Nevada's Lithium Mine Blues // Samsung Moves Ahead With Floating Nuke Plants // China Opens, Oil Climbs

Nevada's Lithium Mine Blues

Opponents are obstructing the construction of Lithium Nevada Corp's planned mine. They're calling on a federal judge to vacate the government's approval of the project due to a lack of environmental reviews and compliance with state and federal laws.

"U.S. District Judge Miranda Du said after a three-hour hearing in Reno that she hoped to make a decision 'in the next couple months' on how to proceed," reports the Reno Gazette Journal. "Lawyers for the company and the Bureau of Land Management insisted the project complies with U.S. laws and regulations. But they said that if Du determines it does not, she should stop short of vacating the agency's approval and allow initial work at the site to begin as further reviews are initiated."

The mine, set to be the largest lithium mine in the US, is intended to meet increasing demand for electric vehicle batteries. Located near the Nevada-Oregon line, it has faced legal challenges for nearly two years. The site is considered sacred land by some Native American tribes and the mine would threaten the habitats of several animals, such as sage grouse, Lahontan cutthroat trout, pronghorn antelope, golden eagles, and a small snail on the endangered species list.

“We need a smart energy future that transitions our economy from fossil fuels to renewables without sacrificing rare species in the process,” Greta Anderson, deputy director of the Western Watersheds Project, told RGJ.

The difficulty in constructing an already federally approved mine that would aid the energy transition environmentalists demand showcases unreconcilable desires within the green movement. It also reveals that the green wing of the Democratic party has grown in power. It will be difficult to satiate their policy desires as they don't seem to support the industries that will satisfy them.

Samsung Moves Ahead With Floating Nuke Plants

Samsung Heavy Industries has developed a design for a floating nuclear power plant that utilizes compact molten salt reactor (CMSR) technology.

The CMSR power barge has been approved by the American Bureau of Shipping.

"In December 2020, ABS said it had completed a new technology qualification of a compact molten salt reactor (CMSR) developed by Danish company Seaborg Technologies. The concept was found to satisfy the Feasibility Stage, the first milestone in the ABS New Technology Qualification process," reports World Nuclear News. "In April last year, SHI and Seaborg signed a Memorandum of Understanding to manufacture and sell turnkey power plants combining SHI's ship-building expertise and Seaborg's CMSR. It also covered the development of hydrogen production plants and ammonia plants."

The facility can be equipped with two to eight 100 MW CMSRs and is intended to be used as an alternative to fossil fuel power plants, as well as for industrial heating systems, hydrogen production, and seawater desalination.

"We will complete the product that will lead the future new market through continuous technology development and commercialization efforts for floating nuclear power plants," said Yeo Dong-il, head of offshore design at SHI.

Samsung Heavy Industries plans to commercialize the unit by 2028.

China Opens, Oil Climbs

China opened its borders and crude prices climbed, leading to optimism that the country is finally recovering from the COVID-19 pandemic and its strict lockdown policies.

This optimism caused both Brent crude and West Texas Intermediate to increase by more than 1% in Asian trading, although both remained below $80 per barrel. "Crude oil prices recovered from the previous week's losses as the economic reopening in China and less aggressive monetary tightening prospects from the Federal Reserve set a positive tone for demand recovery," a Phillip Future analyst said.

But don't throw a party just yet. Fears of a recession loom on the horizon and remain the main bearish factor for oil. If a recession does hit, oil prices could dip to $60 per barrel, according to Bernard Weinstein, an energy economist. Going forward, the return of Chinese demand will have to be weighed against a recession's impact on demand more generally.

However, OPEC+ is monitoring the oil market and is prepared to adjust production to avoid a drop in prices. The cartel expects higher oil demand this year than last year.

Like what you're reading? Click the button below to get Grid Brief right in your inbox!

Conversation Starters

1. Residents of Long Beach, California are in for a hike on their utility bills. "Long Beach utility customers opening their bills this month will see a spike in charges for natural gas, an issue that could get worse over the next billing cycle as supply shortages, rain storms and colder weather will continue to drive up prices," reports the Long Beach Post. "Prices of natural gas have shot up in recent months with the amount charged per therm—a unit equal to 100 cubic feet of natural gas—doubling from November to December and tripling from December to January. The cost of one therm in November was about 77 cents. The cost of a therm this month, which would be reflected on customers’ next bill, is $3.81. The Long Beach Utilities Department, which serves Long Beach and Signal Hill, said that the average single-family home could see an increase of $200 or more."

2. America and Japan will agree to cooperate on advanced nuclear technology. "It was revealed on the 7th that the governments of Japan and the United States are coordinating to reach an agreement on strengthening cooperation in the field of nuclear power, including cooperation in the development of next-generation nuclear reactors such as small modular reactors (SMR)," reports Sankei. "Economy, Trade and Industry Minister Yasutoshi Nishimura, who is visiting the United States, is expected to meet with Secretary of Energy Granholm in Washington on the 9th (10th Japan time) and share his thoughts. Japan-US cooperation in the area of ​​energy security is likely to advance." (translated with Google Translate)

3. German industry is about to take a huge hit. "Four out of ten German companies expect business to shrink in 2023, a survey by the German Economic Institute (IW) showed on Monday, blaming high energy costs, supply chain issues and the continuing war in Ukraine," reports Reuters. "The risk of a gas shortage in the 2022/23 winter season is no longer as present as it was in the summer of 2022, and energy prices have also retreated since then. However, they remain at a high level and production disruptions cannot be ruled out," the IW said in the survey.

Crom's Blessing