H2 project on Australia’s busiest road hits rough patch
The government-backed project to develop hydrogen refuelling along Australia's busiest road freight route appears to have run into some difficulty as it has still not announced an "industry partner" and the two most likely companies to take on the role — BP and Ampol — appear to no longer be participating in the selection process.
The governments of New South Wales (NSW) and Victoria have offered a combined A$20mn ($13.2mn) to entice a private sector developer to take on the Hume Hydrogen Highway project and planned to announce their chosen partner by mid-2024, but have made no announcement to date.
BP and Australian refiner and retailer Ampol, who have existing road fuel outlets along the route, were participating in the selection process but are no longer in the running, a source with knowledge of the process has said. Government planners appeared to have cooled their interest in the project and had discouraged companies from advancing with it, they added.
A spokesperson for the project from the NSW government declined to comment on the status of the project or the exit of the companies from the process. "There are no updates we are able to provide on this project at this time," they said.
BP and Ampol have not responded to request for comment.
The Hume Hydrogen Highway initiative aims to build a network of at least four hydrogen refuelling stations on "Australia's busiest freight corridor" between the east coast cities of Sydney and Melbourne, the state governments announced in 2022. It is intended to support a fleet of at least 25 hydrogen-powered freight trucks starting from June 2025, and must dispense renewable hydrogen, they had said. The states had also outlined the possibility to expand to Queensland for a future east coast network.
The NSW government is considering changes to its renewable fuels policy, which could involve promoting other renewable fuels aside from hydrogen for short and medium-term CO2 abatement, while maintaining support for hydrogen as a longer-term option, it said last week.
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Clean H2 to hit 12mn-18mn t/yr by 2030, goals in doubt
Clean H2 to hit 12mn-18mn t/yr by 2030, goals in doubt
London, 17 September (Argus) — Global supply of clean hydrogen could reach 12mn-18mn t/yr by 2030, up from less than 1mn t/yr currently online, according to industry body the Hydrogen Council. This is well short of global government targets and suggests supply will remain far below estimates of what is needed to combat climate change. Announced projects could provide 48mn t/yr of capacity by 2030, of which around 75pc would be renewable hydrogen and the remainder 'low-carbon' output from natural gas with carbon capture and storage, the association said in its Hydrogen Insights 2024 report published today. But only 4.6mn t/yr of this has moved to a final investment decision (FID) or beyond and "natural attrition" — prioritising the most viable projects — means many of the announced ventures will not materialise as planned, the Hydrogen Council said. A "probability adjustment", based on completion rates for other renewables projects, suggests only around 30pc of the announced capacity will be operational by 2030, the group predicts, although the 12mn-18mn t/yr estimate does not factor in potential future announcements. If these forecasts materialise, governments around the world are bound to spectacularly miss production targets set for 2030. The EU and the US are targeting 10mn t/yr of domestic production each, India 5mn t/yr, while Egypt, Saudi Arabia, Oman and the UAE have goals for at least 6.5mn t/yr between them. Scores of other countries have ambitious goals. The forecast would also fall far short of climate change imperatives. Paris-based energy watchdog the IEA estimated last year that 69mn t/yr of clean hydrogen would be needed by 2030 to put the world on track for net-zero emissions by 2050. The Hydrogen Council puts this at 75mn t/yr. The Hydrogen Council has pointed to global macroeconomic headwinds as a key reason for slow progress, along with uncertain regulation within the sector. A slew of recent project cancellations have counteracted the optimism arising from an increased number of FIDs . Growing up Still, the industry has shown some encouraging signs of maturity, even if it is not on track to meet the heady targets set by many governments and companies, the Hydrogen Council said. Committed funds for hydrogen projects past FID, being built, or in operation was $75bn across 434 projects as of May 2024, compared with $10bn across 102 projects in 2020, it said. The $75bn is nearly double the $39bn in this category as of October 2023. There was only a 15pc increase in the combined value of projects in the 'announced' category, to $303bn from $259bn, over the same period, signalling the pace towards realisation of projects is picking up. The near double growth in 'committed' funds was driven 60pc by investments in end-use, 40pc in infrastructure, and only 15pc by investments in hydrogen production. Investment decisions for end-use applications grew several times over between October 2023 and May 2024. This may satisfy market participants' repeated calls for a government focus on stimulating demand recently. But planned investments in end-use and infrastructure projects are lagging far behind what will be needed in a net-zero scenario, the Hydrogen Council said. Announced investments in end-use projects is $145bn below what is required by 2030, and midstream infrastructure is trailing by $190bn. But announced investments in production projects this year for the first time surpassed what will be necessary, with a $15bn surplus — although much of this could fall by the wayside. "With the current announced investments and the growth observed since last publication, investments are behind the required net-zero pathways with net-zero targets unlikely to be met," the Hydrogen Council said. By Aidan Lea Assumptions for probability adjustments % Project stage Assumed success rate In operation 100 Under construction 100 Post-FID 99 Front end engineering design 40-80 Feasibility study 5-40 Announced 0-20 - Hydrogen Council Global announced electrolyser capacity through 2030 GW As of Announced capacity Dec-20 55 Dec-21 115 May-22 175 Jan-23 230 Oct-23 305 May-24 375 - Hydrogen Council * based on the Hydrogen Council's probability adjustment, globally installed electrolysis capacity could reach 90GW by 2030 Investments until 2030 by project stage $bn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India mulls government support for green steel
India mulls government support for green steel
Mumbai, 12 September (Argus) — The Indian government is considering ways to generate demand for pricier low-carbon steel from state-owned and private-sector consumers, in a move to accelerate the decarbonisation of the sector. Policy recommendations — including raising the use of low-carbon steel in government projects and centralising bulk procurement — were outlined in a new green steel "roadmap" issued by the Indian steel ministry on 10 September. Low-carbon steel is relatively priced at a premium to steel produced using traditional methods, making it challenging to generate its demand. The use of capital-intensive techniques to lower emissions would ultimately push up steel production costs by 10-15pc and subsequently raise input costs for consumers, according to a ministry's report. It will take time for Indian consumers to become active buyers of costlier green steel, industry participants said at the Indian Steel Association (ISA) Steel Conclave in Delhi earlier in September. Instead, they said India is likely to find its first buyers for green steel in overseas markets such as Europe where measures such as the upcoming carbon border adjustment mechanism (CBAM) will put a carbon levy on some imports. The ministry's report recommends developing a "green public procurement" policy aimed at increasing the uptake of low-carbon steel in domestic infrastructure and defence projects, many of which are funded by the government. The Indian government will now launch a green steel "mission," steel ministry secretary Sandeep Poundrik said following the report's release. "It was suggested the government can have a procurement push for green steel at least in government projects. That we will consider when we make the mission," he said. The report also suggested setting up a central agency for bulk purchases of green steel. Tax incentives and higher environmental, social, and corporate governance ratings could encourage private-sector consumers such as auto manufacturers to buy green steel, according to the action plan charted out in the report. One of the top goals outlined for the first phase of the action plan is for the government to draft a green steel procurement policy, something which could reduce the steel industry's carbon emissions intensity to 2.2t of CO2 per tonne of crude steel produced (tCO2/tcs) by 2030, according to the report. The Indian iron and steel sector's CO2 emissions intensity was 2.55 tCO2/tcs as of 2022. The Indian steel industry accounts for 12pc of the country's carbon emissions. Hydrogen, CCUS long-term goals On the supply side, the initial focus will be to lower energy consumption through methods such as scrap-based production and the elevated use of renewable energy sources. The ministry's action plan aims for renewable energy penetration of 45pc in the steel sector by 2030. The government and steel industry should invest in developing green hydrogen, carbon capture, utilisation and storage (CCUS) and biochar after 2030, according to the roadmap. These measures are currently at a nascent stage, with experiments underway to see if they could partially replace the use of coal in traditional blast furnaces. The roadmap is based on the findings of 14 task forces appointed by the ministry to explore ways to decarbonise the hard-to-abate steel industry. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Methanex to acquire OCI’s methanol business for $2bn
Methanex to acquire OCI’s methanol business for $2bn
Houston, 9 September (Argus) — Methanol producer Methanex announced Sunday that it will acquire OCI's international methanol business for $2.05bn. As part of the transaction, Methanex will acquire four primary assets, including a 910,000 t/yr methanol facility and 340,000 t/yr ammonia facility in Beaumont, Texas. Methanex will acquire OCI's 50pc interest in the 1.7m t/yr Natgasoline methanol plant in Beaumont. The acquisition of Natgasoline is subject to a legal proceeding between OCI and Proman, the other 50pc holder in Natgasoline, over certain shareholder rights. If the dispute is not resolved within a certain period, Methanex has the option to exclude the purchase of the Natgasoline joint venture and proceed with the rest of the transaction. The transaction also includes OCI HyFuels, a producer of green methanol products such as biomethanol and bio-MTBE, and trading and distribution capabilities for renewable natural gas (RNG) and ethanol. Additionally, Methanex will acquire an idled 1m t/yr methanol facility in Delfzijl, Netherlands. The purchase price includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million and the assumption of about $450 million in debt and leases. The acquisition of fertilizer producer OCI began over a year ago, according to OCI officials. "We identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023," OCI executive chairman Nassef Sawiris said. This acquisition moves Methanex, primarily a methanol maker, into the ammonia sector. "From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing," Methanex CEO Rich Sumner said. The deal is expected to close in the first half of 2025. The transaction has been approved by the boards of directors of the two companies and is now awaiting certain regulatory approvals and other closing conditions. The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU commits €50mn to Namibian, South African H2 funds
EU commits €50mn to Namibian, South African H2 funds
Hamburg, 5 September (Argus) — The EU will contribute €50mn ($55mn) to renewable hydrogen investment funds in Namibia and South Africa. The funds will come from the bloc's Global Gateway international investment scheme, EU energy commissioner Kadri Simson said at the Global African Hydrogen Summit in Windhoek. "Investment will especially target private sector projects across the hydrogen value chain, such as the production, transportation and storage, as well as downstream industries," Simson said. Namibia's SDG Namibia Fund will receive €25mn, one of its managers, the Netherlands-headquartered Climate Fund Managers, said. This suggests the €50mn could be split equally between funds in Namibia and South Africa. The SDG Namibia Fund was launched in late 2022 with a target of raising $1bn in blended financing for renewable hydrogen projects and related infrastructure. It has received backing from Dutch state-owned Invest International and USAID Southern Africa Mobilizing Investment, and made a first investment late in 2023, supporting the Hyphen renewable hydrogen and ammonia project with an initial €23mn. South Africa's SA-H2 Fund is also targeting $1bn and is similarly backed by Invest International and other Dutch institutions. Simson announced two smaller support programmes in Windhoek. The EU together with the German government will provide €2.7mn for Namibia's planning efforts for expanding renewable hydrogen generation capacity and increasing access to this. It will grant €1.2mn to the Namibia Green Hydrogen Programme, a government-led initiative for drawing up regulations and support mechanisms for the sector. The EU plans to invest €1bn in Namibian renewable hydrogen and sustainable raw material value chains . The European Commission said last year that the bloc, its member states and European financial institutions would provide these funds as part of the Global Gateway initiative. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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