Montel Magazine 3 2021 - Cold comfort Vol 22 No. 3, 2021 - Page 13

Market talk

scale 13-year highs approaching USD 180 / t in Asia and USD 170 / t in Europe . Energyscan highlighted a combination of supply and demand pressures heading into the peak consumption season that risked extending this year ’ s rally in both basins . Inventories in key regions including China , India , Europe and the US were at multi-year lows on the back of a strong recovery in power demand . Demand has surged thanks to Asian economic recovery , as well as record high costs for gas and carbon in Europe that had priced more coal back into power generation , said Energyscan . Its analysts noted a 41 % year-on-year rise in coal-fired generation so far in 2021 across France , Germany , the Netherlands , Italy , Spain and the UK . NW
EU watchdog probes possible CO2 market abuse EU financial watchdog Esma is considering a complaint of market abuse in Europe ’ s ETS that linked a surge in CO2 prices this year to gaming among financial investors , Montel has learned . The complaint
, contained in a letter dated 10 August to the European Securities and Markets Authority , centred around an absence of constraints – or position limits – on large financial speculators . In its letter , German energy discounter Stromio alleged an increasing number of such market participants – now more than 200 – appeared to be using the leverage available via short-term options contracts to drive up carbon prices , manipulating the value of their portfolios higher . European carbon prices have almost tripled since November . NW
Spain power to remain above EUR 100 to next year Spanish power prices are likely to average above EUR 100 / MWh until early next year on record gas and carbon prices , according to several experts . Prices above EUR 100- 110 / MWh in Q4 “ seems almost certain ” unless carbon fundamentals and gas buying pressure subside , one Spanish trader agreed . Domestic spot power prices had more than doubled since the start of the year as a rebound in economic
growth in the wake of the coronavirus pandemic combined with rising carbon and gas costs , said market participants . With high prices in mind , the government will extend the suspension of a controversial 7 % tax levied on power generation to the end of the year in a bid to lower power prices . BB , PB
Italy ’ s amended green energy law still falls short Parliamentary amendments to a set of rules by the Italian government to boost green energy could still fall short of targets , industry experts have warned . These rules , which aim to curb lengthy administrative procedures in clean energy project approvals , had been debated and amended in parliament in July . “ Our country risks continuing to have long authorisations times and high bureaucratic costs ,” said Agostino Re Rebaudengo , chairman of Italy ’ s largest electricity industry association Elettricita Futura . The country needs to boost renewable capacity by 7 GW per year
by 2030 to meet its green targets from the less than 1 GW built in 2020 . ET
Ineos in deal to create UK ’ s 1st CCS system UK petrochemicals company Ineos and sister firm Petroineos have signed a memorandum of understanding with the Acorn carbon capture and storage ( CCS ) project to develop the UK ’ s first CCS system , the companies said . The system would lead to the abatement of 1m tonnes of carbon emissions a year by 2027 , they added in a statement . It would be developed at Grangemouth , one of Scotland ’ s largest manufacturing sites located on the east coast and owned and operated by Ineos and Petroineos . The Acorn CCS site had a capacity of 200,000 tonnes a year and was being developed by the Act Acorn consortium led by climate specialist firm Pale Blue Dot Energy . The government has committed to establishing CCS in two industrial clusters by the mid-2020s , increasing to four by 2030 . KP
Montel Magazine 3 – 2021
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