Crypto News: Ireland's bold green move

Today's newsletter looks at a country going against the trend of sourcing more liquefied natural gas. You can read and share the lead story on Bloomberg.com. For unlimited access to climate and energy news, please subscribe.

By Anna Shiryaevskaya and Jennifer Duggan

Amid Europe's angst over energy security, Ireland has made one of the boldest moves of any nation on the continent in the name of climate action: It rejected a new fossil fuel import facility.

The country's planning authority last month refused a proposal for a liquefied natural gas import terminal on the Shannon estuary and a related gas-fired power plant, after taking into consideration policies outlined in Ireland's energy and climate action plan. The strategy calls for the country to reduce greenhouse gas emissions annually by 7% on average between 2021 and 2030.

"It is considered that the development at this time would be contrary to current government policy," according to the board decision.

A wind turbine on a hill top of a farm near Ballyconnell, County Cavan, Ireland. Photographer: Paulo Nunes dos Santos/Bloomberg

Ireland is "probably the first" country to deny an LNG facility based "on climate, as opposed to local environmental opposition," according to Jonathan Stern, distinguished research fellow at the Oxford Institute for Energy Studies. The decision comes ahead of the country's review of its energy security in the coming weeks.

Minister for the Environment Eamon Ryan told national broadcaster RTE the review could recommend some form of LNG but it would be "strategic" and not commercial.

Unlike the rest of Europe, Ireland appears to be pushing ahead with its zero carbon transition policy, despite energy shocks last year that left most European countries scrambling for more, not less, LNG. Germany installed three floating LNG facilities in a matter of months, and more are planned. France made a U-turn on LNG in the wake of Russia's war in Ukraine, and went from scrapping a US LNG supply deal to eventually signing it. The UK in September announced it's stepping back from some of its most aggressive net zero targets.

US LNG developer New Fortress Energy Inc. had sought to build a floating terminal in Ireland for LNG imports, which would supply a 600MW power generation plant. There were early signs that it would have a tough time getting approved.

Speaking in Ireland's parliament in April, Ryan indicated that the government's policy is to move away from natural gas — especially if it's been produced via hydraulic fracking, meaning "it would not be appropriate for Ireland to permit or proceed with the development of any LNG terminals."

Still, Ryan has recently stressed natural gas will not be immediately taken off the grid. The minister said it has a " back-up role" in the energy system as Ireland works to meet most of its energy needs from renewables.

The dilemma for Ireland is its relative isolation from the rest of European energy markets. The nation receives gas from the domestic Corrib gas field, as well as via two subsea interconnectors with the UK, and its consumption has been rising in recent years. In September 2022, a review on security of energy supply proposed a floating storage and regasification unit that could help ease a potential energy crunch.

Gas storage facilities have also been mooted as options to ensure energy security in Ireland amid concerns following the war in Ukraine and rising commodity costs. Two years ago, Ireland's electricity grid warned it might run low on energy during the winter periods over the next five years. This makes the refusal of an extra gas import facility a brave move.

Stern said all eyes will be on the country's renewable strategy now. Ireland expects to increase its current onshore wind energy capacity of 4.59GW, as of end of August, to 6GW by 2025. Ireland is aiming for a variety of clean power sources to meet 80% of its energy needs by 2030. Currently renewable energy represents about 37% of the fuel mix on the grid.

"It will be interesting to see what they intend to do in terms of supply in future and, if [they reach] 100% renewables, how they intend to deal with the intermittency," Stern said.

38%

This is approximately how much agriculture contributes to Ireland's greenhouse gases.

"The energy that you can capture from wind farms off the west coast of Ireland is significantly more than the energy you can potentially capture elsewhere in Europe."

Barry Kilcline

Ireland head of offshore at SSE Renewables

For decades, Ireland has had big plans to exploit the incredible natural advantage afforded by its position on the edge of Europe.

As the aviation industry looks to achieve carbon-neutral status by 2050, sustainable aviation fuel has emerged as the magic potion to propel airlines and manufacturers into that era. Aviation executives, however, are calling for more realism. "Don't fool yourselves on all this," Emirates President Tim Clark said on the industry's targets at the World Aviation Festival last week.

SAF is still scarce and therefore expensive. Generating the required quantities of alternative fuel would require huge areas of land and natural resources. And footing the bill for the switch would most likely fall to the flying public as the airline industry points to its razor-thin profit margins. The topic is due to be a central theme on Tuesday when the International Air Transport Association holds its World Sustainability Symposium in Madrid.

Ground crews prepare an aircraft, powering one of its engines with sustainable aviation fuel. Photographer: Giuseppe Cacace/AFP/Getty Images

EU's war on carbon goes global. The bloc has started to enforce part of its policy to place a levy on carbon-intensive imports. The first phase of the measure, which took effect on Sunday, requires importers from six carbon-intensive industries to report their emissions.

UAE oil giant doubles CO2 capture target. Abu Dhabi National Oil Co. plans to capture 10 million tons of carbon dioxide emissions annually by 2030, up from a previous target of 5 million tons, as the looks to burnish its green credentials before the UN's main climate summit.

Steel is still far from achieving green status. Carmakers and steelmakers are sealing deals for green steel, and using them to tout their environmental credentials. The trouble is, the steel is still being forged using fossil-fuels and it's not clear how soon that can change.

By Brian K. Sullivan

The drought that has led to near-record low levels along the Mississippi River is now threatening the quality of drinking water.

The river's water levels have fallen to a point that it can't flow with sufficient force to push back salt water from the Gulf of Mexico. As a result, the Army Corps of Engineers has been called into resupply water treatment plants in Plaquemines Parish, Louisiana, which has been overwhelmed by an influx of salt water.

The Army Corps, which already constructed a salt sill in the lower river, is now shipping fresh water from upstream to Plaquemines, on the extreme southeastern tip of Louisiana where the river meets the Gulf. The Corps has delivered 500,000 gallons by barge to the Port Sulphur Water Treatment plant to dilute the Mississippi's salinity there, it said in a statement.

Drought across the central US and Midwest have left water levels low on not only the Mississippi but also its tributaries, such as the Ohio River. At Cairo, Illinois, the Ohio River is in its low water stage. Through September 26, nearly 55% of the Midwest was gripped by drought, with almost 66% of South also dry, according to the US Drought Monitor. More than 99% of Louisiana was in drought, according to the US Drought Monitor.

Low water can mean barges cannot carry as much freight up and down the river, which is a vital highway for shipping grains, oil, chemicals and raw materials. In fall, many crops harvested across the central US move by river barge.

In other weather news:

Atlantic: Tropical Storm Philippe could graze the Caribbean Islands of Antigua and Barbuda, where storm watches have been posted. Philippe has winds of 50 miles per hour and is 95 miles east-southeast of Barbuda.

Pacific: Typhoon Koinu is gaining strength east of Taiwan, where it will likely strike the southern part of the island on Oct. 4-5, the Joint Typhoon Warning Center said. Koinu's winds could reach 127 miles per hour, which would make it a Category 3 major storm on the five-step, Saffir-Simpson scale. It will then go on to strike China's coastline possibly near Shanwei and Shantou, China, however a larger area including Hong Kong is still under threat.

Europe: Autumnal heat will persist across much of continental Europe this week, with Madrid exceeding a maximum of 30C (86F) until Saturday, while Paris, Berlin and London will also be unseasonably warm, Maxar Technologies said in a daily note.

If you've ever glanced at a company's climate pledge and thought "oh yeah?" You're not alone. On the latest episode of the Zero podcast, Akshat Rathi speaks with someone doing something about it. Brynn O'Brien is the executive director of an Australasian shareholder activist organization that uses its power as investors to close coal mines and plants. They're now behind a lawsuit that could have serious repercussions for greenwashing.
Listen now and subscribe to Zero on Apple, Spotify, or Google to get new episodes every Thursday.

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