Brazilian ports ally for decarbonization goals

  • Market: Biofuels, Freight, Hydrogen
  • 25/03/24

Several of Brazil's main ports launched the Alliance for Decarbonization initiative, aimed at reducing emissions and boosting use of cleaner maritime fuels such as biobunkers and green hydrogen.

The group has been working since 6 March and has 36 participants, including ports, associations, companies, terminals, unions, public bodies and start-ups. Major ports such Itaqui, Paranagua and Suape are part of the alliance.

The Pecem, Acu, Rio Grande, Cabedelo and Rio de Janeiro ports also joined the initiative.

Latin America's largest port Santos showed interest in the project but has yet to sign up, Itaqui's environmental manager and alliance coordinator Luane Lemos told Argus.

The Spanish maritime alliance for net zero inspired the project and one of its members — the Valencia port — is a signatory to the Brazilian initiative.

The group did not disclose a total estimate of how much greenhouse gas (GHG) emissions it plans to reduce.

It main goals include exchanging information and ensuring baseline knowledge for participants about decarbonization matters, Lemos said.

Another key point for the alliance is to accelerate the energy transition, as some ports have developed projects to mitigate emissions but struggle to find adequate equipment and labor.

The members could also use the alliance to research and finance green hydrogen projects, she said.

Itaqui spearheaded the initiative after releasing its decarbonization plan in late 2023.

The port has a partnership with its counterpart in Valencia to reach net zero.

State-controlled Petrobras' distribution arm Transpetro — which is part of the group — is talking with Itaqui to begin a pilot project to reach zero emissions at one of the loading docks its operates there, Lemos said.

"One of Transpetro's proposals is to think how we would bring green bunker to Maranhao state to fuel berthed vessels," she added. If approved, the project would start in the second half of 2024.


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
12/04/24

Gunvor set for buying spree after windfall: CEO

Gunvor set for buying spree after windfall: CEO

London, 12 April (Argus) — Trading firm Gunvor plans to use part of a massive earnings windfall over the past two years to build out its asset base, its chief executive Torbjörn Törnqvist told Argus . "Today, we are under-invested in assets so we will change that," Törnqvist said, adding that investments would be broad based and to some extent opportunistic. "We will employ quite a lot of capital in investments." Independent commodity trading companies are sitting on unprecedented piles of cash after two years of bumper earnings arising from supply chain disruptions and market volatility. While Geneva-based Gunvor is smaller than its peers Vitol, Trafigura and Mercuria, it is still a huge company by most metrics. It reported revenues of $127bn in 2023 and a profit of $1.25bn, following a record $2.36bn in 2022. It has kept most of its earnings in house and had an equity position of almost $6.16bn by the end of 2023 — its highest ever. Törnqvist is eyeing further growth. "We will definitely be a much bigger company, that I can say," he replied when asked where he saw Gunvor in 10 years' time. "I think we will grow in tune with the [energy] transition." Trading firms are looking for ways to keep their competitive advantage, particularly given the uncertainties associated with the energy transition. One emerging trend is an appetite for infrastructure. Vitol is in the process of buying a controlling stake in Italian refiner Saras, which operates the 300,000 b/d Sarroch refinery in Sardinia. Trafigura said this week that it is in talks to buy ExxonMobil's 133,000 b/d Fos refinery on the French Mediterranean coast. Part of the rationale behind these moves is to increase optionality and take advantage of the loss of Russian products to the European market, as well the closure of large chunks of local refining capacity. Gunvor owns the landlocked 100,000 b/d Ingolstadt refinery in Germany and a 75,000 b/d refinery in Rotterdam, where it plans to shift away from fossil fuel use. "Many oil refineries have been up for sale and still are," Törnqvist said. Asked if Gunvor was looking for something similar, he said the company is interested in the "right opportunity" whether in upstream, downstream, midstream or shipping. "It all feeds into what we are doing and all supports our underlying trading," he said. But Törnqvist suspects a lot of Gunvor's growth will come from gas and power — areas where trading companies are already seeing rising profits. The company made its first investment in a power generation asset late in 2023, when it agreed to buy BP's 75pc stake in the 785MW Bahia de Bizkaia combined-cycle gas turbine plant in Bilbao, Spain. It has signed a slew of LNG offtake agreements in the past year and continues to grow its LNG tanker fleet . "We're building logistical capabilities in LNG," Törnqvist said. "Oil is here to stay" Törnqvist said Gunvor is well placed to navigate the energy transition, and is stepping up investments in renewables and biofuels and expanding into carbon and metals trading. "There will be disruptions, there will be different paths to the transition in different parts of the world which go at different paces and have different priorities and ways to deal with it," he said. "This will create opportunities." But Törnqvist is clear that oil and gas will remain an integral part of Gunvor's business. "We feel that oil is here to stay," he said. "And it will grow for several years." By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read more
News

Japan’s Idemitsu, Zen-noh tie up on SAF feedstock


11/04/24
News
11/04/24

Japan’s Idemitsu, Zen-noh tie up on SAF feedstock

Osaka, 11 April (Argus) — Japanese refiner Idemitsu has agreed to collaborate with Zen-noh Grain, a US subsidiary of Japan's national federation of agricultural co-operative associations (Zen-noh), to secure feedstock to produce sustainable aviation fuel (SAF). Idemitsu will work together with Louisiana-based Zen-noh Grain to establish an SAF supply chain, by developing various types of its feedstocks in North America and bringing some of them to Japan to produce SAF, Idemitsu announced on 11 April. Under the deal, the companies plan to extract oil from soybeans, which Zen-noh handles in Japan and the US, and process it to SAF by using hydrotreated esters and fatty acids (Hefa) technology. The firms are also aiming to develop other non-edible oilseed feedstocks, such as camelina sativa, carinata and winter rapeseed, as off-season soybean crops in North America, while studying possible uses for the leftover residue after extraction of oil from pongamia in Japan. Idemitsu is gearing up efforts to secure sufficient SAF feedstocks to meet its SAF output target of 500mn litres/yr by 2030, by utilising Hefa and alcohol-to-jet (ATJ) technologies. The company plans to start up its first 100mn l/yr ATJ plant at its Chiba refinery in the April 2026-March 2027 fiscal year. It is also considering Hefa SAF production at its Tokuyama petrochemical complex. Japan's demand for SAF is expected to continue rising, to meet its net zero greenhouse gas emissions in 2050 goal. Demand is expected to reach 1.71bn l/yr by 2030, with Japan's trade and industry ministry (Meti) planning to mandate that SAF make up at least 10pc of total jet fuel consumption by volume. Meti forecasts SAF supplies to be 1.92bn l/yr, but there is uncertainty because of feedstock availability and technology development. A number of Japanese firms are attempting to secure used cooking oil (UCO), as UCO is potentially a key feedstock in SAF production. But its supply remains limited. Around 380,000t of UCO was collected in Japan during the April 2021-March 2022 fiscal year, according to the country's federation for UCO recycling co-operatives, UCO Japan. Out of this, 200,000t was used for livestock feed, mostly for chicken, while 120,000t was exported to mainly Europe. To ensure a stable supply of SAF feedstocks, the Tokyo Metropolitan Government (TMG) is planning to conduct a feasibility study to produce SAF from general waste in Tokyo, or industrial waste from inside and outside Tokyo if securing suitable general waste is difficult. The TMG aims to select around three projects through a public tender, which is open for bids from 4-25 April, with a plan to provide up to ¥25mn ($163,169) of subsidies per project. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Japanese firms target ammonia-fuelled bulk carrier


11/04/24
News
11/04/24

Japanese firms target ammonia-fuelled bulk carrier

Tokyo, 11 April (Argus) — A group of Japanese companies plan to work with Germany-based engine manufacturer MAN Energy Solutions in developing an ammonia-fuelled bulk carrier. Shipping firms Kwasaki Kisen Kaisha (Kline) and NS United Kaiun, trading house Itochu and vessel engineering firms Nihon Shipyard and Mitsui E&S signed an initial agreement on 10 April to develop a pilot 200,000dwt-class bulk carrier equipped with an ammonia-fuelled engine. The vessel will be used to collect data for building future commercial ships. Kline said it is unsure when the pilot vessel will be commissioned and when it will begin operating the ammonia-fuelled bulk carriers. The companies are also currently unsure how much ammonia will be needed for voyages. MAN Energy Solutions and Mitsui E&S will develop the ammonia-fuelled engine, Nihon Shipyard will build the vessel, while Itochu, Kline and NS United Kaiun will manage the ship to collect operating data. Itochu will also be in charge of sharing ammonia supply chain-related information. Japanese shipping firm NYK Line, engine developers IHI Power Systems and Japan Engine, Nihon Shipyard and Japanese classification society Class NK are also attempting to build an ammonia-fuelled ammonia carrier , targeting a commissioning in 2026. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Japan backs coconuts as alternative SAF feedstock


11/04/24
News
11/04/24

Japan backs coconuts as alternative SAF feedstock

Tokyo, 11 April (Argus) — Non-standard coconuts have been registered as a feedstock to manufacture sustainable aviation fuel (SAF) by the International Civil Aviation Organisation (ICAO) after being promoted by the Japanese government. Japan's Ministry of Land, Infrastructure and Transportation (MLIT) suggested ICAO recognise non-standard coconuts, which are discarded and non-edible because of mould and cracks, as an official SAF feedstock under ICAO's Carbon Offsetting and Reduction Scheme for International Aviation. There are 5mn t/yr of non-standard coconuts produced globally, according to MLIT, which can produce around 300,000 t/yr or 380,000 kilolitre (kl)/yr) of SAF. MLIT promoted the use of non-standard coconuts because supplies of SAF's main feedstock used cooking oil (UCO) are tight, with demand for SAF expected to grow rapidly with the decarbonisation of the aviation industry. Diversification of feedstocks is necessary to boost SAF production, said MLIT. Japan's SAF demand is expected to reach 1.71mn kl/yr by 2030, with Japan's trade and industry ministry (Meti) planning to mandate that SAF make up at least 10pc of total jet fuel consumption by volume. Meti also forecast SAF supplies to be 1.92mn kl/yr but there is uncertainty because of feedstock availability and technology development. Japanese companies have attempted to secure stable UCO supplies. Refiner Eneos plans to buy an unspecified volume of UCO from Japanese real estate firm Tokyu Land's shopping centres, hotels and golf clubs. It targets to operate a 400,000 kl/yr SAF plant in west Japan's Wakayama prefecture from the April 2026-March 2027 fiscal year. Japan Airlines has started collecting UCO from households in Yokohama with an aim of starting to produce SAF from 2025. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

EU to publish H2 bank pilot results on 30 April


10/04/24
News
10/04/24

EU to publish H2 bank pilot results on 30 April

Amsterdam, 10 April (Argus) — The European Commission will publish the results of its €800mn hydrogen bank pilot auction on 30 April, EU Innovation Fund policy officer Johanna Schiele said today. The commission will release a wide range of information about the successful bids, expected levelised costs of hydrogen production and the intended origin of electrolysers used in the projects, Schiele told the Reuters Hydrogen 2024 conference in Amsterdam. The ceiling price of €4.50/kg for bids submitted in the auction "was more than sufficient", she said, suggesting that successful bids may have stayed well below this threshold. Through the mechanism, the commission will award 10-year production subsidies to the renewable hydrogen projects that submitted the lowest bids in the auction. Bids closed in early February and the commission previously said that applications were submitted for 132 projects in 17 different countries , amounting to 8.5GW electrolyser capacity that could produce some 880,000 t/yr of renewable hydrogen. But only a fraction of these will likely win subsidies in this round. The commission is confident that successful projects will be built, Schiele said. Developers had to submit a completion bond for 4pc of the subsidy value which they will lose if they do not finish their projects. Plants have to be built within five years. Schiele insisted that the commission is happy with the level of interest in the auction and the design it chose. The UK opted for a different path with a contracts-for-difference (CfD) mechanism that involved negotiations between the government and the developers to agree on subsidy levels, but entering into negotiations would have been a more complex and potentially more costly approach , Schiele said. Subsidy levels increased during the UK's negotiation process and could eventually amount to around £12/kg (€14/kg), partly depending on the development of natural gas prices, she added. The EU may yet switch to a CfD approach at a later stage when the industry matures, Schiele said . The UK government argued that its mechanism provides greater investment certainty and could unlock a pipeline of subsequent projects . Round two The commission expects to launch a second, larger hydrogen bank auction later this year, at around the same time as the pilot auction last year, Schiele said. The bidding window for the pilot auction opened in December 2023 and bids closed in February. The second auction will have a budget of around €2.2bn and will take learnings from the first round into account. A launch towards the end of the year would mark a significant delay from previous plans. Commission president Ursula von der Leyen had said that the second round could take place in spring 2024 . Meanwhile, Belgium is considering putting forward some of its own funds to use the hydrogen bank's "auction-as-a-service" mechanism in support of domestic renewable hydrogen projects, the Renewable Hydrogen Coalition's impact director Francois Paquet said at the Amsterdam conference. Germany used that option for the pilot auction, putting in €350mn to subsidise the most competitive German projects that miss out on support in the EU-wide part of the auction. And Austria has already announced plans to top up the second round with €400mn to support domestic projects. For Belgium, the hydrogen bank could provide a route for pushing projects forward, many of which have fallen behind schedule . The Renewable Hydrogen Coalition is trying to convince more governments across the EU to make use of the auction-as-a-service mechanism, Paquet said. It is intended to avoid market fragmentation caused by EU countries using different subsidy mechanisms. France, Denmark, the Netherlands and Italy have organised or announced mechanisms for subsidising production projects outside of the hydrogen bank scheme. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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