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The Pyxis Ocean sailed from China to Brazil in September 2023, partially powered by large ‘wings’.

Cargill

A cargo ship with a difference is set to dock at the Polish port of Gdynia early next week.

The Pyxis Ocean, a bulk carrier that is 229 meters long and 32 meters wide, looks like any other dry cargo vessel — but with a big difference: it is fitted with two large, rigid sails known as WindWings.

These 37.5-meter-tall wings use wind power to help propel the vessel and in doing so reduce the amount of fuel it uses in an effort to cut carbon — shipping accounts for nearly 3% of the world’s greenhouse gas emissions.

The ship set sail from Shanghai, China, on Aug. 1, with around 20 crew onboard, and its voyage took it to Paranagua, Brazil in September before it set sail for the Spanish island of Tenerife, and then on to Poland. The wings have been folded down when the ship docked at ports on its journey.

The WindWings were added to the six-year-old vessel with the aim of cutting fuel use by about 20% on the voyage, according to Jan Dieleman, president of Cargill Ocean Transportation, which chartered the Pyxis Ocean.

Net zero goals

Cargill’s calculations suggest that WindWings could contribute to around a 30% reduction in fossil fuel consumption when three wings are installed on a new build ship — but if that vessel is powered with a biofuel, that figure could go up to 50%, Dieleman said.

In July, the maritime industry agreed to reduce emissions to net zero “by or around” 2050, but given the size and complexity of the sector, issues such as a lack of green fuels could cause delays.

“Wind is not going to get us to zero — unless we’re all willing to switch off the engines and go back in time … But what we’re trying to do here with this specific technology, is somehow combine the best of both worlds, still have reliability [with an engine], but reduce significantly the fuel usage,” Dieleman told CNBC by video call.

Biofuels such as green methanol and green ammonia are more costly than fossil fuels, and it’s not simply a case of switching one for another: methanol has about half the energy density of hydrocarbons so need larger tanks, for example.

“If you can reduce the volume [of fuel] by 30% you have another gain, [in] that you don’t have to put your ship all full of tanks instead of cargo capacity,” Dieleman said.

“I do get very excited with the combination of wind plus the new fuels, because new fuels [are] three, four times more expensive, then [by adding wind power] your payback is probably going to be two, three years instead of 10 years,” he added. This might encourage more ship owners to participate in schemes like this, because they are potentially more financially rewarding and less risky, Dieleman said.

One of the folded-down ‘wings’ that helped the Pyxis Ocean sail from China to Brazil, arriving in September 2023.

Cargill

Cargill has ordered five methanol-powered bulk carrier vessels, the first of which was ordered in 2022, before the WindWings were tested at sea. Once the wings’ performance has been evaluated, Cargill hopes to work with the shipyard building the new vessels to add WindWings to their design.

While the Pyxis Ocean’s voyage has been relatively smooth, there have been some ports that were reluctant to accept it, “because it’s different,” Dieleman said. “It takes us time to get innovation in a very traditional industry … even with the best will and the best people trying to push this, you still have a lot of hoops to go through,” he added.

The WindWings are not suitable for all vessels: it wouldn’t be possible to install them on a cargo ship that carries large containers that are many layers tall, for example. Bulk carriers like the Pyxis Ocean store their goods — such as grain — inside their cavities, below deck.

Shipping is a complex industry with many parties involved in funding and developing new technology, and it has taken four years since the beginning of the project for the Pyxis Ocean to set sail, Dieleman said.

The WindWings were developed by Cargill with naval architect Bar Technologies, and produced by Yara Marine Technologies, while the Pyxis Ocean is owned by Mitsubishi Corporation.

“This is this is a prime example, I think, of where people come together, and really genuinely [are] willing to make a difference, taking some risk. We have an owner that is letting us cut big holes in the ship — that that is not what every owner in the world is willing to do,” Dieleman said.

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Elon Musk Tapped to Lead New ‘DOGE’ Department—Despite the Government Already Having One for Efficiency

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Elon Musk Tapped to Lead New ‘DOGE’ Department—Despite the Government Already Having One for Efficiency

Tesla CEO Elon Musk is to officially join Trump’s administration as the co-head of the new US Department of Government Efficiency – a second federal department with the goal of making government spending more efficient.

You can’t get more ironic than that.

Throughout the elections, Musk, who is already CEO of Tesla, and SpaceX, a well as the defacto head of X, xAI, Neuralink, and the Boring Company, has been floating the idea to add to his workload by joining the Trump’s administration to lead a new department aimed at making the federal government more efficient.

He has been calling it the “Department of Government Efficiency”, which spells out ‘DOGE’, a meme that Musk appears to enjoy.

Well, now Trump appears to want to be going through with this idea.

He announced the new department and Musk as head, along with Vivek Ramaswamy, in a statement today:

I am pleased to announce that the Great Elon Musk, working in conjunction with American Patriot Vivek Ramaswamy, will lead the Department of Government Efficiency (“DOGE”). Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies – Essential to the “Save America” Movement. “This will send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!” stated Mr. Musk.

What’s most ironic is that there’s already a federal department with the goal of cutting government waste and ensuring efficiency: the Government Accountability Office (GAO).

The GAO’s main objectives are:

  • auditing agency operations to determine whether federal funds are being spent efficiently and effectively;
  • investigating allegations of illegal and improper activities;
  • reporting on how well government programs and policies are meeting their objectives;
  • performing policy analyses and outlining options for congressional consideration;
  • issuing legal decisions and opinions;
  • advising Congress and the heads of executive agencies about ways to make government more efficient and effective

It sounds similar to what Musk described when talking about his DOGE, but Trump hasn’t gone into many details other than it will “cut waste.”

He also has a confusing message as he compares the initiative, which is supposed to cut government spending, to “The Manhattan project”, a massive and expensive government project.

Trump said that DOGE will help the government “drive large scale structural reform”:

It will become, potentially, “The Manhattan Project” of our time. Republican politicians have dreamed about the objectives of “DOGE” for a very long time. To drive this kind of drastic change, the Department of Government Efficiency will provide advice and guidance from outside of Government, and will partner with the White House and Office of Management & Budget to drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.

The statement also noted that DOGE will only operate until July 4, 2026.

Musk has previously claimed that he could cut at least $2 trillion dollars of the $6.5 trillion dollar US federal budget.

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Oil could plunge to $40 in 2025 if OPEC unwinds voluntary production cuts, analysts say

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Oil could plunge to  in 2025 if OPEC unwinds voluntary production cuts, analysts say

A pump jack in Midland, Texas, US, on Thursday, Oct. 3, 2024. 

Anthony Prieto | Bloomberg | Getty Images

Oil prices may see a drastic fall in the event that oil alliance OPEC+ unwinds its existing output cuts, said market watchers who are predicting a bearish year ahead for crude.

“There is more fear about 2025’s oil prices than there has been since years — any year I can remember, since the Arab Spring,” said Tom Kloza, global head of energy analysis at OPIS, an oil price reporting agency.

“You could get down to $30 or $40 a barrel if OPEC unwound and didn’t have any kind of real agreement to rein in production. They’ve seen their market share really dwindle through the years,” Kloza added.

A decline to $40 a barrel would mean around a 40% erasure of current crude prices. Global benchmark Brent is currently trading at $72 a barrel, while U.S. West Texas Intermediate futures are around $68 per barrel.

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Oil prices year-to-date

Given that oil demand growth next year probably won’t be much more than 1 million barrels a day, a full unwinding of OPEC+ supply cuts in 2025 would “undoubtedly see a very steep slide in crude prices, possibly toward $40 a barrel,” Henning Gloystein, head of energy, climate and resources at Eurasia Group, told CNBC. 

Similarly, MST Marquee’s senior energy analyst Saul Kavonic posited that should OPEC+ unwind cuts without regard to demand, it would “effectively amount to a price war over market share that could send oil to lows not seen since Covid.”

However, the alliance is more likely to opt for a gradual unwinding early next year, compared to a full scale and immediate one, the analysts said.

Should the producers group proceed with their production plan, the market surplus could nearly double.

Martoccia Francesco

Energy strategist at Citi

The oil cartel has been exercising discipline in maintaining its voluntary output cuts, to the point of extending them.

In September, OPEC+ postponed plans to begin gradually rolling back on the 2.2 million barrels per day of voluntary cuts by two months in an effort to stem the slide of oil prices. The 2.2 million bpd cut, which was implemented over the second and third quarters, had been due to expire at the end of September. 

At the start of this month, the oil cartel again decided to delay the planned oil output increase by another month to the end of December.

Oil prices have been weighed by a sluggish post-Covid recovery in demand from China, the world’s second-largest economy and leading crude oil importer. In its monthly report released Tuesday, OPEC lowered its 2025 global oil demand growth forecast from 1.6 million barrels per day to 1.5 million barrels per day.

The pressured prices were also conflagrated by a perceivably oversupplied market, especially as key oil producers outside the OPEC alliance like the U.S., Canada, Guyana and Brazil are also planning to add supply, Gloystein highlighted.

Bearish year ahead for oil

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Have you had a ride in a driverless vehicle?

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Have you had a ride in a driverless vehicle?

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