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EDF Warns of Billion Euro Loss From Strikes

EDF, the French utility company, has lost €1 billion ($1.1 billion) due to strikes at its nuclear and hydro-electricity plants.

“Two of the sources, who are union members and were briefed by two EDF executives in separate conversations last week, told Reuters they were informed that EDF management had asked all divisions to see which hires could be postponed to next year,” reports Reuters. “An EDF spokesperson told Reuters that a moratorium had been imposed on hirings. The spokesperson did not elaborate on the reason and declined to comment on the strikes' financial impact on the group, which is in the process of being fully nationalised.”

The strikes have disrupted nuclear reactor maintenance work, which could cause delays lasting up to 24 months in the maintenance schedule. The disruptions and delays could also undermine EDF's nuclear production forecasts.

These problems, along with the financial hit, will trouble matters for the utility’s new CEO, Luc Remont.

Netherlands to Quit Russian LNG

The Dutch government trying to bring all liquefied natural gas (LNG) imports from Russia to an end, according to Energy Minister Rob Jetten. The Dutch quit inking new contracts for LNG imports from Russia this year, and they’re working on winding down pre-existing contracts.

“We have to do what we can do to make sure there is no Russian fossil energy in our system, and we have been successful on coal, pipeline gas and oil,” Jetten said.

The Dutch decision goes further than similar moves by Spain, as it would apply to both spot and long-term contracts. The Dutch move could also impact the rest of Europe, as the Netherlands is a transit zone for gas.

“The Netherlands still buys Russian LNG through older agreements signed before 2023, accounting for about 15% of its total imports of the fuel,” reports Bloomberg. “This year, it’s been Europe’s fourth-largest buyer of Russian LNG, according to ship-tracking data compiled by Bloomberg.”

Panning out, the European Union is searching for a way to let member states ban Russian LNG shipments without rolling out more energy sanctions. A proposal allowing governments to temporarily block Russian exporters from reserving the necessary infrastructure capacity for their shipments has been approved by Europe’s energy ministers.

Holtec Seeks $300 Million for Palisades Restart

Holtec International, the owner of the decommissioned Palisades Nuclear Generating Station in Michigan, is seeking around $300m in taxpayer assistance to restart operations at the site.

“Gov. Gretchen Whitmer last year said she wanted to support the Palisades restart as part of a goal to make Michigan carbon neutral by 2050. Holtec last month said it had spoken with the Whitmer administration about a “potential financial commitment,’” reports the Detroit News. “The Democratic-led Legislature has given hundreds of millions of dollars in economic development money to electric vehicle battery plants and $200 million for the expansion of a Upper Peninsula paper mill in recent months. But the $300 million inventive request from Holtec would rank among the largest in straight incentive payments the state has given to businesses.”

Holtec argues that the plant would provide a stable source of carbon-free energy for Michigan as it invests heavily in the electric vehicle industry. Others agree.

“Palisades, if operating, would likely create this amount of economic activity where $1 created locally is spent 7-10 times. The outcome would be tax base generation in this amount of payroll and other taxes over a few years,” Mike Rencheck, the CEO and President of Bruce Power, said on LinkedIn. “Seems like a good investment in clean energy and good jobs for Michigan.”

If rescued, Palisades would be the first nuclear plant in American history to restart operations after being decommissioned.

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Conversation Starters

1. Russian crude inches toward G7 price cap. “The price of Urals, Russia’s flagship export grade, has moved higher since the OPEC+ announcement, threatening the price cap that the G7 and the European Union agreed to impose on Moscow last year in a bid to hurt its oil revenues. Urals is currently trading at nearly $60 per barrel, meaning this year’s oil revenues could be higher, Deputy Finance Minister Vladimir Kolychev said this week,” reports Oilprice.com. “The price cap, when agreed upon, prompted different reactions. Russia said it would not sell oil to countries enforcing the cap. Western insurers—the principal tools for enforcement of the cap—complained about difficulties in making this enforcement happen.”

2. OPEC cuts, Biden yawns. “When OPEC+ made a surprise decision earlier this month to cut oil production, President Joe Biden responded with the political equivalent of a shrug - a far cry from his declaration that there would be ‘consequences’ for Saudi Arabia, the de facto head of the oil cartel, when it lowered output in October,” reports Reuters. “The tepid response reflects, in part, the Biden administration’s view that the production cut may not have as much of an impact on the slowing U.S. and global economy as last year's cuts, which came as oil supplies were still tight. Administration officials believe the U.S., the world's largest oil consumer and global economy have entered a more predictable, less volatile phase.”

3. 🇨🇦🤝🇺🇦. “Cameco and Energoatom have signed the last agreement needed for the implementation of a programme to export all of Ukraine's uranium production for processing in Canada to produce fuel for Ukrainian nuclear power plants,” reports World Nuclear News. “[Energoatom President Petro] Kotin described the agreement as a ‘landmark event’ for Ukraine's nuclear industry. ‘It guarantees its stability and, as a result, a stable supply of electricity to citizens,’ he said.”

Crom’s Blessing