Lithuania more than triples 2030 renewable H2 target

  • : Fertilizers, Hydrogen
  • 24/04/24

Lithuania has more than tripled its 2030 renewable hydrogen target and now aims to produce 129,000 t/yr from 1.3GW electrolyser capacity, according to the hydrogen roadmap approved by the government today.

A previous draft from July last year set a goal of 350MW of electrolyser capacity and 34,000 t/yr production.

According to the ministry, the main applications of renewable hydrogen will be fertiliser production, refining and mobility — including use of derivatives such as synthetic fuels.

Lithuania can currently produce 264,000 t/yr of hydrogen from natural gas with unabated emissions. The bulk of this, roughly 200,000 t/yr, is used for ammonia production, with the remainder largely going to refineries, which consume over 50,000 t/yr.

By 2030, Lithuania could consume around 96,000 t/yr of renewable hydrogen domestically, largely to replace existing grey hydrogen use. Some 82,000 t/yr of renewable hydrogen could be used in fertiliser production to meet EU requirements for 42pc of hydrogen consumption in industry to come from renewable sources by 2030. While the government did not specify the reasons for the higher production targets, the need to comply with these EU rules — which were finalised in mid-2023 — may have contributed.

Additional demand is expected from the transport sector. By 2030, the government aims to have at least 10 hydrogen refuelling stations, with at least one dedicated to the shipping sector. It also aims to have part of the public transport of at least five cities running on renewable hydrogen.

The ministry plans to promote up to 10pc of hydrogen blending in the gas network as a way to kickstart the market and increase adoption. The strategy also anticipates use of hydrogen for power generation, primarily as a means of stabilising the grid and for electricity storage.

Two hydrogen valleys could be developed — hubs for production and distribution of renewable hydrogen, according to the ministry. One is planned in the northwest of the country to leverage offshore wind potential and exports, while another is foreseen for the central region, which boasts "well-developed electricity transmission network" that could allow surplus power to go towards hydrogen production.

Investments of around €4.4bn ($4.7bn) will be needed in the renewable hydrogen sector by 2030, the government said. This is expected to come partly from a mix of EU funding programmes and state investment, and partly from private funds.

The government said it will look into implementing subsidies and grants schemes, tax incentives, loan guarantees and financing programmes, while it will also consider measures to streamline permitting.

Lithuania renewable hydrogen demand targets(t/yr)
203020402050
Ammonia production82,000240,000472,000
Refining (E-fuels production after 2030)5,00092,000141,000
Transportation8,00032,00051,000
Electricity production0017,000
Other domestic use1,0004,0007,000
Exports33,00051,00044,000
Total129,000419,000732,000

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24/06/12

Germany eyes geographical split in new H2Global round

Germany eyes geographical split in new H2Global round

London, 12 June (Argus) — The German government could disburse more than €3.5bn in support of renewable hydrogen production projects globally in a second round of the H2Global mechanism, according to a consultation document. The country's economy and climate protection ministry is surveying industry participants on the proposed design and criteria for a second round of the scheme that is intended to bolster the ramp-up of global renewable hydrogen production. It committed €900mn for the scheme's first round and previously set aside more than €3.5bn for future auctions without specifying how the funds would be allocated, or across how many auctions. The consultation document suggests the full amount could be made available in a single round. The government's envisaged design shows financial support split across six lots ( see table ). Two would be for a 'vector open' category, which would entail final delivery of renewable hydrogen with suppliers free to decide which transport vector to use. This could allow for deliveries by pipeline, or for seaborne transport by vectors such as ammonia, liquid hydrogen or liquid organic hydrogen carriers (LOHCs). If transport vectors are used, suppliers would be responsible for converting the supply back to gaseous hydrogen. One of these lots — which would probably include a €300mn funding contribution from the Netherlands — would be open for projects anywhere in the world, and one would be specifically for European projects. The first round was open only to projects outside the EU. The four other slots are referred to as 'product open' and would be available to deliveries of renewable hydrogen or derivatives, such as ammonia, e-methanol, synthetic methane or sustainable aviation fuels (SAF). These are split by projects in four geographical regions. Delivery for all lots would be to points of sale in Germany or the Netherlands. The H2Global scheme aims to close the gap between the costs of production and the price that customers are willing to pay. Specialised entity Hintco will buy renewable hydrogen and/or derivatives through 10-year contracts with suppliers and sell the products through one-year contracts , with government funds to cover the expected price difference. The consultation mentions a 2026-36 timeframe. This could refer to the envisaged 10-year delivery period, although 2026 would be a highly ambitious start date for deliveries given the mechanism is targeting projects that are yet to be developed. The first round, split into specific lots for ammonia, e-methanol and e-SAF, was concluded in early 2023. Winners have yet to be announced. Interested participants can submit responses to the consultation until 22 July, after which the design will be finalised. By Pamela Machado Proposed lots for H2Global second round Region Type of lot Budget range (in €mn)* Europe Vector open 600 - 1100 Global Vector open 600† North America Product open 300 - 600 Asia Product open 300 - 600 Africa Product open 300 - 600 South America & Oceania Product open 300 - 600 *total budget allocated would not exceed €3.531bn; † of which Germany's contribution will be €300mn, with the rest likely to come from the Dutch government - Germany's economic affairs and climate protection ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

AW Shipping’s VLACs join newbuild order book


24/06/12
24/06/12

AW Shipping’s VLACs join newbuild order book

Singapore, 12 June (Argus) — AW Shipping, a joint venture between Abu Dhabi's state-owned Adnoc and Chinese petrochemical producer Wanhua Chemical, has ordered up to four Very Large Ammonia Carrier (VLAC) newbuilds. AW Shipping ordered up to four 93,000m³ VLACs from China's Jiangnan Shipyard in Shanghai. The deal was for two firm and two optional VLACs, with prices estimated at around $120mn each, according to sales and purchase and newbuild vessel sources. AW Shipping has yet to respond to Argus to confirm the prices. It added five very large gas carriers to its fleet at the end of last year. The 86,000m³ newbuilds — Al Ain , Zakher , Rabdan , Al Salam and Baynounah — were built by Jiangnan and are equipped with dual-fuel engines that can run on LPG, which will be used as the primary fuel, as well as standard bunker fuels, the company said. Ammonia carrier demand is increasing as it gains traction in the energy and agricultural sectors and plays a part in decarbonisation efforts. It is becoming more popular because of its low-carbon qualities, which make it a desirable option for use in power plants and as an alternative fuel in the maritime sector. Ammonia is also extensively used in the production of fertilizer. But development of a VLAC market could be delayed by a lack of terminal infrastructure to allow discharge of 40,000-60,000t cargoes, said Steem1960 ammonia shipbroker Lisa Maria Assmann at the Argus Clean Ammonia conference in Tokyo in May. Around 40 VLACs are scheduled to hit the water between 2026-28, when an uptake in clean ammonia trade is likely to be pushed by public tenders from South Korea and Japan. "VLACs cannot discharge these large volumes using the existing infrastructure," Assmann said. "We have storages that are much smaller than that, terminals with draft issues, LOA (length overall) issues. With all these problems, I do not see these large volumes being discharged in a speedy manner in the short term, not before 2035-40 at least." By Sean Zhuang Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Queensland to pump $17bn into renewables


24/06/12
24/06/12

Australia’s Queensland to pump $17bn into renewables

Sydney, 12 June (Argus) — Australia's Queensland has allocated new spending on energy projects, including pumped hydropower and transmission schemes, as part of its state budget for the 2024-25 fiscal year to 30 June. The state government, currently led by the Labor party, will spend A$26bn ($17bn) during the next four years as part of its Queensland Energy and Jobs Plan to wean the coal-dependent state off thermal power sources, budget papers published on 11 June said. An initial A$8.686bn will be delivered in 2024-25 by state government-owned energy businesses including projects for renewables, grid-scale batteries, gas, pumped hydropower, energy storage and the state's planned transmission SuperGrid . The SuperGrid, Copperstring transmission project in the state's northwest and renewable energy zone infrastructure will receive A$8.5bn over the next four years. Another A$16.5bn goes to renewable energy and storage projects, including the planned Borumba and Burdekin-Pioneer pumped hydropower energy storage . Some A$500mn will be spent on distribution network storage, including a local network battery plan, with A$192mn going to transmission grid operator Powerlink's planned training centres in Townsville and Gladstone cities. Another A$4mn will go to an assessment of potential sources of naturally occurring hydrogen in the state, which is also aiming to develop a green hydrogen sector . Queensland is aiming to end its state-owned power utilities' reliance on coal-fired electricity by 2035 . The government this year set emissions reduction targets of 30pc below 2005 levels by 2030, 75pc by 2035 and zero by 2050 under theClean Economy Jobs Act, as national debate continues about Australia's intermediate targets under the UN's Paris climate accord. Queenslanders on 26 October get to choose a government for the next four years, although energy policy is unlikely to figure in the election campaign. The centre-right Liberal-National opposition backed Labor's legislated emissions reduction goals, for which there is no penalty in case of a failure to meet targets. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Canada makes 3 additions to critical minerals list


24/06/10
24/06/10

Canada makes 3 additions to critical minerals list

Houston, 10 June (Argus) — High-purity iron, phosphorus, and silicon metal were added by the Canadian government to the country's critical minerals list. In an analysis of the 2021 list and possible additions, the update kept all 31 minerals from the original list and added high-purity iron, phosphorous, and silicon metal. High-purity iron ore is used in "green" or low-carbon steel. Phosphorus is a fertilizer and can also be used in Lithium Iron Phosphate (LFP) batteries. Silicon metal is used to manufacture chips and semiconductors. Canada reviews minerals recognized as critical every three years with its first list published in 2021. The list is intended to guide public policy and signal government priorities, according to the government. By Alise Pruitt Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU parliament to favour e-fuels, hydrogen: EPP lawmaker


24/06/10
24/06/10

EU parliament to favour e-fuels, hydrogen: EPP lawmaker

Brussels, 10 June (Argus) — EU parliament to favour e-fuels, hydrogen: EPP lawmaker The new EU parliament will be more pragmatic in 2024-2029, favour continuation of the internal combustion engine (ICE) beyond 2035 as well as more flexible rules for low-carbon hydrogen, e-fuels, biofuels, and other CO2-neutral fuels, outgoing member of the European Parliament Markus Pieper told Argus . The centre-right European People's Party (EPP) MEP was the key lawmaker behind the EU's revised renewable energy directive. Will the next parliament favour renewable liquid fuels in spite of provisions for an ICE phase-out? For me, the end of the internal combustion engine (ICE) has not been decided yet. The next European Parliament will likely have a majority supporting the continuation of ICE beyond 2035. This would provide planning security for investments in innovation and facilities for e-fuels, biofuels, and other CO2-neutral fuels, including power-to-x (P2X) fuels. Instead of an outright ban on combustion engines, there should be a phase-out of fossil fuels, enabling us to achieve climate targets more quickly and cost-effectively, without overloading power grids. We need to start working on a clear legal framework today. The blending of new fuels must be standardised and regulated. Do you see the EU parliament favouring greater flexibility in the conditions for renewable hydrogen? Yes, we have a review clause in the renewable energy directive, whereby the European Commission shall submit a report to council [of ministers] and parliament by 1 July 2028. If this assessment indicates that we cannot achieve targets for green hydrogen in industry due to a lack of supply, then we must adjust the definition of green hydrogen. If we do not adapt, the industry may relocate to regions with fewer environmental regulations. We need to be flexible in our legislation and ready to adjust rules due to worldwide competition. How can a new EU parliament improve on existing legislation for 2030 climate and energy goals? The magic word is technological openness. We need to get the best out of all energy resources. Additionally, we need to invest significantly more in the energy transition, especially in the expansion of cross-border green electricity projects. The new European Parliament will likely be more pragmatic and realistic in its energy goals. Does the EU need to rethink the 2040 goals? There's no need to rethink the 2040 CO2 reduction target of 90pc [compared with 1990 levels]. But we need to rethink how to achieve goals and keep a close eye on China and India. Europe must constantly redefine and adapt legislation as necessary. One crucial step is reaching new trade arrangements [to balance higher EU climate standards for domestic industry than global competitors]. We have to be more realistic. Do you think EU 2030 targets for hydrogen are too ambitious? Yes, the target for green hydrogen to represent 42pc of hydrogen used by industry in 2030 is too ambitious from today's point of view. And I currently don't see the capacity to produce enough hydrogen in Europe. As for imports, non-EU producers often do not meet the same standards for producing green hydrogen. This means we'll need to adapt our definition of green hydrogen and consider more low-carbon solutions. The Paris Climate Agreement remains our primary goal. If we can achieve these goals with low-carbon hydrogen, why not? Still, it remains possible to meet the 2030 green hydrogen targets if we adapt the definition. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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