Everlution Newsletter

For Tuesday 15 September 2020 provided by Ecoprofit.com.au (#letsfindsolutions)

News for green investors and organisations, stock watch & grant opportunities

BP Forecasts Falling Fossil-Fuel Demand

Oil and gas giant BP has cast doubt on the future of the global fossil fuel industry and forecast global oil demand to decline from 2020 onwards.

In its?2020?Energy Outlook?report, the company warns that changing government policy and shifting consumer preferences will erode oil and gas? share of overall energy generation.

The findings come as the 111-year-old business sets out to ?reimagine? the oil and gas industry and become a net-zero emitter by 2050. ?The world is on an unsustainable path and its carbon budget is running out,? BP chief executive Bernard Looney said. Demand for oil and gas will be increasingly challenged.?

Meanwhile, a new report by Wood Mackenzie states that nearly 800 kilo tonnes of additional lithium carbonate equivalent (LCE) would need to come online in the next five years to meet the needs of the battery sector. The market analyst?s prediction is based on its own Accelerated Energy Transition (AET) scenario, which sees global warming limited to 2.5 degrees Celsius and which presents the idea of the electric vehicle market requiring over 1 million tonnes LCE in 2025.

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Similarly, the report states that the cobalt market would have to double by 2025.

?To put this into perspective, to meet the incremental demand from EVs through 2030, an additional eight mines the size of Glencore?s Katanga would be required,? the document reads (its Congo mine). ?Wood Mackenzie?s AET brings electric vehicle (EV) uptake forward by ten years and sees EVs make up around 40% of passenger car sales by 2030. This considerably accelerates the demand for batteries and the raw materials that go into them.?

Even though at present the battery sector makes up less than 5% of total nickel demand, under the AET, the prediction is that it would rise rapidly to 20% by 2025 and 30% by 2030. Thus, an additional 1.3 million tonnes of nickel suitable for the battery sector would be required by 2030.

When it comes to graphite, the report forecasts that the battery sector would make up more than 35% of demand by 2030, with demand growing by 1.6 million tonnes by that date.

?Given that spot prices for most battery metals are currently in the doldrums, and miners typically require higher prices to incentivize new supply, relying on the natural cycle of mine development would appear to be a losing strategy if the world requires a large number of EVs in a short space of time. An AET will need a helping hand to get things moving,? Gavin Montgomery, Wood Mackenzie research director said.

In Montgomery?s view, finding alternative sources of metals, including using secondary supply through recycling, is another option available to the industry. However, he noted that current EV sales are too low to generate a sufficiently large scrap pool to create any meaningful new source of supply by 2030.

Grants/Subsidies/Funding ? Local Sports Grant Program NSW

The Local Sport Grant Program (LSGP) aims to increase regular and on-going participation opportunities in sport in NSW.

The overall objectives of the Program are to:

  • Increase regular and on-going participation in sport.
  • Increase participation and access for women, girls or population groups with low rates of participation.
  • Address barriers to participation in sport or structured physical activity.
  • Assist sport clubs to provide quality service to their members and meet community needs.

Your project must address at least one of these objectives and demonstrate how it aligns to the?Office of Sport Strategic Plan.

Funding available to this program is $4,650,000. $50,000 will be allocated to all 93 electorates throughout NSW. The maximum amounts available are:

  • Sport Development: $2,000
  • Sport Events: $5,000
  • Sport Access: $5,000
  • Sport Facility $15,000.

Applications close:?Wednesday 5pm 7 October 2020.

For more information go to https://www.sport.nsw.gov.au/clubs/grants/localsport

Eco-tip for the day

Make it a point to buy products made from recycled materials. Do research online to find companies that specialize in eco-friendly items, including Alchemy Goods, Ecoist, Eco-Artware.com, Greenandmore.com, and TerraCycle, Inc. Make sure your money is going to companies that believe in and support the development of a green economy.

Share watch ? Focus Minerals (ASX:FML)

West Australian gold explorer Focus Minerals has announced a Mineral Resource update for the Brilliant South gold deposit to support the pre-feasibility study (PFS) into a resumption of mining at the Company?s Coolgardie Gold Project (Coolgardie).

Brilliant South is a core part of Coolgardie, which covers 175km2 of highly prospective tenements on the outskirts of the Coolgardie township in the Goldfields. Focus is in the process of finalising the 2020 Coolgardie PFS update, which will include the newly updated Brilliant South Mineral Resource. The PFS update is expected to be delivered shortly.

The Brilliant South deposit was a major open pit gold producer, mined in stages from the 1970s to the early 2000s, with total production consisting of approximately 88,000oz at an average grade of 2.45 g/t.

Focus announced a resource update for Brilliant South in 2017. The resource, combining open pit and underground, was 5.89Mt at 2.5 g/t for 475,000oz. Since then, Focus has completed 49 holes comprising 36 reverse circulation (RC), four diamond and nine RC/DD holes for a total of 13,436m of drilling. Several significant intersections from this drilling campaign were announced to the ASX on 27 July 2017 and included (calculated at 0.5g/t cut off and up to 3m internal dilution.

The one-year share price history is shown the graph above.

Financial indicators

The VIX fear gauge down by 5.96 points since last Tuesday EST to 25.59.

The Dow Jones Industrial Average down since last Tuesday EST by 137.91 points or 0.49% to 27,995.60, the STOXX 600 up 0.11 of a point or 0.01% to 370.96 and the Shanghai Composite index down 20.77 points or 0.63% to 3,295.65.

Gold on 1,961.90. US 10-year Treasury Bonds on 0.682 and oil on 38.39. Cryptos Bitcoin up 658 points since last Tuesday or 6.44% to 10,871.

ASX 200 down 113.00 points or 1.88% since last Tuesday to 5,894.80. The Aussie dollar on 72.99US cents.

Eco Market Spot Prices

LGC $48.50

STC $38.35

ESC $28.20

VEEC $34.40

ACCU $15.90

Sources:?RenewEconomy, demandmanager,? Reuters, SMH, Market Watch, Forbes