2025-12-05 19:34
Dec 5 (Reuters) - U.S. power company Constellation Energy (CEG.O) , opens new tab said on Friday it has reached a resolution with the U.S. Department of Justice on the conditions required to complete the previously announced $16.4 billion acquisition of Calpine Corporation. The Federal Energy Regulatory Commission also approved the deal, on the condition Calpine divests four of its generating assets in the Mid-Atlantic region. Sign up here. The deal, announced in January, is one of the biggest acquisitions in U.S. power industry, coming at a time of rising electricity demand, driven by the proliferation of energy-hungry AI data centers and the electrification of transportation and buildings. In July, Constellation had received a regulatory approval from FERC following earlier approvals by the New York Public Service Commission and the Public Utility Commission of Texas for the acquisition. As part of the agreement, Constellation will divest three natural gas-fired power plants - its York 2 plant in Pennsylvania, the Jack Fusco Energy Center near Houston, Texas, and a minority interest in the Gregory Power Plant near Corpus Christi, Texas. The DOJ said in a statement the divestitures address concerns the acquisition could harm competition and increase prices for consumers in the Electric Reliability of Texas and PJM Interconnection grids. https://www.reuters.com/business/energy/constellation-reaches-agreement-with-us-department-justice-calpine-acquisition-2025-12-05/
2025-12-05 19:33
Dec 2 (Reuters) - (This Dec. 2 story has been corrected to say pounds, not euros, and to change the USD conversion figure, in paragraph 2) TAE Technologies, a private company backed by Alphabet's (GOOGL.O) , opens new tab Google and Chevron (CVX.N) , opens new tab, said on Tuesday it had formed a joint venture with the United Kingdom's nuclear agency to develop neutral beams for nuclear fusion. Sign up here. Under the agreement, the UK Atomic Energy Authority will make an equity investment of 5.6 million pounds ($7.47 million) in the new venture called TAE Beam UK. Nuclear fusion is a nascent technology that aims to generate electricity by harnessing the process that powers the sun. It offers the vision of abundant energy without pollution, radioactive waste or greenhouse gases. With nuclear power garnering renewed interest, countries such as Italy, the UK, China and the U.S. are looking into nuclear technology firms to enable application across industries including healthcare and defense. TAE Technologies said the partnership will enable it to develop and commercialize next‑generation neutral beam systems for fusion and related applications in a more cost‑effective manner. The company added that it will design, develop and manufacture neutral beams for fusion, while adapting its accelerator technology for cancer therapy, food safety and homeland security. "Together, we're building critical infrastructure for the fusion supply chain and ensuring that the U.S.-UK partnership can together remain central to the fusion economy of the future," CEO Michl Binderbauer said. The project is expected to deliver the first short-pulse beams within 18 to 24 months, the company said. ($1 = 0.7501 pounds) https://www.reuters.com/world/uk/google-backed-tae-technologies-forms-jv-with-uks-nuclear-agency-2025-12-02/
2025-12-05 19:15
BRUSSELS, Dec 5 (Reuters) - Six European Union countries have on Friday asked the European Commission to water down an effective ban on the sale of internal combustion engine cars slated for 2035 ahead of the release of a new auto package next week. The countries have asked the EU Commission to allow the sale of hybrid cars or vehicles powered by other, existing or future, technologies "that could contribute to the goal of reducing emissions" beyond 2035, a joint letter seen by Reuters showed on Friday. Sign up here. The letter was signed by the prime ministers of Bulgaria, the Czech Republic, Hungary, Italy, Poland and Slovakia. They also asked for low-carbon and renewable fuels to be included in the plan to reduce the carbon emissions from transportation. The European Commission is set to present a package of measures to support European automakers, such as an easing of the effective ban on internal combustion engines from 2035. The package is due to be published on Dec. 10, but could be delayed. Since they adopted a regulation that all new vehicles from 2035 should have zero emissions in March 2023, EU countries are now having second thoughts. Back then, the outlook for battery electric vehicles was positive, but carmakers' efforts have later collided with the reality of lower-than-expected demand and fierce competition from China. "We can and we must pursue our climate goal in an effective way, while not killing our competitiveness in the meanwhile since there is nothing green in an industrial desert," the prime ministers said in their letter. https://www.reuters.com/business/retail-consumer/six-countries-push-eu-allow-hybrid-cars-other-technologies-beyond-2035-2025-12-05/
2025-12-05 18:51
LONDON, Dec 5 (Reuters) - The G7’s proposed plan to bar tankers from hauling Russian oil ups the ante in the West’s economic stand-off with Moscow, but the ultimate bite hinges on whether governments will ratchet up punishments on those skirting sanctions. And with Russian President Vladimir Putin working tirelessly to strengthen Moscow’s own alliances, including India and China, the West may need to act quickly. Sign up here. Group of Seven countries and the European Union are discussing plans to impose a full maritime services ban on Russian oil transportation, restricting Moscow's access to a large pool of tankers, Reuters reported on Friday. The initiative, which could take effect by early 2026, will end the G7 price cap introduced in late 2022. That mechanism allows buyers to access Western shipping and insurance only if they purchase Russian crude below the set cap. The aim was to curb the oil revenue that helps finance Russia's war in Ukraine, while keeping global oil supply flowing. Russia produced around 9.3 million barrels per day (bpd) in October, around 9% of global supply, of which over half was exported, according to the International Energy Agency. The G7 governments appear willing now to bite deeper into Russia's oil exports, yet the ban does not mean they will stop. Russian producers have in recent years developed efficient ways to circumvent Western financial systems and sanctions, primarily using so-called “shadow fleet” tankers. In October, only 38% of Russian crude oil exports were shipped on G7 compliant tankers, according to data from the Centre for Research on Energy and Clean Air (CREA). Expanding the shadow fleet and replacing capacity lost to the new G7 restrictions appears doable as there are plenty of old vessels that Russia and its partners can purchase, including from Western shipping companies. How the West will respond remains the big unknown. A PRICE FOR EVERY RISK The market for Russian crude is quite concentrated. Over 90% of Russian seaborne crude oil exports of around 3.5 million bpd so far this year have gone to China, India and Turkey, according to shipping analytics firm Kpler. The question is whether these countries will continue buying the oil under the new G7 restrictions. The answer is probably yes - at the right price. Russian sellers will need to offer significant discounts to global oil prices to compensate for the higher risks and greater logistical complexity associated with dark fleet tankers, including ship-to-ship transfers. In effect, this is already happening under the current price cap. The risk, then, is that removing the price cap will actually simplify the calculus for Russian crude buyers, ultimately reducing the discount Russia is forced to offer, especially if oil prices rise. MEASURES WITH BITE The effectiveness of the new G7 proposal therefore hinges on Western governments’ willingness to enforce these new restrictions. But here, too, there is reason to be sceptical. Western governments have ratcheted up economic pressure on the Kremlin in recent months. Several G7 members in September lowered the price cap on crude oil to $47.60 a barrel from $60. The EU has also announced plans to ban imports of refined products made from Russian crude starting next year, and on Wednesday, the bloc agreed to phase out Russian gas imports by 2027. Crucially, U.S. President Donald Trump in October imposed sweeping sanctions on Russia's two largest oil companies, Rosneft (ROSN.MM) , opens new tab and Lukoil (LKOH.MM) , opens new tab. Trump had earlier imposed a 25% tariff on India over its purchases of Russian crude, as the two countries struggle to hammer out a trade deal. Yet despite all this, Russian exports have remained largely stable, while Indian and Chinese imports of Russian crude have continued, albeit at reduced levels. Indian imports of Russian crude are set to drop to 1.38 million bpd in November and December from an average of 1.75 million bpd in the first ten months of the year, according to Kpler. China has seen a similar trend. Yet, actual sales of Russian oil into India, China and other countries may end up far higher, judging by recent history, as Russian crude is often blended mid-ocean with other grades, rebranded and then gradually imported. THE RIGHT APPROACH Enforcement will depend on how much pain Western governments are willing to tolerate - whether by constraining the supply of Russian crude, which would push up oil prices, or by risking retaliatory measures from buyers of Russian oil. Isaac Levi, energy analysis team lead at CREA, says that the new G7 service ban "is the right approach" since most Russian crude oil is already under U.S. sanctions, effectively rendering the price cap moot. The new rules will only be effective if maritime coastal states – such as those in the Baltic and Nordic regions through which most Russian oil is shipped – intensify vessel inspection and detention of non-compliant tankers, he said. "We're not seeing enough deterrence and vessel detention. Until non-compliant vessels get detained, the trade will continue," Levi said. The tightening of the G7 restriction on Russia's oil industry, which accounts for around a quarter of federal budget proceeds, will certainly complicate life for the country's oil producers, likely resulting in lower revenue. But as time goes by, the West seems to be losing its influence in this battle. Putin and Indian Prime Minister Narendra Modi agreed on Friday to expand and diversify trade beyond oil and defence, despite Western pressure on New Delhi to scale back its ties with Moscow. To truly turn the tables, Western governments led by the U.S. will also need to be willing to take some financial pain – and that could be the ultimate sticking point. Want to receive my column in your inbox every Monday and Thursday, along with additional energy insights and links to trending stories? Sign up for my Power Up newsletter here. Enjoying this column? Check out Reuters Open Interest (ROI), , opens new tabyour essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis. Markets are moving faster than ever. ROI , opens new tab can help you keep up. Follow ROI on LinkedIn , opens new tab and X. , opens new tab https://www.reuters.com/markets/commodities/g7s-russian-oil-tanker-ban-shows-teeth-bite-is-doubt-2025-12-05/
2025-12-05 18:44
Carbon charge on aluminium imports into Europe starts in January Cost inflation will be 'death by a thousand cuts' for clients, Constellium CEO says Dec 5 (Reuters) - The European Union should drop a looming carbon border tax that risks pushing its aluminium sector into long-term decline by inflating costs and benefiting more polluting overseas suppliers, the CEO of aluminium products maker Constellium said on Friday. The EU's Carbon Border Adjustment Mechanism, which will impose a levy on imports of a handful of commodities starting in January, is intended to shield European producers against cheaper rivals in countries with looser climate laws. Sign up here. But industry representatives see it as deeply flawed and hope the EU's final adjustments to the mechanism, due to be released this month, will address their concerns. "The first thing to do about CBAM is just to eradicate it, get rid of it," said Jean-Marc Germain, the chief executive officer of Paris-based Constellium, one of the world's largest suppliers of aluminium products for aviation, car making and packaging. "The core of the issue is the competitiveness of Europe. We are shooting ourselves in the foot knowingly," he told Reuters. Euro zone manufacturing activity slipped into contraction territory in November. Constellium mostly buys European aluminium, which is not subject to a CBAM charge, for processing at its factories in the region. But the upcoming tax - coupled with concerns over supply from smelters in Iceland and Mozambique - has nonetheless pushed up European premiums for physical metal to a 10-month high. The premium will rise to the cost of the last ton of aluminium needed to satisfy demand, meaning all metal will become more expensive regardless of its origin, Germain said, warning that the cost inflation would be "death by a thousand cuts" for Constellium's industrial customers in Europe. Loopholes in the scheme mean overseas suppliers could avoid CBAM by shipping in scrap, or could send low-carbon aluminium to Europe and keep producing high-carbon metal for other regions. "It doesn't do anything for the planet," Germain said. CBAM's impact will not be immediate but could eventually see companies invest elsewhere and shut European capacity, he said. "It's not one of those things where all of a sudden you turn the lights off. It's going to be a gradual decline." https://www.reuters.com/sustainability/climate-energy/eu-risks-slow-demise-aluminium-industry-if-carbon-tax-not-scrapped-constellium-2025-12-05/
2025-12-05 16:40
Lula's central bank nominations delayed amid strained relations with Senate Two of central bank's nine board seats may be empty at January meeting Markets awaiting potential interest rate cuts amid economic slowdown BRASILIA, Dec 5 (Reuters) - Brazilian President Luiz Inacio Lula da Silva is not expected to submit his next two nominees for the central bank's rate-setting board until next year, three sources familiar with the matter told Reuters, leaving only seven of the nine seats on the committee filled for the January interest rate decision. The last two central bank directors appointed by Lula's predecessor reach the end of their terms this month, and the leftist Brazilian leader has been slow to name their replacements. His government's relations with the Senate, which must confirm the nominations, also are strained by a standoff over Lula's latest Supreme Court nominee. Sign up here. Although Diogo Guillen and Renato Gomes could legally stay on the bank's rate-setting committee, known as Copom, until their successors take office, they are expected to step down, two of the sources said on condition of anonymity. Their responsibilities would then be temporarily taken up by other members of the rate-setting board - all named by Lula. Copom has never made a policy decision with two empty seats, according to public records of meeting minutes since 1998. The central bank, Finance Ministry and presidential palace did not immediately comment on the matter. Markets are watching closely to see if the central bank will start a much-anticipated cycle of interest rate cuts at its January 27-28 meeting or delay the easing until March. Latin America's largest economy has shown signs of cooling off, with GDP growing only 0.1% in the third quarter from the previous three-month period. The central bank has held its key policy rate at 15% since July, the highest level in nearly two decades, and is expected to maintain that stance at its policy meeting next week, according to a Reuters poll of economists. Central bank chief Gabriel Galipolo has cited inflation expectations that remain above the 3% target to justify the current monetary policy position. Once nominated by the president, central bank board candidates must undergo a confirmation hearing in the Senate's economic affairs committee, followed by a full floor vote. "I haven't been approached about central bank nominations," Senator Renan Calheiros, a government ally who chairs that committee, told Reuters. Senator Jaques Wagner, the government's leader in the upper house, said the administration "must be working on the issue, but nothing has reached me." This year's crowded legislative calendar ends on December 22. Lula's agenda is facing headwinds in the Senate after tapping - but not yet formalizing - his Solicitor General Jorge Messias for a Supreme Court seat, angering Senate President Davi Alcolumbre, who had pushed for another selection. Brazil's Congress will resume its schedule on February 2. Without Senate approval this year, new directors could only join Copom in time for its March 17-18 meeting, the second one of 2026. HANDFUL OF POTENTIAL CANDIDATES Two of the sources said the government itself has not settled on its central bank nominees. One option would be for the central bank's international affairs director, Paulo Picchetti, to shift into Guillen's economic policy role, one source said. That job is one of the bank's most strategic positions, responsible for the technical assessment of economic conditions that underpin rate decisions. Picchetti is close to Finance Minister Fernando Haddad and has a strong background in measuring inflation. The same source said the government may tap a career central bank staffer to fill the role vacated by Gomes, who is in charge of the organization of the financial system. Potential candidates for that job include Gomes' chief of staff, Angelo Duarte; Carolina Bohrer, the department head at the central bank; and Rogerio Lucca, the central bank's executive secretary who some see as close to Galipolo. The central bank and government declined to comment on potential nominees. https://www.reuters.com/world/americas/two-brazils-nine-central-bank-seats-likely-be-unfilled-january-meeting-sources-2025-12-05/
