Europe’s Key Rivers Fall to Critical Levels, Aggravating Energy Crunch
By Georgi Kantchev and Yusuf Khan, Aug. 11, 2022, WSJ

Scorching temperatures have drained some of Europe’s main rivers, threatening to disrupt vital economic thoroughfares and exacerbate the continent’s energy shortage.

In Germany, the Rhine is at critically low levels, hampering deliveries of coal and industrial goods, and is forecast to potentially become impassable for most barges at a key stretch by the end of the week.

In France, the Rhône and Garonne have been too warm to cool nuclear reactors, leading to lower output. In Eastern Europe, Danube levels are dwindling, impeding a key Ukrainian grain route.

While Europe’s rivers have increasingly suffered dry spells in recent years—which scientists say will become more common because of the warming climate—this year’s crisis comes as the continent struggles with reduced gas deliveries from Russia.
The German government has decided to restart coal plants to alleviate the crunch, a task now complicated by river disruptions.

Shipping costs, meanwhile, have skyrocketed, fueling already high inflation, since rivers are key arteries for transporting everything from grains to chemicals to oil. And low water levels in reservoirs are curtailing hydropower generation, adding to the
strain on power supplies.

“This is clearly making Europe’s energy problems worse,” said Fabian Skarboe Rønningen, senior analyst at consulting firm Rystad Energy. “Low river levels and warm water temperatures affect both German coal and French nuclear power, two of the
largest sources of supply in Europe.”

In Eastern Europe, shipping via parts of the Danube, which drains into the Black Sea, has become largely uneconomical since vessels can only operate at around a third of their capacity, said Bulgarian captain Alexander Kamenov, whose ship, the Adora, is
currently stuck at port.

“I look at it from the port now,” Mr. Kamenov said. Some islands in the middle of the river are now accessible by foot, he said.

Desiccated rivers are an example of what analysts and industry players say is the growing role played by extreme weather in fueling commodity price moves. Last year, a freeze in Texas caused chaos in U.S. energy markets, while heat waves in India this
year have scorched wheat crops.

In Europe, rivers link factories and cities, providing efficient shipping routes. The volume of freight shipped via inland waterways in Germany accounted for 7.1% of total freight transport in 2020, according to consulting firm Capital Economics.

On Wednesday, the water levels of the Rhine, which runs 760 miles from the Swiss Alps via Germany’s industrial heartland to the North Sea, fell to 45 centimeters in the key choke point of Kaub, near Frankfurt—roughly 50 centimeters lower than usual
levels at this time of year. Levels are expected to drop to 34 centimeters by the end of this week, making it virtually impossible for most diesel barges to pass and hovering close to the record low of 25 centimeters in 2018.

European companies in the energy, chemicals and other industries use it as a shipping lane as well as a water source for production and cooling.

With Germany relying more on coal, much of the needed supplies are transported from the Dutch ports of Amsterdam and Rotterdam, as well as Belgium’s Antwerp, by barge. The coal reserves at most power plant sites are currently only sufficient for about
one week of full-load operation, according to Marc Schattenberg, senior economist at Deutsche Bank Research. Last year, the country imported nearly two thirds of its coal via the river.

Shipper DTG Deutsche Transport Genossenschaft eG said its vessels were currently operating at as low as 25% of capacity. “Customers now need to charter up to four ships to transport the same amount of goods as before,” said DTG manager Roberto
Spranzi.

The disruption, however, comes at a time when fewer ships are available, with demand rising both because of coal’s resurgence but also because many European ships are currently in the Black Sea region to haul Ukrainian grain, he said.

German energy firm Uniper SE last week warned of “irregular operation” at one of its key coal-fired power plants because of a lack of deliveries along the parched Rhine. Energy company EnBW Energie Baden-Württemberg AG said that its coal loadings
had been reduced because of low water levels.

Freight rates from the mouth of the Rhine in the Netherlands to Basel in Switzerland reached 240.32 euros, equivalent to $248, a metric ton last week, more than doubling from €111.92 a month ago, according to Lars van Wageningen, manager of operations
at commodity market-research firm Insights Global. Quotes a year ago were just €11.28 a metric ton.

According to Capital Economics, the Rhine’s troubles add to pressures on German industry and make a recession this year more likely.

Chemicals giant BASF SE, which supplies producers of everything from cars to toothpaste, said that some types of ships can no longer be used and will stop sailing given the predicted Rhine water levels. All other ships will sail with reduced loads. BASF
said that while production currently isn’t affected by the low water levels, it might have to cut output at some plants over the next few weeks.

The company said it had implemented an early warning system for low water levels and is also chartering and developing ships suitable for lower water levels.

In France, nuclear-power provider Électricité de France SA reduced generation at a clutch of plants because warm water in the Rhône and Garonne rivers made it challenging to cool them while meeting environmental rules. Authorities in recent days have
given the company a waiver allowing it to run the plants at a faster pace. But the heat wave is exacerbating pressure on the country’s nuclear industry, which is grappling with corrosion problems at several reactors.

Swiss energy company Axpo Group has had to reduce output at Beznau nuclear-power plant near the German border, which is river-water cooled, due to high water temperatures on the Aare, a tributary of the Rhine. Low water levels, meanwhile, have affected
the company’s hydropower production, with electricity production from its power plants that harvest river water around 25% below the long-term average last month.

Shallow Danube waters have disrupted Ukrainian grain transport. After the start of the war, state-owned Ukrainian Danube Shipping Co. used most of its fleet to transport grains from the Ukrainian city of Izmail on the border with Romania via the Danube
to the Romanian port of Constanta, a conduit for Ukrainian grain amid Russia’s blockades.

Dmytro Moskalenko, the company’s general director, said that dwindling water levels have complicated the task and the barges have to operate at lower capacity.

“The situation is unprecedented, it’s the hardest year on the river,” he said.

In the U.K., the source of the Thames has dried up due to a lack of rainfall, according to the Rivers Trust, an organization of river conservation experts. Thames Water Utilities Ltd., which serves 15 million people, is preparing to add water usage
restrictions in London and surrounding areas.

https://www.wsj.com/articles/europes-key-rivers-fall-to-critical-levels-aggravating-energy-crunch-11660216554

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On Wednesday, August 17, 2022 at 1:22:46 AM UTC+8, David P. wrote:

Europe’s Key Rivers Fall to Critical Levels, Aggravating Energy Crunch
By Georgi Kantchev and Yusuf Khan, Aug. 11, 2022, WSJ

Scorching temperatures have drained some of Europe’s main rivers, threatening to disrupt vital economic thoroughfares and exacerbate the continent’s energy shortage.

In Germany, the Rhine is at critically low levels, hampering deliveries of coal and industrial goods, and is forecast to potentially become impassable for most barges at a key stretch by the end of the week.

In France, the Rhône and Garonne have been too warm to cool nuclear reactors, leading to lower output. In Eastern Europe, Danube levels are dwindling, impeding a key Ukrainian grain route.

While Europe’s rivers have increasingly suffered dry spells in recent years—which scientists say will become more common because of the warming climate—this year’s crisis comes as the continent struggles with reduced gas deliveries from Russia.

The German government has decided to restart coal plants to alleviate the crunch, a task now complicated by river disruptions.

Shipping costs, meanwhile, have skyrocketed, fueling already high inflation, since rivers are key arteries for transporting everything from grains to chemicals to oil. And low water levels in reservoirs are curtailing hydropower generation, adding to

the strain on power supplies.

“This is clearly making Europe’s energy problems worse,” said Fabian Skarboe Rønningen, senior analyst at consulting firm Rystad Energy. “Low river levels and warm water temperatures affect both German coal and French nuclear power, two of the

largest sources of supply in Europe.”

In Eastern Europe, shipping via parts of the Danube, which drains into the Black Sea, has become largely uneconomical since vessels can only operate at around a third of their capacity, said Bulgarian captain Alexander Kamenov, whose ship, the Adora,

is currently stuck at port.

“I look at it from the port now,” Mr. Kamenov said. Some islands in the middle of the river are now accessible by foot, he said.

Desiccated rivers are an example of what analysts and industry players say is the growing role played by extreme weather in fueling commodity price moves. Last year, a freeze in Texas caused chaos in U.S. energy markets, while heat waves in India this

year have scorched wheat crops.

In Europe, rivers link factories and cities, providing efficient shipping routes. The volume of freight shipped via inland waterways in Germany accounted for 7.1% of total freight transport in 2020, according to consulting firm Capital Economics.

On Wednesday, the water levels of the Rhine, which runs 760 miles from the Swiss Alps via Germany’s industrial heartland to the North Sea, fell to 45 centimeters in the key choke point of Kaub, near Frankfurt—roughly 50 centimeters lower than usual

levels at this time of year. Levels are expected to drop to 34 centimeters by the end of this week, making it virtually impossible for most diesel barges to pass and hovering close to the record low of 25 centimeters in 2018.

European companies in the energy, chemicals and other industries use it as a shipping lane as well as a water source for production and cooling.

With Germany relying more on coal, much of the needed supplies are transported from the Dutch ports of Amsterdam and Rotterdam, as well as Belgium’s Antwerp, by barge. The coal reserves at most power plant sites are currently only sufficient for

about one week of full-load operation, according to Marc Schattenberg, senior economist at Deutsche Bank Research. Last year, the country imported nearly two thirds of its coal via the river.

Shipper DTG Deutsche Transport Genossenschaft eG said its vessels were currently operating at as low as 25% of capacity. “Customers now need to charter up to four ships to transport the same amount of goods as before,” said DTG manager Roberto

Spranzi.

The disruption, however, comes at a time when fewer ships are available, with demand rising both because of coal’s resurgence but also because many European ships are currently in the Black Sea region to haul Ukrainian grain, he said.

German energy firm Uniper SE last week warned of “irregular operation” at one of its key coal-fired power plants because of a lack of deliveries along the parched Rhine. Energy company EnBW Energie Baden-Württemberg AG said that its coal loadings

had been reduced because of low water levels.

Freight rates from the mouth of the Rhine in the Netherlands to Basel in Switzerland reached 240.32 euros, equivalent to $248, a metric ton last week, more than doubling from €111.92 a month ago, according to Lars van Wageningen, manager of

operations at commodity market-research firm Insights Global. Quotes a year ago were just €11.28 a metric ton.

According to Capital Economics, the Rhine’s troubles add to pressures on German industry and make a recession this year more likely.

Chemicals giant BASF SE, which supplies producers of everything from cars to toothpaste, said that some types of ships can no longer be used and will stop sailing given the predicted Rhine water levels. All other ships will sail with reduced loads.

BASF said that while production currently isn’t affected by the low water levels, it might have to cut output at some plants over the next few weeks.

The company said it had implemented an early warning system for low water levels and is also chartering and developing ships suitable for lower water levels.

In France, nuclear-power provider Électricité de France SA reduced generation at a clutch of plants because warm water in the Rhône and Garonne rivers made it challenging to cool them while meeting environmental rules. Authorities in recent days

have given the company a waiver allowing it to run the plants at a faster pace. But the heat wave is exacerbating pressure on the country’s nuclear industry, which is grappling with corrosion problems at several reactors.

Swiss energy company Axpo Group has had to reduce output at Beznau nuclear-power plant near the German border, which is river-water cooled, due to high water temperatures on the Aare, a tributary of the Rhine. Low water levels, meanwhile, have affected

the company’s hydropower production, with electricity production from its power plants that harvest river water around 25% below the long-term average last month.

Shallow Danube waters have disrupted Ukrainian grain transport. After the start of the war, state-owned Ukrainian Danube Shipping Co. used most of its fleet to transport grains from the Ukrainian city of Izmail on the border with Romania via the Danube

to the Romanian port of Constanta, a conduit for Ukrainian grain amid Russia’s blockades.

Dmytro Moskalenko, the company’s general director, said that dwindling water levels have complicated the task and the barges have to operate at lower capacity.

“The situation is unprecedented, it’s the hardest year on the river,” he said.

In the U.K., the source of the Thames has dried up due to a lack of rainfall, according to the Rivers Trust, an organization of river conservation experts. Thames Water Utilities Ltd., which serves 15 million people, is preparing to add water usage

restrictions in London and surrounding areas.

https://www.wsj.com/articles/europes-key-rivers-fall-to-critical-levels-aggravating-energy-crunch-11660216554

A few months ago, due to melting snows after winter, countries in the north were complaining of too much flood water and rivers swollen of massive flooding. Now after few months later, in the summer, too little water left on the ground and reservoir
became dry and empty. Some lands became dry and people can even walk on them. But all these were caused by the usual four seasonal changes and not climate changes by erosion and leakages per se.

What those passive Western leaders can do are not to keep talking about excessive carbon dioxide released into the air, but to take action in building concrete reservoirs, dams, canals and storm drains, merging and embankment of rivers into reservoirs
and building huge storage tanks like those oil storage tanks and ship tankers for water reserves and tankers to shore up waters from running off to the sea, will reduce from rising sea level as well.





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