Australia Aemo models faster move to net zero emission
The Australian Energy Market Operator (Aemo) plans to model a scenario with a transition to net zero greenhouse gas emissions in the early 2040s instead of the current ambition of the second half of the 21st century. Aemo will also assess the impact of Australia becoming a key exporter of hydrogen and green ammonia for its key power and gas outlook reports.
Aemo, which manages Australia's gas and electricity markets, publishes annual report on the future supply and demand expectations for gas and power markets in eastern Australia and Western Australia, as both are separate markets as there is no national gas or power market in Australia.
Aemo has received feedback from stakeholders on the need to extend the dimensions of the outlook scenarios. These included the pathways to recovery from the Covid-19 pandemic, the scale of decarbonisation ambition across the scenarios, and the consideration of greater electrification and potential hydrogen production, Aemo said in its draft 2021 inputs, assumptions and scenarios report said.
The proposal for the central scenario reflects current federal and state government policies and assumes that the future is shaped by market forces. This scenario contains the most probable outcome across each of the scenarios assessed, Aemo said.
A new scenario will be included in the annual electricity statement of opportunities and gas statement of opportunities as an export superpower, reflecting a possible future world that encompasses very high levels of global electrification, Australian hydrogen export opportunities, and domestic hydrogen usage that supports low-emission manufacturing, fuelled by strong policy to support growth and strong decarbonisation, Aemo said.
Both Australian federal and state governments have hydrogen policies to encourage the development of hydrogen as a fuel source.
The other scenarios are diversified technology, reflecting a possible future world that encompasses lower domestic gas prices given government incentives and interventions. Higher global investment in alternative low emissions technologies and local research and development in carbon capture and storage, Aemo said.
The other scenarios include the sustainable growth scenario, reflecting a possible future world that includes high global and domestic decarbonisation ambitions, aligned with strong consumer action on distributed energy resources, and higher levels of electrification of other sectors. The final scenario is the slow growth scenario that reflects a future world that encompasses prolonged lower levels of economic growth following the global Covid-19 pandemic, and includes a targeted economic stimulus to aid the recovery from Covid-19, that increases the uptake of distributed photovoltaics, and without direct policy for long-term decarbonisation.
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Clean hydrogen industry still upbeat but more realistic
Clean hydrogen industry still upbeat but more realistic
London, 17 May (Argus) — The clean hydrogen sector still lacks tangible progress and final investment decisions (FIDs) for projects remain few and far between, but it is reaching a moment of reckoning essential for market maturity, delegates at the World Hydrogen Summit in Rotterdam said. When asked whether they were more or less positive than a year ago, industry participants gave diverging answers, but there was widespread agreement that progress on clean hydrogen has been slower than expected. This has been "the year of doldrums", the Dutch port of Rotterdam's hydrogen supply chain programme manager Martijn Coopman said. Increasing material and financing costs, the unstable geopolitical situation and a lack of clarity on regulatory frameworks are just some of the challenges developers have faced. This is a "grim environment if you were expecting the Swiss army knife approach" to work, industry body the Australia Hydrogen Council's chief executive Fiona Simon said, alluding to the — misguided — expectation that hydrogen could be used across all sectors to help decarbonise. "We are coming to terms" on the real use and appropriate applications of hydrogen, Simon said, pointing to green steel production. "We are converging on the same concepts and same policies". The industry has reached the point where the wheat is separated from the chaff and it is becoming a lot clearer which projects will actually materialise. There is now a greater sense of "realism" underpinning discussions according to Dutch gas company Gasunie chief executive Willemien Terpstra. And this is why market participants are more optimistic than a year ago. Demanding as ever Still, delegates widely urged more policy action, especially on the demand side, which has been a recurrent theme. Spurring on demand will be key to get to more FIDs, Spanish utility Iberdrola's hydrogen development director Jorge Palomar Herrero, said. "We can have great intentions and great projects but without the demand, they are not going to happen". Even in Europe, which has pushed ahead with efforts to stimulate demand, these have not been enough to spur offtake, Herrero said. Demand-side incentives alone will likely not be enough and eventually there will have to be consumption obligations too, some said. Incentives may help to reduce project costs and kickstart production, but the amount of "carrots" needed is "phenomenal", so "sticks" will be key, the port of Rotterdam's Coopman said. Consumption mandates could help accelerate momentum in emerging markets and developing countries that have big ambitions for exports to future demand centres, the World Bank's private sector arm IFC energy chief investment officer Ignacio de Calonje said. Governments are now ready to act on these requests, according to industry body the Hydrogen Council's director for policy and partnerships Daria Nochevnik. "The penny has dropped," Nochevnik told Argus , noting that the need for demand-side action was the number one priority outcome of a ministerial-executive roundtable held in Rotterdam this week. Red and blue Governments must also remove red tape to speed things up, conference delegates said. European developers in particular are increasingly frustrated with paperwork involved in funding applications, according to German utility Uniper's vice-president for hydrogen business development Christian Stuckmann. Shortening lengthy permitting and funding processes is also high on governments' lists, Nochevnik noted. Some delegates renewed calls for a wider acceptance of "blue" low-carbon hydrogen made from natural gas with carbon capture and storage to address concerns that, if it is up to renewable hydrogen alone, things will start too late — or not at all. There appeared to be widespread consensus that this low-carbon hydrogen will have a key role to play, especially in a transitional period, as it can already deliver significant emissions reductions. But there is still a "stigma" in Europe, according to industrial gas firm Linde's vice-president for clean energy David Burns. This could hamper its adoption, which many delegates argued the world cannot afford. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japanese bank Mizuho boosts support for H2, ammonia
Japanese bank Mizuho boosts support for H2, ammonia
Tokyo, 17 May (Argus) — Japanese bank Mizuho Financial aims to provide ¥2 trillion ($12.8bn) in financial support for domestic and overseas cleaner fuel projects by 2030 to support Japan's plan to build a hydrogen supply chain. Private-sector Mizuho is offering financing to low-carbon hydrogen, ammonia and e-methane projects related to production, import, distribution and development of hydrogen carriers. Mizuho said it has in the past offered project financing for large-scale overseas low-carbon hydrogen and ammonia manufacturing projects, as well as transition loans. Japan is focusing on cleaner fuel use in the power sector and hard-to-abate industries, as part of its drive to reach net zero CO2 emissions by 2050. Japanese firms are getting involved in overseas hydrogen projects because domestic production is bound to be comparatively small and costly. They are looking to co-fire ammonia at coal-fired power generation plants to cut CO2 emissions and examining use of the fuel as a hydrogen carrier . Japanese companies have also partnered with several overseas firms on e-methane. Mizuho has to date offered $1bn for cleaner fuel projects. The bank has set a goal to accelerate the setting up of a clean fuel supply chain by addressing the financial challenge faced by projects requiring large investments. Mizuho has attempted to help Japan's decarbonisation push by tightening biomass and coal financing policies. Mizuho has also stopped investing in new coal-fired power projects, including existing plant expansions. The bank has a plan to reduce the ¥300bn credit available for coal-fired power development projects by half by the April 2030-March 2031 fiscal year and to zero by 2040-41. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Jera to handle 35mn t/yr LNG until FY2035-36
Japan’s Jera to handle 35mn t/yr LNG until FY2035-36
Osaka, 17 May (Argus) — Japan's largest LNG importer Jera plans to maintain its LNG handling volumes at no less than 35mn t/yr until the April 2035-March 2036 fiscal year. Rising renewable power supplies and the possible return of more nuclear reactors are likely to pressure LNG demand from Japan's power sector. Jera consumed 23mn t of LNG in 2023-24, down by 3pc on the year, although it handled 35mn t through its global operations during the same year. But Jera needs to secure sufficient LNG supplies to adjust for imbalances in electricity supplies and ensure power security, through more flexible operations. It is also looking to further promote LNG along with renewable electricity in Asian countries, while helping to reduce their dependence on coal- and oil-fired power generators. The 2035 target for LNG is part of Jera's three pillars of strategic focus, along with renewables as well as hydrogen and ammonia , which was announced on 16 May to spur decarbonisation towards its 2050 net zero emissions goal. The company plans to invest ¥5 trillion ($32bn) for these three areas over 2024-36. Jera also aims to retire all supercritical or less efficient coal-fired units by 2030-31 . This would help achieve the company's target of cutting CO2 emissions from its domestic business by at least 60pc against 2013-14 levels by 2035-36. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Biomass start-ups lift Japan's Renova April power sales
Biomass start-ups lift Japan's Renova April power sales
Tokyo, 17 May (Argus) — Japanese renewable power developer Renova's electricity sales doubled on the year in April, following the start-up of three biomass power plants in the past six months. Renova sold 199,601MWh of electricity — including solar, biomass and geothermal — in April, double the 99,857MWh a year earlier, the company announced on 13 May. The 75MW Sendai Gamo plant in northeastern Miyagi prefecture started operations in November 2023 and produced 40,753MWh in April. The 74.8MW Tokushima Tsuda plant in western Tokushima prefecture, which was commissioned in December 2023, generated 10,870MWh in April. The 75MW Ishinomaki Hibarino plant in Miyagi began normal runs in March and supplied 49,495MWh in April. Renova plans to add 124.9MW biomass-fired capacity in the April 2024-March 2025 fiscal year, with the 75MW Omaezaki plant in central Shizuoka city scheduled to begin commercial operations in July, followed by the 49.9MW Karatsu plant in southern Saga city in December. Omaezaki is currently conducting trial runs and Karatsu is under construction. The additions will increase Renova's biomass-fired capacity to 445MW. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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