My name is Caroline Doyle, and I am an associate editor at Horizon Engage. This week, I am writing about power struggles from Petrobras’s new CEO (its 10th in as many years!), North Africa-Europe competition over green hydrogen and pesky power outages in Cote d’Ivoire. Our Quote of the Week comes from Argentina’s brand new cabinet chief, Guillermo Francos, who had something interesting to say about President Milei. Read more below!
Brazil’s NOC Gets a New CEO
Petrobras, Brazil’s national oil company, has a new CEO for the tenth time in as many years. President Lula appointed Magda Chambriard and the board confirmed her on 24 May. The direction and duration of Chambriard’s mandate are subject to Lula’s whims — exactly what led to the demise of her predecessor, Jean Paul Prates, who repeatedly butted heads with Lula’s inner circle. We expect Chambriard to work closely with Lula’s chief of staff, Rui Costa, and Energy Minister Alexandre Silveria. She will likely focus on critical legacy projects ahead of the October municipal elections, though it will be challenging to make significant progress in the short term. Her ability to do so may determine her success in Petrobras’s top post.
Green Hydrogen: EU vs. North Africa
Recently, the race to join the EU’s 2022 REPowerEU got even more competitive. The plan aims to create 20 MT of low-carbon hydrogen production, split equally between domestic and international suppliers. Most North African countries have created hydrogen roadmaps and sought FDI to win a promising income stream. However, at the end of April, the (European) winners of the European Hydrogen Bank’s auction to kickstart the market proposed prices much lower than expected. Furthermore, recent studies have cast doubt on projected European demand. If demand is low and domestic producers can churn out cheap hydrogen, North Africa is not as well-positioned as previously thought. A second auction later this year will provide further insights.
Problematic Power Outages in Cote d’Ivoire
Cote d’Ivoire’s electricity supply has dropped 22%, leading to nationwide blackouts. This follows unplanned outages from technical issues at two of the country’s largest power plants, which account for around 75% of the national power supply. While rationing plans will allow businesses to plan ahead, the outages will impact in-country operations and knock the national budget as electricity exports fall. Luckily for President Ouattara, power problems will likely not have much of an impact on his soaring popularity or the likelihood of winning a fourth term (though the Constitution limits presidential terms to two). Though the outages can cause operational difficulties, those developing gas-to-power initiatives may find a unique opportunity amid the blackouts.
Quote of the Week
In a significant move, Argentine President Javier Milei replaced (now former) Cabinet Chief Nicolas Posse with Interior Minister Guillermo Francos. Francos will now oversee much of the administration’s political negotiations. In a candid response to why he was given the job, Francos said: “The president finds it difficult to understand Argentine politics.” That much is clear — Milei has yet to pass a single piece of legislation since his inauguration in December. Hopefully, Francos can decode his government for him.
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