ENERGY

The two West Australia power firms signed supply contracts on Wednesday with gas suppliers. The deal would boost gas security for residents.

Manufacturing activity remained flat in November according to the latest Australian Industry Group - PwC Australian Performance of Manufacturing Index (Australian PMI®). The Australian PMI® was broadly unchanged, up just 0.4 points to 47.8, to remain below the 50 points level separating expansion from contraction.

The expansion and diversification of its operations had led to record revenue growth for Australian environmental services company, CO2 Group Limited (ASX: COZ). On Monday, CO2 reported revenues of $35 million for financial year 2011 and full year net profit after tax of $1.5 million.

Rio Tinto and Chinalco joint venture (JV) for exploration in China - Chinalco Rio Tinto Exploration Co. Ltd. (CRTX) - has been officially registered as a business in China.

From Stan Shamu, Markets Strategist, IG MarketsGlobal markets extended their losses overnight on deepening concerns about the European debt crisis, after a poorly-received German debt sale. Germany failed to find buyers for 35% of the bonds it offered at an auction. There was also a swathe of disappointing economic data, with European services and manufacturing output shrinking for a third month, US durable goods orders falling and unemployment claims topping forecasts.

Like its counterparts in the U.S., Australia's only manufacturer of solar panels is suffering from weak sales due to competition from cheap Chinese solar panel imports.

Qantas will start using biofuel to power its planes next year, the airline's CEO Alan Joyce announced during the Australian Airports Association convention in Brisbane on Monday.

Although the Australian government is apparently battling an uphill fight over carbon tax, renewable energy and similar issues as the debate gets lively, trends support the Labor government position that the country should shift toward renewables and away from coal.

Greenhouse gas emissions (GHG) from the Australian power industry increased by 3.8% over the month of October, as lost generation gradually made a comeback in the lead up to summer, according to October's Emissions Insights report from RepuTex carbon analytics.

ExxonMobil Corp., the world's largest integrated oil and gas firm, would have to shell out $134 million to clean up the oil spill in Yellowstone River, Montana last July.

Beach Energy Limited (ASX: BPT) offered on Monday $94 million to buy out all the issued and outstanding ordinary shares of Adelaide Energy (ASX: ADE) it does not already own.

Speculations are abuzz that Australia's coal market is nearing its zenith, what with the latest intent of Australian coal miner New Hope Corp. wanting to be bought out in the tune of $5 billion.

ArcelorMittal has decided to pull out from its joint venture with U.S.-based Peabody Energy for Macarthur Coal after issues of management control arises.

TRUenergy is seeking development approval for two high-efficiency gas-fired power stations in Queensland to meet forecast increases in electricity demand in the state.

Following a strategic review, Rio Tinto said 13 assets will be divested at an appropriate point in the future, and some of these will be managed separately in the meantime.

Anadarko Petroleum Corporation forged a settlement agreement with nternational oil and gas firm BP regarding claims related to the Gulf of Mexico oil spill in 2010 .

AFTERNOON REPORT (4.30pm AEDT)Local stocks managed to erase all of yesterday's gains during Tuesday's session, with fear and caution again at the forefront of investors' minds. Overnight, sentiment wasn't helped by negative commentary from Germany's Finance Minister who warned it was unrealistic to expect a definitive solution to the European debt crisis at this weekend's European Union summit.

Solar panel manufacturer SunPower Corp. today launched a solar photovoltaic tracking system that concentrates the sun's power seven times to achieve the lowest levelized cost of electricity (LCOE) for utility-scale solar power plants.

Ground breaking new technology for the capture of carbon dioxide from power stations will be tested by Process Group at Hazelwood Power Station following a grant from Brown Coal Innovation Australia (BCIA).

Bahamas Electricity Corporation and Ocean Thermal Energy Corporation have moved toward the construction of two ocean thermal energy conversion (OTEC) plants.

MIDDAY REPORT (12pm AEDT)The Australian sharemarket is down 1.6 pct or 71.5 pts to 4266.4, effectively wiping out all of yesterday's impressive gains. Markets tumbled overnight due to concerns that the European debt solution might fall short of expectations.

Australia's central bank has hinted that benchmark cash rates in the country may go down after months of being held at 4.75 percent.

More than half of Australian mid-market companies are not properly prepared for persistent fluctuations in business conditions, according to the inaugural Commonwealth Bank Future Business Index.

Cementing its commitment in developing an open pit mine in South Australia, BHP Billiton has announced on Wednesday that the company's board has earmarked US$1.2 billion in pre-commitment capital for the first phase

Australia's business and other industry groups are now on the quandary as to the passage of the carbon tax legislation in Congress now waiting for the final stamp of approval in the Senate.

Sinopec of China acquires Daylight Energy of Canada for C$2.2 billion.

AFTERNOON REPORT (4.30pm AEDT)The local share market posted its fourth win in a row today, kick-starting the trading week on a positive note. Investor sentiment remained buoyant after German and French leaders agreed to do all that is necessary to secure the recapitalisation of European banks. Share markets around the Asian region were generally positive, despite ratings agency Fitch cutting the credit ratings of Italy and Spain. The All Ordinaries Index (XAO) gained 37.3pts or 0.9pct to 42...

The economic insecurities affecting most countries around the world had caused majority of Australian businesses to become more wary to the point of being pessimistic.

The Australian sharemarket is surprisingly holding up very well despite a fall in U.S shares on Friday. The All Ordinaries index (XAO) is up 1.1 pct or 46.4 pts to 4271.4, adding to the 3.8 pct gains recorded last week.