Google has announced it will invest approximately €1 billion in digital infrastructure and clean energy in Germany. The US technology company signed a power purchase agreement (PPA) with the French utility ENIGIE to run its data centers in Germany at nearly 80% carbon-free energy on an hourly basis starting from 2022.
Though massive efforts are underway globally to electrify industry and transport, this will not be enough to meet the Paris Agreement’s net zero emission goals, the classification society DNV warns. Scaling of hydrogen could take 20 years and is expected to “arrive too late to have the impact needed today.”
The cost of producing hydrogen gas from renewables is forecast to fall sharply over the next decade, providing an affordable fuel to decarbonise the energy and transport sectors. In Germany and Texas, RES hydrogen costs could fall to $1.40 a kilogram by 2030 from the current range of $2.50 to $6.80, according to research published in Nature Energy.
Inventories of natural gas in the US will reach 3,592 billion cubic feet (Bcf) by November 1, the start of the winter heating season – nearly 160 Bcf less than usual. High withdrawals in winter 2020/21 were not replenished this summer as dry gas production stayed flat while US LNG exports keep rising, leaving little for storage.
Gas-burn for power generation will stay almost flat in India, as most of the country’s stranded gas-fired fleet is uncompetitive without subsidies or an outright collapse of international gas prices, the International Energy Agency (IEA) finds. Solar photovoltaic (PV), in contrast, is poised for “explosive growth” in India, matching coal’s share within two decades.
Near curve gas prices at the Dutch TTF trading hub must stay above the 15% coal-to-gas fuel switch trigger to displace enough gas from power generation to bolster Europe’s pre-winter storage inventories. Energy Aspects sees upside on TTF prices to €46/MWh amid risks over Russian flows this winter due to a possible delay of Nord Stream 2.
Speed, scale and scope of converting natural gas pipelines to carry low-carbon fuels such as hydrogen will support “deeper decarbonisation,” alongside a renewables build-out, IHS Markit finds. Many industries can switch to gas to reduce their carbon intensity, and conversion costs are economically viable at $40-$60 per ton of carbon.
Capital expenditure into oil & gas ventures has surged 30.4% in Asia as the region is staging a fast rebound from the coronavirus crisis. Higher commodity prices unlock greater flexibility in spending, Fitch Rating said, but warned an uneven uptake in vaccinations will leave the recovery in fuel demand tepid in some places.
Summit Oil and Shipping Co, the largest private fuel importer to Bangladesh, envisages contracting 1 mtpa of LNG for up to 20 years from Commonwealth’s 8.4 mtpa export facility under development in Cameron, Louisiana. Summit Group operates 3 GW gas-fired powergen capacity on the Indian subcontinent.