Norway's Prime Minister says Europe shouldn't cap gas prices
The Norwegian prime minister said that Europe should not cap the price of natural gas, even though costs are rising due to the conflict in the Middle East. The benchmark TTF front-month gas contract on the continent has increased by around 60% since the U.S. and Israeli war against Iran, as well as the attacks of?Tehran on ships in Strait of Hormuz. On Wednesday, Ursula von der Leyen, President of the European Commission, said that the European Union is considering measures to reduce energy prices. This includes setting a cap on gas prices.
EU considers gas price cap as a way to control rising energy costs
The European Union is considering measures to?reduce energy prices. This includes capping gas price, said European Commission President Ursula von der Leyen on Wednesday. Before the Iran War caused oil and gas to surge, Brussels was drafting proposals for industries who claim that high energy costs make it impossible to compete with their rivals in China or the United States. The EU's electric system is set up so that the price of electricity is determined by the last power station needed to meet the total demand. Gas plants are often the last power plant needed to meet total demand.
Hungary Central Bank to use reserves to fund energy imports
In a Tuesday statement, the central bank of Hungary said it would?provide foreign exchange liquidity from its reserves in excess of 60 billion euros to cover increased foreign currency imports. Central Europe's import-dependent financial markets were shaken by the U.S. and Israeli war against Iran. This increased energy prices and impacted regional currencies and bonds, before Tuesday's rally in hopes of deescalation. Hungary continues to get 75% of its natural gas from Russia and almost all of its oil requirements.
Document shows EU is looking to reduce energy bills for industry
A document obtained by revealed that the 'European Union' is looking at energy?taxes and network charges, as well as?carbon _costs, to see if they can be used in short-term solutions for industries affected by high energy costs. Brussels is seeking quick fixes, after companies said they could not compete with their rivals from China and the U.S. – even before the recent surge in gas and oil prices triggered by the U.S. and Israeli war against Iran. Ursula von der Leyen, the President of the European Commission has promised to give options to EU leaders for a 19th March summit.
IEA chief warns of return to Russian gas despite global LNG boom
Fatih Birol, the Executive Director of International Energy Agency (IEA), said that looking to Russia for gas supplies would be economically and politically wrong. This is because LNG will soon become a global source. Birol said to?reporters that the current Middle East crisis has led some to question whether or not to return to Russia. This was after a meeting between European Commission President Ursula von der Leyen and EU commissioners regarding global energy markets. The EU faces increasing pressure from governments and industries to intervene to reduce high energy prices.
Executives warn that Europe could lose its nascent green hydrogen industry to China
The fledgling green hydrogen industry in Europe is calling on the EU to introduce "made-in-Europe" requirements for spending public money on the sector. They warn that without the support needed to scale up quickly, the domestic producers will be overtaken by their Chinese competitors. In 2025, the industry suffered a severe blow as many projects were cancelled or postponed due to high energy prices in Europe and the cheaper hydrogen derived from fossil fuels. Brussels hopes that green hydrogen will help chemical, steel and fertiliser manufacturers reduce emissions.
EU considers a revamp of the industry's free allowances in Carbon Market Reform
As part of a redesign of its carbon market, the European Union may overhaul its system of free "CO2 permits" for industries. Brussels is redesigning its Emissions Trading System (ETS), the EU's most important policy on climate change, which requires power plants and industry to purchase CO2 permits when polluting. Brussels, according to a presentation made by the European Commission internally, is looking at three options for revamping the current ETS that gives?industries free CO2 permits. This reduces the overall cost of pollution and allows industries to compete with foreign firms that don't pay for their emissions.
Auditors say EU efforts to diversify imports of critical raw materials have failed so far
The European Court of Auditors stated on Monday that the EU's efforts in diversifying its imports of metals, minerals and other critical materials for?technology, defence and energy transition have "yet not produced tangible results". The EU's Critical Raw Materials Act 2024 sets out a plan for boosting?local?production of 34 strategically important materials in order to reduce reliance on imported products from a small number of countries, primarily China, Turkey, and Chile. List includes lithium, antimony and tungsten. Copper and rare earths are also needed for products like semiconductors, artillery shells, and wind turbines.
South Africa relaxes antitrust rules for companies facing high electricity costs
South Africa has loosened its antitrust regulations to allow firms battling high energy costs to build energy infrastructure together and negotiate contracts collectively. In a government announcement seen by on Tuesday, South Africa's Trade Minister Parks Tau stated that the new measure was meant to help?distressed industry. The Minerals Council of South Africa says that electricity costs have increased by over 900% in the last five years. High power prices are a major problem for smelters and steelmakers, especially in Africa's most developed economy. They also face competition from China, which has lower electricity costs.
Sonnedix secures contracts in Italy for 805 MW solar power
Sonnedix, a renewable energy company backed by JP Morgan and sponsored by three Italian government schemes, has been awarded contracts to install 805 megawatts in solar capacity under three different government schemes. Solar power, considered easier to develop than wind projects because of Italy's geographic characteristics, is playing a key role in the energy transformation in Italy. The country has become one of Europe's leading producers of clean energy. Sonnedix already has more than 900 MW in Italy. The new…
Rio Tinto warns of an uncertain future for Australia's largest aluminum smelter
Rio Tinto warned that Australia's biggest aluminium smelter Tomago may have to close down if it cannot source power at rates commercially viable beyond 2028, when its current electricity deal expires. Tomago Aluminium, the largest power user in New South Wales, was built to take advantage Australia's abundant and cheap coal. Rio Tinto stated that power accounts for more than 40% in Tomago’s operating costs. Both coal-fired options and renewables are expected to increase sharply once the existing contract expires. This could threaten Tomago’s commercial future.
Germany launches a 6 billion euro industrial decarbonisation programme, including CCS technology
Katherina Reiche, German Economy Minister, announced a funding initiative of 6 billion euros ($7 billion), aimed at decarbonising industrial processes. This is the first time that CCS technology has been incorporated into climate protection contracts in the country. The program targets sectors that are energy-intensive, such as steel, glass, chemicals, and cement, while Germany tries to meet its climate targets despite concerns about industrial competitiveness. The deadline for registering projects to be included in the next year's auction is December 1.
Russell: The Big Three Asian thermal coal producers look healthy while others are pale
Asia dominates global thermal coal markets, but the future looks increasingly divided between the robust domestic markets of the three heavyweights China, India and Indonesia as well as a slowly fading seaborne industry. In recent years, the three countries have increased their coal production rapidly to meet the rising demand for energy. Outside of these three nations, Australia, Russia, United States, and South Africa are the main exporters of seaborne products. While the domestic thermal coal market in China, India, and Indonesia will likely grow in the coming decades, this cannot be said of the seaborne market.
Russell: The Big Three Asian thermal coal producers look healthy while others are pale
Asia dominates global thermal coal markets, but the future looks increasingly divided between the robust domestic markets of the three heavyweights China, India and Indonesia as well as a slowly fading seaborne industry. In recent years, the three countries have increased their coal production rapidly to meet the rising demand for energy. Outside of these three nations, Australia, Russia, United States, and South Africa are the main exporters of seaborne products. While the domestic thermal coal market in China, India, and Indonesia will likely grow in the coming decades, this cannot be said of the seaborne market.
UK-based Balfour Beatty awarded $1.14 billion contract to build new gas power plants
Technip Energies, a French energy company, awarded Balfour Beatty of Britain a contract worth 833 million pounds ($1.14 billion). The project involves the construction of a UK gas-fired power plant. Balfour Beatty announced that construction on the plant, where 1,500 workers will be employed, will begin later this year and will end in 2028. The British Government is pushing clean energy initiatives in order to reduce energy bills and decrease reliance on fossil fuels imported. A strategy for the industry, made public this week, stated that the country would give energy-intensive companies exemptions and reduce their high energy costs.
Draft document shows that heavy industries will get a price reduction on electricity under the new EU regulations
A draft of the new EU rules on state aid, which are due to be published by the European Commission on Wednesday, revealed that heavy industries would receive a temporary reduction in electricity prices. This is despite criticisms from companies about high energy costs and restrictive green regulations. Eurometaux, a group of metals industry professionals, sent a warning to Ursula von der Leyen at the beginning of this month. The letter warned that the sector was losing its competitiveness in comparison with U.S. competitors and Chinese counterparts.
Glencore asks government for help after claiming that the copper smelter in Australia is unviable
Glencore said that its Mount Isa copper-smelter is unviable, and it's waiting for the response to its requests from the state and federal governments in order to keep this facility open despite tough global conditions. The UK-listed company has been alarming local media regarding its Mount Isa Smelting Business in Queensland State as its mining operations will close next month. The company will have to purchase copper concentrates to process once global processing costs are at historic lows due to excess global smelting capacities.
Metal industry group claims that new EU State Aid rules do not help
A metals industry group wrote a letter to the European Commission on Friday, saying that plans to overhaul state aid rules ignore heavy industry, which is critical for processing energy transition metals. They fail to mitigate energy costs, while green rules may penalise them. After a public hearing on its proposal from February, the Commission will announce new rules for state aid on 26 June. The group sent a letter to the Commission president Ursula von der Leyen, and the commissioners responsible for climate, energy, industry and competition this week.
Financial Times - 2 June
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy. BP has received early interest in its sale of Castrol, the lubricants division, from both private equity firms and other industry players, including China’s state-owned Citic. However, some bidders are willing to accept offers lower than the $8 billion-plus expected range. AstraZeneca announced positive results from a trial for a drug to treat breast cancer that stops mutating tumors before they grow. The company hopes that this will be part of a portfolio that propels it to the top of oncology.
Industry warns that high energy costs are a threat to the future of UK manufacturing
Make UK, an industry group, said that Britain must reduce its industrial energy bills which are among the highest in advanced economies to achieve its goal of a healthy manufacturing sector. The government of Keir starmer is developing an industrial strategy that will put British manufacturing, which has been hit by Brexit and soaring energy prices as well as global trade wars, on a firm footing in the coming years. The manufacturing association Make UK has called for the cancellation of climate levies on industrial energy prices and the adoption of a fixed price.