New base 23 september 2019 energy news issue 1280 by khaled al awadi (1)

Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase Energy News 23 September 2019 - Issue No. 1280 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Fujairah’s Brooge eyes ventures amid plans for refining unit
The National
Fujairah-based Brooge Petroleum is eyeing possible ventures with international terminal operators
as it brings online the first phase of a 250,000 bpd refinery next year, according to its chief executive.
“We have very good contacts with them globally and locally but we don’t exclude or include any
further discussions with them in terms of global synergies,” Nicolaas Paardenkooper told The
National in an interview.
The UAE, which accounts for around 4.2 per cent of global oil production, is a major player in the
crude storage industry through hubs such as Fujairah, which is the world’s second largest bunkering
port behind Singapore.
Just outside the congested Strait of Hormuz, Fujairah has the capacity to handle as much as 60
million barrels of crude and oil products, with capacities expected to increase with the entry of
players such as Brooge Petroleum.
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The company, which announced a merger with Nasdaq-listed Twelve Seas in the US earlier this
year will look to draw on its strong equity position to pursue overseas investment opportunities.
“Given the final part of the merger is almost completed, you might expect in the course of next year
additional ventures,” said Mr Paardenkooper.
“Being a listed company in the US, there’s good opportunity for us to the equity markets for various
expenses, since there are good sources to provide for capital,” he added.
In the first quarter of next year, the company will bring online a 25,000 bpd refining unit, part of a
multiphase 250,000 bpd refinery in order to meet global demand for low-sulphur fuel oil, in
accordance with International Maritime Organisation regulations.
The IMO will enforce regulations to cap sulphur content in bunker fuel from 2020 onwards,
compliance to which is critical for players located in one of the world’s largest bunkering hubs.
Work on the initial phase is already underway with an engineering, procurement and construction
contract awarded to Spain’s Sener and Audex from Singapore last week.
Feedstock for the refinery will come from Brooge’s partner Sahara - a company with offices in
Singapore, Geneva and Nigeria. Mr Paardenkooper declined to comment on the crude grades to
be processed in the refinery.
Parallel to its refining plans, the company is undertaking expansion of its storage capacity in
Fujairah. It currently operates 14 tanks with a collective capacity of 400,000 cubic metres. Last year,
Brooge announced plans to expand the capacity further to 600,000 cubic metres, set for completion
in the second quarter of next year.
“Site works of phase two terminal expansion are progressing well and on the agreed timeline,” said
Mr Paardenkooper. The company would also look to incrementally increase capacity further, if the
market should require it.
“We certainly are looking at more capacity. Tank storage and refineries are our core business. If
there is an opportunity to increase capacity in Fujairah we will most certainly do that,” he added.

Oman: MoU to study conversion of plastic waste into fuel
Oman Observer + NewBase
The German University of Technology in Oman (GUtech), represented by the Rector, Prof Dr
Michael Modigell and the Oman Oil and Orpic Group, represented by Gilles Rochas, the GM
Polymer Marketing — Orpic, have signed a Memorandum of Understanding to collaborate on
research projects, internship opportunities for engineering students as well as excursions,
professional seminars for GUtech students and any other activities that may support enriching the
knowledge of the students.
“Orpic’s production of polyethylene (PE) and polypropylene (PP) is about to increase to 1.4 million
tonnes by next year; this collaboration with GUtech is so timely and instrumental in accelerating the
execution of the circular economy agenda in the country,” said Gilles Rochas.
One of the first joint projects will be on the setting up of a research project on “conversion of plastic
waste to fuel” conducted by Prof Dr Najah al Mhanna, Head of the Engineering Department at
GUtech.
“Our aim is to develop a novel and innovative process that provides a technical solution to one of
the most persisting environmental problem in Oman and in the world. The new process will offer a
sustainable solution for recycling million tonnes of plastic waste in Oman,” said Prof Najah.

Indonesia’s Ministry of Finance introduces Geothermal Drilling Program
Source: Antara News, Antara News
To encourage investment and speed up geothermal development, Indonesia's Ministry of Finance
is introducing a geothermal drilling program that would take early stage risk. As reported today from
Indonesia, the country’s Ministry of Finance is preparing a risk mitigation facility through a
geothermal drilling program to encourage exploration and investment into geothermal development.
“This program assists the government in new well exploration which is currently considered costly
and risky,” Director General of State Wealth, Isa Rachmatarwata said in a discussion in Jakarta.
The private sector remains reluctant to invest in geothermal development due to the risk of exploring
for geothermal resources. The government has now prepared a Government Drilling Program that
aims to mitigate risks in each of the activities of exploration.
The program involves three special mission vehicles of the Ministry of Finance, namely PT Sarana
Multi Infrastruktur (SMI), PT Geo Dipa Energi, and PT Penjaminan Infrastruktur Indonesia (PII).
The three entities will adopt applicative approaches and industrial governance in the explortaion for
geothermal energy resources, so Antara News. This includes planning, budgeting, procurement,
operation and the execution.
Following the discovery of resources, they could then be offered to investors interested in
developing geothermal projects in the country.

“When a well is found and is economically sufficient to generate electricity, it will be offered to parties
that are willing to conduct explorations,”, so the government. How much of the exploration will be
covered by the government under the scheme is unclear, but it can be assumed it only includes
only a limited amount of exploration.
“This does not mean that private companies are not allowed to find energy sources. They can do it
but their numbers are not large if not zero. The government is willing to take the initiative to attract
investment and help speed up development.
Similar news last week, talked about that “Exploration has been carried out in Wesan, East Nusa
Tenggara, and subsequently in Jailolo Halmahera Barat, North Maluku. The drilling was funded by
the government after that, and then auctioned off to the developer,” said Director General of New,
Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral
Resources, FX Sutijastoto.
Governor of Bali asks Indonesian government to stop planned geothermal project
With the strong local opposition to the Bedugul geothermal project on Bali, the local governor has
now confirmed his continued opposition and certain assurances by the government in Jakarta that
the project will not be pushed forward.
>In an endless story about the potential development of a geothermal project in Bali, Indonesia, the
regional governor Wayan Koster has confirmed that the geothermal power plant project in Bedugul,
Tabanan, will be stopped. Koster claimed to have spoken with the Minister of Energy and Mineral
Resources (ESDM) Ignasius Jonan.

“In addition, related to sensitive issues related to geothermal steam power plants in Bedugul. The
Minister of Energy and Mineral Resources was willing to continue, I ask him not to continue,” said
Koster in his one-year remarks at an event in Bali earlier this month.
Koster also talked about his negotiations related to the termination of the construction of the
geothermal power plant project with Jonan. One of the reasons for the project’s development has
been the opposition to the project by the local community.
The concerns mention continue to center around the sacredness of the project site. Koster said
Jonan finally decided to stop the project. Koster then gave another regional option as a place to
develop renewable energy-based electricity generation projects.
“There are other places, Sir, there are Karangasem, Jembrana, Buleleng, Klungkung where
renewable energy is available. Do not give it later if the water is dead there. So it’s over, the
geothermal problem does not need to be discussed. It has been agreed with the Minister of Energy
and Mineral Resources. “The construction will not continue,” he said.
The Bedugul PLTP project, Bali was developed by PT Pertamina Geothermal Energy (PGE) and
Bali Energy Ltd with a joint
operating contract (KOB)
scheme. The development of
this project began in 1974 and
stagnated in 2005.
Quoting CNN Indonesia, since
1997 the community in the
Bedugul region has rejected
the development of the
Bedugul geothermal power
plant since 1997. Even though
exploration permits have been
issued in 1996 and drilling
permits for six wells have been
carried out since 1997. In fact,
three geothermal wells have
also been exploited, resulting
in the project being abandoned
and having been stalled since.
Meanwhile, the estimated
electrical energy that can be
generated from the PLTP Bedugul is 414 MW. The Bali Energy joint contract will be completed in
2040 according to the 2004 contract amendment point, in which the government gets a 34 percent
share of net operating income.
Apart from that, on August 21, 2019 the Minister of Energy and Mineral Resources and Bali Province
signed a cooperation agreement to build a new renewable energy-based power plant. One of them
is based on solar energy, and another to use Crude Palm Oil (CPO).
“Bali’s current capacity of around 1,300 MW until 2025 is estimated to increase to 2,000 MW. My
advice is two, first, the addition is 700 MW, so 350 MW is built in the province of Bali, and another
350 MW is supplied from Java, with Java Bali Connection which is 500 kV. My hope is that the 350
MW built in Bali is entirely from new and renewable energy (EBT), “Jonan said after witnessing
the Bali MoU with PLN about electricity strengthening with the use of clean energy.

Indonisia: Betting on $100 Oil, Driller Aims to Triple Output
Bloomberg - Fathiya Dahrul
Oil’s dominance as energy source may be on the wane, but one Indonesian producer is confident
there’s still plenty of opportunities to be had as the age of the hydrocarbon enters its final act.
PT Medco Energi International is aiming to lift its oil and gas output from 120,000 barrels of oil
equivalent a day to 300,000 in the next five to 10 years, said President Director Hilmi Panigoro. The
explorer -- which already has fields from Indonesia to Libya to Mexico -- is most interested in buying
existing onshore wells, he said in an interview in Jakarta.
Medco’s strategy is based on Panigoro’s view that a dearth of exploration and strong aviation and
petrochemical demand will push crude prices above $100 a barrel in a decade or so. That runs
counter to the perspective of oil majors like BP Plc, which said recently that some of its resources
probably won’t see the light of day due to low prices and an investor push for low-carbon projects.
Crude prices are likely to stay around $60 a barrel in the short term, but “in the long run it will be a
different story as not enough investment is happening upstream to replace declining production,”
Panigoro said. There will be an oil shortage even if fossil fuel use ebbs as electric vehicles take off,
he said.
Medco, which also owns copper and gold mines and gas-fired power plants in Indonesia, kicked off
its buying spree with the purchase of Ophir Energy Plc this year for 408 million pounds ($513
million). Ophir has oil and gas assets in Indonesia, Thailand and Vietnam and the acquisition will
add about 25,000 barrels of oil equivalent a day to Medco’s 2019 output, it said in a statement.
As much as $46 billion of oil and gas assets in Australia and Southeast Asia could be available for
purchase as the majors seek to divest producing fields and rebalance their portfolios toward more
high-growth areas in the U.S. and South America, Wood Mackenzie Ltd. has said in notes this year.
Southeast Asian state oil companies may also seek to sell small stakes in large projects, such as

PT Pertamina’s Rokan block, in order to help finance operating costs, according to the energy
consultancy.
PT Panin Sekuritas is maintaining its buy rating on Medco, said Jakarta-based analyst Juan
Oktavianus. The Ophir purchase was a positive for the company’s financial performance and it has
opportunities for more acquisitions following divestments of some subsidiaries, he said.
Medco prefers onshore assets to deepwater projects because of the heavy capital investment
required in offshore fields, said Panigoro, a graduate of the Colorado School of Mines. Medco will
be “opportunity driven” and consider assets where the cost of production is $10 a barrel or less, he
said. “There will always be money for the right assets,” Panigoro said. “Besides ensuring that it fits
into our business, we will also ensure that our debt-to-ebitda ratio doesn’t exceed three.”

UK: Equinor wins opportunity to develop the world’s largest
offshore wind farm… Source: Equinor
UK authorities have announced that Equinor and its partner SSE were awarded contracts to
develop three large scale offshore wind projects in the Dogger Bank region of the North Sea. This
will be the world’s biggest offshore wind farm development with a total installed capacity of 3.6 GW.
The projects are expected to produce enough energy to power the equivalent of 4.5 million UK
homes.
The Dogger Bank wind farm will consist of three projects, Creyke Beck A, Creyke Beck
B and Teesside A.
Equinor to develop the world’s largest offshore wind farm
The clearing prices for the projects are GBP 39.650 per MWh for Creyke Beck A and GBP 41.611
per MWh for the Creyke Beck B and the Teesside A projects (all in 2012 real prices).
The auction results reflect the continued cost reductions and technological developments and the
increasing competitiveness of bottom-fixed offshore wind. The contracts offer a fixed price for the
first 15 years of operation, providing the projects with a long-term predictable revenue stream.
'The successful bids for the world’s largest offshore wind development represent a game-changer
for our offshore wind business and support the development of Equinor as a broad energy company.
A full-scale development of Dogger Bank will constitute an industrial wind hub in the heart of the
North Sea, playing a major role in the UK’s ambitions for offshore wind and supporting the net zero
ambition. Excellent wind speeds, shallow waters and scale make Dogger Bank well positioned to

deliver low cost renewable electricity to UK homes and businesses,' says Eldar Sætre, CEO of
Equinor. 'Dogger Bank, together with the recent award for Empire Wind in the US, positions Equinor
as an offshore wind major.
These projects provide economies of scale and synergies, making us an even stronger competitive
force in offshore wind globally. We expect the cost reductions obtained by the industry through
continuous project execution and technological innovation will contribute to continued value
enhancement,' says executive vice president for New Energy Solutions in Equinor, Pål Eitrheim.
'We are thrilled at the success of our offshore wind projects at Dogger Bank which combined will be
the largest wind farm in the world. Reaching this point has been a culmination of over 10 years of
development and it is very exciting to work with Equinor on taking the project forward.
We’re confident our wealth of offshore wind experience will enable us to deliver these unique
projects. This success demonstrates that offshore wind is the key technology to enable the UK to
become carbon neutral by 2050 in the most cost-effective way, whilst also delivering significant
economic benefits across the country', says Jim Smith, Managing Director of SSE Renewables.
The Dogger Bank projects are estimated to trigger a total capital investment of approx. GBP 9 billion
between 2020 and 2026. The joint venture will be seeking non-recourse project financing to fund
the Dogger Bank development. A preliminary market sounding of potential lenders has
demonstrated very strong interest for UK offshore wind assets.
The partners are planning for final investment decision for the first project during 2020 and first
power generation is planned for 2023. Further phases of the Dogger Bank project will be developed
thereafter.
The joint venture has selected SSE as the lead operator during the project construction phase and
Equinor the lead operator for operations. Both companies will second personnel into the execution
and operations teams.
The awards were given under the Contracts for Difference (CfD) competitive auction held by
National Grid on behalf of the UK’s Department for Business, Energy and Industrial Strategy
(BEIS) which has successfully commissioned 6 GW of offshore wind to reach a target of 30 GW of
offshore wind by 2030.
Facts about Dogger Bank:
 Located more than 130 km east of the Yorkshire Coast in the UK North Sea.
 Water depth ranges from 20 m to 35 m.
 Each project will have an installed capacity of 1.2 GW. Together, they can cover
approximately 5% of the UK’s estimated electricity generation.
 The first project is expected to be operational in 2023, and the lease is given for 50 years.
 The Wind Turbine Generators (WTG) are expected to be 10+ MW, installed on monopile
foundations.
 The transmission system will be High Voltage Direct Current (HVDC) due to the long distance
to the onshore grid connection point. This will be the first use of HVDC for offshore wind in
the UK.
 The Contract for Difference is for 15 years and indexed for inflation. After the CfD support,
each project will receive the market price for electricity.

Senegal: Yakaar-2 appraisal well confirms world-scale gas
resource offshore Senegal … Source: Kosmos Energy
Kosmos Energy has announced today that the BP-operated Yakaar-2 appraisal well has
encountered approx. 30 meters of net gas pay in similar high-quality Cenomanian reservoir to
the Yakaar-1 exploration well, continuing the 100 percent success rate of wells targeting the inboard
Mauritania/Senegal gas trend. Yakaar-2 was drilled approx. 9 kms from Yakaar-1 and proved up
the southern extension of the field.
The results of the Yakaar-2 well underpin our view that the Yakaar-Teranga resource base, located
in the Cayar Offshore Profond block, is world-scale and has the potential to support an LNG project
that provides significant volumes of natural gas to both domestic and export markets. Development
of Yakaar-Teranga is expected in a phased approach with Phase 1 providing domestic gas and data
to optimize the development of future phases. It will also support the country's 'Plan Emergent
Senegal' launched by the President of Senegal in 2014.
Commenting on the results of the Yakaar-2 well, Chairman and Chief Executive Officer Andrew G.
Inglis said:
'The Yakaar-2 appraisal well demonstrates the scale and quality of the Yakaar resource base.
Senegal is one of the fastest growing economies in the world and Kosmos is excited to be working
alongside BP and PETROSEN to support the country's growing energy needs.'
Located offshore Senegal, the Yakaar-2 well was drilled in approx. 2,500 meters of water to a total
measured depth of around 4,800 meters. The Valaris DS-12 rig, working on behalf of the operator
BP, will now move to the Orca-1 exploration well in Mauritania. Partners in the Yakaar-Teranga gas
project, located offshore Senegal, include PETROSEN, BP, and Kosmos.

U.S: Wind turbines, more to come online in 2019 and 2020
Source: U.S. Energy Information Administration, Preliminary Monthly Electric Generator Inventory
The U.S. Energy Information Administration (EIA) expects that U.S. wind capacity additions in both
2019 and in 2020 will be near the annual record level of additions set in 2012. Wind capacity
additions through June 2019 totaled 3.7 gigawatts (GW).
According to projects reported to EIA through surveys and on EIA’s Preliminary Monthly Electric
Generator Inventory, operators expect another 8.5 GW to come online by the end of this year, with
an additional 14.3 GW by the end of 2020.
Changes in annual wind capacity additions in the United States are often related to changes in tax
incentives. The U.S. production tax credit (PTC), which provides operators with a tax credit per
kilowatthour of renewable electricity generated for the first 10 years a facility is in operation, was
initially set to expire for all eligible technologies at the end of 2012 but was later retroactively
renewed.
Developers that scheduled projects to be completed in time to qualify for the PTC drove the high
level of annual capacity additions in 2012 (13.3 GW). Similarly, the legislated phaseout of the PTC
extension for wind is largely driving the increase in annual wind capacity additions in 2019.
When renewed in 2013, the PTC provided a maximum tax credit for wind generation of 2.3 cents
per kilowatthour (kWh) for the first 10 years of production. Under the PTC phaseout, the tax credit
decreases by 20% per year from 2017 through 2019. Facilities that begin construction after the end
of 2020 cannot claim the PTC.
Under the current PTC legislation, wind projects are eligible to receive the tax credit based on either
the year the project begins operation or the year in which the project owner demonstrates that
project construction has begun and they have spent 5% of the total capital cost for the project.

The 5% threshold provision, known as safe harboring, enables wind developers to receive the PTC
based on the credit available for that year if they complete construction in no more than four calendar
years after the calendar year during which facility construction began.
U.S. wind projects must come online by December 2020 to receive the full 2016 PTC value. As in
previous years, many of the 2020 wind capacity additions are expected to come online in December.
According to reported dates for wind projects coming online in 2020, EIA expects 7.2 GW, or about
half of the annual total, to be completed in December.
Wind power has been the fastest-growing source of electricity in recent years in the Electric
Reliability Council of Texas (ERCOT) region that serves most of Texas. Since the beginning of 2018,
the industry has added 3 GW of wind generating capacity and plans to add another 7 GW before
the end of 2020.
These additions would result in an increase of nearly 50% from the 2017 wind capacity level in
ERCOT. EIA expects wind to supply 20% of ERCOT total generation in 2019 and 24% in 2020. If
realized, wind would match coal’s share of ERCOT's electricity generation this year and exceed it
in 2020.
Natural gas-fired generation in ERCOT has fluctuated in recent years in response to changes in the
cost of the fuel. EIA forecasts the Henry Hub natural gas price will fall by 21% in 2019, which
contributes to EIA’s expectation that ERCOT’s natural gas generation share will rise from 45% in
2018 to 47% this year.
Although EIA forecasts next year’s natural gas prices to remain relatively flat in 2020, the large
increase in renewable generating capacity is expected to reduce the region’s 2020 natural gas
generation share to 41%.

NewBase September 23 – 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil edges further above $64 on doubts over Saudi supply
Reuters + NewBase
Oil rose further above $64 a barrel on Monday, supported by doubts about how quickly Saudi Arabia
can restore output after a crippling attack this month and a resulting greater focus by investors on
supply risks.
Despite efforts by the top crude exporter to reassure the market it can resume full production by the
end of September, state oil company Saudi Aramco has asked some customers to switch crude
grades and delay shipments.
“The geopolitical risk premium has returned with a vengeance and supply-side developments have
been thrust back into the spotlight,” Stephen Brennock of oil broker PVM said. “While Saudi oil
facilities smoulder, the potential for fresh outages in Nigeria, Libya and Venezuela continues to hang
over the market.”
Brent crude LCOc1 was up 31 cents at $64.59 a barrel at 0911 GMT, having risen as high as $65.50.
U.S. West Texas Intermediate crude CLc1 rose 28 cents to $58.37.
Oil price special
coverage

Brent has gained 18% this year, helped by a supply-limiting pact led by the Organization of the
Petroleum Exporting Countries, although concern about slowing economic growth has limited the
advance.
A survey on Monday showed euro zone business growth stalled this month, and the latest U.S.-
China talks have failed to produce signs of a breakthrough in the two countries’ prolonged trade
dispute.
“Investors remain unconvinced that a trade deal is about to see the light of day soon,” said Hussein
Sayed, analyst at broker FXTM. “That’s likely to put a cap on any further gains in risk assets.”
Tension in the Middle East has escalated since the Saudi attack, also lending oil some support. The
Pentagon has ordered additional U.S. troops to be deployed in the Gulf region to strengthen Saudi
Arabia’s air and missile defences.
Britain believes Iran was responsible for the attack and will work with the United States and
European allies on a joint response, Prime Minister Boris Johnson said on Monday. The United
States and Saudi Arabia have already blamed Iran, which denies responsibility.

NewBase Special Coverage
News Agencies News Release Sep. 23-2019
China Is Winning the Great Race in Electric Cars
Elisabeth Behrmann, Andrew Noel and David Stringer
Battery packs clamber up a conveyor belt before dropping into a flame-proof chamber, where they
are crushed into gray metallic mush, a cocktail containing the car fuel of the future.
The facility separates components like cobalt, nickel, graphite and lithium from waste plastic
particles. Factory owner Duesenfeld GmbH is bracing for a tidal wave of spent batteries as
carmakers move beyond combustion engines in huge numbers. Over the next decade, the pile of
retired power plants will grow from almost nothing to 1.6 million tons annually, according to
BloombergNEF.
The recycling push betrays a dilemma at the center of the car industry’s green reincarnation:
Battery-powered cars might not have the carbon footprint of their combustion siblings, but they are
still toxic at heart. The power cells contain raw materials mined in politically and environmentally
delicate places, like Bolivia and the Democratic Republic of Congo, and if estimated growth rates
are any guide, demand will eventually outstrip supply.
“At some point it won’t make sense anymore to dig for raw materials, because enough batteries are
available,” said Duesenfeld Managing Director Christian Hanisch in his office in Wendeburg, located
in the heartland of northern German car production, where Volkswagen AG has its headquarters
and some of its biggest facilities. “As a carmaker, I’d seriously consider safeguarding the raw
materials. A deposit system might work.”

There’s another hard economic truth facing recycling companies and vehicle manufacturers alike.
The process comes at a cost that’s unlikely to be covered by the value of the extracted materials,
which are less precious than the substances retrieved from catalytic converters, for example. That’s
set to expose electric cars to an additional cost burden, further widening the profitability gap to
conventional vehicles.
The transition to battery power will dramatically increase the thirst for raw materials. Deployment of
about 140 million electric vehicles by 2030 will require 3 million tons more copper a year, 1.3 millions
tons more nickel and about 263,000 tons more cobalt, according to Glencore Plc, a top producer of
all three metals. In the case of cobalt, that surge will dramatically outstrip total current mined
production, which stood at 150,000 tons in 2018, according to BloombergNEF.
It’s such calculations that will make recycling inevitable. Already, battle lines are forming, and China
is emerging as a leader in the field. Unlike in the U.S. and Europe -- where high transport and energy
costs are a burden -- recycling vehicle batteries is profitable in China, based on the value of the raw
materials alone. That’s nurturing an industry ready for expansion and in a pole position to compete
with western efforts.
“In both the U.S. and Europe, we tend to look at recycling as a question of how we should take care
of batteries that reach the end of their life,” said Hans Eric Melin, founder of Circular Energy Storage,
a London-based consultant. “In China and South Korea they look at it from the other direction; they
tend to ask themselves how to supply production of battery materials, and recycling is one way to
do that.”
One Chinese player is Ganzhou Highpower Technology Co., which plans to raise recycling of used-
car batteries sixfold next year, part of an ambitious plan by the government to boost recycling power
to 1 million tons annually by 2030 from about 60,000 tons now, according to BloombergNEF.

“Recycling has been a very popular topic, and there’s been a lot of companies joining the market,”
said Ou Hancheng, general manager of Ganzhou Highpower. “The electric vehicle producers are
already realizing the importance of recycling.”
One complicating factor for recycling companies is that prices for cobalt, lithium and nickel have
gyrated wildly in recent years, making calculations harder. Cobalt sulfate quadrupled in the two
years to March 2018 on concern over potential shortages, and have since plunged by about two-
thirds after supplies flooded the market. Lithium prices have also tumbled after a dramatic surge
that saw the battery metal triple in the three years through May 2018.
But a bigger issue is that extracting these materials from spent batteries will come at a cost that
carmakers and consumers may not have fully realized, said Marc Grynberg, the chief executive
officer of Belgian chemicals company Umicore SA.
“What still needs to percolate through to the industry and consumers is that the end of life, whatever
it is, will come at a cost, and that has to be incorporated into the selling price,” Grynberg said.
“There’s a fee to be paid.”
Umicore already recycles batteries for Tesla Inc. at a plant south of Antwerp. Its approach differs
from Duesenfeld’s mechanical removal in that the batteries arrive discharged and stripped of
casings and wiring, before being smelted into liquids to be analyzed and extracted in a process
known as wet chemistry. Grynberg predicted major investments in recycling, saying that beyond his
own company, there’s only been “modest” attention paid so far outside of China to salvaging spent
batteries.
German chemicals company BASF SE, which claims more than a century of expertise recycling
materials, also wants to play a bigger role, though the company cautioned that integrating the entire
process—from collecting the used batteries to dismantling the cases to onward shipping of the
extracted materials—will require a robust local value chain.
“Given the capital-intensive nature of battery recycling, partnering along the value chain is a critical
aspect for success,” said Peter Schuhmacher, head of BASF’s catalysts division. “The economies
of scale very much depend on the number of batteries coming back into the recycling market.”
For a mass producer like Volkswagen, the pressure is palpable. The world’s biggest carmaker is
rolling out the industry’s most aggressive electric-model lineup, expecting sales of 22 million battery-
powered vehicles over the next 10 years.
“It’s our goal to get to a point where recycling is economical, provided there’s the scale and
availability of materials,” the company said. “Electric mobility has significant challenges that can
only be resolved with the right partners in the longer term.”

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Khaled Al Awadi is a UAE National with a total of 28 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE operations
base , Most of the experience were spent as the Gas Operations Manager in
Emarat , responsible for Emarat Gas Pipeline Network Facility & gas
compressor stations . Through the years, he has developed great experiences

in the designing & constructing of gas pipelines, gas metering & regulating stations and in the
engineering of supply routes. Many years were spent drafting, & compiling gas transportation,
operation & maintenance agreements along with many MOUs for the local authorities. He has
become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program
broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 2019 K. Al Awadi

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