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Hydrogen generators could replace diesel: Microsoft

  • Market: Electricity, Hydrogen, Oil products
  • 29/07/22

US technology firm Microsoft said it hopes to eventually replace diesel generators at all its data centres, having successfully trialled a 3MW hydrogen fuel cell system as backup power generation for a site in upstate New York. It said the technology could work for a range of industries.

The 3MW fuel cell system, comprising a pair of 40ft shipping containers each holding 18 proton exchange membrane (PEM) fuel cells, was built by US hydrogen firm Plug, which is headquartered in the state.

The 125kw fuel cells are the largest Plug has made, and the 3MW system is company's biggest application, Microsoft said. Microsoft has been gradually increasing the size of its hydrogen trials since 2018, as part of its plan to be carbon negative by 2030.

Plug is focused on commercialising the system and Microsoft said it will deploy one of the second-generation systems at a data centre, probably in a location where air-quality standards prohibit diesel generators.

The grid-powered data centres require backup in case of power outages, and require power equivalent to the consumption of 600 homes.

"Once green hydrogen is available and economically viable, this type of stationary backup power could be implemented across industries, from data centres to commercial buildings and hospitals," it said. Microsoft may now look to deploy around 1,000 fuel cell generators, the company's director of data centre research Sean James said.

One hurdle would be building a robust supply chain to deliver sufficient scale, he said, and another is the high cost of renewable hydrogen. But this is falling, and hydrogen will eventually become cost-competitive with power from diesel, the company said.

Microsoft and its peers can catalyse the scale-up of renewable hydrogen and fuel cells, the firm's chief environmental officer Lucas Joppa said.

"If we feel confident in using these to ensure continuity of our data center services, that's a big measure of faith," Joppa said.


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17/01/25

US grants Plug Power $1.7bn H2 loan guarantee: Update

US grants Plug Power $1.7bn H2 loan guarantee: Update

Updates with details throughout Houston, 17 January (Argus) — The US Department of Energy (DOE) has provided fuel cell system and electrolyzer manufacturer Plug Power a $1.7bn loan guarantee to finance up to six hydrogen production projects in the US. A planned wind-powered hydrogen production facility in Graham, Texas, will be the first project to receive funding from this new line of financing, the company said. Construction on the 45 metric tonnes/d plant is expected to begin within a month and conclude in about 18 months, doubling the company's current capacity, Plug Power chief executive Andy Marsh said. Upon completion, the plant is expected to be the largest green hydrogen plant outside of China, Marsh said. The loan guarantee comes in the waning days of President Joe Biden's administration, which has sought to kickstart a hydrogen economy to power the energy transition. With president-elect Donald Trump vowing to claw back unspent funds from Biden's signature climate legislation the Inflation Reduction Act, hydrogen proponents are also highlighting their industry's economic and national security benefits . "We believe the hydrogen economy aligns closely with national security interests, ensuring that the US remains at the forefront of energy technology development and deployment on a global scale," Marsh said. Plug has invested $250mn into the Texas facility and built about 14 miles of transmission lines to connect to a nearby NextEra Energy wind farm that will power the facility, Marsh said. Plug is also considering expanding its facility in Woodbine, Georgia, to 30 to 35 mt/d from its current 15mt/d capacity, with Marsh saying it will likely be the second project in the company's portfolio to benefit from the new credit line. Elsewhere, Marsh said the company is looking for opportunities across the US. "We want to make sure that hydrogen is available throughout the country, so it's a broad footprint that we will be looking at." Plug Power currently has a liquid hydrogen production capacity of about 45 mt/d at plants in Georgia, Tennessee and Louisiana and manufactures electrolyzer stacks at its factory in Rochester, NY. A last-minute flurry of tax incentives intended to spur hydrogen development and further the outgoing administration's goal of a decarbonized grid, along with the loan, will make expansion in the US much easier, said Marsh. Finalized 45V guidelines for hydrogen production tax credits and a new technology-agnostic approach to 48E incentives are likely to unleash activity across the industry, said Marsh. "We sell things like electrolyzers and mechanical products, so we do think the combination of 48E and 45V will be very, very beneficial to our business." Plug also signed a deal this week with Allied Green Ammonia (AGA) to supply a 3GW electrolyzer for a hydrogen-to-ammonia plant under development in Australia. AGA is expected to make a final investment decision by the second quarter of this year. If AGA greenlights the project, Plug will begin manufacturing and delivery of proton exchange membrane electrolyzers starting in the first quarter of 2027. Marsh is confident the company's expansion plans and broader hydrogen incentives will withstand scrutiny from the incoming administration. Oil and gas executives applaud 45V guidelines that extend incentives to natural-gas based projects that include carbon capture technology, while expanded production brings high-paying, blue collar jobs to many Republican-voting districts, Marsh said. "We're creating factory jobs in this industry." By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US grants Plug Power $1.7bn H2 loan guarantee


17/01/25
News
17/01/25

US grants Plug Power $1.7bn H2 loan guarantee

Houston, 17 January (Argus) — The US Department of Energy has provided US hydrogen fuel cell system manufacturer Plug Power Plug a $1.7bn loan guarantee to finance up to six hydrogen production projects in the US. A planned wind-powered hydrogen production facility in Graham, Texas, will be the first project to receive funding from this new line of financing, the company said. The loan guarantee comes in the waning days of President Joe Biden's administration, which has sought to kickstart a hydrogen economy to power the energy transition. With president-elect Donald Trump vowing to claw back unspent funds from Biden's signature climate legislation the Inflation Reduction Act, hydrogen proponents have started to highlight their industry's economic and national security benefits . "We believe the hydrogen economy aligns closely with national security interests, ensuring that the US remains at the forefront of energy technology development and deployment on a global scale," Plug Power chief executive Andy Marsh said. Plug Power has a liquid hydrogen production capacity of about 45 metric tonnes/d at plants in Georgia, Tennessee and Louisiana. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Italy's Falconara refinery shut for winter maintenance


17/01/25
News
17/01/25

Italy's Falconara refinery shut for winter maintenance

London, 17 January (Argus) — Italian refiner API's 83,000 b/d bitumen-producing refinery at Falconara on the country's Adriatic coast is in the middle of a planned full-scale maintenance shutdown for a month-long period through to early February, a source familiar with the refinery's operations said. It is routine to shut down during the winter period when demand for road paving is low, the source said, adding that the halt at Falconra began in late December and is scheduled to be completed in late January or early February. Argus tracking shows no crude has been delivered to the refinery so far in January and there are no crude cargoes on route. Falconara is one of several bitumen-producing plants across Europe that halt production during the winter period. In Mediterranean markets such as Italy, paving and other construction activity usually resumes in February or March, depending on weather conditions. Italian bitumen production and exports are expected to be significantly dented by planned maintenance at Algerian firm Sonatrach's 198,000 b/d Augusta refinery in Sicily from February to May, one of a number of shutdowns affecting refineries in the region over the next few months. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Houthis signal Red Sea attacks pause after Gaza truce


17/01/25
News
17/01/25

Houthis signal Red Sea attacks pause after Gaza truce

Dubai, 17 January (Argus) — The Yemen-based Houthi militant group said it will monitor implementation of a temporary ceasefire between Israel and Gaza-based Hamas, raising the possibility of a reprieve for shipping in the Red Sea, but will remain prepared for military action if the deal is breached. "Our position regarding the situation in Gaza is linked to the position of our brothers in the Palestinian [armed] factions," Houthi leader Abdul-Malik al-Houthi said in a televised speech on 16 January. "We will continue to monitor the stages of implementation of the ceasefire agreement in Gaza, and any Israeli [violation], we will be directly ready to support militarily the Palestinian people." Al-Houthi's remarks suggest a halt in his Iran-backed group's campaign against shipping passing through the mouth of the Red Sea and against Israel directly. But with no clarity if he was referring to attacks on Israel or shipping lanes, shipping firms are likely to remain cautious about returning to the Red Sea. The Houthis began attacking commercial vessels with western and Israeli affiliations in the Red Sea and Gulf of Aden following an escalation of fighting between Hamas and Israel. Al-Houthi said his group have carried out 1,255 operations, including using ballistic missiles, drones and gunboats, since November 2023. But the risk of an attack in the Red Sea remains despite the ceasefire between Hamas and Israel, tanker owner Frontline said today. "We [are] all hopeful with the ceasefire, but… any ceasefire will be vulnerable with risk of [a] crew being caught if it breaks," Frontline chief executive Lars Barstad wrote on X. The possibility of an attack has compelled many ship operators to forego the Suez Canal in favor of longer voyages around the Cape of Good Hope in the last year, adding time and cost to movement of commodities. Transit of liquid and dry cargoes through the Suez Canal totaled 343mn t last year, less than half the 763mn t in 2023, according to data from Kpler. The ceasefire deal was announced late on Wednesday, 15 January, by Qatar and the US, two of the three countries that have been helping to mediate the negotiations between Israel and Hamas. Egypt is the third. Israel's security cabinet will meet today to sign off on the deal, and will send it for approval from the full government. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Mexico’s oil states led labor market losers in 2024


16/01/25
News
16/01/25

Mexico’s oil states led labor market losers in 2024

Mexico City, 16 January (Argus) — Mexico's oil and gas-dependent states led state job losses in 2024, driven by a sharp contraction in spending by state-owned Pemex and the completion of the Olmeca refinery, according to energy market sources and state data, even as two-thirds of the country's states posted job growth. Annually, the total employment in Mexico grew by 213,993 jobs in 2024, 67pc fewer than the 651,490 jobs added in 2023, according to the Mexican social security (IMSS) institute's tally of formal jobs, which have full benefits like better access to housing credits and public medical services. The deceleration in the number of jobs created last year adds to signals of a Mexican economy that was cooling as the year progressed, according to economists and energy market sources. "In 2024, the second lowest generation of jobs in the last 15 years was recorded, only after 2020, the year in which the Covid-19 pandemic hit," according to a report from Mexican think tank Mexico Como Vamos. Tabasco state, one of the most important for the energy sector in Mexico, led the reduction in employment among the 11 states that experienced job losses during 2024. Tabasco lost 28,675 jobs over the year, for a 12pc annual decline in employment in the state, according to IMSS data. Twenty-one states, including the capital, posted job growth. Campeche, the state with the second biggest annual percentage of job losses, and Tamaulipas, the other state with a high dependence on the oil sector, also reported significant declines in 2024, with annual formal job losses of 5,952 and 3,120, representing 4pc and 1pc decreases from a year earlier, respectively. These IMSS figures only account for formal jobs registered with the institute, which provide access to medical, pensions, and housing credits, and totaled 22.24mn as of December. The official statistics agency Inegi counts employment nationwide at 59.5mn as of the third quarter last year. Inegi's count of employment includes the informal sector, made up of jobs without social security and other benefits. Inegi's estimates put the informal labor sector at over 54pc of all jobs. According to IMSS, the country lost 405,259 jobs in December compared with November, the largest loss recorded for that month since 2000. Still, December is typically marked by heavy job losses because of seasonal adjustments. But last year the final month's tally was pulled even lower than normal by overall weak hiring over the year, Inegi said, even as total job growth was positive for the full year. While the labor situation in Mexico worsened in 2024 because of the weakening of the national economy, including a sharp depreciation of the peso to the dollar, the decline has hit the states most closely tied to the oil and gas sector and Pemex spending, said Carlos Ramirez, founder of consultancy Integralia. Tabasco hangover "Tabasco benefited greatly from the investment poured into Pemex by the administration of AMLO (former president Juan Manuel Lopez Obrador), Ramirez said. "This is going to change now with the (Claudia) Sheinbaum administration, and the state will suffer a hangover as the new government reduces its support for the oil and gas industry." Still, the national unemployment rate is low, at 2.6pc in November, according to Inegi. And the country added 361,000 jobs in the third quarter from a year earlier, according to Inegi's broader base of data. But the economy was slowing in the second half of 2024. Growth in gross domestic product slowed to an annual 1.6pc in the third quarter from 2.1pc in the second quarter, according to Inegi. Inegi's IGAE, an index that tracks the real economy, showed that the Mexican economy contracted 0.73pc in October, as economists lowered growth estimates for the Mexican economy for this year. Pemex chief executive Victor Rodriguez in early October implemented a 20pc cut to the company's upstream budget, aiming to save Ps26.78bn ($1.32bn). This decision, combined with delays in payments for contracts and a halt in new service agreements, severely impacted local companies in Tabasco and Campeche, according to oil services company association Amespac. Some companies announced layoffs as Pemex's financial constraints rippled through the supply chain. Part of Tabasco's workforce reduction could also be tied to the near-completion of the 340,000 b/d Olmeca refinery, said Jesus Carrillo, an analyst at think tank IMCO. While the major construction phases have concluded, the facility remains in a testing phase, contrary to Pemex's previous promises of full operations in 2024. Despite the recent downturn, heavy Pemex spending during the administration of former president Lopez Obrador made Tabasco the leading state in job creation between December 2018 and December 2024, Ramirez said. But with the refinery now completed and Pemex projecting further budget cuts for 2025, analysts expect labor market challenges in oil-reliant states to persist. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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