2025-12-08 19:26

NextEra and Google to develop and power new data center campuses in the U.S NextEra partners with ExxonMobil for natural-gas power with carbon capture Meta and NextEra sign 2.5 gigawatts in power contracts Dec 8 (Reuters) - U.S. utility company NextEra Energy (NEE.N) , opens new tab has expanded its partnership with Alphabet's (GOOGL.O) , opens new tab Google Cloud to build new energy supplies for the company's operations across the U.S., the groups said on Monday. NextEra and Google currently have 3.5 gigawatts of electricity generation - enough to power about 2.5 million homes - in operation or contracted. Sign up here. As part of the new deal, the companies will develop multiple new large-scale data center campuses in the U.S. that will be built with new power plants. They did not specify how much extra capacity would be added, or financial details of the agreement. NextEra shares were down 1% by 1722 GMT, having risen in premarket trading. The agreement comes as U.S. electricity demand reaches record highs from the proliferation of data centers needed to train and roll out artificial intelligence. Without enough supplies readily available on the existing grid, giant technology companies are contracting to build new electricity sources to power their AI data center expansion. "We are positioning our company around bring-your-own-generation, and we are uniquely positioned to win this," NextEra CEO John Ketchum said at an investor conference. NextEra and Google Cloud also plan to launch an AI-powered product by mid-2026 that will help manage work in the field, predicting energy equipment problems and other functions aimed at increasing the reliability of the grid, the companies said. NextEra said it expects to add 15 gigawatts, or possibly much more, of new power generation for data centers by 2035. Also to serve that demand, NextEra will partner with ExxonMobil (XOM.N) , opens new tab to develop natural-gas-fired power plants for data centers that use carbon capture technologies. Plans with Exxon include an initial 1.2-gigawatt gas plant, which would be jointly marketed to data centers, that would be located near the oil major's carbon dioxide-carrying pipeline in the Southeast U.S., NextEra said. RENEWED INTEREST IN NUCLEAR POWER In October, NextEra announced that it would restart its shut Duane Arnold nuclear power plant in Iowa to power Google data centers under a 25-year power purchase contract. The technology industry's quest for massive amounts of electricity for AI processing has renewed interest in nuclear power supply, which includes restarting fully shut reactors, expanding the capacity of operating plants, and contracting for electricity from future small modular reactors. That electricity demand has also propelled the development of natural-gas-fired power, which is quicker to build than nuclear, but produces global warming emissions. NextEra said it expects to announce new natural-gas-fired power deals for data centers in 12–24 months. NextEra said it had also signed 11 power purchase agreements and two energy storage agreements with Meta Platforms (META.O) , opens new tab , totaling over 2.5 GW of energy contracts. The projects are scheduled to come online between 2026 and 2028. The utility has also reached an agreement with WPPI Energy to continue supplying 168 megawatts of the output from the Point Beach Nuclear Plant in Two Rivers into the 2050s. NextEra forecast higher adjusted profit in 2026 as well as the current year as it continues to benefit from the power demand surge. The company now expects adjusted earnings for 2025 of between $3.62 and $3.70 per share, compared with its prior view of between $3.45 and $3.70 per share. For 2026, it expects adjusted profit between $3.92 and $4.02 per share, compared with its prior view of between $3.63 and $4.00 per share. https://www.reuters.com/business/energy/nextera-energy-google-cloud-expand-deal-add-us-capacity-2025-12-08/

2025-12-08 14:35

BENGALURU, Dec 8 (Reuters) - The Swiss National Bank will keep its policy rate unchanged at zero for a second consecutive meeting on Thursday and through 2026 as inflation hovers near the bottom of its target range, according to most economists in a Reuters poll who said the risk of negative rates was low. Despite inflation slowing to zero, the low end of the central bank's 0-2% target, all but two of 40 economists polled by Reuters in the December 3-8 period expect the SNB to leave its key interest rate on hold on December 11. Two economists predicted a cut to -0.25%. Sign up here. The strong consensus partly results from Chairman Martin Schlegel's repeated assertion that the bar to cut rates below zero was high due to "undesirable side effects" and that the SNB would intervene in the foreign exchange market if necessary to ensure price stability. The SNB last held rates below zero for a seven-year period up until mid-2022 in an attempt to mute deflationary pressure also made worse by a typically strong currency often sought by investors and traders during periods of market turmoil. LOW RISK OF NEGATIVE POLICY RATE A strong majority of economists polled, 21 of 25, who gave forecasts through the end of 2026 said the policy rate would stay on hold. Only five predicted a quarter-percentage-point reduction sometime next year, compared to seven in the survey in September. The risk of the SNB adopting a negative policy rate was low, according to 14 of 17 economists, or more than 80%, who answered a separate question. That was a complete reversal from a poll taken in June when most said the risk was high. Only three economists in the latest poll said the risk of a negative policy rate was high. "I'd still say inflation is going to pick up over the course of 2026 but stay within the SNB's target range. From that perspective, there is no need to further cut rates," said Florian Germanier, an economist at UBS, who added that there was a risk of monthly inflation briefly turning negative. "The most likely trigger for ongoing deflationary pressure would be via the FX channel," Germanier added. "If you were to see phases of strong safe-haven flows, in these situations it's quite possible the Swiss franc temporarily appreciates against the euro. This move could be somewhat concerning for the SNB, and we wouldn't rule out the SNB to act, but prefer FX interventions." The central bank stepped up its currency interventions in April to counter a safe-haven franc rally driven after the U.S. imposed sweeping tariffs on its trading partners, including Switzerland, which was hit with a 39% tariff, one of the most punitive rates imposed by Washington. The currency has largely stabilised since then, rising 0.4% in November, allowing the central bank to ramp up its reserves to the highest level since February. A separate Reuters FX survey taken earlier this month predicted the franc would rise 0.8% against the euro to 0.945 in a year. "We never expected negative rates ... but why consensus and markets are now expecting no more rate cuts has a lot to do also with the SNB's communication. They said they will tolerate some negative inflation readings in the short term as long as the medium-term inflation outlook is still solid," said Sophie Altermatt, an economist at Julius Baer. Inflation was expected to average 0.2% this year and 0.4% the next, according to the poll. The Swiss economy is forecast to expand 1.2% in both years, up from 0.8% in 2024. The growth outlook was unchanged from September's survey despite the recent U.S. move to lower its tariffs on Swiss imports to 15%. The central bank has said this move is not a "game changer" as only 4% of exports were affected by higher tariffs. "We have growth holding up overall, and it's particularly driven by domestic consumption, so this part of the economy is doing fine," Altermatt said. (Other stories from the Reuters global economic poll) https://www.reuters.com/business/snb-hold-policy-rate-zero-through-2026-negative-rates-unlikely-say-economists-2025-12-08/

2025-12-08 13:00

JOHANNESBURG, Dec 8 (Reuters) - South Africa is working on ways to support its ferrochrome industry, state power utility Eskom said on Monday, as it announced an agreement with Samancor Chrome and the Glencore-Merafe Chrome Venture. Eskom said in a statement that the memorandum of understanding with the two companies followed constructive engagements on Friday with the country's minister of electricity and energy and trade unions. Sign up here. Samancor Chrome and the joint venture between Glencore (GLEN.L) , opens new tab and Merafe Resources (MRFJ.J) , opens new tab have said they are considering job cuts because of pressures including the cost of electricity. Energy regulator Nersa is currently reviewing an interim power tariff adjustment for the two firms, and the government is working on a longer-term mechanism to support competitive pricing for the ferrochrome sector, Eskom said. South Africa holds approximately 80% of the world's known chrome ore reserves, according to Glencore, positioning the country as a key player in global ferrochrome production. Once an interim tariff for Samancor Chrome and the Glencore-Merafe Chrome Venture is approved the companies have committed to suspend layoff processes and bring back about 40% of their furnace capacity while a long-term solution is being developed, Eskom added. https://www.reuters.com/sustainability/boards-policy-regulation/south-africa-is-working-ways-help-ferrochrome-firms-eskom-says-2025-12-08/

2025-12-08 12:55

Dec 8 (Reuters) - Antero Resources (AR.N) , opens new tab said on Monday it would buy privately held HG Energy in a deal valued at $2.8 billion, as the U.S. natural gas producer looks to expand its footprint. The acquisition aims to add reserves at a time when U.S. natural gas futures have jumped to almost three-year highs, supported by winter heating demand, heavy LNG exports and accelerating consumption from AI-driven data centres and other power-hungry industries. Sign up here. U.S. natural gas futures were over $5 per million British thermal units last week, their highest in nearly three years. The deal is expected to close in the first half of 2026, subject to regulatory approvals. https://www.reuters.com/business/energy/antero-acquire-privately-held-hg-energy-28-billion-deal-2025-12-08/

2025-12-08 12:45

EU plans to cut bureaucracy for companies and industry Draft plan targets environmental reporting rules Draft proposal is to be published on Wednesday BRUSSELS, Dec 8 (Reuters) - The European Commission has drafted proposals to cut back more EU environment laws, targeting requirements for industries to report on their pollution and waste, a draft EU document seen by Reuters showed. The draft proposal, due to be published on Wednesday, is the latest part of the European Union's "omnibus" effort to reduce bureaucracy for businesses and cut regulations that industries say hurt their profitability. Sign up here. ENVIRONMENTAL MANAGEMENT SYSTEM Europe's environmental regulations are among the world's strictest, covering such things as CO2 emissions, water quality and bans on harmful chemicals. The Commission, the EU executive body, will propose ending an EU requirement for individual industrial facilities and livestock farms to have an "environmental management system" (EMS) detailing their actions to reduce pollution and waste, the draft document said. Instead, a company will be allowed to do one slimmed-down EMS covering all its sites and this will scrap some existing EMS requirements - for example, to disclose the use of hazardous chemicals at facilities. The proposal would also scrap a requirement for industrial facilities to have a "transformation plan" to align them with climate goals, and livestock and fish farms would no longer have to report their water and energy use. Other parts of the proposal would simplify environmental assessments for industrial and energy projects. "This simplification package... aims to ensure that the environmental goals of the European Union are achieved in a more efficient, less costly and smarter way," the draft said. A Commission spokesperson declined comment on the draft, which could change before publication. Proposals to change EU laws would require approval from EU countries and governments. CUTTING ADMINISTRATIVE COSTS Taken together, the plans could cut administrative costs by around 1 billion euros per year, the draft said. Brussels has set a goal of cutting companies' reporting burdens by 25% by 2029, and has faced calls from some businesses and governments to weaken green measures to help them compete with rivals in China and the United States. The EU has already this year delayed its anti-deforestation law, exempted thousands of companies from sustainability reporting and due diligence rules, and weakened the green conditions attached to farming subsidies. Environmental campaigners and some businesses and investors have accused Brussels of gutting laws which help manage risks from climate change and drive capital to the green transition. The EU has maintained its core climate change targets, but faces pressure from governments to weaken some policies to reduce CO2 emissions - including the bloc's 2035 ban on new CO2-emitting cars. https://www.reuters.com/sustainability/climate-energy/eu-weaken-more-environment-reporting-rules-draft-document-shows-2025-12-08/

2025-12-08 12:23

Cargo shipped from Baltic Sea to Beihai LNG terminal in China Novatek also uses Beihai outlet for Arctic LNG 2 cargoes MOSCOW, Dec 8 (Reuters) - Russian energy giant Gazprom (GAZP.MM) , opens new tab has delivered a liquefied natural gas cargo from Portovaya LNG plant to China, in the first such shipment since the United States introduced sanctions against the project in January, LSEG data showed on Monday. Gas carrier Valera, formerly known as Velikiy Novgorod, brought the cargo from the Baltic Sea's plant to the Beihai LNG terminal, LSEG ship-tracking data showed. Sign up here. Russia's largest LNG producer Novatek (NVTK.MM) , opens new tab uses the same loading outlet in China for cargoes from Arctic LNG 2 plant. The tanker was loaded at Portovaya on October 28 and has arrived at the southern Chinese port of Tieshan, the data showed. Martin Senior, head of pricing at Argus agency, said exports from Portovaya to China during winter could be limited to around one cargo a month due to the terminal’s limited size and lack of carriers linked to the terminal. "This is lower than expected exports from Arctic LNG 2, which could export around three cargoes a month despite higher ice buildup compared to Portovaya, because of a greater number of carriers as well as a higher terminal capacity," he said. The small-scale Portovaya LNG plant, which has a production capacity of 1.5 million tons of LNG per year, started operations in September 2022. Exports were suspended in February this year following the introduction of the U.S. sanctions , opens new tab over Ukraine to directly disrupt Russia's ability to produce and export LNG and reduce Russia's revenue from LNG exports. In the early stages of its operations, most cargoes from Portovaya had been delivered to Turkey and Greece. Supply markets subsequently widened to China, Spain and Italy. Before the sanctions, the plant used to ship two cargoes a month on average during winter. Since March 2025 it has sent only one cargo per month to the Russian western exclave of Kaliningrad. https://www.reuters.com/business/energy/gazprom-delivers-first-post-sanctions-lng-cargo-portovaya-china-data-shows-2025-12-08/