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China to invest in Kazakh coal chemistry projects

  • Market: Coal, Electricity
  • 29/07/26

Kazakhstan held discussions with Chinese investors this week over investments in coal chemistry projects, as the central Asian country continues to step up coal sector developments, the energy ministry has said.

Ongoing coal chemistry projects in Kazakhstan were discussed at the meeting on Tuesday, which emphasised China's increased co-operation in the initiatives.

The potential Chinese involvement adds to a growing roster of foreign investments that Kazakhstan's coal sector has received from countries such as Russia, Germany and the US.

Kazakhstan said last month that it aimed to develop six coal-to-chemical projects in 2026-31 to help in the coal-based production of metallurgical coke and synthetic fuels.

Separately, the energy ministry said it expects to have a 1.3TWh electricity surplus by the end of 2027 after new generation capacity is commissioned this year. The ministry plans to commission at least 2.42GW this year under a broader national project that aims to add 7.8GW by 2030, mostly coal-fired power at a cost of around 7.5 trillion tenge ($15.5bn).

Kazakhstan relies heavily on coal-fired power — around 62pc of its generation this year has been coal based, alongside 23.4pc from natural gas, 7.5pc from hydroelectric plants and 7pc from renewables, energy ministry data show.

By Shreyashi Sanyal

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29/07/26

GHG Protocol faces pushback on scope 2 reforms

GHG Protocol faces pushback on scope 2 reforms

London, 29 July (Argus) — Standard-setting group Greenhouse Gas Protocol (GHG Protocol) has published a summary of responses from its public consultation on the scope 2 standard — which covers indirect emissions from purchased energy. The group will consider the feedback ahead of a second public consultation later this year, with the new standard expected to be published in 2027. The consultation sought views on a range of proposed revisions that would affect the use of renewable energy certificates (RECs), including changes to market and location-based reporting methodologies for companies. A total of 1,072 responses were submitted from 56 countries. GHG Protocol also confirmed on Wednesday that it will combine its carbon accounting standards with the International Organisation for Standardisation (ISO), following an initial announcement last year . A public consultation on an integrated corporate standard is planned for the second quarter of 2027. Hourly, grid-based matching largely opposed Feedback on new scope 2 quality criteria, which proposes hourly-based matching for electricity consumption, was largely unsupportive. Of 909 respondents, 70pc gave little to no support, 22pc were in favour, and 7pc were neutral. Many objectors said hourly matching could discourage participation in voluntary renewable procurement schemes, such as RE100, by increasing reporting burdens and costs. Several respondents also suggested that hourly matching should be optional, rather than mandatory. The revision also proposed an exemption from hourly matching for organisations meeting certain eligibility criteria, such as having smaller size and total electricity consumption, allowing these organisations to match on a monthly or annual basis. From 748 respondents, 76pc supported the exemption, 14pc opposed it, and 9pc were neutral. Supporters of the proposal said it would provide a more equitable approach to reporting and encourage smaller organisations under a certain threshold to continue voluntary procurement. With regard to deliverability requirements, the consultation proposed that buyers could only procure RECs from generators connected via an electrically linked grid. In the absence of a clear market boundary, price-based indications of available transmission capacity between adjacent grids could be used as evidence. Of 875 respondents, 59pc opposed the revision, while 30pc were in support and 11pc were neutral. The main concern among those against was that narrower market boundaries could discourage investment in areas with the greatest decarbonisation potential and make long-term offtakes, such as power purchase agreements (PPAs) less attractive. Several respondents favoured an optional approach, similar to feedback on temporal matching. Mixed responses to emissions factors hierarchy Further proposals to the location-based method would require reporting organisations to prioritise the most precise location information, followed by temporal granularity, with more emphasis on import and export data to reflect more accurately the generation feeding into the grid. The response to the proposal was mixed — 40pc were in favour compared with 44pc against, while 17pc were neutral. Opponents noted that local spatial boundaries may not always accurately reflect how electricity is managed and delivered at scale. But supporters of the proposal said it would enhance the method's relevance. Uncertainty over subsidised procurement rules The consultation also sought responses on a new "standard supply service" (SSS) term to account for renewable electricity from publicly funded or mandated resources. Out of 522 respondents, 49pc were in favour of the introduction of the term, compared with 30pc who were against and 20pc who were neutral. Those in support said that it would prevent procurement of SSS resources from specific, typically larger organisations. But many expressed concern that classifying any state-supported generation as SSS would remove a significant share of available RECs from the voluntary market. Feedback from Asian markets such as Japan, Taiwan and Malaysia noted that feed-in-tariff programmes account for the majority of available RECs, and their possible reclassification could leave a much narrower pool of eligible contracts for voluntary buyers. Broad support for a ‘grandfathering' clause Around 90pc of 801 respondents were in favour of a legacy "grandfathering" clause, which would allow eligible pre-existing contracts to count toward market-based consumption even if they do not meet updated requirements when the updated protocol comes into force. Respondents said this provision would help maintain market confidence in long-term contracts such as PPAs, and would provide a more equitable approach by ensuring that early adopters of updated scope 2 guidance are not at a disadvantage. Revised proposals will be discussed with the Independent Standards Board if needed, GHG Protocol added. By Gian Remnant Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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California refinery closures spur fuel plan debate

28/07/26
News
28/07/26

California refinery closures spur fuel plan debate

Houston, 28 July (Argus) — California officials face mounting pressure to maintain fuel reliability as planned refinery closures tighten supplies and increase reliance on imports, even as the state pursues its climate and transportation electrification goals. The California Air Resources Board (CARB) and the California Energy Commission (CEC) released a draft transportation transition plan in May. While the plan outlines recommendations, California still needs a more detailed roadmap to balance fuel supply demand with the state's climate goals, according to panelists who spoke during a 23 July webinar hosted by the Climate Center, an environmental non-profit. A key question for the state is to reexamine what to electrify and when, and which sectors should switch next to biofuels to make the best use of limited renewable power and fuel supplies under current conditions in California, said Jeremy Martin, director of fuels policy for the Union of Concerned Scientists. Transportation is the largest emitting sector in California's economy, accounting for 133.7mn metric tonnes (t), or 37.1pc, of emissions in 2023, data show from the latest state greenhouse gas inventory. The lion's share of these emissions is from passenger vehicles with 101.9mn t, or 28.3pc. California aims to electrify its vehicle fleet, targeting 100pc of in-state sales of zero-emission passenger vehicles and trucks by 2035. "The market is pretty solidly in the direction of battery-electric vehicles, and we don't see any change in that direction at this point," Quentin Gee, CEC energy assessment division manager, said during the panel. But some sectors may be more difficult to electrify because of cost constraints and the time required to add renewable power capacity. Sustainable aviation fuel (SAF) could help reduce emissions from aviation while directing limited renewable electricity supply toward passenger vehicles and trucks, Martin said. "If you only have so much renewable energy that you can scale up, it is a lot more important to convert the cars and trucks to electric vehicles than it is to shift the planes," he said. California has done similar fuel pivots with the adoption of renewable diesel which serves as a "drop-in" replacement for conventional diesel. While gasoline demand is expected to continue falling over time in the state, jet fuel demand is not projected to follow the same course, Gee said. The closures of two refineries in the state in the past year cut 17pc of California's refining capacity, leaving the state increasingly reliant on imports to meet demand. This need to maintain fuel supply availability has lead the CEC to eye the potential for alternative fuels like SAF and ethanol fuel blends to maintain availability for different transportation sectors which use less fossil fuel, Gee said. But if in-state production of these fuels does not scale quickly, it could again leave California reliant on the availability of imports, according to the CEC draft. California will also have to weigh any transition against the interplay of available biofuel feedstocks, the state's low-carbon fuel standard and federal programs and incentives. Federal biofuel tax incentives, such as the 45Z credit, which prioritizes North American feedstocks, have prompted producers to shift from global to domestic supply chains where possible to capture the credit in their 2026 filings. While advocates argue the state must quickly decide its future plans, this likely will happen under a new governor, with governor Gavin Newsom (D) termed-out after this year. The CEC closed public comment on the transportation fuels transition plan earlier this month, though agency staff could not confirm when it would release a final report. The plan is one of several state policy documents used to shape California's path toward its climate and energy goals. Another is the scoping plan prepared by CARB, which outlines how the state aims to achieve net-zero emissions by 2045. CARB released its current scoping plan in 2022, but will not release the next update until 2027. The CEC also plans to release its transportation fuels assessment later this year. The report will examine conditions in California's fuel markets and evaluate policy options to improve fuel reliability and market stability during the transition away from fossil-based fuels. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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ADB, World Bank fund Timor-Leste’s first solar farm

28/07/26
News
28/07/26

ADB, World Bank fund Timor-Leste’s first solar farm

Singapore, 28 July (Argus) — The Asian Development Bank (ADB) and World Bank, alongside Japan and Canada, are funding Timor-Leste's first utility-scale solar and battery storage project, the ADB said on 27 July. The 74MW solar plant and 80MWh battery system is set to also be Timor-Leste's first independent power project. Manatuto Renewables Power, set up by subsidiaries of French utility EDF and Japanese firm Itochu, is leading the project. The project started construction last week and is expected to finish by 2028, the Timor-Leste embassy in Tokyo said last week. When operational, the facility will deliver 134GWh and avoid nearly 93,000 t/yr of CO2 equivalent, according to the ADB. Electricity will be sold to state utility Eletricidade de Timor Leste, Empresa Pública under a 25-year power purchase agreement. ADB is providing $33.4mn for the project, including a tranche of concessional loans supported by Japan and Canada. The World Bank is contributing $40.2mn, part of which is also concessional loans. Japan is separately chipping in $12.2mn, bringing total funding to $85.7mn. The World Bank also approved a 20-year political risk insurance to the EDF and Itochu entities involved in the project. Timor-Leste wants to meet half of its energy needs from renewable sources by 2030. Currently diesel-based thermal plants account for almost all of the southeast Asian country's installed power capacity of around 276MW, ADB said. By Liang Lei Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Strong Indian coal burn fails to support imports

28/07/26
News
28/07/26

Strong Indian coal burn fails to support imports

Singapore, 28 July (Argus) — India's coal-fired generation is on course for a record July because a weak monsoon has boosted power demand, but this has not significantly supported demand for seaborne coal because the country holds ample domestic supplies. Coal-fired generation reached 92.6TWh over 1-25 July, up by 12pc from 82.81TWh a year earlier, according to Central Electricity Authority (CEA) data, putting July on track to hit all-time high provided subdued seasonal rains continue to keep power demand elevated. The previous July record of 105.84TWh was set in 2024. The uptick in coal-power output in July, supported by a weak monsoon, elevated temperatures and increased cooling-demand, followed a trend in April-June, with peak demand hitting a record 270.82GW on 21 May. But the stronger coal burn has not translated into higher seaborne coal demand. Thermal coal imports have remained well below year-earlier levels, according to Kpler, because utilities have drawn on ample stocks and domestic supplies were supported by mine-head inventories accumulated over the previous fiscal year. India's thermal coal imports are estimated at 11.3mn t so far in July, down from 12.02mn t a year earlier, Kpler data show. Imports fell by 15pc on the year to 74.5mn t in January-June, according to data from shipbroker Interocean. The weak buying interest from the world's second-largest coal importer is adding pressure to a seaborne market already weighed down by weak Chinese demand, leaving suppliers competing for a shrinking pool of buyers and weighing on seaborne coal prices. The Argus -assessed GAR 4,200 kcal/kg coal market has remained under pressure since mid-June, when prices hit a three-year high. The sluggish prices prompted some buyers to seek competitively priced cargoes. There has been an uptick in post-monsoon enquiries, and some Indian traders bought cargoes from Chinese traders at price points they considered lucrative. But other Indian traders are now pencilling in a slower-than-anticipated demand recovery and are offering cargoes to non-India markets, a Singapore-based trader said, pointing to weak interest in seaborne coal especially from utilities — the largest coal consumer in India. An uptick in freight rates due to escalations in the Middle East conflict has also weighed on demand for imported coal. Domestic supply to utilities remained strong despite lower production, reflecting the drawdown largely from inventories at power plants and mine pitheads. Coal production fell by 5.9pc on the year to 232.49mn t in April-June, largely because of lower output from state-controlled Coal India (CIL), which meets nearly 80pc of India's demand. Combined dispatches to the power sector from CIL, Singareni Collieries (SCCL), and captive and commercial producers rose by 4.6pc on the year to 70.92mn t in June , with most producers trimming their stocks. CIL began the fiscal year on 1 April with around 130mn t of pithead stocks and liquidated 28.3mn t in April-June, leaving just over 100mn t at pitheads by the end of the quarter. Combined inventories at power plants stood at 39.22mn t as of 26 July, down by 28pc on the year and equivalent to about 13 days of consumption, according to CEA data. The stocks are down from about 55mn t a year earlier and from 44.11mn t by end of June, indicating steady drawdown to meet utility demand. Inventories at 29 of 190 monitored plants hold critical stock levels compared with 14 a year earlier. Authorities are actively monitoring the stock drawdown, anticipating that the erratic monsoon would lead to higher load on coal-fired power plants to meet bulk of the demand. A government directive to all utilities to raise imports to support higher generation looks unlikely, unless the combined stocks fall be 30mn t, an official at a utility said. The government had earlier this year ordered Tata Power to boost generation at its Mundra 4GW plant, although bulk of the capacity of the plant is underutilised even during the peak summer period, according to a market participant. This points to evolving power mix that has helped to partly meet the peak power demand. Grid-scale generation excluding renewables rose by 6.8pc on the year to 116.04TWh over 1-25 July, according to CEA data. Large hydropower output fell by 18pc to 14.15TWh because below-normal rainfall curtailed reservoir inflows. Renewable generation, which is excluded from the CEA data, is estimated to have reached around 31TWh in the period, up from about 26TWh a year earlier. Solar power output has helped to meet day-time peak power demand, easing some pressure on the coal-powered fleet. But coal remained a swing fuel since solar output fades in the evening. Rating agency ICRA expects power demand growth of around 5pc in 2026-27 financial year ending in March 2027, although the outlook remains exposed to weather conditions, said its vice president Ankit Jain. Weather conditions Cumulative rainfall was about 15pc below normal on 1 June-25 July, while June rainfall was 39pc below the long-period average, according to the India Meteorological Department (IMD). Levels in India's 166 major water reservoirs stood at 38.4pc of capacity as of 23 July — about 36pc below a year earlier — according to Central Water Commission data. But extreme weather is expected in the wider region with the onset of El Nino weather phenomenon. The IMD has warned of extremely heavy rainfall over coal-bearing states in central and east India this week, threatening opencast mining. Erratic rainfall is adding uncertainty to power demand and coal consumption forecasts. It is difficult for traders to assess demand outlook and execute deals in such an environment, an India-based trader said. By Saurabh Chaturvedi Indian power generation mix (TWh) Indian power plant inventories (mn t) Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US firm only valid bidder for €2.6bn Serbian hydro unit

24/07/26
News
24/07/26

US firm only valid bidder for €2.6bn Serbian hydro unit

London, 24 July (Argus) — Serbia has preliminarily approved a bid from US construction company Bechtel to develop the country's flagship Djerdap 3 pumped-storage hydropower project, according to energy ministry documents. The ministry rejected five other applicants for the project, determining that Bechtel — in consortium with Turkish construction company Enka — was the only company to meet all of its requirements, which include experience with infrastructure projects costing more than €1bn ($1.1bn) and majority US ownership. The project could have an installed capacity of 1.8-2.4GW and cost €2.63bn, according to the ministry's energy infrastructure development plan, published in March 2025. But the final specifications of the project are yet to be decided. An initial development phase — which will include design, feasibility studies and environmental assessments — should be completed within 36 months from awarding the contract, with the project expected to be commissioned by 2036, according to a call on 3 June. The Serbian government issued the June call to US-based developers through the US embassy . Romania signed a memorandum of understanding with Serbia on 16 July to facilitate exchange of information about the project. The arrangement aims to ensure that construction of the Djerdap 3 project does not adversely impact operation of the existing Djerdap 1 and 2 hydropower plants or the "hydrological regime" of the Danube river, especially areas downstream in Romania and Bulgaria , the Romanian energy ministry told Argus . Serbia's procurement procedure for developers was not open to Romanian firms, the energy ministry said. The process was carried out according to an agreement between the US and Serbia on strategic co-operation in the field of energy, which was signed in September 2024 and came into force in March 2025. Bechtel entered preliminary talks about potential involvement with the Djerdap 3 project as early as 2021. The company was also award a contract by the Albanian government for preliminary works on the planned 210MW Skavica hydropower plant in 2021, but actors such as environmental group CEE Bankwatch Network raised concerns that the contract was awarded without a tender process . Hydro output accounted for 25pc of Serbia's generation mix last year. By Jessamy Guest Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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