Nuvera Fuel Cells and HELINOR Energy Join Forces to Develop Zero-Emission Marine Power Solutions

January 12th, 2024 Tim Jay Leave a comment

Nuvera Fuel Cells, a leading provider of fuel cell power solutions, has formalized a technology development agreement with HELINOR Energy, a Norwegian technology and production provider specializing in next-generation hydrogen fuel cell and fire suppression modules. The collaboration aims to develop scalable zero-emission energy solutions for maritime applications, with HELINOR funding the integration of Nuvera’s next-generation high-power fuel cell engine technology into the maritime industry.

As the demand for zero-emission solutions in shipping grows, both companies see an opportunity to address environmental concerns and demonstrate the efficiency and reliability advantages of hydrogen fuel cell power solutions. Kedar Murthy, Chief Commercial Officer at Nuvera Fuel Cells, expresses enthusiasm for strengthening Nuvera’s presence in the maritime industry and collaborating with HELINOR to contribute to the decarbonization of sea-going transportation.

In alignment with the International Maritime Organization’s strategy to achieve net-zero greenhouse gas emissions by 2050, HELINOR is dedicated to accelerating the transition to zero-carbon shipping. HELINOR aims to achieve this by offering compact, lightweight, and powerful fuel cell modules that set new standards for safety at sea. Elling Helvig, Chairman of HELINOR, notes that Nuvera’s high-efficiency fuel cell engines are the ideal solution due to their high-power density, optimal use of limited on-board space, and demonstrated high-efficiency performance, resulting in longer range and lower operating costs.

Nuvera’s E-Series Fuel Cell Engines play a crucial role in enabling vessel and maritime equipment manufacturers to meet stringent emissions mandates. These engines are designed to support regulatory compliance and maintain economic competitiveness by delivering high-performance power solutions. The collaboration between Nuvera Fuel Cells and HELINOR Energy signifies a concerted effort to advance the development and adoption of zero-emission energy solutions within the maritime industry.

transformer Rickmers set record for prohext shipments of export cargo and import cargo in international trade from Croatian port.

Global Logistics, Global Trade Daily

The Complexities of Transformer Transportation in the Power Industry

September 10th, 2023 Emily Newton Leave a comment

Upgrading power plant infrastructure is crucial for the energy industry. It’s essential in preventing widespread grid issues and enabling the green energy transition, but it can also be more challenging than it appears. Transformer transportation carries a unique set of issues.

Shipping a transformer from a manufacturing plant to its installation site may seem straightforward compared to larger grid considerations. Despite this appearance, transporting industrial-size transformers requires thorough planning to avoid costs and minimize lead times. Organizations must consider these six complexities for effective transformer shipping.

Vehicle Restrictions

One of the first logistical obstacles businesses face is only select vehicles can transport transformers. A grid-scale transformer can weigh over 170 tons and be as tall as a two-storey house. Most equipment cannot safely transport loads that bulky.

Rail transport may seem like the ideal solution given that mass, but railways present unique challenges, too. Trains need specialized freight cars called Schnabel cars to support large loads while preventing the expensive equipment from colliding with other railcars. Some substations may also be inaccessible by rail, further minimizing these options.

Logistics providers will likely have to transport transformers along roadways — if not for the entire journey, then at least to and from railways. That requires heavy-duty lorries capable of carrying abnormal loads.

Abnormal Load Permits

Legal guidelines further complicate transformer transportation. The government classifies anything weighing more than 44,000 kilograms or wider than 2.9 meters as an abnormal load. Industrial transformers far exceed these measurements, requiring special permits and notification periods.

Logistics services transporting these loads must register through the Electronic Service Delivery for Abnormal Loads (ESDAL). That process will notify police and highway authorities, as they may have to shut down some roads, inspect bridges, move power lines or go over the planned route for any potential issues. In many cases, companies must file ESDAL applications several months in advance.

Moving abnormal loads outside the U.K. involves even more regulatory issues. In addition to checking with local authorities, shipping companies must review destination customs and transportation restrictions.

Route Planning Challenges

The ESDAL notification process entails route planning, which can be challenging when dealing with large transformers. As with all transport, finding the most direct and efficient route is generally best. However, some direct paths may be unavailable because of the transformer’s size.

Bridges and overpasses may be too low for lorries carrying transformers to go under. Some smaller roads to substations may have bends too tight for long specialized vehicles to manage. There may be sufficient space in other cases, but only if authorities clear the area first.

Intermodal transformer shipping requires even more planning. Scheduling specialized road vehicles, railcars and ships and determining which routes are safest and most efficient for each can take considerable time and effort.

Equipment Availability

Transformer transport stakeholders must also consider the availability of the equipment they must use. Schnabel cars and abnormal load-capable lorries are less common than smaller, less specialized alternatives. Consequently, it can take more planning and earlier action to reserve them.

It’s also important to consider loading and unloading. Every location where transformers move on or off a vehicle must have a crane capable of lifting hundreds of tons. In some areas, there may be size constraints, too, further restricting the range of applicable equipment.

Key stakeholders must determine what kinds of transportation, cranes and any supplementary equipment they need early. That may require reviewing routes to check for space restrictions. Companies might also have to work with different logistics providers than they usually do to find the machines they need.

Time Consumption and Costs

All these other transformer shipping complexities mean shipping this equipment can be time consuming and costly. Specialized vehicles are often more expensive than their more widely available counterparts and there may be legal fees to consider. Businesses should also plan on higher labor costs from the time it takes to complete the process.

The law forbids vehicles carrying loads over 80,000 kilograms to go over 40 miles per hour on motorways and 30 mph on other roads. On some streets, it may be necessary to go even slower to be as safe as possible. As a result, routes can take longer than GPS software suggests, so power companies must take that into account.

Given these delays and expenses, careful financial planning is necessary when transporting transformers. Businesses may have to schedule other large expenditures around these shipping times.

Transformer Shipping Best Practices

Given these complexities, power companies and their supply chain partners must approach transformer shipping carefully. The process can seem intimidating, but with enough preparation and following a few best practices, businesses can mitigate these costs and disruptions.

Using reconditioned transformers instead of brand-new ones when possible is often the most cost-effective route. Refurbished equipment has significantly shorter lead times than new alternatives, mitigating the impact of shipping delays and offsetting logistics costs. These recycled components are also more sustainable than new transformers, which aligns with net-zero energy goals.

It’s best to plan as far ahead as possible. Finding vendors offering the right equipment at the right time can take some research and gaining government clearance is even more time consuming. Last-minute adjustments are also more problematic when the load is more tightly regulated, so businesses should plan all transformer transportation months in advance.

Given the complexity of these logistics decisions, some businesses may consider using artificial intelligence (AI) to find the best way forward. Companies using AI to analyze and recommend ideal routes have saved 15% to 60% in time, distance and fuel. Those savings significantly mitigate the financial and scheduling toll of transporting large transformers.

Transformer Transportation Requires Careful Attention

As the nation’s energy needs evolve, substations will need new transformers. Supplying that need means power companies and supply chain organizations must consider how to approach transformer transportation. Failure to plan these routes thoroughly can result in substantial delays and cost overruns.

Knowing what to expect is the first step in overcoming obstacles. When businesses understand the complexities of transformer shipping, they can manage it more effectively.

Global Trade Daily

Investing in Emerging Markets: Capitalizing on Trade Growth Potential

August 15th, 2023 Rumzz Bajwa Leave a comment

Investors are always looking for the next big thing, and it makes sense that many of them are flocking to emerging markets. These developing economies have attractive valuations, and the promise of their growth can translate to significant earnings. Today we’ll discuss emerging markets in detail and provide some of the most notable examples.

What are emerging markets?

Emerging markets are countries that are undergoing rapid industrialization and economic growth and, as a result, are getting more and more enmeshed in the global economy. They often present significant growth potential and exciting investment opportunities but come with commensurate risks compared to older, more established markets and economies.

Advantages of emerging markets

Investing in an emerging market can greatly enhance your earning potential. Let’s take a look at their positive aspects.

Attractive regulations and incentives

Emerging markets recognize the importance of attracting foreign investors to stimulate economic growth and development. They implement regulatory reforms that create a favorable investment climate to achieve this. These reforms encompass various areas such as business regulations, tax incentives, intellectual property rights (IPR) protection, foreign ownership restrictions, transparency and anti-corruption measures, infrastructure development, and investor protection.

Emerging markets streamline business regulations, simplify bureaucratic procedures, and establish investor-friendly legal frameworks. They offer tax breaks, exemptions, and reductions to incentivize foreign investment.

Robust IPR protection is prioritized, with the enforcement of copyright, patent, and trademark laws. Foreign ownership restrictions are relaxed to leverage foreign expertise and capital. Transparency, accountability, and anti-corruption measures are strengthened to build trust among investors.

Investments in infrastructure development, including transportation, energy, and telecommunications, enhance competitiveness and attract sector-specific investments. Mechanisms for investor protection and dispute resolution ensure investor rights are prioritized to further boost the market’s attractiveness to foreign cash flow.

Access to untapped markets and natural resources with significant growth potential

The transition from an emerging market into a developed economy can be tumultuous, but with the right resources, economic guidance, and luck, the development can bring about plenty of opportunities to get into new, untapped markets.

In a similar vein, emerging markets may be just starting to discover and utilize their country’s natural resources to their fullest extent. These include but are not limited to, minerals, energy, water, agricultural resources, precious stones, and metal. One example of a current market trend is the demand for lithium, which is used to power environment-friendly electric vehicles. Countries like Chile and Zimbabwe, with their extensive lithium reserves, are now prime candidates for foreign investments.

Favorable demographics

Emerging markets usually have a younger population with almost unlimited potential in terms of growth and experience. The younger workforce is more adaptable to change, especially regarding technology. Aside from that, they offer diverse skills and outlooks that can be useful in problem-solving and decision-making, along with their long-term potential for contributing to the development of their country.

Infrastructure Development

Developing countries present great opportunities for investors in real estate, construction, and other related industries. The drive to improve and urbanize their infrastructure often leads to creating and improving new consumer markets that further bolster their economies. Improved housing projects, commercial developments, and construction and improvement of transportation and other infrastructure are some of the positive signals that investors need to look out for in emerging markets.

Disadvantages of emerging markets

Like any investment, it’s important to weigh the pros and cons before making a decision. Here are some of the pitfalls of investing in emerging markets.

Political and economic instability

It’s not uncommon for emerging markets to face political and economic turmoil during their journey to development. Due to the increased investment and cash flow, their governments are susceptible to fluctuations in policy goals, corruption, and regulatory uncertainties, all of which can cause an unpredictable business environment and negatively affect investor outlook.

Volatile markets

The sudden influx of foreign investments and funds can lead to significant volatility in emerging markets. Since their economies are still in their infancy (or are not yet equipped to withstand foreign trade,) their trade regulations are often found lacking regarding investor protection, liquidity regulations, and risk management guidelines.

Inadequate competencies and education

Emerging markets may face skill gaps and inadequate educational systems that limit the availability of a skilled workforce. This can impact productivity, innovation, and the competitiveness of industries. These issues can often be resolved through government intervention, but it may take time, which is a premium nowadays, considering that several industries, particularly in technology, are experiencing a significant uptick in advancement and development.

Limited infrastructure

Developing countries often do not enjoy the kind of infrastructure that first-world countries have. And while this presents another opportunity for investments, the deficiencies also often lead to delays in development and business expansions, not to mention the increased costs.

Four emerging markets to look out for

There are agencies and foreign market analysts that identify emerging markets around the world. One of the most notable is the Morgan Stanley Capital Internation (MSCI), which has a dedicated Emerging Markets Index. The composition of the MSCI Emerging Markets Index has evolved over time, with countries being included or excluded based on a market classification framework that evaluates economic development, market size, liquidity, and accessibility. Here are some of the most viable selections from their list:

Philippines

Touted as one of the fastest-growing emerging economies in the world, with expert forecasts predicting a trillion-dollar economy by 2033, the Philippines is one of the best bets in Southeast Asia for emerging markets. The country is notable for its strong, consistent economic growth, strategic location, varied natural resources, growing consumer market, skilled workforce, attractive investment programs, and stable political environment.

The country saw a 7.6% increase in GDP back in 2022, and most experts agree that it will continue to increase in the neighborhood of 6% in 2023 despite a challenging economic climate in the area. The previous growth was, as some claim, a mere result of a rebound from the COVID-19 pandemic economy, but experts are confident that the momentum will push the Philippines into a brighter development path.

South Korea

Like Japan, South Korea’s transformation from a nation devastated by war to a thriving economy is a model that most emerging markets emulate. Strategic government policies have massively contributed to the country’s average annual GDP growth of 10% from 1926 to 1994. However, the Asian financial crisis identified several underlying economic weaknesses, like high levels of short-term foreign borrowing, resulting in a sharp decline in GDP. Still, South Korea is now a global center for innovation and technology, with well-known companies and brands like Samsung Electronics Co. Ltd., Hyundai Motors Company Limited, Kia Motors Corporation, Hyundai Heavy Industries Company Limited, and POSCO spearheading its economy.

With a projected GDP of $1.72 trillion in 2023, South Korea ranks as the 12th largest economy globally. Furthermore, it is expected that its GDP will reach $2.12 trillion by 2028. South Korea remains highly reliant on exports, solidifying its position as one of the world’s most export-dependent industrialized nations. The country’s continued economic success underscores its resilience and ability to adapt to an ever-evolving global market.

India

India remains a strong contender for emerging markets despite economic uncertainties. The country has consistently shown solid macroeconomic fundamentals, fiscal discipline, attractive saving rates, increasing domestic demand, and political stability. The government remains steadfast in its commitment to augment capital spending, particularly in infrastructure, to stimulate growth and enhance competitiveness. With the expanding middle class and their evolving spending patterns, India’s economy is increasingly driven by domestic consumption.

The nation’s nominal GDP, projected at $3.76 trillion for 2023, is anticipated to reach $5.57 trillion by 2028, positioning India as the world’s third-largest economy, as the International Monetary Fund (IMF) estimates. India currently falls into the lower middle-income category, according to the World Bank. Looking ahead, an EY report predicts that by 2047, the country’s 100th year of independence, India’s economy will soar to a staggering GDP size of $26 trillion, with per capita GDP surpassing $15,000.

Mexico

Mexico is considered an emerging market due to several key factors. First, the country has achieved consistent economic growth, driven by sectors like manufacturing, services, and tourism. Its strategic location has also led to significant trade integration and investment opportunities. Mexico’s extensive network of trade agreements, including the USMCA and other free trade agreements, facilitates access to diverse markets.

The country’s competitive labor force, characterized by a growing young population, attracts foreign investment, particularly in manufacturing-related industries. Furthermore, Mexico’s large domestic market, with a growing middle class and increased consumer purchasing power, creates business opportunities. The implementation of structural reforms and infrastructure development initiatives further supports economic growth. Despite existing challenges, Mexico’s efforts to address them and favorable economic conditions make it an appealing destination for investors seeking emerging market prospects.

Closing thoughts

Emerging markets present an opportunity for investors to get in on the ground floor of an impressive developing economy. However, risks and opportunities go hand in hand, and smart investors should conduct due diligence to weigh the pros and cons of these potential investments.

Archives, Global Trade Daily, News, War

War Divides but also Unites

July 4th, 2022 Peter Frerichs Leave a comment

War has many layers. There is the outermost layer, comprised of both sides’ soldiers and artillery power. Moving inward, there are more stealth components, and once that onion is fully peeled, you get to the financing. Someone has to pay for all that stuff, and in the case of Russia, they rely on gas and oil sales to finance their activities in Ukraine.

The world’s response to the Russian invasion of Ukraine was swift. Major governments and companies sought to cut ties, ending trade and commercial ties with the hopes of imperiling Mr. Putin’s advances. To some extent this worked, although recent developments have shown just how resilient and dogged Russian forces are. At this time last year, China was a major buyer of US natural gas. Fast-forward to today, and that has shifted dramatically. Post-invasion, Europe cut Russian gas imports which provided US gas providers a new clientele base. Simultaneously, China’s energy demands declined due to a slowing economy, but it also found a cheaper gas provider in Russia due to the deep discounts the Kremlin had to offer based on decreasing European demand for Russian gas.

Digging into the numbers it’s been an astonishing turn of events. Between February and April of this year, China’s natural gas imports from the US plummeted by 95% (compared to the same period in 2021). To make up for this, imports of Russian gas grew by roughly 50%. Chinese-Russian relations have a complex history. The two powerhouses share a 2,700-mile land border and have been involved in countless skirmishes both locally but also through proxy wars abroad. Yet, most analysts agree that Russia and China are currently enjoying their best relations since the 1950s.

In 2014 a pipeline was approved linking China with eastern Russian gas fields. Approximately 38 billion cubic meters of gas were slated to be sold annually. It’s a large number, but nothing compared to the 155 billion cubic meters that the European Union purchased from Russia just last year. China will likely learn from Europe’s stumbles not to place all their gas imports in one basket. Major European countries such as Germany were overly reliant on one supplier country (Russia), and that has not turned out well.

The war in Ukraine has undoubtedly moved Russia and China closer. Think tanks around the globe are hashing out whether this is a good thing for global stability. If anything, having Russia supply a larger portfolio of natural gas imports than before while simultaneously receiving US imports from small suppliers is certainly advantageous for China. Producers such as Dallas-based Energy Transfer LP have just inked two Chinese buyers for 3.4 million metric tons per year. This represents 60% of the total natural gas output from Energy Transfer’s Lake Charles, Louisiana project.

If this war has taught us anything it’s that the things all our economies require to function will continue to hold the greatest leverage.

Archives, Global Trade Daily, Imports/Exports

U.S. Biodiesel Market: Price Rally to Continue in 2022, Making Biofuel Uncompetitive

February 23rd, 2022 IndexBox Leave a comment

IndexBox has just published a new report: ‘U.S. – Biodiesel – Market Analysis, Forecast, Size, Trends And Insights‘. Here is a summary of the report’s key findings.

Biodiesel prices in the U.S. soared by 59% y/y last year, making biofuel less competitive compared to fossil fuels. The average FOB price for American biodiesel B100 was $5.58 per gallon in November 2021, while the on-highway average price for conventional diesel was $3.74 per gallon.

Biodiesel prices skyrocketed in the U.S. in 2021, and their growth is to continue this year. According to USDA data, the average spot FOB export price for biodiesel B100 from the plants in Illinois, Indiana and Ohio reached $5.58 per gallon in November 2021, surging by 59% against 2020. The on-highway average price for conventional diesel soared by 41% y/y to $3.64 per gallon, remaining much lower than those of biodiesel.

The rising costs of vegetable raw materials and energy were the key reasons for the biodiesel price increase and will further propel the biofuel prices this year. According to World Bank’s forecast, the price for soybean oil, one of the significant raw inputs for biodiesel production, is set to grow by nearly 4% totalling $1,425 per tonne in 2022. The cost of fossil fuels is also projected to remain at the high level of 2021, which implies increased expenditures for energy in biodiesel manufacturing.

U.S. Biodiesel Exports by Country

Biodiesel exports from the U.S. surged to 476K tonnes in 2020, rising by 25% from the previous year’s figure. In value terms, supplies fell modestly to $381M (IndexBox estimates).

Canada (424K tonnes) was the leading destination for exports from the U.S., with an 89% share of total supplies. Moreover, exports to Canada exceeded the volume sent to the second major destination, Peru (19K tonnes), more than tenfold. The Netherlands (14K tonnes) held the third position in this ranking, with a 2.9% share.

In value terms, Canada ($351M) remains the key foreign market for biodiesel from the U.S., comprising 92% of total exports. The Netherlands ($9.9M) held the second position in the ranking, with a 2.6% share of total supplies. It was followed by Peru, with a 2.3% share.

Source: IndexBox Platform

Archives, Global Trade Daily, Site Selection, Utilities

States That Consume the Most Natural Gas

December 12th, 2021 Commodity.com Leave a comment

As the world navigates the effects of climate change, policymakers are looking for strategies and investments to reduce carbon emissions and slow global warming. Global leaders met in Glasgow earlier this year to negotiate new targets for greenhouse gas reduction and climate change mitigation. In the U.S., investments in clean energy and the electric grid were a major component of the $1.2 trillion infrastructure package that Congress passed and President Joe Biden recently signed into law.

As policymakers work to reduce emissions, natural gas occupies a unique position in the U.S. energy mix. In recent years, widespread adoption of extraction techniques like hydraulic fracturing have made natural gas cheaper to produce. This has made natural gas an economically viable, cleaner-burning alternative to other heavy-emitting fossil fuels like coal. But natural gas does still produce carbon emissions, and as clean energy sources like wind and solar themselves become less expensive, the future of natural gas is uncertain.

Progressive governments with a focus on reducing carbon emissions, like California at the state level and Seattle at the local level, have enacted new building codes to discourage or restrict the use of natural gas in new construction. Simultaneously, states that have benefited from the natural gas boom, like Texas, Oklahoma, and Louisiana, have banned municipalities in their states from enacting similar policies.

For now, the boom in production means that the U.S. is currently a net exporter of natural gas, producing more natural gas than it consumes. Production and consumption closely tracked together up until the mid-1980s, at which point consumption rose above production levels and natural gas imports increased. With the rise of fracking in the early 2000s, this trend began to reverse, and by 2017, natural gas production overtook consumption in the U.S., and the country became a net exporter.

But the greatest production increases have been limited to a handful of states. Texas has been a longtime leader in U.S. energy production due to its plentiful oil and natural gas reserves, and the state currently produces 8,288 trillion BTUs each year. Pennsylvania is a more recent beneficiary of the natural gas boom. Natural gas was difficult to extract in the state until horizontal drilling became common around 2008, but Pennsylvania quickly grew to become the second most productive state for natural gas. Texas, Pennsylvania, and other states that have reaped the economic benefits of expanded natural gas production may be most resistant to any transition away from natural gas as an energy source.

Beyond the interests of states that produce a high volume of natural gas, transitioning away from natural gas will also be difficult for states where natural gas is one of the primary sources of energy for consumers. Some states derive more than half of the energy they consume from natural gas, led by Alaska at 57.6%. These states will require affordable alternative energy sources at a wide scale before a transition will be possible.

The data used in this analysis is from the U.S. Energy Information Administration and the U.S. Census Bureau. To determine the states consuming the most natural gas, researchers at Commodity.com calculated total natural gas consumption per person. Researchers also included statistics on total natural gas consumption, the percentage of total state energy consumption derived from natural gas, and the percentage of total U.S. natural gas consumption accounted for by each state.

Here are the states consuming the most natural gas.

State	Rank	Natural gas consumption (million Btu per person)	Total natural gas consumption (trillion Btu)	Percentage of total state energy consumption	Percentage of all U.S. natural gas consumption
Alaska	1	484.3	354.3	57.6%	1.1%
Louisiana	2	425.9	1,979.8	46.1%	6.2%
Wyoming	3	287.5	166.4	30.8%	0.5%
Oklahoma	4	217.8	861.8	51.4%	2.7%
Mississippi	5	195.0	580.2	53.4%	1.8%
North Dakota	6	189.5	144.4	21.6%	0.4%
Texas	7	164.8	4,779.5	33.6%	14.9%
Alabama	8	152.6	748.1	38.9%	2.3%
New Mexico	9	145.5	305.1	41.5%	0.9%
Indiana	10	138.7	933.9	33.6%	2.9%
Iowa	11	137.0	432.1	26.4%	1.3%
West Virginia	12	132.8	238.0	28.8%	0.7%
Pennsylvania	13	130.6	1,671.3	43.8%	5.2%
Arkansas	14	123.0	371.1	33.9%	1.2%
South Dakota	15	110.1	97.4	24.2%	0.3%
United States	–	98.0	32,169.8	32.1%	N/A

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/natural-gas-consumption/

Archives, Global Trade Daily, News

4 Notable Trends Driving Global Cable Fault Locator Market Expansion

December 3rd, 2021 Global Market Insights Leave a comment

With the rising government emphasis on the upgradation of aging power infrastructure and deployment of secure and efficient cabling systems, the demand for cable fault locators is predicted to grow significantly in the forthcoming years. As per the Council on Foreign Relations, the U.S. government under its USD 2 trillion infrastructure plan, is focusing on the modernization of the region’s electrical grid as well as physical infrastructures, such as airports, railways, and others.

Cable fault locators effectively aid in preventing electrical and fire hazards in workplaces and hence, allowing enterprises to achieve industrial safety standards set by the government. Industries and enterprises spend extensively on acquiring advanced systems to pre-locate any hazardous situations and maintain the safety of workers and equipment.

Global cable fault locator market size is slated to exceed USD 1 billion by 2027, cites a recent report by Global Market Insights, Inc.

Described below are some trending factors propelling the adoption of cable fault locators.

Strong demand for cable route tracer

A cable route tracer is extremely beneficial in locating the actual route and depth of buried cables. This leads to extensive utilization of the device across several construction projects for precise mapping and recording of the underground utility network.

With surging underground construction activities, along with the growing need to trace, locate, and measure buried power cable networks, the adoption of cable route tracer is expected to spur significantly in the upcoming years. Driven by this, the industry share from cable route tracer is predicted to expand at 10% CAGR through 2027.

Preference for handheld electric cable fault locator

The handheld cable fault locator is powered by advanced signal transmission technologies that enable it to locate water ingress, short circuits, splices, and other hindrances. This device is highly preferred over its portable counterpart owing to its compactness and ability to set a tone for wire tracing and identification. Largely, the advantage of handheld cable fault locator to be carried for long distances to easily identify faults in metallic cable networks drives its demand in sectors like telecom, power & energy, and mining, among others.

Rising penetration across the petroleum sector

The petroleum industry extensively deploys electric equipment and power systems for its various processes, such as distillation, conversion, cracking, and treating. These systems are predominantly backed by the underground cable infrastructure, which requires advanced technology to locate any fault and maintain the non-stop refining operations. This makes the underground cable fault locator widely adopted in the petroleum industry. Owing to this, cable fault locator industry share from the petroleum sector is estimated to grow at 5% CAGR up to 2027.

The flourishing telecom sector in Europe

Europe cable fault locator industry revenue share is slated to value at USD 300 million by 2027. This is owing to increasing government expenditure and public-private partnerships to upgrade the telecom sector in the region. Moreover, there are growing initiatives by regional electronics companies to develop novel products.

Citing an instance, in August 2020, Mitsubishi Electric introduced its LV100-type T-series IGBT module for industrial applications. Its integration with electric power systems reduces electricity consumption and the size of renewable energy power grids. This apart, growing emphasis toward the development of physical infrastructure in the region would support the cable fault locator business in Europe.

With the rapid adoption of industry 4.0, digital transformation, and the emergence of many novel technologies, such as 5G networks, IoT, and others, the growing deployment of electric wire and systems, is likely to boost global cable fault locator industry forecast.

Source: Global Market Insights, Inc.

Archives, Global Trade Daily, Special Reports

Accepting Gas as Sustainable Will Hurt Korea’s Green Finance Credentials

November 5th, 2021 Christina Ng Leave a comment

After six months of resisting industry calls to add liquefied natural gas (LNG) to its green taxonomy, the South Korean government this week finally succumbed to gas lobbyists.

This is surprising as, only 2 weeks ago, President Moon Jae-in made a well-received, new emissions pledge—cutting the country’s greenhouse gas emissions to 40% by 2030.

The obvious dichotomy here is that recognizing gas and LNG as an environmentally sustainable “transition” fuel will likely lock South Korea into a high-emitting future, which directly contradicts the policy and market incentives created by President Moon’s new emissions reduction targets.

Released last week, the draft green taxonomy, known locally as the K-Taxonomy, prescribes an end-use emission technical screening criteria of 320g of carbon dioxide (CO2) per kilowatt-hour (kWh). A life-cycle emission standard is also expected, but it will only apply from 2025.

This means that new unabated LNG-power projects, of which around 10 gigawatts are expected to flood South Korea’s energy market by 2025, would qualify for green bond and loan financing if the draft K-Taxonomy is finalized without changes.

Emissions-wary ESG investors should be on alert

South Korean green debt amounted to US$42.8 billion on 30 September 2021, according to Bloomberg New Energy Finance. A third of it, around US$14.22 billion, funded power and energy companies.

If the current draft of the K-Taxonomy proceeds as is, ESG investors may find themselves inadvertently backing gas.

Gas is a fossil fuel that contributes carbon and methane to the atmosphere through its combustion, with lifecycle emissions that are dangerous and significant. Moreover, methane from gas has a warming effect up to 80 or 90 times more powerful than carbon over a 20-year period, making gas worse for the climate than coal in the short term.

The tension around the limited role for gas in energy transition is evident in the taxonomy work playing out in all global markets.

After much controversy, the European Union (EU) accepted gas-powered generation as a ‘transitional’ asset class under its Sustainable Finance Taxonomy, provided that a project’s lifecycle carbon emissions are limited to 100g CO2 per kWh.

At this specification, gas-powered projects in the EU will likely require the use of carbon capture technology (CCS), which is yet to be proven economically or technically viable at scale anywhere in the world. Under these conditions, gas is unlikely to be funded in the short to medium, or even the long term, under the EU’s taxonomy.

The K-Taxonomy is expected to be finalized by the end of 2021, and with its current draft not consistent with the gold-standard EU Taxonomy, investors are right to be wary.

The Moon administration risks missing out on new pools of global capital

With the inclusion of gas in the K-Taxonomy, Korean policymakers have effectively signaled they aren’t up to the task of leading market development with a green taxonomy.

Instead, they are showing a preference for remaining in lock-step with emerging market Southeast Asian counterparts who have flagged their intention to recognize gas-powered generation as “green”.

This puts South Korea at risk of deterring serious ESG investors who typically prefer “dark green” assets—solar, wind and geothermal for example.

The United Kingdom’s (UK) inaugural sovereign green bond issued in September 2021 demonstrated that risk when it provided a mixed portfolio of green and controversial assets like “blue hydrogen”, which uses methane gas in its production. Several leading debt investors immediately expressed criticism over the sovereign’s opportunistic ‘green’ bond and avoided it entirely.

China is working with the EU to harmonize their respective taxonomies

By contrast, China—the largest green debt market in the region—took a different and much more strategic approach, learning from market trends and adapting.

Its first green taxonomy in 2015 categorized “clean coal” as a green project that qualified for the issuance of green bonds, drawing widespread criticism, particularly from foreign investors.

Recognizing the significance of a truly green taxonomy, in mid-2021, China removed fossil fuel-related projects and the new Green Bond Endorsed Project Catalogue—its equivalent green taxonomy—now excludes gas, LNG and coal-fired power activities.

Like South Korea, China relies on burning fossil fuels to power the country. However, President Xi Jinping’s pledge to accelerate the country’s transformation to a green and low carbon economy, and to achieve carbon neutrality before 2060, has opened the door to a much more strategic view on how China’s green finance market should develop, and which technologies should be incentivized.

China is also working with the EU to harmonize their respective taxonomies by the end of 2021. This is a positive initiative between jurisdictions in response to investor requests for a common standard on green or sustainable projects. The move also indicates that the Asian giant is ready to compete for global green capital.

China understands that ESG-focussed investors have become more forensic in their research and decision-making on what the different taxonomies recognize.

More notably, China’s mindset for justifying green energy activities appears to be unfazed, at least for now, by its need to finance new coal and gas-related projects, said to be required to see them through the energy transition phase—reasoning that its Asian counterparts, including South Korea, have defended and used to classify their own gas-powered projects as green.

But fossil fuel projects have a long history of being successfully financed. The existence of a green or sustainable finance taxonomy does not prevent assets or projects that the taxonomy excludes from being funded through conventional sources of finance. As in the past, fossil fuel power projects will continue to raise funds through traditional non-labeled debt market instruments.

Investors want green taxonomies

Meanwhile, investors around the world are urging governments to step up and commit to clear, strong and investable policies that will unlock the capital needed to transition to a net-zero economy.

Despite its now hollow new emissions pledge, the Moon administration appears unprepared to rise to the occasion. It risks missing out on new pools of global capital if it does not get the policy settings right, and instead chooses to pander to the fossil fuel industry.

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Christina Ng is a Research and Stakeholder Engagement Leader – Fixed Income, Institute for Energy Economics and Financial Analysis (IEEFA).

Archives, Global Trade Daily, State Spotlight, Utilities

U.S. States Most Dependent on Fossil Fuels

August 9th, 2021 Commodity.com Leave a comment

With the effects of global climate change becoming increasingly apparent, policymakers across the U.S. are moving to reduce the nation’s reliance on carbon-based fossil fuels.

At the beginning of his term, President Joe Biden rejoined the Paris Climate Accord, and in April, the Biden Administration announced aggressive new greenhouse gas reduction goals, including an overall aim to reduce U.S. greenhouse gas pollution to half of 2005 levels by 2030. Meanwhile, nearly 40 states have adopted renewable portfolio standards to facilitate a transition away from fossil fuels for energy production to renewables.

Despite these efforts, however, fossil fuel consumption remains deeply entrenched in the U.S. economy, and it could take years to transition away from fossil fuels as the country’s primary energy source.

Petroleum remains the leading source of energy in the U.S., accounting for approximately one-third of energy consumed. Energy consumption from natural gas expanded over the last decade as the rise of hydraulic fracturing made it less costly to extract. Most of that growth has come at the expense of coal, which represented 22.7% of the energy consumed in 2008 but just 13.1% a decade later. And while nuclear has held steady and renewables have continued to grow with improved technology and greater scale, fossil fuels still represent more than 80% of total energy consumption in the U.S. each year.

One example of the difficulties of shifting away from fossil fuels is consumers’ relationship to gasoline and car travel. Recently, gasoline prices have been on the rise again: prices dropped sharply in 2020, as many travelers and commuters stayed off the roads during the COVID-19 pandemic. Now, with many public health restrictions being relaxed as cases decline and more people get vaccinated, prices have topped $3 per gallon nationally for the first time since 2014. But despite what the laws of supply and demand might suggest, rising prices do not strongly affect driver behavior: research shows they tend to purchase the same amount of gasoline regardless of how much it costs. Instead, breaking drivers’ reliance on fossil fuels will depend on auto manufacturers providing more hybrid and electric options, whether by choice or by policy, like California’s zero-emission vehicle regulations.

State-level data reinforces that there is a long way to go before the transition away from fossil fuels is complete. Every single U.S. state derives at least 50% of its energy from fossil fuels, and a total of nine states derive more than 90% of their energy from fossil fuels. Among the most dependent are small states like Delaware and Rhode Island, which import most of their energy from elsewhere, and states with rich stores of fossil fuels, like Alaska, West Virginia, and Kentucky. At the other end of the spectrum are states like Washington, Oregon, and New Hampshire, which rely more on nuclear and renewables like hydroelectric power and derive less than 60% of their energy from fossil fuels.

To find the states most dependent on fossil fuels, researchers at Commodity.com used data from the U.S. Energy Information Administration to calculate the percentage of total primary energy consumption from coal, natural gas, and petroleum in 2018 (the most recent available data). Researchers also calculated the percentage of total primary energy consumption derived from renewable sources, as well as the largest fossil fuel source.

Here are the states most dependent on fossil fuels.

State	Rank	Percentage of energy derived from fossil fuels	Percentage of energy derived from renewables	Total energy consumed from fossil fuels (trillion BTU)	Total energy consumed from renewables (trillion BTU)	Largest fossil fuel source
Delaware	1	96.4%	3.6%	213.1	8.0	Petroleum
Alaska	2	95.9%	4.1%	584.8	25.0	Natural Gas
West Virginia	3	95.4%	4.6%	1,103.3	53.7	Coal
Rhode Island	4	95.0%	5.0%	189.1	10.0	Natural Gas
Kentucky	5	94.1%	5.9%	1,616.5	102.1	Coal
Wyoming	6	93.5%	6.5%	793.2	54.9	Coal
Indiana	7	93.4%	6.6%	2,617.2	185.9	Coal
Utah	8	93.1%	6.9%	830.0	61.3	Petroleum
Louisiana	9	92.1%	3.7%	3,895.5	155.0	Petroleum
Texas	10	89.9%	7.1%	12,752.3	1,009.0	Petroleum
Ohio	11	89.7%	4.7%	3,040.2	158.6	Natural Gas
Hawaii	12	89.4%	10.6%	261.8	31.1	Petroleum
Colorado	13	88.8%	11.2%	1,305.1	164.6	Natural Gas
Mississippi	14	88.2%	6.1%	1,116.6	76.8	Natural Gas
Missouri	15	88.0%	5.9%	1,608.7	108.5	Coal
United States	–	80.5%	11.2%	81,238.0	11,281.6	Petroleum

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/states-fossil-fuels/

Archives, Global Trade Daily, Utilities

Best Renewable Energy Stocks in 2021: A Survey by Paul Harmaan

June 20th, 2021 Maria Jones Leave a comment

The global economy nowadays is pivoting towards renewable energy, leaving fossil fuels behind. According to Paul Haarman, the economy is evolving and finding ways to adapt to modern technology, changing the whole world and making it more efficient. The various green energy sources that it was planning to adopt vary from solar energy to geothermal energy, from wind to biomass, and many more.

For the economy to convert to clean renewable, there will be a need for a strong financial back which is possible only when we use the economic prowess of renewable energy, and this is only possible through their stocks. So let us go in-depth to understand a few of those energy stocks.

Stocks for Top Renewable Energy

According to Paul Harmaan, various energy stocks like biomass, wind, solar, geothermal, etc., are present, which could support fast-forwarding the clean energy conversion for the economy. First, however, we will look for two of the best stocks where you should invest your money to get the best returns

First Solar

First Solar is one of the top leaders responsible for developing efficient thin-film solar panels. The company produces low-cost electricity per watt compared to the traditional silicon-based panels. Their solar panels are efficient mainly because they work well in extreme hotness and humidity conditions and work efficiently in shedding snow and debris quickly. These few features make them the most ideally used solar panels for utility-scale applications.

Moreover, the panel manufacturing sector of the first solar acts like a strong balance sheet responsible for making First Solar the number one choice and making it stand out.

NextEra Energy

NextEra Energy is responsible for two businesses which it runs efficiently. One business shows the efficient use of the competitive energy segment and is responsible for generating electricity. Besides this, it also transports natural gas under fix-free agreements that are beneficial for the long run. At the same time, the other one revolves around the rate-regulated electric utilities that NextEra Energy takes responsibility for and distributes that power to various businesses and consumers.

One of the highest credit ratings with the support of the largest electric utilities makes the NextEra Energy-efficient in working its stable operations responsibly. The two efficient businesses conducted by NextEra Energy are solely credited, and why shouldn’t they? The combined powers of both businesses help produce extra units of energy from natural resources like that of the wind and the sun, which any other company in the world is incapable of, making it a unique company.

Future of the Top Renewable Energy stocks

The effective and efficient shift by the world economy from fossil fuels to renewable energy sources or clean energy sources has created a massive opportunity for a variety of investors to look into the profits. At the same time, they understand the concept of how these sources can change the world and turn it into a better place. Suppose there is a need to find the future of these top renewable energy stocks. In that case, the most important thing to look for is the balance sheet of the company and the solar energy-focused growth profile, as these two main factors are highly responsible for generating higher returns in the future both for the world and the investors.