Workers during the production process of pipes at the Nord Stream 2 facility at Mukran on Ruegen Islandon in Sassnitz, Germany.
Carsten Koall | Getty Images
WASHINGTON – The United States and Germany reached an agreement to allow completion of the $11 billion Nord Stream 2 pipeline, a thorny, long-standing point of contention between the otherwise stalwart allies.
The agreement reached between Washington and Berlin, which was announced on Wednesday, aims to invest more than 200 million euros in energy security in Ukraine as well as sustainable energy across Europe.
“Should Russia attempt to use energy as a weapon or commit further aggressive acts against Ukraine, Germany will take action at the national level and press for effective measures at the European level, including sanctions to limit Russian export capabilities to Europe in the energy sector,” a senior State Department official said on a call with reporters on Wednesday.
The senior State Department official, who requested anonymity in order to discuss the agreement candidly, added that the U.S. will retain the prerogative of levying sanctions, as well, in the case if Russia uses energy as a tool of coercion.
The official said the United States and Germany are “resolutely committed to the sovereignty and territorial integrity” of Ukraine and therefore, consulted closely with Kyiv on this matter.
The unease surrounding the nearly complete Nord Stream 2 project, a sprawling undersea pipeline that will pump Russian gas directly into Germany, stems from Moscow’s history of using the energy sector to gain leverage over Russia’s neighbors, namely Ukraine.
In May, the United States waived sanctions on the Swiss-based company Nord Stream 2 AG, which is running the pipeline project, and its German chief executive. The waiver gave Berlin and Washington three more months to reach an agreement on Nord Stream 2.
The agreement comes on the heels of German Chancellor Angela Merkel’s visit to the White House, the first by a European leader since Biden took office and likely her last trip to Washington after nearly 16 years at the helm of Europe’s largest economy.
Merkel, the first woman to lead Germany, has previously said she will step down after the September national elections.
During a joint press conference at the White House, Merkel pledged to take a tough stance against Russia if Moscow misused the energy sector for political gains.
Ahead of the July 15 meeting, Biden administration officials and representatives from Germany told CNBC that the leaders of the world’s largest and fourth-largest economies were anxious to rebuild a frayed transatlantic relationship.
A handout photo provided by the German Government Press Office of German Chancellor Angela Merkel and U.S. President Joe Biden stand in the White House with a view of the Washington Monument on July 15, 2021 in Washington, DC.
“Obviously, over the past years, we had a number of fits and starts in the bilateral relationship,” said a senior German government official, who requested anonymity in order to speak candidly about Merkel’s agenda.
“The entire focus was on issues where we disagreed,” the official said, adding that sometimes “allies were seen as foes.”
Throughout his administration, former President Donald Trump frequently dressed down allies and often singled out Merkel’s Germany for being “delinquent in their payments” to NATO.
“The U.S.-German relationship was heavily negatively impacted during the Trump administration. So, there was no question that the relationship had to be renewed rebuilt, etcetera,” explained Jenik Radon, adjunct professor at Columbia University’s School of Public and International Affairs.
Radon, a legal scholar who has worked in more than 70 countries on energy issues, spoke to the complex nature of global energy deals.
The Nord Stream 2 pipeline aims to double the volume of natural gas exported directly to Germany via a network beneath the Baltic Sea, bypassing an existing route through Ukraine.
“Once you try to deliver gas or oil through a pipeline through transit countries, you always put yourself in a predicament because you have a third party that is also involved,” said Randon.
“It’s not just the seller, it’s not just the buyer, there’s also the transit one, but you have no absolute control over that third country,” he said, adding that “doing transit deals are among the most difficult.”
Workers are seen at the construction site of the Nord Stream 2 gas pipeline, near the town of Kingisepp, Leningrad region, Russia, June 5, 2019.
Anton Vaganov | Reuters
Experts on the region see the undersea pipeline as a form of Russian aggression toward Ukraine.
“By eliminating Ukraine as a transit country, Russia can deny it the benefits that come from having gas delivered across its territory,” explained Stephen Sestanovich, senior fellow for Russian and Eurasian studies at the Council on Foreign Relations.
There are two elements to the issue that people often mix up, he added, pointing to Russia’s ability to use natural gas as a political weapon against Ukraine as well as its ability to hurt Ukraine’s economy.
“That’s why the Biden administration has focused on trying to limit or compensate for any economic hit — and it wants a firm German buy-in on that goal,” he said.
However, Russia’s grip over American allies has weakened somewhat due to shifts in energy markets, according to Sestanovich.
“In the years that Nord Stream 2 has been discussed and now all but finished, energy markets have changed, and it’s become much harder for Russia to hold European countries hostage — there are just too many alternative sources of energy,” he said. “The image we have of Russia with a political stranglehold on our allies is becoming outdated.”
Arevon Energy has kicked off operations at Vikings Solar-plus-Storage – one of the US’s first utility-scale solar peaker plants.
The $529 million project in Imperial County, California, near Holtville, features 157 megawatts of solar power paired with 150 megawatts/600 megawatt hours of battery storage.
Vikings Solar-plus-Storage is designed to take cheap daytime solar power and store it for use during more expensive peak demand times, like late afternoons and evenings. The battery storage system can quickly respond to changes in demand, helping tackle critical grid needs.
Vikings leverages provisions in the Inflation Reduction Act that support affordable clean energy, strengthen grid resilience, boost US manufacturing, and create good jobs.
The Vikings project has already brought significant benefits to the local area. It employed over 170 people during construction, many local workers, and boosted nearby businesses like restaurants, hotels, and stores. On top of that, Vikings will pay out more than $17 million to local governments over its lifespan.
“Vikings’ advanced design sets the standard for safe and reliable solar-plus-storage configurations,” said Arevon CEO Kevin Smith. “The project incorporates solar panels, trackers, and batteries that showcase the growing strength of US renewable energy manufacturing.”
The project includes Tesla Megapack battery systems made in California, First Solar’s thin-film solar panels, and smart solar trackers from Nextracker. San Diego-based SOLV Energy handled the engineering, procurement, and construction work.
San Diego Community Power (SDCP) will buy the energy from the Vikings project under a long-term deal, helping power nearly 1 million customer accounts. SDCP and Arevon have also signed an agreement for the 200 MW Avocet Energy Storage Project in Carson, California, which will start construction in early 2025.
Vikings is named after the Holtville High School mascot, and Arevon is giving back to the local community by funding scholarships for deserving Holtville High students.
Arevon is a major renewable energy developer across the US and a key player in California, with nearly 2,500 MW in operation and more than 1,250 MW under construction.
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China’s EV giant BYD is aggressively expanding overseas. As it finalizes plans for yet another EV manufacturing plant, this time in Cambodia, BYD will set up shop next to newly opened Ford and Toyota facilities.
BYD’s impressive growth streak is not slowing down. In October, BYD sold over 500,000 new energy vehicles (NEVs), its fifth straight record sales month and the first time it has crossed the half-million mark in a single month.
With China’s auto market becoming flooded with low-cost competitors, BYD is looking to key overseas markets to drive growth.
After opening its first plant in Thailand earlier this year, a booming EV region, BYD plans to open up shop in another major Southeast Asian market.
According to Khmer Times, BYD is nearing a deal to establish a new EV manufacturing plant in Cambodia. Prime Minister Hun Manet said on Wednesday that the Council for the Development of Cambodia (CDC) is in the final stage of negotiations with BYD to build a new electric vehicle facility in the region.
“We may be aware that BYD is a giant Chinese company specialising in EV production, comparable to Tesla, the largest EV manufacturer in the United States,” Mr Hun Manet said at the event.
BYD closes in on deal for a new EV plant in Cambodia
BYD will follow Toyota, which opened an assembly plant in Cambodia in May, and Ford’s first assembly plant in the region, which opened in June 2022.
Cambodia’s prime minister stressed the importance of attracting new investments. With geopolitical tensions rising, many companies are looking to new locations.
Southeast Asia is expected to become a major electric vehicle hub. The Cambodian government unveiled plans earlier this year to raise automotive and electronics exports to over $2 billion while creating more than 22,000 new jobs.
BYD opening a new EV plant would be “excellent news” for Cambodia, Natharoun Ngo Son, Country Director of EnergyLab, told Khmer Times.
An EV manufacturing plant will “provide an excellent opportunity to reskill or upskill the Cambodian workforce” for new higher-paying jobs. EnergyLab is launching a new skills development program early next year to prepare the Cambodian workforce for the auto industry’s shift to EVs.
The news comes after BYD launched its first electric pickup, the Shark PHEV (BYD Shark 6), in Cambodia last month.
BYD is also planning to open EV plants in Mexico, Brazil, Pakistan, Hungary, and Turkey as it competes with Ford and Toyota in the global auto market.
Electrek’s Take
According to a recent Bloomberg report, BYD is quickly catching up to Ford in global deliveries. BYD outsold Ford in the third quarter by around 40,000 units.
While Ford is cutting more jobs in Europe as part of its restructuring, BYD has been on a major hiring spree as it ramps up production to meet the higher demand.
BYD is known for its low-cost EV models, like the Seagull, Dolphin, and Atto 3, but the Chinese auto giant is expanding into pickup trucks, midsize smart SUVs, and luxury EVs.
Ford is well aware of BYD’s rise in the global auto ranks. CEO Jim Farley has warned rivals in the past about losing significant revenue if they cannot keep up with China. Farley said he was shocked by the advanced tech he saw after a trip to China in early 2023.
Although Ford is shifting gears to focus on smaller, lower-cost EVs, it may be too little too late. Ford is developing what’s promised to be one of the most efficient EV platforms in California, but its first model based on it, a midsize electric pickup, isn’t due out until 2027.
Will BYD overtake Ford in the global auto ranks? Let us know what you think in the comments below.
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Researchers at Canada’s University of Waterloo have developed a new lithium-ion EV battery design that can charge from zero to 80% in just 15 minutes and has a longer lifespan.
The new design also allows batteries to handle up to 800 charging cycles, significantly increasing their lifespan.
Yverick Rangom, a professor in Waterloo’s Department of Chemical Engineering, said, “If we can make batteries smaller, charge faster, and last longer, we reduce the overall cost of the vehicle. That makes EVs a viable option for more people, including those who don’t have home charging stations or who live in apartments. It would also increase the value of second-hand EVs, making electric transportation more accessible.”
The secret sauce here is in the anode, which traditionally relies on graphite. The researchers designed a method to fuse graphite particles together to improve conductivity. This tweak enables lithium ions to move fast without causing typical degradation or safety hazards associated with fast charging.
What’s cool is that they didn’t reinvent the wheel in terms of materials; the team worked with the same lithium-ion components already used in EV batteries today.
“We’re just finding a better way to arrange the particles and providing new functions to the binders that hold them together such as state-of the-art electron, ion, and heat transfer properties,” explained Michael Pope, co-lead of the research and professor at Waterloo’s Ontario Battery and Electrochemistry Research Centre. “This approach ensures that the technology can be scalable and implemented using current production lines, offering a low-cost solution to battery manufacturers.”
The next step? The research team is optimizing the manufacturing process and putting prototypes to the test to gauge industry interest. The goal is to make sure this new battery design isn’t just effective – it has to be scalable and ready for widespread industry adoption.
“It’s crucial that it can be implemented within the existing infrastructure for both battery production and charging stations,” added Rangom, lead researcher for the Battery Workforce Challenge.
The University of Waterloo researchers’ findings are published in the journal Advanced Science.
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