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Standardisation, better finance needed for new nuclear

  • Spanish Market: Electricity, Emissions
  • 23/01/25

Increasing financing flows and standardising new reactors will be essential to reaching the goal of tripling nuclear capacity by 2050, participants at the World Economic Forum in Davos, Switzerland, heard.

A total of 31 countries have signed up to a pledge, first announced at the UN Cop 28 climate summit in Dubai in 2023, to triple global nuclear power capacity by 2050. The pledge was one of several made at the summit, including a commitment to transition away from fossil fuels in energy systems, triple renewable capacity by 2030 and double the rate of energy efficiency improvements.

Installed capacity of nuclear reactors has been roughly stable over the last 20 years, holding in a range of 350-380GW since 2004, according to data from the International Atomic Energy Agency (IAEA).

And reaching this goal would require building 30 GW/yr of net new capacity over 2030-50. As of 2024, there are 63 reactors under construction, with a capacity of 71GW, of which roughly half are in China, according to IEA data.

Standardising new reactors will be key to achieving this goal, according to Luc Remont, head of French state-owned nuclear constructor and operator EdF. The firm's most recently built reactors have been plagued with cost overruns and delays. The 1.5GW Flamanville 3 reactor, which entered service late last year in France, took 17 years to build and cost upwards of €20bn ($21bn).

But the firm is preparing to build 6-14 new reactors in France, and hopes to learn from the construction process to reduce costs and delays. EdF has reduced lead times by 30pc on the second reactor of its two-reactor Hinkley Point C plant in the UK, Remont said.

Making nuclear power more attractive to investors will unlock some of the vast sums required to reach the tripling goal, according to Darryl White, head of Canadian bank BMO. Tripling nuclear capacity will cost $5 trillion, he said, an "enormous challenge", and while some will come from governments and banks' balance sheets, other investors will be needed. Delivery of projects needs to be more certain, while financing models such as regulated asset base or contracts for difference (CfDs) will be needed to provide certainty on returns, he said.

Policy makers are behind the curve on the growing need for base load generation, according to Swedish deputy prime minister Ebba Busch. Money globally has been funnelled into intermittent renewables, but industry is now aware of the need for more clean base load generation, whether nuclear or hydro. Sweden is hoping to pass a law this year to increase financing — including state loans and CfDs — for new nuclear, she said.


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06/02/25

EU red tape ‘unsustainable burden’ for transition

EU red tape ‘unsustainable burden’ for transition

London, 6 February (Argus) — EU regulations in their current form are hindering rather than enabling the energy transition, limiting access to funding and slowing renewable installations, delegates at the Financial Times International Energy Policy Forum in Brussels heard this week. EU regulation has become "duplicative", Anthony Gooch Galvez, secretary general of the European Round Table for Industry (ERT), told delegates this week. "The burden is unsustainable" even for ERT members, which tend to be big companies, he said, pointing to the additional problems this would cause small to medium-sized businesses. The EU is "too prescriptive" and expects perfection from day one, Ann Mettler of Bill Gates-founded Breakthrough Energy said, leading to low-carbon technologies not being deployed. The "regulatory tsunami did not lead to the desired outcome", and the bloc should give more space to the private sector to support their development, she said. A lack of policy planning has contributed to the problem, Mettler said, pointing to the low number of final investment decisions that have been taken on hydrogen projects. Companies need to be able to implement their plans, she said. "Very cumbersome licensing and permitting processes" are also impeding progress in the region, IEA executive director Fatih Birol told delegates, calling for these to become "much more nimble". And while funding is technically on the table, it is often difficult to access, Gwenaelle Avice Huet of French firm Schneider Electric said, of which the EU's Recovery and Resilience Facility is a prime example. "It's not just about the level of money available." US presents opportunity But the stability of the EU's Green Deal, which was announced in 2021 and remains in place, does offer a stark contrast to the US, said Sebastien Treyer, executive director of think-tank the Institute for Sustainable Development and International Relations. Other speakers also noted the importance of stability and predictability within regulatory frameworks. "You need to have rules to play a good game", Galvez said. In the US, policy has fluctuated wildly between regimes, with president Donald Trump pausing some funding from the country's Inflation Reduction Act in the first days of his new term. This shift could mean US-based investors in the transition look to the EU for opportunities, said Marcin Korolec, president of the Green Economy Institute. "The federal government is not the whole of America. Many other economic players are still very willing to collaborate," Treyer agreed. But a lack of urgency from the European Commission could see the EU fail to capitalise on this, Korolec warned. He criticised in particular the bloc's planned competitiveness fund, announced last week, which would be funded under the EU's next budget starting in 2028, towards the end of Trump's term. "Sitting in a chair for three years waiting is absurd," he said. By Victoria Hatherick and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ambition focus as nations to fail new GHG goal deadline


06/02/25
06/02/25

Ambition focus as nations to fail new GHG goal deadline

Edinburgh, 6 February (Argus) — Most countries and major emitters that are party to the Paris Agreement will fail to meet a 10 February deadline for sharing new climate plans. Climate policy observers have stressed that higher ambitions beat timeliness when it comes to new 2035 greenhouse gas (GHG) emissions cut targets, but challenges abound ahead of the UN Cop 30 climate summit in Brazil. Only 10 countries, including G20 members Brazil and the UK, have submitted new climate plans — or Nationally Determined Contributions (NDCs) — so far. Around 200 countries and jurisdictions such as the EU have signed the Paris agreement. They need to submit their 2035 targets to the UN climate body UNFCCC by February as part of the so-called ratchet mechanism, which requires them to review and revise plans every five years. "There have not been any signals that any major emitters will submit their NDCs before the deadline, but we may see a handful of smaller emitters trickling in," think-tank International Institute for Sustainable Development (IISD) energy policy advisor Natalie Jones said. Non-profit the World Resources Institute (WRI) associate Jamal Srouji expects around 20 countries to submit by the deadline. But most climate plans should come in the second half of this year, with the UN general assembly in September emerging as a new potential milestone followed by Cop 30 in Belem, Brazil. Countries missing their NDC deadline is not new. They were slow to submit plans in the previous 2020-21 round — although they were grappling with a pandemic — and after Cop 26, when it came to strengthening 2030 targets. Jones described the UNFCCC's non-enforceable February deadline as "arbitrary". "It is much more important to have good quality plans than NDCs handed in on a forced deadline, although of course there is no guarantee that the plans that will come later will be necessarily better," Jones said. Srouji concurred: "Higher ambitions from major countries are far more critical because we know that we are off track for meeting the Paris goals". US exit The US submitted its new NDC in December under then president Joe Biden, knowing that the new president Donald Trump would pull out of the Paris accord again. This will take effect on 27 January next year. It was important for the US to submit this NDC, Srouji said, as it will serve as "a guiding post" for what the country could achieve, at sub-national levels in particular. But the US' Paris exit could dampen momentum on global NDCs, with some fearing a spillover effect . Indonesia, which earlier signalled it would submit by February, is unlikely to do so now, after the country's climate envoy Hashim Djojohadikusumo expressed discontent. "If America does not want to comply with international agreements, why should Indonesia comply?" he asked. Argentina pulled its delegation from Cop 29 last year and may consider leaving the Paris agreement. Among other major emitters, Canada set a new 2035 climate goal in December. The country was planning to submit its new plan by February, but the resignation of prime minister Justin Trudeau and a new election due this year could put the country's climate ambitions at risk. All eyes will of course be on China, the world's largest emitter, and whether it pledges stronger targets. The country is unlikely to submit its new plan by the deadline, according to observers. Expectations are high, but "targets will likely fall short of achieving the 1.5°C goal, leaving much work to be done to accelerate emissions reduction," think tank Asia Society Policy Institute director Li Shuo said. China signalled at Cop 29 that its NDC will be "economy-wide" and "cover all greenhouse gases", while continuing to strive to achieve carbon neutrality before 2060, without providing further details. "There is a big question mark, in the absence of US leadership, if will we see China along with the EU engaging and stepping up, or if will we see the country retreating like the US," IISD's Jones said. EU climate commissioner Wopke Hoekstra, who said the bloc's NDC will come in time for Cop 30, said that Europeans will need to show more leadership. But the EU's 2035 goal will be derived from its 2040 target and German MEP Peter Liese pointed to a deadlock in discussions . The European Commission has proposed a greenhouse gas (GHG) emissions reduction target of 90pc by 2040, from 1990 levels, which Poland said is "very difficult to accept". Challenges Cop 30 host Brazil, along with the UAE Cop 29 presidency, stuck to their promise of being early movers by submitting updated goals last year, although these were met with mixed reactions. Cop 29 host Azerbaijan did not submit a new NDC in Baku, with its president signalling challenges for some developing countries in establishing new plans. Some southeast Asian countries have highlighted challenges in providing new targets , such as the lack of common models between sectors, financing and economic growth. Chile said that it will submit an emissions reduction plan by the middle of this year, as a draft document is under consultation . There are many reasons for delays. "The UNFCCC timeline is not necessarily aligned with national decision-making processes and many developing countries face resource and capacity constraints," Srouji said, adding that parties are also expected to submit other documents such as adaptation plans and long term climate strategies. The IEA can provide support on national energy transition plans. The energy watchdog has recently supported Uganda and Vietnam on transition plans, and is in the early stages of transition advisory work with Colombia and Tanzania, it said. Colombia indicated that it will submit its NDC by June as the country seeks to address the "divisive issue" of fossil fuels, on which its economy is dependent. Mixed bag The climate plans submitted so far accounted for around 16pc of global emissions as of 5 February, including commitments from the UK and Brazil, according to WRI. IISD's Jones described the current NDCs as a "mixed bag", in terms of targets and the level of details, saying that the UK emerged as a leader with commitments on oil and gas licensing, while New Zealand has put forward a weak target and no plans. The UK's plan sets out the government's manifesto pledge to phase out sales of new cars "relying solely on internal combustion engines" by 2030, and notes that it will consult on issuing no new oil and gas licences to explore new fields. But none of the countries which posted new NDCs so far — apart from St Lucia — seem to have raised their 2030 targets, despite agreeing to "revisit and strengthen" them in the Cop 28's global stocktake (GST). How countries will respond to elements of GST — which also resulted in all parties agreeing to "transition away" from fossil fuels — will be a key issue to watch, especially after they failed to build on their commitments at Cop 29 in Baku. "While NDCs may show progress on the commitments of the Paris agreement and the commitments of a lot of countries on climate action, it is not clear what they will deliver in terms of the ability to keep 1.5°C in reach", Srouji said. "This is how Cop 30 comes into play, to make sure countries respond adequately and keep on track, he said. By Caroline Varin Countries GHG 2035 reduction targets Countries Headline 2035 target Baseline UAE Cutting GHG emissions by 47pc by 2035 2019 Brazil Cutting GHG emissions by 59-67pc by 2035 2005 US Cutting GHG emissions by 61-66pc by 2035 2005 Uruguay Cutting GHG emissions by 30pc by 2035 2020-22 Switzerland Cutting GHGemissions by 65pc by 2035 1990 UK Cutting GHG emissions by 81pc by 2035 1990 New Zealand Cutting GHG emissions by 51-55pc by 2035 2005 Andorra Cutting GHG emissions by 63pc by 2035 2005 Ecuador Cutting GHG emissions by 7pc by 2035 2010 St Lucia Cutting GHG emissions by 22pc in energy sector by 2035* 2010 Canada** Cutting GHG emissionsby 45-50pc by 2035 2005 Source countries' NDCs *conditional target **Canada only submitted its headline target, not its NDC Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Equinor Norwegian gas output up on year in 2024


05/02/25
05/02/25

Equinor Norwegian gas output up on year in 2024

London, 5 February (Argus) — Norwegian state-controlled Equinor's gas output on the Norwegian continental shelf (NCS) edged up on the year, driven by record-high output from the giant Troll field and fewer unplanned outages at NCS assets, the firm said on Wednesday. The firm's Norwegian gas output rose by 4pc on the year to 758,000 b/d of oil equivalent (boe/d) or 107mn m³/d in 2024. This was driven by "strong contributions" from the Troll and Johan Sverdrup fields, Equinor said. Gas production from Troll — in which Equinor holds a 31pc stake — reached an all-time high last year at roughly 116mn m³/d, the Norwegian producer has said. And there were fewer "unplanned losses" on the NCS last year than in 2023, Equinor said. The firm was the largest producer on the NCS in 2023, accounting for more than a third of total gas output on the shelf, the latest available data from the Norwegian Offshore Directorate show. Equinor's global gas output rose by 2pc to 985,000 boe/d or 139mn m³/d last year. But the firm's combined oil and gas global output was slightly lower in 2024, with a small increase in gas production insufficient to offset lower liquids output. Equinor's equity liquids production was 1.08mn boe/d in 2024, down by 3pc on the year. Equinor expects "more than 10pc growth from 2024-27" in oil and gas production, reaching a peak at 2.3mn boe/d in 2027. And the firm estimated that hydrocarbons output would grow by 4pc from 2024 to 2025. Equinor's reported Norwegian gas prices dropped by 22pc on the year to $9.47/mn Btu, or €31.01/MWh, in 2024, using Wednesday's exchange rate. And the average reported price for its US gas decreased by 4pc to $1.70/mn Btu, or €5.57/MWh. Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, 23pc lower on the year. The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capital expenditure allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets. By Georgia Gratton and Jana Cervinkova Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Equinor scales back renewables plan


05/02/25
05/02/25

Equinor scales back renewables plan

London, 5 February (Argus) — Norwegian state-controlled Equinor said today it has cut by up to 25pc its target for renewables capacity by 2030, and abandoned a plan to allocate half its capital expenditure (capex) to low carbon projects by that same year. The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capex allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets. It now plans to reduce net carbon intensity — which includes scope 3 emissions, from sold products — by 15-20pc by 2030 and by 30-40pc by 2035, from a 2019 baseline. The previous targets were at the higher end of these ranges. Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, lower on the year by 23pc. The company's oil and gas output was slightly lower in 2024, with a small increase in gas production not quite offsetting lower liquids output. Equinor's equity liquids production was 1.08mn b/d of oil equivalent (boe/d) in 2024, down by 3pc on the year, and its equity gas production rose by 2pc to 985,000 boe/d over the same timeframe. It expects "more than 10pc growth from 2024-27" in oil and gas production, and estimated that hydrocarbons output would grow by 4pc from 2024 to 2025. Liquids and gas prices fell in 2024. Equinor's reported Norwegian and US gas prices rose by 5pc and 26pc, respectively, on the year in the October-December period, but this was not enough to assuage a decrease across the year. The average reported price for its Norwegian gas dropped by 22pc on the year to $9.47/mn Btu in 2024, and the average reported price for its US gas decreased by 4pc to $1.70/mn Btu. Equinor reported an average liquids price of $74.1/bl in 2024, 1pc lower on the year. Its reported fourth-quarter 2024 liquids price fell by 10pc from the same period in 2023, to $68.5/bl. Equinor's power generation rose in 2024, boosted by additions in Brazil and Poland in 2023 and the start of the 531MW Mendubim solar plant in Brazil in 2024. Equinor's share of power generation stood at 4,917GWh in 2024, up by 19pc on the year — but its renewables share rose faster, by 51pc to 2,935GWh. Equinor has maintained its target of 30mn-50mn t/yr of CO2 storage by 2035. Equinor trimmed 600,000 t/CO2 equivalent (CO2e) from its absolute scope 1 and 2 — or operational — emissions over 2023-4. Scope 1 and 2 emissions from its operated production stood at 11mn t/CO2e in 2024. The company's upstream carbon intensity fell to 6.2kg CO2/boe in 2024, down by 7.5pc on the year. Equinor will buy back $5bn of shares in 2025, having bought $6bn in 2024. It completed the fourth $1.6bn tranche of its 2024 programme on 14 January and will launch the first tranche — of up to $1.2bn — of its 2025 programme on 6 February. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

S Korea to invest $89.5mn in net zero, energy security


05/02/25
05/02/25

S Korea to invest $89.5mn in net zero, energy security

Singapore, 5 February (Argus) — South Korea today announced plans to invest 129.3bn won ($89.5mn) this year in new research and development projects in the energy sector, to achieve carbon neutrality and ensure domestic energy security. About W78.7bn will go to 41 projects in the first round of funding this year. These projects will focus on technologies related to "carbon-free" energy such as renewable energy, nuclear power, and hydrogen, among others, South Korea's energy ministry (Motie) said on 5 February. The ministry will also invest W46.2bn to improve energy efficiency and in power systems, especially given surging power demand driven by artificial intelligence. Motie also plans to invest W56.9bn in securing technologies such as next-generation solar power, flexible operation of nuclear power plants, and large-capacity water electrolysis facilities, to "respond to the climate crisis". South Korea's science ministry in December 2024 unveiled plans to invest W2.75 trillion in technologies this year to respond to climate change, which included renewable energy technology and "carbon-free" technologies like nuclear power. It is unclear if the latest W56.9bn commitment is part of the W2.75 trillion announced last year or a separate investment. South Korea in December 2024 also announced plans to invest W450 trillion won in green finance by 2030, then acting president and prime minister Han Duck-soo said before he was impeached later that week . This made deputy prime minister and finance minister Choi Sang-mok the current acting president and acting prime minister. President Yoon Suk Yeol was impeached on 14 December and has since been arrested. If Yoon is removed or resigns, a presidential election must be held within 60 days, instead of the original election date in 2027. By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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