Daily Chemical Reactions

Grid Infrastructure/Management Challenging Power Supply – Good for Unregulated States?
April 24, 2024
Commodities Mentioned:
Industrial Gases, EVs, Ethylene, Propylene, Lithium, Cobalt, Nickel, Ammonia, Wind Power, Solar Power, Hydrogen, Natural Gas, LNG, Coal, Olefins
Companies Mentioned:
Microsoft, Issaquena Green Power, Air Liquide, Air Products, Huntsman, Ineos, Reliance, Versalis, Tesla, Fisker, Breakthrough Energy, Bunge, Visa

Daily Chemical Reaction

Grid Infrastructure/Management Challenging Power Supply – Good for Unregulated States?

Key Findings

  • General Thoughts: The ability of the North American power grid to keep pace with surging demand, let alone rising electricity production, appears grim, though some regional markets are much better positioned than others.
  • Supply Chain/Commodities: We discuss why we agree with Peter Huntsman’s views toward needed Industrial Policy shifts in Europe, comment on Air Liquide 1Q24 results, and show IEA battery material market views.
  • Energy/Upstream: We discuss surging electricity demand, clean or not, in the US, which we view as positive for natural gas based power, and we show a drop in grid applications as many power projects suffer in approval cues.
  • Sustainability/Energy Transition: We discuss exhibits from the IEA Global EV market outlook published earlier this week, rising EV market competition, and China’s significant lead in energy transition supply chains.
  • Downstream/Other Chemicals: We highlight Bunge 1Q24 results, recent crop market movements, and recent global macroeconomic data trends, such as the Japanese Yen falling to a 1990 low relative to the US Dollar.

Exhibit 1: Amid surging energy demand growth, North America faces the prospect of running short of electricity

Source: North American Electric Reliability Corp, Long Term Reliability Assessment, April 2024

See PDF below for all charts, tables and diagrams

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