Pakistan Turns to Coal

Pakistan plans to quadruple its coal capacity to firm up its power grid.

The country gets a third of its electricity from natural gas. But Europe priced countries like Pakistan out of the LNG market after it rolled out its sanctions against Russia last year; Pakistan experienced blackouts as a result.

“‘LNG is no longer part of the long-term plan,’ Pakistan Energy Minister Khurram Dastgir Khan told Reuters, adding that the country plans to increase domestic coal-fired power capacity to 10 gigawatts (GW) in the medium-term, from 2.31 GW currently,” reports Reuters.

Pakistan’s new commitment demonstrates Robert Bryce’s Iron Law of Electricity: people, businesses, and countries will do whatever they can to get the juice they need. Is coal the most environmentally friendly? No. But what other option does Pakistan have? A world with coal-powered electricity is better than a world without electricity.

Russia’s Nuclear Exports Boom

Russia continues to dominate building nuclear power plants abroad.

“Exclusive trade data compiled by the UK’s Royal United Services Institute show that Russian nuclear fuel and technology sales abroad rose more than 20% in 2022,” reports Bloomberg. “Purchases by European Union members climbed to the highest in three years. From Egypt and Iran to China and India, business is booming.”

The surge in exports has boosted Russia's revenue and political influence over a new generation of global buyers. When Russia's nuclear giant, Rosatom, builds a new reactor somewhere, it locks in cashflows and political clout, potentially for decades. Rosatom isn’t constrained by the non-proliferation agreements and industry rot that has stagnated Western nuclear builds, both at home and abroad. That leaves the field of competition wide open for them to lock down longterm political alliances through their nuclear export business.

Another reason why Rosatom succeeds is that it makes it easy for countries to finance their projects. “By providing state financing, Russia can take financial risk away from countries,” Mark Hibbs, a Berlin-based nuclear analyst at the Carnegie Endowment for International Peace, told Bloomberg.

And Rosatom’s reach doesn’t extend to developing countries alone. “Rosatom provides about one-fifth of the enriched uranium needed for the 92 reactors in the US. In Europe, utilities that generate power for 100 million people rely on the company,” reports Bloomberg.

If last year taught us anything about the world’s desire for more power, then we should expect Rosatom’s business to keep booming until Western competitors wake from their anti-nuclear stupor.

DOE Bets on Geothermal

The US Department of Energy (DOE) has announced that it will fund up to seven enhanced geothermal system (EGS) pilots.

“The U.S. agency on Feb. 8 announced up to $74 million to support the EGS pilots, for which the November 2021–enacted Infrastructure Act designates $84 million,” reports Power Magazine. “The DOE said it would accept applications for the Congressionally funded EGS pilots over multiple rounds. First-round letters of intent are due March 8, 2023, and first-round applications will be due July 7, 2023.”

The projects are meant to demonstrate different geologic settings and development techniques. They fit into a broader plan to cut the cost of EGS to $45/MWh by 2035—a 90% reduction.

EGS are geothermal reservoirs created by drilling deep wells at depths of 3 to 10 kilometers into hot rock with temperatures ranging from 175C to over 300C. Unlike natural geothermal reservoirs, however, EGS typically have little to no natural permeability or fluid saturation. 

“During EGS development, subsurface permeability is enhanced via safe, well-engineered stimulation processes that re-open preexisting fractures, create new ones or a combination of both,” the DOE’s Geothermal Technologies Office (GTO) says. “These open conduits increase permeability and allow fluid to circulate throughout the hot rock. The fluid transports the otherwise stranded heat to the surface where clean, renewable electricity can be generated with current power generation technologies.”

The DOE expects to announce its first-round selections in October this year.

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Conversation Starters

1. Ford has struck a deal with a Chinese battery company. “Ford Motor said Monday it will collaborate with a Chinese supplier on a new $3.5 billion battery plant for electric vehicles in Michigan, despite tensions between the U.S. and China,” reports CNBC. “The anticipated announcement of the deal between Ford and Contemporary Amperex Technology Co., or CATL, follows Virginia Gov. Glenn Youngkin saying he was withdrawing the state from a competitive process to attract the planned Ford plant over its connection to the Chinese company.”

2. China’s refiners are back for more Russian crude. “China's top refiners PetroChina and Sinopec are resuming purchases of discounted Russian crude after a brief pause in late 2022, just before the European Union embargo on Russian oil started, industry sources said. Russian Urals crude, typically consumed in Europe, is now heading to India and China at depressed prices following an EU ban on Russian crude because of the Ukraine war,” reports Reuters. “The state refiners have received permission from their headquarters to buy Russian crude from trading companies at large discounts that will sharply reduce costs for the world's top crude importer and boost refining margins.”

3. Europe is trying to phase out cars. “The European Parliament has voted in favor of the phaseout of internal combustion engine cars in the European Union from 2035,” reports Oilprice.com. “The vote was narrow, with 340 out of 640 MEPs in favor but it confirmed plans announced by the European Commission last year. The plans were announced following a deal struck between the European Parliament and the Council of Europe to mandate zero emissions from cars and vans from 2035.”

Crom’s Blessing