ENERGY ASIA: Industry leaders call for pragmatic energy transition without sidelining fossil fuels

Energy transition highlights: Our editors and analysts bring together the biggest stories in the industry this week, from renewables to storage to carbon prices.

Energy transition pathways need to be pragmatic, allowing fossil fuels to continue supporting developing countries' economic and energy demand growth -- especially given the evident shortage of financial support from developed countries, Asian and Middle Eastern industry leaders said at the Energy Asia conference held in Kuala Lumpur, Malaysia, over June 16-18.

Recent geopolitical tensions have raised global concerns over energy security and potential energy supply shortages. Meanwhile, the recent climate policy about-turn in the US has left some of its previously committed financial support to developing countries in limbo.

Considering this reality, Asian and Middle Eastern industry leaders highlighted that fossil fuels -- rather than being "phased out," as some developed countries have aggressively called for -- should coexist with renewables, with carbon capture and storage technologies to tackle their emissions.

Price of the Week

$3.5/MWh

Platts, part of S&P Global, assessed Solar I-REC current year prices at $3.5/MWh in Saudi Arabia, $0.79/MWh in India and $4.49/MWh in Malaysia on June 20.

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SPGlobal.com

Climate change jeopardizes key port infrastructure, energy flows: JP Morgan

Climate change threatens around $7.6 billion a year of port infrastructure, risking energy flows, according to a report by JP Morgan.

Switzerland, Norway ink world's first Article 6.2 durable carbon removal deal

Switzerland and Norway have finalized a bilateral deal to transfer Article 6.2 durable carbon removal credits between the two countries. Although only small volumes are expected to be transferred, this marks the first agreement involving carbon dioxide removal credits under Article 6 of the Paris Agreement, the press release said.

Platts Connect

Senate Republicans' draft reconciliation proposal softens clean energy phaseouts

Senate Republicans on June 16 released draft budget reconciliation text that would maintain tax credit support for baseload sources of power generation like advanced nuclear and geothermal resources, while accelerating the elimination of US wind and solar subsidies.

Norway approves Northern Lights CCS expansion plans at Longship launch

Norway’s energy ministry has approved the development plan for the second phase of the Northern Lights CO2 storage facility, which will expand capacity to over 5 million mt/year, from 1.5 million mt/year at present, as it officially launched the Longship carbon capture and storage project. The first cargo of CO2 was shipped from Heidelberg Materials’ cement plant in Brevik to the onshore Northern Lights receiving terminal at Oygarden in early June, onboard the CO2 carrier Northern Pioneer.

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