GT Solar hopes sun will come out this week

By Reuters


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GT Solar International Inc's initial public offering, expected to be the largest ever by a U.S. solar company, is facing a surprisingly cloudy outlook.

Despite red-hot industry growth, as the price of competing energy sources soars, investors have not shown a sunny disposition toward solar energy stocks lately.

The stocks of industry leaders Suntech Power Holdings Co Ltd and Applied Materials Inc, among others, have been cooling from March rally levels since late May. Suntech is down about 18 percent from its high in spring, while Applied Materials is down about 9 percent.

Those declines could cast a pall over GT Solar, a Merrimack, New Hampshire-based maker of the manufacturing equipment used by solar energy companies, whose IPO is scheduled for this week.

"It'll hurt that solar stocks have been volatile," said Samuel Snyder, a senior research analyst with Greenwich, Connecticut-based advisory firm Renaissance Capital. "But investors will see unique aspects that make GT Solar attractive."

One of those advantages is GT Solar's position as one of only a few makers of the manufacturing equipment used by the solar companies, analysts say.

"It's a less fragmented arena," said Pavel Molchanov, an alternative energy analyst with Raymond James & Associates. "The landscape is not quite as competitive."

GT Solar's regulatory filings also reveal a compound annual growth rate of 128 percent in the past two years that should comfort investors, with revenue of $244 million for the year that ended in March.

That growth rate explains why GT Solar would trade at 66 times 2007 earnings if the IPO priced at the midpoint of its forecast range, a high multiple compared with those of other solar stocks, said Scott Sweet, an analyst with IPO Boutique.

GT Solar's IPO is forecast to price in a range of $15.50 to $17.50, with a midpoint of $16.50 a share.

"Their growth is astronomical and they have a backlog, so it will support a higher price earnings ratio," Sweet said. In its filing, the company said it has an order backlog of $1.3 billion.

Other solar companies have widely varying multiples based on 2007 earnings, from a price/earnings ratio of nearly 36 for Suntech and 15 for Applied Technologies. First Solar Inc, one of the few solar stocks doing well lately, is trading at a multiple of nearly 200, while SunPower Corp's multiple is 60 and LDK Solar Co Ltd's is 26.

Investors are skittish about cutbacks to subsidies in Spain, a major market, and the uncertainty during an election year around the renewal of a U.S. federal tax credit set to expire in December and that has spurred industry growth.

The tight market for silicon, a key component in the process of turning sunlight into power, might hurt solar energy's economics, as could a sustained fall in oil prices.

While oil does not have a direct correlation to demand for solar power, since most electricity in the United States is generated from coal or natural gas, higher crude oil prices generally help boost investor interest in renewable energy.

Last year saw a spate of solar IPOs in the United States, including Chinese manufacturers LDK Solar and Yingli Green Energy Holding Co Ltd. In 2008, there has been only one solar IPO so far, Real Goods Solar Inc's modest $55 million debut in May.

Should GT Solar raise $500 million as planned when it goes public, the offering will be the largest-ever U.S. solar IPO and the sixth-largest U.S. IPO of the year overall, according to data from Dealogic. The company plans to list on the Nasdaq under the ticker "SOLR".

Even if solar subsidies were scaled back, the market has reached a maturity and viability that should reassure investors, analysts say.

"There is a disconnect between the fundamentals of the industry and how stocks are trading," Molchanov said.

"Solar adoption rates are still barely scratching the surface," he said, pointing to solar energy's 0.1 percent share of the U.S. electric power market, and the 3 percent share in Germany, by far the world's largest market.

According to data from research firm Global Markets Direct, solar energy was an $18 billion global industry in 2007, growing at a pace of about 35 percent per year in the last three years. In the United States, the $1.4 billion market is growing even more quickly, at a clip of 60 percent per year.

Ultimately, of course, how GT Solar performs at its debut may hinge on how the capricious markets are feeling that day, said Sal Morreale, who tracks IPOs for financial services firm Cantor Fitzgerald.

"In an environment like this, an IPO like GT Solar is day to day," he said.

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BC Ferries celebrates addition of hybrid ships

BC Ferries Island Class hybrid ferries deliver quiet, battery-electric travel with shore power readiness, lower emissions, and larger capacity on northern routes, protecting marine wildlife while replacing older vessels on Powell River and Texada services.

 

Key Points

Hybrid-electric ferries using batteries and diesel for quiet, low-emission service, ready for shore power upgrades.

✅ Operate 20% electric at launch; future full-electric via shore power

✅ 300 passengers, 47 vehicles; replacing older, smaller vessels

✅ Quieter transits help protect West Coast whales and marine habitat

 

In a champagne celebration, BC Ferries welcomed two new, hybrid-electric ships into its fleet Wednesday. The ships arrived in Victoria last month, and are expected to be in service on northern routes by the summer.

The Island Aurora and Island Discovery have the ability to run on either diesel or electricity.

"The pressure on whales on the West Coast is very intense right now," said BC Ferries CEO Mark Collins. "Quiet operation is very important. These ships will be gliding out of the harbor quietly and electrically with no engines running, that will be really great for marine space."

BC Ferries says the ships will be running on electricity 20 per cent of the time when they enter service, but the company hopes they can run on electricity full-time in the future. That would require the installation of shoreline power, which the company hopes to have in place in the next five to 10 years. Each ship costs around $40-million, a price tag that the federal government partially subsidized through CIB support as part of the electrification push.

When the two ships begin running on the Powell River to Texada, and Port McNeill, Alert Bay, and Sointula routes, two older vessels will be retired.

On Kootenay Lake, an electric-ready ferry is slated to begin operations in 2023, reflecting the province's wider shift.

"They are replacing a 47-car ferry, but on some routes they will be replacing a 25-car ferry, so those routes will see a considerable increase in service," said Collins.

Although the ships will not be servicing Colwood, the municipality's mayor is hoping that one day, they will.

"We can look at an electric ferry when we look at a West Shore ferry that would move Colwood residents to Victoria," said Mayor Rob Martin, noting that across the province electric school buses are hitting the road as well. "Here is a great example of what BC Ferries can do for us."

BC Ferries says it will be adding four more hybrid ships to its fleet by 2022, and is working on adding hybrid ships that could run from Victoria to Tsawwassen, similar to Washington State Ferries' hybrid upgrade underway in the region. 

B.C’s first hybrid-electric ferries arrived in Victoria on Saturday morning ushering in a new era of travel for BC Ferries passengers, as electric seaplane flights are also on the horizon for the region.

“It’s a really exciting day for us,” said Tessa Humphries, spokesperson for BC Ferries.

It took the ferries 60 days to arrive at the Breakwater District at Ogden Point. They came all the way from Constanta, Romania.

“These are battery-equipped ships that are designed for fully electric operation; they are outfitted with hybrid technology that bridges the gap until the EV charging infrastructure and funding is available in British Columbia,” said Humphries.

The two new "Island Class" vessels arrived at about 9 a.m. to a handful of people eagerly wanting to witness history.

Sometime in the next few days, the transport ship that brought the new ferries to B.C. will go out into the harbor and partially submerge to allow them to be offloaded, Humphries said.

The transfer process could happen in four to five days from now. After the final preparations are finished at the Breakwater District, the ships will be re-commissioned in Point Hope Maritime and then BC Ferries will officially take ownership.

“We know a lot of people are interested in this so we will put out advisory once we have more information as to a viewing area to see the whole process,” said Humphries.

Both Island Class ferries can carry 300 passengers and 47 vehicles. They won’t be sailing until later this year, but Humphries tells CTV News they will be named by the end of February. 

 

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What can we expect from clean hydrogen in Canada

Canadian Clean Hydrogen is surging, driven by net-zero goals, tax credits, and exports. Fuel cells, electrolysis, and low-emissions power and transport signal growth, though current production is largely fossil-based and needs decarbonization.

 

Key Points

Canadian Clean Hydrogen is the shift to make and use low-emissions hydrogen for energy and industry to reach net-zero.

✅ $17B tax credits through 2035 to scale electrolyzers and hubs

✅ Export MOUs with Germany and the Netherlands target 2025 shipments

✅ IEA: 99% of hydrogen from fossil fuels; deep decarbonization needed

 

As the world races to find effective climate solutions, and toward an electric planet vision, hydrogen is earning buzz as a potentially low-emitting alternative fuel source. 

The promise of hydrogen as a clean fuel source is nothing new — as far back as the 1970s hydrogen was being promised as a "potential pollution-free fuel for our cars."

While hydrogen hasn't yet taken off as the fuel of the future  — a 2023 report from McKinsey & Company and the Hydrogen Council estimates that there is a grand total of eight hydrogen vehicle fuelling stations in Canada — many still hope that will change.

The hope is hydrogen will play a significant role in combating climate change, serving as a low-emissions substitute for fossil fuels in power generation, home heating and transportation, where cleaning up electricity remains critical, and today, interest in a Canadian clean hydrogen industry may be starting to bubble over.

"People are super excited about hydrogen because of the opportunity to use it as a clean chemical fuel. So, as a displacement for natural gas, diesel, gasoline, jet fuel," said Andrew Gillis, CEO of Canadian hydrogen company Aurora Hydrogen. 

Plans for low or zero-emissions hydrogen projects are beginning to take shape across the country. But, at the moment, hydrogen is far from a low-emissions fuel, which is why some experts suggest expectations for the resource should be tempered. 

The IEA report indicates that in 2021, global hydrogen production emitted 900 million tonnes of carbon dioxide — roughly 180 million more than the aviation industry — as roughly 99 per cent of hydrogen production came from fossil fuel sources. 

"There is a concern that the role of hydrogen in the process of decarbonization is being very greatly overstated," said Mark Winfield, professor of environmental and urban change at York University. 


A growing excitement 

In 2020, the government released a hydrogen strategy, aiming to "cement hydrogen as a tool to achieve our goal of net-zero emissions by 2050 and position Canada as a global, industrial leader of clean renewable fuels." 

The latest budget includes over $17 billion in tax credits between now and 2035 to help fund clean hydrogen projects.

Today, the most common application for hydrogen in Canada is as a material in industrial activities such as oil refining and ammonia, methanol and steel production, according to Natural Resources Canada. 

But, the buzz around hydrogen isn't exactly over its industrial applications, said Aurora Hydrogen's Gillis.

"All these sorts of things where we currently have emitting gaseous or liquid chemical fuels, hydrogen's an opportunity to replace those and access the energy without creating emissions at the point of us," Gillis said. 

When used in a fuel cell, hydrogen can produce electricity for transportation, heating and power generation without producing common harmful emissions like nitrogen oxide, hydrocarbons and particulate matter — BloombergNEF estimates that hydrogen could meet 24 per cent of global energy demand by 2050.


A growing industry

Canada's hydrogen strategy aims to have 30 per cent of end-use energy be from clean hydrogen by 2050. According to the strategy, Canada produces an estimated three million tonnes of hydrogen per year from natural gas today, but the strategy doesn't indicate how much hydrogen is produced from low-emissions sources.

In recent years, the Canadian clean hydrogen industry has earned international interest, especially as Germany's hydrogen strategy anticipates significant imports.

In 2021, Canada signed a memorandum of understanding with the Netherlands to help develop "export-import corridors for clean hydrogen" between the two countries. Canada also recently inked a deal with Germany to start exporting the resource there by 2025.

But while a low-emissions hydrogen plant went online in Becancour, Que., in 2021, the rest of Canada's clean-hydrogen industry seems to be in the early stages.

 

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Renewable power developers discover more energy sources make better projects

Hybrid renewable energy projects integrate wind, solar, and battery storage to enhance grid reliability, reduce curtailment, and provide dispatchable power in markets like Alberta, leveraging photovoltaic tracking, overbuilt transformers, and improved storage economics.

 

Key Points

Hybrid renewable energy projects combine wind, solar, and storage to deliver reliable, dispatchable clean power.

✅ Combine wind, solar, and batteries for steady, dispatchable output

✅ Lower curtailment by using shared transformers and smart inverters

✅ Boost farm income via leases; diversify risk from oil and gas

 

Third-generation farmer James Praskach has been burned by the oil and gas sector and watched wicked weather pound his crops flat, but he is hoping a new kind of energy -- the renewable kind -- will pay dividends.

The 39-year-old is part of a landowner consortium that is hosting the sprawling 300-megawatt Blackspring Ridge wind power project in southeastern Alberta.

He receives regular lease payments from the $600-million project that came online in 2014, even though none of the 166 towering wind turbines that surround his land are actually on it.

His lease payments stand to rise, however, when and if the proposed 77-MW Vulcan Solar project, which won regulatory approval in 2016, is green-lighted by developer EDF Renewables Inc.

The panels would cover about 400 hectares of his family's land with nearly 300,000 photovoltaic solar panels in Alberta, installed on racks designed to follow the sun. It would stand in the way of traditional grain farming of the land, but that wouldn't have been a problem this year, Praskach says.

"This year we actually had a massive storm roll through. And we had 100 per cent hail damage on all of (the Vulcan Solar lands). We had canola, peas and barley on it this year," he said, adding the crop was covered by insurance.

Meanwhile, poor natural gas prices and a series of oilpatch financial failures mean rents aren't being paid for about half of the handful of gas wells on his land, showing how a province that is a powerhouse for both fossil and green energy can face volatility -- he's appealed to the Alberta surface Rights Board for compensation.

"(Solar power) would definitely add a level of security for our farming operations," said Praskach.

Hybrid power projects that combine energy sources are a growing trend as selling renewable energy gains traction across markets. Solar only works during the day and wind only when it is windy so combining the two -- potentially with battery storage or natural gas or biomass generation -- makes the power profile more reliable and predictable.

Globally, an oft-cited example is on El Hierro, the smallest of the Canary Islands, where wind power is used to pump water uphill to a reservoir in a volcanic crater so that it can be released to provide hydroelectric power when needed. At times, the project has provided 100 per cent of the tiny island's energy needs.

Improvements in technology such as improving solar and wind power and lower costs for storage mean it is being considered as a hybrid add-on for nearly all of its renewable power projects, said Dan Cunningham, manager of business development at Greengate Power Corp. of Calgary.

Grant Arnold, CEO of developer BluEarth Renewables, agreed.

"The barrier to date, I would say, has been cost of storage but that is changing rapidly," he said. "We feel that wind and storage or solar and storage will be a fundamental way we do business within five years. It's changing very, very rapidly and it's the product everybody wants."

Vulcan Solar was proposed after Blackspring Ridge came online, said David Warner, associate director of business development for EDF Renewables, which now co-owns the wind farm with Enbridge Inc.

"Blackspring actually had incremental capacity in the main power transformers," he said. "Essentially, it was capable of delivering more energy than Blackspring was producing. It was overbuilt."

Vulcan Solar has been sized to utilize the shortfall without producing so much energy that either will ever have to be constrained, he said. Much of the required environmental work has already been done for the wind farm.

Storage is being examined as a potential addition to the project but implementing it depends on the regulatory system. At present, Alberta's regulators are still working on how to permit and control what they call "dispatchable renewables and storage" systems.

EDF announced last spring it would proceed with the Arrow Canyon Solar Project in Nevada which is to combine 200 MW of solar with 75 MW of battery storage by 2022 -- the batteries are to soak up the sun's power in the morning and dispatch the electricity in the afternoon when Las Vegas casinos' air conditioning is most needed.

What is clear is that renewable energy will continue to grow, with Alberta renewable jobs expected to follow -- in a recent report, the International Energy Agency said global electricity capacity from renewables is set to rise by 50 per cent over the next five years, an increase equivalent to adding the current total power capacity of the United States.

The share of renewables is expected to rise from 26 per cent now to 30 per cent in 2024 but will remain well short of what is needed to meet long-term climate, air quality and energy access goals, it added.

 

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Revenue from Energy Storage for Microgrids to Total More Than $22 Billion in the Next Decade

Energy Storage for Microgrids enables renewables integration via ESS, boosting resilience and reliability while supporting solar PV and wind, innovative financing, and business models, with strong growth forecast across Asia-Pacific and North America.

 

Key Points

Systems that store energy in microgrids to integrate renewables, boost resilience, and optimize distributed power.

✅ Integrates solar PV and wind with stable, dispatchable output

✅ Reduces costs via new financing and service business models

✅ Expands reliable power for remote, grid-constrained regions

 

A new report from Navigant Research examines the global market for energy storage for microgrids (ESMG), providing an analysis of trends and market dynamics in the context of the evolving digital grid landscape, with forecasts for capacity and revenue that extend through 2026.

Interest in energy storage-enabled microgrids is growing alongside an increase in solar PV and wind deployments. Although not required for microgrids to operate, energy storage systems (ESSs) have emerged as an increasingly valuable component of distributed energy networks, including virtual power plants that coordinate distributed assets, because of their ability to effectively integrate renewable generation.

“There are several key drivers resulting in the growth of energy storage-enabled microgrids globally, including the desire to improve the resilience of power supply both for individual customers and the entire grid, the need to expand reliable electricity service to new areas, rising electricity prices, and innovations in business models and financing,” says Alex Eller, research analyst with Navigant Research. “Innovations in business models and financing will likely play a key role in the expansion of the ESMG market during the coming years.”

One example of microgrid deployment for resilience is the SDG&E microgrid in Ramona built to help communities prepare for peak wildfire season.

According to the report, the most successful companies in this industry will be those that can unlock the potential of new business models to reduce the risk and upfront costs to customers. This is particularly true in Asia Pacific and North America, which are projected to be the largest regional markets for new ESMG capacity by far, a trend underscored by California's push for grid-scale batteries to stabilize the grid.

The report, “Market Data: Energy Storage for Microgrids,” outlines the key market drivers and barriers within the global ESMG market. The study provides an analysis of specific trends, including evolving grid edge trends, and market dynamics for each major world region to illustrate how different markets are taking shape. Global ESMG forecasts for capacity and revenue, segmented by region, technology, and market segment, extend through 2026. The report also briefly examines the major technology issues related to ESSs for microgrids.

Google made energy storage news recently when its parent company Alphabet announced it is hoping to revolutionize renewable energy storage using vats of salt and antifreeze. Alphabet’s secretive research lab, simply named “X,” is developing a system for storing renewable energy that would otherwise be wasted. The project, named “Malta,” is hoping its energy storage systems “has the potential to last longer than lithium-ion batteries and compete on price with new hydroelectric plants and other existing clean energy storage methods, according to X executives and researchers,” reports Bloomberg.

 

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Is The Global Energy Transition On Track?

Global Decarbonization Strategies align renewable energy, electrification, clean air policies, IMO sulfur cap, LNG fuels, and the EU 2050 roadmap to cut carbon intensity and meet Paris Agreement targets via EVs and efficiency.

 

Key Points

Frameworks that cut emissions via renewables, EVs, efficiency, cleaner marine fuels, and EU policy roadmaps.

✅ Renewables scale as wind and solar outcompete new coal and gas.

✅ Electrification of transport grows as EV costs fall and charging expands.

✅ IMO 2020 sulfur cap and LNG shift cut shipping emissions and particulates.

 

Are we doing enough to save the planet? Silly question. The latest prognosis from the United Nations’ Intergovernmental Panel on Climate Change made for gloomy reading. Fundamental to the Paris Agreement is the target of keeping global average temperatures from rising beyond 2°C. The UN argues that radical measures are needed, and investment incentives for clean electricity are seen as critical by many leaders to accelerate progress to meet that target.

Renewable power and electrification of transport are the pillars of decarbonization. It’s well underway in renewables - the collapse in costs make wind and solar generation competitive with new build coal and gas.

Renewables’ share of the global power market will triple by 2040 from its current level of 6% according to our forecasts.

The consumption side is slower, awaiting technological breakthrough and informed by efforts in countries such as New Zealand’s electricity transition to replace fossil fuels with electricity. The lower battery costs needed for electric vehicles (EVs) to compete head on and displace internal combustion engine (ICE)  cars are some years away. These forces only start to have a significant impact on global carbon intensity in the 2030s. Our forecasts fall well short of the 2°C target, as does the IEA’s base case scenario.

Yet we can’t just wait for new technology to come to the rescue. There are encouraging signs that society sees the need to deal with a deteriorating environment. Three areas of focus came out in discussion during Wood Mackenzie’s London Energy Forum - unrelated, different in scope and scale, each pointing the way forward.

First, clean air in cities.  China has shown how to clean up a local environment quickly. The government reacted to poor air quality in Beijing and other major cities by closing older coal power plants and forcing energy intensive industry and the residential sector to shift away from coal. The country’s return on investment will include a substantial future health care dividend.

European cities are introducing restrictions on diesel cars to improve air quality. London’s 2017 “toxicity charge” is a precursor of an Ultra-Low Emission Zone in 2019, and aligns with UK net-zero policy changes that affect transport planning, to be extended across much of the city by 2020. Paris wants to ban diesel cars from the city centre by 2025 and ICE vehicles by 2030. Barcelona, Madrid, Hamburg and Stuttgart are hatching similar plans.

 

College Promise In California: Community-Wide Efforts To Support Student Success

Second, desulphurisation of global shipping. High sulphur fuel oil (HSFO) meets around 3.5 million barrels per day (b/d) of the total marine market of 5 million b/d. A maximum of 3.5% sulphur content is allowed currently. The International Maritime Organisation (IMO) implements a 0.5% limit on all shipping in 2020, dramatically reducing the release of sulphur oxides into the atmosphere.

Some ships will switch to very low sulphur fuel oil, of which only around 1.4 million b/d will be available in 2020. Others will have to choose between investing in scrubbers or buying premium-priced low sulphur marine gas oil.

Longer-term, lower carbon-intensity gas is a winner as liquefied natural gas becomes fuel of choice for many newbuilds. Marine LNG demand climbs from near zero to 50 million tonnes per annum (tpa) by 2040 on our forecasts, behind only China, India and Japan as a demand centre. LNG will displace over 1 million b/d of oil demand in shipping by 2040.

Third, Europe’s radical decarbonisation plans. Already in the vanguard of emissions reductions policy, the European Commission is proposing to reduce carbon emissions for new cars and vans by 30% by 2030 versus 2020. The targets come with incentives for car manufacturers linked to the uptake of EVs.

The 2050 roadmap, presently at the concept stage, envisages a far more demanding regime, with EU electricity plans for 2050 implying a much larger power system. The mooted 80% reduction in emissions compared with 1990 will embrace all sectors. Power and transport are already moving in this direction, but the legacy fuel mix in many other sectors will be disrupted, too.

Near zero-energy buildings and homes might be possible with energy efficiency improvements, renewables and heat pumps. Electrification, recycling and bioenergy could reduce fossil fuel use in energy intensive sectors like steel and aluminium, and Europe’s oil majors going electric illustrates how incumbents are adapting. Some sectors will cite the risk decarbonisation poses to Europe’s global competitiveness. If change is to come, industry will need to build new partnerships with society to meet these targets.

The 2050 roadmap signals the ambition and will be game changing for Europe if it is adopted. It would provide a template for a global roll out that would go a long way toward meeting UN’s concerns.

 

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Nord Stream: Norway and Denmark tighten energy infrastructure security after gas pipeline 'attack'

Nord Stream Pipeline Sabotage triggers Baltic Sea gas leaks as Norway and Denmark tighten energy infrastructure security, offshore surveillance, and exclusion zones, after drone sightings near platforms and explosions reported by experts.

 

Key Points

An alleged attack causing Baltic gas leaks and heightened energy security measures in Norway and Denmark.

✅ Norway boosts offshore and onshore site security

✅ Denmark enforces 5 nm exclusion zone near leaks

✅ Drones spotted; police probe sabotage and safety breaches

 

Norway and Denmark will increase security and surveillance around their energy infrastructure sites after the alleged sabotage of Russia's Nord Stream gas pipeline in the Baltic Sea, as the EU pursues a plan to dump Russian energy to safeguard supplies. 

Major leaks struck two underwater natural gas pipelines running from Russia to Germany, which has moved to a 200 billion-euro energy shield amid surging prices, with experts reporting that explosions rattled the Baltic Sea beforehand.

Norway -- an oil-rich nation and Europe's biggest supplier of gas -- will strengthen security at its land and offshore installations, even as it weighs curbing electricity exports to avoid shortages, the country's energy minister said.

The Scandinavian country's Petroleum Safety Authority also urged vigilance on Monday after unidentified drones were seen flying near Norway's offshore oil and gas platforms.

"The PSA has received a number of warnings/notifications from operator companies on the Norwegian Continental Shelf concerning the observation of unidentified drones/aircraft close to offshore facilities" the agency said in a statement.

"Cases where drones have infringed the safety zone around facilities are now being investigated by the Norwegian police."

Meanwhile Denmark will increase security across its energy sector after the Nord Stream incident, as wider market strains, including Germany's struggling local utilities, ripple across Europe, a spokesperson for gas transmission operator Energinet told Upstream.

The Danish Maritime Agency has also imposed an exclusion zone for five nautical miles around the leaks, warning ships of a danger they could lose buoyancy, and stating there is a risk of the escaping gas igniting "above the water and in the air," even as Europe weighs emergency electricity measures to limit prices.

Denmark's defence minister said there was no cause for security concerns in the Baltic Sea region.

"Russia has a significant military presence in the Baltic Sea region and we expect them to continue their sabre-rattling," Morten Bodskov said in a statement.

Video taken by a Danish military plane on Tuesday afternoon showed the extent of one of gas pipeline leaks, with the surface of the Baltic bubbling up as gas escapes, highlighting Europe's energy crisis for global audiences:

Meanwhile police in Sweden have opened a criminal investigation into "gross sabotage" of the Nord Stream 1 and Nord Stream 2 pipelines, and Sweden's crisis management unit was activated to monitor the situation. The unit brings together representatives from different government agencies. 

Swedish Foreign Minister Ann Linde had a call with her Danish counterpart Jeppe Kofod on Tuesday evening, and the pair also spoke with Norwegian Foreign Minister Anniken Huitfeldt on Wednesday, as the bloc debates gas price cap strategies to address the crisis, with Kofod saying there should be a "clear and unambiguous EU statement about the explosions in the Baltic Sea." 

"Focus now on uncovering exactly what has happened - and why. Any sabotage against European energy infrastructure will be met with a robust and coordinated response," said Kofod. 

 

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