New base energy news 05 december 2020 issue no-1391 senior editor eng- khaled al awadi

Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 1
NewBase Energy News 05 December 2020 - Issue No. 1391 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
OPEC+ Clinches Compromise on Gradual Easing of Output Cuts
Bloomberg - Salma El Wardany +,Dina Khrennikova
OPEC+ agreed to ease oil-output cuts next year after almost a week of fraught negotiations that
exposed a new rift at the heart of the cartel. The group will add 500,000 barrels a day of production
to the market in January, and ministers will then hold monthly consultations to decide on the next
steps.
That’s a much shorter time frame than OPEC+ usually operates under, and before this week the
expectation had been that the group would hold off putting more oil onto the fragile market for
another three months.
But the compromise deal avoided a breakdown of OPEC+ unity, which had become a growing risk
after days of tense talks exposed a new split between core cartel members, the United Arab
Emirates and Saudi Arabia.
The meeting postponed by two days and then delayed again on Thursday. And in another sign of
tension, Saudi Energy Minister Abdulaziz bin Salman didn’t chair the meeting as usual, leaving his
Russian counterpart to do it alone.
www.linkedin.com/in/khaled-al-awadi-38b995b

“It’s very excruciating, it’s very tiring, it’s sometimes very frustrating,” he said of the talks. Still, the
oil market is seeing the “light at the end of the tunnel.” Oil rose on news of the deal, with Brent rising
toward $50 a barrel on Friday after closing at a nine-month high of $48.71 in the previous session.
The revised accord is likely to keep the oil market in deficit throughout the first quarter, according to
Bloomberg calculations using OPEC data, meaning bloated inventories will continue to drain. If the
group had gone ahead with the full supply hike that was set out in the original deal struck earlier
this year, the cartel’s economists had calculated that the market would have flipped into surplus,
potentially undermining the recent rally.
“The deal achieves the main goal of Saudi Arabia, namely to prevent crude stocks building during
the first quarter,” said Amrita Sen, co-founder of consultant Energy Aspects Ltd.
The group’s impact goes beyond crude prices. The fortunes of the entire energy industry, from
supermajors like ExxonMobil Corp. to Texas shale producers, and resource-dependent countries
like Brazil and Kazakhstan, are influenced by its moves.
The First Quarter
By delaying, or tapering, the return of supply, OPEC+ hopes to ensure global oil stockpiles fall in
the first quarter of next year
“It’s a wise decision,” Iran’s Oil Minister told state run news service Shana after the talks concluded.
“These monthly meetings can help preserve stability in the market” and the additional supplies
coming in January won’t have a big impact, he said. At those monthly meetings, ministers will adjust
production up or down, and any alteration won’t be more than 500,000 barrels a day. The period

during which compensation cuts can be made to offset past over-production was extended to the
end of March.
The Organization of Petroleum Exporting Countries and its allies rescued the oil market earlier this
year from an unprecedented slump, slashing production by 9.7 million barrels a day as the pandemic
crushed demand. The cartel returned 2 million barrels a day of that output to the market in August
without a hiccup, and was due to add a similar volume next month.
Several members of the group were worried that the market was still too fragile to absorb those
extra barrels as a new wave of virus infections hit the global economy. Other nations were impatient
to open the taps after months of production restraint that has put their finances under severe
pressure.
The intensity of the fight earlier this week between Saudi Arabia and the UAE took OPEC-watchers
by surprise, as the pair have long been staunch allies. But Abu Dhabi has been pursuing a more
independent oil policy, is investing heavily in production and wants to pump more. Last month it even
signaled it was considering its options outside the group. “Saudi-UAE relations continue to bear
watching as the UAE is likely to be more independent and influential in group affairs going forward,”
said Citigroup Inc analyst Ed Morse.

Oman: Biogas-to-power technology set to make Oman debut
By Staff Writer, Oman Daily Observer
Oman LNG has signed a key agreement with Ejaad and Mazoon Dairy to support the development
of the Sultanate’s first-of-its-kind Biogas to Power generator at Mazoon Dairy’s site in Al Sunainah
in Buraimi Governorate.
This collaboration demonstrates the value of cross-industrial collaboration under Ejaad’s umbrella
between the food sector (represented by Mazoon Dairy) and the energy sector (represented by
Oman LNG) in the technology demonstration, localisation and innovation aspects.
In addition, the agreement will facilitate the deployment of biogas to power technology to
demonstrate at large scale the feasibility of biogas to power for the first time in the Sultanate.
Mazoon Dairy began working on the country’s first biogas plant last year.
The generator, supplied by Oman LNG, will assist in producing energy by utilising the biogas
currently produced from organic waste at Mazoon Dairy and convert it to a sustainable green energy
source yielding less environmental emissions.
Biogas is a renewable and clean, source of energy that promotes the sustainability of ecological
systems and replenish their resources, contribute to social welfare, and alleviate pressures on fiscal
management – which are key pillars of the Oman 2040 Vision.
Oman LNG will also appoint the right expertise for inspection of the delivered biogas generator at
the port of delivery prior to the journey to Mazoon. Mazoon Dairy will install commission and operate
the biogas to power generator to produce green energy for utilisation within its operations.

“As our country is blessed with an abundance of renewable energy, we continue to dedicate our
efforts to deliver sustainable development to Oman and its people through clean energy sources for
generations to come.
This partnership, with Mazoon Diary and Ejaad, also ties in well with our In-Country Value (ICV)
efforts where we aim to transfer technology and expertise to boost the added value to our local
economy,” commented Harib al Kitani, CEO of Oman LNG.
Ejaad, through this agreement, will facilitate and advice biogas research and development, a
forward-looking step that supports future research with both local and international academia and
industrial partners. This will enable Ejaad to provide knowledge management and capture learnings
from this collaboration to benefit the wide Ejaad members.
Mohammed al Naseeb, Oman LNG’s Chief Operating Officer, commented: “We are delighted to
partner with Mazoon Dairy and Ejaad, where Oman LNG will bring Biogas to Power technology for
the first time in Oman. Such support does not only showcase our robust in-country value efforts, but
also reflects our on-going strive to capitalise on sustainable green energy solutions.”
Ahmed al Ghafri, Chief Support Officer of Mazoon Dairy, commented: “We are proud of our world-
class facilities and the eco-friendly solutions strictly followed across functions, and delighted today
to partner with Oman LNG and Ejaad to take the existing biogas plant to the next level of power
efficiency. We are eager to display the utmost professionalism to enable safe installations and
operation of the generator for a sustainable source of energy at Mazoon Dairy.”

Egypt: Eni reaches agreement for the restart of the LNG plant
Source: Eni
Eni has signed a series of agreements with the Arab Republic of Egypt (ARE), the Egyptian General
Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS) and the
Spanish company Naturgy, which pave the way for the restart of the Damietta liquefaction
plant in Egypt by the first quarter of 2021, the amicable settlement of the pending disputes of
Union Fenosa Gas and SEGAS with EGAS and ARE and the subsequent corporate restructuring
of Union Fenosa Gas itself, whose assets will be shared between the partners Eni and Naturgy.
The liquefaction plant's owner is the company SEGAS, which is 40% owned by Eni through Union
Fenosa Gas (50% Eni and 50% Naturgy). The plant has a capacity of 7.56 billion cubic meters per
year, but has been idle since November 2012.
Today’s agreements, which are in line with the ones finalized last February and take into account
the evolution of the energy scenario, allow to reinforce Eni's strategic objectives in terms of growth
of its LNG portfolio, in particular in Egypt, where the Company is the main gas producer, and are of
primary importance for all parties involved to resolve all pending disputes.
The operation, subject to the authorization of the European authorities and subject to the fulfilment
of certain conditions precedent, allows to strengthen the presence of Eni in the Eastern
Mediterranean, a key region for the supply of natural gas, an important resource for the energy
transition.
In particular, the participation of Union Fenosa Gas in the Damietta plant (80%) will be transferred
50% to Eni and 30% to EGAS. The resulting shareholding of SEGAS will therefore be Eni 50%,
EGAS 40% and EGPC 10%. Eni will also take over the contract for the purchase of natural gas for
the plant and will receive corresponding liquefaction rights, thus increasing the volumes of LNG in
its portfolio by 3.78 billion cubic meters per year, which will be available on an FOB basis, with no
destination restrictions.
As regards Union Fenosa Gas' assets outside Egypt, Eni will take over the commercial activities of
natural gas in Spain, strengthening its presence in the European gas market. The agreement comes
at an important moment, when also thanks to the fast time to market of Eni's natural gas discoveries,
especially the ones in the Zohr and Nooros fields, Egypt has regained its full capacity to meet
domestic gas demand and can allocate surplus production for export through its LNG plants.

UK announces ‘ambitious’ plan to cut greenhouse gas emissions by 68%
CNBC - Anmar Frangoul
KEY POINTS
 The U.K. is gearing up to host the COP26 climate summit in Glasgow, Scotland next year.
 Originally planned for 2020, the conference was postponed until November 2021 because of
the coronavirus pandemic.
The U.K. government will target an emissions cut of at least 68% by the year 2030, compared to
1990 levels, under plans announced Thursday. The new goal to reduce greenhouse gas emissions
comes before a Climate Ambition Summit on Dec. 12 which the U.K. will co-host.
In a statement, the U.K.’s Prime Minister Boris Johnson described the new target as “ambitious,”
while Business and Energy Secretary Alok Sharma said it reflected “the urgency and scale of the
challenge our planet faces.”
The target is known as a Nationally Determined Contribution, or NDC, under 2015′s Paris
Agreement on climate change. NDCs are an integral part of the agreement, which aims to keep
global warming “well below” 2 degrees Celsius (35.6 degrees Fahrenheit) above pre-industrial
levels, and “pursue efforts” to limit the temperature rise to 1.5 degrees Celsius.
Previously, the U.K. had aimed for an NDC of 53%. International aviation and shipping are not
included in the target.
Ambition, but work to be done
Among those reacting to the government’s new target was John Sauven, Greenpeace UK’s
executive director. “The Prime Minister is right to have set one of the most ambitious climate targets
in the world,” he said.

“But given the urgency of the climate crisis and the rapid advances in zero carbon solutions,
ambition can be pushed even higher over the next decade,” he added. “The government must now
increase the action needed to cut emissions from our homes, roads, farms and power sources in
the UK.”
This week’s announcement comes as the U.K. gears up to host the COP26 climate summit in
Glasgow, Scotland next year. Originally planned for 2020, the conference was postponed until
November 2021 because of the coronavirus pandemic.
Martin Harper, conservation director at the Royal Society for the Protection of Birds, welcomed the
new target, adding that it would “enhance the UK’s leadership credentials in the run up (to) the
crucial climate talks next year.”
“But climate change science suggests we need to go further and faster, in particular by investing in
protecting and restoring habitats such as our peatlands which are so important for locking up
carbon,” he added.
Elsewhere, Ed Matthew, COP26 co-director for The Climate Coalition, a group focused on tackling
climate change, said: “It is notable that the UK has set a 2030 target which is a step up in ambition
and in line with its legal duty to achieve net-zero emissions by 2050.”
Matthew went on to describe this as “important progress but not sufficient.”
“A more ambitious cut is both feasible and necessary to keep us safe and reflect our massive historic
carbon emissions,” he added. “We must remember too that the climate will not respond to targets,
it will respond to carbon cuts. It is action that counts.”

U.S: briefly returned to net importer status for petroleum this year
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
The United States imported more crude oil and petroleum products than it exported in May and
June of this year, briefly reversing the country’s 15-year-long trend toward becoming a net petroleum
exporter.
After being a net petroleum exporter for seven consecutive months from October 2019 through April
2020, the United States became a net importer, and U.S. net petroleum imports averaged 939,000
barrels per day (b/d) in May and 675,000 b/d in June. On an annual basis, U.S. net imports of
petroleum have fallen from a high of 12.5 million b/d in 2005 to 0.7 million b/d in 2019.
The brief return to net imports was a result of declines in both U.S. crude oil production and in
refinery runs that resulted in lower gross crude oil and petroleum product exports because of lower
global petroleum demand and economic responses to COVID-19.
In April 2020, U.S. consumption of petroleum fell to its lowest level in decades as responses to the
COVID-19 pandemic led to significant declines in travel.
As petroleum demand fell, both domestically and internationally, U.S. refineries decreased crude oil
processing and produced smaller volumes of petroleum products.

Source: U.S. Energy Information Administration, Petroleum Supply Monthly
The decrease in global petroleum consumption led to a sharp decline in U.S. petroleum product
exports. U.S. gross exports of petroleum products fell for three consecutive months, from a record
high of 6.3 million b/d in February to 3.9 million b/d in May.
This change in petroleum product exports was the main factor in the overall shift in U.S. petroleum
trade from net exports to net imports in May and June. Since then, gross petroleum product exports
increased to 5.1 million b/d in September, the most recent data in EIA’s Petroleum Supply Monthly.
U.S. gross exports of crude oil, which declined in May and June, increased to 3.2 million b/d for
September (the most recent month for which data are available), a level less than the record high
of 3.7 million b/d set in February 2020.
Gross imports of crude oil, however, have resumed their long-term decline and most recently totaled
5.4 million b/d for September, the lowest monthly value since March 1992.

U.S: N. gas-fired generation has increased in most U.S. regions
Source: U.S. Energy Information Administration, Power Plant Operations Report
Natural gas-fired generation has generally increased in most U.S. regions since 2015, according to
data from the U.S. Energy Information Administration’s (EIA) Power Plant Operations Report.
Annual electricity generation from natural gas power plants in the United States increased by 31%
in the Northeast region, by 20% in the Central region, and by 17% in the South region between 2015
and 2019. In the West region of the continental United States, electric power generation from natural
gas power plants remained relatively flat during the same period.
Note: Central consists of the Electric Reliability Council of Texas (ERCOT), Southwest Power Pool
(SPP), and Midcontinent Independent System Operator (MISO). South consists of Southeastern
Electric Reliability Council (SERC) and Florida. Northeast consists of New York Independent
System Operator (NYISO), Independent System Operator New England (ISO-NE), and PJM
Interconnection (PJM). West consists of California, Northwest, and Southwest.
Through November 2020, the Central, South, and Northeast regions have generated similar
amounts of electricity from natural gas power plants. Of these regions, the Central region, which
includes three independent system operators, had the largest seasonal summer peak in natural
gas-fired generation, reaching 53 million megawatthours (MWh) for the month of July 2020, which
is 37% more than the 2015 summer peak month.
Growing natural gas-fired generation reflects an increase in natural gas-fired generating capacity.
Between 2015 and 2019, nearly 35 gigawatts (GW) of net summer capacity entered service,
according to EIA’s latest Electric Power Annual, which was an 11% increase during that five-year
period. Most of this new natural gas-fired capacity was added in the Northeast region, particularly
in the PJM Interconnection.

The largest increases in U.S. natural gas-fired generation have occurred in the Central and
Northeast regions, near the natural gas production area in Appalachia in states such as Ohio,
Pennsylvania, and West Virginia.
Relatively low natural gas prices have made it more economical to generate electricity using natural
gas instead of coal. This trend has been most pronounced in regions with competition between coal
and natural gas generators, particularly in the Midcontinent Independent System Operator's (MISO)
area in the Central region and the PJM Interconnection in the Northeast region.
When natural gas and coal are similarly priced on a cost-per-energy-content basis, most natural
gas-fired generators can
produce electricity more
efficiently than coal-fired
generators, providing an
economic advantage in
electricity markets.
In the West region,
growth in natural gas-
fired generation declined
1% between 2015 and
2019. Natural gas-fired
generation over that
period in California
declined 30 million MWh
(29%), offsetting the
combined growth of 28
million MWh in natural
gas-fired generation
from the Northwest and
Southwest subregions.

NewBase December 05-2020 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil rises, hovers below $50/bbl on hopes for U.S. stimulus
Reuters + NewBase
Brent crude oil futures rose more than 1% on Friday, remaining just under $50 a barrel, as
expectations of a U.S. economic stimulus package and the possibility of a vaccine for the
coronavirus overrode rising supply and increased COVID-19 deaths.
A bipartisan $908 billion coronavirus aid plan gained momentum in the U.S. Congress.
Brent settled up 54 cents or 1.11% at $49.25 a barrel. During the session, the contract hit its highest
since early March at $49.92. West Texas Intermediate rose 62 cents to $46.26 a barrel, after
touching a high of $46.68 a barrel.
Both benchmarks gained for a fifth consecutive week, with Brent up 1.7% and U.S. crude up 1.9%.
“We’re higher, despite super bearish events - it’s all about stimulus,” said Bob Yawger, director of
energy futures at Mizuho in New York. “You can’t go home short this weekend because they could
sign a deal this weekend.”
Oil price special
coverage

OPEC+, comprising of the Organization of the Petroleum Exporting Countries and its allies, on
Thursday agreed on a compromise to increase output slightly from January but continue the bulk of
existing supply curbs to cope with coronavirus-hit demand.
OPEC and Russia agreed to ease deep oil output cuts from January by 500,000 barrels per day
with further as yet undefined increases on a monthly basis, failing to reach a compromise on a
broader policy for the rest of 2021.
OPEC+ had been expected to continue existing cuts until at least March, after backing down from
plans to raise output by 2 million bpd.
The increase means the group will reduce production by 7.2 million bpd, or 7% of global demand
from January, compared with current cuts of 7.7 million bpd.
While some analysts saw an undersupplied oil market even under the new higher supply quotas,
others expected the barrels would tip the market into oversupply.
Wood Mackenzie analysts, for example, expect that if the increases continue through March, there
might be 1.6 million bpd unwanted in the first quarter.
The premium of Brent crude futures for nearby delivery to future months is at its highest since
February, a structure called backwardation, which usually points to supplies tightening up and
suggests receding fears of a current glut.
U.S. production, meanwhile, has recovered from the two-and-a-half-year lows touched in May
mainly because shale producers have brought wells back online in response to rising prices.
The U.S. oil rig count rose five to 246, its highest since May, energy services firm Baker Hughes Co
said.
Money managers raised their net long U.S. crude futures and options positions in the week to Dec.
1, the U.S. Commodity Futures Trading Commission (CFTC) said.

OPEC+ agrees slight easing of oil cuts from January
OPEC and Russia on Thursday agreed to slightly ease their deep oil output cuts from January by
500,000 barrels per day but failed to find a compromise on a broader and longer term policy for the
rest of next year.
The increase means the Organization of the Petroleum Exporting Countries and Russia, a group
known as OPEC+, would move to cutting production by 7.2 million bpd, or 7% of global demand
from January, compared with current cuts of 7.7 million bpd.
The curbs are being implemented to tackle weak oil demand amid a second coronavirus wave.
OPEC+ had been expected to extend existing cuts until at least March, after backing down from
earlier plans to boost output by 2 million bpd.
But after hopes for a speedy approval of anti-virus vaccines spurred an oil price rally at the end of
November, several producers started questioning the need to keep such a tight rein on oil policy,
as advocated by OPEC leader Saudi Arabia.
OPEC+ sources have said Russia, Iraq, Nigeria and the United Arab Emirates have all to a certain
extent expressed interest in supplying the market with more oil in 2021.
Russian Deputy Prime Minister Alexander Novak said the group would now gather every month to
decide on output policies beyond January with monthly increases not exceeding 500,000 bpd.
“This is a good decision as it allows us to stop and pause and review what needs to be done in
order not to hurt the market,” Novak said.
Novak said compensatory cuts for countries which overproduced in previous months had been
extended until March 2021.
Saudi Energy Minister Prince Abdulaziz bin Salman said the meeting was difficult due to differences
between many members.
“It is very excruciating, tiring and frustrating... For two or three days I threw in the towel, but the
towel comes back to me,” said Prince Abdulaziz.
OPEC+ has to strike a delicate balance between pushing up oil prices enough to help their budgets
but not by so much that rival U.S. output surges. U.S. shale production tends to climb above $50 a
barrel.
Monthly meetings by OPEC+ will make price moves more volatile and complicate hedging by U.S.
oil producers.
“We have seen some hedging but we haven’t seen an onslaught yet. As prices go up, hedging will
increase,” said Gary Ross, co-founder of BlackGold Investors.
After the OPEC decision, Brent crude prices extended gains, settling nearly 1% higher at $48.71 a
barrel.
“We still don’t know what will happen to Iranian and Venezuelan supplies after the arrival of (new
U.S. President Joe) Biden. So there are clearly some oversupply risks,” said Ross.

NewBase Special Coverage
The Energy world - Special 05- December -2020
Could EV Battery Swapping be The Future?
“Battery swapping is indeed much faster than charging, almost like adding oil.” Charging
an electric vehicle can take hours but China's NIO is cutting it down to minutes with
battery swapping technology @NIOGlobal.
Buy an EV, Lease the Battery? A Chinese Carmaker Is Trying It Out
Bloomberg News
A NIO Inc. battery pack for electric vehicles is displayed at the Auto Shanghai 2019 show in Shanghai in
2019. Photographer: Qilai Shen/Bloomberg
Batteries are by far the most expensive component of an electric vehicle, and swinging raw-material
prices can make the task of lowering their cost more difficult. China’s NIO Inc. and Contemporary
Amperex Technology Co. Ltd. aim to lighten that burden by allowing customers to lease batteries
separately from cars, reducing upfront purchase costs.
The approach means customers can buy just the vehicle shell outright, while agreeing to pay rental
fees for the battery. They can also replace the battery with a newer, improved one in the same car
shell as technology rapidly advances.

Such a model could expand the potential pool of customers and help to spur sales at carmakers
such as NIO, which announced a standalone battery business with CATL in Beijing on Thursday.
Under the new model, the starting price of NIO’s ES6 SUV without a battery will be 273,600 yuan
($39,500), and the battery’s monthly lease starts at 980 yuan, NIO said. Customers can still choose
to buy the entire vehicle, battery included, for 343,600 yuan.
The so-called battery-as-a-service model could “considerably lower the purchase cost,” Credit
Suisse Group AG analysts said earlier this week.
The new venture, which will handle leasing, charging, maintenance and upgrades of batteries
separate from its cars, will be part owned by NIO and battery giant CATL. Other investors are Guotai
Junan Financial Products Co. and the government-backed Hubei Provincial Science and
Technology Investment Group.
The four owners will each invest an initial 200 million yuan into the venture, called Wuhan Weineng
Battery Asset Management Co. More investors are in the process of participating, NIO Chief
Executive Officer William Li said.
Shanghai-based NIO, which this year received a municipal government cash injection and credit
facilities from local banks, reported a positive gross margin for the first time in the second quarter.
Its sleek ES8 and ES6 SUVs are attracting buyers as the coronavirus pandemic eases in China,
helping NIO’s stock price more than triple this year.
NIO is the only EV maker so far to roll out models with swappable batteries for individual customers.
Rival BAIC Motor Corp. uses swappable battery technology too but only for fleets.
Wuhan Weineng Battery Asset Management will also handle battery wholesale and retail, recycling,
mobile charging, R&D and energy storage. The venture will serve just NIO vehicles for now, though
it is open to working with other carmakers, Li said.
“We are very bullish on this business model,” CATL said in a written response to questions. “In the
vehicle-battery separation model, batteries will become an important asset instead of a source of
power only.”
While NIO may be ahead of the pack in terms of the battery-as-a-service concept, competition
remains stiff. Registrations of Tesla Inc. vehicles in China have topped 61,000 this year, versus the
17,702 vehicles NIO delivered through July.

NIO doesn’t have any overseas sales, though Li said Thursday that NIO plans to enter Europe in
the second half of 2021. More regions will be added the following year, and by 2023-2024 NIO will
be in “the main markets globally,” he said.
Sales of new-energy vehicles, including electric cars, are set to reach 1.1 million units this year in
China, with Tesla expected to account for around 10% of that, the China Association of Automobile
Manufacturers has forecast. A new government regulation in April maintained buyer rebates for
vehicles equipped with swappable batteries.
The Faster, Cheaper, Better Way to Charge Electric Vehicles
Opinion: Forget fast-charging. Battery swapping is back—and it's the
tech of the future.

CHINESE CARMAKER NIO, the world’s newest electric vehicle unicorn, has a big idea: battery
swapping. In theory, the process is quicker and more convenient than a fast charge. A driver rolls
into a battery swap station, and a robot replaces the drained battery with a fully charged spare. But
even though NIO’s battery swapping stations are already deployed in major cities across China,
retail investors don't seem to be taking NIO’s swap network seriously.
Levi Tillemann is the author of The Great Race: The Global Quest for the Car of the Future. He is
managing partner at Valence Strategic. Colin McCormick is a physicist, technologist and energy
policy expert who works with Valence Strategic on computer vision and autonomous vehicles.
Perhaps that’s because Chinese electric vehicle hype has often outpaced performance (See:
CODA, BYD, and Faraday Future.) Or perhaps it's the shadow of an earlier battery-swap
unicorn, Better Place—arguably the most spectacular EV flameout in history.
There’s also the fact that NIO is billed as a challenger to Tesla—a claim that strains credulity. Elon
Musk continues to crush automakers like BMW and Audi in the EV market. So, it’s no great surprise
that investors are skeptical. When NIO set a target price for its IPO between $6.25 and $8.25 last
month, it barely scraped the floor, debuting at $6.26.
There’s a lot to like about battery swapping. For one, it reverses the standard time tradeoff between
EVs and gasoline-powered vehicles. Many EV owners plug-in overnight and charge for hours. In
general, fast chargers are now able to charge a battery to 80 percent in a little under half an hour.
But in that time, some battery swap stations could charge dozens of cars to 100 percent. In 2013,
Tesla swapped out two EV batteries in the time it took to fill an Audi's tank with gas. Today, a
company called BattSwap says it can change out a battery in less than a minute. “It requires no
user interaction," says Bert Robbens, BattSwap's Chief Technical Officer. "You can do the swap

from within your vehicle.” And swapping a 500-mile EV battery won’t necessarily take longer than
one with a 100-mile range.
But ever since the downfall of Better Place in 2012, battery swapping has been widely regarded as
a technological dead end. Nonetheless, a number of innovative companies, including Tesla, are still
quietly developing battery swap ecosystems.
That’s because as EV ranges get longer and batteries get bigger, fast-charge technology is fighting
physics. Each of Tesla’s newest Super Chargers provides up to 135 Kilowatts of power—twenty-
seven thousand times more than an ordinary iPhone charger.
(Some EV companies are already testing “ultra-fast” chargers that will provide up to 350 Kilowatts.)
These power levels are so high that powerful cooling systems are required to keep vehicles from
overheating. Tesla has even experimented with liquid-cooled cables.
That’s because systems aren’t 100 percent efficient and the remaining percentage points of lost
energy are converted into heat. For a 95 percent efficient 135 kilowatt system, that energy loss is
like having half a dozen industrial-grade heat guns on full blast.
Pulling that amount of power from the electrical grid is also a major headache for local utilities.
Distribution lines and transformers need to handle enormous spikes of electrical demand when cars
plug in; many systems will have to be replaced or upgraded.
The user pays for these upgrades in the form of “demand charges,” based on their peak
consumption of electricity. Demand charges can make or break a business—significant spikes in
demand can mean fees that are higher than the cost of electricity provided.
Battery swapping flips this liability on its head. Empty batteries that are swapped out can be charged
when electricity is cheap or demand is low. Whoever owns those batteries can then sell that
electricity to motorists at a premium, or even sell it back into the grid when prices are high and
supplies are tight. This arbitrage is particularly important in a world of renewable energy.
When the sun shines bright or the wind blows hard, renewable energy sources may produce more
electricity than the grid needs; at other times renewables may not produce enough. Banks of
batteries waiting to be swapped can soak up extra energy and sell it at a profit, thus balancing
supply and demand.
TRENDING NOW
If utilization is high enough to defray capital costs, battery swapping is a compelling economic
proposition. And it can also benefit consumers. EV batteries lose range over the years. But with a
swap system, users pay for electricity and batteries as they are used. That could mean lower upfront
vehicle costs and increased driving range, as batteries improve.
Time, technological advances, and deliberate planning have neutralized many of the problems that
plagued Better Place. NIO’s doomed predecessor struggled with slow market growth, lackluster
cars, high capital costs, expensive batteries, and extravagant capital outlays. NIO is manufacturing
its own electric vehicles, so it’s not dependent on automakers to produce sexy cars or agree to its
technical standards. And because battery costs have plummeted, so have costs for battery
swapping.
China’s booming market, which accounts for more than half of global electric vehicle sales, gives
NIO the potential to scale much faster than Better Place ever could. And as China moves
toward 35% renewable energy by 2030, NIO is poised to play a significant and profitable role
balancing the supply and demand for China’s renewables-rich grid.

NIO’s battery swapping could serve as the cornerstone of a powerful ecosystem that integrates
electric vehicles, mobility, renewable energy, and storage. Properly executed, NIO could indeed
compete with Tesla, and at a massive scale.
Those who have accepted the demise of battery swapping may be in for a shock. The technology
will likely be a critical enabler for electrification, not just in cars, but planes, drones, rideshare fleets,
and autonomous vehicles. It may also be one of the most economical ways to build out the large
battery banks necessary to support the world’s growing supplies of renewable energy.
It shouldn’t surprise us that technologies left for dead sometimes come back to change the world.
After all, it wasn’t that long ago we were asking, “Who killed the electric car?”

NewBase Energy News 05 December 2020 - Issue No. 1391 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi, Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Currently working as Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy, and an international consultant, advisor, ecopreneur and
journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-
to-energy, renewable energy, environment protection and sustainable development.
His geographical areas of focus include Middle East, Africa and Asia. Khaled has
successfully accomplished a wide range of projects in the areas of Gas & Oil with
extensive works on Gas Pipeline Network Facilities & gas compressor stations.
Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.
NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE
NewBase 2020 K. Al Awadi

For Your Recruitments needs and Top Talents, please seek our approved agents below

New base energy news 05 december 2020 issue no-1391 senior editor eng- khaled al awadi

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à New base energy news 05 december 2020 issue no-1391 senior editor eng- khaled al awadi

Similaire à New base energy news 05 december 2020 issue no-1391 senior editor eng- khaled al awadi (20)

Plus de Khaled Al Awadi

Plus de Khaled Al Awadi (20)

Dernier

Dernier (20)

New base energy news 05 december 2020 issue no-1391 senior editor eng- khaled al awadi