Cost Basis – After Hours http://after-hours.org/ Tue, 22 Nov 2022 08:19:17 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://after-hours.org/wp-content/uploads/2021/07/icon-1-150x150.png Cost Basis – After Hours http://after-hours.org/ 32 32 President Joseph R. Biden, Jr. Approves South Carolina Disaster Declaration https://after-hours.org/president-joseph-r-biden-jr-approves-south-carolina-disaster-declaration/ Tue, 22 Nov 2022 03:20:09 +0000 https://after-hours.org/president-joseph-r-biden-jr-approves-south-carolina-disaster-declaration/ Today, President Joseph R. Biden, Jr. declared a major disaster exists in the state of South Carolina and ordered federal assistance to supplement state and local recovery efforts in areas affected by Hurricane Ian during the period from September 25 to October 4. 2022. The President’s action makes federal funding available to those affected in […]]]>

Today, President Joseph R. Biden, Jr. declared a major disaster exists in the state of South Carolina and ordered federal assistance to supplement state and local recovery efforts in areas affected by Hurricane Ian during the period from September 25 to October 4. 2022.

The President’s action makes federal funding available to those affected in Charleston, Georgetown and Horry counties.

Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the catastrophe.

Federal funding is also available to eligible state and local governments and certain private nonprofit organizations on a cost-share basis for emergency work and the repair or replacement of facilities damaged by Hurricane Ian in Berkeley. , Charleston, Clarendon, Georgetown, Horry, Jasper and Williamsburg counties.

Finally, federal funding is available on a cost-share basis for risk mitigation measures across the state.

Deanne Criswell, Administrator, Federal Emergency Management Agency (FEMA), Department of Homeland Security, has appointed Kevin A. Wallace, Sr. as the Federal Coordinating Officer for Federal Recovery Operations in affected areas.

Additional designations may be made at a later date at the request of the State and justified by the results of other damage assessments.

Residents and business owners who have suffered losses in designated areas can start applying for assistance at www.DisasterAssistance.govby calling 800-621-FEMA (3362) or using FEMA App. Anyone using a relay service, such as video relay service (VRS), captioned telephone service, or others, can give FEMA the number for that service.

FOR FURTHER INFORMATION, MEDIA SHOULD CONTACT THE FEMA NEWS DESK AT (202) 646-3272 OR FEMA-NEWS-DESK@FEMA.DHS.GOV.

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The tax rule every investor should know in 2022 https://after-hours.org/the-tax-rule-every-investor-should-know-in-2022/ Thu, 17 Nov 2022 11:06:00 +0000 https://after-hours.org/the-tax-rule-every-investor-should-know-in-2022/ Investors suffered their longest bear market in years in 2022. Even after a significant rebound from the worst levels of the year, many stocks are still down sharply from their January level. This has investors looking for ways to take advantage of opportunities, and one thing they are looking at is doing year-end tax planning […]]]>

Investors suffered their longest bear market in years in 2022. Even after a significant rebound from the worst levels of the year, many stocks are still down sharply from their January level. This has investors looking for ways to take advantage of opportunities, and one thing they are looking at is doing year-end tax planning in hopes of paying less income tax next April.

In bear markets, many investors hold positions with substantial declines in value from where they made their initial investments. A strategy called tax loss harvesting can be a useful way to obtain at least a partial recovery of these losses.

Still, if you think stocks will rebound again, there’s one key tax rule you need to understand. Otherwise, you could lose the tax relief you were hoping to get.

Image source: Getty Images.

Selling for tax losses and the wash sale rule

Individual taxpayers do not have to pay tax on gains until they sell their investments. At this point, they realize a capital gain or loss, depending on whether the value of the investment has increased or decreased since purchase. Before that, however, these gains or losses remain unrealized and you do not have to take them into account in your taxes.

This gives investors full control over their tax planning. When you have big winnings, you don’t have to pay taxes on them until you sell them. However, stick with it for the long haul and you’ll defer your taxes too.

The downside, however, is that for claim tax loss, you must sell. This is fine if you no longer wish to own shares, perhaps because you have lost confidence in the business prospects of the company. If you still like the company and expect the stock to rebound, the wash sale rule kicks in preventing you from simply selling your stock and buying it back immediately.

The washing rule instead requires that you have more than 30 days between when you sell the shares and when you buy replacement shares. Make the redemption before the 30 day period elapses and your tax loss on your original sale will be denied. The loss doesn’t go away, but it feeds back into the replacement stock tax base, locking it in until you sell those shares.

It’s hard to get around the wash sale rule

The rules of the wash sale also come into play in other situations. If you sell a stock and then buy an option within 30 days to buy that stock at a later date, this will trigger the rule. Sell ​​the stock in one brokerage account and buy it back in another, and the rule still applies. Redeem a different class of shares of the same company — Alphabet Class A voting shares for Alphabet C non-voting shares, for example – and you also have your loss withdrawn as substantially identical security.

Therefore, you will usually only have to wait for the 30 day period. Still, this can cause problems if the timing of the tax-loss sale turns out to be bad. If the rally in the stock occurs during the period that you do not own the stock, then by the time you can buy the stock back, it could cost you much more than what you received from selling it a month before. .

A way to manage the risk of fictitious sales

A strategy that is allowed, however, is to buy shares of similar companies. So, for example, if you think Alphabet stock will rally when advertising picks up, you might consider owning shares of the social media advertising giant. Metaplatforms for the 30 day period. The hope of doing so would be that if Alphabet stock rises, Meta stock would follow for the same reasons.

The reason this is allowed, however, is also the reason it’s not a perfect solution. Meta and Alphabet are different companies that will operate differently. The shares could tender move similarly, but within any given 30-day period, it’s entirely possible that your replacement position will move in the opposite direction to that of the stock you sold.

However, with so many investors posting substantial losses in 2022, you can’t afford to overlook the opportunity to save tax by selling losing positions. As long as you follow the rules, you will be able to get something out of the loss of investments other than disappointment.

Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a board member of The Motley Fool. Suzanne Frey, an executive at Alphabet, is a board member of The Motley Fool. Dan Caplinger holds positions in Alphabet (A shares) and Alphabet (C shares). The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares) and Meta Platforms, Inc. The Motley Fool has a disclosure policy.

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Disney+ isn’t poised to boost Disney stock anytime soon https://after-hours.org/disney-isnt-poised-to-boost-disney-stock-anytime-soon/ Fri, 11 Nov 2022 11:20:00 +0000 https://after-hours.org/disney-isnt-poised-to-boost-disney-stock-anytime-soon/ If Disney+ is the main reason you own waltz disney (SAY 4.28%) stock right now, you might get a little frustrated. The company’s flagship streaming service, as well as its ESPN+ and Hulu platforms, continue to add subscribers, but the pace of that growth is slowing as revenue per user declines. The company’s direct-to-consumer business […]]]>

If Disney+ is the main reason you own waltz disney (SAY 4.28%) stock right now, you might get a little frustrated. The company’s flagship streaming service, as well as its ESPN+ and Hulu platforms, continue to add subscribers, but the pace of that growth is slowing as revenue per user declines. The company’s direct-to-consumer business also remains in the red, recording increasingly large losses.

Disney says the worst of these losses are behind it all and maintains that Disney+ will be profitable in 2024. And it just might be.

Given all the underlying trends, current and potential investors may want to consider the possibility that these profits may not be realized as easily as the company suggests.

Go in the wrong direction

The good news is that direct-to-consumer (or diffusion) companies generated $4.9 billion in revenue last quarter, up nearly 8% year-on-year. Counting the version of the service that includes India’s Hotstar, Disney+ now has 164.2 million subscribers, adding 12.1 million customers in the quarter ending in early October. ESPN+ and Hulu also added subscribers, bringing their collective numbers to 71.5 million users. The company now manages nearly 236 million unique streaming subscriptions, although a good number of those users pay for ESPN+, Disney+ and Hulu as a bundle.

The bad news is that all the content and effort required to retain those customers doesn’t come cheap. Last quarter’s operating loss for the media giant’s direct-to-consumer arm hit a record $1.47 billion. The chart below puts things – and the trend – into perspective.

Data source: Walt Disney Company. Table by author.

Bulls will point out that CEO Bob Chapek addressed the issue during Tuesday night’s fiscal fourth quarter earnings call, explaining, “We still expect Disney+ to achieve profitability in fiscal year 2024, so losses begin to decline in the first quarter of fiscal 2023. [currently underway].” And, as noted, that may be the shape of things to come.

However, there are three main headwinds that could prevent Walt Disney’s Disney+ from reaching that proverbial promised land of profitability, even with the imminent launch of an ad-supported version.

Easier said than done

The first of these headwinds is that, while modest, Disney’s total streaming revenue fell on a sequential basis last quarter despite continued subscriber growth.

Blame Disney+, mostly. Its average income by country (US and Canada) fell from $6.81 per month a year ago to just $6.10 per month last quarter and also fell slightly from the figure of 6.27. $ of the third fiscal quarter. The international version of Disney+, as well as the Hotstar offering, saw similar sequential declines in average monthly revenue per user, although these lower-cost services had less of an impact on Disney’s bottom line. It’s a subtle hint that the marketability of these services may be declining here and abroad, with that weakness only offset by price drops.

Unfortunately, Disney doesn’t plan to do more marketing to boost those numbers. He seeks to do less. During Tuesday’s earnings call, Chapek only told investors to look for “a realignment of our [direct-to-consumer] cost, including a significant rationalization of our marketing expenses. »

That move may prove wrong in light of the second stumbling block that could hamper Disney’s earnings projection for Disney+. It’s competition from all sides, including an old one that many assumed was a has-been.

Believe it or not, cable television is making a comeback. While the number of American consumers who stream regularly remains dominant at 75%, figures from a recent survey by Hub Entertainment Research indicate that the number of people watching live TV events has increased from 21% a year ago. one year to 23% this year, extending a slow and steady recovery streak. It’s not much, but it’s something to rely on at a time when market saturation is a serious concern. Another recent survey of American consumers by NPR and Ipsos suggests that 69% of them think there are too many streaming services, while 58% of that crowd admits to feeling overwhelmed by their number of streaming choices. streaming.

In the meantime, other streaming names are racking up accolades that Disney isn’t. Rival HBO Max has the most award-winning content in streaming, according to Ampere Analysis. netflix (NFLX 7.98%) now takes second place.

The thing is, future Disney+ customers can be harder and more expensive to find than past and present customers.

Finally, there is the great paradox. Disney may learn that the only way to keep adding at least a few streaming subscribers is to expand its streaming library by increasing its streaming content budget, compounding the problem of too many choices while exacerbating its content spending problem. . It’s a delicate balance, of course.

Keep your expectations under control

Never say never. Walt Disney’s streaming operation could well go from red to black by 2024, with measurable progress in that direction as early as the next quarterly report.

In retrospect, however, Walt Disney’s 2020 revamp was intended to prioritize its then booming streaming business, and tied too much of the stock’s value to that particular opportunity. Its direct-to-consumer operation generating less than $5 billion in revenue per quarter (only about a quarter of its total business anyway) is still consistently in the red to the tune of $1 billion or more per quarter, and it doesn’t. There’s still no convincing argument, a convincing explanation of how the company will close this gap in a meaningful way.

Until there are more answers than questions — and more certainty rather than less — about its successful streaming endeavors, this title will be tough to own. It could take several quarters or even years to achieve the kind of clarity that investors really need here.

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Important baseline for grain marketing decisions https://after-hours.org/important-baseline-for-grain-marketing-decisions/ Tue, 08 Nov 2022 16:36:25 +0000 https://after-hours.org/important-baseline-for-grain-marketing-decisions/ Any day, farmers and others can get grain price quotes from the CME Group, also known as the Chicago Board of Trade (CBOT), in “real time” on their computer or I-phone. . Almost as quickly, they can obtain current and future market prices for corn and soybeans from local grain elevators, ethanol plants, and processing […]]]>

Any day, farmers and others can get grain price quotes from the CME Group, also known as the Chicago Board of Trade (CBOT), in “real time” on their computer or I-phone. . Almost as quickly, they can obtain current and future market prices for corn and soybeans from local grain elevators, ethanol plants, and processing plants. The difference between the local grain price and the CBOT price is called the “base”. Understanding how the base works and the seasonal patterns associated with the base can be an important factor in making corn and soybean marketing decisions.

Specifically, the “basis” is the difference between the local grain price on a specific date and the CBOT price for the corresponding futures contract month. Local crop prices for corn and soybeans would generally match the December CBOT corn futures price and the November CBOT soybean futures price. By comparison, storing corn or soybeans after harvest and selling the grain via a futures contract in June or early July the following summer would have the base level corresponding to corn or soybean futures July CBOT.

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Gold stable as investors prepare for Fed policy meeting https://after-hours.org/gold-stable-as-investors-prepare-for-fed-policy-meeting/ Mon, 31 Oct 2022 03:31:00 +0000 https://after-hours.org/gold-stable-as-investors-prepare-for-fed-policy-meeting/ A selection of gold jewelery on display in a shop window in the Dubai Gold Souk in Deira, United Arab Emirates. Yui Mok | Pa pictures | Getty Images Gold prices were flat on Monday, having fallen about 1.3% in the previous session, as investors cautiously waited for the United States. Federal Reserve’s policy meeting […]]]>

A selection of gold jewelery on display in a shop window in the Dubai Gold Souk in Deira, United Arab Emirates.

Yui Mok | Pa pictures | Getty Images

Gold prices were flat on Monday, having fallen about 1.3% in the previous session, as investors cautiously waited for the United States. Federal Reserve’s policy meeting for benchmarks on its path to higher tariffs.

Fundamentals

Spot gold was little changed at $1,642.59 an ounce at 0046 GMT, while US gold futures rose 0.1% to $1,645.90.

The dollar index was stable, while the reference 10-year Treasury yields held above the 4% threshold.

U.S. consumer spending rose more than expected in September as underlying inflationary pressures continued to bubble, keeping the Fed on track to raise interest rates by three-quarters of a percentage point more at the November 1-2 meeting.

Rate hikes in the United States increase the opportunity cost of holding zero-return bullion, while boosting the dollar, against which it is valued.

The European Central Bank (ECB) could raise interest rates again by 75 basis points at its next policy meeting in December, ECB Governing Council member Klaas Knot said on Sunday.

The Diwali festival sparked new demand for physical gold in India last week, while consumers in China’s main hub were still subject to high premiums as supply remained low.

Assets of SPDR Gold Trustthe world’s largest gold-backed exchange-traded fund, fell 0.28% to 922.59 tonnes on Friday.

Cash fell 0.3% to $19.17 an ounce, platinum fell 0.2% to $942.60 and palladium rose 0.7% to $1,914.06.

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Thousands of households living in “hidden poverty” https://after-hours.org/thousands-of-households-living-in-hidden-poverty/ Thu, 27 Oct 2022 23:05:00 +0000 https://after-hours.org/thousands-of-households-living-in-hidden-poverty/ Nearly 70% of people experiencing material deprivation are not classified as being at risk of poverty, according to ESRI. This means that there is “hidden” poverty affecting thousands of households across the country. The ESRI’s latest report also shows lodging costs – whether rent or mortgage – are having a huge impact, with average private […]]]>

Nearly 70% of people experiencing material deprivation are not classified as being at risk of poverty, according to ESRI. This means that there is “hidden” poverty affecting thousands of households across the country.

The ESRI’s latest report also shows lodging costs – whether rent or mortgage – are having a huge impact, with average private rents now nearly doubling from 2012. However, income inequality is at a new all-time high.

According to the report: “We estimate that the at-risk-of-poverty rate in 2021 was 15.6% on a post-housing cost basis (i.e. 785,000 people) compared to 12.4% on a pre-housing cost basis (625,000 people).

However, there is a large group of individuals who report being materially deprived but who are not classified as being at risk of poverty.

We estimate that in 2021, 69% of the 695,000 materially deprived people – unable to afford two or more items from a list of 11 essentials – had incomes above the poverty line on a cost basis after lodging.

“Of these, almost half lived in a household where someone said they had a disability, most of them being less than €100 per week above the poverty line after taking into account the household size.”

working poor

The report, Poverty, income inequality and living standards in Ireland, identifies a large group of working poor.

“Despite being much less at risk of poverty, those living in households where someone of working age is engaged in paid work still represent more than a third of those living below the poverty line,” did he declare.

Among the “working poor” group, half live in rental accommodation, with single parents representing another significant number.

The research was funded by the Community Foundation for Ireland. Write for the Irish Examiner today, its Managing Director Denise Charlton said: “At the heart of cost of living crisis are large groups of people who are really struggling to make ends meet yet are not officially recognized as being at risk of living in poverty.

People with disabilities, tenants and single parents are among those most likely to be burdened by bills, but whose reality is not captured by official figures.

Ms Charlton also said it was “questionable” not to factor in rent or mortgage costs when measuring a family’s or individual’s disposable income.

Barra Roantree, an ESRI economist and author of the report, said the housing issue will require a sustained increase in supply, particularly social and rental housing, while Paul Redmond, an ESRI economist and co- author, pointed out the working poor were also disproportionately dependent on someone earning minimum wage, and raising the minimum wage would have “limited impact.”

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Australia’s Ampol expects record annual profit; stocks fall after quarterly misfire https://after-hours.org/australias-ampol-expects-record-annual-profit-stocks-fall-after-quarterly-misfire/ Tue, 25 Oct 2022 00:09:00 +0000 https://after-hours.org/australias-ampol-expects-record-annual-profit-stocks-fall-after-quarterly-misfire/ Oct 25 (Reuters) – Australia’s Ampol Ltd (ALD.AX) is forecasting record full-year profits and posted a tripling of its quarterly earnings on Tuesday as strong demand for refined products pushed up refining margins at the nation’s largest fuel supplier. Its shares, however, fell more than 9% as its third-quarter net profit beat Jefferies’ estimate, as […]]]>

Oct 25 (Reuters) – Australia’s Ampol Ltd (ALD.AX) is forecasting record full-year profits and posted a tripling of its quarterly earnings on Tuesday as strong demand for refined products pushed up refining margins at the nation’s largest fuel supplier.

Its shares, however, fell more than 9% as its third-quarter net profit beat Jefferies’ estimate, as the company warned of further market volatility.

Tighter global oil supplies and reduced refining capacity have boosted demand for fuel, driving up prices for refined products in recent months.

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As fuel demand in Australia and New Zealand continued to recover, “volatility continued to be a feature of global markets as competing forces from fears of a weaker economic outlook, mobility and geopolitical tensions continue to influence market sentiment,” the chief executive said. Officer Matt Halliday said.

“The market volatility experienced since the beginning of the year is expected to continue in the period ahead.”

Ampol shares fell 9.3% to AU$28.36 as of 2330 GMT, underperforming the broader market (.AXJO) which increased by 0.6%.

The company’s quarterly net profit on a replacement cost basis, which excludes the impact of changes in inventory and exchange rates, was A$102.5 million ($64.70 million), significantly missing Jefferies’ estimate of A$199 million.

Ampol’s Lytton Refinery earned A$143.8 million for the third quarter on a replacement cost basis, a more than six-fold increase from a year earlier.

The refining margin at the Queensland refinery was $15.46 a barrel, significantly higher than $6.76 a barrel a year ago, but lower than $32.96 a barrel in the previous quarter.

Ampol also recorded a 20% jump in its quarterly sales volume for Australia to the highest level since the start of the pandemic, at 3.66 billion litres.

($1 = 1.5845 Australian dollars)

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Reporting by Jaskiran Singh and Echha Jain in Bengaluru; Editing by Devika Syamnath and Rashmi Aich

Our standards: The Thomson Reuters Trust Principles.

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Summary of the webinar on the development of green hydrogen following the IRA https://after-hours.org/summary-of-the-webinar-on-the-development-of-green-hydrogen-following-the-ira/ Fri, 21 Oct 2022 23:44:31 +0000 https://after-hours.org/summary-of-the-webinar-on-the-development-of-green-hydrogen-following-the-ira/ Green hydrogen is a developing industry in the United States. The Inflation Reduction Act of 2022 (IRA), which includes $369 billion in energy and climate spending, even introduces a clean hydrogen production tax (PTC) credit and expands the credit for existing investment tax (ITC) to apply to hydrogen projects. In the latest webinar in our […]]]>

Green hydrogen is a developing industry in the United States. The Inflation Reduction Act of 2022 (IRA), which includes $369 billion in energy and climate spending, even introduces a clean hydrogen production tax (PTC) credit and expands the credit for existing investment tax (ITC) to apply to hydrogen projects.

In the latest webinar in our Navigating the New Energy Landscape series, partners Heather Cooper and Christopher Gladbach were joined by Ivana Jemelkova from FTI Consulting, Ulrich Reinhard from Air Liquide and Tommy Gerrity from Ørsted for a discussion on the future of development of green hydrogen following the Passage of the IRA.

Below are the main takeaways from the discussion:

1. The IRA introduces a new PTC for hydrogen produced after 2022 for a period of 10 years from the date of commissioning of the project concerned. The credit is calculated as a percentage of $0.60/kg based on the resulting life cycle greenhouse gas emission rate and can be multiplied by five to satisfy the rules for salary and apprenticeship (slightly modified from the standard salary and apprenticeship tax credit). rules). To qualify for this PTC, the hydrogen must be produced in the United States in the ordinary course of trade or business for sale or use, and the production must be verified by an unrelated person.

2. The IRA also introduces a new ITC equal to the energy percentage of the cost base of each specified clean hydrogen production facility brought into service during a tax year based on the emissions rate of greenhouse gases resulting from the life cycle. Credit can also be multiplied by five for meeting salary and apprenticeship rules and is eligible for credit adders for home content and energy community bonuses. To be eligible for this ITC, construction of the specified clean hydrogen production facility in question must begin before 2025.

3. Although hydrogen tax incentives are new, the hydrogen industry has been around for more than a century. Yet it is only recently that hydrogen generation technologies have been seen as a clean energy solution. As such, there has been a visible increase in the delivery of hydrogen via (1) renewable energy sources, such as wind and solar (called green hydrogen), and (2) other energy sources, such as natural gas, backed by carbon capture and storage technology (called blue hydrogen). This trend will be further reinforced by the IRA, which strives to minimize the carbon impact throughout the life cycle of hydrogen production from various energy sources and technologies.

4. With the United States being the second largest consumer in the world, industry experts believe that there will be no shortage of hydrogen demand and hydrogen-related technologies in the near future, especially in the near future. light of the promulgation of the IRA. Yet, despite the growing opportunities associated with hydrogen (g., its use to power large utility vehicles with minimal carbon emissions), there are still some challenges to meet this ever-increasing need. In particular, the lack of physical infrastructure, such as storage terminals and transmission pipelines, coupled with uncertainties regarding the affordability of large-scale hydrogen projects, may impose certain obstacles.

5. So what’s the next step? Industry stakeholders collaborate and form coalitions to create roadmaps for hydrogen market development and success. These strategies include co-locating hydrogen generation technologies with other power generation facilities and decarbonizing existing hydrogen generation operations to capitalize on tax credits and funded hydrogen-related programs. by the US Department of Energy. Similarly, it is expected that there will be an increase in bank financing and possibly tax equity financing as the industry continues to grow and hydrogen projects become slightly more commoditized. Regardless of the challenges presented by today’s market, it is clear that the hydrogen industry is undergoing significant transformation and growth as it continues to forge its way into the clean energy space.

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Natural gas and oil industry demand equal incentives for blue and green hydrogen https://after-hours.org/natural-gas-and-oil-industry-demand-equal-incentives-for-blue-and-green-hydrogen/ Sun, 16 Oct 2022 16:24:02 +0000 https://after-hours.org/natural-gas-and-oil-industry-demand-equal-incentives-for-blue-and-green-hydrogen/ The natural gas and oil industry is calling on policymakers to treat all forms of low-carbon hydrogen equally when handing out incentives to maximize greenhouse gas emission reductions ( GHG) that contribute to global warming. Namely, so-called “blue” hydrogen, separated from natural gas in combination with carbon capture and sequestration (CCS), should not be at […]]]>

The natural gas and oil industry is calling on policymakers to treat all forms of low-carbon hydrogen equally when handing out incentives to maximize greenhouse gas emission reductions ( GHG) that contribute to global warming.

Namely, so-called “blue” hydrogen, separated from natural gas in combination with carbon capture and sequestration (CCS), should not be at a disadvantage compared to “green” hydrogen, according to the American Petroleum Institute. (APIs). The green label applies to hydrogen separated from water by electrolysis powered by carbon-free electricity.

A new study commissioned by the energy industry lobby group has found that blue hydrogen could eliminate an additional 180 million metric tons/year (mmty) of GHG emissions on average through 2050 if incentives were applied evenly on a per tonne basis of emissions reduced.

“Our industry is committed to advancing innovative technologies such as low-carbon hydrogen, which are critical to reducing economy-wide GHG emissions,” said Aaron Padilla, vice-president Chairman of API Corporate Policy. “By working with policymakers to encourage all forms of low-carbon hydrogen and accelerate hydrogen production through programs under the bipartisan Infrastructure Act, we can reduce emissions while ensuring American consumers with access to the reliable energy they need.”

The law, which took effect in late 2021, allocated $8 billion for a program to develop regional clean hydrogen centers across the United States; $1 billion for a clean hydrogen electrolysis program to reduce the cost of producing green hydrogen; and $500 million for clean hydrogen manufacturing and recycling initiatives to support equipment manufacturing and supply chains.

[Trying to understand where the price of natural gas at the Henry Hub is headed? Learn more about what to watch when analyzing the North American natural gas market with this episode of the Hub & Flow podcast. Listen now.]

The Inflation Reduction Act 2022 (IRA) meanwhile created a Production Tax Credit (PTC) of up to $3/kg for low carbon hydrogen. For a hydrogen producer to claim the full credit, the emissions intensity of the production must be less than 0.45 kilograms (kg) of carbon dioxide equivalent/kg of hydrogen. However, if the emission intensity is between 0.45 and 1.5 kg, the percentage of the credit that can be claimed drops by two-thirds to 33.4%.

This creates “a disincentive to really research and push for natural gas and hydrogen produced by CCS, because you know just by the chemical and physical properties, getting to that 0.45 is going to be extremely difficult,” said one. industry lobbyist at NGI. For green hydrogen, “this one is quite simple…it’s a lot easier to hit that 0.45 threshold.”

The IRA expands and extends the Internal Revenue Service Section 45Q tax credit for CCS. However, a producer of blue hydrogen cannot “stack” the 45Q credit on the clean hydrogen PTC, which creates an additional challenge.

Companies can, however, stack IRA renewables and clean hydrogen PTCs, giving green hydrogen another head start.

IRA charges on fugitive methane emissions could also increase costs for blue hydrogen producers, the lobbyist noted.

How big will the hydrogen market be?

The Department of Energy (DOE) has set a goal for the United States to produce 50 mmty of clean hydrogen by 2050.

The API-backed study by consultancy ICF found that “when every ton of emissions reductions are incentivized in the same way, the US hydrogen market could be three times larger by by 2050 than when emission reductions are treated unequally (i.e., [the] hydrogen market could represent 15% of total final energy consumption in 2050 compared to 4% of total final energy consumption in 2050).

Further, “the greater hydrogen economy resulting from uniform incentives could avoid an additional 83 million metric tons of US GHG emissions on average per year through 2050 than if incentives were implemented unevenly.” “said the API. “Activating incentives for all hydrogen production is equivalent to eliminating emissions from more than 38 million cars per year, according to API analysis.”

The group added that uniform incentives could reduce the cost of mitigating a metric ton of carbon by an average of 12% per year, saving more than $450 billion through 2050.

Massive infrastructure construction is needed for hydrogen to contribute significantly to decarbonization, the researchers noted.

“Capital investment in hydrogen infrastructure projects could exceed $400 billion by 2050 and include construction of 67,000 miles of hydrogen transport pipeline, 500,000 miles of customer laterals and pipelines/services from local distribution companies, and 560 trillion Btu of underground hydrogen storage capacity” according to API.

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Electric vehicles are driving the chemical industry – Here’s why https://after-hours.org/electric-vehicles-are-driving-the-chemical-industry-heres-why/ Fri, 14 Oct 2022 06:06:18 +0000 https://after-hours.org/electric-vehicles-are-driving-the-chemical-industry-heres-why/ Welcome to Thomas Insights – every day we post the latest news and analysis to keep our readers up to date with what’s happening in the industry. Sign up here to get the day’s top stories straight to your inbox. Electric vehicles (EV) represent less than 1% of vehicles on American roads, but their numbers […]]]>

Welcome to Thomas Insights – every day we post the latest news and analysis to keep our readers up to date with what’s happening in the industry. Sign up here to get the day’s top stories straight to your inbox.

Electric vehicles (EV) represent less than 1% of vehicles on American roads, but their numbers continue to increase. In 2021, the EV market broke records with an estimate 607,600 units sold in the United States, accounting for 3.4% of new car sales. By 2030, sales in the United States are expected to reach approximately 29.5% of all new car sales.

Globally, electric vehicles are expected to represent more than 55% of new vehicle production by 2030, i.e. 47 million units.

What is holding back the adoption of electric vehicles?

These projections spell good news for the electric vehicle market, but two key factors are holding back the widespread adoption of electric vehicles.

1. Cost

Cost is probably the main barrier to the adoption of electric vehicles. The average cost of an EV is $67,000 from June 2022, which is a significantly higher price than the average gasoline car. Although advances in battery technology and a focus on supply chain efficiency have made batteries cheaper and electric vehicles more accessible to a wider audience, this remains a huge challenge for automakers. automobiles.

2. Availability

The desire to live more sustainably, coupled with concerns about ever-rising fuel prices, is certainly driving consumer enthusiasm for electric vehicles. But these vehicles are still relatively rare, and automakers are struggling to keep up with demand and stay competitive due to various supply chain challenges.

For example, few vendors are capable of manufacturing semiconductors, with only one company in Taiwan having close to 60% market share. Automakers are also facing a shortage of batteries. Current global cell production is estimated to be less than 10% of what will be needed in a decade.

How are electric vehicles boosting the chemical industry?

Some of the challenges facing automakers present huge opportunities for OEMs in the chemical industry. These companies can improve the energy efficiency of electric vehicles through wide bandgap electronics, ensure the safety of high-voltage systems, boost competitiveness and reduce battery costs.

Broad bandgap electronics

At present, a BEV powertrain, consisting of a battery, an inverter and an electric motor, costs about $10,000 — far more than the cost of their equivalent parts in a combustion engine vehicle.

By using the right thermal and insulating materials in a vehicle’s powertrain, OEMs in the chemical industry could lead the way in lowering vehicle system costs. For example, using silicon carbide (SiC) in the inverter instead of silicon oxide (Si) could result in savings of around $200 per vehicle. This is thanks to the energy efficiency of SiC and its optimal cooling profile, which reduces battery and thermal management costs.

Security

A higher voltage system (more than 800 volts) equates to a more electrically efficient EV. To maintain system safety, some chemical companies are investing in more reliable connection materials and better insulation.

Battery

The chemical industry has long focused on improving battery safety and efficiency. But the most innovative companies are exploring how to design plastics, silicones, mica and other thermal materials to reduce vehicle system costs.

How can chemical companies stand out?

To capitalize on the growth opportunities presented by the electric vehicle industry, chemical companies should do the following:

  • Take a system value-based approach – Automotive chemicals are generally considered on a unit cost basis. But forward-thinking OEMs in the chemical industry will take a value-based approach to systems.
  • Identify areas with high added value – Companies in the chemical industry must be ready and willing to adapt their business models and product portfolios as the materials and automotive markets evolve. As the market for electric vehicles grows, the demand for certain materials will change. For example, electric vehicles require fewer super-engineered plastics and do not require engine-related chemicals such as emission catalysts, fuel additives and lubricants.
  • Capacity development – Organizations must also consider the capabilities they need now and in the future. It makes sense to assign a specific team to the development of products for the electric vehicle market.
  • Partnerships with car manufacturers – Several players in the electric vehicle industry are investing in partnerships with chemical companies. We saw joint ventures between Tesla and Panasonic, Volkswagen and Northvolt, as well as GM and LG Chem. Chemical companies should explore these opportunities and seek to expand their reach across regions. New marketing and sales strategies may be needed.
  • Focus on interiors – A good way for EV manufacturers to differentiate themselves is to create uniquely designed interiors. More than 70% of executives believe custom interiors are important. Chemical companies should exploit this opportunity.

If chemical industry organizations played their cards right, they could enjoy a market share of more than $20 billion by 2030.

Image Credit: buffaloboy/Shutterstock.com

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