This remarkable achievement highlights the effectiveness of Norway’s EV policy framework, which combines forward-thinking goals with comprehensive incentives. As the nation races towards its target of selling only zero-emission vehicles by 2025, ten years ahead of the European Union’s similar goal, it is setting a precedent for the world.

Ambitious Goals Drive Policy

Norway has one of the most aggressive zero-emission vehicle policies in the world. The country’s 2025 goal is key to combating climate change and reducing greenhouse gas emissions.

Norway’s ambitious target is ahead of that of the European Union, which aims for the same target by 2035, demonstrating the country’s commitment to taking the lead on sustainable mobility.

Central to this vision is the government’s recent pledge to make sure that by 2026 more electric vehicles are bought than diesel-powered ones. This interim target will ensure gradual progress towards total electrification while also keeping Norway aligned with its higher-level goals.”

The Incentive Ecosystem

One of the cornerstones of Norway’s success has been its robust incentive framework. Recognising that affordability and convenience are critical to electric vehicle adoption, the government has implemented a range of measures to make electric vehicles competitive with traditional internal combustion engine (ICE) cars.

Electric vehicle buyers benefit from significant tax rebates, making EVs more accessible to a wider segment of the population. These rebates often offset the higher upfront costs associated with electric vehicles, making them comparable in price to petrol-powered vehicles.

EV owners are exempt from a variety of fees, including registration taxes and annual road taxes. This exemption provides long-term cost savings, further incentivising the shift towards zero-emission vehicles. Electric vehicle drivers enjoy free or reduced-cost access to public parking, toll roads, and ferries.

In addition, Norway has invested heavily in an expansive charging infrastructure, ensuring that electric vehicle owners have access to fast and reliable charging networks nationwide.

Incentives alone are not enough to drive transformative change. Norway has also focused on creating a cultural shift towards electric mobility. Through public awareness campaigns and partnerships with automakers, the government has educated citizens on the environmental and economic benefits of EVs.

The result is a population that is not only aware of the advantages of zero-emission vehicles but is also enthusiastic about adopting them.

Results And Challenges

Although almost all new car buyers in Norway have switched to electric vehicles, there are still some exceptions.

“The main buyers of ICE (internal combustion engine) cars in Norway are rental companies because many tourists are not familiar with EVs,” Hekneby stated.

However, other industries must adjust to the growing number of EVs on Norwegian roads. Fast electric chargers are gradually replacing gasoline pumps at gas stations. Anders Kleve Svela, a senior manager at Circle K, the biggest fuel store in Norway, stated, “We will have at least as many charging stalls as we have fuel pumps within the next three years.”

“In just a few years, over half of Norway’s automobiles will be electric. In light of that, we must build up our charging park,” he continued.

Because of the cold, drivers may have to wait a little longer to charge their EVs throughout the winter months.

Desire Andresen, 28, an in-home caregiver, remarked, “Sometimes I miss that I just can pump it full and drive off five minutes later,” as she charged her vehicle at a Circle K station outside of Oslo.

However, I feel more at ease in an electric vehicle… In addition to being better for the environment, diesel cars emit many odours.

Global Implications

Norway’s success story offers valuable lessons for other nations aspiring to accelerate EV adoption. Key takeaways include policy consistency, which provides clarity to automakers, investors, and consumers, fostering confidence in the transition to electric vehicles.

Combining financial incentives with infrastructure investments ensures that EVs are both affordable and practical. Engaging citizens through education and awareness campaigns is essential to building widespread support for sustainable transportation.

As Norway approaches its 2025 goal, the focus is shifting to sustaining momentum. Promoting second-hand EV markets can ensure inclusivity and broaden adoption among lower-income groups. Supporting research and development in battery technology and sustainable materials will address long-term resource challenges. Norway is leveraging its position as a pioneer to influence global policy discussions on zero-emission mobility.

As the world grapples with the urgent need to combat climate change, Norway’s model serves as a beacon of hope and a blueprint for success. By fostering innovation, ensuring affordability, and engaging its citizens, the country is proving that a zero-emission future is not only achievable but also within reach.

With its unwavering commitment to sustainable mobility, Norway is not just redefining transportation but also inspiring the world to envision a cleaner, greener tomorrow.

Christina Bu, who chairs the Norwegian EV association, said, “Norway will be the first country in the world to pretty much erase petrol and diesel engine cars from the new car market.”

The post IF Insights: Norway’s EV success story becomes policy blueprint for future appeared first on International Finance.

CPKC is a significant employer, neighbour, and supplier of transportation services to communities all over the continent, with 20,000 route miles under its belt and 20,000 railroad workers. The merger of Canadian Pacific (CP) and Kansas City Southern (KCS), two historic railroads, to form CPKC has gained momentum over time. This merger has increased supply chain competition and added value for customers while upholding the integration of operations, service, and safety.

In addition, this strategic union gave a rare chance to incorporate ethical business practices as the company develops for the future. Since the establishment of CPKC, early-stage integration initiatives involving workforce, systems, and governance have been the cornerstone of success. The company’s ability to maintain dedication to safety, facilitate smooth customer service delivery, and promote sustainable operations has all been aided by these calculated actions.

The company concluded 2023 with a great performance in a year that saw a lot of business change. After CP led the industry in this metric for 17 years running, CPKC now leads the Class I railroad industry with the lowest frequency of train accidents reported to the Federal Railroad Administration.

The company continued to invest in cutting-edge low-carbon technology and set a new climate target for the combined locomotive operations of CPKC. Through significant collaborations and worthwhile community investment projects, the company strengthened ties to the surrounding communities. As CPKC integrated, the company also reorganised the Diversity and Inclusion Council to guide the company’s efforts in this regard.

These significant actions distinctly show ongoing dedication to being a sustainability leader to workers, clients, suppliers, and the communities in which companies operate. Sustainability continues to be at the forefront of the company’s integration journey as it enters its second year.

A sustainably driven culture

It’s a big job to combine two railroads that run in three different countries with a diverse workforce of about 20,000 railroaders. Success at CPKC is largely attributed to its people and culture. Fostering a culture that is unified in the pursuit of safety excellence, best-in-class customer service, and ethical business practices has been one of the company’s main integration goals.

Ensuring safety is a fundamental aspect of a company’s operations, and upholding strict safety regulations is essential amidst the intricate transformations occurring within. Its premier safety initiative, Home Safe, was implemented throughout operational regions in Mexico and the Southern US in 2023.

The company strives to safeguard the environment, communities, railroad workers, and customers through Home Safe. Maintaining a daily commitment to being home safe, the company celebrates safety performance with the annual Safety Awards for Excellence and improves safety culture through quarterly safety walkabouts.

In order to proactively identify and address workplace hazards while promoting a safe working environment, safety walkabouts bring together management, members of the Workplace Health and Safety Committee, frontline railroaders, and various regulators.

The company’s “Home Safe” commitment and actions are embodied by many dedicated railroaders across the network. It honours these people’s dedication to upholding “Home Safe Values” and considering their coworkers’ well-being daily by recognising them each year at the CPKC Safety Awards for Excellence.

It also acknowledges that safety is a journey rather than a destination even as companies constantly strive to be safer today than they were yesterday. Its goal of becoming the safest freight railroad in North America will be pursued by reinforcing a strong safety culture.

To fully harness the potential of CPKC’s diverse workforce, which spans three countries, it is essential to foster a culture where all perspectives are valued and heard. To aid in developing a comprehensive diversity and inclusion strategy during the integration process, CPKC has established a Diversity and Inclusion Council, led by senior leaders.

To access the plethora of viewpoints held by CPKC employees, the council hosted fifteen virtual Diversity Dialogue engagement sessions. Participating in these sessions were more than 200 employees, whose insights helped shape how CPKC’s strategy developed over time.

As the company broadens its operational scope, these staffers assume greater accountability. Being a neighbour to hundreds of communities in North America, CPKC is committed to conducting its business safely and having a significant influence on the communities where it operates, lives, and works. The company increased public safety awareness and emergency response training in 2023 and engaged staff, local first responders, and other community stakeholders along the right of way.

“Over 4,000 emergency responders attended 82 community awareness and emergency training events that CPKC either organised or took part in. Its annual 2023 Holiday Train programme, which reaches communities across our network in Canada, the US, and Mexico in support of local food banks, raised CAD$1.8 million and collected over 160,000 pounds of food,” stated Glen Wilson, Assistant Vice-President, Environmental Risk, CPKC, while interacting with the World Finance.

CPKC climate strategy

An essential component of the shift to a lower-carbon economy is the transportation sector. Global trade relies heavily on freight rail, which transports goods over long distances more fuel-efficiently than long-haul trucking. By working innovatively and cooperatively with suppliers, customers, governments, and industry partners on climate solutions, CPKC hopes to lower operational emissions and bring about change in the freight rail sector.

The release of CPKC’s commitment to climate action, which outlines the goal of creating an emissions target in line with a 1.5°C future, was the venture’s early success. It also announced a goal to reduce well-to-wheel locomotive emissions by 369% per gross ton-mile by 2030 from the base year of 2020, which was validated by the Science Based Targets Initiative.

The company is still taking steps to lower operational emissions as it continues to hone its climate strategy, such as investigating and funding cutting-edge low-carbon solutions. This includes creating the first line-haul hydrogen-powered locomotive in North America, which uses batteries and fuel cells to run its electric traction motors.

In this ground-breaking project, the company has continued to reach significant benchmarks since the programme’s launch in 2020. It installed hydrogen production and fuelling facilities, finished two hydrogen locomotive conversions, and advanced production on a third in 2023. It jointly announced a joint venture with CSX to construct and operate hydrogen locomotive conversion kits at CSX’s West Virginia locomotive shop for diesel-electric locomotives.

The company achieved another significant milestone in March 2024 when the locomotive biofuel trial project celebrated its first anniversary. As part of this project, CPKC is testing the long-term operational effects of using diesel blended with 20% biodiesel renewable fuel within a fleet of locomotives.

The company is collaborating with industry peers and locomotive suppliers on this initiative. In 2023, it utilised over 8.2 million litres of B20 fuel in locomotive operations, completing more than 500 fuelling events. This effort resulted in an 18% reduction in overall emissions for each litre of B20 diesel fuel used in place of conventional diesel. This pilot project is crucial for validating the operational impacts of using advanced blends of renewable biofuels in CPKC’s locomotive fleet.

Through its capital expenditure programme, CPKC continues to upgrade its locomotive fleet and rail network in addition to investments in low-carbon initiatives. This improves overall efficiency and ensures system reliability. The company committed CAD 2,468 million in capital expenditures in 2023 to maintain and modernise the network and fleet of locomotives to boost overall productivity and guarantee system dependability.

These achievements highlight CPKC’s commitment to sustainable operations and its culture of continuous improvement. As the company progresses into its second year of integration, it remains focused on sustainability. CPKC is unwavering in its dedication to driving positive change both within the organisation and in the broader community.

The post Creating a sustainably driven transport industry appeared first on International Finance.

The country’s GDP expanded 0.4% in the April-June quarter. Seven of the 10 sectors tracked by Statistics South Africa registered growth in the latest three-month period, as the economy benefited from an unbroken stretch without power cuts for the first time in years. The factory activity, however, slumped in August 2024, indicating that business conditions remain highly volatile in key sectors.

International Finance will provide an in-depth analysis of the power cuts and their significant impacts on South Africa’s labour market.

What’s going on with SA’s power sector?

Haroon Bhorat, Professor of Economics and Director of the Development Policy Research Unit, University of Cape Town and Timothy Kohler, Junior Research Fellow and PhD candidate, Development Policy Research Unit, School of Economics, University of Cape Town, recently analysed the labour market effects of scheduled electricity outages in South Africa, referred to as load shedding.

They found that power outages have had negative effects on employment, as well as working hours and monthly earnings among those who remained employed. Effects on employment have been larger than effects on working hours or earnings, highlighting the threat that load shedding poses to job preservation and job creation efforts.

“These effects were not, however, the same for all firms. Workers in the energy-intensive manufacturing industry appear particularly vulnerable to losing their jobs. Also, small and large firms responded differently. Small firms tended to favour reducing working hours rather than introducing layoffs. Lastly, effects varied by load shedding intensity. Low levels of load shedding don’t affect the labour market strongly, but high levels did,” the duo observed.

Load shedding, since 2007-end, has become a consequence of frequent breakdowns at the national utility, Eskom, due to a combination of poor long-term planning, a lack of financial resources, rampant state capture and corruption, and ageing coal-fired power stations.

The year 2023 became the worst one on record for both the utility and the country, as load shedding occurred for 289 days. Eskom, however, stated in August 2024 that South Africa could have no scheduled power cuts over the next seven months if the state-owned utility’s unplanned electricity losses stay at their current level.

Eskom managed not to implement power cuts in more than 150 days, since late March, after a big improvement in the performance of its fleet of mainly coal-fired power stations. Apart from increased electricity availability at Eskom coal stations, renewable energy projects operated by independent producers have also delivered more electricity over the past year. The utility’s CEO Dan Marokane said Eskom should be able to say early 2025 when “load-shedding at the chronic level that it is behind us,” with an additional 2.5 gigawatts of generation capacity coming online in the next few months.

Despite the positives, worries remain

Eskom’s turnaround, to some extent, is praiseworthy. However, the damage already done is huge. In 2023, scheduled blackouts reached record levels and cost the already floundering economy about $90 billion and over 860,000 jobs, particularly hitting its mining and manufacturing sectors. Even at the micro level, South Africans have had to mould their lives around daily power cuts.

“Over the past five years, the worsening energy crisis has threatened the survival of businesses, including KFC, the popular American fast-food joint, and required costly fixes for companies that need a steady supply of electricity. Grocery retailer Shoprite recently reported spending $28 million in six months on diesel generators to keep its lights and refrigerators on,” Foreignpolicy.com reported.

To partially cover the shortfall in electrical output in 2023, Eskom ramped up its use of costly diesel-powered generators, further compromising its already unsustainable financial position. According to the utility, the unit cost of electricity from diesel generators is 14 times higher than the utility’s coal plants.

Eskom is now using its diesel-powered turbines to help meet surges in demand during the morning and evening peak periods. According to Eskom, it spent 1.1 billion South African rand, or roughly $60 million, on diesel in May 2024, a notable decline from the 3.1 billion rand spent in the same month in 2023.

Most notably, Eskom has brought several units of the Kusile power plant, located in the Mpumalanga province, back online. The utility was granted regulatory approval to temporarily operate those units without technologies that prevent toxic sulphur dioxide emissions. This has effectively increased Eskom’s available generating capacity by as much as 2,100 megawatts (MW), which is more than the average supply deficit throughout 2023.

In addition to Kusile, the rest of the utility’s coal fleet has remained in slightly better shape due to increased maintenance over the summer months (between October 2023 and March 2024) when electricity demand remains typically below average. Both of these have contributed to a meaningful decline in the number of unplanned outages so far in 2024.

“Meanwhile, a decrease in overall demand, owing to the weak economy and a boom in private renewable energy investments, has also helped. Eskom estimates that solar panels with a cumulative generating capacity of 5,500 MW have now been installed on the roofs of South Africa’s malls, office blocks, warehouses and households. Of that amount, roughly 2,100 MW was added in the last year alone—the vast majority of which is for self-use as the country doesn’t yet have a national feed-in policy,” Foreignpolicy.com added.

James Mackay, chief executive of the Energy Council of South Africa, a business group that is working with the government to resolve the power crisis, termed the reprieve as “a genuine shift and result of 18 months to two years of hard work.”

He reflected renewed efforts to clamp down on corruption, a fresh Eskom leadership team that has political support, an improved culture at the utility, and a stronger maintenance programme. The private sector’s involvement, partly in the form of capacity building, is also making a difference.

While the country’s electrical grid remains vulnerable, power cuts will be less severe going forward, Mackay predicted. By 2029, South Africa eyes to have a liberalised electricity sector, by ending Eskom’s century-long monopoly. The Electricity Regulation Amendment Bill, introduced in August 2024, will allow non-Eskom electricity trading for the first time and require the establishment of a fully competitive wholesale market within five years.

The government has suggested delaying coal plant shutdowns for the foreseeable future, despite the blockbuster $8.5 billion energy transition funding deal it agreed to at the COP26 climate conference in late 2021.

However, Eskom’s recent turnaround still provides an opportunity to accelerate South Africa’s green energy ambitions, to deal with the economic blow of the European Union’s impending carbon border taxes. As things stand, South Africa will be hit harder than any other nation due to its heavy reliance on coal.

President Cyril Ramaphosa wants to attract private-sector investment worth $110 billion in the next five years as South Africa leans more on its BRICS partners, while also seeking to maintain close ties to the United States, the United Kingdom, and Europe. To successfully court investors and reignite the moribund economy, South Africa needs to close the chapter on its load-shedding nightmare.

Bhorat and Kohler found that load shedding was significantly and negatively associated with employment, working hours and monthly earnings. On average, periods of load shedding were associated with a 2.6% lower chance of being employed, 1.3% fewer working hours per week (equal to about half an hour), and 1.7% lower real monthly earnings. These are large effects. The monthly earnings reductions were also driven by fewer working hours.

Low levels of load shedding (stages 1 and 2) did not have these associations. But they were markedly worse with higher levels (level 3 upwards). Stage 3 was associated with 1.9% lower employment, compared to 3.6% for stages 4 and 5 and almost 6% for stage 6.

Manufacturing, a relatively energy-intensive industry, was worst off by far. Here, load shedding was associated with nearly 17% lower manufacturing employment, about 6.5 times larger than the average of all industries. While most industries suffered from loss of working hours due to power cuts, workers in large firms were vulnerable to all outcomes. In contrast, those in small firms were only vulnerable to reductions in working hours, but not to job losses or wage cuts.

“One might expect larger firms to be less vulnerable, as they would have more resources to pay for alternative energy sources. While that’s probably true, large firms are more likely to operate in energy-intensive sectors. Our analysis suggests that small firms have tended to reduce working hours rather than laying off staff, an outcome which is not unique to South Africa,” the duo commented.

The “Electricity Regulation Amendment Act” envisages a hybrid market model, where competition, along with various pricing models will emerge and shape the sector’s health. New kinds of businesses will come up, such as traders in electricity, “prosumers” (consumers producing electricity for sale into the grid), market and system operators.

Load shedding has been devastating for South Africa’s economy, weakening the rand and contributing to inflation. South Africa’s central bank estimates that it has cut 2% from the country’s economic growth rate in 2024. In April, some 80% of public healthcare facilities said they were now affected by power cuts.

People have taken matters into their own hands. South Africa’s installed rooftop solar PV capacity increased from 983MW in March 2022 to 4,412MW in June 2023, registering a 349% increase in a little over a year. Other government data shows that in Q1 2023, the country imported five times as many batteries as it did in 2022, as consumers looked for more ways to retain power during outages.

The South African Government is actively encouraging the uptake of new rooftop solar with targeted policy, including a new rebate scheme announced in February 2024, which allows individuals who install new panels onto their homes to claim rebates equal to 25% of the cost of the panels.

The latest research from Morgan Stanley suggests that the decline in South Africa’s coal generation, coupled with the boom in private power supplies, means electricity generated from the private sector will exceed output from Eskom by 2025. This can be considered a rare silver lining, as the Ramaphosa government gears up to end the state-run utility’s market monopoly.

The post Power cuts: The demon affecting South Africa’s growth appeared first on International Finance.

Commercial aviation, shipping and automobile sectors emit over 9,100 million tonnes of CO2 on an annual basis. CAPHENIA’s operational principle is simple here: to play an active hand in reducing CO2 emissions from the concerned industries by offering renewable synthetic fuels at competitive prices.

“CAPHENIA follows nature’s example by making CO2 usable. Using a globally patented power and biogas to liquid (PBtL) process, CAPHENIA converts CO2 and biogas into renewable synthetic fuels. These fuels can power existing engines and engines, so no complex conversions or new infrastructure are required. The electricity required for the conversion process is generated from renewable energies, to whose fluctuating availability the CAPHENIA process can react flexibly,” the venture remarked.

What’s The Vision?

Achieving mobility and environmental protection through the usage of climate-neutral fuels. As per the company, the key lies in the CO2 cycle. If the CO2 required to produce synthetic fuels comes from CO2 recycling, the combustion of the fuels in aircraft and ships will become climate-neutral.

To fulfil its vision of “Climate-Neutral Mobility,” CAPHENIA’s game-changing tool is synthetic fuels that are particularly suitable for aviation and shipping. Since they have an extremely high energy density, they can be used to cover long distances. The fuels also play an important role in agriculture, transport and construction.

“Every year, over 3,900 billion litres of fossil fuels are used for global mobility. This results in emissions of over 9,100 million tons of CO2. In a world focused on sustainability, fossil fuels are being replaced by synthetic fuels, hydrogen and electricity from renewable energies,” the venture remarked further.

CAPHENIA’s synthetic fuels follow the ‘SAS’ formula: sustainable, affordable and scalable. We will talk about it in detail.

Knowing The Technology

At the core of CAPHENIA’s operational ecosystem, we have “Maximum Input Material Utilisation,” a technology where various process stages related to synthetic fuel production are carried out in a unique and patented three-in-one zone reactor. The reactor does not require any catalysts and achieves a selectivity of 100% thanks to the intelligent process design. And since no by-products are produced, there are no material or energy losses.

“The energy efficiency for producing the synthesis gas is 86%. If the synthesis gas is reused in Fischer-Tropsch fuel synthesis, an efficiency of 72% sets a new industry benchmark. In comparison, the classic power-to-liquid process achieves an efficiency of 40%. CAPHENIA’s Power and Biogas to Liquid process enables a CO2 reduction of 92%, an industrial record, using wind power,” the venture stated further.

Talking about the “CAPHENIA 3-in-1 Zone Reactor,” the mechanism has four working stages (or zones). Let’s start with the “Plasma Zone,” where at temperatures of around 2000°C, methane (CH4) is broken down into a carbon aerosol (C) and hydrogen (H2). Then comes the “Boudouard Zone,” where the carbon aerosol (C) gets combined with carbon dioxide (CO2) and converted to carbon monoxide (CO). The conversion is based on the well-known Boudouard reaction, which takes place at temperatures of around 1000°C. In this reaction, the high thermal energy of the gas from the plasma zone is used to the maximum and converted into chemical binding energy.

Next is the “HetWGS Zone” or the “Heterogeneous Water Gas Shift Zone,” where the remaining carbon aerosols (C) react with added water vapour (H2O) to form carbon monoxide (CO) and hydrogen (H2). The composition of the synthesis gas (CO + H2) can be flexibly controlled. The final stage is a process named “Synthesis Gas Converter,” which is also the starting material for a variety of CAPHENIA’s products.

“Synthetic fuels are not only climate-friendly, but also have a much higher degree of purity than fossil fuels. This means that their combustion produces significantly less sulphur dioxide and particulate matter,” the start-up continued further.

Conventional processes require many reactors and many units to produce synthesis gas. CAPHENIA zone reactor simplifies the whole process and makes it faster and more cost-effective, by using significantly less electricity. CAPHENIA can produce synthetic fuels quickly in large quantities thanks to its scalable reactor design. CAPHENIA uses biogas, CO2, water and electricity to produce synthesis gas, which serves as an intermediate product from which synthetic fuels or other chemical products can be manufactured.

In synthesis gas production, the CAPHENIA process achieves a record efficiency of 86%. The Synthetic fuels produced from the CAPHENIA’s operational ecosystem have a CO2 reduction of up to 92% compared to fossil fuels. This means that the CAPHENIA process comes closer to CO2 neutrality than any other fuel production route.

Solutions For Transportation Sector

Due to its energy efficiency, the railway has emerged as the climate-friendly mode of transport par excellence. However, CAPHENIA sees the sector to be even more environmentally friendly and attractive, by saying goodbye to fossil diesel.

While battery and hydrogen trains are merging as possible climate-friendly alternatives, purchasing them may not always be economical or sustainable for the operators. In freight and heavy goods transport, the performance of classic combustion engines cannot be dispensed with at all for the time being.

Therefore, climate-friendly alternatives to diesel operation are necessary. One of these alternatives is the renewable fuel HVO diesel (hydro-treated vegetable oil). Operating with HVO significantly reduces CO2 emissions and enables combustion engines to be operated in a climate-friendly manner without having to make extensive conversions. HVO has already established itself as one of the important bridging technologies in rail transport (Climate Diesel). Since its use, it has led to a saving of around 90% in CO2 emissions compared to fossil fuels and is therefore an important step towards sustainable mobility.

However, since HVO is made exclusively from used cooking oils and high-quality organic oils, it becomes difficult to obtain sufficient quantities of raw materials. CAPHENIA is offering a sustainable complement to HVO diesel by relying on CO2 recycling and biogas as raw materials, making the production volume of the start-up’s products like Sustainable Aviation Fuel (SAF) infinitely scalable. This solution is also coming in handy for the aviation industry, a sector which is currently facing the steep challenge of replacing large quantities of fossil fuels in a record quick time.

“The inevitable byproduct of SAF production is renewable diesel, which can be used as a climate-friendly alternative in rail transport, thus enabling maximum and immediate CO2 savings by using existing infrastructure,” the venture stated further.

Remaining committed to innovation and sustainability, CAPHENIA will build a pilot plant for the production of renewable fuels using the power and biogas-to-liquid process (PBtL) in Germany’s Höchst industrial park in the coming days. The chemical park offers an excellent infrastructure and supply of biogas and green electricity.

CAPHENIA’s PBtL technology has already impressed in research and achieved a record efficiency of 86% in synthesis gas production. The pilot plant will show that the PBtL process is also efficient and economically viable in practice.

“Due to its proximity to Frankfurt Airport and the local demand for SAF (Sustainable Aviation Fuel), our pilot plant will also play an important role in meeting this demand and thus make a valuable contribution to CO2 neutrality in air transport,” the start-up observed.

CAPHENIA In News

On June 28, 2024, CAPHENIA and German airline Condor reached an agreement on the future purchase of Sustainable Aviation Fuel (SAF). As a partner, Condor will support the further development of the process to market maturity and at the same time, has secured access to agreed purchase quantities as soon as production begins on an industrial scale, which will likely happen in 2027.

Continuing the momentum, CAPHENIA signed a letter of intent with the USA-based Emerging Fuels Technology, to integrate each other’s technologies for the production of SAF and renewable diesel. This collaboration combines CAPHENIA’s leading Plasma Boudouard Reactor (PBR) technology with EFT’s Fischer-Tropsch Technology Platform to significantly improve the efficiency and scalability of SAF production. The letter of intent also provides for CAPHENIA to acquire license rights to combine its syngas technology with EFT’s Technology Platform for multiple projects.

The post Start-up of the Week: Through renewable synthetic fuels, CAPHENIA eyes ‘Green Transportation’ appeared first on International Finance.

In a monthly report, the Organisation of the Petroleum Exporting Countries projected that global oil demand would increase by 1.85 million barrels per day (bpd) in 2025 and by 2.25 million bpd in 2024. The two predictions from last month remained the same.

This is the final report prior to the June 1 meeting of OPEC+, an alliance comprising Russia and the other members of OPEC, to decide whether to continue the voluntary oil output cuts into the second half of the year. When it came to the economic outlook, OPEC was optimistic.

“Despite certain downside risks, the continued momentum observed since the start of the year could create additional upside potential for global economic growth in 2024 and beyond,” OPEC said in the report.

In an effort to support the market, OPEC+ has reduced output several times since late 2022. Unless it is extended, as some OPEC+ sources have indicated, the most recent cut of 2.2 million bpd is in effect until the end of June 2024.

Owing in part to disagreements over how quickly the world will switch to cleaner fuels, forecasters’ estimates of the rate of growth in oil demand in 2024 diverge more than usual. The oil demand is expected to peak by 2030, according to the International Energy Agency, a representative body of industrialised nations.

The agency projects a 1.2 million barrel per day increase in oil demand and is expected to release updated data soon. With no peak in sight, OPEC anticipates that oil consumption will continue to rise over the next 20 years.

Additionally, OPEC declared that it would no longer publish the estimate of global demand for its own crude, which is used as a gauge of market strength, and instead concentrate on OPEC+’s oil demand.

IEA Disagrees

Meanwhile, the International Energy Agency (IEA) has trimmed its forecast for 2024 oil demand growth, widening the gap with producer group OPEC in terms of expectations for 2024’s global demand outlook.

“The divide between the IEA, which represents industrialised countries, and the Organisation of the Petroleum Exporting Countries sends divergent signals about oil market strength in 2024 and, over the longer term, about the speed of the world’s transition to cleaner fuels,” reported CNBC TV18.

While stating that the global oil demand in 2024 will grow by 1.1 million barrels per day (bpd), the Paris-based IEA largely cited weak demand in developed OECD nations behind the phenomenon.

Other factors are poor industrial activity and a mild winter sapping gas oil consumption (particularly in Europe). In Europe, there has been a declining share of diesel cars, which has been undercutting consumption.

“Combined with weak diesel deliveries in the United States at the start of the year, this was enough to tip OECD oil demand in the first quarter back into contraction,” IEA said, while noting though that the OECD slump was somewhat offset by resilient non-OECD demand led by China.

The gap between the forecasts of IEA and OPEC has now got wider than it was earlier in 2024, when a Reuters analysis found that the 1.03 million-bpd difference in February 2024 was the biggest since at least 2008.

The two, however, are closer in their projections for 2025, as the IEA slightly raised its demand growth estimate to 1.2 million bpd, with OPEC leaving its 1.85 million-bpd forecast unchanged.

The post OPEC predicts increase in global oil demand, IEA differs appeared first on International Finance.

The proposal is contained in the Statute Law (Miscellaneous Amendments) Bill, 2023, which seeks to amend the Energy Act by doubling EPRA’s levy from 0.5 per cent to a maximum of 1 per cent.

Currently, Kenyans pay Ksh0.25 per litre of petrol, diesel, and kerosene as a petroleum regulatory levy, and Ksh0.08 for each unit of electricity as EPRA levy. These two levies are the primary source of revenue for the regulator, accounting for 96 per cent of its total revenues of Ksh1.51 billion ($9.9 million) in the financial year to June 2021.

Although the proposal aims to enhance the operational capacity of the regulator, it will lead to an increase in fuel and electricity prices if passed. This comes at a time when there is public outcry over the high cost of fuel, forcing the government to step in and stabilize prices during the latest monthly review of fuel prices last week.

During the review, EPRA kept the price of petrol unchanged but lowered the cost of diesel and kerosene by Ksh2 per litre, which provided slight relief to consumers.

However, the cost of kerosene is now Ksh203.06 ($1.35) per litre at the pump, up from Ksh145.94 ($0.96) in November last year, while petrol has risen to Ksh217.36 ($1.43) per litre from Ksh177.3 ($1.16) last year, and diesel now retails at Ksh203.47 ($1.33) per litre, up from Ksh162 ($1.06).

The regulator’s reliance on the levies means that it is usually hit hard by any reduced demand for fuel and electricity because it directly reduces its revenue collections. Therefore, the proposal to double the levies will have a significant impact on fuel and electricity prices if it is passed.

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In 2022 Indonesia produced 687 million tonnes of coal and exported 494 million tonnes, as per the minister.

Production in 2022 was higher than the target of 663 million tonnes despite an export ban at the start of the year that caused some miners to hold back output, as well as heavy rains that disrupted operations.

According to shipping data from consultancy Kpler, Indonesia’s exports to India, South Korea, Taiwan and the Philippines, all rose in 2022, while shipments to its biggest market, China, dipped in 2022.

The country’s domestic coal consumption is estimated at 177 million tonnes in 2023, down from 193 million tonnes in 2022.

“There are a number of efficiency programmes that we must carry out to reduce carbon emission from coal power plants,” Arifin Tasrif said, while explaining the lower estimate.

Coal-fired power makes up more than 50% of Indonesia’s energy supply and the government in 2022 set a more ambitious target to cut emissions by 31.89% on its own, or by 43.2% with international support, by 2030. The country also aims to reach net zero emissions by 2060.

Arifin Tasrif expects that coal prices will remain elevated in 2023 after 2022’s record prices, caused by supply disruptions from the Ukraine war.

“Coal prices are expected to still hold up well in 2023 because of global energy (supply and demand) balance problems that still need some support from coal,” he told reporters.

Arifin Tasrif also said the country consumed 10.45 million kilolitres of biodiesel made from palm oil in 2022, and is targeting consumption of 13 million kilolitres in 2023.

Indonesia’s government-set monthly coal benchmark price peaked at USD 330.97 per tonne in October 2022. It was at USD 305.21 per tonne in January 2022.

However, it banned coal export twice in that year, saying it was falling short of its domestic targets. The ban came when the European Union started its phased-in restriction on Russian energy supplies, especially coal imports.

The world’s top palm oil producer is also expected to implement a ‘B35’ programme in February 2023, which would mandate that diesel fuel contains 35% palm oil, up from the current level of 30%.

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Nitrogen Oxides (NOx) and other toxic particles cause pollution responsible for nearly 400,000 premature deaths due to cardiovascular and respiratory trouble each year in the EU.

Clean air campaigner Peter Erben told Agence France-Presse (AFP) “The air is bad here, you cough and you get a scratchy throat, especially in winter. We want immediate action, and there is no more immediate action than reducing traffic.”

Germany, France and Italy hope to take legal action in order to ensure air quality control. Last year 70 populous cities in Europe largely suffered from nitrogen dioxide levels higher than EU limit, according to Daily Sabah Automotive News. Munich, Stuttgart and Cologne were listed as highly active cities in this context.

“It’s a question of jurisdiction: can or must a state act, or is it up to the federal government to do it?” Baden-Wuerttemberg transport minister and a member of the Ecologist Greens Winfried Hermann told AFP. “We can’t limit people’s freedom, we can’t dispossess diesel owners.”

A favorable ruling from the highest administrative court to ban diesel vehicles will certainly impact air quality. Association of German Cities Chief Helmut Dedy said, “I would be very surprised if we escape diesel bans.”

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In the last 12 months, Fossil Group doubled its points of distribution for its connected devices and more than doubled its sales of wearables. Google continues to be a key strategic partner for the company, supporting the expansion of products powered by Android Wear 2.0. The expansion announcement further cements Fossil Group and Google as leaders in fashion-first smartwatches.

“Today our wearables segment is the fastest-growing part of our business,” said Greg McKelvey, chief strategy and digital officer at Fossil Group. “Customer demand is strong and getting stronger, and we’re just on the front end of this business evolution. Clearly, this distinct combination of the best design and the best tech is winning with fashion-conscious consumers, especially our female customers who were long neglected by other wearables brands.”

Earlier this year, Fossil Group introduced its 2017 touchscreen smartwatch line-up, all of which are compatible with both iOS and Android phones. All feature stunning full-round AMOLED displays that preserve the integrity of sophisticated watch design with crystal-clear illumination and crisp resolution. Game-changing improvements in hardware design mean watch form factors are thinner, sleeker, and more comfortable than ever before, and even more appealing to the female customer.

“Our partnership with Fossil Group has been a driving force for the growth of Android Wear’s device portfolio, which has allowed us to offer users choices and diversity,” said David Singleton, vice president of Android engineering at Google. “We are thrilled to continue the partnership into 2018 and implement new ways to connect fashion and technology, leveraging the flexibility of Android Wear and the design capabilities of Fossil Group and its brands.”

Powered by Android Wear 2.0, Fossil Group’s 2018 touchscreen smartwatches will continue to be compatible with both iOS and Android phones and allow users to customize key information to appear on their watch face, create shortcuts to play music, hail a ride, or monitor activity goals. Additionally, third-party apps can be downloaded through the on-watch Google Play™ Store. Customers will continue to be able to personalize watch faces by choosing from thousands of branded dial designs and custom color combinations to best fit their personal style.

Brands with new Android Wear smartwatches launching in fall or holiday 2017 include:

• Diesel – The first Diesel On Full Guard touchscreen smartwatch will be available for presale August 29, with the entire collection globally available September 25.
• Emporio Armani – The first Emporio Armani Connected touchscreen smartwatch is the epitome of sophistication, combining classic watch design with innovative technology. The smartwatch – available September 14 – features 11 interchangeable straps and a Saved Faces watch app, which allows you to take your watch from day to night with leather, silicone and stainless steel straps.
• Fossil – Fossil launches its first full-round touchscreen smartwatches, Fossil Q Venture and Fossil Q Explorist. These sleeker smartwatches feature stunning OLED displays and exclusive new watch apps. New styles are now available in select Fossil stores and on Fossil.com.
• Michael Kors – The Michael Kors Access Sofie touchscreen smartwatches were developed with women in mind and feature a dazzling, sleek casebody and screen. The Michael Kors Access Grayson touchscreen smartwatch is designed for the sophisticated man on the go with a stainless steel casebody and oversized screen. All new Michael Kors Access touchscreen smartwatches will be available globally September 25.
• Misfit – Misfit Vapor, which includes heart rate monitoring, standalone music functionality, and is swim proof to 5ATM, will be available in October.
  New hybrid smartwatch styles from Armani Exchange, Chaps, Emporio Armani, Diesel, DKNY, Fossil, kate spade new york, Marc Jacobs, Michael Kors, MICHELE, Misfit, Relic, Skagen and Tory Burch will also hit stores during the fall and holiday season.

By the end of 2017, Fossil Group will have launched more than 300 connected watch styles across 14 brands. The devices are now also active in 50 countries and 21 languages.

Fossil Group offers more hybrid and touchscreen smartwatch options than any company in the world. The company is featuring new wearables on display at IFA 2017 in Berlin, Germany at booth 216.

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French manufacturer Renault SA took advantage of market leader Volkswagen AG’s diesel emissions scandal to leap from third place to second. Deliveries at Renault grew 12 percent, almost twice the market rate, as the company drew buyers with an updated line-up, including a new Megane hatchback.

The positive trend has proved that despite Brexit and the Italian referendum, consumer confidence remains and demand is pushed up by a recovering economy.In 2016, new passenger car registrations showed a consistent increase. Italy (+15.8%) and Spain (+10.9%) had the strongest growth in demand during the year, followed by France (+5.1%), Germany (+4.5%) and the UK (+2.3%).

Demand for passenger cars in Europe improved noticeably during the first nine months of 2016 (+4.9%), accounting for 23.6% of the global market. The EU region contributed significantly to the positive global picture, mainly thanks to better macroeconomic conditions, which directly improved internal demand. With 11.2 million passenger cars sold in the EU, results were 8.0% higher than in the same period last year. European passenger car production increased (+3.4%) in the first three quarters of 2016, this was mainly the result of high domestic demand.

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