Welcome to Grid Brief! Here’s what we’re looking at today: US shale execs expect higher costs and a stagnant rig count, Democrats worry over the government shutdown’s impact on clean energy, GE sues a wind turbine blade recycler, and more.

US Shale Execs Brace for High Costs

According to a new report from the Dallas Federal Reserve Bank, most oil and gas executives expect fracking costs to climb next year.

The vast majority—84%—of execs expect the rig count to stagnate over the next six months.

The overall report was downbeat, much of it reflecting bitterness towards investors and politicians who are turning away from fossil fuels.

“Investors still do not want oil and gas exposure despite healthy risk-adjusted returns. I don't think they are coming back,” said one respondent. “It's different this time.”

“Uncertainty due to the attack on the oil and gas industry by the administration is an issue affecting our business,” said another. “The country cannot get to green without oil and gas for many years into the future.”

US Gov’t Shutdown Could Hurt IRA

The Biden administration is bracing for an imminent government shutdown over budgetary disputes. This could sandbag the administration’s climate ambitions in the Inflation Reduction Act.

The IRA, which became law last August, contains nearly $370 billion in climate and clean energy measures. These provisions encompass incentives for solar and wind energy, support for energy storage and essential minerals, funding for energy research, and incentives for domestic manufacturing for wind turbines and solar panels.

Here’s the problem: most companies are waiting for guidance from the Treasury Department and the Internal Revenue Service to learn how they can take advantage of what the IRA provides. This has been slow going already.

But, as John Podesta told Bloomberg, the likely shutdown “causes challenges to the functioning of government including our ability to move forward with guidance that’s critical to get private-sector investment going.”

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GE Sues Wind Blade Recycler

Last month, Texas Monthly reported on thousands of wind turbine blades piling up at a dump in Sweetwater, TX. The blades fill thirty acres of land.

General Electric, one of the companies that worked with Global Fiber Glass Solutions, is now suing the dumping site’s owner for failing to recycle the blades as contractually obligated.

“General Electric filed a lawsuit last week claiming that Global Fiberglass Solutions has failed to fulfill its promise to recycle thousands of blades,” reports TM. “GE says it paid the company $16.9 million to recycle about five thousand wind turbine blades, but that GFS instead stockpiled them at facilities in Sweetwater and Iowa. “

“Only after GFS took millions of dollars from GE, did GFS all but shut down its operations without recycling the Blades,” reads GE’s complaint.

TM also reports that even if GE themselves cleaned up their blades from the site, blades from other companies would remain.

Conversation Starters

• The US takes another step toward ending its dependence on Russian uranium. “The Nuclear Regulatory Commission has authorized American Centrifuge Operating LLC to proceed with its planned demonstration project to produce high-assay low-enriched uranium, known as HALEU, under its contract with the Department of Energy. This is a major step in developing advanced fuels for the next generation of nuclear reactors,” reads a Nuclear Regulatory Commission press release. “The NRC in June authorized the company to possess a smaller amount of material as part of its project preparations. The company plans to initiate HALEU production in October and complete Phase 1 in December.”

• Britain green lights a new North Sea oil field. “Britain has given the go-ahead for one of its biggest new oil and gas projects in years, Equinor's North Sea Rosebank field, saying energy security was the priority despite opposition from environmentalists,” reports Reuters. “Wednesday's announcement comes after Prime Minister Rishi Sunak watered down interim plans for the government's 2050 net zero emissions target, a move that critics said could also encourage other countries to rein in their climate ambitions.”

• Saudi Arabia and Greece are teaming up on power provision. “Greece and Saudi Arabia agreed on Wednesday to set up a jointly-owned company that will look at linking their power grids, taking the first step in their plan to supply Europe with cheaper green energy, the Greek energy ministry said,” reports Reuters. “Greece's IPTO and Saudi Arabia's National Grid will set up a company, Saudi Greek Interconnection, tasked with examining the commercial viability of the power interconnection, the ministry said in a statement. IPTO and National Grid will each hold a 50% stake, it added.”

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