Russia’s Rosatom and Chinese Firm to Establish Year-Round Arctic Shipping Route

Reporting by Gleb Stolyarov; Writing by Lucy Papachristou Reuters June 6, 2024

ST PETERSBURG, June 6 (Reuters) – Russia’s state nuclear agency Rosatom has signed a memorandum of understanding with a Chinese shipping company to establish a year-round container line between the two countries via the Arctic’s Northern Sea Route (NSR), it said on Thursday.

Russian President Vladimir Putin has talked up prospects for the Arctic corridor as Russia shifts its trade eastwards in response to Western sanctions over the conflict in Ukraine.

Rosatom said the agreement with China’s Hainan Yangpu NewNew Shipping Co. Ltd would establish a joint venture for the design and construction of container ships and the shared operation of the shipping line.

Climate Change and Red Sea Turmoil to Boost Arctic Shipping

The agreement was signed on Thursday at Russia’s annual economic forum in St Petersburg – an event that once drew top Western banks and company executives but whose foreign participants now largely hail from countries still friendly with Russia, including China.

Vladimir Panov, Rosatom’s special representative for Arctic development, said 12 voyages were planned for 2024 and the companies hope to ultimately ship up to 50 million tonnes of cargo each year.

“Our main task is to build up to five Arctic-class vessels, which will allow the company to operate on the Northern Sea Route year-round,” Panov said.

Rosatom launched a joint venture last year with Dubai’s DP World to develop container shipping through the Arctic, a route made viable by the melting of Arctic sea ice due to climate change.

Panov said Rosatom had transported over 2 million tonnes of transit cargoes in 2023, a “record” amount.

“This year, we are now working with shippers, we can talk about a new record – we plan to transport up 3 million tonnes,” Panov said.

Chief executive and chairman of DP World Sultan Ahmed bin Sulayem said the NSR has proved to be a “game-changer” for shipping, with supply chain issues and geopolitical instability showing that alternatives to traditional shipping routes were needed.

“But you cannot sell something you don’t have,” bin Sulayem said. “The important thing is that this has to start.”

https://gcaptain.com/russias-rosatom-and-chinese-firm-to-establish-year-round-arctic-shipping-route/

Equinor Secures Offtake Contract with New York State for Empire Wind 1 Project

Mike Schuler June 4, 2024

Equinor, a leading energy company, has announced the execution of a Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority (NYSERDA) for the renewable energy produced by the Empire Wind 1 offshore wind project.

The agreement comes after NYSERDA’s February announcement selecting Equinor as a conditional winner in New York’s fourth offshore wind solicitation.

Empire Wind 1 is set to be the first offshore wind project to connect directly to the New York City grid, with a target to deliver first power by the end of 2026. Onshore construction at the South Brooklyn Marine Terminal is already in progress.

“Empire Wind 1 is a defining project for Equinor and the PSA agreement is an important milestone in de-risking and ensuring a robust path forward as we work toward delivering first power,” said Molly Morris, president of Equinor Renewables Americas.

Empire Wind 1 in January submitted a revised bid to supply power to New York state as part of a solicitation that allowed companies to exit old contracts and re-offer at higher prices.

The PSA comes with a strike price of $155.00 per MW/h, which Equinor described as within the guided range for renewable projects. Equinor plans to use project financing following a final investment decision, with financial close anticipated by the end of 2024. Equinor also intends to bring in a partner to reduce financial exposure.

The Empire Wind 1 project, boasting a capacity of 810 MW, is expected to generate over 1,000 union jobs during the construction phase and contribute to the establishment of a domestic supply chain.

The project will notably revamp the South Brooklyn Marine Terminal (SBMT) in Sunset Park, Brooklyn. The SBMT will serve as the primary staging and assembly area for Empire Wind 1. The port is expected to become a central hub for future offshore wind projects as the industry expands in the coming decades.

In addition, Empire Wind 1 is set to provide a range of economic benefits across the state, including increased funding for workforce and community development. Millions of dollars will be spent on businesses owned by minorities, women, and service-disabled veterans, mostly focusing on onshore development at the South Brooklyn Marine Terminal.

“Major renewable energy infrastructure projects such as Empire Wind 1 are a crucial component in reaching toward New York’s climate goals,” said New York State Energy Research and Development Authority President and CEO Doreen M. Harris. ”NYSERDA applauds Equinor for its ongoing commitment to investing in New York’s?green economy, including the redevelopment of South Brooklyn Marine Terminal, and helping to stand-up New York’s offshore wind industry one significant milestone at a time.”

https://gcaptain.com/equinor-secures-offtake-contract-with-new-york-state-for-empire-wind-1-project/