Capital

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Oil prices tipped over US$92 a barrel as Iraqi production was reported to have dropped by 70%. Global growth could slow if the disruption of energy flow through the Strait of Hormuz lasts more than a few weeks, ratings agency Moody’s warned, outlining baseline and ‘adverse’ scenarios in which Brent prices surge to around $80/barrel and suffer sustained prices of $100 or higher, respectively. Long periods of “significantly higher oil prices… would strain energy importing regions,” the report notes, adding that “high energy prices would raise consumer prices and production costs globally, eroding household purchasing power and weighing on investment” in a shift that could drive interest rates higher.

Meanwhile, petrol and diesel rationing is underway in Australia as fuel distributors assess inventories. (The Australian)

Three Australian clean energy startups will be able to access university testing facilities to validate their technologies after the launch of a localised version of CalTestBed, a California grant program that has helped startups in that state raise $623 million ($US438 million) in funding amidst a clean energy surge that has clean energy supplying two-thirds of the state’s power. The AusTestBed program – which is led by New Energy Nexus and EnergyLab with seed funding from Boundless Earth – will provide $50,000 to Australian startups Powerblocks, Adoxima, and Carbophite, which will have access to testbeds including the UNSW-University of Newcastle backed TRaCE and the University of Melbourne.

Provaris Energy (ASX: PV1) will further develop its hydrogen prototype tank development and liquid CO2 transport program thanks to secured firm commitments for $1.325 million. The funding is expected to help Provaris reach technical milestones for both programs around the middle of this year, and commercial milestones and licensing opportunities later this year. (Proactive)

The rapid change in global energy market dynamics reveals the “dangerously fragile” nature of global energy infrastructure, PitchBook has said in blaming “years of structural underinvestment across the oil & gas value chain”. Regardless of how the Iran conflict pans out, its new analysis notes, new investment will be needed in areas including upstream exploration and production, oilfield services, and midstream/downstream refining. PitchBook also flags natural gas as “a particularly durable investment thesis given ongoing liquefied natural gas infrastructure build-out and surging AI datacentre power demand.”

Projects

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The Good Earth Green Hydrogen and Ammonia project will be one of the first large-scale green hydrogen and ammonia production facilities in NSW, the state government said. The joint venture between Australian company Sundown Pastoral and New Zealand company Hiringa Energy reached financial close last year and received $45.2 million from the NSW government. It will produce enough green hydrogen to create 4,500 tonnes of ammonia a year for use as fuel and fertiliser.

Regulation

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Oil and gas major Santos is pushing to be able to leave old offshore infrastructure out in the ocean as long as it can prove “equal or better” environmental outcomes. Decommissioning is currently the responsibility of industry, with a bill in the order of tens of billions expected in coming decades. The Victorian government is currently inquiring into the scale and legal ownership structure of Victoria’s oil and gas infrastructure and its decommissioning. (The Australian) (Boiling Cold)

Policy

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Australia and Canada will work together to progress the countries towards their net zero goals, with the governments signing a new Clean Energy Partnership that “reaffirms our dedication to the Paris Agreement”. The partnership – Australia’s twelfth such international clean energy deal – will focus on joint action in five key areas including trade, investment, standards and supply chains; grid modernisation and resilience; energy and hard-to-abate sectors; indigenous engagement; and climate change adaptation.

European Commission policymakers are exploring options to shore up the bloc’s energy firms and will present options to European Union (EU) leaders on March 19, with a range of short-term measures under consideration including changes to energy taxes, network charges and carbon costs. Governments are “underusing existing tools” for cutting company energy bills but must become more focused on encouraging reduction in consumption, authorities said in warning that EU producers can’t compete with Chinese and US rivals – even before the Iran conflict caused oil and gas prices to surge. (Reuters)

Climate

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China has set a new five-year plan for cutting its carbon emissions, with the country targeting a 17% reduction by 2030. The new target will leave China short of its reduction targets under the Paris climate agreement, despite laying down a plan to replace 30 million metric tonnes of coal consumption with renewable energy over the next five years. China has invested furiously on solar PV and wind generation, which passed 1.8TW of total capacity last year and now account for nearly half of China’s total power generation capacity. (Eco-Business) (Carbon Brief)

People

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Self-described “NEM nerd” Alex Leemon has started a new role as a commercial analyst at Atmos Renewables. Leemon has previously worked at PolarBlue, Gridcog, and Rheem Australia.

Energy technology platform Kaluza has elevated founder Stephen Fitzpatrick to the role of chief executive officer. Fitzpatrick, who assumes the role from Melissa Gander, is ramping up to steer the company through the rapid pivot towards AI as he works to embed the technology across the company’s engineering teams and operations.