Quote of the Day

“It is neither just nor sustainable that one in five lacks access to modern electricity. It is not acceptable that 3 billion people have to rely on wood, coal or charcoal for cooking and heating. We need to turn on the lights for all households. To do that, we need to scale up success examples of clean energy and energy efficient technology. We need innovation that can spread throughout the developing world where energy demand is growing fastest.”

U.N. Energy Chief Ban Ki-moon in AP’s “UN chief call for action on clean energy”

Lead Stories

EU Nations to Sell 124 Million Carbon Permits in 15 Months, Tschach Says
Bloomberg
European Union nations will sell 124 million metric tons of surplus carbon allowances originally set aside for new entrants during the next 15 months, Tschach Solutions GmbH estimated.
http://jlne.ws/AlNvTA
**JK – SELL! SELL! SELL!

Camco sells UK advisory business
Reuters
British low-carbon project developer Camco International Ltd said it would sell its UK advisory business to Baxi Partnership for 4.5 million pounds ($6.9 million), a move analysts say will help it raise cash in the face of record-low carbon prices.
http://jlne.ws/xH8E0c
**JK – Not that it matters much but Camco was priced at 1.82 in June 2007 and .10 since December 2011

Countries target CO2 markets by year-end under World Bank scheme

Point Carbon
Several countries such as Chile, Turkey, Mexico and China could launch pilot carbon market schemes by the end of the year under the guidance of a World Bank scheme, a bank official said Friday.
http://jlne.ws/z0rN5R

Speedy EU Energy-Rule Change Will Protect Trading, Trayport Says

Bloomberg
Speedy decisions by European Union regulators to clarify changes in energy rules will help protect trading volumes, Trayport Ltd said.
http://jlne.ws/wXa4tY

UN chief call for action on clean energy
AP
Governments and the private sector must ramp up their investments into sustainable energy as part of a larger effort to alleviate poverty around the world and combat climate change, the U.N. chief told an energy conference Monday.
http://jlne.ws/y565nH

EU carbon-trading system likely to benefit US airlines
Guardian/Bloomberg
London: Far from damaging US airlines, the EU’s Emissions Trading System (ETS) could deliver it a 2 billion euro (Dh9.31 billion) windfall profit, according to a new report by a US Federal Aviation Administration-funded group of academics.
http://jlne.ws/yhBvLO
**JK – See Europe for Ryanair’s tearful tantrum and innovative business decision to transfer the cost to customers.

Air France joins CO2 bourse BlueNext
Point Carbon
Air France has joined Paris-based carbon exchange BlueNext to help the airline, one of the world’s largest, buy the CO2 permits it requires under the EU Emissions Trading Scheme, company officials said on Monday.
http://jlne.ws/yfdCye

China to Raise Share of Power From Non-Fossil Fuels, Premier Says

Bloomberg
China, the world’s biggest consumer of coal, will increase the proportion of power it generates from non-fossil fuels to 11.4 percent by 2015, Prime Minister Wen Jiabao said.
http://jlne.ws/A5la7E

BlackRock’s Mytrah Says Able to Produce Wind Power Cheap as Coal

Bloomberg
Mytrah Energy Ltd (MYT)., an Indian wind- farm builder held by BlackRock Inc. (BLK), says it’s able to produce power as cheap as developers of coal-fired plants because rising demand for the fossil fuel has increased import prices.
http://jlne.ws/wOEj1A

Oil India Plans to Buy Shale Gas Assets in U.S., Australia

Wall Street Journal
State-run Oil India Ltd. plans to buy shale gas assets worth up to $200 million and is scouting for potential acquisitions in the U.S. and Australia as it seeks to gain expertise in the field ahead of India’s plans to auction blocks in the country, a senior executive said Monday.
http://jlne.ws/wcwXvT

Inpex, Total Approve $34 Billion Australian LNG Project

Wall Street Journal
Japanese energy company Inpex Corp. and France’s Total SA have given the green light to build one of Australia’s most expensive energy projects at an estimated cost of US$34 billion over the next five years.
http://jlne.ws/wODEtu

Comparison of Futures Pricing Models for Carbon Assets and Traditional Energy Commodities
Takashi Kanamura – Journal of Alternative Investments
This article explores the classification of carbon futures, often considered to be a type of energy commodity futures from the energy-emission relationship, by examining the characteristics of carbon futures prices. The author presents a carbon futures price model reflecting the observed price characteristics found in previous empirical studies. The empirical analysis of EUA (EU allowance) futures prices traded on the European Climate Exchange (ECX) show that convenience yield of EUAs is negatively correlated with EUA price returns, which corresponds to the characteristics of the model presented in this article. In addition, empirical studies using EUA futures option prices traded on the ECX show that carbon futures prices behave unlike energy commodity futures but like security futures in terms of a volatility smile. These empirical results regarding carbon futures prices also support a carbon futures price model characterization that is more similar to security futures than to energy commodity futures.
http://www.iijournals.com/toc/jai/current
**JK – Bedtime Reading Part 1

Five Perspectives on an Emerging Market: Challenges with Clean Tech Private Equity
Eric R.W. Knight – Journal of Alternative Investments
Private equity investment in technologies which deliver low carbon energy has grown as an area of both economic and social performance. This article offers a perspective on some of the challenges in the industry. It relies on case studies drawn from 35 interviews with leading clean tech investment managers from SiliconValley, NewYork, and London. The findings suggest that despite the long-term growth opportunities, some investors have struggled to find attractive risk-reward premiums in early stage investments.
http://jlne.ws/xJvCFv
**JK – Still up? Part 2.

US

ConocoPhillips Seeks Partner for Canada Oil-Sands Assets
Wall Street Journal
CALGARY—ConocoPhillips is seeking a 50-50 joint-venture partner for its oil-sands projects in Western Canada, according to the investment-banking firm marketing the assets.
http://jlne.ws/A3D5Yq
**repeats in Canada

Oil industry pressures Obama on Keystone in South Carolina
The Hill’s E2 Wire
The oil industry jumped head-first into the presidential campaign on Monday, calling on South Carolina voters to make drilling a top election issue and ramping up pressure on President Obama to approve the Keystone XL pipeline.
http://jlne.ws/ySBDPW

GOP senator: Let’s get moving on Keystone

The Hill’s E2 Wire
Sen. John Hoeven pressed President Obama to approve the Keystone XL oil sands pipeline in the GOP’s weekly address, suggesting the project would both help the economy and bolster national security.
http://jlne.ws/zJ5JmW

Likely Upton challenger to announce plans Tuesday
The Hill’s E2 Wire
Former Michigan state Rep. Jack Hoogendyk (R) is likely to announce his plans Tuesday to challenge Rep. Fred Upton (R-Mich.), the powerful head of the House Energy and Commerce Committee.
http://jlne.ws/ydyzO1

Canada

ConocoPhillips Seeks Partner for Canada Oil-Sands Assets
Wall Street Journal
CALGARY—ConocoPhillips is seeking a 50-50 joint-venture partner for its oil-sands projects in Western Canada, according to the investment-banking firm marketing the assets.
http://jlne.ws/A3D5Yq
**repeats in US

Canadian oil and gas producers to spend $67.3B in 2012: First Energy

Financial Post
Canadian oil and gas producers spent an estimated $62.5-billion on exploration and development in 2011, a 24% increase over 2011, according to First Energy Capital. Despite all the hype surrounding oil sands, E&P developers spent $16-billion in that sub-sector, $1.2 billion less than 2010, according to the Calgary-based investment bank.
http://jlne.ws/x5pKw4

Canada faces legal challenge over Kyoto withdrawal

Point Carbon
The Canadian government’s withdrawal from the Kyoto Protocol is illegal, alleges a suit to be filed in federal court by a law professor and former Canadian MP on Friday.
http://jlne.ws/xxHKjD


Europe

Ryanair Passes on Carbon Tax to Passengers
3 P
Beginning on January 17, Ryanair will charge a 0.25 euro fee (UK 21p, or US 32 cents) on every seat to cover what the company says will be a 15 to 20 million euro bill.
http://jlne.ws/yh1sL3

Monsson Group Starts Building $316 Million Romanian Wind Farm
Bloomberg
Monsson Group, a privately-held Romanian wind-park developer, started the construction of a 150- megawatt wind farm in southeastern Romania, which will require an investment of about 250 million euros ($316 million), according to an e-mailed statement.
http://jlne.ws/A7kUnO

Energy price cuts given warm reception
FT
Cuts in gas and electricity prices by four of the Big Six suppliers this week came as a welcome relief for consumers – but are unlikely to presage a new era of shrinking bills, analysts and industry executives warn.
http://jlne.ws/zvaGaw

Greece to auction 2 mln EUAs in January
Point Carbon
Greece will sell 2 million EU Allowances this month in the cash-strapped country’s first permit sales of 2012, the Athens Stock Exchange said on Monday.
http://jlne.ws/woKOc7

Asia

Bhansali’s Talma Chemical to Invest in Solar Projects, Economic Times Says

Economic Times/Bloomberg
Talma Chemical Industries Pvt., a company founded by the family of Indian investment banker Vallabh Bhansali, plans to invest 17 billion rupees ($329 million) in solar projects, the Economic Times reported.
http://jlne.ws/x9YShO

Gamesa to Supply China Longyuan With 50MW of Wind Turbines

Bloomberg
Gamesa Corp. Tecnologica SA won a contract to supply China Longyuan Power Group Corp. (916) with 50 megawatts of wind turbines for a park in Ningxia, north western China, the company said in an e-mailed statement.
http://jlne.ws/ybxkcI

Creating electricity at home: the cleanest and most sensible option under the sun
The Age
It may appear counter-intuitive, but getting millions of solar panels onto rooftops saves more money than it costs. Feed-in tariffs enacted by state governments have enabled ordinary Australians using their savings to build a solar power station at home benefiting the community.
http://jlne.ws/xhjDvu


Miner facing emissions charge

The Age
IN WHAT is being described as a landmark decision, the Land and Environment Court has held that one of the state’s coalmines should have to pay to offset some of its greenhouse gas emissions as a condition of operation.
http://jlne.ws/xU1Maj


Africa/Middle East

TowerPower Plans Kenya’s First Biomass Power Plant, Daily Says

Business Daily/Bloomberg
TowerPower, a joint venture between Kenya’s Comcraft Group and Powergas International of the U.K., plans to build the East African nation’s first biomass power plant, Business Daily reported.
http://jlne.ws/zxnYjE

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