Authorities approved amendments to the island’s Energy Administration Act aimed at enhancing the self-sufficiency of major electricity consumers as well as reducing their reliance on the grid, according to a report by Taipei-based Central News Asia on Thursday. The goal of these measures is to strengthen demand-side management and improve efficiency, the report said, citing Premier Cho Jung-tai.

The amendment also mandates the disclosure of information on power sales, such as consumption by industries and regions, to facilitate the planning of fuel-saving measures in the future, according to the report.

The move highlights the government’s efforts to adapt to increasing electricity demand, especially as the island houses some of the world’s biggest chipmakers. Government-owned Taiwan Power Co. expects demand to climb by more than 5 gigawatts through 2030, mostly driven by semiconductor manufacturing and the rise in artificial intelligence and data centers.

It also comes as the import-reliant island scrambles to shore up energy security against a backdrop of the Middle East war, which has upended global fuel flows. Taiwan imports around 96% of its energy, with liquefied natural gas accounting for roughly half of its power generation. 

The island has been able to avoid a crippling fuel shortfall only by getting expensive supply from the spot market, where prices are more than double that of long-term contracts, and estimates it has enough natural gas through September.

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A dispute over wages and conditions involving maintenance contractor UGL Ltd. is set to trigger action from Wednesday at Woodside Energy Group Ltd.’s Karratha Gas Plant and Pluto facilities, the Offshore Alliance union said in a Facebook post. Separately, workers at Inpex Corp.’s Ichthys project are set to strike unless a final Fair Work Commission-facilitated bargaining meeting scheduled for Friday results in an agreement.

The moves echo those preceding strikes at Chevron Corp. facilities in Australia that caused a surge in global natural gas prices in 2023. They come as disruptions in the Middle East curb LNG flows through the Strait of Hormuz and intensify competition for alternative cargoes, with Australian producers already running close to operational limits. 

Woodside’s Karratha Gas Plant has export capacity of about 14 million tons a year, while Pluto LNG can produce about 5 million tons and is being expanded with a second train of about the same capacity. Ichthys accounts for about 2% of global supply, with capacity to ship around 9.3 million tons a year, mainly to Japan.

UGL declined to comment. Woodside said it respects contractors’ rights to strike and that “any potential protected industrial action involving UGL employees will be managed by UGL.” 

Inpex “continues to actively engage in the bargaining process,” the company said last month. 

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Trump made the comments in an interview with Fox News, after a White House official on Thursday said China was interested in purchasing more US crude to reduce its dependence on the Strait of Hormuz. The crucial waterway has been effectively closed since the Iran war began in late February, bottling up roughly a fifth of the world’s oil and liquefied natural gas flows, driving up prices.

China’s official statements have so far not mentioned energy as a topic the two leaders have discussed, but did say the Middle East was addressed. Trump and Xi spoke for more than two hours on Thursday and are scheduled to meet again on Friday before the US president heads back to Washington.

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Beijing Energy Congress 2027, taking place at the China National Convention Center from 13-15 January 2027, will provide a platform where global energy leaders, policymakers, investors, and technology innovators converge to collaborate, gain actionable insights, and access real-world solutions essential for shaping future energy systems.

As governments and industries prioritise energy resilience amid competing pressures for resources and seek to develop, finance, and deploy next-generation energy systems… China stands as a centre of progress.

Conflict in the Middle East has prompted some nations, including China, to re-examine where they secure reliable, affordable energy and how countries build robust systems for a future in which economic advancement drives demand growth and decarbonisation reshapes the way energy is produced, traded and deployed. Beijing Energy Congress 2027 will take place in an era of urgent change, offering compelling insight, enabling crucial dialogue, and hosting essential solution providers.

As governments and industries prioritise energy resilience amid competing pressures for resources and seek to develop, finance, and deploy next-generation energy systems that are secure, flexible, and capable of supporting long-term growth, China stands as a centre of progress.

Energy security

Energy supply security has become a critical issue in 2026 as the Israel-US conflict with Iran impacts global markets.

Recent conflicts have highlighted the vulnerability of key supply routes on which numerous Asian countries, including China, rely for power generation and economic development. Resilient supply chains will feature among the primary subjects explored in high-level strategic conference sessions and leadership roundtables across the three days, as well as in a world-class exhibition showcasing the latest technologies and scalable solutions across the energy value chain.

Sector focus

Beijing Energy Congress will highlight eight key sectors as China’s 15th Five-Year Plan (2026–2030) shapes the nation’s role in the next stage of the global energy transition.

As the world tackles existing and evolving energy challenges, keeping cities and data centres powered requires innovative thinking and smart solutions.

The sectors — oil, natural gas and LNG, hydrogen, renewables and low-carbon solutions, energy manufacturing, nuclear energy, electrification, AI, digitalisation and technology, and shipping and logistics — will drive discussion as industry leaders assess how the policy direction of the Five-Year Plan will shape energy markets, investment priorities, and international partnerships.

Influential minds

Attendees will engage with exhibitors and industry visitors among the industry’s most innovative and effective minds across every value chain segment. As the world tackles existing and evolving energy challenges, keeping cities and data centres powered requires innovative thinking and smart solutions.

China’s plan lists embedding energy security into the nation’s overall national security framework.

Participants will connect with energy leaders, technical experts, policymakers, project developers, entrepreneurs, investors, financiers, traders, and offtakers.

Strategic conference

The Beijing Energy Congress will provide a vital forum for China and the global community to shape energy policy, innovation, and long-term growth. The conference will bring together CEOs, ministers, policy leaders, financiers, and technology innovators to address key challenges and opportunities in hydrocarbons, LNG, hydrogen, renewables, electrification, low-carbon solutions and more.

Discussions will examine the strategic forces shaping the future of energy in China, including scaling clean energy, ensuring the reliable role of hydrocarbons in system stability, and deepening international cooperation.

Participants will focus on policy, capital, technology, and global partnerships, addressing key issues such as diversifying oil and gas supply, expanding new energy sources while maintaining reliability, developing bankable projects, enhancing cross-border trade and investment, and aligning global and Chinese market expectations.

China’s 15th Five-Year Plan also includes four key areas and cites accelerating new energy system construction and building an “energy superpower” as overall objectives:

• In the area of industry planning, the blueprint lists boosting the development of emerging strategic industry clusters in new energy and materials, aerospace, and low-airspace economy, along with other areas, as a key aim.
• In the technological innovation sphere, the plan lists developing 20MW+ of offshore wind turbines and 15MW+ of onshore wind turbines; commercialising flow batteries and compressed-air energy storage; and achieving breakthroughs in fusion research.
• Under industrial synergy, the latest five-year plan details establishing “centralised and distributed” systems among its aims, alongside building bases that integrate wind, solar, hydrogen, ammonia, and methanol power generation.

China’s plan lists embedding energy security into the nation’s overall national security framework and building a “three lines of defence” system. This covers supply chain resilience, systematic adjustment, and emergency response.

Enhancing China’s international footprint

China’s “go global” strategy promotes efforts to build production capacity around the world while internationalisation efforts shift from the exporting of products only to that of complete industry chains.

KPMG says Chinese wind power enterprises are constantly improving their “go global” business model and localising services. Export volumes of photovoltaic modules continue to rise alongside breakthroughs achieved through technological iteration. KPMG acknowledges challenges during this globalisation journey, including ambiguity of government policies, market entry barriers, supply instabilities, and difficulties in secure financing for technology-innovative entities.

Fossil fuels

The primary source of global energy continues to be fossil fuels, with oil the largest single source. It provides a third of total energy demand, while coal is still extensively used, but carbon goals are being pursued.

Key takeaways

• About 30% of global fossil fuel consumption is natural gas: China, the US, Russia, and Iran were the largest producers in 2024, comprising 53% of global gas output.
• Global coal demand hit a record high (16EJ) in 2024: the Asia Pacific region consumed as much as 83%, including 67% demand from China, primarily for power generation.
• Dual carbon goals are being addressed by methods including CCUS and AI-driven efficiencies.
• Geopolitical conflicts continue to be the most critical factor impacting fossil fuel price and supply.

Hydrogen energy

With hydrogen now formally recognised as an energy category under the 2025 Energy Law and backed by a comprehensive three tier energy policy system, China is accelerating deployment across the value chain. At the same time, advancements in electrolyser capacity and AI driven optimisation are reshaping global cost curves and positioning the country as a central force in the future green hydrogen economy.

Key takeaways 

• China has established a three tier hydrogen policy system enabling industrial-scale rollout: Top level design → mechanism foundation → local implementation.
• China’s hydrogen market is set for massive expansion, driven by: 

          → A complete industrial supply chain

          → Annual production capacity of 50+ GW electrolysers

          → Decreasing equipment costs, which profoundly influence the global cost curve.

• AI-optimised hydrogen systems are accelerating:

          → Electrolyser efficiency to exceed 90% (up from 60–80%)

          → AI-driven cost reductions of ~15% and energy-use cuts up to 10% expected by 2030

Nuclear energy

China is entering a pivotal period for next generation nuclear technologies — particularly fusion — where rising investment, rapid technological breakthroughs, and policy prioritisation are accelerating progress from laboratory research toward early commercial pathways.

Key takeaways

• Global energy policies are shifting toward “affordability + supply stability”, leading many countries to reassess nuclear, including SMRs and fusion.
• Since 2025, investment in fusion has surged, with primary market financing exceeding RMB 10 bn.
• Global nuclear fusion financing in 2025 totalled over USD $9.7 bn.

• This Market Outlook report was produced as a part of Beijing Energy Congress's Energy & Geopolitics series. For more information, visit: Beijing Energy Congress 2027

The funding is expected to strengthen supply chains needed to support new nuclear generation in the 2030s.

The DOE said the funding is designed to address bottlenecks that have slowed domestic progress on new nuclear builds, with projects focused on licensing, site preparation and supply-chain readiness for Generation III+ SMRs. It added that the move is part of a broader push to add “new, affordable, and reliable energy” as electricity demand rises.

“Advanced light-water SMRs will give our nation the reliable, round-the-clock power we need to fuel the President’s manufacturing boom, support data centres and AI growth, and reinforce a stronger, more secure electric grid. These awards ensure we can deploy these reactors as soon as possible,” said US Secretary of Energy Chris Wright.

Award allocations

Two of the largest awards fund Early Site Permit (ESP) work: Constellation SMR Development will receive $17.26 million for a New York site, and Nebraska Public Power District will receive $27.86 million for a Nebraska site.

The rest of the awards target manufacturing capacity and quality assurance across the nuclear supply chain. 

BWXT Nuclear Energy will receive $21.42 million to procure equipment for its Indiana facility to support final assembly of reactor pressure vessels and other large nuclear reactor components, while Scot Forge Company is awarded $12.27 million to install a large lathe and milling machine at a facility in Illinois. 

American Forgemasters Company will receive $2.9 million for a new furnace in Pennsylvania, to support domestic production of large component forgings.

Funding is also awarded to support materials and fuel capabilities. 

Framatome U.S. Government Solutions will receive $8.8 million for fuel fabrication in Washington; Global Nuclear Fuel Americas will receive $3 million for a new fuel-rod line and automation in North Carolina; and Container Technologies Industries secures $547,900 to expand nuclear quality assurance certifications in Tennessee.

Following the release of China’s 15th Five- Year Plan, the committee sought to ensure the global reach of the congress as a key fixture on the energy conference calendar.

Energy strategy and resilience

Amid the current unrest in the Middle East, the committee highlighted geopolitical insights and developments as a key component of the Beijing Energy Congress energy strategy and policy theme.

Major companies involved in bulk commodities such as coal and natural gas place great emphasis on geopolitical issues, viewing them as closely tied to energy security, bottom-line thinking, and supply chains.

“Both the industry and investors are highly attentive to policy forecasts and assessments in this area,” the committee confirmed.

China has institutions engaged in researching energy, geopolitics, and energy enterprises. As they examine energy resilience, members are looking to experts in international relations to speak at Beijing Energy Congress 2027.

A trend toward energy independence is gaining traction globally. In the future, more countries may turn to domestic resources, seeking to enhance energy self-sufficiency and transition from reliance on external supply to energy independence.

“Countries and companies are rethinking how they plan for the future, and the connotation of energy security is evolving,” the committee heard.

“This shift aligns with the thinking behind China’s ongoing formulation of the 15th Five-Year Plan.”

In the area of energy enterprises, members discussed placing a strong focus on corporate strategy, including sustainability and ESG. Discussions could be framed around the context of the energy transition, internal and external circumstances, and policy documents — such as requirements and goals within the 15th Five-Year Plan — while also embracing corporate strategy, development characteristics and trends, and future outlooks.

Enterprises are making large-scale investments in energy storage. These fulfil corporate responsibilities while they are also exploring commercial returns. The committee proposed inviting representatives from enterprises specialising in sustainability or investment strategy.

Cooperation for future China energy security

Among the threads Beijing Energy Congress 2027 will examine is domestic production and the supply lines that provide natural gas supply security.

Committee executives are seeking added perspective on “how to further deepen medium- to long-term cooperation in the context of a buyer’s market, taking shape under new circumstances, and the growth of China’s future demand”.

This could come from executives of gas divisions at major China-based companies and from senior executives of global LNG trading departments.

The current period of ample supply presents the best opportunity to build a more resilient cooperation framework, and building enduring partnerships between global sellers and Chinese buyers could ensure “success in China”.

The current global situation has drawn attention to which countries are the most resilient. China’s long-term planning capabilities and systemic resilience demonstrated in crisis response have attracted widespread interest, with many viewing China as one of the most resilient countries and looking to learn from its experience.

By inviting representatives of international NOCs, procurement leaders, and heads of international cooperation departments at Chinese companies, Beijing Energy Congress 2027 could focus on how to make commercial ties in crude oil trade more secure, and on better collaboration with international partners.

Foreign-invested oil companies operating in China are involved in trade, but also interested in investments, the committee was told. This makes discussions on upstream oil and gas exploration and development, including unconventional oil and gas, relevant with regard to the topic of international cooperation.

Enduring energy supply meets new sources

With hydrocarbon supplies thrust back into the global energy spotlight amid conflict in the Middle East, Beijing Energy Congress 2027 will feature additional discussions related to oil.

The committee suggested discussions should explore how to “shift oil security from emergency response toward more institutionalised arrangements”. This could include options such as deepening long-term contract mechanisms, investment in alternative supply channels, and coordinated optimisation of strategic reserves.

Committee members suggested examining upstream oil E&P, including discussions of relevant technologies, such as those for integrating new energy sources.

Green energy progress with collaboration

With insights from a diverse mix of speakers from government, enterprises, and research institutions, the committee is driving Beijing Energy Congress 2027 to examine China’s already significant green energy achievements and opportunities. These include scaling onshore and offshore wind, biofuels as an alternative energy pathway for transport and industry, and decarbonising the maritime economy for greener global trade.

Alongside power system resilience, members have called for the need to clarify how to achieve effective operation, and to explore how to further advance development in the context of renewable energy, which already accounts for a high proportion of China’s power mix. This would cover areas such as investment and flexible peak-shaving power generation.

China is actively promoting the development of green fuels, including biofuels … further improvements are needed in areas such as standards and the sustainability certification of green fuels, while the EU has extensive experience in sustainability certification.

Battery storage systems, including their flexibility, stability, and role in renewable-driven operations, will also be in focus as China is proactive in promoting the development of green fuels — such as biofuels — but standards and sustainability certification need to be enhanced. Countries and regions with well-established green sustainability certification systems could share their experience at Beijing Energy Congress 2027.

Since China is relatively rich in geothermal resources at a time when geothermal energy accounts for about 5% of new energy supply, it could become one of the future directions for new energy development; however, there is a need to modernise the grid and globalise China’s power infrastructure for a renewable future.

Demand spotlight

Beijing Energy Congress 2027 will look to domestic and international speakers to share perspectives on key demand-side application scenarios globally, including in China, such as future power generation, transportation applications, and the development of AI and data centres. Through dedicated LNG discussions, the committee hopes the event will explore how Chinese buyers can adjust their procurement logic in response to changes in the context of the new LNG trade landscape. Currently, many domestic buyers in China still follow the traditional mindset of “procurement based on demand”. Discussions, from the buyer and seller perspectives, could examine why domestic companies have been reluctant to change and what constraints exist. 

High hopes for nuclear and fusion

While it currently accounts for only about 3% of primary energy consumption, nuclear energy input is expected to increase amid the hope that, through technological advancements, this share will rise to 10% by 2045. The next generation of this re-emerging energy source will be on the Beijing Energy Congress 2027 agenda, with insights from Chinese and international experts. Committee members have also recommended a spotlight on China’s hydrogen journey, including green-led production, and how that could be of value to the world at scale.

The country is also making breakthroughs and innovations in nuclear fusion technology.

Carbon market connectivity

Opportunities are arising for cooperation between China and Asian and European carbon markets. These include the Paris Agreement, the implementation of carbon border adjustment mechanisms, and the International Civil Aviation Organisation’s efforts to establish an international carbon offsetting scheme for aviation.

Active Asian countries include Singapore, which leads in mechanisms, institutions, and system development, and Vietnam, which is also building a national carbon market. China’s ETS, the China National Emissions Trading System, is the world’s largest carbon market by covered emissions (according to the International Carbon Action Partnership).

Financial institutions are imposing increasingly stringent low-carbon requirements on investment portfolios. New energy enterprises face financing challenges in areas such as low-carbon transition, overseas investment, and technological innovation.

Currently, secondary market trading volume in China is relatively low, while in the primary market (allowance allocation), sectors such as power, steel, cement, and electrolytic aluminium have already reached 8 billion tons in coverage.

Beijing Energy Congress 2027 will examine this, as well as green and transition finance, as the industrial sector transforms.

Mubadala is investing alongside a consortium led by Apollo-managed funds, which includes USS and La Caisse. The investment follows Apollo Funds’ acquisition of a 50% stake in the joint venture holding Hornsea 3, with Ørsted retaining the remaining 50% ownership and continuing to lead the development, construction and operation of the project, Mubadala said in a statement.

Powering UK homes

Hornsea 3 is Ørsted’s third gigawatt-scale offshore wind project within the Hornsea zone in the North Sea. Upon completion, the project is expected to deliver 2.9GW of capacity, providing enough renewable electricity to power more than 3.3 million UK homes.

The UK is the largest offshore wind market outside China and one of the most established globally, supported by a stable regulatory environment and long-term policy commitment. The country has set a target of up to 50GW of offshore wind capacity by 2030, as part of its broader ambition to reach net zero. This is underpinned by rising electricity demand, expected to more than double by 2060, reflecting structural shifts across transport, heating, and digital infrastructure.

Karim El Jazzar, Head of EMEA, Infrastructure, Mubadala, said: “Hornsea 3 is a large-scale infrastructure asset supporting the expansion of renewable generation capacity in one of the world’s most established offshore wind markets. This investment reflects Mubadala’s approach of investing alongside experienced partners in high-quality infrastructure assets that support the energy transition while delivering long-term value. As electricity demand continues to grow, projects of this scale will play a critical role in expanding generation capacity and supporting the transition to a more sustainable energy system.”

Adam Petrie, Infrastructure Partner, Apollo, said: “Mubadala is an exceptional partner and we are pleased to welcome them to the Hornsea 3 consortium. Their investment alongside Apollo Funds and leading institutional investors speaks to the quality, scale and potential of the Hornsea 3 project as a generational infrastructure asset with the capacity to provide reliable, renewable power to over 3 million homes across the UK.”

This transaction further strengthens Mubadala’s partnership with Apollo and builds on its growing portfolio of renewable energy investments globally. Mubadala has previously invested in renewable energy platforms including Tata Power Renewables, Skyborn Renewables, PAG Renewables, and Rezolv Energy, supporting renewable power development globally, Mubadala said.

Lightrock’s Accelerate7 will invest $10 million to $50 million in growth-stage companies across Sub-Saharan Africa, South Asia and Southeast Asia, according to a statement reviewed by Bloomberg News. 

The fund drew investment commitments from energy companies Equinor ASA, Shell Plc, TotalEnergies SE and LGT Group, the private banking and asset-management firm of Liechtenstein’s royal family, among others.

“The fund’s LPs include strategic energy companies looking to support solutions further down the value chain than their current operations, as well as potential future acquirers of the portfolio companies,” Lightrock Chief Executive Officer Pal Erik Sjatil said in an interview. 

The new strategy is focused on investing in companies across three core sectors: access to electricity, clean cooking and technologies such as electric mobility and energy storage. Singapore-headquartered investment firm TRIREC will help deploy the fund in Southeast Asia.

“Accelerate7 is investing at the intersection of infrastructure and growth equity, or infra growth equity, targeting businesses that provide essential infrastructure or enabling services,” Sjatil said. 

The new fund has already made four investments: SolarSquare, a rooftop solar system provider; Sun King, an off-grid solar energy company; Euler Motors, an electric vehicle manufacturer; and ATEC Global, an IoT-enabled clean cook-stove provider.

“The fund is specifically designed to bridge the equity gap in emerging markets, focusing on United Nations Sustainable Development Goal 7: affordable and clean energy,” said Ademidun Edosomwan, a partner and head of energy access at Lightrock. “While there is significant debt available in these markets, there is a chronic shortage of equity.” 

©2026 Bloomberg L.P.

The Energy Transitions Commission, whose members include executives from ArcelorMittal SA, HSBC Holdings Plc and Shell Plc, said in a new report that the current Middle East crisis highlights “a structural vulnerability in the global energy system: heavy reliance on geographically concentrated fossil fuel supply and critical transit routes.” By contrast, “clean energy systems are structurally immune to this type of shock,” the group said.

The ETC, which is co-chaired by former City of London finance regulator Adair Turner, joins a growing chorus arguing the war in Iran may ultimately strengthen the case for renewables. The conflict, which has disrupted oil supplies and pushed up fossil-fuel prices, has set the stage for a wave of investment as governments seek to boost energy independence. 

“Almost every country in the world could be energy sufficient in renewable electricity in a way that it just couldn’t possibly be in fossil fuels,” Turner said in an interview. “The supply of fossil fuels is extremely unequally divided across the world, and so there are some countries that get enormous fossil fuel rents, while others are big importers.”

Clean energy systems “change the physical and economic structure of energy supply,” making them more resilient than fossil-fuel alternatives, the ETC said. While oil and gas systems “depend on continuous flows of extracted, traded and transported commodities,” those built on green power rely mainly on “one-off installed capital assets” such as solar panels, wind turbines and batteries that, once installed, deliver energy for years or decades.

In clean energy, as much as 90% of capital investment is made upfront, limiting the impact of price shocks to assets that need replacement or expansion, the ETC said. 

“Renewables create a set of capital assets, which once you’ve got them, are just not susceptible to somebody cutting off a pipeline or somebody sending the LNG elsewhere because they got a better offer,” Turner said.

The “key difference” between the current shock and past energy crises is the “availability of readily deployable alternatives” that are now cost-competitive and large enough to challenge fossil-fuel dominance, according to the ETC. Falling costs of wind, solar and batteries in recent years “make it possible for the response to the current crisis to be even stronger” in pivoting away from oil and gas, the group added.

And the rationale for making that shift is particularly compelling in Asian economies that are heavily dependent on energy flows through the Strait of Hormuz, the ETC said.

“Solar is so cheap, batteries are so cheap and EVs are getting so cheap that this is the first energy crisis where people say, ‘but there’s an alternative,’” Turner said.

©2026 Bloomberg L.P.

The total cost of wholesale power on the 13-state grid managed by PJM Interconnection LLC averaged $136.53 per megawatt-hour in the first three months of the year, according to a report from Monitoring Analytics, the grid’s independent market monitor. That compares to $77.78 per megawatt-hour during the same period in 2025.

It once again underscores how power bills are spiraling higher as a result of booming demand from artificial intelligence data centers, which require vast amounts of energy and are putting a significant burden on America’s aging power grids.

The report said data center load included in the last two PJM capacity auctions increased customers’ bills by $13.8 billion. “The price impacts will be even larger in the near term unless the issues associated with data center load are addressed in a timely manner.”

PJM said in a statement that the rising prices were an accurate indication of supply and demand conditions in the wholesale market and that prices were functioning correctly. The grid operator said it was taking further measures to support consumers, including by extending capacity market price caps.

PJM serves 67 million people across eastern states from New Jersey to Illinois, where a large concentration of data centers in the US are located. The company has found itself at the center of a storm of criticism from politicians, consumers and utilities for rising prices.

ComEd, a unit of Exelon Corp and the largest energy utility in Illinois, on Thursday blamed surging supply costs on the PJM grid for rising customer bills. 

The figures from Monitoring Analytics showed capacity costs, which ensure the grid has enough supply during periods of highest demand, jumping by almost 400% in the first three months of 2026 compared to last year. The cost of congestion on the system surged 300% to $2.02 billion.

“As the demand for power continues to increase, generation companies and grid operators must step up to increase capacity that will be needed to maintain grid reliability and keep energy supply costs affordable for customers across the PJM zone,” said Gil Quiniones, chief executive officer of ComEd. 

The company said the average residential customer bill would increase between $2 to $3 per month, as a result of a PJM capacity auction held last year.

Earlier this week, Laura Swett, who oversees the Federal Energy Regulatory Commission, said PJM wasn’t responding sufficiently to the problems the grid is facing, arguing it had potentially “grown too big to function.” She announced a conference on July 23 in Washington to discuss possible reforms.

Average demand in the first three months of 2026 increased by 3.1% in the first quarter compared to the same period last year, according to the data from Monitoring Analytics. Generation from natural gas units, the primary energy source in PJM, increased 4.2%, while generation from solar units increased 15%.

(Updates with PJM comment in the fifth paragraph.)

©2026 Bloomberg L.P.

Shortly after President Donald Trump announced sweeping tariffs in February last year, Beijing retaliated with levies on US energy — 15% on liquefied natural gas and 10% on crude oil. The result was an almost immediate halt in imports of both fuels.

In theory, the US and China should be natural energy partners. The US is the world’s largest LNG exporter and top oil producer, while China is the biggest buyer.

Now, the Middle East crisis may be shifting the calculus. The closure of the Strait of Hormuz has disrupted roughly a fifth of global oil and seaborne gas exports, driving prices higher. For LNG, China has been forced to sharply reduce imports following disruptions to Qatari supply, which accounted for about 30% of its deliveries last year. That could create an opening for US fuel to fill part of the gap.

A thaw would also benefit the US, where LNG developers are racing to secure long-term buyers. Chinese demand, with its scale and relative consistency, is viewed as critical to underpinning multi-decade export projects.

“China offers the world’s most predictable demand growth, providing the scale needed to anchor these US infrastructure investments,” Liu Jia, chief expert at the Economics & Technology Research Institute, a think tank at China National Petroleum Corp., told China Daily. 

LNG could be one area where China meaningfully increases purchases as a result of the presidential summit.

US export capacity is set to double by 2030, and Chinese companies such as CNPC already hold long-term contracts with existing projects. If Beijing drops its tariffs, buyers could opt to absorb those cargoes domestically instead of diverting them to Europe and other Asian buyers, which is the resale strategy they adopted after the levies were imposed.

Existing Contracts

China has already contracted around 28 million tons per year from current and future American LNG projects, with deliveries scheduled to ramp up by the end of the decade. But Chinese companies have stopped signing new deals with US facilities since the trade war kicked off last year.

Boosting American shipments could make sense. China’s record additions of renewable power require reliable backup to manage intermittency, a role that still depends in part on natural gas. Still, China’s willingness to lift tariffs will depend on what it gets in return, and it remains unclear what concessions the US is willing to offer.

That leaves the chances of a deal uncertain. No major US energy executives were slated to accompany Trump on the trip, and Chinese buyers have spent years diversifying supply after the lessons learned from Trump’s first presidency and his habit of using trade as a political lever. 

Energy featured prominently in Trump’s previous visit to China almost a decade ago, accounting for more than half of the $250 billion in announced agreements. Most, however, were non-binding and ultimately fell apart, including an $84 billion pledge by China’s largest coal company to invest in shale gas in West Virginia and a $43 billion venture tied to an Alaskan LNG export project.

On the Wire

Renewable energy manufacturer Jinko Solar Co.’s recent decision to sell control of its Florida facility extends a multi-billion dollar retreat from the US by China’s clean technology firms.

Nouveau Monde Graphite Inc. expects to formally green-light plans this week to build one of North America’s few graphite projects, as countries seek to weaken China’s dominance over the critical mineral.

Solar-plus-storage is gaining on gas in markets including China, according to BloombergNEF. Costs for energy storage systems have fallen so rapidly that they can now help solar plants provide power at parity with gas in some markets.

A Chinese oil supertanker appears to have exited the Strait of Hormuz as it sails toward an area where the US has enforced a blockade, ahead of talks between US President Donald Trump and counterpart Xi Jinping.

This Week’s Diary

(All times Beijing)

Thursday, May 14

• China to release April aggregate finance & money supply data by May 15
• US President Donald Trump visits Beijing for summit with China’s Xi Jinping
• China petroleum IT conference in Beijing, day 2

Friday, May 15

• US President Donald Trump visits Beijing for summit with China’s Xi Jinping
• China petroleum IT conference in Beijing, day 3
• China’s weekly iron ore port stockpiles
• SHFE’s weekly commodities inventory, ~15:30

©2026 Bloomberg L.P.

Rystad Energy says it is more than double last year's levels and would account for about 2.3% of total national electricity usage by the end of the decade.

New analysis from the independent energy research and business intelligence company confirms 28GW worth of new projects are due online by 2030. This brings the total to 32GW at the close of 2025, while installed capacity is projected to reach 40GW by later this year.

Statista recently reported that the US leads globally with 4,184 data centres, followed by the UK with 515, and China fourth with 369. As of November 2025, an estimated 12,000 data centres operated worldwide.

Resource organisation Global Electricity says these facilities currently consume 1-2% of global electricity — about 300-400 TWh annually — a number projected to double by 2030.

The World Economic Forum estimates the global data centre industry will be worth more than $584 billion by 2032 — more than twice the April 2025 estimate.

AI growth driving data centre energy consumption

The figures reflect the speed of buildout across the sector. Data centres are expected to be China’s fastest-growing source of power demand, with Rystad forecasting that consumption would rise at an annual rate of 19% between 2025 and 2030, driven by rapid growth in AI and high-performance computing (HPC).

These facilities are significantly more energy-intensive than data centres built for general-purpose computing; data suggests they will account for 39% of installed capacity this year, rising to an expected 48% by 2030.

Goldman Sachs Research analysts anticipated power demand from China’s data centres would increase 25% in 2025. They forecast that China's cloud service providers would raise capex by about 65% and top internet firms would invest more than $70 billion this year to support AI.

“One top cloud computing company and a major AI player plans to increase its data centre capacity 10 times by 2032,” said Timothy Zhao, Executive Director, Goldman Sachs Research.

Shift in China's power demand mix

The changing pattern of energy consumption is illustrated by figures from Rystad Energy: industrial demand is projected to slow from a compound annual growth rate (CAGR) of 5.4% between 2021 and 2025 to 3% between 2026 and 2030.

Data centres, by comparison, accounted for 1.2% of total power demand last year. They posted a 38% CAGR over the past five years and are forecast to maintain a 19% CAGR through 2030.

Rystad expects China’s overall power demand to grow at a CAGR of 3.9% through 2030 amid efficiency improvements and shifts in the demand mix, down from 6.5% during the 14th Five-Year Plan. Consumption exceeded 10,000 TWh last year.

“China’s data centre sector is no longer a peripheral part of the country’s power system; it is becoming a structural driver of demand in its own right,” commented Rystad’s Simeng Deng, Senior Analyst, Renewables & Power Research.

“What sets this buildout apart is the speed of the AI-driven shift, which is compressing timelines for both infrastructure deployment and energy procurement.”

Renewables and efficiency targets

China operates a reliable power system with sufficient baseload from coal and resilient grid networks to supply surging data centre demand. However, the scale of sector expansion also offers an opportunity to boost the nation’s renewable energy use.

Data centre development is a strategic priority in China’s 2026-2030 15th Five-Year Plan. It places a dual focus on efficiency and renewable integration and, under the country’s 2025 action plan for green data centres, new projects within China’s eight national computing hubs are required to source at least 80% of energy from renewable sources.

Operators are responding with diversified procurement strategies.

Power sourcing strategies and integration

The most widely used method is green electricity certificate procurement, which offers flexibility without requiring physical access to renewable infrastructure.

Green power trading, direct connection to off-site wind or solar farms, and onsite generation are also strategies, with many operators layering multiple approaches to meet renewable targets and reliability requirements.

Wind, solar, and battery energy storage integration is emerging as key for the sector’s next phase, alongside grid connection, while power usage effectiveness (PUE) is a key metric of data centre efficiency.

Targets introduced in 2024 called for at least 60% utilisation of data centre capacity nationwide and an average PUE below 1.5 by 2025 end. A PUE of 1.25 or lower must be reached by new large and mega data centres, with a stricter 1.2 threshold for national computing hub projects.

“Operators are not waiting for policy incentives or mandates to integrate renewables,” added Deng.

“They are increasingly combining different power sources such as wind, solar and battery storage because reliable electricity and lower-carbon supply have become business priorities.”

The deal, confirmed on Wednesday, covers blocks in the Central Asian country’s North Ustyurt region and further drives bp’s refocus on traditional energy. 

Significant resource potential

bp pulled out of exploration in the region in 2021 as it pursued a greener energy agenda under then-CEO Bernard Looney. He had pledged to cut oil and gas output by 40% by 2030, but bp announced a strategic pivot back to fossil fuels in February 2025.

The PSA was signed in Tashkent on the sidelines of the 28th International Oil and Gas Uzbekistan Exhibition and Conference – OGU 2026 by Jurabek Mirzamahmudov, Uzbekistan’s Minister of Energy, Abdugani Sanginov, Chairman of the Management Board of Uzbekneftegaz JSC, Rovshan Najaf, President of SOCAR, and Gio Cristofoli, bp’s regional president for Azerbaijan, Georgia and Türkiye. 

Cristofoli said bp was pleased to be entering its first project in the country.

“We believe Uzbekistan has significant resource potential and see this as an opportunity to support the ‌exploration and development of the country’s oil and gas resources, delivering long‑term benefits to the region,” he commented.

“Our entry into this PSA is also a demonstration of bp further growing its exploration portfolio in support of long-term organic growth.” 

Revived partnership

bp purchased a 40% interest in total from existing partners SOCAR and Uzbekneftegaz, which now hold 30% each.

SOCAR remains the operator of the blocks, including Boyterak, Terengquduq, Birqori, Kharoy, Qoraqalpoq, and Qulboy. bp first signed exploration deals with SOCAR and Uzbekneftegaz in 2018.

“The involvement of bp, which has maintained close and efficient partnership relations with SOCAR for many years, will create broad opportunities to ensure effective joint operations within the project,” commented Najaf.

“We believe the extensive experience of SOCAR and bp in the energy sector, along with the capabilities and efforts of Uzbekneftegaz, will make an important contribution to the successful implementation of the project, as well as to the development of the region’s energy potential.” 

The project is currently in its first phase, with SOCAR undertaking seismic activities. 

In 2025, under then-CEO Murray Auchincloss, bp initiated a “fundamental reset” to grow oil production to 2.3–2.5 mbpd by 2030.

Meg O’Neill subsequently took over as CEO last month.

The uptake for clean hydrogen is expected to be strongest in emerging demand sectors by 2060, led by steelmaking (18% of total clean hydrogen use), aviation (18%) and maritime (15%). The established demand sectors, fertiliser and methanol, are also decarbonising large parts of their supply chains and are each expected to account for around 13% of clean hydrogen use, DNV said.

The report also captures the several challenges faced by the hydrogen industry in recent years. DNV has revised down its 2050 hydrogen outlook by 35% since its previous hydrogen forecast in 2022, primarily due to what it said was a lack of policy support which has led to early ambition failing to convert to large-scale projects. The forecast also reflects continued progress in electrification technologies, which has reduced hydrogen’s role in some sectors previously expected to adopt it.

Energy security becoming a decisive driver

“The hydrogen industry is poised for growth, but it is a fragile stance. Hydrogen completes the most difficult aspects of the decarbonisation drive that so many nations have committed to. In driving fossil dependency out of critical sectors, hydrogen also contributes meaningfully to energy security. It is time for policymakers to study carefully the practical progress that has been made and to act decisively,” said Ditlev Engel, CEO, Energy Systems at DNV.

DNV forecasts that half of new renewable electrolysis-based capacity added by 2030 will be installed in Europe and China. China holds 60% of global electrolyser manufacturing capacity and it will couple this with its solar and wind capacity to become the dominant global renewable hydrogen producer.

Energy security will likely emerge as a decisive driver of hydrogen investment and policy, as governments in energy importing countries seek to reduce exposure to volatile fossil fuel markets and protect critical industries. The current geopolitical situation is accelerating final investment decisions, with 10 Mt/yr of renewable electrolysis-based capacity added by 2030 on top of 1.5 Mt/yr installed in 2025, DNV said. Additionally, instability in the Middle East will likely boost coal-based hydrogen used for ammonia and fertiliser production in the medium-term to maintain food security.  

DNV also warned in the report that growth depends on closing a safety confidence gap and documenting emissions reductions credibly. Stronger standardisation and whole-system approaches to safety, verification, and certification are needed to build trust and enable substantial investment capital.

“Going forward, it is about fine-tuning the regulations, implementing these in legislation, and verifying safety concepts, documenting technical performance, and certifying emission reductions. That is how renewable and low carbon hydrogen can make a difference for hard-to-electrify sectors,” said Magnus Killingland, Global Segment Lead Hydrogen.

Shares of the Houston-based firm closed at $36.54 each on Wednesday, versus an IPO price of $27. The listing priced above the marketed $25 to $26 range, which had been raised.

The trading gives Fervo a market value of $10.4 billion based on the outstanding shares listed in its filings. The IPO drew orders for about 15 times the number of shares available, people familiar with the matter have said.

With backing from Bill Gates’ investment firm Breakthrough Energy Ventures and shale oil producer Devon Energy Corp., Fervo is among a number of energy producers seeking to capitalize on the growing power demand for data centers. The company has about a $7.2 billion potential backlog of contracted revenue from power purchase agreements across its full portfolio, according to the filings.

Fervo uses horizontal drilling and multi-stage hydraulic fracturing to produce geothermal energy at its pilot project in Nevada, and it expects to deliver power at its Cape Station project in Beaver County, Utah by the end of 2026, marking its first commercial station. 

The project would be one of the world’s largest geothermal projects with 500 megawatts of power capacity, and the upsized IPO will help the company complete phase two of the station targeted for 2028, according to Fervo Chief Executive Officer Tim Latimer.

“There’s just a laser focus of investors right now on what are we going to do to solve the power demand imbalance we’re seeing in the country right now,” Latimer said in an interview. “There’s room for a lot of folks and I think that’s where you’re seeing investors place their bets.”

Fervo also has power agreements with Southern California Edison Co., Alphabet Inc.’s Google and Shell Plc. Alphabet was part of a $462 million investment round in December. 

The geothermal company is pledging that its future projects could supply more power to the US’ growing fleet of data centers.

That’s why geothermal is one of the only renewable energy sectors that has escaped the wrath of the Trump administration, a tailwind that has helped boost Fervo and its peers. Fervo is the first startup to commercialize an enhanced geothermal system, but questions remain around the technology’s long-term cost improvements, productivity of the wells and other barriers to success.

“Whether you’re a power sector lifer or you’re a tech investor that’s trying to wrap their heads around how do you actually power these data centers, we find we spend a lot of time kind of teaching people what our role in the sector is,” Latimer said.

Geothermal energy has been unpopular for many years because it is expensive and hard to access, but Fervo and other companies are working to lower the cost by applying oil and gas fracking techniques to make geothermal more accessible. Still, geothermal power represents less than one percent of global electricity generation.

Latimer was expected to have 48% of the voting power in the company after the offering, down from 54%, the filings show. Chief Technology Officer Jack Norbeck was set to have 14% of the votes, versus 16% before the IPO.

Fervo had a net loss of $70.5 million on revenue of $138,000 in the year ended Dec. 31, 2025, compared with a net loss of $41.1 million on revenue of $199,000 a year earlier, according to its filings.

The offering was led by JPMorgan Chase & Co., Bank of America Corp., Royal Bank of Canada and Barclays Plc. Fervo shares trade on the Nasdaq under the symbol FRVO.

(Updates with closing price in first three paragraphs, adds CEO comment in sixth paragraph.)

©2026 Bloomberg L.P.

Brent crude traded above $107 a barrel, paring most of its retreat earlier on Wednesday, after the International Energy Agency said global observed oil inventories declined at a rate of about 4 million barrels a day in March and April.

The Middle East conflict has thrown energy markets into disarray, with refineries in Asian nations such as Japan scrambling for alternatives to supplies from the Gulf. The Strait of Hormuz, which links the Gulf to open seas, has been effectively closed since the war began, and a US blockade has added another sticking point in efforts to end the conflict. 

“With global oil inventories already drawing at a record clip, further price volatility appears likely ahead of the peak summer demand period,” the Paris-based IEA said in its Oil Market Report. The market will remain “severely undersupplied” until October even if the conflict ends next month, the agency said.

Meanwhile, oil shipments from Iran’s main export terminal appear to have come to a standstill over the past several days, in the first sign of a prolonged halt since the start of the war.

US President Donald Trump downplayed the amount of attention the Iran conflict would get during his summit with Chinese counterpart Xi Jinping, saying “we have Iran very much under control.” But American gasoline prices have surged to the highest since 2022, a politically sensitive development ahead of crucial midterm elections in November.

In another sign of wider strain, Vietnam’s state oil company has urged the US to let a supertanker laden with crude pass through its naval blockade outside the Gulf, saying the shipment is vital to its economy. The vessel crossed Hormuz but U-turned on Monday near the cordon.

©2026 Bloomberg L.P.

The 30-day moving average for coal generation across Japan’s main islands was up 17% on Tuesday compared with the same period last year, and has been consistently higher since late-March, according to utility data compiled by Bloomberg. Natural gas was 10% lower, the figures show.

The crucial Strait of Hormuz has remained effectively closed since the Iran war started in late February, curbing energy shipments from a region that typically accounts for a fifth of global liquefied natural gas supply. An attack early in the conflict on the world’s biggest LNG production plant in Qatar has added to the squeeze and prompted buyers to scramble for alternative supply.

Japanese utilities have reduced dependence on LNG from the region over the past several years. Supply from Qatar and the United Arab Emirates only made up around 6% of the country’s total in 2025, compared with 25% a year earlier, according to ship-tracking data from analytics firm Kpler.

Still, that hasn’t spared Japan from the broader impact of rising fuel-import costs. Many power producers secure LNG on long-term contracts linked to oil prices, which have surged since the conflict began. Importers must at times secure spot cargoes, which have also become expensive. That has led to higher spot power prices in the country.

Total coal-power generation for Japan’s Kansai region — home to many factories and manufacturing bases — was at 56,624 megawatt-hours on Tuesday, the highest level since March 13, according to data on Bloomberg. A recent nuclear power plant outage in the area could also be contributing to the need to ramp up other power-generation sources.  

©2026 Bloomberg L.P.

“Areas connected to southern China such as Laos, Cambodia and Vietnam will be potential regions that the company will look into,” Chief Financial Officer Makoto Shibuya told Bloomberg News this week. The company will also consider India and other countries if suitable rare earths investment opportunities exist there, he added.

Rare earths are among the critical minerals used across high-tech manufacturing, including to build the powerful magnets used in electric vehicles, mobile phones and missile systems. China dominates the global supply chain for the materials, which has given it crucial leverage in trade and diplomatic negotiations, and countries including Japan are working to reduce their reliance on the Asian giant.

Sojitz, alongside Tokyo-backed energy agency Jogmec, has been in a joint venture with Australia-based Lynas Rare Earths Ltd. for more than a decade. They agreed in mid-March to start talks on mineral exploration and development of rare earth resources, including possible new mines “both in and outside Australia.” Sojitz has said its primary objective is to seek other sources besides Lynas’ major mining site at Mt. Weld in Western Australia. 

As for its energy portfolio, Sojitz has no appetite either for a stake in the Alaska LNG project or to offtake volumes from the planned American venture as it’s simply too costly, Shibuya said. The proposed Alaska plant is backed by US President Donald Trump and often dismissed as fanciful by many in the industry.

Energy accounts for only around 10% of Sojitz’s total investments over the past decade and management has already been trimming that part of the business. Liquefied natural gas is one of its few remaining energy-related investments, but the company says it will only pursue projects that have been carefully scrutinized.

Japan’s government last year agreed with Washington to invest $550 billion in the United States, including possibly in the Alaska LNG project, in exchange for reducing tariffs on Japanese products to 15%. 

©2026 Bloomberg L.P.

The manufacturer is sold out in major parts of its business until 2030 and beyond as the electrification trend is proving structural, Chief Financial Officer Maria Ferraro said Tuesday. The company also announced plans to execute its €6 billion ($7 billion) share buyback program faster amid strong orders for its gas turbines and grid products.

Siemens Energy sees “demand going well into the end of the decade and into the next decade,” the CFO said in an interview with Bloomberg Television. “Now it’s about converting those orders into revenue, revenue into margin, margin into cash.”

The German company is benefiting from demand for components needed by power-hungry data centers, especially in the US. Its gas turbines are increasingly used in regions where grid constraints delay new connections. In the first half of this fiscal year, the firm booked orders for 179 turbines — that’s nearly as many as the 194 it sold in fiscal 2025.

But Bernstein analysts led by Alasdair Leslie flagged a weaker business mix that weighed on margins at the gas business, adding that the company offered few updates compared to its early earnings release last month. Siemens Energy shares declined 1.7% as of 9:17 a.m. in Frankfurt. The stock is still up around 45% this year.

Its European peers that make energy and cooling equipment and automation technology for factories are seeing similar tailwinds. Schneider Electric SE, ABB Ltd. and Legrand SA all reported better-than-expected sales growth in recent weeks, driven by demand for products used in data centers. 

“The demand is very strong regarding AI and data center build-out,” Ferraro said. “That’s really structural in nature.”

Siemens Energy aims to keep its exposure to data center demand in the gas turbine segment at around a quarter and below 10% in the grid unit, Chief Executive Officer Christian Bruch said on a call with journalists.

To be sure, the boom is exhibiting some signs of strain. Big technology companies are committing vast sums to AI infrastructure, sapping free cash flow while returns take longer to come in.

Moreover, many of these investments are depending on each other. Tech firms are funding AI developers that in turn commit to buying their cloud and chip services. The model works fine as long as there’s growth. If that comes to a halt or even reverses, companies risk being hit by weaker orders and losses on their investments.

Siemens Energy has a “relatively broad base of diverse customers” in the data center space, Bruch said.

Earlier on Tuesday, Siemens Energy said it plans to purchase an additional as much as €1 billion of its own stock this fiscal year. That raises its buyback target for the period by 50%.

The move won’t increase the total volume of the company’s multi-year buyback program, a spokesperson said. That still stands at as much as €6 billion by the end of the 2028 fiscal year, though analysts have hope for more.

The acceleration “could result in a higher total buyback program further down the road,” RBC Capital analyst Colin Moody said in a note.

(Updates with shares in fifth paragraph.)

©2026 Bloomberg L.P.

The very large crude carrier Agios Fanourios I appears to be retracing its journey at a relatively slow speed of about 5 knots, after previously having crossed the Strait of Hormuz into the Gulf of Oman over the weekend, ship-tracking data compiled by Bloomberg show. The vessel is still signaling its intent to sail to the Nghi Son refinery in Vietnam. It loaded a cargo of crude from the Basra Oil Terminal last month.

Prior to its U-turn, the vessel was sailing at a speed of about 13 knots, according to the tracking data it was broadcasting as it cleared the coast of Oman, while showing Nghi Son as its intended destination. 

The tanker paused its journey late on Monday, for unknown reasons, near a point where the US has a naval blockade in place that applies to Iranian shipping, not barrels from Iraq.

The ship’s manager, Athens-based Eastern Mediterranean Maritime, didn’t immediately respond to a request for comment.

Iran’s semi official Tasnim News Agency reported the vessel’s transit through Hormuz earlier, saying it followed Tehran’s designated route through the waterway.

(Updates first and second paragraphs and replaces graphic to reflect the ship’s latest movements.)

©2026 Bloomberg L.P.

IFM, which owns stakes in airports from Sydney to London, has spent at least two years assessing plans to produce the cleaner-burning fuel from local agricultural feedstock. To proceed with the project, the company needs government policy to guarantee demand for the fuel from carriers such as Qantas Airways Ltd., Danny Elia, IFM’s global head of infrastructure asset management, said in an interview on Monday.

“Within the next six or so months, we are really going to need to see some finality around the policy framework,” Elia said. “We actually need a demand-side mandate.”

Sustainable aviation fuel, which airlines say can cut aircraft emissions by as much as 80%, is aviation’s best shot at decarbonization. But global output of SAF, as it’s known, is barely a trickle of required volumes, partly because laws aren’t in place to encourage producers. Total SAF production last year was less than 1% of global jet fuel consumption.

“You will not see a project of any significance get up at all without demand-side support,” Elia said.

The office of Australian Minister for Climate Change and Energy Chris Bowen had no immediate comment.

IFM’s ultimatum adds to calls from plane manufacturer Airbus SE for government policies to create a sustainable fuel supply chain in Australia.

The Iran War has highlighted Australia’s reliance on fuel imports just to get flights off the ground. Qantas and smaller rival Virgin Australia Holdings Ltd. have already cut services and raised fares due to soaring jet fuel prices.

According to Elia, producing home-grown sustainable fuel would go some way to addressing Australia’s fragile fuel security.

IFM’s fuel push is also designed to support its own investments. The firm owns stakes in gateway airports including Sydney, Melbourne and Brisbane, while its global portfolio includes London Stansted and Vienna Airport. 

IFM manages A$266 billion of assets globally and is owned by some of the nation’s biggest pension funds and UK fund Nest.

Laws requiring airlines to fill their tanks with a small percentage of sustainable fuel haven’t been universally popular. 

According to airline lobby group the International Air Transport Association, mandates like those in Europe have pushed SAF prices higher, discouraged voluntary demand and reduced output. The cleaner fuel is typically more than double the price of normal jet fuel, and mandates can make it four times more expensive, IATA said in February.

IFM is assessing its project with agribusiness GrainCorp Ltd. and fuel company Ampol, according to a paper published last year. The proposal involves building a new feedstock crushing facility, and a new fuel refinery in the Brisbane suburb of Lytton.

A representative for GrainCorp declined to comment on IFM’s position. An Ampol spokesman said a competitive lower-carbon, liquid-fuels manufacturing capability will only be possible with supportive demand and supply policies in place.

“We have stretched our timeline, but we just can’t stretch anymore,” Elia said in the interview. “You can’t hold preferred sites where you want to build forever.”

“It’s either invest or go home,” he said.

(Adds comment from IFM’s Elia in the final paragraph)

©2026 Bloomberg L.P.

Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said: “This quarter was shaped by exceptional external disruption, and our priorities were clear: protect our people and assets, maintain safe domestic supply, and protect shareholder value through disciplined execution. Our Q1 results demonstrate resilience, supported by rigorous cost management and a solid balance sheet.”

Regional uncertainty

Amid increased regional uncertainty and difficult market conditions, which have caused major disruption in the energy sector and to maritime movements through the Strait of Hormuz, ADNOC Gas achieved a net income of $1.1 billion, which is only 8% below the previous quarter.

“As we manage the disruption to maritime movements through the Strait of Hormuz, the long-term foundations of ADNOC Gas remain intact. Demand growth in the UAE – supported by continued industrial expansion – and increased flexibility associated with the UAE’s evolving production framework reinforce our confidence in ADNOC Gas’ strategy and dividend commitment,” Al Nuaimi said.

ADNOC Gas produced $572 million in free cash flow and closed the quarter with $4.2 billion in cash on its balance sheet. The company’s strong financial position enables ongoing investment throughout market cycles supporting its commitment to meet the 2026 dividend outlook and its policy of annual dividend growth at 5% until 2030, it said – adding that the board has approved a quarterly dividend of $941 million, set for payment in June 2026.

“As we manage the disruption to maritime movements through the Strait of Hormuz, the long-term foundations of ADNOC Gas remain intact. Demand growth in the UAE – supported by continued industrial expansion – and increased flexibility associated with the UAE’s evolving production framework reinforce our confidence in ADNOC Gas’ strategy and dividend commitment."
- Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas

ADNOC Gas’ balance‑sheet strength and disciplined capital allocation continue to underpin the resilience of the business, the company said.  Its long‑term growth ambitions remain intact, with its targeted EBITDA growth of over 40% between 2023 and 2029 unchanged.

ADNOC Gas said it remains optimistic about UAE economic growth, which is boosting domestic demand – highlighted by the TA’ZIZ $5 billion supply contract and ADNOC’s $55 billion investment in local manufacturing under the Make it in the Emirates initiative. Growth in UAE domestic and industrial customers increases demand for ADNOC Gas, the country's largest energy supplier for power generation and the industrial sector.

Habshan complex incidents

ADNOC Gas experienced two security-related incidents at the Habshan site on 3 and 8 April, prompting activation of standard response and continuity protocols, the company said. The operations teams responded effectively, prioritising safety and minimising interruptions to customers, it said. Within a short period, 60% of the complex’s processing capacity was restored, and the ADNOC Gas is currently working toward achieving 80% restoration by the end of 2026, with full capacity restored in 2027.

A detailed technical assessment of the impact from these incidents is progressing amid a dynamic supply chain environment and is nearing completion, ADNOC Gas said. Although some processing trains at Habshan remain offline, overall supply across the ADNOC Gas network has been substantially restored, allowing the company to continue meeting domestic customer demand through its broader infrastructure. Additionally, Phase 1 of the Rich Gas Development project is expected to further ease bottlenecks and enable ADNOC Gas to take advantage of increased upstream associated gas output following the recent lifting of production constraints, it said.

Strait of Hormuz update

While commodity prices rose significantly, disruption to maritime movements through the Strait of Hormuz continues to impact liftings of ADNOC Gas products, the company said.

To date through proactive tank, inventory and supply-chain management, the company is actively collaborating with customers and partners on a transaction-by-transaction basis to fulfill commitments wherever possible, it said.

The ongoing closure of the Strait of Hormuz is expected to affect ADNOC Gas’ Q2 net income, with projections indicating a range between $400 million and $600 million assuming maritime operations return to normal prior to the end of the quarter.

On the assumption that the Strait is open for the second half of 2026, higher LNG and LPG prices, in line with the current Brent forward curve, are expected to help offset deferred volumes. ADNOC Gas anticipates full-year 2026 net income to range from $3.5 billion to $4.0 billion, with this outlook reflecting the expected impact of the second quarter, it said.

Positioned as Canada’s leading hydrogen event, the convention reflected how the industry conversation has moved from early promise to tangible execution, with industry, government, investors, and innovators gathering to accelerate the next phase of hydrogen growth in Canada and beyond.

The event featured a dynamic exhibition, two flagship conference programmes, special features, and high-value networking opportunities that reinforced Edmonton’s role as a leading hydrogen hub.

Policy and partnerships take centre stage

This year’s strategic conference brought together senior leaders from across government and industry to address the policy, infrastructure, and investment priorities shaping the hydrogen economy.

Ministerial participation was a major highlight, with appearances from Hon. Eleanor Olszewski, Minister responsible for Prairies Economic Development Canada; Hon. Nathan Neudorf, Alberta Minister of Affordability and Utilities; Hon. Brian Jean, Alberta Minister of Energy and Minerals; and Hon. Grant Hunter, Alberta Minister of Environment and Protected Areas.

The event also provided a platform for meaningful industry collaboration, including the signing of an MOU between the Edmonton Region Hydrogen Hub, Alberta’s Industrial Heartland Association, Edmonton Global, and Kawasaki Heavy Industries, Ltd., to explore a liquefied hydrogen supply chain. The announcement underscored the convention’s role in bringing partners together across the hydrogen value chain and advancing practical opportunities for hydrogen adoption, while also highlighting growing international interest in the Edmonton region’s collaborative ecosystem, industrial base and clean energy expertise.

Expanded conference programmes strengthen technical exchange 

The convention delivered strong momentum across both conference streams. The event featured two flagship conference programmes, 80+ sessions and 100+ speakers, while the technical conference brought together 80+ expert speakers across 70+ technical and poster sessions.

A major enhancement for 2026 was the technical conference’s move onto the exhibition floor, creating a more immersive delegate experience and strengthening the connection between thought leadership, technology showcase and commercial opportunity.

On the exhibition side, the event delivered a vibrant, highly engaged show floor, with 100+ exhibitors and dedicated industry pavilions, creating a strong platform for business development, networking, and solution discovery.

The exhibition remained a central hub of activity throughout the convention, bringing together government representatives, Indigenous leaders, technology providers, project developers and decision-makers from across the hydrogen value chain. The combination of a busy exhibition floor, poster presentations and integrated conference programming helped create strong momentum across the venue.

Special features deepen connections

Special features and networking events added further depth to the attendee experience and reflected the convention’s broad industry reach.

Alongside the strategic and technical conferences, the event featured the CPKC Site Tour, the Korea-Alberta-Canada Clean Energy Forum, poster presentations, and the H2 Mobility Zone Café, offering delegates multiple ways to connect, exchange ideas, and engage with hydrogen applications and market opportunities in practice.

Networking was a defining strength of the week, led by the Opening Night Reception, sponsored by Explore Edmonton, the Canadian Hydrogen Association and Edmonton International Airport, which brought delegates, exhibitors, and speakers together at the close of the first day.

The Joule Women in Hydrogen Networking Reception stood out as a valuable gathering point between the close of the Strategic Conference and the Awards Gala, adding a meaningful layer of industry connection and community-building to the event.

The week concluded with the 5th Annual Canadian Hydrogen Convention Awards Gala, a signature evening recognising the leaders, innovators, and trailblazers advancing hydrogen in Canada and internationally. The gala combined a networking reception, dinner and live awards presentation, creating a strong finale for the convention and an opportunity to celebrate the achievements.

The event's success was strengthened by the support of its co-host organisations: Edmonton Global, Canada’s Hydrogen Hub / Edmonton Region Hydrogen Hub, Air Products as Industry Co-Host, and the Canadian Hydrogen Association as Association Co-Host, with their leadership and collaboration anchoring the event in both regional strength and national industry relevance.

According to market intelligence company IDTechEx, lithium-ion (Li-ion) batteries remain the core technology enabling the electrification of the automotive sector.

Reflecting this, EV Li-ion demand is forecast to exceed 4,500 GWh in 2036 in a market set to grow from $170 billion this year to $320 billion by 2036, representing a CAGR of 6.5%.

The World Economic Forum (WEF) previously predicted that up to 350 million EVs could be on roads worldwide by 2030 under the net zero by 2050 scenario. By the close of 2021, 16.5 million were operating, and the International Energy Agency (IEA) suggested EVs would represent more than 60% of vehicles sold by 2030.

The IEA also cited the need for a “surge” in charger installations and last year warned of potential mineral shortages ahead. Meanwhile, other battery technologies are gaining traction. 

Matching supply with demand

The market for Li-ion batteries is driven predominantly by growth in battery electric (BEV) cars, especially in China, and there is increasing adoption in Europe, says IDTechEx report ‘Li-ion Batteries and Battery Management Systems for Electric Vehicles 2026-2036’.

The US is experiencing a sales slowdown due to policy changes, but electrification efforts are expected to pick up again in the next decade.

Lower cost of ownership is also expected to drive commercial vehicle demand, alongside the dominant EV car segment.

The IEA says there is no “immediate, absolute physical depletion of minerals”, but supply chain concentration, geopolitical constraints, and rapid demand growth for lithium, cobalt, nickel, and graphite could create a “high risk” of shortages. And this, particularly shortages of battery-grade refined materials, could potentially increase costs and slow the transition to EVs.

The Union of Concerned Scientists previously said that to meet projected EV adoption by 2035, the industry may need hundreds of new mines, each with long development times.

Battery industry evolution

Rising costs have driven investments in battery recycling by major vehicle manufacturers such as Volkswagen and Renault, as well as innovations in battery chemistry, such as lithium iron phosphate (LFP) and sodium-ion, that reduce reliance on critical minerals.

IDTechEx highlighted cell chemistry trends, notably the growing share for LFP and early deployments of LMFP (lithium manganese iron phosphate) and Li-Mn-rich options.

“There are a large range of cell chemistries that fall under the Li-ion umbrella, offering different electrochemical profiles,” explained technology analyst Daniel Parr. “Chemistry and form factor choices are highly dependent on application area.”

For example, IDTechEx reports the electric car segment shifting towards LFP cathodes, enabling lower costs and higher cycle life, although also exhibiting limited energy density compared to ternary oxide cells such as nickel manganese cobalt (NMC) and nickel cobalt aluminium oxide (NCA), making NMC/NCA better positioned for premium BEVs.

Outside of the passenger vehicle market, IDTechEx said NMC technology offers higher power and gravimetric energy density, which is important for heavy-duty applications.

“However, cycle life is especially important for commercial vehicles,” said Parr. “In cars, a cycle life of ~1,000 cycles is generally acceptable; however, for commercial vehicles, 3,000-5,000 cycles are required.”

Some estimates suggest deploying as many as 450 million chargers by 2040 to keep pace with the growth in EVs.

How policies impact battery progress

Regulations and incentives, such as tax credits and government subsidies, have and can greatly influence EV sales and, by extension, the battery market.

This has been the case in China, where the EV sector has grown rapidly, while European EV adoption has been largely encouraged by increasing carbon-emissions regulations.

Sales have slowed in the US due to the expiry of EV tax credits and tailpipe emissions mandates, although the medium- and long-term outlook is growth.

Battery supply is increasingly localising in the US as tariffs on Chinese battery cells and continued support of American production through the 45X credit take effect.

Crude cargoes dropped 20% year-on-year to 38.47 million tons, the lowest since July 2022, while gas fell 13% to 8.42 million tons, according to Chinese customs data on Saturday. Oil imports were also lower than the previous month, which included shipments that had already begun their journey from the Gulf before the US and Israeli air strikes against Iran on Feb. 28.  

The Middle East typically accounts for about half of China’s crude imports and nearly one-third of its liquefied natural gas. The initial batch of monthly customs figures don’t differentiate between seaborne LNG and gas delivered overland via pipelines, but ship-tracking data from analytics firm Kpler indicates that LNG purchases fell to an eight-year low in April.

Fears that oil could run short in the world’s biggest energy buyer have pushed the government to prioritize refined items such as diesel and gasoline for domestic use. As a result, oil product exports in April plunged 38% from last year to 3.12 million tons, the lowest in nearly a decade.

The disruption to gas supply has lifted demand for alternatives such as coal. However, Chinese purchases fell 13% to 33.08 million tons, the lowest since June last year, as the country leaned on its vast domestic output instead of seeking higher-priced imports.

The Persian Gulf is also a major supplier of aluminum. But China’s status as the world’s leading producer has allowed it to fill some of that gap, with exports rising 15% to 598,000 tons, the highest since November 2024. Steel exports, however, fell about 9% to 9.5 million tons, in part because of the recent emergence of the Middle East as an important buyer for Chinese mills. 

China’s copper metal imports, meanwhile, edged higher to 452,000 tons, benefiting from lower international prices in March as the war fanned concerns over global economic growth. But copper concentrate imports fell around one-fifth from last year’s record to 2.35 million tons. 

Among other metals, iron ore imports were slightly higher at nearly 104 million tons. 

Soybean imports rose nearly 40% to 8.48 million tons as US cargoes combined with seasonal flows from Brazil. Next week’s presidential summit in Beijing could deliver more pledges to buy American commodities, as well as an update on Chinese sales of rare earths to the US. In April, China’s total exports of the strategic minerals rose 11% to 5,309 tons.

On the Wire

A major Chinese metals refiner is seeing a large volume of demand for platinum to deliver against a new local futures contract, a sign of how the product is luring more of the metal into the country. 

China’s clean technology titans, hungry for export markets to boost flagging profits, aren’t letting a crisis go to waste.

The global steel industry’s green transition is threatened by continued spending on coal-based production and underinvestment in cleaner methods, according to a clean energy research group. 

President Donald Trump is expected to press President Xi Jinping over China’s approach to Iran and hammer out details on a new board of trade when they meet this week in Beijing, senior US officials said Sunday.

China’s export growth rebounded more than expected despite disruptions to shipping caused by the war in Iran, as trade volumes swell due to an investment boom in artificial intelligence.

This Week’s Diary

(All times Beijing)

Monday, May 11

• China’s inflation data for April, 09:30
• China to release April aggregate finance & money supply data by May 15
• China Rare Earth earnings webcast, 15:00
• Mysteel’s China-Indonesia Coal Conference in Jakarta, day 1

Tuesday, May 12

• China’s monthly CASDE crop supply-demand report
• Mysteel’s China-Indonesia Coal Conference in Jakarta, day 2

Wednesday, May 13

• CCTD’s weekly online briefing on coal markets, 15:00
• Mysteel’s China-Indonesia Coal Conference in Jakarta, day 3

Thursday, May 14

• US President Donald Trump visits Beijing for summit with China’s Xi Jinping

Friday, May 15

• US President Donald Trump visits Beijing for summit with China’s Xi Jinping
• China’s weekly iron ore port stockpiles
• SHFE’s weekly commodities inventory, ~15:30

(Updates with additional published and diary items. An earlier version corrected the spelling of Beijing in the ninth paragraph)

©2026 Bloomberg L.P.

According to its Gas Market Report for Q2 2026, the loss of nearly 20% of the world’s LNG supply from the closure of the Strait of Hormuz is “distorting short-term gas market fundamentals,” while damage from attacks on Middle East LNG liquefaction facilities is altering the medium-term outlook.

Tighter market conditions for longer

Qatar’s Ras Laffan facility has been offline since early March 2026, resulting in a weekly loss of more than 2 bcm of gas supply. The IEA said Iranian attacks have taken out 17% of Qatar’s LNG export capacity.

Global LNG production fell by 8% (4 bcm) year-on-year in March. Loadings from Qatar and the UAE fell by 9.5 bcm compared to last year, although the decline was partly offset by higher LNG output from new projects in North America and Africa.

The IEA also warned that the conflict could delay much of the new capacity that was expected to come online later this decade.

IEA analyst Gergely Molnár told the Budapest LNG Summit last week that the war was reshaping the medium-term gas outlook. It had been anticipated that a major influx of new LNG capacity from the US, Canada, and Qatar would loosen market tightness, but geopolitical tensions mean tighter market conditions could persist longer than previously expected, through to 2030.

The IEA quarterly report suggested global demand growth is expected to rise by approximately 2% in 2026. However, this is heavily affected by demand-side adjustments and high prices.

US boosts supply to Asia

US producers helped to offset reduced supplies ‌from the Middle East at a time when the IEA projected North American demand remaining largely flat.

Asia absorbed nearly a quarter of all US LNG exports in April — a sharp increase since the Iran conflict started on 28 February — according to preliminary ship-tracking data from financial firm LSEG. It showed shipments to Asia rose more than 175%, from about 970,000 metric tonnes in February to 1.99 MT in March and 2.71 MT in April.

The IEA said demand in the Asia-Pacific region was expected to increase by 4%, driven by emerging markets, but constrained by high prices.

The Gas Market Report said continued renewable energy expansion in Europe was expected to reduce gas demand by 2%, despite the volatility.

Pressure will remain

Molnár said EU gas storage levels are about 30% below the five-year average, and refilling them to the 90% full target ahead of the high-usage winter season would require an additional 10 bcm of gas.

The IEA said gas producers were making efforts to increase supply, but the demand side is set to play a key role in balancing the market, particularly in Asia, where fuel switching is picking up alongside energy-saving measures.

“The current energy crisis highlights the need to further strengthen the architecture of global gas supply security,” added the report.

The countries are expected to offer demining, escorting and air policing capabilities as part of a defensive naval mission led by the UK and France, designed to reassure commercial ships attempting to pass through the waterway.

“We are turning diplomatic agreement into practical military plans to restore confidence for shipping through the Strait of Hormuz,” said UK Defence Secretary John Healey, who will co-chair Monday’s gathering alongside his French counterpart Catherine Vautrin.

Iran’s deputy foreign minister responded that any such plans would be considered an escalation of the US-Israeli war on Iran and would be met with a military response.

“Any deployment and stationing of extra-regional destroyers around the Strait of Hormuz, under the pretext of ‘protecting shipping’ is nothing but an escalation of the crisis, the militarization of a vital waterway, and an attempt to cover up the true root of insecurity in the region,” Iran’s Deputy Foreign Minister Kazem Gharibabadi said on X. 

Iran’s response would be “decisive and immediate,” he said. 

Iran has effectively shut the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas typically flows, after war erupted with US-Israel strikes on Feb. 28. The US has since imposed a naval blockade. The disruption has upended oil and gas markets, sending fuel prices soaring and putting pressure on consumers worldwide. 

The UK will deploy one of its warships — the HMS Dragon, capable of destroying guided missiles — as part of the mission, which will only begin once a sustained ceasefire or peace deal is agreed to.  

US President Donald Trump has previously criticized Britain and other NATO nations for their reluctance to commit naval forces to help open the Strait of Hormuz. He also called out the UK for offering to send aircraft carriers much later than he said the US needed them, mocking the ships as “toys.”

(Updates with Iranian response beginning in fourth paragraph.)

©2026 Bloomberg L.P.

The Al Kharaitiyat, which loaded at the Ras Laffan export plant earlier this month, exited the strait and was in the Gulf of Oman on Sunday, ship-tracking data compiled by Bloomberg shows. The vessel, which lists Pakistan as its next destination, appears to have navigated the Tehran-approved northern route that hugs the Iranian coast through the strait, the data showed.

The shipment is part of Pakistan’s negotiations with Iran for additional Qatari LNG cargoes through the Strait of Hormuz to help meet urgent demand, according to people with knowledge of the matter, who asked not to be identified because the discussions are private. A Pakistani tanker delivered a diesel shipment from Kuwait in recent days, after turning back multiple times previously.   

Pakistan, which is mediating between the US and Iran in the conflict, is struggling with a gas shortfall and battling widespread blackouts as shipments from its primary provider Qatar dried up with the effective closure of the Strait of Hormuz. Iran has tightened its grip on the vital waterway since the war began at the end of February and vessels have continued to face security threats around the region.

The Pakistan government’s petroleum division spokesperson Zafar Abbas didn’t respond to a request for comment about the LNG shipments. Neither did Iran’s foreign ministry.

Three tankers laden with Qatari LNG that are currently in the Persian Gulf are signaling Pakistan as their destination. While these and the Al Kharaitiyat’s journey might offer tentative signs that more LNG flows could resume, it’s a far cry from prewar levels of roughly three shipments a day out of the Persian Gulf. At least two LNG tankers that loaded from Abu Dhabi National Oil Co.’s export plant have traversed the strait since the conflict began, Bloomberg reported earlier this week.

Qatar had made several previous attempts to send shipments through Hormuz, but the tankers had eventually turned around. The country, which produced almost a fifth of global LNG supply last year, hasn’t been able to move LNG out of the Persian Gulf in the war that’s now in its third month.

Qatar’s Nakilat owns the Al Kharaitiyat, according to ship database Equasis. Nakilat and QatarEnergy did not respond to a request for comment.

(Updates with context from the fourth paragraph.)

©2026 Bloomberg L.P.