Trading firm Trafigura makes green hydrogen investment
Trading firm Trafigura will invest $62mn in Switzerland-based green hydrogen company H2 Energy Holding to help it with its plans to roll out a supply-chain network.
This marks a small step into the energy transition for one of the world's largest physical commodities trading groups, which will put its money into developing a business that could cut into one of its traditional markets. Trafigura will invest $20mn to support H2 Energy's development, and the rest will "seed and fund" a 50:50 joint venture, based in Zurich, that will roll out the model across Europe, excluding Switzerland.
Green hydrogen is produced from renewable energy, through electrolysis. H2 Energy is working with others to develop a hydrogen production facility, a hydrogen filling station, a hydrogen-powered truck and several hydrogen-powered cars. Trafigura trades close to 6mn b/d of oil of crude and oil products, along with metals and minerals. It has recently made investments that appear to shore up its position in the oil markets, including the acquisition of a 3pc stake in Italian refiner Saras, which owns the 300,000 b/d Sarroch refinery in Sardinia, and the purchase of a 10pc stake in Russian state-controlled Rosneft's ambitious Vostok Oil project in Russia's arctic.
Trafigura's other assets include a majority stake in global zinc and lead producer Nyrstar, a stake in global oil products storage and distribution company Puma Energy, and a stake in terminals, warehousing and logistics operator Impala Terminals.
"Our investment [in H2 Energy] has enormous potential at a time when the economics for green hydrogen use by heavy duty transport is becoming competitive with traditional fuels," Trafigura chief executive Jeremy Weir said. "We are looking forward to… bringing Trafigura's ability to evolve traditional supply chains to develop new markets."
H2 Energy chairman Rolf Huber said the joint venture with Trafigura "will enable the partners to execute on planned projects on a Europe-wide scale."
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ACT to partner with LR, Wartsila, and UECC on CNSL
ACT to partner with LR, Wartsila, and UECC on CNSL
London, 28 March (Argus) — Dutch supplier ACT Group is collaborating with classification society Lloyd's Register, Finnish engine manufacturer Wartsila, and Norwegian shipping firm United European Car Carriers (UECC) on the development and evaluation of cashew nut shell liquid (CNSL) as a biofuel in marine biodiesel blends. ACT confirmed the launch of a CNSL-based biofuel called "FSI.100", which has gone through extensive engine testing with various blend combinations. The CNSL-based biofuel has now received approval from engine manufactures to be blended as a 30pc component with marine gasoil (MGO) to form a marine biodiesel blend for the purpose of further sea trials. ACT confirmed that the FSI.100 product will benefit from lower acidity, and there is potential for the product to be compatible for blending with fuel oil. CNSL is an advanced biodiesel feedstock, making it a more appealing and price competitive option to buyers compared with other biodiesel feedstocks. The development follows a report by Lloyd's Register fuel oil bunkering analysis and advisory service (FOBAS) that pointed to a correlation between engine fuel pump and injector-related damage in vessels and the presence of "unestablished" CNSL in the utilised marine fuels. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Baltimore bridge collapse to raise retail fuel prices
Baltimore bridge collapse to raise retail fuel prices
Houston, 27 March (Argus) — The collapse of the Francis Scott Key Bridge in Baltimore, Maryland, is more likely to increase regional gasoline prices than diesel due to additional freight costs and certain route restrictions. Suppliers in the region have so far signaled that the effect on broader markets will be minimal, but regional prices will likely rise, especially as peak summer demand season begins with Memorial Day weekend in late May. The bridge closure could pose more problems for gasoline supply than diesel, since gasoline cannot be transported through the Fort McHenry (I-95) and Baltimore Harbor (I-895) tunnels — the two other major roads that cross the Patapsco River at Baltimore — while there are no restrictions on diesel, according to the Maryland Transportation Authority (MTA). Fuel wholesaler Global Partners said yesterday that it would like to see hours of service waivers for trucking in the region to minimize fuel supply disruption to customers, but the Federal Motor Carrier Safety Administration (FMCSA) is yet to issue one. Elevated retail prices are likely to be limited to the immediate Baltimore area but could spill over into neighboring markets should trucking markets remain tight due to rerouting, market sources told Argus . Fuel markets in eastern Maryland can be supplied by PBF's 171,000 b/d Delaware City, Delaware, refinery and two further plants in Pennsylvania — Monroe Energy's 190,000 b/d Trainer refinery and PBF's 160,000 b/d Paulsboro refinery. To the north, United Refining runs a 65,000 b/d plant in Warren, Pennsylvania, and along the Atlantic coast Phillips 66 operates the 259,000 b/d Bayway refinery in Linden, New Jersey. PBF, Monroe and United did not immediately respond to a request for comment on whether the bridge collapse is affecting refinery operations. Phillips 66 declined to comment on commercial activities. Still, the five nearby refineries — representing all the Atlantic coast's 850,000 b/d of crude processing capacity — are unlikely to see their operations curtailed by limits in shipping products to Maryland. With no refinery in the state of Maryland, most fuels are delivered to Baltimore by Gulf coast refiners on the Colonial Pipeline. Global Partners, which operates a terminal just west of the collapsed bridge, said yesterday it is primarily supplied by the pipeline and expects product flows to continue. Several terminals in the Baltimore Harbor and the nearby Port Salisbury can also receive small vessels and barges of road fuels from Delaware and Pennsylvania, according to the Maryland Energy Administration (MEA). The Port of Baltimore — which remains closed since the collapse — took delivery of 24,000 b/d of gasoline and under 2,000 b/d of distillates from barges and small vessels in 2019, about three percent of the Atlantic coast's refining capacity. "A closure of the Port of Baltimore while the Colonial Pipeline is open would not significantly disrupt fuel supply," the MEA wrote in a 2022 analysis of liquid fuels supply in the state. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
European bio-bunker March prices firm on uncertainty
European bio-bunker March prices firm on uncertainty
London, 27 March (Argus) — Marine biodiesel prices firmed in the second half of March across Europe as higher levels in underlying markets combined with supply uncertainty to lend support to blend prices, despite limited demand. Very-low sulphur fuel oil (VLSFO) firmed by $16/t to $585.58/t on a dob Amsterdam-Rotterdam-Antwerp (ARA) basis and $17.47/t to $628.17/t on a dob Gibraltar-Algeciras-Ceuta (GAC) basis during 14-26 March compared with the two weeks prior. Gains in the fossil market were mainly attributed to an increase in European refinery turnarounds as well as stronger crude values. The front-month Ice Brent crude futures 16:30 GMT marker averaged $86.07/bl on 14-16 March, an increase of $2.92/bl from 1-13 March. Rising fossil levels were accompanied by increases in the biodiesel spot barge market. Prices for advanced fatty acid methyl ester (Fame) 0°C cold-filter plugging point (CFPP) on a fob ARA barge basis averaged $1,407.15/t during the last two weeks of March, a $53.58/t rise from 1-13 March. Used cooking oil methyl ester (Ucome) barges firmed by $47.47/t to $1,316/t during the same timeframe. Biodiesel prices have firmed from long-term lows on the back of a reduction in European production and limited demand. Higher prices in underlying markets were accompanied by an emerging theme of biofuel supply uncertainty. Participants reported that European suppliers may look to steer away from Chinese-origin biodiesel as the EU's anti-dumping investigation continues, with a conclusion by early 2025 at the latest. This was compounded by chronic disruption in the Red Sea, historically the most utilised route on the east-west voyage, leading to traffic redirecting via the Cape of Good Hope and a subsequent increase in freight costs. The potential shift in supply routes can be supported by changes in product flows. Some 19,000t of Fame has been exported from China with a marked destination in Europe in March so far, an 80pc drop from February's 106,000t — according to Kpler data. This month's exports are just 10pc of the 184,000t exported from China to Europe in March last year, according to Kpler. Declining volumes from China were accompanied by an increase in Fame volumes exported from northwest Europe intra-continental to 409,000t in March from 364,000t a month prior. GTT data pointed to a 47pc decline in Chinese biodiesel exports in January-February, coinciding with an increase in Chinese exports of used cooking oil (UCO) with northwest Europe the main destination. Uncertainty in the supply import pool coincided with raised concerns around the presence of "unestablished" biodiesel feedstocks in bunker fuels. A report from Lloyd's Register fuel oil bunkering analysis and advisory service (FOBAS) highlighted a correlation between engine fuel pump and injector related damage in vessels and the presence of cashew nut shell liquid (CNSL) in marine fuels utilised by the vessels. CNSL is one of the cheaper advanced feedstocks and can be eligible for Dutch renewable tickets (HBE-G) — which can help make marine biodiesel blends more appealing and price competitive to buyers, as well as reduce production costs. But participants noted that during tests conducted by shipowners to assess the compatibility of CNSL with marine engines, technical and specification limitations emerged because of potentially high acidity and metal contents. This prompted shipowners and bunker suppliers to avoid fuels that contain CNSL, which may further constrict the pool of biodiesel supply that can be integrated into the maritime sector. Argus assessed the price of B30 Ucome dob ARA, a blend comprising 30pc Ucome and 70pc VLSFO, at $839.17/t during 14-26 March — an increase of just under $22/t from the 1-13 March average. B30 Advanced Fame 0°C CFPP dob ARA range averaged just over $785/t during 14-26 March, higher by $16.19/t from the two weeks prior. B100 Advanced Fame 0 levels rose by $16.62/t to $1,159.79/t in the second half of March. B24 dob Algeciras-Gibraltar firmed to $812.61/t in 14-26 March, an increase of $19.50/t from prices on 1-13 March. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Africa’s H2 project development lags behind: report
Africa’s H2 project development lags behind: report
London, 27 March (Argus) — The development of renewable hydrogen projects in Africa is lagging behind the global pace with only 1pc of African project volume having already reached final investment decision (FID) compared with a global average of 7pc, Brussels-based industry body Hydrogen Council said in a report. The projects that have moved to FID in Africa are small-scale ventures, located mainly in the southern part of the continent and focused on mobility or industrial applications, according to the Council's investment tracker. Even projects at an earlier stage in Africa are trailing behind development in other parts of the world. While 20pc of project investment volume are at front-end engineering design (FEED) stage or further globally, only 5pc of projects have progressed beyond FEED in Africa. The lag in project development is driven by perceived risks in African jurisdictions such as political and monetary instability, the Hydrogen Council said. Underdeveloped infrastructure also contributes to delays and uncertainty. Given the "right enabling conditions," Africa could supply 15pc of expected globally traded hydrogen volume which would translate into 1mn t/yr in exports by 2030, 5mn t/yr by 2040 and 11mn t/yr by 2050, according to the study. But realising these targets would require $400bn in investment. African countries offer promising cost-competitive renewable energy resources, but unlocking this potential will "require coordinated efforts across public and private sectors" and the creation of a "legal framework that helps mitigate risks," industrial gas firm Linde's chief executive and Hydrogen Council co-chair Sanjiv Lamba said. Most of the projects announced in Africa so far focus on exports to Europe and Asia, but demand within the continent could also drive adoption in the long-run, the authors point out. Applications in chemicals, refining and transportation in African countries could generate demand of 6.5mn t/yr by 2050. Industry participants in developing countries have long called for more financing mechanisms such as blended finance to help projects gather momentum in locations considered more risky and uncertain for investment. The largest projects in the pipeline are planned in North African countries such as Morocco , Egypt and Mauritania . By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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