Gas price surge opens door for green hydrogen; US banks' exposure to Russia

Welcome to The Daily Intel, a roundup of exclusive news and analysis from S&P Global Market Intelligence, curated by our journalists.

Editor's Pick

Green hydrogen sees opportunity in European gas price surge

Surging gas prices in light of the escalating war in Ukraine are bolstering arguments for the green hydrogen industry in Europe, which is now seen to have a price advantage over fossil fuel-sourced grey or blue hydrogen alternatives.

The price of natural gas-derived products such as ammonia, a key ingredient in fertilizer production, is now up to three times higher than it was a year ago, according to analysts at Bloomberg NEF. "This has opened the door for 'green' hydrogen and ammonia produced from renewable electricity to compete," the analysts said.

Financials

Russia strains on US banks surface despite modest direct exposure

Claims on Russia among U.S. banks have never been huge, and have dropped sharply, but substantial losses still loom.

Big European banks unlikely to book Russia-Ukraine war provisions in near term

The majority of large European banks tracked by S&P Global Market Intelligence booked year-over-year declines in loan loss provisions in the fourth quarter of 2021, supported by economic recovery from the COVID-19 pandemic.

European financials M&A activity slumps in February amid Ukraine war

Deal-making nearly halved month over month and hit its lowest level since the early stages of the COVID-19 pandemic, S&P Global Market Intelligence data shows.

Insurance

US death-benefit payouts hit record high in 2021

Net death benefits in the fourth quarter of 2021 were up 5.6% from the fourth quarter of 2020, according to a review of U.S. regulatory data.

Energy and Utilities

Break from Russian oil, gas sends West toward China-dominated renewables

China's control of green energy supply chains raises the prospect that the energy transition may swap one source of potential risk for another.

Metals and Mining

Russian invasion of Ukraine may drive EU back to China as source for rare earths

The European Union and Russia have made huge investments to cut reliance on Chinese rare earths in recent years. The war in Ukraine and ensuing sanctions against Russia may set efforts back, some analysts warned.

Lithium producers unable to meet near-term demand

Demand for lithium is growing at such a rapid pace that even with producers bringing hundreds of thousands more tonnes of lithium to market, the supply shortfall could grow to 102,000 tonnes LCE by 2026, according to S&P Global Commodity Insights.

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