🌬️ Energy Futures #31

HolonIQ's energy futures coverage for the week ahead.

Our Climate Tech coverage has grown significantly, and due to popular demand, we're splitting it into weekly Energy Futures, Enviro Futures, Infra Futures, and Mobility Futures newsletters over the coming weeks.

This newsletter is 'Energy Futures,' and you can update your subscriptions to any of the other weekly newsletters here.

Questions we'll look to address in Energy Futures include those around global elections and what they mean for energy markets, how far and when is peak demand for fossil fuels, the roadmap for energy transition and supply chain risks for critical minerals, among others.

Happy Monday 👋

While several renewable energy investments have taken place this week, Petronas and YFP, the Malaysian and Argentinian companies investing a sum of $30B in building LNG plants in Argentina, take the spotlight. This initiative, however, will result in the LATAM region's reliance on fossil fuels increasing while ensuring energy security and hindering the progress of renewable energy transition. The importance of grid modernization is becoming more prevalent in regions and countries such as China, the US, and the EU, given the rapid renewable energy transition. The US Department of Energy responded to the looming challenge with a $2.2B investment to modernize its grid, enhancing the country's ability to accelerate the stagnated energy transition due to the lack of modern grid infrastructure.

🔌 Power

🤝 Petronas and YPF to Develop Massive LNG Project in Argentina. Petronas and YPF, the Malaysian and Argentinian energy companies, chose Río Negro province in Argentina to develop a joint $30B LNG project to liquefy and export gas from Vaca Muerta.

🎐 $3.8B Offshore Wind Farm Planned for West Cumbria. Green Finance Community Hub unveiled plans for a $3.8B offshore wind farm called Project Collette off the coast of West Cumbria that could create hundreds of jobs and power up to one million homes.

🌬️ Taiwan Awards 2.7 GW Offshore Wind Capacity. Taiwan's Ministry of Economic Affairs announced the winners of its latest offshore wind tender, awarding a total of 2.7 GW of capacity to five projects involving companies like Synera Renewable Energy Group, Shinfox, Copenhagen Infrastructure Partners, Corio, TotalEnergies, and Enervest.

📦 Energy Storage

🔌 DOE Allocates $2.2B for Grid Modernization. The Department of Energy is providing $2.2B in funding for high-voltage transmission projects to upgrade the nation's power grid. This move by the US government aims to support grid modernization efforts.

⚡ India Approves 2.6 GW of Pumped-Storage Hydropower Projects. The Indian government approved the construction of two large pumped-storage hydropower projects totaling 2.6 GW of capacity, which are being developed by state utilities KPCL and OHPC as part of its renewable energy initiatives.

🔋 Senator Tester Secures $700M to Bolster Montana's Power Grid. U.S. Senator Jon Tester secured $700M in funding to construct the North Plains Connector project, which aims to strengthen Montana's power grid and reduce energy costs.

💰 Energy Deals

💰 Occidental Completes $12B Acquisition of CrownRock. Occidental Petroleum announced that it had closed its $12B acquisition of CrownRock, L.P., a deal that was announced in December.

💨 Quantum to Acquire Cogentrix Energy for $3B. Quantum is acquiring Cogentrix Energy, a platform comprising 5.3 gigawatts of natural gas-fired power plants, for $3B.

💰 Adani Energy Solutions Raises $1B in QIP. Adani Energy Solutions Ltd (AESL) raised $1B through a qualified institutional placement (QIP) that saw participation from over 120 investors, with INQ Holdings, SBI funds, and Citigroup being the biggest buyers.

🔋 Aypa Power secures $323M funding for Idaho battery project. Aypa Power, a company backed by Blackstone Inc, has secured $323B in debt and tax equity financing to construct a 150-megawatt battery storage project in Idaho.

☀️ Obton Acquires Japanese Solar Developer BCPG for $292M. Obton, a company, acquired Japanese solar developer BCPG and its project portfolio for $292M.

Thank you for reading. Have a great week ahead!
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