Dive Brief: Federal tax credits that benefit energy developers, manufacturers and utilities face an early phaseout in a budget proposal released Monday by a key GOP-controlled House committee. The House Ways and Means Committee’s draft reconciliation package steps down the investment and production tax credits for nuclear power, wind, solar, batteries, geothermal and other clean energy technologies after 2028, and eliminates them completely after 2031. It preserves a comparatively generous credit for carbon sequestration and extends the clean fuels production credit. Energy industry groups and customers slammed the proposal, saying it would raise electricity prices, quash a manufacturing boom spurred by the Inflation Reduction Act and erode the United States’ competitive advantage on artificial intelligence. Dive Insight: The Ways and Means budget gives clean energy developers and producers until 2028 to claim the full 45Y and 48E tax credits for clean energy investment and production. The credit values step down to 80% in 2029, 60% in 2030 and 40% in 2031 before zeroing out in 2032. A separate credit for nuclear power production would phase out on the same schedule. As originally passed, the Inflation Reduction Act of 2022 allowed taxpayers to claim the full value of all three credits into 2032. “While our industry is ready to engage constructively and find a workable path forward, the Committee’s approach simply goes too far too fast,” American Clean Power Association CEO Jason Grumet said in a statement. “With energy demand surging, this is not the time for disruption.” The Ways and Means proposal also tightens eligibility for 45Y and 48E by requiring projects to be “placed in service” to qualify for the credit. The Inflation Reduction Act based eligibility on the year projects began construction, a more generous framework in a world where the timeline for grid interconnection and long-lead electrical

In an oil and gas report sent to Rigzone late Monday by the Macquarie team, Macquarie strategists revealed that they are forecasting that U.S. crude inventories will be up by 7.6 million barrels for the week ending May 9. “This follows a 2.0 million barrel draw in the prior week, with the crude balance again realizing tight relative to our expectations,” the Macquarie strategists noted in the report. “For this week’s crude balance, from refineries, we model crude runs higher (+0.3 million barrels per day). Among net imports, we model a very large increase, with exports down (-0.9 million barrels per day) and imports up (+0.6 million barrels per day) on a nominal basis,” they added. The Macquarie strategists warned in the report that the timing of cargoes remains a source of potential volatility in this week’s crude balance. “From implied domestic supply (prod.+adj.+transfers), we look for a small increase (+0.1 million barrels per day) this week,” the strategists said in the report. “Rounding out the picture, we anticipate a slightly smaller increase in SPR [Strategic Petroleum Reserve] stocks (+0.5 million barrels) this week,” they added. “Among products, we look for a draw in distillate (-0.6 million barrels), with jet stocks up (+0.7 million barrels), and gasoline nearly flat (-0.1 million barrels). We model implied demand for these three products at ~14.4 million barrels per day for the week ending May 9,” the strategists went on to state. In its latest weekly petroleum status report, which was released on May 7 and included data for the week ending May 2, the U.S. Energy Information Administration (EIA) highlighted that U.S. commercial crude oil inventories, excluding those in the SPR, decreased by two million barrels from the week ending April 25 to the week ending May 2. That EIA report showed that

The Trump administration’s order for Equinor to stop work on its 810-MW Empire Wind 1 wind energy project offshore New York will force the company to terminate the project entirely if the situation isn’t resolved “within days,” an Equinor spokesperson said Monday. The stop work order has led to “an urgent and unsustainable situation,” the spokesperson told Utility Dive. “We need a resolution from the federal government for this important project to move forward.” In the absence of a resolution “within days,” the company will be “forced to terminate the project,” he said. Equinor CEO Anders Opedal met with U.S. National Economic Council Director Kevin Hassett at the White House on May 6, but got no indication that the Trump administration is prepared to shift its stance, Bloomberg reported Monday. The current delay is “extremely expensive,” costing up to $50 million each week that the project is delayed, Equinor’s spokesperson said. Interior Secretary Doug Burgum ordered the project’s pause April 16, stating in a letter to BOEM that the project was “rushed through by the prior administration without sufficient analysis or consultation among the relevant agencies as relates to the potential effects from the project.” The letter said that construction will remain halted until “further review is completed to address these serious deficiencies.” The following day, Equinor said it would comply with the order, and that “immediate steps were taken by Empire and its contractors to initiate suspension of relevant marine activities, ensuring the safety of workers and the environment.” However, Opedal said in an April 30 first quarter earnings report that the order to halt work “is unprecedented and in our view unlawful,” and that the company would both engage directly with the Trump administration as well as consider its legal options. “This is a question of the rights and

Dan Farber is faculty director, Center for Law, Energy & the Environment at the University of California, Berkeley School of Law. President Trump delights in invoking executive powers designed for extraordinary circumstances, whether or not those circumstances are present. Thus, we have a mythical “invasion” by Venezuelan criminals, a “national emergency at the Southern border” (declared at a time when border crossings are unusually low) and a “national energy emergency” in anticipation of AI’s high energy demand — despite the grid working just fine.   This presidential chest-thumping may feel empowering for an administration eager to flex its muscles and impose its will. But as the president’s “national energy emergency” illustrates, when it comes to using extraordinary powers in very ordinary situations, the payoff can be quite small.  In Donald Trump’s America, the specter of an AI-driven energy shortage looms large. He declared the national emergency for the U.S. power system based on what was supposedly an urgent, unmet need for additional electricity generation. The supposed emergency was partly blamed on power needed for “the next generation of technology,” meaning artificial intelligence, and the president’s desire to exert AI dominance over China. The emergency declaration defined “energy” to include almost anything other than the wind and solar power that Trump disdains — and that are necessary to increase capacity while keeping costs in line. Eager to please its commander-in-chief, the Army Corps of Engineers responded with an announcement that it would use its own emergency regulation to fast-track permitting across water bodies and wetlands for almost 700 projects, some of which had little apparent connection with the electrical system. Now, ironically, the Corps’ “fast-tracking” appears likely to trigger lengthy delays.  First, the Army Corps regulation only applies to specific kinds of emergency situations: situations that involve “an unacceptable hazard to life,

Peterhead’s Score has confirmed a deal to acquire Drake Controls in Houston for an eight figure sum as it continues its expansion into markets across energy, defence and aerospace sectors. The transaction comes just days after Score announced another deal to buy BLJ In-Situ Solutions in Australia in a seven-figure acquisition that includes workshops in Queensland. Private equity-backed Score, which provides advanced engineering technology services in the fields of valve and emissions management, gas turbines and surface technologies, said the deals were “significant milestones” for the business. Drake, which was founded in 2002, distributes intelligent control systems for industrial gas turbines with sales and service centres across the United States and Mexico. It is one of NASDAQ-listed Woodward’s largest energy market business partners and was also a principal of the business alongside US industrials giant Crane Co through its Dynalco division. Score chief executive Nick Dunn said: “These acquisitions represent a pivotal step forward in Score’s strategic growth journey. “BLJ brings deep expertise in on-site maintenance and turnaround services in a region that is critical to our long-term plans, while Drake Controls enhances our digital capabilities with world-class control solutions that align perfectly with our vision to support global energy customers with efficient and cleaner energy solutions.” © Supplied by ScoreBLJ operations. Score is part of D2Zero, an international group of companies specialising in industrial decarbonisation and energy transition backed by private equity firm, SCF Partners. Score operates from over 30 locations across five continents.

NRG Energy Inc. and LS Power Equity Advisors LLC have penned a deal under which NRG will acquire gas-fired power units with a combined capacity of about 13 gigawatts (GW) and a C&P VPP (commercial and industrial virtual power plant) platform from LS Power. The transaction has an enterprise value of $12 billion. This consists of $6.4 billion in cash, a $2.8 billion stock issuance to LS Power and $3.2 billion of assumed debt. “The acquisition will double NRG’s generation capacity to 25 GW, adding modern, flexible natural gas assets that cannot be replicated”, said a joint statement Monday. “These new quick-start facilities, serving the Northeast and Texas markets, optimize NRG’s ability to serve customers, simplify risk management, and lower cost-to-serve”. The 18 gas-fired facilities being transferred to NRG are located across nine states. Meanwhile the C&P VPP platform, called CPower, operates in all the United States’ deregulated energy markets and has around 6 GW of capacity representing over 2,000 commercial and industrial customers, according to the statement. “The acquisition expands NRG’s capabilities to serve rapidly growing demand for tailored, long-term supply solutions for customers – particularly data centers. It also enhances NRG’s additionality offerings through 1+ GW of potential uprates, additional sites for potential development or colocation opportunities, and a differentiated C&I VPP platform”, the companies added. “The transaction is financially compelling as it strengthens our credit profile and turbocharges NRG’s growth rate, while also supporting continued robust capital returns”, said NRG chair, president and chief executive Larry Coben. “We are in the early stages of a power demand supercycle, and we are excited to lead the way with reliable energy solutions that will drive considerable value for NRG and all of our stakeholders”. The statement said, “Given the visible, sustained growth expected to be created by the acquisition, NRG is increasing its