Two big consumers buy their own power generation
Two consumers of electricity cover their concerns over the cost of power generation and potential risk associated with carbon emissions. Both Ikea and Cemex have announced the purchase of wind projects.
Ikea has stepped up to a 98 megawatt wind project in Illinoi. According to Bloomberg the “… wind farm will produce enough electricity for about 34,000 U.S. homes, or about 165 percent of the company’s U.S. electricity consumption from 38 stores, five distribution centers, two service centers and a factory.”
Cemex, which is the world’s largest producer of cement, completed financing of two wind projects in Mexico. The financing of the 126 megawatt projects was valued at $650 million. Cement manufacturing is one of the largest emitters of carbon dioxide in the world.
Natural gas storage update
In its Weekly Natural Gas Storage Update the EIA reported an increase of 24 Bcf for the week ending April 11th . This put the storage volume of working gas in storage at 850 Bcf. The injection volume of 24 Bcf was just slightly below the average for this week over the last 8 years.
Working gas volumes in storage now stand 50% below year ago levels and 54% below the trailing five year average. The two graphs below illustrate the current situation compared to the past.