Iceland Moves Closer to Powering Homes with Geothermal Energy
Iceland is moving closer to powering European homes using the volcanic island nation’s geothermal and hydropower reserves through what would be the world’s longest power cable. The government is still studying whether it should press ahead with the 2 billion euro project as construction of the 1,170-kilometer submarine cable would need a bilateral agreement with the U.K. The country currently produces 17 terawatt hours of electricity, a figure that could be doubled through the project. Analysts say that for the project to be feasible, Iceland must sell least 5 terawatt hours via the cable.
Nuclear-Free Japan Faces Summer Power Crunch
Japan’s industrial heartland in the west is facing the possibility of power shortages over the summer, underscoring the challenges that the world’s third-largest economy face with the absence of nuclear power. Electric Power Developer Co. said recently that it will not be able to fully restore a damaged 1,000 MW coal-burning generator in Kyushu island until June 2015. The nation is working on a thin margin of reserves and some fear that another plant failure could leave homes and companies without enough electricity.
Diesel Profit Falling as Indonesia Shutters Mines
The effect of Indonesia’s ban on mineral-ore exports are reaching energy markets, as shuttered mines and idled trucks crimp demand for diesel. Singapore’s profit from making diesel will be the lowest since 2011 as Indonesia, Asia’s biggest diesel importer, will buy 20 percent less. Indonesia banned exports of all mineral ores including iron, nickel and bauxite from January, as part of policy to stimulate revenue by turning the country into a manufacturer of higher-value products. Inversely, the last quarter saw the economy turned-in its slowest pace since 2009.
Repsol Secures Approval for $10 Billion Project Off Spain
Repsol SA acquired government approval to start a $10 billion oil drilling project off Spain’s Canary Islands, signaling success in its 12-year campaign to explore near the Atlantic archipelago. The approval will allow Spain’s biggest oil company to drill about 40 miles off Lanzarote and Fuerteventura islands, areas where geologists estimate may hold enough resources to provide around 10 percent of the country’s demand. Repsol forecasts it will produce around 110,000 barrels a day should the prospect deliver its expected reserves of 900 million to 2.2 billion barrels.