High Energy Prices Force One In Six German Firms To Cut Production https://oilprice.com/Latest-Energy-News/World-News/High-Ener…
One of every six German industrial companies feels forced to reduce production due to high energy prices, a survey by the Association of German Chambers of Industry and Commerce, DIHK, showed on Monday…
The energy-intensive industries and firms are particularly hit, as 32% of the companies plan to or have already started to reduce production and even halt entire production lines, the DIHK survey showed. The survey also showed that only half of Germany’s industrial companies have covered their annual 2022 gas requirements via contracts. More than a third of industrial firms still have to buy more than 30% of their annual gas needs…
Last week, German chemicals association Verband der Chemischen Industrie (VCI) warned that Germany’s vast chemicals industry has few options left to conserve natural gas amid uncertainty over Russian supply, with German companies risking shutdowns of production in case the supply situation worsens. Germany’s chemicals industry is the third largest industrial sector in Germany after the automotive manufacturing and machinery sectors.
Putin suggests Germans replace nuclear with firewood www.world-nuclear-news.org/IT-Putin_suggests_Germans_replace…
Russian prime minister Vladimir Putin has told German businessmen that they may have to rely on Russian firewood for heating if they do not want to construct new nuclear power plants or bring in Russian gas supplies.
Germany turns off the hot water: Hanover becomes first big city to ban hot water in public buildings in response to Russian gas crisis www.dailymail.co.uk/news/article-11058375/Germany-turns-hot-…
The Germany city of Hanover has become the first big city in Europe to ban hot water and central heating in public buildings in response to Vladimir Putin’s weaponizing of gas supplies…
There will also be a ban on portable air conditioners, heaters and radiators among the general populace as the average German begins to pay a price for standing up to the Russian dictator…
Klaus Müller, head of the federal energy network, has said that household bills could triple ‘at least’ from next year - urging people to start saving now in order to make it through.
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High Energy Prices Force One In Six German Firms To Cut Production
Barely on topic but my largest and longest held position TcEnergy announced that the cost of building a Nat Gas pipeline to a huge new LNG terminal on the BC west coast has surged cutting into their quarterly profits.
While well known for energy pipelines they are also a major shareholder in several nuclear power plants that are in the process of being refurbished. The income from providing 30% of Ontario’s power needs with clean nuclear power has more than made up for the increased cost to build that pipeline.
I’m too lazy today to hunt down all the links involved that I read yesterday but this one is interesting.
On topic, methinks the coal plants will be opening up in Germany to keep the lights on and factories open? Too bad about all those nice nuclear power plants involved in “We made mistakes” politicians that are now in opposition or retired on generous pensions?
A young lady sat in the dentist chair. As the tooth-driller bent over her, she firmly grabbed him by his “private parts”. Shocked, he asked “What did you do that for?”. She answered “We’re not going to hurt each other, are we?”.
The more Germany tightens the financial noose around Russia’s neck (understanding that there are more holes in these sanctions than in a sieve) and the more weapons they deliver to Ukraine, the colder the winter will get in Germany. That gives about four months for this war to resolve itself into a steady-state that all can live with.
Barely on topic but my largest and longest held position TcEnergy announced that the cost of building a Nat Gas pipeline to a huge new LNG terminal on the BC west coast has surged cutting into their quarterly profits.
The more Germany tightens the financial noose around Russia’s neck (understanding that there are more holes in these sanctions than in a sieve) and the more weapons they deliver to Ukraine, the colder the winter will get in Germany. That gives about four months for this war to resolve itself into a steady-state that all can live with.
You talk as if Germany is the only European country facing the Russian threats and fossil fuel shortages. Time for reality - this is a war between the good guys and Putin. The good guys always win in the end.
The energy crisis is not solely a German problem. All of Europe is involved!
The UK government may delay the closure of its remaining coal power plants, the Independent reports. According to the outlet, the government has contacted EDF Energy about keeping the West Burton A coal-fired plant in Lincolnshire open past its scheduled closure date. It says: “EDF confirmed to The Independent the government had been in touch with the firm in relation to the timing of its closure, but for now it is still on track to close in September 2022.” Meanwhile, the Times, which covered the story yesterday, notes that only three coal power plants are still in operation in the UK. It adds: “The early-stage talks are aimed at preventing Britain becoming even more reliant on burning gas for electricity, as prices hit record highs and the government seeks to end gas imports from Russia.” Bloomberg says talks are “at the very early stage”. However, BBC News says that “the government says it still plans to stop using coal by 2024”, adding that a government spokesperson has said it “made no formal request to EDF”.
I’m figuring this is an example of the Golden Rule: Do unto others what others do unto you. In this case it is still a function of a morality play, but the retaliatory side is the one without morals.
www.nytimes.com/2022/07/29/world/europe/europe-germany-ukrai…
More quietly, many local leaders are pondering which energy-hungry German traditions may have to be put on the chopping block, should the country be forced into energy rationing: Beer making? Christmas markets?
Mr. Hübschle said he believes Bavaria should shut down its famous breweries before letting its chemical industry face gas shortages.
More quietly, many local leaders are pondering which energy-hungry German traditions may have to be put on the chopping block, should the country be forced into energy rationing: Beer making? Christmas markets?
Mr. Hübschle said he believes Bavaria should shut down its famous breweries before letting its chemical industry face gas shortages.
DB2
Sacrilege!! There would be riots in the streets, politicians burned at the stake?
BASF readies more ammonia production cuts in gas supply crunch www.reuters.com/business/energy/basf-considers-more-ammonia-…
Germany’s BASF, the world’s largest chemical company, is cutting ammonia production further due to soaring natural gas prices, it said on Wednesday, with potential ramifications from farming to fizzy drinks…Ammonia plays a key role in the manufacturing of fertiliser, engineering plastics and diesel exhaust fluid. Its production also yields high-purity carbon dioxide (CO2) as a byproduct, which is needed by the meat and fizzy drinks industries.
“We are reducing production at facilities that require large volumes of natural gas, such as ammonia plants,” BASF Chief Executive said in a media call after the release of quarterly results, confirming an earlier Reuters report…Production lines for raw material syngas, a mixture of carbon monoxide and hydrogen, and basic petrochemical acetylene were also candidates for cutbacks to save on gas, the CEO said…
Ammonia production would be a prime candidate for cuts to cushion any gas supply squeeze over the next few months, said Arne Rautenberg, a fund manager at Union Investment. “In the northern hemisphere, nitrogen fertiliser is applied primarily during the spring. It can also be produced in the United States and shipped to Europe,” he said, while adding CO2 supply for the food industry could prove a thorny issue.
There seems to be growing support for keeping Germany’s last nuclear power plants running. The finance minister recently announced support for such a plan.
German Finance Minister Christian Lindner on Sunday called for a halt to electricity production using gas after Russia again cut supplies to Europe.
And… Lindner … again called for German nuclear plants to remain in service until 2024, saying they were “safe and climate-friendly.”
But the Greens are still adamantly opposed to such an idea…
The comments put Lindner into conflict with another of the FDP’s ruling coalition partners, the environmentally-friendly Greens Party. Green’s co-leader Ricarda Lang insisted that a return to nuclear power “will definitely not happen with us.”
If they stop using natural gas for electricity generation, as Lindner suggests, that would allow other industries and the public to have more gas available for other purposes (like cooking and heating and chemicals manufacture).