Australia's QPM to focus on gas, cut Tech battery spend
Australian battery metals refiner Queensland Pacific Metals (QPM) will focus on energy markets via its Moranbah gas project (MGP) and limit further expenditure on its Townsville Energy Chemicals Hub (Tech) project.
The firm will switch its prioritisation to its wholly-owned QPM Energy (QPME) business, with QPME's chief executive David Wrench to be appointed as QPM chief executive, the company said on 22 April.
MGP's coal mine waste gas output from nearby the coal mining hub of Moranbah in Queensland's Bowen basin will be increased to 35 TJ/d (935,000 m³/d) by late 2024, up from October-December 2023's 28 TJ/d, with QPME to accelerate production and reserves to provide required peaking power for the national electricity market (NEM) via Thai-controlled energy firm Ratch Australia's 242MW Townsville Power Station.
QPME aims to drill a further seven wells by the year's end, increase workovers and increase production from third-party supply of waste mine gas from regional coal mines.
The company is also seeking to develop a portfolio of plants to supply up to 300MW of gas-fired power to the NEM, while compressed natural gas and micro-LNG facilities will also be developed in Townsville and Moranbah, QPME said.
A surge in government support for renewable power generation in order to meet Australia's 2030 emissions target by retiring coal-fired power means more gas-peaking plants will likely be needed in the coming years to support variable generators. But Australia's domestic gas supply is forecast to experience shortfalls this decade, with predictions of a 76 PJ/yr gap in 2028.
The Tech project which aims to produce 16,000 t/yr of nickel and 1,750 t/yr of cobalt sulphates from imported laterite ore saw its funding significantly reduced in February because of what QPM described as a "challenging investment environment" resulting from depressed nickel prices.
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Indonesia to finalise roadmap to develop SAF by June
Indonesia to finalise roadmap to develop SAF by June
Singapore, 31 May (Argus) — The Indonesia government hopes to finalise a national roadmap and action plan for the industrial development of sustainable aviation fuel (SAF) by June. The roadmap and proposed action plan consists of three main pillars, demand, supply and enablers, according to the Coordinating Ministry for Maritime Affairs and Investment on 29 May. This involves ensuring raw material availability, certainty of SAF offtake, and mechanisms to reduce impact on prices, among other aims. The country also plans to announce a presidential regulation related to the SAF roadmap on the sidelines of the Bali International Air Show in September, with no further details disclosed. The action plan is prepared with a 2025-30 timeline and will be reviewed and updated periodically. The demand pillar was discussed previously, and the ministry is holding a meeting on 31 May to discuss the supply and enablers pillars. The roadmap currently focuses on used cooking oil (UCO) and crude palm oil (CPO) residue as SAF feedstocks. Seaweed is also a potential raw material to be researched, said Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan on 29 May. "SAF is the most effective solution" to reduce carbon emissions, based on various data, studies, and increasing aviation activity, said Luhut. The government might choose to keep more feedstocks like UCO domestically, given the country's aims to produce more SAF, and potentially impose export taxes, raise export levies or adjust domestic market obligations (DMO), market participants said. But they noted these measures to regulate exports will be more likely with higher domestic refinery capabilities to take waste-based feedstocks, and nothing is concrete for now. Pertamina State-owned oil company Pertamina plans to power a plane with a small amount of imported blended SAF during the Bali International Air Show in September, said a company source. The SAF will be UCO-based and consist of around 15pc SAF blended with fossil jet fuel. Pertamina previously supplied 2.4pc SAF-blended jet fuel to national airline Garuda Indonesia, and the country's first successful test flight using a commercial aircraft was conducted on 26 October 2023. Pertamina previously produced SAF and renewable diesel at its Cilacap and Dumai refineries, but using refined, bleached and deodorised palm oil. It plans to bring the second phase of its Cilacap "green refinery" on line in 2026's fourth quarter, which will use palm and waste-based feedstocks such as UCO and palm oil mill effluent (Pome) oil to produce around 132,000 t/yr of SAF. Indonesia exported an average of 235,800 t/yr of UCO between 2019-23, according to GTT data. Malaysia was the top recipient of volumes as the country is also a main location where UCO is aggregated before beingexported elsewhere, followed by the Netherlands and Singapore. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Rio Tinto to buy out New Zealand Aluminium Smelters
Rio Tinto to buy out New Zealand Aluminium Smelters
Sydney, 31 May (Argus) — UK-Australian mining firm Rio Tinto has signed an agreement to acquire Japanese firm Sumitomo Chemical's stake in New Zealand Aluminium Smelters (NZAS) to own 100pc of NZAS. Rio Tinto will buy Sumitomo Chemical's 20.64pc stake in NZAS for an undisclosed price which will give it full control of the joint venture if all approvals — including from New Zealand's Overseas Investment Office, are secured — Rio Tinto said today. NZAS operates the Tiwai Point smelter at Southland on New Zealand's South Island, which was expected to close in December, but will now operate for at least two more decades as Rio Tinto signed 20-year supply deals with local utilities Meridian Energy, Contact Energy and Mercury NZ for a combined base-load volume of 572MW. The smelter is the largest single user of electricity in the country, and produced between 333,000-336,000 t/yr over 2021-23. The power supply agreements are expected to begin in July and run until at least 2044, with the biggest coming from Meridian Energy at 377MW, followed by 100-120MW from Contact Energy and 50-75MW from Mercury NZ. The supply deals — which are subject to regulatory approvals and other conditions — include 20-year demand response agreements with Meridian Energy and Contact Energy, under which NZAS may be requested to reduce electricity consumption by up to a total of 185MW. "The NZAS decision to extend the smelter life removes significant uncertainty for the electricity sector, which also helps pave the way for new renewable energy to be built," Meridian Energy chief executive Neal Barclay said on 31 May. Rio Tinto has also signed an agreement to buy Sumitomo Chemical's 2.46pc stake in Boyne Smelters Ltd (BSL), which owns and operates the Boyne Island aluminium smelter in Gladstone, Australia. Rio Tinto's interest in BSL will increase to 61.85pc upon completion of the deal. Sumitomo Chemical said it held shares in the Australian and New Zealand business for the purpose of importing primary aluminium for resale, but decided to sell its interests as changes in global market conditions led to "high" volatility in profitability and as it looks to strengthen its financial position. Rio Tinto originally planned to shut down NZAS in August 2021 because of high energy costs and a tough outlook for the sector, but pushed back its decision a few times. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Taiwan's scrap imports fall on year in April
Taiwan's scrap imports fall on year in April
Singapore, 31 May (Argus) — Taiwan's ferrous scrap imports fell in April as the upcoming summer lull, which encompasses higher electricity rates and electricity restrictions in May, led to cautious procurement activities by local steelmakers. Marginally higher spot scrap prices in early February also suppressed buying appetite, trade sources said. Loading and delivery for US containerised scrap is typically set 6-10 weeks ahead and the spot price for HMS 1/2 80:20 containerised scrap from the US west coast was as high as $375t/t on 1 February, but tapered off to $360/t cfr by 29 February. "Scrap buyers will usually stay by the sidelines when prices start falling because there is a common belief that prices will continue falling, and they don't want to be caught buying at higher prices this week when they could potentially get it lower next week," a trader said. The US was the biggest supplier of scrap metals to Taiwan, accounting for 45.4pc of the net import volume, followed by Japan at 20.4pc. Other major suppliers of scrap to Taiwan include the Dominican Republic and Australia. Taiwan's imports in May and June are expected to be suppressed as it enters a seasonal lull and as electricity restrictions kick in on 15 May, with mills expected to cut work shifts and reduce steel production. The typhoon season in May will also affect steel demand as rainy weather will impede local construction works. Taiwan ferrous scrap imports Country Apr % ± vs Mar % ± vs Apr'23 Jan-Apr % ± y-o-y US 125,703 3.63% 23.3% 448,733 10.12% Japan 56,619 27.76% -25.7% 218,328 -23.74% Australia 8,685 -45.52% -73.1% 46,535 -54.37% Dominican Republic 13,164 -11.77% -53.4% 62,042 -19.96% Others 72,671 -5.22% 0.4% 271,452 17.85% Total 276,841 1.35% -11.0% 1,047,090 -5.12% Source: Taiwan customs Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Queensland bans CCS in Great Artesian Basin
Australia’s Queensland bans CCS in Great Artesian Basin
Sydney, 31 May (Argus) — Australia's Queensland state government announced today it will ban carbon capture and storage (CCS) in its portion of the Great Artesian Basin. Greenhouse gas (GHG) storage activities, including CCS projects, will be permanently prohibited in the basin as the government looks to protect its water resources, Queensland premier Steven Miles said on 31 May. The ban, which will be legislated, also includes enhanced oil or petroleum recovery activities that use a greenhouse gas stream. Activities involving GHG storage or the injection of GHG streams into underground formations may be able to continue in other parts of the state, subject to existing assessment and approval processes. The government will appoint an expert panel to review projects outside the Great Artesian Basin, which will report back in 2025. The Great Artesian Basin is Australia's largest groundwater aquifer. It is made up of several sedimentary basins spanning over 1.7mn m² across Queensland, the Northern Territory, South Australia and New South Wales. Water extracted from the basin is used for agriculture, irrigation and stock watering, as well as for industry and household supply in over 80 Queensland towns, according to the government. Queensland's Department of Environment, Science and Innovation last week rejected the environmental impact statement for commodities producer and trading firm Glencore's CTSCo Surat Basin CCS project, which aimed to demonstrate carbon capture from a coal-fired power station and the permanent storage of CO2. The project was unsuitable to proceed because of the potential impact on groundwater resources in the Great Artesian Basin, the department said. The CCS ban follows the state's decision late last year to ban unconventional oil and gas extraction in its portion of the Lake Eyre basin to protect inland waterways, as well as conventional production alongside rivers and on floodplains. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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