind projects in recent years, but given the country’s enormous population and its massive energy demand, more needs to be done.

This includes both at home and abroad to help China reach what can still be called an overly ambitious objective set by Chinese President Xi Jinping in September before a viral UN audience to make China carbon neutral before 2060.

TIT FOR TAT

Given the pressure that Xi has now put not only on himself and his own legacy, but on China’s global reputation by his carbon neutral pledge, along with Beijing’s growing habit of trying to match the US tit for tat on the global stage, Beijing could be positioning itself to launch another green energy initiative.

However, it seems that Beijing will wait until Biden more completely unveils his green plan before it formulates or claims to advance any new greener policy change with accompanying media fanfare.

Boston University’s Global Development Policy Center said in a November report that 777 power plants in 83 different countries received funding from Chinese banks and entities. That total includes plants that are operational, under construction and in planning, and together represents 186.5 gigawatts (GW) of generation capacity.

COAL-FIRED

Coal-fired plants form the largest share of these investments by capacity, at over 74 GW, or about 40% of the capacity tracked.

However, the type of power projects financed by China may be finally shifting, the report added. Of the projects that are under construction or planned from November 2020 until 2033, wind and solar represent around 12% of total capacity, with the share of hydropower higher in future capacity (33%) than for currently operating plants (27%).

But, unfortunately for both China and the world, the distribution of these future projects is still far too heavily centered on fossil-based generation to be compatible with global climate needs and objectives.

ATF

(ATF) One of Australia’s richest men, iron ore magnate Andrew Forrest, is urging government leaders to develop “green” steel-making facilities. The billionaire from Perth says he aims to begin work on a pilot plant later this year to capitalize on the country’s vast iron ore reserves and powered by a new form of energy that is emissions-free and has the potential to replace coal: green hydrogen.

Forrest is the founder of Fortescue Metals Group, which is generating considerable sums currently – with output reportedly worth US$940 million in December alone – by selling iron ore to China at prices that now top US$170 a tonne.

Forrest and his wife are philanthropists who have pledged to give away the bulk of their wealth to charity and support a range of worthy causes, such as education, indigenous Australians, the fight against slavery, and now, the fight against climate change.

The mining boss’ latest endeavour has vast money-making potential but his focus is more on cleaning up the ‘dirty business’ he has made his fortune from – by eliminating emissions caused by the production of steel and combating global warming.

“The green hydrogen market could generate revenues – at the very least – of $US12 trillion (A$15 trillion) by 2050, bigger than any industry we have,” he said in a lecture that was shown on national television on Saturday.

“And Australia, with characteristic luck, is sitting on everything it needs to be the world leader – but only if it acts fast.”

The steel-making industry involves heating iron ore with coking coal in blast furnaces at very high temperatures. This sector is a significant contributor to global warming, reportedly responsible for 8% of global emissions.

Forrest wants to eliminate those emissions. He says companies producing steel can use hydrogen in a much better process, because it burns cleanly and emits only water.

“Green hydrogen” is the term for the process in which hydrogen is generated via renewable energy, as it is emissions-free.

“You replace coal in the furnace with our old friend, green hydrogen. You get steel – but instead of emitting vast clouds of CO2, you produce nothing more than water vapour,” Dr Forrest said.

But the technology is generally not used in steel making because of the costs involved, and experts say it could take years before the process is economically feasible.

‘Scrap the blast furnace’

However, Forrest wants his company, Fortescue, to try more “radical” methods – “scrap the blast furnace and just zap the iron ore with renewable electricity”.

“We produce over 40% of the world’s iron ore. And our potential green energy and hydrogen resources are immeasurable,” he said.

“If Australia were to capture just 10% of the world’s steel market, we could generate well over 40,000 jobs – more than what’s required to replace every job in the coal industry. Not any old jobs, but similar jobs – construction workers, mechanics, electricians, engineers – all of the sectors that’ll be hit when coal is phased out.”

Energy experts are unsure if hydrogen can replace coal in the steel-making process but they have said it is feasible, particularly for someone like Forrest, given his deep pockets.

Hydrogen is abundant, cheap and clean burning, but it is reportedly difficult to transport – it may need to be converted to ammonia, then converted back into hydrogen at the destination where it will be used. It can make metal brittle and is also a lot more explosive than petrol. However, solutions to these issues are the subject of intense research currently.

Many shades of hydrogen

There are, in fact, many different shades of hydrogen, but Forrest appears to have timed his venture well, with the new US President Joe Biden keen to boost clean energy and the European Union scaling up renewable hydrogen projects. Meanwhile, the biggest countries in Asia are all anxious to reduce pollution and develop renewable sources of power.

Tim Buckley, an energy market analyst from the Institute for Energy Economics and Financial Analysis (IEFA), told the ABC it was estimated that the price of green hydrogen will drop 70% over the coming decade in countries with access to cheap renewable power.

“Where green hydrogen is almost inevitably going to work is where green energy is going to be almost free,” he said. “Places like Rajasthan in India or the Pilbara in Australia.”

And the Pilbara, of course, if where Forrest’s Christmas Creek iron ore mine is located, along with many other rust-coloured mountains, some of them up to 95% iron ore.

Currently, the Australian government is headed by a prime minister, Scott Morrison, who has long been an unabashed fan of coal. So, it is no surprise to hear that ‘ScoMo’ and his much-criticized advisers are cool on ‘green hydrogen’.

But it’s early days and it might take braver leaders to make this new source of energy happen.

Forrest has met Xi Jinping and is sometimes hailed as a friend of China. Maybe he will find backers more receptive to this sort of venture among the CCP in Beijing than Down Under. He plans to travel there soon.

ATF

WORK on the US$294 million Kariba Dam Rehabilitation Project is well on course with the Zambezi River Authority (ZRA) saying plunge pool reshaping is now 60 percent complete.

The authority, which is jointly owned by Zimbabwe and Zambia expressed satisfaction over the work so far covered ahead of the project’s 2024 completion deadline.

The rehabilitation project, which commenced in 2017, comprises the reshaping of the plunge pool and the refurbishment of the spillway gates.

According to local media ZRA chief executive officer Engineer Munyaradzi Munodawafa, highlighted that works at the project site are continuing in strict adherence to World Health Organisation covid-19 guidelines and the health authorities in the two contracting states.

“It is worth mentioning that the overall objective of the KDRP (Kariba Dam Rehabilitation Project) is not to seal cracks as has previously been speculated by some sections of the media, but rather to increase the lifespan of the dam wall.

“The project is on schedule while the contract implementation timeframe is 48 months from the commencement date.

“Consequently, the completion of the works will be accomplished in 2024,” he was quoted as saying.

The project is being funded by the European Union, World Bank, African Development Bank, the government of Sweden, and the ZRA on behalf of the governments of Zambia and Zimbabwe, through a combination of grants and loans.

The rehabilitation of Kariba Dam is aimed at enhancing the structural integrity of the Kariba Dam wall for efficient power generation.

Meanwhile, water levels at Lake Kariba continue to rise due to increased rainfall activity pushing the overall lake levels to 3,21 metres above the Minimum Operating Level (MOL) of 475,50m as of January 18, 2021.

“It is very encouraging to note that the lake levels, which should generally be in a decreasing trend at this time of the year have continued to record a steady rise due to increased rainfall activity on and around the lake, leading to a lake level of 478,71m with 22,45 percent live/usable storage on 18th of January 2021,” said Eng Munodawafa.

Business Weekly

Oil prices slipped for a second straight session on Monday as renewed COVID-19 lockdowns raised fresh concerns about global fuel demand.

Brent crude futures for March fell 15 cents, or 0.3%, to $55.26 a barrel by 0158 GMT, while US West Texas Intermediate crude for March was at $52.19 a barrel, down 8 cents, or 0.2%.

“Signs of weaker demand weighed on the market,” ANZ analysts said, pointing to lockdowns in Hong Kong, China and possibly France as COVID-19 cases rise, restricting business activity and fuel consumption.

China reported a climb in new COVID-19 cases on Monday, casting a pall over demand prospects in the world’s largest energy consumer, the main pillar of strength for global oil consumption.

Last Friday prices came under further pressure after data from the US Energy Information Administration showed US crude inventories surprisingly rose by 4.4 million barrels in the week to January 15, versus expectations for a draw of 1.2 million barrels.

The number of oil and natural gas rigs added by US energy firms rose for a ninth week in a row in the week to January. 22, but are still 52% below this time last year, data from Baker Hughes showed.

Some support for prices has come in recent weeks from additional production cuts from the world’s top exporter, Saudi Arabia. But investors are watching for a resumption of talks between the United States and Iran on a nuclear accord – which could see Washington lifting sanctions on Tehran’s oil exports, boosting supply.

Iran’s oil minister said on Friday the country’s oil exports have climbed in recent months and its sales of petroleum products to foreign buyers reached record highs despite US sanctions.

On Sunday, Indonesia said its coast guard had seized the Iranian-flagged MT Horse and the Panamanian-flagged MT Freya vessels over suspected illegal fuel transfers off the country’s waters_Reuters