African renewable installations receive financing
Investors are tapping into the potential for installing renewable energy capacity in African countries, with a slew of projects lined up for 2021.
In sub-Saharan Africa, fossil fuel sources dominate electricity supply. But with the overall cost of wind and solar installations having fallen sharply on lower raw material prices, governments and utilities are turning to renewables to increase electricity access.
Nigeria-based Daystar Power, which supplies solar energy to businesses in west Africa, has raised $38mn in funding to expand its operations in Nigeria and Ghana and increase its presence in the Ivory Coast, Senegal and Togo. The company plans to expand its installed capacity to over 100MW from 23MW. Investors include STOA, a French impact infrastructure fund, which aims to invest more than 50pc of its capital in Africa and in renewable energies. The financing round comes after the company raised $10mn in March 2019.
Nigerian solar power provider Starsight has received a second $10mn financing injection from Scandinavian investment funds Finnfund and Norfund to supply solar energy to businesses in Nigeria and Ghana. Since the first round in June 2019, Starsight has expanded its portfolio to over 500 sites, with 36MW of installed generation capacity and 28MWh of storage capacity.
Wind power
Spain-headquartered wind turbine supplier Siemens Gamesa is expanding in Africa with its first project in Ethiopia.
The company has signed a deal to supply 29 wind turbines to state-owned Ethiopian Electric Power for its 100MW Assela wind farm, which is expected to be commissioned by the start of 2023.
Ethiopia has set an ambitious target to meet 100pc of its domestic energy demand with renewables by 2030. The country has the potential to expand its installed wind capacity to 10GW from 324MW, according to the African Development Bank (ADB).
The ADB is working with industry association Irena on joint initiatives that support investments in low-carbon energy projects across Africa. A recent Irena report shows that the fall in the price of solar panels and wind turbines has brought the weighted average levelised cost of electricity in sub-Saharan Africa to 30pc below average electricity prices.
Driving demand
The potential to reduce electricity prices in developing economies is expected to drive demand for renewable energy equipment in a region where two-thirds of the population lack electricity access.
Total renewable generation in the region, at an estimated 975TWh, represents just 1pc of the overall potential for renewable capacity, Irena said.
Italian renewable firm Enel Green Power (EGP) has signed a joint venture partnership with a Qatar Investment Authority (QIA) subsidiary to build and operating renewable plants. QIA will acquire 50pc of EGP's stake in around 800MW of projects in operation and under construction in South Africa and Zambia. Four wind projects in South Africa with a combined capacity of 587MW are expected to start operating in 2021.
UK-based gold mining firm Pan African Resources has signed an engineering, procurement and construction agreement with renewable energy firm Juwi South Africa to install a 9.975MW solar photovoltaic plant at its Evander Mines site. Construction will begin in the first quarter of 2021, with first power expected in the third quarter. Juwi has built six utility-scale solar plants totalling 207MW of capacity under the South African government's renewable energy independent power producers' programme.
UK-based ARC Power, which opened its first solar business park in Rwanda in November, has announced plans to open another 20 by the end of 2021 and 45 over the long term.
In North Africa, the Moroccan agency for solar energy has issued a tender for the design, financing, and construction of 400MW of solar capacity across six sites in the second phase of its Noor PV project. The 400MW first phase was tendered last year. The deadline for the new tender is 31 January.
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British Steel Scunthorpe rolling may stop if BF closes
British Steel Scunthorpe rolling may stop if BF closes
London, 13 September (Argus) — British Steel's Scunthorpe rolling mills may not be able to continue operating if the last blast furnace (BF) closes. The rolling lines are powered by gas captured from the BF process. Recent furnace stability problems and the subsequent lack of gas mean the company has been intermittently operating some lines. It is currently running one BF, which it has fed with stocked raw materials. "If they shut the last blast furnace and import semis they would have to put some liquid gas solution in place and modify the reheat furnaces to be able to run on this different gas supply," a source said. The move to one furnace and reduction in gas supply has already affected availability of some products, and service centres expect tight universal channel supply in the coming months as the company opts for heavier, less lossmaking products. Production at Skinningrove and Teesside could continue, as both sites already have gas supply. But rail production at Scunthorpe would cease without any investment in gas supply. Rail is one of the more profitable businesses in the group, and also important for the wider UK as it is a major supplier to Network Rail. Some market participants are gearing up for Jingye, the Chinese owner of British Steel, to walk away. Executives from British Steel, and local politicians, are visiting China for discussions with Jingye, sources suggest. A spokesperson for British Steel refused to comment on "hypotheticals". "We are in ongoing discussions with the government about our decarbonisation plans and the future operations of our UK business. While progress continues, no final decisions have been made," the spokesperson said. A decision on the BFs could be made in the next few weeks, with them both potentially closing before Christmas, sources suggest. Speaking in Parliament earlier this week, business secretary Jonathan Reynolds said he was "heavily constrained" in his options for British Steel and operating on a shorter time window than the previous administration. The Chinese market has weakened considerably in recent months, which will have affected Jingye financially, along with all other mills, sources said. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Tokyo silent on Nippon-US Steel deal to avoid meddling
Tokyo silent on Nippon-US Steel deal to avoid meddling
Tokyo, 13 September (Argus) — The Japanese government is withholding any comment on the politically fraught acquisition of US Steel by Japan's Nippon Steel because it will create meddling, the country's trade and industry (Meti) minister said. Since Nippon Steel announced its $15bn deal to acquire US Steel in December 2023, Tokyo has remained silent despite it evoking bitter political and industrial debate. This is because any governmental comment will cause "interference in the internal affairs", Meti minister Ken Saito said on 13 September. The acquisition is facing stiff resistance from US vice-president and Democratic presidential nominee Kamala Harris who said on 2 September in Pittsburgh that "US Steel should remain US-owned and US-operated".Republican presidential nominee Donald Trump criticised the deal in February, vowing to block the sale . Criticism from both candidates is seen as an attempt to gain the support of US labour unions for their presidential election ambitions. The deal is currently under review by the Committee on Foreign Investment in the United States (CFIUS), with US President Biden possibly considering vetoing the deal. The Japanese business federation Keidanren responded with an open letter to US treasury secretary Janet Yellen, who chairs the CFIUS, expressing concern about "political pressure being brought to bear" on the committee. "We fear that the CFIUS process is being used to further political agendas that are outside the committee's purview and putting the US economy and workers at risk", the letter said. "It is critical that CFIUS remain solely focused on defending US national security while championing economic openness. That was the standard set when Congress codified CFIUS in the 1980s". Meti minister Saito did not make any further direct comment on the deal, only to reiterate that each and every transaction by US and Japanese companies are the building blocks for astrong and resilient bilateral economy. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Padnos acquires three Midwest metal recyclers
Padnos acquires three Midwest metal recyclers
Pittsburgh, 12 September (Argus) — Metal recycler Padnos has acquired three businesses in Michigan and Indiana, the company said Wednesday. The Holland, Michigan-based company purchased the Sam Winer and Company scrap yard in Elkhart, Indiana, Howe Auto Sales in Bay City, Michigan, and Grandpa's Garage in Traverse City, Michigan. Grandpa's Garage is located next door to Padnos' Traverse City facility, allowing the company to expand that location. Financial details of the transactions were not disclosed. Padnos now operates 30 recycling facilities in Michigan and Indiana. By James Marshall Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Mexico’s July industrial output growth slows to 0.2pc
Mexico’s July industrial output growth slows to 0.2pc
Houston, 12 September (Argus) — Mexico's industrial production growth slowed to just 0.2pc in July from the previous month, statistics agency Inegi reported Tuesday, supported by rebounds in construction and non-oil mining. The monthly gain in industrial output, following a 0.4pc increase in June and a 0.7pc gain in May, marked a fifth month of expansion in the seven months through July. Seasonally adjusted, construction led major components in July, expanding by 2.6pc over June, with mining expanding by 1.4pc over the previous month. Oil and gas extraction, however, was down by 0.2pc from the previous month, after 0.5pc growth was reported in June. The segment has now shown contraction in 10 of the last 12 months. Extraction of other minerals, however, increased by 0.4pc over the prior month, after a 4.6pc decline reported in June. Mining-related services also rebounded, up 14.8pc in July after a 9.7pc contraction in June. Manufacturing reversed course in July, registering a 0.8pc contraction from the previous month after posting a 2pc expansion in June. This is largely the result of the auto manufacturing segment posting a monthly contraction of 3.1pc in July after a 5.8pc expansion in June. The auto segment comprises 24pc of the manufacturing component in Inegi's monthly industrial activity report (Imai), and manufacturing accounts for 63pc of nationwide industrial activity. Auto output, however, should rebound in August with INEGI reporting Monday that light vehicle production in August was up almost 20pc from July. Meanwhile, the utilities component — tracking provision of electric power, water and natural gas — contracted for a second consecutive month, down 0.9pc in July after a 0.2pc contraction recorded in June. Manufacture of products derived from oil or coal expanded for a second month, up 3pc in July on a monthly basis after a 10.6pc jump in June. Looking ahead, Mexican bank Banorte said, "We believe that the bias for industry in the remainder of the year will be negative, with headwinds for construction and manufacturing." Some drivers, it said, include: "weakness in US industry; lower base metal prices due to a global economic slowdown, especially in China; the completion of local infrastructure works; and some circumstantial factors that have added volatility within different sectors." Nevertheless, Banorte's industrial outlook for 2025 and the medium-term remains positive as the major infrastructure projects for the incoming administration get underway. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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