Dimeta pushes ahead with renewable DME projects
Major LPG distributors SHV Energy and UGI International's renewable dimethyl ether (DME) joint venture, Dimeta, is on a mission to quickly ramp up production of the renewable gas. It plans to open its first 50,000 t/yr plant at Teesworks in Teesside, northeast England, by 2024, and another five plants, bringing total output to 300,000 t/yr across Europe and the US, by 2027. By using a "feedstock neutral" technology that allows it to process multiple waste sources, the company believes renewable DME can be "right now". Argus' Waldemar Jaszczyk spoke with Dimeta advocacy manager Sophia Haywood about the company's projects and future plans:
Can you provide an update on your Teesside plant project?
Significant progress has been made since the announcement of our plant location at Teesside, UK, in May. The first phase of detailed engineering design work is now complete as planned, we are in deep discussions with feedstock providers, and we have entered the next phase of engineering works where we will appoint [a final engineering contract] ahead of financial close.
Through our Circular Fuels venture with Kew Technology, we have also joined the Net Zero Teesside Cluster Plan, which is part of the UK Department for Business, Energy and Industrial Strategy's Industrial Decarbonisation Challenge and is managed by Innovate UK. Circular Fuels is an important contributor to this work providing a roadmap to net zero.
Have you secured all the necessary permits and approvals for the plant?
Teesside has a proud industrial heritage, with strong public and political support for these industries, which makes it a prime location to have the first renewable and recycled carbon DME plant in the UK. We are securing planning and permitting approvals, and have received positive feedback throughout the process owing to the strong alignment between our project and the region's net zero vision.
Have you signed any contracts with LPG retailers to sell your renewable DME?
Since the establishment of Dimeta, we have seen a consistently growing interest in renewable and recycled carbon DME from the LPG industry. We are seeing more and more players reaching out to us to discuss supply opportunities for the UK, but also in Europe, the US and beyond. While we can't share commercial information, all the discussions are in progress.
Has the commitment to offer 20pc of the product produced at Teesside to third parties changed?
No, the commitment remains — it is a fundamental aspect of the establishment of Dimeta that the benefit of renewable and recycled DME needs to be realised by the entirety of the LPG industry.
What will be the approximate cost of the Teesside plant project?
The total investment to deliver the facility at Teesside is in the region of £150mn ($185mn). It will create 250 jobs in construction and 50 jobs during operation, providing a boost to the local economy.
In Dimeta's presentation for LPG association Liquid Gas UK's recent Edinburgh conference, your colleague Steven Hallett said that your second commercial-scale production facility would be located in France. Can you confirm this? And if so, what made you choose France and when will you announce the site?
We are currently exploring locations in Europe. There is a considerable LPG market in France with strong decarbonisation objectives — not to mention significant quantities of waste feedstock available for utilisation — making it an attractive geography. We expect to announce the site location in 2023.
Can you tell us some more about Dimeta's plans in the US? That is a potentially huge marketplace.
Propane is the third-most used energy source for homes and businesses in the US, supporting at least 50mn homes and 1.1mn businesses — it is a huge market and there is a significant opportunity for renewable and recycled carbon DME to be blended with propane, helping the sector reduce its emissions as it transitions to net zero. We are developing opportunities in the US and will be announcing these initiatives next year.
Are you looking at the same type of feedstock for future plants or will you use different types?
Dimeta is feedstock neutral when producing renewable and recycled DME. While we are using waste feedstock for our first plant in Teesside, and upcoming plants in Europe and the US are expected to use waste, we are also exploring opportunities with different feedstocks and processes. In addition, technologies at an earlier phase of development, such as power-to-X, could also be of interest for Dimeta further down the line utilising feedstock such as hydrogen and CO2.
What were the reasons behind Dimeta's recent decision to collaborate with the renewable methanol and ethanol producer Enerkem?
In October 2022, we entered into a collaboration with Enerkem, one of the players with the most extensive expertise in waste gasification for producing molecules such as methanol and ethanol. We are working with them in addition to our projects with Circular Fuels. The collaboration is focused on exploring the opportunity for the development of renewable and recycled carbon DME plants in Europe and the US at a larger scale, such as 150,000 t/yr, and with a strong focus on maximising CO2 recycling.
Does this larger capacity refer to the next five 50,000 t/yr plants planned by 2027 or future projects?
Dimeta has an overarching goal of producing 300,000t of renewable and recycled DME a year by 2027. Our first partnership with Kew Technology to create Circular Fuels is one route to delivering this — the plants we develop here are modular, so they can be scaled up or down. These plants are then complemented by additional partnerships, such as our recent arrangement with Enerkem. The size of our upcoming plants is not public yet, but it is ultimately dependent on commercial and market drivers. The important milestone is reaching 300,000t by 2027, so the combination of technology and partners will depend on relative project economics and the speed of development.
Are there any other partnerships you are pursuing with other companies for future developments?
Dimeta is looking to establish more partnerships to deliver a net zero future for the LPG industry, through renewable and recycled carbon DME. Our partnerships with Kew Technology to create Circular Fuels, and now with Enerkem demonstrate that we are looking for collaboration across the whole value chain, from innovative technologies for DME production, to integrating DME into the LPG supply chain, or financing investments in DME infrastructure, for example. You can expect to hear more about our new partnerships in the coming months.
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LPG World editorial: Fragile stability
LPG World editorial: Fragile stability
Subtle shifts in power following months of elections around the world could provide opportunities for the LPG industry London, 16 July (Argus) — The energy policy ramifications of several significant governmental elections that have taken place over the past few months are starting to come into focus. For the LPG market, all presently point to more of the same, while the climate and energy transition objectives that will shape the sector's future have so far escaped derailment from far-right forces in all but the US' yet-to-be-held presidential race. The recent campaigns in India and Mexico, two major LPG markets, ended in the unsurprising re-election of their two governing parties. Indian prime minister Narendra Modi secured a third term in June after a campaign that promised competitive LPG pricing and a recommitment to the expansion of the market to less affluent areas that still lack access to clean cooking. In the same month, Mexico's Claudia Sheinbaum won her race to succeed President Andres Manuel Lopez Obrador as the left-wing Morena party's incumbent. His government has pursued nationalist energy policies that have caused friction with private-sector LPG operators. This is unlikely to deviate, with some concerned that energy reforms could even be repealed. Maintaining LPG price controls and tackling theft and black-market practices should remain priorities regardless when she takes over in October. European Parliament elections, also held in June, saw significant gains for far-right and right-wing groups, seen as a backlash to green policies and rising costs. But the ruling centre-right EPP group ultimately won that race, leaving Ursula von der Leyen on track for a second term as European Commission president. This should keep the EU's bold climate and energy objectives under the Green Deal on track, although a softening, more pragmatic approach could emerge following a broader parliamentary shift of power from the centre left to the centre right, delegates at last month's Liquid Gas Europe Congress in Lyon heard — something that could benefit the LPG industry. France's snap election at the turn of this month, following a surprise surge in French votes for the far right in the European poll, looked at one stage to be ending in victory for the far-right National Rally party. But a coalition of left-wing parties unexpectedly secured enough votes to beat the National Rally into third position, while falling short of securing a majority, ending in a hung parliament. Outgoing president Emmanuel Macron has urged the New Popular Front coalition to ditch the far-left Unbowed party and join his centrist group, which came second, to ensure a majority. What government emerges is uncertain, but for now the country's energy transition and climate policies are secure and legislative stability is likely. The UK had no problem securing a majority, as the incoming centre-left Labour party ousted the centre-right Conservatives in a landslide defeat this month. A huge parliamentary majority will give prime minister Keir Starmer's government free rein to pursue its energy and climate goals, yet these bear a striking resemblance to Boris Johnson's during his premiership in 2019-22. The forming of a new state-owned energy company could be boon or bane for LPG. But the UK LPG sector has wasted no time wooing Labour as it advocates for the protection of gas boilers in rural areas and more support to produce renewable alternatives. American non-fiction The US is conversely heading for another U-turn on its energy and climate policy trajectory as Donald Trump inches nearer to a return to office in a campaign that almost feels unreal. Should he succeed, he is expected to once again pull out of the Paris climate deal and reinstitute a favourable regime for licensing oil and gas wells and LNG projects — a possible boon for LPG supplies. Trump's seeming obsession with economic decoupling from China is also likely to disrupt global trade. Yet Chinese petrochemical firms seem unfazed, as they invest in ethane-fed capacity and ships to import more US supply. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Heavy rain, wind expected in Houston from Beryl: Update
Heavy rain, wind expected in Houston from Beryl: Update
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Beryl aims between Corpus Christi, Houston
Beryl aims between Corpus Christi, Houston
Houston, 7 July (Argus) — Tropical storm Beryl was expected to regain hurricane strength today before coming ashore between Corpus Christi and Houston, Texas, early Monday. As of 11am ET today the center of the storm was about 195 miles southeast of the refining and oil export hub of Corpus Christi with maximum sustained winds of 65mph. Moving northwest at 10mph, its landfall was expected at about 2am ET Monday, according to the National Hurricane Center (NHC). The track of the storm's landfall has moved toward the east for the past two days, moving Corpus Christi out of the area likely to see the highest winds and storm surge. The most powerful winds and storm surge should be centered on areas near Matagorda Bay, according to the forecast, with 4-6ft of storm surge expected. Galveston Bay, which include numerous refineries and petroleum export terminals along the Houston Ship Channel and Texas City, was expected to see 3-5ft of storm surge. The port of Corpus Christi was closed to all traffic as of Saturday afternoon while the ports of Houston, Galveston, Freeport and Texas City were set to "Yankee" status at 8am ET today, suspending all inbound traffic, bunkering and lightering operations. The Houston-area ports were expected to close to all traffic later today as the storm nears landfall, according to the US Coast Guard. Disruptions to US Gulf oil and gas operations so far appear to be limited given Beryl's approach to the west of most US offshore and gas operations. Mexican offshore operations were halted late last week when the storm first entered the Gulf after passing over the Yucatan peninsula. Early last week Beryl was a Category 5 storm, which made it the strongest on record for the month of July, as it left a trail of destruction in the Caribbean. The second named storm of the 2024 Atlantic hurricane season, Beryl followed tropical storm Alberto, which came ashore in northeastern Mexico late last month. This year's Atlantic hurricane season is expected to be more active than normal, according to the US National Oceanic and Atmospheric Administration, with 4-7 major hurricanes that pack sustained winds of 111mph or higher possible. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US adds 206,000 jobs in June, jobless rate ticks up
US adds 206,000 jobs in June, jobless rate ticks up
Houston, 5 July (Argus) — The US added a solid 206,000 jobs in June while job gains in the prior two months were revised downward and wage gains cooled. The job gains, which beat analyst estimates, followed downwardly revised 218,000 job gains in May and 108,000 gains in April, the Bureau of Labor Statistics (BLS) said today, for a combined downward revision of 111,000 for the prior two months. The US generated a monthly average of 220,000 jobs in the 12 months through May. Economists expected gains of about 190,000 in June, according to a survey by Trading Economics. The jobless rate ticked up to 4.1pc, the highest in more than two years, from 4pc. Still, the unemployment rate remains near five-decade lows. Construction added 27,000 jobs, while manufacturing lost 8,000 jobs. Gains also occurred in government, health care and social assistance. Average hourly earnings rose by 3.9pc from a year earlier, down from a 4.1pc annual gain in the prior month and the lowest in three years. Futures markets after the jobs report indicated a 71.8pc chance the Fed will cut its target rate by a quarter point from a 23-year high in September, up from 68.4pc odds on Wednesday. The Federal Reserve, after its last policy meeting in mid-June, had penciled in one likely quarter point rate cut was likely this year, paring that from a likely three cuts shown in March. Still, it also said it needs to see evidence that inflation is "sustainably" slowing towards its 2pc target before beginning to cut rates from 23-year highs. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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