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30 I Companies & Markets bne February 2024
The decision is seen as a tactical election gambit and the licences are likely to be reinstated once the voting is over. It is a deliberate effort to defer contentious energy debates until after the elections on November 5.
The administration's cautious stance on LNG is part of
a broader pattern of delays concerning key energy projects and regulations.
High-profile initiatives such as the future operations
of Energy Transfer LP's Dakota Access Pipeline and the establishment of criteria for carbon dioxide pipeline regulation and hydrogen production tax credits are also likely to see postponements, reports Bloomberg.
The Dakota Access Pipeline, which transports crude oil
over 1,900 km from the Bakken fields to Illinois, has been under scrutiny due to environmental and indigenous rights concerns. Despite a federal court mandate for a thorough environmental review, the US Army Corps of Engineers has yet to define a clear path forward for the pipeline, leaving its fate uncertain.
Similarly, the debate over the hydrogen tax credit, pivotal for the burgeoning hydrogen energy sector, has been extended into the next year. The delay stems from a clash between
environmentalists demanding strict production standards and industry proponents advocating for more lenient regulations to foster growth.
The announcement of the LNG permit freeze was met with jubilation among climate activists in Washington, with crowds proclaiming: "When we fight, we win." But the announcement was met with consternation by US partners dependent on US LNG exports. The last review of LNG export projects was in 2018, when export capacity was 113.27mn cubic metres per day. That capacity has tripled and is set to shoot higher by 2030 with projects under construction.
Environmentalists and youth groups that make up part of Biden's base have protested against the rapid expansion of the US production of oil and gas in the last decade. The US has concurrently been a key player in the global climate debate but at the same time has emerged as the world’s biggest producer and exporter of hydrocarbons.
Only four projects with export approvals pending at the
DOE will be directly affected by the freeze, an administration official told Reuters without naming them. The projects could include ones by Sempra Infrastructure, Commonwealth LNG and Energy Transfer, the DOE's website showed, according to Reuters.
Serbia signs €2bn renewable energy deal
with Chinese companies
bne IntelliNews
Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic signed a memorandum of understanding (MoU) with two Chinese companies regarding investments in renewable energy sources on January 26. The investment amounts to approximately €2bn, with Shanghai Fengling Renewables being the principal investor.
The agreement signed with Shanghai Fengling Renewables and Serbia Zijin Copper, in which Serbia holds a co-ownership stake, is the start of Serbia's largest-ever project in the realm of renewable energy.
The ambitious project envisions the establishment of a plant near Bor, with total capacity of 2GW.
It includes the construction of a wind power plant generating 1,500 MW, a solar power plant with a capacity of 500 MW and the creation of a factory for green hydrogen production capable of producing around 30,000 tonnes annually.
Djedovic Handanovic highlighted that the generated energy will
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primarily cater to the production needs of Zijin, a major Serbian exporter that has significantly expanded its operations, particularly following the completion of the Bor smelter reconstruction.
Djedovic Handanovic announced that the construction of the plant is scheduled to start in the first quarter of next year, with the first phase targeting 700 MW set to be completed by mid-2026.
The goal is to finalise the entire project, achieving the full 2,000 MW and the green hydrogen production capacity of 30,000 tonnes per year, by the end of 2028.
This initiative is poised to generate between 300 to 500 new jobs, predominantly in the renewable energy sector.
With this strategic partnership, Serbia is set to emerge as a major hub for the production and equipment of renewable energy projects, including green hydrogen. The project is also expected to play a crucial role in advancing Serbia's energy security and independence goals, aligning with the country's ambition to achieve carbon neutrality by 2050.