ENERGY MARKETS (CRAZY)

“Europe is running out of time to refill seasonally low natural gas inventories. The region is at risk of entering the winter with really low stockpile, just as demand for heating is at its highest,” wrote on Twitter (S'ouvre dans une nouvelle fenêtre) Stephen Stapczynski, Singapore-based Bloomberg reporter.

“Spanish and Italian power prices hit record highs above 124 and 129 €/MWh resp. in last few days. We are most likely to break those levels this week on record fuels and poor wind forecasts. Power prices in Germany is also expected to reach highest level since Oct 2018 ~120,” wrote energy analyst Ashank Sinha (S'ouvre dans une nouvelle fenêtre).

European natural gas and electricity prices surged to new record high, also in relation to weak pipeline flows from Norway and Russia, and fears that US LNG deliveries could be delayed by Hurricane Ida.

Another factor: pricier European carbon credits. "Since bottoming out at €23.07 on October 28 last year, EUAs have risen by 160%,” wrote @CarbonReporter on Twitter (S'ouvre dans une nouvelle fenêtre).

Adding to existing complexities, Bloomberg reports (S'ouvre dans une nouvelle fenêtre) that the head of Libya’s state energy company was suspended, the oil minister said, in a move that raises tensions and potentially threatens stability in a sector that serves as the OPEC nation’s financial lifeline.

CHINA AND HYDROGEN

China's Sinopec Corp plans to spend 30 billion yuan ($4.6 billion) on hydrogen energy by 2025, Reuters reports on Monday (S'ouvre dans une nouvelle fenêtre). In the hydrogen sector, this could turn out to be the most important piece of news of August.

Last week, quite a few hydrogen developments from China:

• More than 20 provinces and 40 cities in China have published development plans worth trillions of yuan for hydrogen energy facilities, according to the state-run Economic Daily (S'ouvre dans une nouvelle fenêtre).

• A fleet of 100 hydrogen-powered trucks have been delivered for the Xiong’an New Area construction project in Hebei Province, China - reported H2 View (S'ouvre dans une nouvelle fenêtre).

• Investors see green hydrogen advancing as China signals support, wrote Bloomberg (S'ouvre dans une nouvelle fenêtre).

HYDROGEN IN ASIA

In a call on Thursday with John Kerry, Power Minister Shri Singh said (S'ouvre dans une nouvelle fenêtre) “that India would be conducting competitive bids for green hydrogen in next 3-4 months to pave the road for viable usage of hydrogen as a fuel. India is looking at bids for 4000 MW of electrolysers capacity. The other countries need to come up with more electrolyser plants to bring down the costs.” The Indian government wants to mandate using green hydrogen in fertilizer and refining.

Meanwhile, Indian renewable energy company ACME Group signed a deal (S'ouvre dans une nouvelle fenêtre) to set up a gigantic green ammonia projects in Oman.

The Samsung C&T trading division signed a deal (S'ouvre dans une nouvelle fenêtre) with Namhae Chemical and Korea Southern Power (Kospo) to import and use clean hydrogen and clean ammonia.

Hyundai is about to host a virtual forum (S'ouvre dans une nouvelle fenêtre)to present the its plans for a new 'wave’ of hydrogen-based products and technologies.

Japan’s Toyota said (S'ouvre dans une nouvelle fenêtre) it would assemble integrated dual fuel cell (FC) modules in the United States.

Japan continues also its commitment and hydrogen partnership with Australia. Anglo-Australian Rio Tinto and Japan's Sumitomo Corporation are considering to construct a hydrogen pilot plant (S'ouvre dans une nouvelle fenêtre)at Rio Tinto's Yarwun alumina refinery in Gladstone, Queensland.

HYDROGEN IN THE REST OF THE WORLD

As the debate about renewable energy is gaining traction (and getting heated) in France, Engie is eyeing hydrogen plans in France (S'ouvre dans une nouvelle fenêtre) and Peru (S'ouvre dans une nouvelle fenêtre).

Meanwhile, Germany is eyes a partership with Namibia and Ukraine.

“Namibia .. has a lot of vast unused space. High wind speeds in Namibia mean that the generation of wind power is particularly profitable. Solar power harbours an even greater potential thanks to over 3,500 hours of sunshine per year. This is almost twice as much as Germany has to offer,” said Germany’s Federal Research Minister Anja Karliczek (S'ouvre dans une nouvelle fenêtre), after the decision to sign a deal with the ex colony.

Germany’s RWE Supply and Trading signed a deal (S'ouvre dans une nouvelle fenêtre) with Ukraine’s Naftogaz, including “the development of green hydrogen and ammonia production and storage in Ukraine and its import to Germany.

GERMAN POLITICAL ELECTIONS

The political campaign leading up to Germany's federal elections enters the final stretch, the final four weeks.

Over the weekend, the three most likely chancellor candidates (SPD, Greens and CDU) faced off. “Every problem costs money to solve, yet only climate was framed by asking the chancellor candidates what it's going to cost voters, or what they're going to lose,” wrote on Twitter reported William Noah Glucroft (S'ouvre dans une nouvelle fenêtre). Fact.

Climate change increased the intensity and likelihood of the rainfalls and floods in Germany, Luxembourg, Belgium and the Netherlands by about 3% to 19%, the World Weather Attribution initiative wrote (S'ouvre dans une nouvelle fenêtre). Probably a topic in the next round of the televised debate?

NORD STREAM 2 AND THE BALTIC REGION

Last week, the Düsseldorf Higher Regional ruled that Nord Stream 2 gas pipeline is not exempt from European Union rules that require the owners of pipelines to be different from the suppliers of the gas that flows in them to ensure fair competition.

The decision came a day after the end of the Crimea Summit in Kiev.

Meanwhile, a new electricity connection between Estonia and Latvia (S'ouvre dans une nouvelle fenêtre) was launched on August 25.

THIS WEEK IN BRUSSELS

Apart from energy and carbon prices, significant the focus on foreign affairs: Afghanistan, but also Tunisia. On Wednesday the informal meeting of the European Defence ministers (S'ouvre dans une nouvelle fenêtre); on Thursday and Friday the informal meeting of the European Foreign ministers (S'ouvre dans une nouvelle fenêtre).

The EU Parliament and Council are starting meetings. In the energy field, the focus is on the Fit for 55 Package, and on buildings’ energy efficiency.

Next weeks politicians and officials will intensify their works. The current is an in-between week, at least in Brussels.