Tuesday, July 1, 2025

"UK Government Rejects £25 Billion Xlinks Morocco-UK Renewable Energy Project"

These deals all sound so grand when they are being pitched but end up being exposed as simply grandiose. 

From Morocco World News, June 26:

In mid-May, Xlinks, the British company behind the ambitious project to connect Morocco and the UK via undersea power cables, temporarily paused its Development Consent Order (DCO) examination process.

Marrakech – The British government has decided to reject the major renewable energy project that would have imported solar and wind power from Morocco to the United Kingdom.

According to Sky News, Energy Security and Net Zero Secretary Ed Miliband has chosen not to proceed with formal negotiations with Xlinks, a privately owned company seeking a 25-year price guarantee agreement.

The £25 billion project, chaired by former Tesco chief executive Sir Dave Lewis, promised to deliver enough renewable energy to meet nearly 10% of the UK’s electricity demand.

The decision comes as a surprise to energy industry executives, as Xlinks had pledged to provide large quantities of power at approximately half the price of electricity generated by new nuclear power stations.

A Whitehall insider indicated that the government’s decision was partly motivated by a desire to focus on “homegrown” energy supplies....

....MUCH MORE 

Previously, December 2023:
3,800-km Cable: "Xlinks hopes to send solar and wind power from Morocco to Britain by 2029"

That's a long cable.

And it sounds like a cross between Desertec:

From our Jan. 31, 2011 post "Say, About That Plan to Supply 15% of Europe's Electricity from North Africa.... (Look for Desertec to go with Natural Gas instead)":

Some commentators thought it was lunacy to put Europe's power supply in the hands of Tunisia, Algeria, Libya and Morocco.
The French in their haughty way believe they can control the governments of the Maghreb. Events of the last two weeks should give them and the German companies backing the plan reason for concern.

If you've forgotten, Desertec was a planned $555 BILLION plan to use concentrating solar thermal to produce electricity in the North African desert and ship it to Southern Europe. The World Bank was on board, Siemens, E.on, Deutsche Bank, Munich Re and a host of other Germans were ready to make money and then, darn, revolution.
Here's a bit of insight from Solar Novus:

Revolution in Tunisia May Threaten Dii Goals

—Last seen in 2015's "Desertec's Plan for Saharan Sun to Power Europe Burns Out". 

And the Australia to Singapore Sun Cable. From our final post on the project, January 2023:

Solar: The Plan For The World's Longest Extension Cord (Australia to Singapore) Is Dead

But who knows, maybe this one goes through. From the electrical engineering mavens at IEEE Spectrum, November 30: 

At first glance, North Devon, an expanse of rolling hills and gentle seaside cliffs deep in the English countryside, may not seem like a place to find the future.

But if a company called Xlinks can realize its plan, North Devon will be a conduit for one of the most ambitious renewable-energy dreams to date. By 2029, Xlinks hopes, the North Devon coastline will host the landing site for two electric cables providing as much as 8 percent of the United Kingdom’s electricity needs. At the other end of those cables, there will be a vast complex of yet-unbuilt solar panels and wind turbines in the Moroccan desert thousands of miles away.

This is the goal of Xlinks’s Morocco-U.K. Power Project. If successful, the project may be a model for an entirely new global grid in which long-distance cables carry clean electricity between continents. But Xlinks and its backers must overcome a significant gauntlet of political, logistical, and financial hurdles before their their own project can switch on, let alone inspire others.

“It seems to me that the level of seriousness of these projects is certainly increasing,” says Will Todman, deputy director and senior fellow in the Middle East Program at the Center for Strategic and International Studies in Washington, D.C. “But I don’t think they have truly been proven yet.”

A record-setting power-cable plan
Xlinks’s plan rests on the simple premise that Morocco can generate renewable energy when the U.K. cannot—for example, the infamously dreary North Sea winters prevent solar power. The company plans to install 11.5 gigawatts of solar panels and wind turbines at an unannounced site in Morocco’s largely arid Guelmim-Oued Noun region. Notably, the region straddles the internationally recognized border with the occupied Western Sahara, although Xlinks told the nongovernmental organization Western Sahara Resource Watch that the company would not build in “contested territory.”
 
Xlinks plans to build 200 square kilometers of solar photovoltaic panels. Bolstering the solar panels will be a wind farm, harnessing breezes that Xlinks claims are at their strongest in the late afternoon and early evening—peak hours in the U.K., which shares a time zone with Morocco during the summer. The plans also call for a 5-GW battery facility in Morocco capable of producing 22.5 gigawatt-hours of energy storage....
 
One that is working, from 2021's "Subsea Power Cable Between Norway and U.K. Goes Live". 
 
And just for grins and giggles:
Construction to begin on 36 megawatt Moroccan wind farm for Bitcoin mining
Sort of like Desertec but with wind instead of solar. And no transmission to Europe. And bitcoin.
On second thought, nothing like Desertec except North Africa.

Then there was the Sun Cable project:

Is The Plan For The Australia - Singapore Power Cable Dead Or Alive?

Our last post on Schrödinger's extension cord was January 2023's "Solar: The Plan For The World's Longest Extension Cord (Australia to Singapore) Is Dead"

As Tesla Falls Back Under $300 Per Share, xAI Raises $10B in Debt And Equity

As we are fond of pointing out, the endpoints one chooses for a timeline changes the appearance of the presentation and oftentimes is a handy reveal of the writer's biases and intent. For example, yesterday, June 30, Tesla marked the fifteenth anniversary of it's $17.00 IPO. Accounting for the 3:1 and 5:1 stock splits $300 equates to $4500.00 on the original shares.

On the other hand there are people who begin their timeline at the stock's December 2024 all-time high print, $488.54.

And on the third hand are people whose reference period is one year, in which the stock is up 49%.

And on to xAI. Lifted in toto from TechCrunch via Yahoo Finance, July 1:

Elon Musk’s AI company, xAI, has raised $10 billion in debt and equity, Morgan Stanley confirmed on Monday.

In a post on X, the financial giant said xAI had raised $5 billion in debt and another $5 billion in a separate strategic equity transaction.

“The combination of debt and equity reduces the overall cost of capital and substantially expands pools of capital available to xAI. The proceeds will support xAI’s continued development of cutting-edge AI solutions, including one of the world’s largest data center [sic] and its flagship Grok platform,” Morgan Stanley wrote.

xAI did not immediately return a request for comment outside regular business hours.

This latest funding follows a $6 billion round that the company raised in December from a slate of big name investors, including Andreessen Horowitz, Blackrock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, AMD, and Kingdom Holdings, a Saudi conglomerate.

The new equity round brings xAI’s total capital raised to about $17 billion.

Back to endpoints, here's statistician Marge, mother of President of the United States Lisa Simpson with a practical example:

With President Lisa in the White House Homer decides to search for Lincoln's hidden gold hoard:
Undaunted by Lisa's skepticism at dinnertime, Homer starts his search for Lincoln's gold.   
He carries a pickaxe through the White House hallways as he carefully counts off his paces.  Marge follows him.

Homer: ... fourscore four, fourscore five, fourscore six, 
 fourscore and seven paces.  [swings the pickaxe into the 
 floor] 
Marge: Wait!  How do you know this is where Lincoln buried the 
 gold.  You just started counting from an arbitrary place. 
Homer: I just started what from a what? 
Marge: Your plan makes no sense.
Homer: Gold bars discovered by Marge, zero.  Gold bars discovered 
 by Homer, well, let's just see. 
Simpson's [BABF13] "Bart to the Future"
Original airdate 19Mar2000
Bart to the Future.png 
Promotional artwork for this episode with
Lisa as the  first straight female President
trying to rebuild the country after Donald
Trump's disastrous term as President.
 
Special bonus endpoint commentary:
 
 The Official Dilbert Website featuring Scott Adams Dilbert strips, animations and more
 

"OpenAI says it has no plan to use Google's in-house chip" (GOOG; NVDA)

Following on Reuters' story from June 27: "OpenAI turns to Google's AI chips to power its products, source says (GOOG; NVDA)" we have Reuters via MSN June 30:

OpenAI said it has no active plans to use Google's in-house chip to power its products, two days after Reuters and other news outlets reported on the AI lab's move to turn to its competitor's artificial intelligence chips to meet growing demand. 

A spokesperson for OpenAI said on Sunday that while the AI lab is in early testing with some of Google's tensor processing units (TPUs), it has no plans to deploy them at scale right now. 

Google declined to comment.

While it is common for AI labs to test out different chips, using new hardware at scale could take much longer and would require different architecture and software support. OpenAI is actively using Nvidia's graphics processing units (GPUs), and AMD's AI chips to power its growing demand. OpenAI is also developing its chip, an effort that is on track to meet the "tape-out" milestone this year, where the chip's design is finalized and sent for manufacturing....

....MUCH MORE 

"Dollar Drop Gains Momentum and US Rates Extend Decline"

DXY futures look poised to print with a 95 handle this week, 96.09 last after touching 96.00. 
Cash DXY 96.48 -0.39 

From Marc Chandler at Bannockburn Global Forex: 

Overview: An accelerated run on the US dollar continues. The euro, sterling, Australian and New Zealand dollars have risen to new highs. The greenback has dropped to new lows since 2015 against the Swiss franc. Japan's efforts to protect its rice farmers triggered the ire of President Trump. The "reciprocal tariffs," which could come back to the fore in a week, would be around 24% on Japan if no agreement is struck. While all the G10 currencies are firmer today, the yen leads with around a 0.75% gain. In addition to the trade disruption, a drag is coming from the decline in US rates. The 2- and 10-year yields are at new two-month lows. All but a few emerging market currencies are higher today, led by the 1.4% jump in the Taiwanese dollar as life insurance companies reportedly boosted hedge ratios. 

Outside of Japan and Australia, Asia Pacific equities advanced. Three markets rose more than 1% (New Zealand, Taiwan, and Thailand). Europe's Stoxx 600 is off about 0.2% after the 0.4% loss yesterday. US index futures are slightly underwater too. Bonds are bid. Benchmark 10-year rates tumbled 4-5 bp Japan and the Antipodeans. European rates are also mostly 4-5 bp lower. The 10-year US Treasury yield is off a little more than three basis points and is slightly below 4.20%. The weaker dollar and lower rates are helping gold extend yesterday's recovery from low since May 20 (~$3249) to $3346 today. August WTI is confined to a narrow range of a little more than 30 cents on either side of $65. 

USD: The Dollar Index succumbed to the selling pressure, perhaps encouraged by continued decline in US rates. It recorded a new [sic] since late Q1 22 (~96.45). The two-year yield is off around 30 bp since June 16. The market is getting more aggressive about the trajectory of Fed policy....

....MUCH MORE