Hydrogen
Overview
Hydrogen is an increasingly important piece in the decarbonisation puzzle. Industrial players are seeking ways to take carbon emissions out of their hydrogen production processes, while green hydrogen producers see the gas as a viable outright alternative to hydrocarbons.
Future production routes range from methane reformation with carbon capture to pyrolysis, waste gasification and electrolysis, powered by renewable energy or fossil fuels. Combinations of processes and energy being used to produce hydrogen presents existing users of industrial heat and key chemicals a challenging landscape to navigate.
The Argus Hydrogen and Future Fuels service has been designed to provide industrial power, chemicals and energy users with crucial information to help them make well informed decisions. It covers the upstream for projects, midstream for transportation and storage, and downstream for ammonia and methanol. It also covers the latest technological developments and policy news on hydrogen from across the globe.
Latest hydrogen news
Browse the latest market moving news on the global hydrogen industry.
Austria advances hydrogen subsidy law
Austria advances hydrogen subsidy law
Hamburg, 16 May (Argus) — Austria's government has agreed on a law for subsidising renewable hydrogen production. The law foresees €400mn being allocated to projects through a competitive bidding system this year as fixed-premium subsidies over a 10-year period, with another €420mn to be made available in 2025-26 . Funds could be made available by utilising the European hydrogen bank's "auction-as-a-service" scheme, which allows EU member states to use the mechanism to allocate funds to projects on their territory. A second European hydrogen bank auction is due to launch towards the end of this year. Austria could use this to allocate funds, but the law also leaves the option open of conducting auctions outside of the hydrogen bank mechanism. In a supplementary text, the government said that the projects supported through the law could start operations between 2027 and 2030. The government estimates that the €820mn budget could support some 18,000-40,000 t/yr of renewable hydrogen production, assuming subsidies come in at an average €2-4.50/kg. Under the hydrogen bank auction mechanism, funds are allocated to the projects requesting the least amount of support. In the hydrogen pilot auction, for which results were announced in late April, five Austrian projects participated, but they were all unsuccessful. Subsidies went to plants in Spain, Portugal, Norway and Finland instead . The Austrian projects represented a combined 278MW of electrolyser capacity with anticipated production of around 33,200 t/yr. A single project made up well over half of this and with a bid of around €0.60/kg was not far off the clearing price. Meanwhile, bids for the other, much smaller projects were close to the auction's ceiling price of €4.50/kg. Germany was the only country to use the "auction-as-a-service" mechanism for the pilot auction, but other countries, such as Belgium , are also considering using it in the future. Austria's hydrogen subsidy law has now been passed to parliament for review. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazilian governors back renewable H2 support bill
Brazilian governors back renewable H2 support bill
Rotterdam, 15 May (Argus) — A group comprising the governments of nine states in northeast Brazil has endorsed the latest amendments filed in the country's hydrogen bill, which envisage generous tax credits and financial incentives for renewable hydrogen production and demand. Governors from the nine states have joined calls by the Brazilian green hydrogen industry association ABHIV to push the national government to embrace the suggestions, recently filed by senator Otto Alencar. The consortium, which is an instrument for "political, judicial and economic" integration of the states that make up the northeast region, is urging more support from federal government at the World Hydrogen Summit in Rotterdam. The current pipeline of planned projects in the northeast would amount to approximately 12mn t/yr of renewable hydrogen production, and "if only 10pc of these projects materialise, it would already place us in a global leadership position," Piaui's governor and consortium representative Rafael Fonteles said. The proposals in the bill resemble incentives that were given to other energy sectors such as ethanol and biodiesel to make alternative sources more competitive, ABHIV director Fernanda Delgado said. "Brazil knows how to do these policies, this is not new". The amendments are currently being discussed by the senate. ABHIV expects some pushback from the finance ministry regarding the tax credits, mainly regarding the 20-year offer, Delgado told Argus , but the initial proposal has left some room for negotiation and even a more modest version will already help the industry, she said. The current proposal envisions tax credits to up to 15GW of electrolyser capacity in the country, with up to 6.58 Brazilian reais ($1.27) per kg for production and 8.55 reais/kg for domestic consumers. While the northeast of Brazil offers competitive renewables generation and available land, these factors alone are "not enough" because "competition is worldwide," according to the head of Latin America at French renewables firm Voltalia, Robert Klein. The first molecules will be the most expensive ones and the tax cashback will help make them more competitive and projects reach gigawatt scale, Klein said. Momentum has accelerated for Brazilian renewable hydrogen projects, although almost all are at a very early stage. During the event, Brazilian utility Eletrobras signed an agreement to support European group Green Energy Park's planned renewable hydrogen and ammonia production in Piaui with electricity transmission infrastructure. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Idemitsu invests in US e-methanol producer HIF
Japan’s Idemitsu invests in US e-methanol producer HIF
Osaka, 13 May (Argus) — Japanese refiner Idemitsu is investing in US synthetic fuel (e-fuel) producer HIF Global to develop a supply chain of e-methanol, as part of a strategy to achieve net zero emissions by 2050. Idemitsu said on 13 May that it has agreed to spend $114mn to secure an undisclosed stake in HIF after the US firm issued new shares. HIF is expected to produce around 4mn t/yr of e-methanol equivalent by 2030 at its production sites in Australia, North America and South America. E-methanol is typically made from green hydrogen and carbon dioxide (CO2). This is used as an alternative bunker fuel and as a feedstock for synthetic fuels, including gasoline, sustainable aviation fuel (SAF) and diesel, as well as synthetic chemicals. Idemitsu is focusing on e-methanol, along with blue ammonia and SAF, as its investment targets to achieve net zero by 2050. The company aims to set up 500,000 t/yr of e-methanol supplies in domestic and overseas markets in 2035 by using its existing oil supply and sales networks. The target includes unspecified volumes from HIF, possible production in the Middle East and domestic output, Idemitsu said. The deal follows Idemitsu's initial agreement with HIF in March 2023 to work on production and promotion of e-fuels, along with a decision to buy e-methanol from HIF and jointly study the possible development of the fuel. Idemitsu also agreed an initial deal with HIF and Japanese shipping firm Mitsui OSK Line to explore opportunities to develop an e-fuel and e-methanol supply chain between Japan and where HIF's e-fuel and e-methanol production plants are located, including CO2 transportation from Japan to HIF's production sites. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Spanish ceramics sector worried about H2 supply, cost
Spanish ceramics sector worried about H2 supply, cost
London, 10 May (Argus) — Supply limitations and high prices of renewable hydrogen will pose a challenge to the Spanish ceramics sector's decarbonisation goals, according to an industry association. Companies in the sector are mulling the use of renewable hydrogen in their operations, "but it is a real challenge because of the volume that we need and the cost", the general secretary of Spain's association of ceramic tile and flooring manufacturers (ASCER), Alberto Echavarria, told Argus . The industry currently consumes around 15TWh/yr of natural gas, accounting for nearly 10pc of Spain's industrial gas demand. This would equate to around 380,000 t/yr of hydrogen, based on the higher heating value of 39.39kWh/kg. And it would not be far off the 500,000 t/yr of conventional hydrogen made from natural gas with unabated emissions that Spanish industry as a whole consumes currently. Making 380,000 t/yr could require some 4GW of electrolyser capacity for the ceramics industry alone, equivalent to over one-third of Spain's 2030 target of 11GW . In any event, existing technology can support no more than 10pc hydrogen blending in the kilns, Echavarria said. ASCER is in talks with kiln manufacturers developing hydrogen-ready ovens, but these are in a testing phase and are not expected to be available at industrial scale in the near future. Alternatives for decarbonisation are thin on the ground. Electrifying operations is not a viable option, Echavarria said. While some parts of the ceramic production process can run on electricity, the industry ovens, known as kilns, fire at temperatures reaching 1,200°C, which are much too high for electricity. And the kilns represent 50-60pc of the sector's energy consumption, according to Echavarria. Another alternative would be to use biomethane or e-methane, at least until hydrogen-fired kilns reach industrial scale. This approach would require minor modifications in facilities and would allow them to continue using the current infrastructure and distribution system. But biomethane is also only available in small volumes, and making e-methane requires electrolytic hydrogen, raising the same issues over supply availability and costs as direct hydrogen use. Net emissions could also be reduced by implementing carbon capture technology but this would be even less cost-competitive, Echavarria said. It would require mechanisms to concentrate CO2 molecules at a focal point, which is an expensive undertaking, he said. Piping hot Future hydrogen use for ceramics production would depend on connections to a hydrogen pipeline system. Spain's ceramics industry, which is the largest in Europe, is mainly concentrated in Castellon, where more than 150 facilities are based. It is not practical to "have 150 electrolysers" and produce locally, Echavarria said, not least because the plants would need round-the-clock hydrogen supply to maintain the high temperatures. ASCER has been collaborating with Spanish gas system operator Enagas on plans for the development of the Spanish hydrogen backbone to ensure access for its companies, he said. Firms have also looked into sourcing hydrogen via trucks, according to Echavarria. But this would require storage facilities, raising costs and safety concerns. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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Explore our hydrogen products
Real time access to trusted cost benchmarks, critical market data and analytics, in-depth analysis, and the latest market news. Argus Hydrogen and Future Fuels service is relied upon by intensive users of energy, governments, banks, regulators, exchanges and many other organisations as source of reliable and unique insights into the global hydrogen sector.