Latest news with #PietroLombardi
Yahoo
13 hours ago
- Business
- Yahoo
Analysis-Europe's chemical industry seeks a lifeboat to stay in business
By Francesca Landini, Pietro Lombardi, Mohi Narayan and Arathy Somasekhar MILAN/NEW DELHI/HOUSTON (Reuters) -Europe's petrochemical industry is unravelling under a wave of plant closures after years of losses and a rapid expansion of global capacity led by China. High production costs and ageing plants have left European producers struggling, making the region increasingly dependent on imports of primary chemicals such as ethylene and propylene, the building blocks for plastics, pharmaceuticals and countless industrial goods. "While the rest of the world is building over 20 new crackers, Europe is sleepwalking into industrial decline," Jim Ratcliffe, founder of INEOS said during a recent event, referring to a unit in petrochemical plants. The billionaire made his money buying up petrochemical plants from BP and others, and along with other industry leaders has criticised a lack of political action. The European Commission responded this month with a pledge to support domestic production of chemicals deemed strategic for its industries, such as ethylene and propylene. It plans to expand state aid to modernise plants and require public tenders give preference to goods made in Europe - similar to the EU's 2023 legislation for metals and minerals. But the move may be too late to reverse the damage. "It's like being on the Titanic — you can't stay in denial. You must go and find a lifeboat," said Giuseppe Ricci, head of industrial transformation at Italian energy group Eni. Eni's chemical business Versalis accumulated over 3 billion euros ($3.5 billion) in losses in the last five years, Ricci said, as the firm shuts down Italy's last two steam crackers and invests 2 billion euros in bio-refineries and chemical recycling. Other global groups Dow, ExxonMobil, TotalEnergies, and Shell are also closing or reviewing their European chemical assets. Most of the planned closures target crackers - a unit that turns hydrocarbons into ethylene, propylene or other primary chemical materials. A document issued by eight EU countries on petrochemicals in March said that 50,000 jobs could be at risk due to potential closures of more crackers in Europe by 2035. The EU's plants are mainly small and mid-sized and have been running at an average utilisation rate below 80% - a level considered uneconomical. Up to 40% of the EU's ethylene capacity — which totals 24.5 million metric tons — is at high or medium risk of closure, including shutdowns announced since late 2024, according to consultancy Wood Mackenzie. "The proportion of European crackers at risk is much higher than in other regions," said Robert Gilfillan, head of plastics and recycling markets at Wood Mackenzie. While older European plants use naphtha as a raw material, the United States and the Middle East use cheaper feedstocks like ethane — a by-product of shale gas. NEW DEPENDENCY North America's ethylene capacity will grow to 58 million metric tons by 2030 from 54 million currently, according to consulting firm ADI Analytics. China, meanwhile, will add 6.5% to its ethylene capacity every year between 2025 and 2030, when it will produce nearly 87 million metric tons of ethylene annually, China National Chemical Information Centre CEO Huang Yinguo said in May. That's more than triple the EU's current capacity. Chinese producers are also building outposts in Southeast Asia to export to Europe and North America to bypass carbon taxes and Western tariffs on China-made goods. Japanese and South Korean firms, unable to compete, have kept utilization rates low since 2023, the countries' petrochemical industry bodies said in reports in May. European policymakers now face a stark choice: intervene decisively or watch the continent's chemical backbone erode. In their March document, countries including France, Italy and Spain called for a "Critical Chemicals Act", as latest EU data shows the region was a net importer of ethylene and propylene each year in the period 2019-2023. EU Industry Commissioner Stéphane Séjourné said Brussels will identify strategic supplies and production sites. "First and foremost, this is about sovereignty — keeping our steam crackers," he told reporters this month. But sovereignty comes at a cost. Most European crackers are over 40 years old, compared to just 11 years in China, according to Citi analyst Sebastian Satz. And ethylene production in Europe using naphtha costs $800 a metric ton, versus less than $400 a metric ton in the U.S. if ethane is used, and around $200 a metric ton in the Middle East with ethane, Eni said in a presentation published in March. 'SLEEPWALKING INTO DECLINE' Some companies are betting big on survival. INEOS, which operates one of Europe's most advanced petrochemical facilities in Cologne, is building a 4 billion euro ethane cracker in Antwerp — the first new cracker in Europe in roughly 30 years, with production capacity of 1.45 million metric tons a year of ethylene. The plant, due online in 2026, aims to rival Chinese production and meet local demand with a lower carbon footprint. In the Middle East, consolidation is creating new global giants. A $60 billion merger between Abu Dhabi National Oil Company and Austria's OMV will form Borouge Group, the world's fourth-largest polyolefins producer. The company plans to export polymers to Europe, competing directly with U.S. and Asian firms. Analysts say Europe's petrochemical production won't disappear entirely but will become the domain of a few dominant players. "Only major European companies with the market share to set competitive prices will continue to produce ethylene," said Enzo Baglieri, professor of operations and technology management at SDA Bocconi School of Management in Milan. ($1 = 0.8604 euros) (Additional reporting by America Hernandez in Paris, Shadia Nasralla in London, Marek Strzelecki in Warsaw, Julia Payne in Brussels; editing by Susan Fenton) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
14-07-2025
- Climate
- The Star
Heatwaves in Spain caused 1,180 deaths in past two months, ministry says
People walk during a heatwave, in Seville, Spain, July 2, 2025. REUTERS/Claudia Greco MADRID (Reuters) -High temperatures caused 1,180 deaths in Spain in the past two months, a sharp increase from the same period last year, the Environment Ministry said on Monday. The vast majority of people who died were over 65 and more than half were women, the data it cited showed. The most affected regions were Galicia, La Rioja, Asturias and Cantabria - all located in the northern half of the country, where traditionally cooler summer temperatures have seen a significant rise in recent years. Like other countries in Western Europe, Spain has been hit by extreme heat in recent weeks, with temperatures often topping 40 degrees Celsius (104 degrees Fahrenheit). The 1,180 people who died of heat-related causes between May 16 and July 13 compared with 70 in the same period in 2024, the ministry said in a statement citing data from the Carlos III Health Institute. The number of deaths increased significantly in the first week in July. The data shows an event "of exceptional intensity, characterized by an unprecedented increase in average temperatures and a significant increase in mortality attributable to heatwaves", the ministry said. In the period the data covers, there were 76 red alerts for extreme heat, compared with none a year earlier. Last summer, 2,191 deaths were attributed to heat-related causes in Spain, according to data from the Carlos III Health Institute. The data from Spain follows a rapid scientific analysis published on July 9 that said around 2,300 people died of heat-related causes across 12 European cities during a severe heatwave in the 10 days to July 2. It was not immediately clear whether the study conducted by scientists at Imperial College London and the London School of Hygiene and Tropical Medicine was using the same methodology as the Spanish data. (Reporting by Pietro Lombardi; Editing by Alison Williams)
Yahoo
18-06-2025
- Politics
- Yahoo
Spain's grid operator blames power plants for blackout, disputes miscalculation
By Pietro Lombardi MADRID (Reuters) -Spanish grid operator Redeia blamed power plants for the massive blackout that affected the Iberian peninsula in April, as it disputed a government report that said its failure to calculate the correct energy mix was a key factor. REE-owner Redeia's own investigation discovered anomalies in the disconnection of power plants on April 28 even though voltage in the system was within legal limits, operations chief Concha Sanchez told a news briefing on Wednesday. A combined-cycle plant that was supposed to provide stability to the system disconnected in the first seconds of the blackout when it should not have, while there was also an anomalous growth in demand from the transport network, she said. "Based on our calculation, there was enough voltage control capabilities planned" by Redeia, she said. "Had conventional power plants done their job in controlling the voltage there would have been no blackout." Aelec, which represents Spain's main electricity companies including Iberdrola and Endesa, said in a statement on Tuesday it agreed that voltage control was the main cause of the outage, but said that, as system operator, Redeia was ultimately responsible for controlling voltage. The government's report released on Tuesday said Redeia's miscalculation was one of the factors hindering the grid's ability to cope with a surge in voltage that led to the outage that caused gridlock in cities across the Iberian peninsula and left tens of thousands stranded on trains overnight or stuck in lifts. But Sanchez said the system was in "absolutely normal conditions" at noon just before the blackout and that adding another gas plant to the system to absorb additional voltage would have made no difference. Redeia, which is partly state-owned, will release its own full report on the causes of the outage, its chair, Beatriz Corredor, told the same news briefing. Corredor said she had absolute faith in Redeia's calculations and that the operator had complied with all procedures and rules.
Zawya
19-03-2025
- Business
- Zawya
UAE's Masdar in talks on $200mln solar power deal with Endesa, sources say
MADRID - Abu Dhabi renewable energy company Masdar and Spanish power utility Endesa are closing in on a deal that would see Masdar pay around $200 million for a 49.9% stake in a solar portfolio controlled by Endesa, according to two sources familiar with the deal and a document seen by Reuters. The deal for the roughly 450 megawatt portfolio builds on the existing partnership between the companies and would further expand Masdar's operations in Spain, a country it sees as key for its European growth. "While we do not comment on market speculation, we continue to explore opportunities in the region as we expand towards our global target of 100 gigawatts by 2030," a spokesperson for state-owned Masdar said. Endesa declined to comment. The deal would also fit with the strategy of Italy's Enel , Endesa's owner, of selling minority stakes in some projects to keep debt at bay while maintaining control of the assets. In July last year Masdar took a minority stake in a 2-gigawatt (GW) solar portfolio controlled by Endesa. In September it bought green energy company Saeta Yield from Canada's Brookfield in a $1.4 billion deal. Masdar is controlled by UAE's power and water firm TAQA, its National oil company ADNOC and sovereign wealth fund Mubadala Investment Company. The Masdar spokesperson referred to the previous deal with Enel, the acquisition of Saeta and that of a majority stake in Greek renewable energy company Terna as operations "further expanding our European footprint". (Reporting by Pietro Lombardi; editing by Aislinn Laing and Susan Fenton)
Yahoo
06-02-2025
- Business
- Yahoo
Valencia floods prompt race for funds to boost Spain's climate resilience
By Corina Pons and Pietro Lombardi MADRID (Reuters) - Spain is seeking European approval to repurpose more than a billion euros of post-pandemic recovery funds to make Valencia more resilient against climate change after the Mediterranean region suffered catastrophic heavy rains last year. The talks started a few weeks after torrential rains caused floods in October that killed over 220 people in commuter towns to the east of Valencia. Experts say the disaster was worsened by patchy flood defences, many of which had been earmarked for improvement works decades earlier. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Reallocated EU funds would be a small part of what companies such as Spain's Acciona, Sacyr and Cox Group expect to be a new wave of investment in the water business in Spain. Such companies have largely been active in countries facing water stress such as Saudi Arabia and Morocco, but now finding solutions for the problems at home presents opportunities for growth - as well alleviating some of the misery wrought on communities. Water investments have moved up the political agenda at a local and national level, industry insiders, corporate officials and experts told Reuters. Prime Minister Pedro Sanchez said in December that "Spain is one of the countries most vulnerable to climate change". The European Commission has determined that extreme weather events in Spain have cost it 7.7% of GDP over the last 40 years - three times the European average - with risks to critical sectors such as agriculture and tourism. Economy Minister Carlos Cuerpo said the EU funds Spain was seeking permission to repurpose would be used partly to repair damaged water systems in the Valencia region, as well as developing desalination plants in the face of prolonged droughts that damage its large agricultural sector. Negotiations with the European Commission on the allocation of 1.5 billion euros ($1.56 billion) previously assigned to other projects are still ongoing with no set end date, the Economy Ministry said. Spain has already allocated around 3 billion euros for water works out of the roughly 77 billion euros in European recovery funds disbursed by the bloc in the past four years, according to industry sources. Environment and Ecological Transition Minister Sara Aagesen told a congressional committee last month that the government was committed to funding the rebuilding of Valencia's water systems and completion of urgent hydrology works in the area. She also announced that her ministry would create a water consumption observatory and planned to double the budget for works to increase water supplies through reuse and desalination plants in the country. Aagesen's ministry declined to provide Reuters with further details of the projects, how they will be funded or their timeline for completion. COMPANIES EXPECT MORE INVESTMENT A PwC report in 2024 focused on Spain's investment in urban water systems found it had underspent by 5 billion euros a year due in part to limited state budgets, trailing other European countries such as Portugal, Italy, France and Germany. The urban water cycle is mainly related to the purification, supply, sewerage, treatment and reuse of water in urban environments. Eduardo Campos, who leads Sacyr's water business, said he expected the Valencia flood to be a turning point, adding of hydraulic and flood mitigation works like clearing riverbeds of debris: "These are necessary projects, (even if) they're expensive and not pretty." Sacyr is already evaluating works to restore sewage and water treatment networks damaged in the Valencia flood, Campos said, estimating that just the most urgent repairs will cost more than 350 million euros. Campos also said there was a lot of growth potential in Spain amid the growing need for reuse of wastewater and the digitalisation of water management. Manuel Manjon Vilda, chief of Acciona's water business, said there were plenty of potential water infrastructure projects in Spain. "What there hasn't been is the money or the political will to undertake an investment plan of 15 to 30 billion euros," he said, adding he expected these to become "a key concern ... executed as a priority". Even with heightened political will, new projects will still take time to come to fruition. Water projects generally take an average of at least three years to be approved, dragged out by slow coordination between national, regional and local administrations, according to the Spanish water company executives Reuters spoke to. While Valencia was hit by floods, the Mediterranean Coast from Catalonia to Gibraltar is suffering from deepening water shortages. In tourist hotspot Barcelona, authorities earmarked half a billion dollars last year for two desalination plants near the city's coast. In the southern Andalusia region, the world's olive oil capital, the regional government launched a 400-million-euro plan in November to more than double the water the region recycles by the end of 2027. ($1 = 0.9591 euros)
