Argentina evaluates potential for geothermal project

U.S. Hybrid Vehicle Sales Outlook highlights rising hybrid demand as an EV bridge, driven by emissions rules, range anxiety, charging infrastructure gaps, and automaker strategies from Ford, Toyota, and Stellantis across U.S. markets.

Key Points

Forecast of U.S. hybrid sales shaped by EV adoption, emissions rules, charging access, and automaker strategies.

✅ S&P sees hybrids at 24% of U.S. sales by 2028

✅ Bridges ICE to EV amid range and charging concerns

✅ Ford, Toyota, Stellantis expand U.S. hybrid lineups

Hybrid gasoline-electric vehicles may not be dying as fast as some predicted in the auto sector’s rush to develop all-electric models.

Ford Motor is the latest of several top automakers, including Toyota and Stellantis, planning to build and sell hundreds of thousands of hybrid vehicles in the U.S. over the next five years, industry forecasters told Reuters.

The companies are pitching hybrids as an alternative for retail and commercial customers who are seeking more sustainable transportation, but may not be ready to make the leap to a full electric vehicle.

"Hybrids really serve a lot of America," said Tim Ghriskey, senior portfolio strategist at New York-based investment manager Ingalls & Snyder. "Hybrid is a great alternative to a pure electric vehicle (and) it's an easier sell to a lot of customers."

Interest in hybrids is rebounding as consumer demand for pure electrics has not accelerated as quickly as expected, with EV market share dipping in Q1 2024 according to some analyses. Surveys cite a variety of reasons for tepid EV demand, from high initial cost and concerns about range to lengthy charging times and a shortage of public charging infrastructure in many regions.

“With the tightening of emissions requirements, hybrids provide a cleaner fleet without requiring buyers to take the leap into pure electrics,” said Sam Fiorani, vice president at AutoForecast Solutions.

S&P Global Mobility estimates hybrids will more than triple over the next five years, accounting for 24% of U.S. new vehicle sales in 2028. Sales of pure electrics will claim about 37%, supported by strong U.S. EV sales into 2024 momentum, leaving combustion vehicles — including so-called “mild” hybrids — with a nearly 40% share.

S&P estimates hybrids will account for just 7% of U.S. sales this year, and pure electrics 9%, underscoring that EV sales still lag gas cars as internal combustion engine (ICE) vehicles take more than 80%.

Historically, hybrids have accounted for less than 10% of total U.S. sales, with Toyota’s long-running Prius among the most popular models. The Japanese automaker has consistently said hybrids will play a key role in the company's long-range electrification plans as it slowly ramps up investment in pure EVs.

Ford is the latest to roll out more aggressive hybrid plans. On its second-quarter earnings call in late July, Chief Executive Jim Farley surprised analysts, saying Ford expects to quadruple its hybrid sales over the next five years after earlier promising an aggressive push into all-electric vehicles.

“This transition to EVs will be dynamic,” Farley told analysts. “We expect the EV market to remain volatile until the winners and losers shake out.”

Among Ford’s competitors, General Motors appears to have little interest in hybrids in the U.S., while Stellantis will follow Toyota and Ford’s hedge by offering U.S. buyers a choice of different powertrains, including hybrids, until sales of pure electric vehicles start to take off after mid-decade, a potential EV inflection point according to forecaster GlobalData.

In a statement, GM said it, echoing leadership's view that EVs won't go mainstream until key issues are addressed, "continues to be committed to its all-electric future ... While we will have hybrid vehicles in our global fleet, our focus remains on transitioning our portfolio to electric by 2030.”

Stellantis said hybrids now account for 36% of Jeep Wrangler sales and 19% of Chrysler Pacifica sales. In addition to new pure electric models coming soon, "we are very bullish on hybrids going forward," a spokesperson said.

This year, manufacturers are marketing more than 60 hybrids in the U.S. Toyota and its premium Lexus brand are selling at least 18 different hybrid models, enabling the Japanese automaker to maintain its stranglehold on the sector.

Hyundai and sister brand Kia offer seven hybrid models, with Ford and Lincoln six. Stellantis offers just three, and GM’s sole entry, due out later this year, is a hybrid version of the Chevrolet Corvette sports car.

But hybrids remain in short supply at many U.S. dealerships.

Andrew DiFeo, dealer principal at Hyundai of St. Augustine, south of Jacksonville, FL, doesn't see EV adoption hitting the levels the Biden administration wants until EV charging networks are as ubiquitous as gas stations.

"Hybrids are a great bridge to whatever the future holds,” said DiFeo, adding, “I've got zero in stock (and) I've got customers that want all of them."

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Ontario Electricity Export Retaliation signals tariff-fueled trade tensions as Doug Ford leverages cross-border energy flows to the U.S., risking grid reliability, higher power prices, and escalating a Canada-U.S. trade war over protectionist policies.

Key Points

A policy threat by Ontario to cut power exports to U.S. states in response to tariffs, leveraging grid dependence.

✅ Powers about 1.5M U.S. homes in NY, MI, and MN

✅ Risks price spikes, shortages, and legal challenges

✅ Part of Canada's CAD 30B retaliatory tariff package

In a move that underscores the escalating trade tensions between Canada and the United States, Ontario Premier Doug Ford has threatened to halt electricity exports to U.S. states in retaliation for the Trump administration's recent tariffs. This bold stance highlights Ontario's significant role in powering regions across the U.S. and serves as a warning about the potential consequences of trade disputes.

The Leverage of Ontario's Electricity

Ontario's electricity exports are not merely supplementary; they are essential to the energy supply of several U.S. states. The province provides power to approximately 1.5 million homes in states such as New York, Michigan, and Minnesota, even as it eyes energy independence through domestic initiatives. This substantial export positions Ontario as a key player in the regional energy market, giving the province considerable leverage in trade negotiations.

Premier Ford's Ultimatum

Responding to the Trump administration's imposition of a 25% tariff on Canadian imports, Premier Ford, following a Washington meeting, declared, "If they want to play tough, we can play tough." He further emphasized his readiness to act, stating, "I’ll cut them off with a smile on my face." This rhetoric underscores Ontario's willingness to use its energy exports as a bargaining chip in the trade dispute.

Economic and Political Ramifications

The potential cessation of electricity exports to the U.S. would have profound economic implications. U.S. states that rely on Ontario's power could face energy shortages, leading to increased prices, particularly New York energy prices, and potential disruptions. Such an action would not only strain the energy supply but also escalate political tensions, potentially affecting other areas of bilateral cooperation.

Canada's Retaliatory Measures

Ontario's threat is part of a broader Canadian strategy to counteract U.S. tariffs. Prime Minister Justin Trudeau has announced retaliatory tariffs on U.S. goods worth approximately CAD 30 billion, targeting products such as food, textiles, and furniture. These measures aim to pressure the U.S. administration into reconsidering its trade policies.

The Risk of Escalation

While leveraging energy exports provides Ontario with a potent tool, it also carries significant risks, as experts warn against cutting Quebec's energy exports amid tariff tensions. Such actions could lead to a full-blown trade war, with both countries imposing tariffs and export restrictions. The resulting economic fallout could affect various sectors, from manufacturing to agriculture, and lead to job losses and increased consumer prices.

International Trade Relations

The dispute also raises questions about the stability of international trade agreements and the rules governing cross-border energy transactions. Both Canada and the U.S. are signatories to various trade agreements that promote the free flow of goods and services, including energy. Actions like export bans could violate these agreements and lead to legal challenges.

Public Sentiment and Nationalism

The trade tensions have sparked a surge in Canadian nationalism, with public sentiment largely supporting tariffs on energy and minerals as retaliatory measures. This sentiment is evident in actions such as boycotting American products and expressing discontent at public events. However, while national pride is a unifying force, it does not mitigate the potential economic hardships that may result from prolonged trade disputes.

The Path Forward

Navigating this complex situation requires careful diplomacy and negotiation. Both Canada and the U.S. must weigh the benefits of trade against the potential costs of escalating tensions. Engaging in dialogue, seeking compromise, and adhering to international trade laws are essential steps to prevent further deterioration of relations and to ensure the stability of both economies.

Ontario's threat to cut off electricity exports to the U.S. serves as a stark reminder of the interconnectedness of global trade and the potential consequences of protectionist policies. While such measures can be effective in drawing attention to grievances, they also risk significant economic and political fallout. As the situation develops, it will be crucial to monitor the responses of both governments and the impact on industries and consumers alike, including growing support for Canadian energy projects among stakeholders.

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Hydro-Que9bec COVID-19 M&A Pause signals a halt to international expansion as falling electricity demand, weaker exports, and revenue pressure shift capital to the Quebec economy, prioritizing domestic investment, strategic plan revisions, and risk management.

Key Points

Hydro-Que9bec COVID-19 M&A Pause halts overseas deals, shifting investment to Quebec as demand, exports and revenue fall.

✅ International M&A on hold; capital reallocated to Quebec projects

✅ Lower electricity demand reduces exports and spot prices

✅ Strategic plan and 2020 guidance revised downward

COVID-19 is forcing Hydro-Québec to pull the plug on its global ambitions — for now, even as its electricity ambitions have reopened old wounds in Newfoundland and Labrador in recent years.

Quebec’s state-owned power generator and distributor has put international mergers and acquisitions on hold for the foreseeable future because of the COVID-19 crisis, chief financial officer Jean-Hugues Lafleur said Friday.

Former chief executive officer Éric Martel, who left last month, had made foreign expansion a key tenet of his growth strategy.

“We’re in revision mode” as pertains to acquisitions, Lafleur told reporters on a conference call, as the company pursues a long-term strategy to wean the province off fossil fuels at home as well. “I don’t see how Hydro-Québec could take $5 billion now and invest it in Chile because we have an investment opportunity there. Instead, the $5 billion will be invested here to support the Quebec economy. We’re going to make sure the Quebec economy recovers the right way before we go abroad.”

Lafleur spoke after Hydro-Québec reported a 14-per-cent drop in first-quarter profit and warned full-year results will fall short of expectations as COVID-19 weighs on power demand.

Net income in the three-month period ended March 31 was $1.53 billion, down from $1.77 billion a year ago, Hydro-Québec said in a statement. Revenue fell about six per cent to $4.37 billion.

“Due to the economic downturn resulting from the current crisis, we’re anticipating lower electricity sales in all of our markets,” Lafleur said. “Consequently, the financial outlook for 2020 set out in the strategic plan 2020–2024, which also reflects the province’s no-nuclear stance, will be revised downward.”

It’s still too early to determine the scope of the revision, the company said in its quarterly report. Hydro-Québec was targeting net income of between $2.8 billion and $3 billion in 2020, according to its strategic plan.

The first quarter was the utility’s last under Martel, who quit to take over at jetmaker Bombardier Inc. Quebec appointed former Énergir CEO Sophie Brochu to replace him, effective April 6.

First-quarter results “weren’t significantly affected” by the pandemic, Lafleur said on a conference call with reporters. Electricity sales generated $294 million less than a year ago due primarily to milder temperatures, he said.

Results will start to reflect COVID-19’s impact in the second quarter, though NB Power has signed three deals to bring more Quebec electricity into the province that could cushion some exports.

Electricity consumption in Quebec has fallen five per cent in the past two months, paced by an 11-per-cent plunge for commercial and institutional clients, and cities such as Ottawa saw a demand plunge during closures.

Industrial customers such as pulp and paper producers have also curbed power use, and it’s hard to see demand rebounding this year, Lafleur said.

“What we’ve lost since the start of the pandemic is not coming back,” he said.

Demand on export markets, meanwhile, has shrunk between six per cent and nine per cent since mid-March. The drop has been particularly steep in Ontario, reaching as much as 12 per cent, after the province chose not to renew its electricity deal with Quebec earlier this year, compared with declines of up to five per cent in New England and eight per cent in New York.

Spot prices in the U.S. have retreated in tandem, falling this week to as low as 1.5 U.S. cents per kilowatt-hour, Lafleur said. Hydro-Québec’s hedging strategy — which involves entering into fixed-price sales contracts about a year ahead of time — allowed the company to export power for an average of 4.9 U.S. cents per kilowatt-hour in the first quarter, compared with the 2.2 cents it would have otherwise made.

Investments will decline this year as construction activity proceeds at reduced speed, Lafleur said. Hydro-Québec was initially planning to invest about $4 billion in the province, he said, as it works to increase hydropower capacity to more than 37,000 MW across its fleet.

Physical distancing measures “are having an impact on productivity,” Lafleur said. “We can’t work the way we wanted, and project costs are going to be affected. Anytime we send workers north on a plane, we need to leave an empty seat beside them.”

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UAE Nuclear Power Plant launches the Barakah facility, delivering clean electricity to the Middle East under IAEA safeguards amid Gulf tensions, proliferation risks, and debates over renewables, natural gas, grid resilience, and energy security.

Key Points

The UAE Nuclear Power Plant, Barakah, is a civilian facility expected to supply 25% of electricity under IAEA oversight.

✅ Barakah reactors target 25% of national electricity.

✅ Operates under IAEA oversight, no enrichment per US 123 deal.

✅ Raises regional security, proliferation, and environmental concerns.

The United Arab Emirates became the first Arab country to open a nuclear power plant on Saturday, following a crucial step in Abu Dhabi earlier in the project, raising concerns about the long-term consequences of introducing more nuclear programs to the Middle East.

Two other countries in the region — Israel and Iran — already have nuclear capabilities. Israel has an unacknowledged nuclear weapons arsenal and Iran has a controversial uranium enrichment program that it insists is solely for peaceful purposes.

The U.A.E., a tiny nation that has become a regional heavyweight and international business center, said it built the plant to decrease its reliance on the oil that has powered and enriched the country and its Gulf neighbors for decades. It said that once its four units were all running, the South Korean-designed plant would provide a quarter of the country’s electricity, with Unit 1 reaching 100% power as a milestone toward commercial operations.

Seeking to quiet fears that it was trying to build muscle to use against its regional rivals, it has insisted that it intends to use its nuclear program only for energy purposes.

But with Iran in a standoff with Western powers over its nuclear program, Israel in the neighborhood and tensions high among Gulf countries, some analysts view the new plant — and any that may follow — as a security and environmental headache. Other Arab countries, including Saudi Arabia and Iraq, are also starting or planning nuclear energy programs.

The Middle East is already riven with enmities that pit Saudi Arabia and the U.A.E. against Iran, Qatar and Iran’s regional proxies. One of those proxies, the Yemen-based Houthi rebel group, claimed an attack on the Barakah plant when it was under construction in 2017.

And Iran is widely believed to be behind a series of attacks on Saudi oil facilities and oil tankers passing through the Gulf over the last year.

“The UAE’s investment in these four nuclear reactors risks further destabilizing the volatile Gulf region, damaging the environment and raising the possibility of nuclear proliferation,” Paul Dorfman, a researcher at University College London’s Energy Institute, wrote in an op-ed in March.

Noting that the U.A.E. had other energy options, including “some of the best solar energy resources in the world,” he added that “the nature of Emirate interest in nuclear may lie hidden in plain sight — nuclear weapon proliferation.”
But the U.A.E. has said it considered natural gas and renewable energy sources before dismissing them in favor of nuclear energy because they would not produce enough for its needs.

Offering evidence that its intentions are peaceful, it points to its collaborations with the International Atomic Energy Agency, which has reviewed the Barakah project, and the United States, with which it signed a nuclear energy cooperation agreement in 2009 that allows it to receive nuclear materials and technical assistance from the United States while barring it from uranium enrichment and other possible bomb-development activities.

That has not persuaded Qatar, which last year lodged a complaint with the international nuclear watchdog group over the Barakah plant, calling it “a serious threat to the stability of the region and its environment.”

The U.A.E.’s oil exports account for about a quarter of its total gross domestic product. Despite its gusher of oil, it has imported increasing amounts of natural gas in recent years in part to power its energy-intensive desalination plants.

“We proudly witness the start of Barakah nuclear power plant operations, in alignment with the highest international safety standards,” Mohammed bin Zayed, the U.A.E.’s de facto ruler, tweeted on Saturday.

The new nuclear facility, which is in the Gharbiya region on the coast, close to Qatar and Saudi Arabia, is the first of several prospective Middle East nuclear plants, even as Europe reduces nuclear capacity elsewhere. Egypt plans to build a power plant with four nuclear reactors.

Saudi Arabia is also building a civilian nuclear reactor while pursuing a nuclear cooperation deal with the United States, and globally, China's nuclear program remains on a steady development track, though the Trump administration has said it would sign such an agreement only if it includes safeguards against weapons development.

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Germany Energy Price Hikes are driving electricity tariffs, gas prices, and heating costs higher as wholesale markets surge after the Ukraine invasion; households face inflationary pressure despite relief measures and a renewables levy cut.

Key Points

Germany Energy Price Hikes reflect surging power and gas tariffs from wholesale spikes, prompting relief measures.

✅ Electricity tariffs to rise 19.5% in Apr-Jun

✅ Gas tariffs up 42.3%; heating and fuel costs soar

✅ Renewables levy ends July; saves €6.6 billion yearly

Record prices for electricity and gas in Germany will continue to rise in the coming months, the dpa agency, citing estimates from the consumer portal Verivox.

According to him, electricity suppliers and local utilities, in whose area of ​​responsibility there are 13 million households, made an announcement of tariff increases in April, May and June by 19.5%. Gas tariffs increased by an average of 42.3%.

According to Verivox, electricity prices in Germany have approximately doubled over the year - a pattern seen as European electricity prices rose more than double the EU average - if previously a household with a consumption of 4,000 kWh paid 1,171 euros a year, now the amount has risen to 1,737 euros. Gas prices have risen even more, though European gas prices later returned to pre-Ukraine war levels: last year, a household with a consumption of 20,000 kWh paid 1,184 euros in annual terms, and now it is 2,787 euros. 

Energy costs for the average German household are 52 percent higher than a year ago, adding to EU inflation pressures, according to energy contract sales website Check24. In a press release, the company said the wholesale electricity price was at €122.93 per megawatt-hour in February 2022, compared to €49 this time last year, while in the United States US electricity prices climbed at the fastest pace in 41 years. In addition, electricity prices on the power exchange haven been rising rapidly since Russian troops invaded Ukraine, comparison portal Strom Report said. Costs for heating rose the most, triggered by the high gas price (105 euros per megawatt-hour on the wholesale market) and around 100 USD per barrel of oil – its highest price since 2014. Driving also became more expensive with costs for petrol up 25 percent and diesel 30 percent, Check24 said.

The German government has decided on relief measures for low-income households, including a 200 billion euro energy shield, in response to high consumer energy costs. In July, it will abolish the renewables levy on the power price, saving consumers around €6.6 billion annually. In a reform proposal released this week, the ministry for economy and climate also detailed how it will legally oblige power suppliers to reduce their power bills when the levy is abolished.

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Medicine Hat Bitcoin Mining Deal delivers 42 MW electricity to Hut 8, enabling blockchain data centres, cryptocurrency mining expansion, and economic diversification in Alberta with low-cost power, land lease, and rapid construction near Unit 16.

Key Points

A pact to supply 42 MW and lease land, enabling Hut 8's blockchain data centres and crypto mining growth in Alberta.

✅ 42 MW electricity from city; land lease near Unit 16

✅ Hut 8 expands to 60.7 MW; blockchain data centres

✅ 100 temporary jobs; 42 ongoing roles in Alberta

The City of Medicine Hat has agreed to supply electricity and lease land to a Toronto-based cryptocurrency mining company, at a time when some provinces are pausing large new crypto loads in a deal that will see $100 million in construction spending in the southern Alberta city.

The city will provide electric energy capacity of about 42 megawatts to Hut 8 Mining Corp., which will construct bitcoin mining facilities near the city's new Unit 16 power plant.

The operation is expected to be running by September and will triple the company's operating power to 60.7 megawatts, Hut 8 said, amid broader investments in new turbines across Canada.

#google#

"The signing of the electricity supply agreement and the land lease represents a key component in achieving our business plan for the roll-out of our BlockBox Data Centres in low-cost energy jurisdictions," said the company's board chairman, Bill Tai, in a release.

"[Medicine Hat] offers stable, cost-competitive utility rates and has been very welcoming and supportive of Hut 8's fast-paced growth plans."

In bitcoin mining operations, rows upon rows of power-consuming computers are used to solve mathematical puzzles in exchange for bitcoins and confirm crytopcurrency transactions. The verified transactions are then added to the public ledger known as the blockchain.

Hut 8's existing 18.7-megawatt mining operation at Drumheller, Alta. — a gated compound filled with rows of shipping containers housing the computers — has so far mined 750 bitcoins. Bitcoin was trading Tuesday morning for about $11,180.

Medicine Hat Mayor Ted Clugston says the deal is part of the city's efforts to diversify its economy.

We've made economic development a huge priority down here because we were hit very, very hard by the oil and gas decline," he said, noting that being the generator and vendor of its own electricity puts the city in a uniquely good position.

"Really we're just turning gas into electricity and they're taking that electricity and turning it into blockchain, or ones and zeroes."

Elsewhere in Canada, using more electricity for heat has been urged by green energy advocates, reflecting broader electrification debates.

Hut 8 says construction of the facility is starting right away and will create about 100 temporary jobs. The project is expected to be finished by the third-quarter of this year.

The Medicine Hat mining operation will generate 42 ongoing jobs for electricians, general labourers, systems technicians and security staff.

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