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Methanol-to-jet nears ASTM approval in SAF supply boost
Methanol-to-jet nears ASTM approval in SAF supply boost
London, 19 June (Argus) — Methanol-to-jet (MTJ) fuel is nearing full approval for use in commercial aircraft, potentially opening a major new route for producing sustainable aviation fuel (SAF) from renewable methanol. The MTJ pathway has passed the key stages of the process by ASTM International, the industry body that approves new fuel for use in aircraft. Industry sources expect remaining formalities to be completed in coming weeks. ASTM's committee recently approved Honeywell's MTJ pathway, the US-based technology provider said this week. This could unlock SAF production from feedstocks such as biomethanol and e-methanol, broadening supply beyond the waste oils and fats used in most SAF production. But the development extends beyond Honeywell. Its technology and fuel samples were used in the qualification work, but the MTJ pathway would be available to all producers operating within the approved specification, when that is adopted by ASTM. The MTJ pathway has passed balloting within ASTM and limited comments remain to be resolved, according to participants. They expect remaining approval steps to be completed at ASTM meetings in Chicago next week, paving the way to include the pathway the next time the organisation revises its D7566 aviation fuel standard. ASTM was not immediately available to confirm the news. The organisation typically confirms pathway approvals when it updates its standard. Honeywell expects the public update to come in July, Honeywell UOP president Rajesh Gattupalli told Argus . New aviation fuel pathways must undergo extensive testing and review before they can be approved. The MTJ process has taken several years. The approval removes one of the main technical barriers facing MTJ and allows the sector to focus on project economics and investment decisions. Until now, lack of ASTM approval has held companies back from taking commercial decisions. "No bank is going to give you a loan without an ASTM certification. No government is going to give you an incentive without an ASTM certification," Gattupalli said. "You don't get an offtake from any airline company without an ASTM certification." Honeywell has licensed its technology to multiple developers, which have been lining up offtake deals, financing, and incentives while waiting. ASTM approval allows them to "move to the next stage," Gattupalli said. The licensor sees most MTJ traction in Europe, where mandates have been spurring demand for SAF, and in China and India, where producers can benefit from strong potential in renewables, he said. Some companies plan to make biomethanol from biomass-derived syngas, while others eye e-methanol from renewable hydrogen and captured CO2. Some hybrid projects would make a mixture of both. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Green H2 electrolyser sector enters consolidation: IEA
Green H2 electrolyser sector enters consolidation: IEA
London, 19 June (Argus) — The global electrolyser manufacturing industry is entering a consolidation phase as overcapacity, weak demand and financial strain force a shake-out, Paris-based energy watchdog the IEA said. Global electrolyser manufacturing capacity rose to nearly 58 GW/yr at the end of 2025 from 46 GW/yr a year earlier , the IEA estimated in its Global Hydrogen Review 2026 . But actual electrolyser output in 2025 was less than 5GW, the IEA said. This means that the 58 GW/yr had a utilisation rate of around 9pc in 2025, similar to the 10pc the IEA estimated in last year's review. Early signs of consolidation include the purchase of assets from bankrupt firms and firms reassessing strategies , the IEA said. Significant manufacturing overcapacity is expected to persist towards 2030, the watchdog said. It expects an average of 9 GW/yr of deployments based on projects that have reached a final investment decision or show strong potential to be realised. Manufacturing capacity could climb to nearly 95 GW/yr by 2030 if announced expansions go ahead, but that is about 90 GW/yr lower than the IEA projected a year earlier. Committed capacity — covering factories under construction or past FID — totals 64 GW/yr. Tight financial liquidity has become a growing concern for electrolyser makers, as many report widening losses because of revenues lagging upfront spending on building factories, the IEA said. Firms are also reassessing their business strategies, showcased by US engine maker Cummins halting electrolyser sales after filling existing orders, the watchdog said. Firms with diversified income are better placed to ride out the downturn, the IEA said. Of the 58 GW/yr of capacity, about 64pc of capacity sits with large, broad-based companies, while the rest belongs to specialised firms more exposed to market swings. The strain on electrolyser firms also poses a risk to reducing the cost of renewable hydrogen production, as firms leaving the sector could weaken the sector's innovation pipeline, the IEA said. China has 60pc of global manufacturing capacity, ahead of Europe at 20pc and the US at 10pc. Installing a Chinese-made electrolyser in China cost $500-1,100/kW in 2025, against $1,900-2,500/kW for systems made outside China. The gap narrows sharply for Chinese kit installed abroad, where engineering, procurement and construction and contingency costs make up much of the total, the watchdog said. Costs outside China could fall to $1,500-1,900/kW by 2030 on FID-backed and strong-potential projects, approaching China's 2025 range, the IEA said. But that hinges on more orders to lift factory use, and projects are still struggling to secure FIDs. By Chingis Idrissov Electrolyser manufacturing capacity by region GW/yr Announced manufacturing capacity by 2030 % Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan's Cosmo Energy mulls LNG-fired power plant
Japan's Cosmo Energy mulls LNG-fired power plant
Osaka, 19 June (Argus) — Japanese energy firm Cosmo Energy is considering building a gas-fired power plant, given that domestic electricity demand is projected to continue rising. No details of the project framework have been decided. The company unveiled the considerations in its business plan to 2035, which was released on 18 June. The firm is mulling a gas-fired power plant while aiming to develop its renewable energy capacity, including wind and solar. LNG-fired generation can counter imbalances in renewables output. The firm aims to raise renewable capacity to 490MW by the April 2028-March 2029 fiscal year, up from 364MW in 2025-26. It also plans to increase power sales by 35pc to 3.1TWh over the same period. But power sources need to balance economic viability with decarbonisation, without being limited to green energy, the company said. Cosmo is also looking to expand its upstream exposure to natural gas beyond its traditional crude oil business. Details, such as location and timeline, have yet to be decided as the plan remains under consideration. The company may explore such opportunities in the UAE, where it plans to expand oil production . It remains unclear whether Cosmo will also move into liquefaction and LNG trading, even if it expands into upstream gas production and gas-fired generation. Fellow energy firm Idemitsu decided in March to invest in MidOcean Energy, an LNG company backed by US investment firm EIG, with the possibility of engaging in LNG trading. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
South Korea eyes single state-owned power utility
South Korea eyes single state-owned power utility
London, 18 June (Argus) — South Korea's five state-owned utilities are expected to be merged into a single utility — a move that could reshape the country's thermal coal procurement strategy. The country's climate and energy ministry in an interim briefing on Thursday released the findings of a government-commissioned study that identified consolidating five state-run utilities into one utility as the preferred option. The proposal was based on four key principles — strengthening the implementation of the energy transition, reducing financial risks, improving operational efficiency and facilitating a " just transition ". The merger would reduce thermal coal procurement costs through joint purchasing, the study said. "The restructuring of state-owned utilities is not simply about merging companies but about reorganising them into a more competitive business structure capable of responding to the energy transition," climate and energy minister Kim Sung-hwan said. Under the current system, the five state-run utilities procure coal independently and compete to secure the lowest-cost fuel supplies. The merger would prioritise supply security and fuel quality over price, market participants said. Market participants also expect the merger to shift coal procurement towards long-term contracts with major mining companies capable of ensuring stable supply, reducing reliance on spot purchases. Larger tender volumes are also expected to favour large suppliers, they said. The country's independent power producers (IPPs) are likely to maintain a more flexible procurement strategy, balancing spot purchases and long-term contracts while continuing to prioritise cost-effective fuel supplies, sources said. But the merger is unlikely to materialise in the near term, market participants said, owing mainly to the complexity of integrating five utilities with operations spread across the country. They cited challenges such as harmonising different operational systems, deciding on the location of the merged utility's headquarters and navigating regional interests. The restructuring would also require enabling legislation, potentially extending the timeline, they added. South Korea's five state-owned utilities split from parent company Kepco in 2001 as part of power sector reforms aimed at boosting competition and efficiency. They are projected to account for about 83pc of South Korea's thermal coal demand and 89pc of coal-fired output this year, according to Argus' calculations. The merger would have little immediate impact on thermal coal demand, according to market participants, because it would change who operates coal-fired plants rather than the number of plants in operation. Coal-fired plant retirements will continue in line with the country's power supply and demand plan regardless. But market participants said the government's commitment to the energy transition and planned coal phase-out could gradually weigh on thermal coal demand over the longer term. The interim report released on Thursday reaffirmed the South Korean government's target to phase out coal-fired power generation by 2040 and expand renewable capacity to 100GW by 2030 . The transition would place greater emphasis on grid balancing, system flexibility and power stability rather than on simply increasing power generation, market participants said. The energy ministry plans to finalise its plan for reorganising the functions and structure of South Korea's state-owned utilities next month after consulting experts and stakeholders. By Dayu Park HQ location of S Korea's state-owned utilities Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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