From NOT A LOT OF PEOPLE KNOW THAT
By Paul Homewood
Now Shell pull out:
Shell’s finance chief said on Thursday the firm had exited a power purchase agreement (PPA) for the planned SouthCoast windfarm off the coast of Massachusetts, agreeing to pay a penalty rather than face rising costs for building the project.
Energy firms from BP (BP.L) to Orsted (ORSTED.CO) have announced hefty writedowns in recent days for their U.S. windfarm projects in the face of high inflation.
The project, formerly known as Mayflower, was planned to have capacity of 2.4 GW.
A PPA (Power Purchase Agreement) was signed by Shell last year to provide electricity to Massachusetts utilities at $76.73/MWh, about £60/MWh. Just months later, they unsuccessfully attempted to renegotiate the contract.
I suspect that Shell makes one more attempt to get a better price, which the Massachusetts public will end up paying for.
Rent seeking, in short.
Shell shed van Beurden to shed its burdens.
Back to basics.
Yes, that ESG con is just a big loser, for losers, who want to lose
The green bubble is imploding at it’s best.
Also seen for the EV market 😀
Bidenomics at it’s finest
Available on Amazon
Massachusetts/Rhode Island did that
Leftists, Marxists and One-World elites did that.
Trump can always go back to being a Democrat if he thinks his prosecutions are political.
Few remember that Trump was a Center Democrat for years before the Ds wandered off the left side of the cliff. It wouldn’t help much today and the Ds will happily munch on the bones of their parents if they don’t quote todays litany correctly.
I was a young very left democrat back in the 1960s.
I strongly supported the American Constitution and legal precedence.
As the seventies and eighties passed, leftists moved far to my left.
I was an independent through the Bush and Obama years and went full republican during Obama’s last term.
Donald Trump ran into the same difficulty. He attended a democrat politics dinner and learned that Trump’s own beliefs are foreign to democrats.
I’m just fine with Donald Trump deciding to be an independent Republican. As far as I care, Donald Trump is the finest Republican since Truman and Theodore Roosevelt before Truman.
‘I was a young very left democrat back in the 1960s. I strongly supported the American Constitution and legal precedence.’
Can you expand on the connection between being a very left Democrat and strongly supporting the Constitution?
Perhaps I can help being a child of the 60’s. Democrats back then were much more center, even the left ones. At that time Republicans were white, flag waving suppressors. They were comfortable ignoring protections the Constitution guaranteed in the name of “national devotion”.
There is a famous picture of the Trump’s along side the Clinton’s laughing and smiling together. What made the picture famous was the inserted caption of Bill whispering to Donald: “Really? You should have seen what I did with a cigar.”
Mr. q: Yes, that would get all cases brought by dem goons (iow, all cases) dismissed, and 15 m. or so paper votes dumped in by helpful dem goons as a bonus. Think he could win?
I’ve seen gas pumps with a Biden sticker pointing to the price saying, “I did that!”.
This would be great next to it!.
Something they agree on.
Holding hostage the fate of the Planet? How dare they!
There are now enough wind operations around the world to effectively project financial results and you will see a growing number of large investors giving pause leaving foolish government programs to flip the bill along with the unsuspecting consumers.
Story tip – Google big waxes about global warming as word’s worst problem, then buys Miami Beach beachfront property – American Thinker
As with other rich hypocrites; nothing personal, just business.
The global elites carry on as if there is no climate crisis, which tells me……..there is no climate crisis
Which gives me an idea, taken from one the recent egregious Trump-trials:
When it comes to buying/selling, or insuring, these beachfront properties it must be an open goal for an enterprising State Prosecutor.
They are clearly overvaluing these properties by neglecting the threat of sea-level rise caused by global boiling.
Et voilà! The District Attorney gets to prosecute them for fraud.
Simples.
Another case of fantasies meeting realities. Wind/solar are not deployable at the dream scale
of the radical greens. Hopefully the commercial fishermen of New England are still
in production.
OMG, Wokeachusetts is driving full speed ahead towards the glory of net zero by ’50. Nobody here wants wind farms on land- and more and more people don’t want solar farms either- not because they’re oppossed to the fantasy of clean and green energy- it’s that they see farms and forests being destroyed. And, now resistance is building against industrial scale battery systems. But, they still want net zero paradise. All we gotta do, they say, is cover every roof and parking lot and put the wind farms at sea. But, not only is that not going do it- it’ll be far too expensive. Many roofs just don’t have a clear south facing side- not blocked by big trees. Many roofs are old and would need to be rebuilt. The grid can’t work with just rooftop solar. Solar on parking lots is even more expensive. And now we see the failure of wind at sea. The greens can dream all they want- they’re not gonna see net zero by ’50 – not even close. If only there was a Republican or Libertarian Party here to resist this insanity, but there isn’t.
As is Michigan. Five new bills dealing with energy and Netzero were recently passed. We can can expect rising rates, less electricity available and more blackouts in winter.
They truly are trying to kill their citizens or they wouldn’t do this.
As my daughter (a PhD at MSU) used to say about her esteemed management: “some of you may die, but that’s a price we’re willing to pay”
If I had a Time Machine, I’d fast forward to 2050, it would be amazing to see all the nuclear power stations in construction, everywhere
If present trends continue to their logical end, there won’t be enough industrial capacity or wealth to rebuild anything reasonable and large enough to be effective.
I other words, look at the condition of most of Africa to see where “the western democracies” are going.
Given how much the world changes every ten years, I think you find yourself wondering which future you went forward in time to find, that you actually ended at.
While you’re at it, please say ‘hey’ to the Eloi for us.
In Massachusetts?
For a few hours of solar electricity per day? No electricity during the winter when it is really needed.
Massachusettsians will gladly accept dead whales on their mostly stony beaches and wind power at treble current rates plus blight their homes?
Run, do not walk, to your nearest sensible state! Preferably a warmer state as Massachusetts may be returning to colder winters.
They already did some dubious deals in the past for heating oil with Chavez to keep warm. It’s the fallback option, with dollar backfall attached.
C’mon, man! Chavez just needed a little cash to pay his Cuban enforcers to keep the people protesting in the streets in line! Ain’t Marxism glorious!?
Oh, oh! Reality setting in at faster-than-expected rate.
No one can say all the “green, renewable” companies and their investors weren’t warned. That they chose to ignore the warnings in the pursuit of profits is solely on them.
Better the investors than the taxpayers. They can afford it.
A lot of those investors are pension funds and 401ks.
That would be me.
https://www.theglobeandmail.com/business/article-pension-plans-investing-offshore-wind/
https://www.reuters.com/sustainability/canada-pension-plan-eyes-unloved-energy-assets-green-transition-2023-10-19/
https://www.renewablepowercapital.com/cpp-investments-establishes-renewable-power-capital-to-focus-on-european-renewables/
Strange, inexplicable silence from Nick Stokes. Perhaps he has invested in Wind Energy companies…
Perhaps so . . . or maybe he bought into the Bankman-Fried/FTX fraud . . . you know, the greater-fool theory of get-rich-quick schemes.
Things used to go better with Shell
https://youtu.be/JTKmoJoXDrM?si=l2_Zh3R_qg_TRaDq
Indeed!
GooooOOOOOOOOOO innnnterrrrrrrrrrnaaaaaaal commmmmbustionnnnnnnn ENNNNGINNNNNNNNNNNNNNNE!!! 😀
Shell ad featuring Ferrari
Ferrari isn’t what is used to be –
https://europe.autonews.com/automakers/ferraris-q3-results-lead-raised-annual-earnings-forecast
77345
Chevron’s dinosaur TV commercial from 1977
I got a big kick out of it at the time.
I bought one of their instant hot molded dinosaurs at the NY World’s Fair.
That dinosaur, an incorrect representation of giant dinosaurs that are still in use nowadays, passed from one child to another until around 2010 when we gifted it to Goodwill.
In the US, they used to run ads extolling the virtues of ‘Platformate’ (i.e. reformate) as a mileage enhancer.
This ain’t over as Shell likely will rebid the project 50% or so higher in price. Then it gets interesting. There are now a bunch of projects in this high priced boat.
David Wojick: ” …… There are now a bunch of projects in this high priced boat.”
Speaking of boats ….
Ship shortage dealt death blow to Orsted’s NJ offshore wind hopes
Governor Murphy says he will hold Orsted to its contractual commitment to complete the project. (Good luck with that.) Will his certain failure to rescue his pet offshore wind project become yet another example of Murphy’s Law?
Those specialized $300 million ships are booked years in advance.
Any fee must be placed in escrow, in case of future cancellation, because the ship will have a huge bank loan that HAS TO BE PAID.
Government Murphy is a woke blowhard, has no business sense, gave Oersted $300 million as a bribe to get Oersted to stay with the projects, which Oersted will want to keep.
World’s Largest Offshore Wind System Developer Abandons Two Major US Projects as Wind Bust Continues
https://www.windtaskforce.org/profiles/blogs/world-s-largest-offshore-wind-system-developer-abandons-two-major
EXCERPT
MORE CANCELLATIONS ARE COMING
New York State had signed contracts with EU big wind companies for four offshore wind projects
Sometime later, the companies were trying to coerce an additional $25.35 billion (per Wind Watch) from New York ratepayers and taxpayers over at least 20 years, because they had bid at lower prices than they should have.
New York State denied the request on October 12, 2023; “a deal is a deal”, said the Commissioner
Owners want a return on investment of at least 10%/y, if bank loans for risky projects are 6.5%/y.
The 3.5% is a minimum for all the years of hassles of designing, building, erecting, and paperwork of a project
Below contract prices, paid by Utilities to owners, are after a 50% reduction, due to US subsidies provided, per various laws, and paid by the US Treasury to the owners. See Items 4 and 6
Oersted, Denmark, Sunrise wind, contracted at $110.37/MWh, contractor needs $139.99/MWh, a 27% increase
Equinor, Norway, Empire 1 wind, contracted at $118.38/MWh, contractor needs $159.64/MWh, a 35% increase
Equinor, Norway, Empire 2 wind, contracted at $107.50/MWh, contractor needs $177.84/MWh, a 66% increase
Equinor, Norway, Beacon Wind, contracted at $118.00/MWh, contractor needs $190.82/MWh, a 62% increase
https://www.windtaskforce.org/profiles/blogs/liars-lies-exposed-as-wind-electricity-price-increases-by-66-wake
SHELL: LONDON, Nov 2 (Reuters) – Shell’s CFO said on Thursday, the firm had abandoned a power purchase agreement (PPA), at contract price of $76.73/MWh, for the planned 2400 MW SouthCoast offshore wind project, off the coast of Massachusetts, agreeing to pay a $60 million walk-away penalty, rather than face much higher costs for building the project.
NOTE: That contract price needs to be at least $150/MWh, based on “contractor needs” prices in above table
BP (BP.L) and Oersted (ORSTED.CO) have announced hefty writedowns , and US offshore project cancellations, in recent days, in the face of high inflation, high interest rates, and lack of the timely availability of specialized ships.
Higher interest rates will kill a lot of projects, not just wind farms.
A) I assume gov’nor Murphy has not read the contract.
B) I assume the contract spells out penalties for cancellation? When the contractual penalties are much less than finishing the project far over budget, that is, massive financial loss for Orsted.
Murphy did not write Murphy’s Law; it was another man named Murphy.
Original bid, a money loser, was for $76/MWh
Any rebid would be for at least $145/MWh, based on prices contractors were asking who had much lower contracts with NY State
Seems to me that since the various state governments have mandated the use of renewable energy for electricity production, the state regulatory agencies will have to accept the higher bids at some point. The cynic in me says this is all theater. The realist in me says that most voters are unaware or don’t care.
At this point it’s every man for himself.
“renewable“ energy
Paid for with newly printed money
Without anything of value backing it.
Story tip
https://www.wind-watch.org/news/2023/11/03/the-inadequacy-of-wind-power/
Wind power, or as Mother Nature calls it, wind plague, is not only an engineeringly incompetent cash cow for the few, but is the nemesis of wildlife, in the skies and seas
I hope the day it all comes tumbling down is soon, for the environments sake
The Grand Solar Minimum is progressing as forecast. The last time this happened was around 400 years ago in the Little Ice Age when it was very cold compared to the present with famines and millions of deaths.
Really!?
Got any data to back up those claims?
Meanwhile, King Coal is keeping UK lights on, yet again
https://app.electricitymaps.com/zone/GB
12 months – 1.53%
30 days – 1%
24h – 2.06%
Wind, gas and nuclear keep the lights on.
Hmmm! You should check your data old chap
Coal today has peaked at 1.423GW, with an average of 0.926GW, so far
As I said, keeping the lights on, with gas, nuclear & interconnectors – wind, on any day, not so much
Sorry, gas and nuclear are keeping the lights on, while wind merely destabilizes the grid. Solar doesn’t contribute a damn thing.
Whenever anyone pays off to avoid a larger loss means that due diligence was not performed correctly upon the initial proposal.
It’s embarrassing when pie in the sky actually bites you.
Face plants for all involved
Not sure I agree entirely. I think that the penalty represents a small option premium against the risk that the market environment changed. I hate to think what it would have cost in interest rate derivatives to protect against rising rates, but this looks much cheaper than purchasing insurance through the banks. Plus insurance against rising capital cost was otherwise unobtainable. Of course if you were clairvoyant you would have anticipated the market souring and not gone ahead. What would have been very bad would have been not to have the exit penalty clause as part of the contract. That would have left them on the hook for a very substantial damages suit.
This has been brewing for a while:
https://www.wbur.org/news/2023/06/05/massachusetts-offshore-wind-contract-canceled
and it seems Mass. and RI have already turned down the option of agreeing a higher price. Perhaps they didn’t understand how the contract worked. Now they are faced with the consequences of trying to procure alternative capacity. Maybe they will manage to do that at a lower price than the wind farm would have cost, but their attitudes to securing say pipeline gas and CCGT are not positive.
Energy firms from BP (BP.L) to Orsted (ORSTED.CO) have announced hefty writedowns in recent days for their U.S. windfarm projects in the face of high inflation.
And now Shell.
Allow me to spell it out for all of them one more time:
F-E-A-S-I-B-I-L-I-T-Y S-T-U-D-Y.
Physics and economics would eventually get them if inflation didn’t.
CD
When you belong to the WOKE crowd, you cease to be rational
You enter into Alice in Wonderland La-la-land
The world “feasibility” is banned, drowned in rah-rah kumbaya.
The Democrats are using the federal government as a no-limit credit card to implement SOCIALISM, and finance Ukraine folly and Open Border folly, “for as long as it takes”
This year’s budget deficit is about $1.7 TRILLION and counting, plus the INTEREST on the existing national debt is about $1.0 TRILLION
The US will need a multi $TRILLION bail-out from China, but that will definitely not happen
The US has a $1.0 TRILLION trade deficit, year after year, courtesy of insane trade policy give aways
I see that Zelensky has complained petulantly that the Israel-Gaza conflict is taking attention away from Ukraine; that’s not going to help his cause.
Whales migrate using their senses, Wind Farm construction disturbs their senses…. The stigma is growing to much for Shell!!
Fascinating: The scam that started with “Save The Whales” may be torpedoed by “Save The Whales.”