Mozambique to Cash In on Gas Boom
Mozambique, one of the poorest economies in the world, seems poised to cash in on a gas-boom, states new research from natural resources experts GlobalData.
The new research cites a series of discoveries made in the Rovuma Basin during the last three years, which promise Mozambique the title of major Liquefied Natural Gas (LNG) exporter, if challenging legislation and infrastructure is overcome by the government and wealthy gas giants.
Mozambique’s geographical location means that its LNG production can easily reach both Asian and European markets. Representing one of the fastest developing energy players in East Africa, the country aims to attract investments of around $50 billion by 2020.
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However, some are pessimistic about industrial development in the country. Civil war in Mozambique ended in 1992, but destruction caused to the country’s infrastructure remains, and the country lacks a well-developed heavy industry which could support LNG sector development. International companies would require a shift in current laws and legislation in order to benefit fully from the country’s resources.
Mozambique’s unskilled and uneducated workforce also poses a problem. The country presently limits the employment of expatriate workers to a maximum 5%–10% of a company’s total workforce, yet skilled labor for LNG projects may not be available within Mozambique. Work permits required for foreign employees exceeding the company limits are individually approved, representing a time consuming procedure.
Current foreign exchange regulations also demand that export income is repatriated to Mozambique, and that half of export sales proceeds are converted to local currency. Regulations must therefore be overcome, in order for LNG contractors to win their lengthy battle with the law.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.