Latest market news

S Korea outlines clean hydrogen certification system

  • Market: Hydrogen
  • 18/04/23

South Korea outlined its clean hydrogen certification system at a briefing session on 17 April, with a proposed emissions standard for clean hydrogen and support measures.

The clean hydrogen certification system will certify that greenhouse gas (GHG) emissions in the process of producing or importing hydrogen were below a certain level and will support incentives, according to the country's trade and industry ministry (Motie).

Motie noted that other countries have also been promoting clean hydrogen through their policies, such as the US' Inflation Reduction Act (IRA) that provides tax credits for clean hydrogen production and the EU's carbon border adjustment system that includes hydrogen.

The GHG emissions standard to be certified as clean hydrogen in South Korea was proposed at 4kg of carbon dioxide equivalent (CO2e) for every kg of hydrogen produced, with emissions to be calculated from the extraction of feedstock to hydrogen production. But emissions from ships will be temporarily excluded. This is largely in line with proposed emissions standards for clean hydrogen in other countries at 4kg of CO2e for the US, 3.38kg for the EU and 3.4kg in Japan.

There were also two different types of support measures proposed for clean hydrogen in South Korea, a differential rate or a flat rate support measure. The UK, Germany and Japan designed and announced differential support measures to support clean hydrogen's lack of economic feasibility in its early stages, while the US is providing flat rate support through the IRA. South Korea will decide on a support method after studying the two proposals.

Motie also in March revealed more details on a hydrogen power bidding market that is scheduled to open by June. It said then that the clean hydrogen market will open in early 2024 after the clean hydrogen certification system and relevant laws are enacted.

The ministry previously in 2022 announced plans to implement the hydrogen certification system by 2024. An amendment to the Hydrogen Act was passed in 2022 to establish a legal basis for the creation of a clean hydrogen market, Motie said.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
18/07/24

EU’s von der Leyen re-elected as Commission president

EU’s von der Leyen re-elected as Commission president

Brussels, 18 July (Argus) — The European Parliament today approved Ursula von der Leyen's re-election as president of the European Commission. Nominated by EU states in June, von der Leyen received 401 votes, by secret ballot, from parliament's 720 newly elected members. Von der Leyen called for continuing climate and energy policy in her 2024-29 mandate to achieve greenhouse gas (GHG) cuts of at least 90pc by 2040 from 1990 levels. "I have not forgotten how [Russian president Vladimir] Putin blackmailed us by cutting us off from Russian fossil fuels. We invested massively in homegrown cheap renewables. And this enabled us to break free from dirty Russian fossil fuels," said von der Leyen, promising to end the "era of dependency on Russian fossil fuels". She did not give an end date for this, nor did she specify if this includes a commitment to end Russian LNG imports. Von der Leyen went on to detail political guidelines for 2024-29. In the first 100 days of her new mandate, she pledged to propose a "clean industrial deal", albeit without giving concrete figures about how much investment this would channel to infrastructure and industry, particularly for energy-intensive sectors. The clean industrial deal will help bring down energy bills, she said. Von der Leyen told parliament the commission would propose legislation, under the European Climate Law, establishing a 90pc emission-reduction target for 2040. Her political guidelines also call for scaling up and prioritising clean-tech investment, including in grid infrastructure, storage capacity, transport infrastructure for captured CO2, energy efficiency, power digitalization, and deployment of a hydrogen network. She will also extend aggregate demand mechanisms beyond gas to include hydrogen and critical raw materials. Her political guidelines note the dangers of dependencies or fraying supply chains, from Putin's "energy blackmail" or China's monopoly on battery and chip raw materials. Majority report Passing the necessary legislation to implement her stated policies will now require approval from EU states and from parliament. Unless amplified by Germany's election next year, election victories by far-right parties in France and elsewhere appear not to threaten EU state majorities for specific legislation. Parliament's political centre-left S&D and liberal Renew groups, as well as von der Leyen's own centre-right EPP, have elaborated key policy requests . These broadly call for the continuation of von der Leyen's Green Deal, the set of legislation and policy measures aimed at 55pc GHG emission reduction by 2030, compared with 1990 levels. A symbolic issue for von der Leyen to decide, or compromise on, is the internal combustion engine (ICE). Her EPP group wants to stick to technological neutrality and to revise the phase-out, by 2035, of new ICE cars if they cannot run exclusively on carbon-neutral fuels. The EPP wants an EU e-fuel, biofuel, and low-carbon fuel strategy. Von der Leyen's guidelines reflect the need to gain support from centre-right, centre-left, and greens. For the ICE phase-out, she said the 2035 climate neutrality target for new cars creates investor and manufacturer "predictability" but requires a "technology-neutral approach, in which e-fuels have a role to play." She made no mention of carbon-neutral biofuels. It will be impossible for von der Leyen to satisfy all demands in her second mandate. That includes policy asks put forward by the EPP, ranging from a "pragmatic" definition of low-carbon hydrogen, market rules for carbon capture and storage, postponing the EU's deforestation regulation, to catering more for farmers, even by scrapping EU wildlife protection for wolves and bears. EU member states are expected to propose their candidates for commissioners in August, including those responsible for energy, climate, and trade policies. When parliament has held hearings for candidates in late October, von der Leyen's new commission would then be subject to a final vote. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more
News

EU must review 'overly ambitious' H2 targets: Audit


17/07/24
News
17/07/24

EU must review 'overly ambitious' H2 targets: Audit

Hamburg, 17 July (Argus) — The EU needs a "reality check" on "overly ambitious targets" for renewable hydrogen production and imports, the European Court of Auditors (ECA) has said. The European Commission's RePowerEU targets of producing 10mn t/yr renewable hydrogen by 2030 and importing the same amount were based on "political will" rather than "a robust analysis," the ECA said in a report on EU renewable hydrogen policy. The bloc is "unlikely to meet" the targets "based on available information from member states and industry". Some industry participants have for a long time criticised the EU goals as unrealistic . In a response to the ECA's report, the commission said it "acknowledges the challenges" associated with reaching these "aspirational targets". The commission said it will "assess whether the aspirational targets can be reached," but noted it "cannot commit to any update at this stage". It said the underlying objectives "are still valid" and that "a downward review of the targets" could increase uncertainties for investors. But earlier this year, an assessment in which the commission set out scenarios for the energy sector anticipated much lower domestic renewable hydrogen production of around 3mn t/yr by 2030 . The commission told Argus at the time that the RePowerEU projections for 2030 would be reviewed once member states have submitted updated national and energy climate plans (NECPs). These were due by the end of June, but only a few member states submitted them on time . Responding to the ECA report, the commission said it would accept a recommendation to review its hydrogen strategy more broadly — including incentive mechanisms, the prioritisation of funds and the role of imports compared with domestic production — noting it would take the NECPs into account for this. EU funding could amount to €18.8bn in 2021-27, based on the ECA's estimates. But the commission itself "does not have a full overview of needs or of the public funding available," the ECA said. Funding opportunities are "scattered between several programmes," which makes it "difficult for companies to determine the type of funding best suited for a given project," it said. The ECA acknowledged that progress has been made on key regulatory areas, including a definition of renewable hydrogen. But the body notes that this took a long time, leading to investment decisions for projects being delayed. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Panama clears $10bn biofuels project


15/07/24
News
15/07/24

Panama clears $10bn biofuels project

Kingston, 15 July (Argus) — Panama's government has approved the construction of a $10bn biofuels project owned by US firm SGP BioEnergy. The project is now waiting a final investment decision that the firm expects will be reached by the end of this year. Japan's industrial conglomerate Sumitomo Group will build the Ciudad Dorada biorefinery on 130 hectares (ha) in the Colon free zone, SGP BioEnergy said. The project will produce 180,000 b/d of sustainable aviation fuel (SAF) to be exported mainly to the US market and 405,000 t/yr of low-carbon hydrogen. "For the national government, it is important to promote fair and inclusive processes that lead us to migrate to systems dominated by renewable energy or energy from clean sources for the benefit of the country" Panama's commerce and industry minister Julio Molto said. The plant will be developed in three phases of 60,000 b/d each. The first phase is expected to be completed in the first quarter of 2027 and the following phases within 15-18 months each. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Shell quits Swedish e-SAF plant plan


05/07/24
News
05/07/24

Shell quits Swedish e-SAF plant plan

Hamburg, 5 July (Argus) — Shell has exited a planned renewable hydrogen-based sustainable aviation fuel (e-SAF) project in Sweden, and it and utility Vattenfall will not take up an €80.2mn ($87mn) EU Innovation Fund grant. "Vattenfall and Shell have agreed to pause their collaboration" on the HySkies project that they launched in 2021, the Swedish firm said. It had said in February there was "a different belief in timelines for the project to be realised" and that the companies had "agreed to open up the collaboration for potential other partners to join Vattenfall." The company reiterated this today, noting it is still reviewing the project and is seeking other partners. Shell sees "a future" in HySkies, "including opportunities for future potential collaborations". It recently paused construction of a biofuels plant in Rotterdam, and said today it expects to write down up to $1bn against that project. The Swedish collaboration initially also involved US biojet producer Lanzatech, but Vattenfall did not specify whether the firm remains part of the plans. The companies "have requested for a termination of the grant agreement for financial support via the EU Innovation Fund," Vattenfall said today. The companies are "considering it is infeasible for the project to succeed within the framework of that agreement and [are] aiming to free up funds for others to use in their ambitions to decarbonise," Vattenfall said. HySkies was selected for the grant in January 2023 . The project in Sweden's eastern Forsmark region was envisaged to produce around 82,000 t/yr of e-SAF and 9,000 t/yr of renewable diesel, using hydrogen from a 200MW electrolysis plant, biogenic CO2 captured from a waste-to-energy plant and sustainable ethanol. It was slated to start operations in March 2027 and required capital costs were estimated at close to €780mn. E-SAF has been touted by some as one of the most promising commercial opportunities for hydrogen derivatives , primarily because of clear EU mandates that will oblige its use from 2030. Vattenfall said it might pursue different options in the Forsmark region as well, noting "the full potential" for decarbonising heavy industry in the area is "under review". HySkies is not the first project for which developers have returned EU Innovation Fund grants. German utility Uniper said earlier this year it had to hand back a grant awarded last year after its plans got delayed because it could not secure a power purchase agreement from a wind power developer. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Indonesia aims to launch 15 CCUS projects by 2030


05/07/24
News
05/07/24

Indonesia aims to launch 15 CCUS projects by 2030

Singapore, 5 July (Argus) — Indonesia aims to bring 15 potential carbon capture and storage (CCS) and carbon capture, utilisation and storage (CCUS) projects onstream between 2026-30. Indonesia has carbon storage potential in 20 basins, comprising 573bn t of saline aquifer storage and 4.8bn t of depleted oil and gas reservoirs across Sumatra, Java, Kalimantan, Sulawesi and Papua, according to the country's ministry of energy and mineral resources (ESDM). The government is pushing for the Sunda and Asri basins as well as the Bintuni basin to become CCS hubs, said the ESDM's director of upstream oil and gas business development, Ariana Soemanto. Indonesia in January issued a presidential regulation on the implementation of CCS activities, which sets out the framework for the country's CCS development. CCS development in Indonesia can be undertaken via two pathways under the regulation, said Ariana. The first is the implementation of co-operation contracts in existing oil and gas areas by upstream contractors. The second pathway allows parties to establish a separate CCS business through target injection zone exploration permits and carbon storage operation permits. The regulation also allows CCS operators to set aside 30pc of the storage capacity from international sources. Singapore was the first country to sign an agreement with Indonesia after the regulation was issued, to co-operate on cross-border CCS. Countries such as Malaysia and Indonesia have the storage space to sequester captured CO2, but not the funds to develop the infrastructure. Direct government investment is necessary to develop and install CCS infrastructure such as pipelines, and carbon pricing could be a solution . Indonesia also launched its carbon exchange in September last year. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more