Monthly Archives: January 2021

File image courtesy Siemens Gamesa

By The Maritime Executive 01-13-2021 07:10:00

Siemens Gamesa and Siemens Energy have announced a major investment in R&D on an offshore wind-powered green hydrogen production system. The two companies will be spending about $150 million to develop the project, making it one of the largest private investments to date in this niche.

"I don't know any other company that combines wind energy, electrolysis and offshore high voltage technology all in one enterprise," said Christian Bruch, chief executive of Siemens Energy, speaking to Reuters.

The project involves reworking the 14 megawatt Siemens Gamesa turbine in order to integrate it with the requirements of running electrolyzers. The design will use an electrolyzer array installed at the base of the offshore wind turbine tower.

The target market is the European chemical and steelmaking sectors, which can use green hydrogen to decarbonize their operations. The pilot project farm will be located in German waters and will be built out at the 100-200 megawatt scale (small for a commercial installation).

Siemens is also a partner in the AquaVentus consortium, a joint partnership with Vattenfall, Vestas, Shell and RWE for the production of green hydrogen from wind off Heligoland, Germany. The AquaVentus venture has a target size of 10 gigawatts of capacity. As with Siemens' newly announced venture, AquaVentus is targeted at supplying industrial consumers of hydrogen, primarily chemical manufacturers.

This so-called "islanded" hydrogen production arrangement - with offshore wind powering H2 electrolysis directly - has advantages for developing renewable energy in Europe, where the power grid is already facing capacity issues. By decoupling the wind farm from the electrical grid, more power capacity can be added without the (very high) additional expense of more transmission capacity. Siemens says that it will lower the cost of hydrogen by being able to run off grid, amd will open up possibilities for more and better wind sites.

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Siemens Invests $150 Million in Offshore Wind-to-Hydrogen Systems - The Maritime Executive

New York, Jan. 13, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Offshore Decommissioning Market Research Report by Removal, by Structure, by Depth, by Services - Global Forecast to 2025 - Cumulative Impact of COVID-19" - https://www.reportlinker.com/p06007616/?utm_source=GNW

Market Statistics:The report provides market sizing and forecast across five major currencies - USD, EUR GBP, JPY, and AUD. This helps organization leaders make better decisions when currency exchange data is readily available.

1. The Global Offshore Decommissioning Market is expected to grow from USD 6,247.16 Million in 2020 to USD 7,264.59 Million by the end of 2025.2. The Global Offshore Decommissioning Market is expected to grow from EUR 5,477.62 Million in 2020 to EUR 6,369.73 Million by the end of 2025.3. The Global Offshore Decommissioning Market is expected to grow from GBP 4,869.62 Million in 2020 to GBP 5,662.70 Million by the end of 2025.4. The Global Offshore Decommissioning Market is expected to grow from JPY 666,730.40 Million in 2020 to JPY 775,316.56 Million by the end of 2025.5. The Global Offshore Decommissioning Market is expected to grow from AUD 9,071.70 Million in 2020 to AUD 10,549.16 Million by the end of 2025.

Market Segmentation & Coverage:This research report categorizes the Offshore Decommissioning to forecast the revenues and analyze the trends in each of the following sub-markets:

"The Leave in Place is projected to witness the highest growth during the forecast period"

Based on Removal, the Offshore Decommissioning Market studied across Complete Removal, Leave in Place, and Partial Removal. The Complete Removal commanded the largest size in the Offshore Decommissioning Market in 2020. On the other hand, the Leave in Place is expected to grow at the fastest CAGR during the forecast period.

"The Topsides is projected to witness the highest growth during the forecast period"

Based on Structure, the Offshore Decommissioning Market studied across Subsea Infrastructure, Substructure, and Topsides. The Topsides commanded the largest size in the Offshore Decommissioning Market in 2020, and it is expected to grow at the fastest CAGR during the forecast period.

"The Shallow Water is projected to witness the highest growth during the forecast period"

Based on Depth, the Offshore Decommissioning Market studied across Deepwater and Shallow Water. The Shallow Water commanded the largest size in the Offshore Decommissioning Market in 2020, and it is expected to grow at the fastest CAGR during the forecast period.

"The Material Disposal is projected to witness the highest growth during the forecast period"

Based on Services, the Offshore Decommissioning Market studied across Conductor Removal, Material Disposal, Mobilization & Demobilization of Derrick Barges, Permitting & Regulatory Compliance, Pipeline & Power Cable Decommissioning, Platform Preparation, Platform Removal, Project Management, Engineering, and Planning, Site Clearance, and Well Plugging & Abandonment. The Well Plugging & Abandonment commanded the largest size in the Offshore Decommissioning Market in 2020. On the other hand, the Material Disposal is expected to grow at the fastest CAGR during the forecast period.

"The Americas is projected to witness the highest growth during the forecast period"

Based on Geography, the Offshore Decommissioning Market studied across Americas, Asia-Pacific, and Europe, Middle East & Africa. The Americas region surveyed across Argentina, Brazil, Canada, Mexico, and United States. The Asia-Pacific region surveyed across Australia, China, India, Indonesia, Japan, Malaysia, Philippines, South Korea, and Thailand. The Europe, Middle East & Africa region surveyed across France, Germany, Italy, Netherlands, Qatar, Russia, Saudi Arabia, South Africa, Spain, United Arab Emirates, and United Kingdom. The Europe, Middle East & Africa commanded the largest size in the Offshore Decommissioning Market in 2020. On the other hand, the Americas is expected to grow at the fastest CAGR during the forecast period.

Company Usability Profiles:The report deeply explores the recent significant developments by the leading vendors and innovation profiles in the Global Offshore Decommissioning Market including AF Gruppen ASA, Aker Solutions ASA, Allseas Group S.A., Baker Hughes Company, DeepOcean Group Holding BV, DNV GL Group, Halliburton Company, Heerema Marine Contractors, John Wood Group PLC, Mactech Offshore Solutions, Oceaneering International, Inc., Petrofac Limited, Ramboll Group A/S, Royal Dutch Shell PLC, Saipem S.p.A., Schlumberger Limited, Subsea 7 S.A., TechnipFMC PLC, and Weatherford International PLC.

Cumulative Impact of COVID-19:COVID-19 is an incomparable global public health emergency that has affected almost every industry, so for and, the long-term effects projected to impact the industry growth during the forecast period. Our ongoing research amplifies our research framework to ensure the inclusion of underlaying COVID-19 issues and potential paths forward. The report is delivering insights on COVID-19 considering the changes in consumer behavior and demand, purchasing patterns, re-routing of the supply chain, dynamics of current market forces, and the significant interventions of governments. The updated study provides insights, analysis, estimations, and forecast, considering the COVID-19 impact on the market.

360iResearch FPNV Positioning Matrix:The 360iResearch FPNV Positioning Matrix evaluates and categorizes the vendors in the Offshore Decommissioning Market on the basis of Business Strategy (Business Growth, Industry Coverage, Financial Viability, and Channel Support) and Product Satisfaction (Value for Money, Ease of Use, Product Features, and Customer Support) that aids businesses in better decision making and understanding the competitive landscape.

360iResearch Competitive Strategic Window:The 360iResearch Competitive Strategic Window analyses the competitive landscape in terms of markets, applications, and geographies. The 360iResearch Competitive Strategic Window helps the vendor define an alignment or fit between their capabilities and opportunities for future growth prospects. During a forecast period, it defines the optimal or favorable fit for the vendors to adopt successive merger and acquisition strategies, geography expansion, research & development, and new product introduction strategies to execute further business expansion and growth.

The report provides insights on the following pointers:1. Market Penetration: Provides comprehensive information on the market offered by the key players2. Market Development: Provides in-depth information about lucrative emerging markets and analyzes the markets3. Market Diversification: Provides detailed information about new product launches, untapped geographies, recent developments, and investments4. Competitive Assessment & Intelligence: Provides an exhaustive assessment of market shares, strategies, products, and manufacturing capabilities of the leading players5. Product Development & Innovation: Provides intelligent insights on future technologies, R&D activities, and new product developments

The report answers questions such as:1. What is the market size and forecast of the Global Offshore Decommissioning Market?2. What are the inhibiting factors and impact of COVID-19 shaping the Global Offshore Decommissioning Market during the forecast period?3. Which are the products/segments/applications/areas to invest in over the forecast period in the Global Offshore Decommissioning Market?4. What is the competitive strategic window for opportunities in the Global Offshore Decommissioning Market?5. What are the technology trends and regulatory frameworks in the Global Offshore Decommissioning Market?6. What are the modes and strategic moves considered suitable for entering the Global Offshore Decommissioning Market?Read the full report: https://www.reportlinker.com/p06007616/?utm_source=GNW

About ReportlinkerReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.

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Offshore Decommissioning Market Research Report by Removal, by Structure, by Depth, by Services - Global Forecast to 2025 - Cumulative Impact of...

(file photo)

By The Maritime Executive 01-12-2021 06:54:53

The increasing focus and perceived opportunities in the offshore wind sector are attracting a growing number of maritime and shipping companies to the business.

In the latest development, Norways Knutsen OAS, which manages and operates LNG carriers and product/chemical tankers, is joining in a partnership to establish a new company to develop offshore wind projects in Norway and internationally. The new company is a partnership between the shipping company, Norwegian power utility Haugaland Kraft AS, and power generation company Sunnhordland Kraftlag AS.

"We are facing a green shift that requires significantly more renewable energy. Offshore wind, together with hydropower, can give the region our great advantage in using our renewable natural resources to create future-oriented green industrial growth and development," says John Martin Mjnes CEO of SKL.

According to the companies, South-West Norway has a long maritime tradition, built on industries such as fishing, shipping, oil, and gas. Renewable power production also has long traditions in Norway, but if Norway is to be fully electrified, there will be a need for new renewable energy.

Norway opened up two areas for offshore wind on January 1, 2021, which the new company sees as a strong opportunity. Utsira Nord it says is ideally located to supply new renewable electricity to a region with an expected significant power deficit. Southern North Sea II could be an opening for Norway as a supplier of renewable energy to Europe.

With Utsira North and Southern North Sea II, Norway can take a position as a leading offshore wind nation built on our expertise from the maritime sector, oil and gas, and hydropower, says Knut Vassbotn, who has been appointed CEO of Deep Wind Offshore.

Through Deep Wind Offshore the three companies will seek to use their industrial and broad expertise in the energy and offshore market to realize the business opportunities in these new, sustainable business areas. At the same time, the company hopes to benefit from the oil and gas industry, both in various collaborations and in the competence and technology power the industry represents.

We are now establishing a new, regional company in Western Norway and want to contribute to developing the expertise that is in the region, and hopefully new renewable power production outside Utsira. The expertise in infrastructure and network development is also something the company brings into the collaboration, says Olav Linga, CEO of Haugaland Kraft.

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Opportunities in Offshore Wind Attracts Norway's Knutsen - The Maritime Executive

Copenhagen Infrastructure Partners (CIP) is selling its 35 per cent stake in the 588 MW Beatrice offshore wind farm to The Renewables Infrastructure Group (TRIG) and funds managed by Equitix Investment Management Limited.

TRIG has exchanged contracts with CIP to acquire an equity interest of 17.5 per cent in the project. Funds managed by Equitix Investment Management Limited are acquiring the remaining 17.5 per cent stake from CIP, according to TRIG.

The Beatrice offshore wind farm is located approximately 13 kilometres off the north east coast of Scotland and comprises 84 Siemens 7 MW turbines which utilise direct drive technology. The project has a 15-year maintenance agreement in place with Siemens.

Developed by SSE plc, the wind farm has been in operation since 2018.

The projects CfD subsidy fixes the price received for all power generated until 2034, with indexation to inflation. Debt financing on the project is fixed rate and fully amortising within the subsidy period.

The investment, which is subject to regulatory and lender consents, which are expected to be received in the coming weeks, will be financed from a drawdown of TRIGs recently renewed revolving credit facility.

TRIGs co-shareholders in Beatrice will be SSE plc (40 per cent), funds managed by Equitix Investment Management Limited (17.5 per cent), and Red Rock Power Limited (25 per cent).

We are pleased to have the opportunity to invest in this high-quality project developed by SSE, who are a leading generator of renewable electricity in the UK, Richard Crawford, of InfraRed Capital Partners, said.

As investment Manager, InfraRed seeks attractive opportunities for TRIG that increase the robustness of the portfolio, helping to deliver sustainable returns to shareholders from a diversified portfolio of renewables infrastructure. This major acquisition represents a continuation of this investment strategy and will be the Companys third investment in a UK offshore wind farm and its 5th in the offshore wind sector.

Following the completion of the transaction, Beatrice will represent approximately 12 per cent of TRIGs investment portfolio.

Originally posted here:

CIP to Sell Beatrice Stake to TRIG and Equitix - Offshore WIND

Paving the way for Poland to develop offshore wind in the Baltic Sea, the countrys Parliament unanimously adopted Polands first Offshore Wind Act on January 14. The Act will enter into force on February 1 after its been signed by the President of Poland.

The Act sets out the rules and regulations that will apply to the development of offshore wind, WindEurope said, adding that it defines the volumes Poland intends to develop. In a first phase the regulator will allocate by June 39 2021 financial support for 5.9 GW of capacity. Beyond this they will then award Contracts for Difference (CfD) in competitive auctions.

Polands targets for offshore wind are ambitious. They have none today. But by 2030 they aim to have installed 3.8 GW, WindEurope said, adding that they then want 10 GW by 2040 and 28 GW by 2050. This would make Poland the biggest market for offshore wind in the Baltic. Their first offshore turbines could be operating by 2025.

This is historic stuff from Poland, WindEurope CEO Giles Dickson said. Theyve firmly committed to offshore wind, and lots of it. Theyll be the leading player on offshore wind in the Baltic Sea. And it makes complete sense for them. Offshore wind is cheap, and theyve great potential for it. They already have a strong offshore wind supply chain around their ports and shipyards. Now they can expect lots more jobs, growth and investments. They wind industry looks forward to helping make it all happen, Dickson added.

The Offshore Wind Act is not only a short-term injection of recovery money, Polish Wind Energy Association Vice President Kamila Tarnacka said. It will create lasting tax revenues for Polands federal budget and local municipalities. The offshore wind industry will create tens of thousands of new jobs in Poland and build a strong maritime industry around the sector which will help to revitalise Polish shipyards and ports, she added.

Polands electricity mix is still heavily based on fossil fuels. In 2019 they produced over 70% of their electricity from coal and 10% from gas or oil. Wind is the biggest source of renewable energy in Poland with 10% of total electricity production.

Poland now wants to become a low-emission economy. Their National Energy and Climate Plan (NECP) singled out offshore wind as a key technology. Itll help diversify their power mix and significantly reduce their CO2 emissions.

The Offshore Wind Act will boost the Polish economy and will help drive their post-COVID recovery. The Polish Wind Energy Association (PSEW) estimates that large-scale offshore wind will unlock 29 billion of investments, creating tens of thousands of new jobs and strong industrial clusters.

Coastal regions in the north of the country are already active in the wind supply chain, making e.g. foundations, cranes and installation & service vessels. The Act is a big boost for them. And Polands ports such as Szczecin, Gdask and Gdynia will transform to renewable hubs for storage, assembly, transportation and maintenance of offshore wind turbines.

Excerpt from:

Poland adopts Offshore Wind Act paving the way to develop Baltic Sea projects - New Europe

Moray East offshore wind farm jackets.

(Courtesy Lamprell)

Offshore staff

SHARJAH, UAE Lamprell will reorganize its activities into three business units: Oil & Gas, Renewables, and Digital.

The Oil & Gas business comprises the groups traditional activities in drilling rig fabrication and refurbishment, onshore EPC and other services, as well as the companys expansion into offshore EPCI under its long-term agreement with Saudi Aramco.

Lamprells IMI joint venture in Saudi Arabia led to a contract for two newbuild jackups in 2020 and an engineering design contract. The company expects oil and gas to remain a significant part of its bid pipeline in 2021, with demand set to increase in the medium term as markets recover.

Work on the two IMI jackups is progressing with fabrication of the hull, cantilever and leg sections advancing. Last year the group completed 16 rig refurbishment projects, with others now under way.

Lamprell Renewables comprises the groups existing projects providing wind turbine generator foundation fabrication services to offshore wind.

Renewables currently comprise up to $2.5 billion (c. 40%) of the groups bid pipeline, helped by the entry of projects in the US. Lamprell foresees further strong growth ahead, with commercialization of floating wind expected to lead to significant opportunities from the middle of the decade onwards.

Targets are base structures for floating offshore wind, HVDC & HVAC platforms, and floating/offshore hydrogen production facilities. Lamprell Renewables will also seek collaboration with other companies to broaden its execution capacity and support the local content goals of clients.

The UKs Seagreen will be the companys next major offshore wind farm project.

Finally, Lamprell Digital covers the teams that have implemented a range of technologies in the groups yards in the UAE, leading to deployment of adaptive robotic welding, facial recognition technology and a proprietary digital quality management system.

It also takes in the groups partnerships with local digital developer Injazat/G42, supported by Mubadala Investment Co., and Akselos.

Lamprell Digital will develop proprietary technologies for industrial application for use in asset integrity, engineering design, smart non-destructive testing, predictive maintenance, and robotics.

01/14/2021

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Lamprell forms three business divisions | Offshore - Offshore Oil and Gas Magazine

Oil prices have established a new milestone having crossed the $50 a barrel mark a 10-month high. Given last springs oil demand implosion and price collapse as the coronavirus exploded on the world stage, reaching this price level is a major achievement.

Despite the virus uptick, which is forcing new economic restrictions that should be sapping demand, oil prices continue to march higher. They appear to be driven by other forces weakening of the U.S. dollar, growing developing economies, the snapback in activity in China, and fear of the return of inflation. Alone, each pressure might boost oil prices. Combined, they are generating substantial momentum for higher oil prices.

The recent OPEC+ agreement to only add 500,000 bbls. of supply back into the market, with no additional volumes for several months, signals that driving down global inventories is a priority for the exporters. After Russia and Saudi Arabia agreed on the supply additions, the kingdom announced a unilateral production cut of one million barrels per day. Saudi Arabia said Russia was aware of its planned announcement at the time of the OPEC+ agreement. Does it mean the two super-producers are scheming to drive prices higher, or are there more sinister reasons for Saudis action?

Saudi Arabia has been struggling with low oil prices. It continues with Vision 2030 to rework its economy. That has necessitated extensive borrowings to fund the effort given weak oil revenues. One could read this production cut as a way to assure Russia stayed with OPEC and not start another oil war, especially given Russias lobbying for higher output. Saudis cut will allow Russia to lift its output slightly for the next two months. The move did boost oil prices Brent jumped by $4 bbl. on the news helping lift everyones income.

On the other hand, maybe Saudi is more concerned about a derailing of the oil recovery due to weakening oil demand as the virus uptick saps economic activity and vaccinations are slow in rolling out. There are a couple of possible internal explanations: the kingdoms oil fields are beginning to struggle after producing at such a high rate for so long; or maybe it has been able to cut its need to burn oil for power generation. The answer to these questions will be known eventually, but until then, oil producers will happily scoop up the additional cash and wait for greater pricing clarity.

The offshore market still faces the challenge of being a long-term and more expensive market meaning the response time is long and its oil is more costly. Onshore producers have a distinct advantage at the moment. If oil demand doesnt collapse with the virus outbreak, and vaccinations accelerate the economic recovery, then oil prices might find $50 to be a floor, boosting offshore operators confidence for moving forward. This all bears watching, as spring may bring a true revival for the industry.

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Will $50 oil boost offshore recovery? - WorkBoat

The Oyster Project consortium has received EU-partnership funding to investigate offshore green hydrogen production.

The consortium comprises of rsted, Siemens Gamesa Renewable Energy (SGRE), Element Energy and ITM Power. It has secured $6m (5m) of funding to demonstrate and investigate a combined wind turbine and electrolyser system, designed for operation in marine environments.

As part of this project, the consortium will focus on the development of a megawatt-scale fully marinised electrolyser in a shoreside pilot trial. Element Energy will co-ordinate the project.

The Fuel Cells and Hydrogen Joint Undertaking (FCH2-JU), a public-private partnership of the European Commission, awarded the funding.

rsted hydrogen activities vice-president and head Anders Christian Nordstrm said: To create a world that runs entirely on green energy, we need to electrify as much as we can. However, some sectors cannot decarbonise through electrification and thats where renewable hydrogen could play a significant role.

Offshore hydrogen production could be a future, supplemental way of getting large amounts of energy generated from offshore wind power to shore.

As the largest offshore wind company in the world, were of course keen to better understand what it will take to produce renewable hydrogen offshore as a potential future supplement to production of renewable electricity.

The project will begin this year and run to the end of 2024.

ITM Power will take responsibility for the development of the electrolyser system and the electrolyser trials.

GlobalData's TMT Themes 2021 Report tells you everything you need to know about disruptive tech themes and which companies are best placed to help you digitally transform your business.

rsted will lead the offshore deployment analysis and conduct feasibility study of future physical offshore electrolyser deployments. The company will also support ITM Power in designing the electrolyser system for marinisation and testing.

SGRE and Element Energy will provide technical and project expertise.

Fabric, Metal and Rubber Expansion Joints

28 Aug 2020

Continued here:

Oyster Project consortium to investigate offshore hydrogen production - Power Technology

The Rampion 2 team has launched a four-week informal consultation this week to raise awareness and seek feedback on their initial proposals to expand the Rampion wind farm off the Sussex coast, UK.

A full and formal consultation will follow later in the year, ahead of the submission of a development consent application to build the Rampion 2 wind farm.

Depending on the final scheme, Rampion 2 could power over one million homes in the UK and reduce carbon emissions by around 1.8 million tonnes per year, in addition to Rampions existing generation.

In autumn last year, it was announced that an offshore Area of Search was being assessed for a maximum of up to 116 turbines, the same number as the existing Rampion offshore wind farm.

The results of technical and environmental surveys and stakeholder feedback will be used to identify the optimum site for the new wind farm, which will be located somewhere within this area.

A subsea export cable is proposed to bring the power ashore under Climping beach, with an underground onshore cable route required to bring the power inland to connect to the national transmission grid at Bolney, where three potential sites are being considered for a new substation.

For the past 18 months, we have undertaken a series of desktop studies and site surveys to establish the physical lay of the land. We have also been talking with many local authorities, MPs, parish councils and experts on wildlife, environment, transport, geology, archaeology, business and fishing, said Chris Tomlinson, Development & Stakeholder Manager, Rampion 2.

We will use the results of our investigations and stakeholder engagement to identify the best possible sites for the onshore and offshore project elements, while minimising disturbance to the local community and environment in delivering this vital green energy project. At this early stage, we would very much welcome feedback from the Sussex community so that we are aware of all local issues, concerns and constraints as we prepare more detailed proposals for a formal public consultation later this year.

A virtual village hall exhibition experience has gone live for people to find out more and to share their views and any local information they think may be important for the project design. Online visitors can tour the exhibition to study maps and charts, watch a video flying over the onshore cable route options, find out how the operating Rampion Wind Farm was built, or arrange a virtual meeting with members of the Project Team to ask more detailed questions.

Formal public consultation on detailed proposals will take place in mid-2021 prior to further refinements of final proposals which will form the basis of the Rampion 2 development consent application, planned to be submitted late in 2021.

If consent is awarded, construction would begin 2025/26 at the earliest with a view to having a completed, operational project before the end of the decade.

Rampion 2 is being developed by RWE on behalf of a joint venture company including a Macquarie-led consortium, and Canadas energy infrastructure company Enbridge, together with owners of the existing Rampion offshore wind farm.

The project has signed an Agreement for Lease with The Crown Estate, the UK seabed manager, securing an option to develop on the site.

See more here:

Rampion 2 Team Starts Informal Consultation - Offshore WIND

In brief

Deltec, the Bahamas-based bank that holds reserves for stablecoin issuer Tether, stated today that it has a large position in Bitcoin.

Chief Investment Officer Hugo Rogers, in a 2020 review video, said of Deltecs holdings:

It also includes a large position in bitcoin, which has received a lot of attention recently. We bought bitcoin for our clients at about $9,300, so that worked very well through 2020. And we expect it to work well in 2021 as the liquidity crisis continues to run hot."

Tether is perhaps Deltecs most famous client. According to market data provider CoinMarketCap, Tether has a circulating supply of 24.3 billion USDT. Since the stablecoin issuer claims each USDT is fully backed by our reserves and each USDT is pegged to the dollar, that means it should have assets worth $24.3 billion in the bank. According to Tethers website, its reserves include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties.

So, the question is: Is Tether backed, in part, by Bitcoin? If so, a crash in the price of Bitcoin could reduce investors ability to remove funds.

And the answer is...unclear.

Tethers last published transparency update, from June 1, 2018, claims a total of $2.54 billion in USD distributed across two bank accounts. That amount was more than its reported market cap at the time.

A letter produced by Tether from Deltec, dated November 1, 2018, seemingly confirmed that Tether was a client, though it used creative wording to discuss how many dollars were in the account: We hereby confirm that, at the close of business on October 31, 2018, the portfolio cash value of your account with our bank was US$1,831,322,828. (Emphasis ours.)

Moreover, Deltec hasnt divulged which clients its holding Bitcoin for, as Tether isnt Deltecs only customer. In fact, at least one other crypto company seems to use it as well, crypto derivatives exchange FTX.

So, this could all be much ado about nothing, smoke without fire.

But others find it curious, especially as crypto exchange Bitfinex, which shares a leadership team with Tether, has been rumored to own a large stake in Deltec.

Tether isnt just the subject of rumors. Its also the subject of a New York Attorney Generals Office investigation. The NYAG has been looking into whether Bitfinex gave Tether loans to hide $1 billion in losses.

None of this has stopped Tethers forward progress. It is the third-largest cryptocurrency by market capitalization and remains the most-used stablecoin.

See original here:

Tethers Offshore Bank Discloses Large Position in Bitcoin - Decrypt