Carbon markets
Overview
Argus carbon markets services provide essential insight into global industry trends, policy changes, and regulatory developments. They include access to analysis and price for the green markets assessments, including renewable energy certificates, voluntary carbon credits, CO2 permits, EU Emissions Trading systems (ETS), SO2 and NOX.
Key markets covered
- Europe
- EUA (EU ETS allowances)
- CER (certified emission reductions)
- ERU (emission reduction units)
- US & Canada
- RECs (renewable energy certificates)
- Carbon markets for California, RGGI (Regional Greenhouse Gas Initiative), and Canada
- California and Oregon LCFS (low-carbon fuel standard)
- Biofuel RINs (renewable identification numbers)
- SO2 and NOX
Latest carbon markets news
Browse the latest market moving news on carbon markets.
Battery storage stands out in Japan clean power auction
Battery storage stands out in Japan clean power auction
Osaka, 2 May (Argus) — Japan's first auction for long-term zero emissions power capacity has attracted strong bidding interest with a plan to install battery storage, as investment in the power storage system is gaining momentum in line with expanded use of fluctuating renewable energy sources. Japan launched the clean power auction system from the April 2023-March 2024 fiscal year, aiming to spur investment in clean power sources by securing funding for fixed costs in advance to drive the country's decarbonisation by 2050. The first auction, which was held in January, has awarded 1.1GW capacity for battery storage, or 27pc of total contract capacity for clean power sources, excluding gas-fired generation that has been temporally included in the auction system to help ensure stable power supplies, nationwide transmission system operator Organisation for Cross-regional Co-ordination of Transmission Operator (Occto), which manages the auction, said on 26 April. Bidding capacity for battery storage totalled around 4.6GW, the highest volume among any other clean power sources. This means the contract ratio for storage batteries was 24pc compared with the 100pc ratio for ammonia co-firing, hydrogen co-firing , biomass dedicated and nuclear capacity, along with gas-fired capacity . Awarded capacity for battery storage as well as pumping-up electric power facilities reached 1.67GW, exceeding the 1GW sought by the auction. Japan has secured a total of 9.77GW of net zero capacity through the 2023-24 auction. Contract volumes covered 1.3GW of nuclear, 199MW biomass, 577MW of pumping-up electric power, 770MW for ammonia co-firing and 55.3MW hydrogen co-firing, as well as 1.1GW of battery storage. This also included 5.76GW of gas-fired projects. All winners under the auction can generally receive the money for 20 years through Occto, which collect money from the country's power retailers, although they need to refund 90pc of other revenue. The first auction saw total funding of ¥233.6bn/yr ($1.51bn) for decarbonisation power sources and ¥176.6bn/yr for gas-fired capacity. Japan's battery requirements are expected to continue rising, with uncertainty over future nuclear availability likely to spur Tokyo to accelerate the roll-out of renewable energy to meet a 46pc greenhouse gas emissions reduction by 2030-31 against 2013-14 levels — a target still far above the 23pc recorded in 2022-23. Japan will need to install 38-41GW of renewable capacity, nearly triple actual output of 14GW in 2019. Japan is looking to establish lithium-ion battery production capacity of 150GWh/yr domestically and 600GWh/yr globally by 2030. The trade and industry ministry projects the latter target will require 380,000 t/yr of lithium, 310,000 t/yr of nickel, 600,000 t/yr of graphite, 60,000 t/yr of cobalt and 50,000 t/yr of manganese. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia issues offshore wind feasibility licences
Australia issues offshore wind feasibility licences
Sydney, 2 May (Argus) — The Australian federal government has issued the first feasibility licences for offshore wind projects in the country following a competitive process, for up to 12GW of capacity off the coast of Gippsland in the southern state of Victoria and a potential further 13GW in the next stage. Six projects have received approval to explore the feasibility of offshore wind farms in the Bass Strait off Gippsland's coast, which was the first offshore wind zone declared in Australia at the end of 2022. Successful applicants include Danish investment firm Copenhagen Infrastructure Partners (CIP), Danish utility Orsted, Australian utility AGL Energy, European utilities EDP Renewables and Engie and Japanese utility Jera. The government also intends to grant another six licences, subject to consultation with First Nations groups. The 12 projects could have a potential combined capacity of around 25GW, the government said ( see table ). Projects that prove feasible will be able to apply for commercial licences and move to the construction phase if they secure financing, with the most advanced wind farms expected to start generating power in the early 2030s. CIP secured site exclusivity to develop two projects with a combined 4.4GW through a newly launched platform company Southerly Ten. The projects comprise the 2.2GW Star of the South, which claims to be the most advanced offshore wind project in Australia , along with the early stage 2.2GW Kut-Wut Brataualung. Southerly Ten is also developing the Destiny Wind project in Australia's second declared offshore wind zone off the Hunter region in New South Wales. Orsted was given one licence for a 2.8GW project and might receive another one for a 2GW wind farm. It said it will proceed with site investigations, environmental assessments and supply chain development, with a view to bid in future auctions planned by the Victorian government, which are expected to start in late 2025. Victoria is targeting 2GW of offshore wind capacity by 2032 and 9GW by 2040. "Subject to the above steps and a final investment decision, the projects are expected to be completed in phases from the early 2030s, with the aim to maximise dual site synergies through shared resources and economies of scale," Orsted said. The 2.5GW Gippsland Skies offshore wind project, belongs to a consortium made of Irish renewables firm Mainstream Renewable Power with 35pc, UK-based firm Reventus Power 35pc, AGL Energy 20pc and Australian developer Direct Infrastructure 10pc. The first phase of the project is expected to be operational in 2032, according to the consortium. The list of six projects already granted feasibility licences also include High Sea Wind, a proposed 1.28GW wind farm developed by EDP Renewables' and Engie's 50:50 joint venture Ocean Winds, along with Blue Mackerel North, a 1GW development by Japanese utility Jera Nex's subsidiary Parkwind. Parkwind is also developing another offshore wind project in Australia, with Australian utility Alinta Energy, the 1GW Spinifex in the Southern Ocean off Victoria, which was declared Australia's third wind zone in March. The other projects that might receive licences are being developed by companies such as Spanish utility Iberdrola, Spanish developer Bluefloat Energy, Australian firm Macquarie's wind developer Corio Generation, German utility RWE and a joint venture between Australia's Origin Energy and UK-based developer RES Group. By Juan Weik Australian offshore wind projects with feasibility licences Developer Capacity Licence Orsted Offshore Australia 1 Orsted 2.8 Granted Gippsland Skies Consortium* 2.5 Granted Star of the South Southerly Ten 2.2 Offered Kut-Wut Brataualung Southerly Ten 2.2 Granted High Sea Wind Ocean Winds 1.3 Granted Blue Mackerel North Parkwind 1.0 Granted Aurora Green Iberdrola 3.0 Under consultation Great Eastern Offshore Wind Corio Generation 2.5 Under consultation Gippsland Dawn Bluefloat Energy 2.1 Under consultation Orsted Offshore Australia 2 Orsted 2.0 Under consultation Navigator North Origin Energy, RES 1.5 Under consultation Kent Offshore Wind RWE N/A Under consultation Source: federal government, companies *Mainstream Renewable Power, Reventus Power, AGL, Direct Infrastructure Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US southbound barge demand falls off earlier than usual
US southbound barge demand falls off earlier than usual
Houston, 1 May (Argus) — Southbound barge rates in the US have fallen on unseasonably low demand because of increased competition in the international grain market. Rates for voyages down river have deteriorated to "unsustainable" levels, said American Commercial Barge Line. Southbound rates declined in April to an average tariff of 284pc across all rivers this April, according to the US Department of Agriculture (USDA), which is below breakeven levels for many barge carriers. Rates typically do not fall below a 300pc tariff until May or June. Southbound freight values for May are expected to hold steady or move lower, said sources this week. Southbound activity has increased recently because of the low rates, but not enough to push prices up. The US has already sold 84pc of its forecast corn exports and 89pc of forecast soybean exports with only five months left until the end of the corn and soybean marketing year, according to the USDA. US corn and soybean prices have come down since the beginning of the year in order to stay competitive with other origins. The USDA lowered its forecast for US soybean exports by 545,000t in its April report as soybeans from Brazil and Argentina were more competitively priced. US farmers are holding onto more of their harvest from last year because of low crop prices, curbing exports. Prompt CBOT corn futures averaged $435/bushel in April, down 34pc from April 2023. Weak southbound demand could last until fall when the US enters harvest season and exports ramp up southbound barge demand. Major agriculture-producing countries such as Argentina and Brazil are expected to export their grain harvest before the US. Brazil has finished planting corn on time . unlike last year. The US may face less competition from Brazil in the fall as a result. Carriers are tying up barges earlier than usual to avoid losses on southbound barge voyages. Carriers that have already parked their barges will take their time re-entering the market unless tariffs become profitable again. The carriers who remain on the river will gain more southbound market share and possibly more northbound spot interest. By Meghan Yoyotte and Eduardo Gonzalez Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Norwegian Cruise swings to 1Q profit
Norwegian Cruise swings to 1Q profit
New York, 1 May (Argus) — US-based cruise ship operator Norwegian Cruise Line's (NCL) swung to a profit in the first quarter on record bookings. The company posted a $69.5mn profit in the first quarter, compared with a $127.7mn loss during the same period of 2023. Revenue rose by 20pc to $2.19bn in the quarter from a year earlier as the cruise operator reported record quarterly bookings. Cruise operating expenses were up by 8pc at $1.39bn in the quarter from a year earlier. Norwegian rerouted some of its voyages that were previously expected to sail through the Red Sea. But demand from other regions offset the effect of the redeployed voyages. The company spent $197.7mn on marine fuel in the first quarter, 1pc up from $194.9mn in the first quarter of 2023. The company burned 269,000t of marine fuel and did not disclose its fuel consumption for the first quarter of 2023. It expects to burn about 245,000t in the second quarter and 995,000t for full 2024, split evenly between residual fuel oil and marine gasoil. Currently, it has hedged about 35pc of its fuel oil consumption at $395/t and 75pc of its marine gasoil consumption at $746/t for the entire 2024. Starting this year, Norwegian had been applying to the EU innovation fund with the goal of accelerating the transition of six of its vessels from being methanol ready to being fully methanol capable. Biomethanol was pegged at $2,223/t very low-sulphur fuel oil equivalent (VLSFOe) or 3.7 times the price of VLSFO average in April in the Amsterdam-Rotterdam-Antwerp bunkering hub, Argus assessments showed. Methanol was assessed at $699/t VLSFOe or 1.2 times the price of VLSFO. The company also has half of its fleet equipped with shoreside technology allowing it to use port electricity and minimize emissions during port stays. Norwegian has ordered eight new vessels for delivery from 2025-2036. Separately, its subsidiaries Oceania Cruises and Regent Seven Seas will take delivery of three new vessels from 2025-2029 and two new vessels from 2026-2029, respectively. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.