The AI Hunger Games: Balancing Power Demand and Green Ambitions
Good Evening,
Global power grids are feeling the pressure as AI demand surges, while a race for green subsidies heats up between the U.S., Europe, and China. Iran’s rapidly increasing uranium enrichment has caught the IAEA’s attention, raising new security concerns. In markets, Forum Energy announced a $75M share buyback, and rare earth metals prices spiked 8% amid rising geopolitical tensions with China. Meanwhile, major deals in energy and defense are reshaping industries, from BP’s offshore wind partnership to Palantir’s defense-focused AI collaboration.
Let's dive in.
Closing Bell
Headline Roundup
AI strains global power grids as energy demand spikes (OP).
US LNG export faces uncertainties due to litigation, Biden's permit pause, and contractor issues (OP).
Europe, US, China compete for sustainable investment; sparks global green subsidy race (FT).
Iran's uranium enrichment rate jumps from 4.7kg to 34kg monthly, alarming IAEA (OP)
Forum Energy Technologies launches $75M share buyback to boost stock value (SA).
Deal Flow
M&A/Investments
Shell and Equinor’s UK venture reshapes Europe's energy landscape, emphasizing renewable push amidst fossil decline. (SA)
BP and JERA form $5.8B offshore wind JV, realigning BP’s focus on oil and gas.(FT)
Rheinmetall partners with Auterion for advanced UAVs. Boosts defense tech, enhances European security. (FT)
VC
Palantir and Anduril form a partnership to strengthen AI in defense, netting major Pentagon contracts. (DS)
Congress nudges FAA to hasten launch and reentry licenses, spurring innovation pressures on Varda (SN)
Sector Signals
Aerospace and Defense
Pentagon's $50M APFIT grants push emerging tech past R&D 'valley of death'. Crucial for sector innovation.
Globalstar and Parsons launched a satellite service using low-Earth orbit tech for the defense sector. This partnership enhances military communication capabilities, showcasing the critical role of private-public collaborations in modern defense strategy.
U.S. Space Force alarmed by heightened Chinese space activities threatening security and altering strategic norms.
USS George Washington, Japan’s lone forward-deployed carrier, now flexes fifth-gen F-35C muscles. Austin's visit sharpens U.S.-China tension in Indo-Pacific defense dynamics.
Space Development Agency spotlights critical supply chain woes, emphasizing U.S. flight software for satellite security.
Manufacturing
Ballard Power's 8 MW fuel cells power up California rail, sparking green momentum in transport.
Commodities
Brent crude sticks at $71, but 2025 might see $50-$60 dips, says industry. Barclays challenges this gloomy supply belief, predicting tightened supply-demand, hinting optimism.
Rare earth metals prices climbed 8% on geopolitical tensions with China, stressing tech sector supply chains worldwide.
Contract Watch
Department of Energy contracts Hunting Ingalls (HII) for $36.4M for nuclear facility maintenance
FAA looks to Parson (PSN) to support managed services for a contract valued at $3.9M