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Canada furthers investment in GHG reductions

  • Market: Battery materials, Biofuels, Emissions, Hydrogen
  • 18/04/24

The Canadian government plans to have C$93bn ($67.5bn) in federal incentives up and running by the end of the year to spur developments in clean energy technology, hydrogen production, carbon capture utilization and storage (CCUS) along with a new tax credit for electric vehicle (EV) supply chains.

The Canada Department of Finance, in its 2024 budget released on 16 April, said it expects to have the first planned investment tax credits (ITCs), for CCUS and renewable energy investments, in law before 1 June.

The ITCs would be available for investments made generally within or before 2023 depending on the credit.

The anticipated clean hydrogen ITC is also moving forward. It could provide 15-40pc of related eligible costs, with projects that produce the cleanest hydrogen set to receive the higher levels of support, along with other credits for equipment purchases and power-purchase agreements.

The government is pursuing a new ITC for EV supply chains, meant to bolster in-country manufacturing and consumer adoption of EVs with a 10pc return on the cost of buildings used in vehicle assembly, battery production and related materials. The credit would build on the clean technology manufacturing ITC, which allows businesses to claim 30pc of the cost of new machinery and equipment.

To bolster reductions in transportation-related greenhouse gas (GHG) emissions, the government will also direct up to C$500mn ($363mn) in funding from the country's low-carbon fuel standard to support domestic biofuel production.

Transportation is the second largest source of GHG emissions for the country, at 28pc, or 188mn metric tonnes of CO2 equivalent, in 2021.

But the province of Alberta expressed disappointment at the pace of development of ITC support that could help companies affected by the country's move away from fossil fuels.

"There was nothing around ammonia or hydrogen, and no updates on the CCUS ITCs that would actually spur on investment," Alberta finance minister Nate Horner said.

The incentives are intended to help Canada achieve a 40-45pc reduction in GHG emissions by 2030, relative to 2005 levels. This would require a reduction in GHG emissions to about 439mn t/yr, while Canada's emissions totaled 670mn in 2021, according to the government's most recent inventory.

The budget also details additional plans for the Canada Growth Fund's carbon contracts for a difference, which help decarbonize hard-to-abate industries. The government plans to add off-the-shelf contracts to its current offering of bespoke one-off contracts tailored to a specific enterprise to broaden the reach and GHG reductions of the program.

These contracts incentivize businesses to invest in emissions reducing program or technology, such as CCUS, through the government providing a financial backstop to a project developer. The government and developer establish a "strike price" that carbon allowances would need to reach for a return on the investment, with the government paying the difference if the market price fails to increase.

CGF signed its first contract under this program last year, with Calgary-based carbon capture and sequestration company Entropy and has around $6bn remaining to issue agreements.

To stretch this funding further, the Canadian government intends for Environment and Climate Change Canada to work with provincial and territorial carbon markets to improve performance and potentially send stronger price signals to spur decarbonization.


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19/02/25

Trump asserts power over independent agencies

Trump asserts power over independent agencies

Washington, 19 February (Argus) — President Donald Trump has signed an executive order that claims to give him sweeping control over the budgets, policies and regulations of independent US agencies that oversee the energy sector, financial markets, trade and transportation. The order seeks to give the White House unprecedented control over the US Federal Energy Regulatory Commission (FERC), the US Commodity Futures Trading Commission (CFTC), the US Securities and Exchange Commission (SEC) and more than a dozen other independent agencies. Trump's order asserts that "so-called independent agencies" lack sufficient accountability and should be brought under his direct control. "For the federal government to be truly accountable to the American people, officials who wield vast executive power must be supervised and controlled by the people's elected president," according to the executive order, which was signed on Tuesday. FERC, the CFTC and the SEC did not respond to a request for comment. Trump's order would all but end years of attempts by the US Congress to shield agencies that oversee energy markets, trading, finance, maritime trade, railroads, and other businesses from excessive political influence. Congress made those agencies independent — often with a bipartisan board serving years-long terms — to ensure a degree of independence when agencies resolve business disputes, set market rules and issue new regulations. In Trump's first term, FERC's commissioners and Republican chairman rejected the administration's plan to push through market rules to bail out coal and nuclear power plants, based partly on the concerns that doing so would destabilize power markets and cost consumers billions of dollars. It remains unclear if the agency in the future could assert that degree of independence under the order. Trump's order would give the White House the ability to control independent agency budgets and require the appointment of a White House "liaison" in each agency. The order would require agency chairs to align their policies with the White House, subject all significant regulations to review by the administration, and would establish "performance standards" for agency leaders. The order provides an exception for the US Federal Reserve for monetary policy, but the agency's budget and its regulatory actions would come under White House control. Other agencies also covered by the executive order include the US Surface Transportation Board, the US Federal Trade Commission, the US Chemical Safety Board, the US Export-Import Bank, the US Federal Maritime Commission and the US National Transportation Safety Board. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU draft plan seeks to cut energy costs


19/02/25
News
19/02/25

EU draft plan seeks to cut energy costs

Brussels, 19 February (Argus) — The European Commission has set out plans to tackle the cost of energy in the EU, warning in a draft document that Europe risks de-industrialisation because of a growing energy price gap compared to global competitors. High energy prices are undermining "the EU's global standing and international competitiveness", the commission said, in a draft action plan for affordable energy, seen by Argus . The plan is expected to be released next week, alongside a clean industrial deal and other strategy documents. Much of the strategy relies on non-binding recommendations rather than legislation, particularly in energy taxation. Officials cite EU reliance on imported fossil fuels as a main driver of price volatility. And they also highlight network costs and taxation as key factors. For taxation, the commission pledges — non-binding — recommendations that will advise EU states on how to "effectively" lower electricity taxation levels all the way down to "zero" for energy-intensive industries and households. Electricity should be "less taxed" than other energy sources on the bloc's road to decarbonisation, the commission said. It wants to strip non-energy cost components from energy bills. Officials also eye revival of the long-stalled effort to revise the EU's 2003 energy taxation directive. That requires unanimous approval from member states. The commission pledges, for this year, an energy union task force that pushes for a "genuine" energy union with a fully integrated EU energy market. Additional initiatives include an electrification action plan, a roadmap for digitalisation, and a heating and cooling strategy. A white paper will look at deeper electricity market integration in early next year. EU officials promise "guidance" to national governments on removing barriers to consumers switching suppliers and changing contracts, on energy efficiency, and on consumers and communities producing and selling renewable energy. More legislative action will come to decouple retail electricity bills from gas prices and ease restrictions on long-term energy contracts for heavy industries. By 2026, the commission promises guidance on combining power purchase agreements (PPAs) with contracts for difference (CfDs). And officials will push for new rules on forward markets and hedging. There are also plans for a tariff methodology for network charges that could become legally binding. Familiar proposals include fast-tracking energy infrastructure permits, boosting system flexibility via storage and demand response. Legislative overhaul of the EU's energy security framework in 2026 aims to better prepare Europe for supply disruptions, cutting price volatility and levels. Specific figures on expected savings from cutting fossil fuel imports are not given in the draft seen by Argus . But the strategy outlines the expected savings from replacing fossil fuel demand in electricity generation with "clean energy" at 50pc. Improving electrification and energy efficiency will save 30pc and enhancing energy system flexibility will save 20pc, according to the draft. The commission is also exploring long-term supply deals and investments in LNG export terminals to curb prices. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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China's GoldWind offers first biomethanol spot cargo


19/02/25
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19/02/25

China's GoldWind offers first biomethanol spot cargo

Singapore, 19 February (Argus) — Major Chinese private-sector wind turbine supplier GoldWind has started offering biomethanol spot cargoes, it announced today at the Argus Green Marine Fuels Conference. The producer is currently offering a spot price of $820/t dob northeast Asia for its biomethanol, GoldWind vice president Chen Shi said at the conference, held in Singapore from 18-19 February. GoldWind is offering a total of around 120,000t of biomethanol with 70pc greenhouse gas (GHG) savings for bunkering from the fourth quarter of 2025 to the second quarter of 2026. The company plans to start up its first biomethanol unit with 250,000t/yr capacity in Xinganmeng, Inner Mongolia, by the end of 2025. The plant will feed on wind power-based green hydrogen and corn straw-based biomass. GoldWind aims to start up its second 250,000t/yr biomethanol unit in late 2026. GoldWind signed a long-term offtake agreement with Danish shipping and logistics firm Maersk in November 2023 to supply 250,000t/yr of biomethanol once it achieves full operations, likely from 2027 onwards. The company secured a second long-term offtake agreement in November 2024 with rival container liner Hapag-Lloyd, also to supply 250,000t/yr of biomethanol from 2027 onwards. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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European industry body wants e-SAF auction mechanism


19/02/25
News
19/02/25

European industry body wants e-SAF auction mechanism

London, 19 February (Argus) — A group of firms from Europe's aviation and hydrogen sectors has proposed a "double-sided" auction mechanism to unlock up to 300,000 t/yr of renewable hydrogen-based sustainable aviation fuel (e-SAF) supply in a bid to meet EU targets. In a letter to European Commission officials, the Project SkyPower group has proposed five "critical policy interventions" to boost e-SAF production and consumption. The letter was signed by more than 70 organisations, including aircraft makers Airbus and Boeing, airlines Air France-KLM, SAS and easyJet, project developers Norsk E-fuel, HIF and CIP, financing bodies ING and KGAL and industry groups Hydrogen Europe and Transport and Environment. The requests include a proposed auction mechanism similar to the German government-backed H2Global system for renewable hydrogen and derivatives that could be run by the same intermediary, Hintco, or another body. The intermediary body would hold 10-15 year purchase contract auctions for producers and then separate 3-5 year sale agreement auctions with buyers. The difference between production costs and buying prices would be bridged by revenues from the EU's Emissions Trading System (ETS), with a "short-term funding" pot of €3bn ($3.1bn) able to support between 100,000-300,000 t/yr of e-SAF production capacity, or between 2-6 50,000 t/yr plants, the Project SkyPower group said. This could be sufficient to cover roughly half the supply needed to meet the EU's binding target for e-SAF to constitute 1.2pc of all jet fuel consumed by 2030-31, the group said. The €3bn funding "would be equal to 20pc of total cumulative ETS revenues expected from aviation in the period 2030-39," Project SkyPower said. A first pilot round of the H2Global mechanism had included a specific pot for e-SAF production, but this was not allocated because of a lack of bidders . As the launch of a double-sided mechanism would take time to take effect, the EU should also establish a "bridging mechanism" that would guarantee priority access in the auctions for "the first few pioneering large-scale e-SAF projects" — which aim to reach a final investment decision by 2025-27 — Project SkyPower said. The group has urged clarity on the e-SAF mandates, saying a review of the ReFuelEU Aviation rules, scheduled for 2027, is creating uncertainty. EU member states should "be urged to publish transparent and harmonised penalty systems" this quarter, it said. More broadly, Project SkyPower wants the commission to make e-SAF a "strategic priority" in the bloc's Clean Industrial Deal. Argus is tracking 38 e-SAF projects in the EU that are planned or operational. These could together provide over 2mn t/yr of e-SAF if built as planned. But the vast majority are in very early development stages and no large-scale plant has yet reached a FID. By Jethro Robathan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Singapore adds $3.7bn clean energy funds, mulls nuclear


19/02/25
News
19/02/25

Singapore adds $3.7bn clean energy funds, mulls nuclear

Singapore, 19 February (Argus) — Singapore will add a further S$5bn ($3.7bn) to its clean energy fund, and is also studying the potential for nuclear deployment, said the country's prime minister Lawrence Wong on 18 February. Singapore's Future Energy Fund was set up in 2024 with an initial injection of S$5bn to develop clean energy options. Expanding access to clean energy is a major national imperative as "the industries of the future," such as artificial intelligence and semiconductors, are highly energy intensive, said Wong at the unveiling of the country's budget for 2025. "Be it electricity imports, hydrogen or nuclear, we need to make major investments in new infrastructure," said Wong. A short-term solution is to import low-carbon electricity from the region. Singapore expects about a third of its projected electricity demand in 2035 to be met through electricity imports, according to Wong. The country aims to import 6GW of low-carbon electricity by 2035 , and has signed supply agreements with Malaysia , as well as granted conditional approvals to projects in Indonesia. But Singapore needs to have its own domestic sources of clean power, said Wong. Singapore has been evaluating the use of low-carbon hydrogen for power, "but there are inherent challenges in the production, storage and transportation of hydrogen, which make it hard to scale up in a commercially viable manner," Wong added. Nuclear power could be another option. Singapore had considered the possibility of developing nuclear power in 2010, but assessed that conventional nuclear technologies were not suitable. Since then, there have been significant advancements in nuclear technologies such as small modular reactors (SMRs), which have better safety features than conventional reactors, said Wong. Interest in nuclear energy is also rising in the region, with several countries planning to include it in their energy mixes, such as Indonesia and the Philippines. Singapore has signed agreements with the US on civil nuclear co-operation, and is working on similar collaborations with other countries that have capabilities and experience, especially with SMRs, said Wong. Singapore submitted its new emissions reduction target on 10 February, aiming to reduce emissions to 45mn-50mn of CO2 equivalent (CO2e) in 2035 as part of its nationally determined contribution. Singapore aims to decarbonise its transport sector, which currently accounts for about 15pc of total emissions, in line with its emissions reduction goals. Singapore will introduce a new heavy vehicle zero emission scheme and a heavy electric vehicle (EV) charger grant to accelerate the adoption of cleaner heavy vehicles. The grant will provide incentives for the purchase of heavy EVs and co-funding of charging infrastructure, said Wong. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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