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Bioethanol plant deems lack of Government support an ‘act of economic self-harm’

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Bioethanol plant deems lack of Government support an ‘act of economic self-harm’



The UK’s largest bioethanol plant has described a Government decision not to offer direct funding to the industry as “a flagrant act of economic self-harm” which will force it to close.

Vivergo Fuels, near Hull, warned earlier this year that it was in imminent danger of closure as crisis talks continued with the Government.

This followed the end of the 19% tariff on American bioethanol imports as part of the recent UK-US trade deal.

On Friday, the Government said: “This Government will always take decisions in the national interest.

“That’s why we negotiated a landmark deal with the US which protected hundreds of thousands of jobs in sectors like auto and aerospace.

“We have worked closely with the companies since June to understand the financial challenges they have faced over the past decade, and have taken the difficult decision not to offer direct funding as it would not provide value for the taxpayer or solve the long-term problems the industry faces.

“We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process.

“We also continue to work up proposals that ensure the resilience of our CO2 supply in the long-term in consultation with the sector.”

Ben Hackett, managing director of Vivergo Fuels, said: “The Government’s failure to back Vivergo has forced us to cease operations and move to closure immediately.

“This is a flagrant act of economic self-harm that will have far-reaching consequences.

“This is a massive blow to Hull and the Humber.

“We have fought from day one to support our workers and we are truly sorry that this is not the outcome any of us wanted.

“This decision by ministers will have a huge impact on our region and the thousands of livelihoods in the supply chain that rely on Vivergo, from farmers to hauliers and engineers.”

Mr Hackett said the industry has faced “unfair regulations” for years that favoured overseas producers, and the recent US-UK trade deal pushed the sector “to the point of collapse”.

He said: “We did everything we possibly could to avoid closure, but in the end it was the Government that decided the British bioethanol sector was something that could be traded away with little regard for the impact it would have on ordinary hard-working people.

“We did not go down without a fight and I hope that the noise we generated over the past three months will make the Government think twice before it decides to sign away whole industries as part of future trade negotiations.”

A spokesman for Associated British Foods, which owns Vivergo, said: “It is deeply regrettable that the Government has chosen not to support a key national asset.

“We have been left with no choice but to announce the closure of Vivergo and we have informed our people.

“We have been fighting for months to keep this plant open.

“We initiated and led talks with Government in good faith. We presented a clear plan to restore Vivergo to profitability within two years under policy levers already aligned with the Government’s own green industrial strategy.”

The spokesman said the Government had “thrown away billions in potential growth in the Humber and a sovereign capability in clean fuels that had the chance to lead the world”.

The bioethanol industry, which also includes the Ensus plant on Teesside, has argued the trade deal, coupled with regulatory constraints, has made it impossible to compete with heavily subsidised American products.

Vivergo said the Hull plant, which employs about 160 people, can produce up to 420 million litres of bioethanol from wheat sourced from thousands of UK farms.

It has described bioethanol production as “a key national strategic asset” which helps reduce emissions from petrol and is expected to be a key component in sustainable aircraft fuel in the future.

The firm recently signed a £1.25 billion memorandum of understanding with Meld Energy to anchor a “world-class” sustainable aviation fuel facility at the site.

But Meld Energy said earlier this month uncertainly over the bioethanol industry was putting this plan in jeopardy.

The Vivergo plant is also the UK’s largest single production site for animal feed, and the company says it indirectly supports about 4,000 jobs in the Humber and Lincolnshire region.

Vivergo has said it buys more than a million tonnes of British wheat each year from more than 4,000 farms, and has purchased from 12,000 individual farms over the past decade.

But it took its last wheat shipment earlier this month.

The farmers’ union described the imminent closure of the Vivergo plant as a “huge blow”.

NFU combinable crops board chairman Jamie Burrows said: “Not only is it terrible news for those hundreds of workers who will lose their jobs but also for the thousands of people whose livelihoods depend on this supply chain – that includes local farmers who have lost a vital market for their product.”

The Ensus plant in Teesside differs from the Vivergo operation because it also produces CO2 as part of the process.

Ensus, which is owned by CropEnergies, part of the German firm Sudzucker, is the UK’s only large scale manufacturer of CO2, which is used in a wide range of sectors, including in drinks and the nuclear industry.

Grant Pearson, chairman of Ensus UK, said on Friday: “I met with Sarah Jones, the minister for business, today, to receive the Government’s response to our request for financial support and the policy changes required to ensure that the Ensus facilities can continue to operate.

“The minister confirmed that they value both our contribution to the UK economy, the jobs we provide and support in the north east of England and in particular our production of biogenic CO2 which is a product of critical national importance.

“They are therefore looking at options to secure an ongoing supply of CO2 from the Ensus facility.

“This is positive news, however it is likely to take time to agree upon and finalise and therefore urgent discussions will be taking place to provide a level of assurance to the Sudzucker and CropEnergies’ boards that there is a very high level of confidence that an acceptable long-term arrangement can be reached.”



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Galeries Lafayette sets foot in India with Mumbai store – The Times of India

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Galeries Lafayette sets foot in India with Mumbai store – The Times of India


MUMBAI: Parisian luxury department store Galeries Lafayette is tapping India for growth, a market it said lacks luxury retail avenues for high spending consumers who shop for a spate of labels across pricey fashion houses and shopping stores abroad.The retailer’s flagship store in Paris’s Boulevard Haussmann is the second most-visited tourist spot in the French capital after Eiffel Tower and attracts 35 million visitors a year, half of which are foreigners.Galeries Lafayette, which is launching in India through partnership with the Aditya Birla Group, will open its first store in Mumbai early next month, after eight years of studying the local market and consumer nuances.“India is a key and strategic country. It also has great opportunities in terms of growth. Indian consumers are already very interested in buying luxury brands and products. They consume them not only in India but also abroad — Dubai, Singapore, the UK, Paris and especially in Galeries Lafayette. Clearly, there is a lack of offer inside India…there are no (luxury) department stores here,” Galeries Lafayette CEO Arthur Lemoine, told TOI in an interview here.The India foray, announced three years back, comes at a time when US tariff turmoil has clouded global growth prospects, nudging companies to review strategies.Of the 67 Galeries Lafayette stores globally, 58 are in home market France with the rest of the nine outlets spread across Asia including China, Indonesia and Dubai.The luxury brand has stitched a 20-year licensing agreement with the Aditya Birla Group. “Beyond the year which are written in the contract, we are here to build the future together,” said Lemoine. The four-storey department store in south Mumbai will house a broad range of global products — from bags to beauty, apparel and accessories. From a Rs 25-lakh bag to a Rs 3,000 lipstick, the idea is to cater to the luxury consumers but also tapping into the premium cohort who are willing to upgrade to high-end brands.“Luxury in our country today stands at the threshold of transformation,” said Aditya Birla Group chairman Kumar Mangalam Birla, adding that “In the span of less than a decade, the market is set to grow over four-fold from $20 billion to almost $90 billion by 2030.”The brand play will be omni-channel to give access to a wider set of affluent consumers, many of whom are sitting in non-metros. “In India, we have pockets of consumption all across the country,” said R Sathyajit, CEO, international brands at Aditya Birla Fashion & Retail adding that the company’s own website will be launched in a couple of months.Delhi will house the next Galeries Lafayette store. Currently, the assortment at the store is global with a tilt towards French and Parisian brands. “Over a period of time, we would also like to be a platform for emerging designers in India as well. The beauty of a department store is that it evolves with time, reflecting changing generations, tastes,” Sathyajit said.





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Netherland’s renewables drive putting pressure on its power grid

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Netherland’s renewables drive putting pressure on its power grid


John LaurensonBusiness reporter, Rotterdam

AFP via Getty Images Solar panels and wind turbines beside fields of tulips in the NetherlandsAFP via Getty Images

The Netherlands has raced to switch to wind and solar power

In a Dutch government TV campaign called “Flip the Switch” an actress warns viewers about their electricity usage.

“When we all use electricity at the same time, our power grid gets overloaded,” she says. “This can cause malfunctions. So, use as little electricity as possible between four and nine.”

It is the sign that, in one of the most-advanced economies in the world, something has gone wrong with the country’s power supply.

The Netherlands has been an enthusiastic adopter of electric cars. It has the highest number of charging points per capita in Europe.

As for electricity production, the Netherlands has replaced gas from its large North Sea reserves with wind and solar.

So much so that it leads the way in Europe for the number of solar panels per person. In fact, more than one third of Dutch homes have solar panels fitted.

The country is also aiming for offshore wind farms to be its biggest source of energy by 2030.

This is all good in environmental terms, but it’s putting the Dutch national electricity grid under enormous stress, and in recent years there have been a number of power cuts.

The problem is “grid congestion”, says Kees-Jan Rameau, chief executive of Dutch energy producer and supplier Eneco, 70% of whose electricity generation is now solar and wind.

“Grid congestion is like a traffic jam on the power grid. It’s caused by either too much power demand in a certain area, or too much power supply put onto the grid, more than the grid can handle.”

He explains that the problem is that the grid “was designed in the days when we had just a few very large, mainly gas-fired power plants”.

“So we built a grid with very big power lines close to those power plants, and increasingly smaller power lines as you got more towards the households.

“Nowadays we’re switching to renewables, and that means there’s a lot of power being injected into the grid in the outskirts of the network where there are only relatively small power lines.”

And these small power lines are struggling to cope with all the electricity coming in from wind turbines and solar panels scattered around the country.

AFP via Getty Images Dutch homes covered in solar panelsAFP via Getty Images

More than one in three Dutch homes has solar panels

Damien Ernst, professor of electrical engineering at Belgium’s Liege University, is one of Europe’s leading experts on electricity grids. He says it is an expensive problem for the Netherlands to solve.

“They have a grid crisis because they haven’t invested enough in their distribution networks, in their transmission networks, so they are facing bottlenecks everywhere, and it will take years and billions of dollars to solve this.”

Prof Ernst adds that it is a Europe-wide issue. “We have an enormous amount of solar panels being installed, and they are installed at a rate that is much, much too high for the grid to be able to accommodate.”

At Eneco’s headquarters in Rotterdam, Mr Kees-Jan Rameau highlights a large control panel that the company calls its “virtual power plant” and “the brain of our operations”. It is used to help balance the grid, avoiding blackouts.

When electricity generation is too high across the Netherlands, it enables Eneco to turn wind turbines out of the wind and turn off solar panels.

As for when demand for electricity is too high, it lowers the power to customers who have accepted to allow Eneco to stop or reduce their electricity supply when the network is under strain in exchange for lower prices.

But for homes and companies who want to scale-up their use of electricity with a new or larger grid connection, that, increasingly, is just not possible.

“Often consumers want to install a heat pump, or charge their electric vehicle at home, but that requires a much bigger power connection, and increasingly they just cannot get it,” says Mr Kees-Jan Rameau.

He adds that it is worse for businesses. “Often they want to expand their operations, and they just cannot get extra capacity from the grid operators.

And it has got to the point where even new housing construction in the Netherlands is becoming increasingly difficult, because there’s just no capacity to connect those new neighbourhoods to the grid.”

Those people, and companies, end up on waiting lists for a number of years. At the same time there are also waiting lists for those who want to supply the grid with power, such as a new home fitted with solar panels on its roof.

Staff at energy firm Eneco monitor screens

Energy firm Eneco can remotely reduce the amount of electricity generated by its wind farms

Tennet, the government-owned agency that runs the Netherlands’ national grid, says that 8,000 companies are currently waiting to be able to feed in electricity, while 12,000 others are waiting for permission to use more power.

Some sectors of the Dutch economy are warning that it is hampering their growth. “Grid congestion is putting the future of the Dutch chemical industry at risk… while in other countries it will be easier to invest,” says the President of the Dutch Chemical Association Nienke Homan.

So, was all this avoidable? “In hindsight I think almost every problem is avoidable,” says Mr Kees-Jan Rameau.

He adds that following the 2015 Paris Agreement on trying to tackle climate change, “we were very much focussing on increasing the renewable power generation side. But we kind of underestimated the impact it would have on the power grid.”

Tennet is now planning to spend €200bn ($235bn; £174bn) on reinforcing the grid, including laying some 100,000km (62,000 miles) of new cables between now and 2050.

That’s a huge amount of money, but there is also a big cost to not spending it. Grid congestion is costing the Dutch economy up to €35bn a year, according to a 2024 report from management consultancy group Boston Consulting Group.

Eugene Beijings, who is in charge of grid congestion with Tennet, says that patience is sadly required. “To strengthen and reinforce the grid, we need to double, triple, sometimes increase tenfold the capacity of the existing grid.

“And it’s taking on average about 10 years to do a project like that before it goes live, of which the first eight are legislation and getting the rights to put cables in the ground with all property owners. And only the last two years are the construction period.

“And meanwhile the energy transition is going that fast that we cannot cope with it, with the existing grid. So every additional request [to connect] is adding to the waiting list.”

Zet ook de knop om A man with an electric-charging cable stands in front of an electric car with a young womanZet ook de knop om

The Dutch government has paid for adverts encouraging people not to charge their cars during peak hours

At the Dutch energy ministry, which is actually called the Ministry for Climate Policy and Green Growth, the Minister Sophie Hermans wasn’t available for an interview. But her office gave a statement:

“In hindsight, the speed at which our electricity consumption has grown might have been collectively underestimated in the past by all parties involved. It is also hard to predict where the growth will occur first, as this results from individual companies/sectors and households.”

As for solutions, the ministry says it has a “National Grid Congestion Action Plan” focussed on adjusting legislation so grid expansion permits can be granted more quickly.

It is encouraging people to make better use of the existing grid with, for example, its Flip the Switch campaign.

And the financial incentive for people who feed their surplus solar electricity into the grid is being reduced to almost nothing. In some cases, people will even have to pay to feed solar power into the grid.

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Morgan Stanley posts massive third-quarter earnings beat

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Morgan Stanley posts massive third-quarter earnings beat


Ted Pick, CEO of Morgan Stanley speaks on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 23, 2025.

Gerry Miller | CNBC

Morgan Stanley on Wednesday posted third-quarter earnings that beat expectations by the largest margin in nearly five years on booming equities trading, investment banking and wealth management results.

Here’s what the company reported:

  • Earnings per share: $2.80 vs. $2.10 expected, according to LSEG
  • Revenue: $18.22 billion vs. $16.7 billion, according to LSEG

The bank said profit surged 45% from a year earlier to $4.61 billion, or $2.80 per share. Revenue rose 18% to a record $18.22 billion.

Morgan Stanley shares popped almost 5% Wednesday. They are up nearly 30% so far this year.

Wall Street trading desks have had high levels of activity in the quarter, while investment banking continues to see a resurgence in mergers and initial public offerings. Stocks at or near record highs bolstered Morgan Stanley’s giant wealth management division as well.

Put together, Wall Street-centric banks like Morgan Stanley and peer Goldman Sachs are in an ideal environment.

Morgan Stanley said equities trading revenue jumped 35% to $4.12 billion, or $720 million more than what analysts surveyed by StreetAccount had expected. The company cited increased activity across business lines and regions and record results in its prime brokerage business that caters to hedge funds.

Fixed income trading rose 8% to $2.17 billion, essentially matching the StreetAccount estimate.

Investment banking revenue in the quarter surged 44% from a year earlier to $2.11 billion, about $430 million more than the StreetAccount estimate. The bank cited more completed mergers, more IPOs and more fixed income fundraising as drivers for the quarter.

Wealth management revenue rose 13% to $8.23 billion, about $500 million more than expected, as rising asset levels and transaction fees bolstered results.

On Tuesday, JPMorgan Chase, Goldman, Citigroup and Wells Fargo each posted earnings that topped analysts’ expectations for earnings and revenue.

This story is developing. Please check back for updates.



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