WHAT’S HAPPENING TODAY: Good afternoon and Happy Thursday, readers! In today’s edition of Daily on Energy, Maydeen and Joe take a look at the deadly flash floods that hit southeastern Spain late Tuesday – at least 95 deaths have been reported.
We also cover several clean energy issues, including the European Union imposing high tariffs on electric vehicles from China. Plus, KKR and Energy Capital Partners announced they are investing $50 billion in data center projects – including power sources – to support artificial intelligence.
As we approach Election Day, some analysts have said that a Trump presidency could threaten LNG export gains because of a potential trade war with China. Lastly, today’s election countdown examines a Louisiana ballot measure that could allocate revenue from renewable energy to help fund coastal restoration and protection projects.
Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
DEADLY FLASH FLOODS HIT PARTS OF SPAIN: At least 95 people have died and more are missing in Spain after a rainstorm hit late Tuesday, flooding the southeastern parts of the country, BBC reports.
The flash floods hit Valencia and surrounding towns, sweeping away cars and disrupting rail lines. BBC said of the 95 deaths, 92 were in Valencia. Spain’s meteorological agency said the village of Chiva received 491 liters per square meter of rain within eight hours. Spain earlier today deployed more than 1,000 troops to the disaster areas.
As of noon, the rainfall in Valencia has receded but the rainstorm is heading toward the coastal region with millions of people under alert.
Hannah Cloke, a professor of hydrology at the University of Reading, told Reuters the extreme rainfall can be linked to climate change.
“We’re going to see more of these flash floods in the future. This has the fingerprints of climate change on it, these terribly heavy rainfalls and these devastating floods,” said Cloke.
EU IMPOSES TARIFFS ON CHINA ELECTRIC VEHICLES: The European Union imposed tariffs as high as 45% on electric vehicles from China, Bloomberg reports.
Talks between China and the EU will continue even after the tariffs are implemented, Bloomberg reports but little is expected to happen before the U.S. election next week.
China is currently the largest exporter of electric vehicles. Former president Donald Trump has said he would implement tariffs on EV imports from China. The Biden administration has also imposed 100% tariffs on Chinese EVs.
The ministry said in a statement “China has repeatedly pointed out that the EU’s anti-subsidy investigation on Chinese electric vehicles has many unreasonable and non-compliant aspects, and is a protectionist practice of ‘unfair competition” in the name of “fair competition.’”
The ministry added that it does not agree with or accept the tariffs and has filed a lawsuit under the World Trade Organization dispute settlement mechanism.
“China will continue to take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies,” the ministry said.
CLEAN TECH TO TRIPLE TO $2T GLOBALLY, IEA SAYS: The International Energy Agency reported that the global market for clean technologies will reach more than $2 trillion by 2035.
In its latest analysis, the IEA examined the top six mass-manufactured clean energy technologies: solar PV, wind turbines, electric cars, batteries, electrolyzers, and heat pumps. It said that the global market for these technologies will rise from $700 billion in 2023 to $2 trillion by 2035. Within a decade, trade in clean technologies is expected to triple and reach $575 billion.
“The market for clean technologies is set to multiply in value in the coming decade, increasingly catching up with the markets for fossil fuels,” said IEA Executive Director Fatih Birol.
“As countries seek to define their role in the new energy economy, three vital policy areas – energy, industry and trade – are becoming more and more interlinked. While this leaves governments with tough and complicated decisions ahead, this groundbreaking new IEA report provides a strong, data-driven foundation for their decisions,” Birol added.
The report highlights what is at stake as the U.S. seeks to compete with China in the race to dominate the clean technology industry.
INVESTMENT GIANTS BET $50B ON ARTIFICIAL INTELLIGENCE POWER PROJECTS: KKR and Energy Capital Partners announced today that they are investing $50 billion in data center projects to support artificial intelligence – and in power plants to supply them electricity.
The news, reported by the Wall Street Journal, is the latest sign of how significantly the AI data center boom is reshaping the power landscape.
“The capital needs are huge, and one of the big bottlenecks—maybe the bottleneck—is electricity availability,” ECP founder and senior partner Doug Kimmelman told the WSJ.
Kimmelman said that natural gas would be at the forefront of the effort, and that they would be exploring carbon capture and sequestration to mitigate the environmental effects.
We’ve covered the recent AI-propelled scramble for clean energy sources – most recently, the possibility that the Duane Arnold nuclear plant in Iowa might be restarted to meet demand.
COULD TRUMP BE A THREAT TO LNG EXPORTS? Some analysts think that a Trump presidency could pose a threat to further LNG export gains, because of the possibility that a trade war could lead China to spurn U.S. LNG. Trump has threatened to place 60% tariffs on Chinese imports.
Erica Downs, an expert at Columbia University’s Center on Global Energy Policy, told Reuters that China might retaliate to Trump tariffs by avoiding new LNG contracts and re-exporting shipments to other countries.
“The destination flexibility of U.S. LNG means that Chinese companies can on-sell it to other buyers to avoid paying the tariff,” Downs said.
China accounts for only 4% of exports, but its share has been growing.
Why it matters: Democrats have been thought to present the bigger obstacle to LNG export growth, thanks to the Biden administration’s pause on new approvals of LNG exports to non-free-trade-agreement countries. Trump would end the pause, but the prospect of a trade war is a separate concern for all exporters.
ELECTION COUNTDOWN – LOUISIANA BALLOT MEASURE: On the ballot this year for Louisiana is the Outer Continental Shelf Revenues for Coastal Protection and Restoration Fund Amendment. Voters will decide whether to allocate funds from renewable energy production to be used toward coastal restoration and protection projects.
Currently, the state’s Coastal Protection and Restoration Fund receives state revenue from off-shore oil and gas production. Voting yes on the amendment would require the state to allocate revenue from wind, solar, and other renewable energy sources in the Outer Continental Shelf (OCS). The OCS refers to submerged lands that are located outside of state water boundaries and under U.S. jurisdiction.
The Wetlands Conservation and Restoration Fund was established in 1989 but changed its name to the Coastal Protection and Restoration Fund in 2006. It is the primary source of funding to pay for barrier island restoration, diversion projects, flood risk reduction, and more.
Liz Russell, the Louisiana director at the Environmental Defense Action Fund, said “This amendment will allocate potential future funding from offshore wind to support coastal restoration. This is a good thing for Louisiana.”
“We need to see continued, sustained investment in our coastal restoration. It benefits our communities and economies across the state,” she added.
There are
RUNDOWN
Bloomberg From Boston to Philadelphia, Near-Record Heat Likely on Halloween
The New York Times At Three Mile Island, a Test of Nuclear Power’s Promise
Inside Climate News Competing Visions for U.S. Auto Industry Clash in Presidential Election, With the EV Future Pressing at the Border