EU green hydrogen uncompetitive into 2030s: Aurora
Consultancy Aurora Energy Research expects blue hydrogen and imported green hydrogen to be cheaper than domestically produced green hydrogen in Europe in the medium term, according to a report released today.
European hydrogen demand could increase eight-fold by 2050, as countries work toward net zero, Aurora said. Hydrogen consumption rises to 2,500TWh by 2050 in a high-use scenario, where heating switches to hydrogen. By comparison, the European power system is currently around 3,000-3,3200TWh, Aurora said.
The cheapest source of low-carbon hydrogen by 2030 would be blue hydrogen produced in the Netherlands or Norway, followed by imported green hydrogen from Morocco. Aurora defines blue hydrogen as made from natural gas but combined with carbon capture and storage, and green hydrogen as made from water and electricity using electrolysis.
Green hydrogen from Morocco will be cheaper because power prices are much lower. A large rollout of solar is depressing power prices in Morocco, although it is still building coal-fired capacity. As a result, such green hydrogen may be more carbon intensive than blue hydrogen. This problem will also exist in European countries slow to decarbonise, for example in Germany, which still has a high share of coal and lignite in its power generation mix, Aurora said.
Aurora sees levelised costs of green hydrogen at €91-121/MWh for electrolyser plants built in 2025.
The lower end comes from flexible projects that can optimise production according to power prices. The optimal load factor for such projects would be around 50pc. If the load factor gets too high, it would be running during times of higher power prices, while if it falls too low, the capex costs per MWh produced would rise, Aurora said.
In Britain and Spain, hydrogen from flexible electrolysers will be cheaper than blue hydrogen by the late 2030s. It becomes cheaper in France by the early 2040s, and in Germany by the mid 2040s, Aurora's modelling shows.
Electrolysers co-located with renewable capacity will have higher costs than flexible or inflexible assets using power from the grid. This is primarily because low load factors increase capex — an electrolyser co-located with solar in Spain would have a load factor of just 22pc. Such a plant would still be cheaper than an inflexible asset using grid power in Spain in the 2030s, but will always remain more expensive than a flexible asset, the report said.
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Kosovo confident in winter 24-25 supply: TSO
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Pertamina supplies first SAF to Virgin Australia
Pertamina supplies first SAF to Virgin Australia
Singapore, 19 September (Argus) — Indonesian state-owned refiner Pertamina has supplied its first sustainable aviation fuel (SAF) to airline Virgin Australia, as part of the continuing Bali International Air Show. Pertamina is supplying around 160 kilolitres (kl) of SAF to Virgin Australia's Boeing 737 aircraft from the Ngurah Rai aviation fuel terminal in Bali for flights during 18-19 September. This was part of the 3,500 kl of blended SAF that Pertamina had sought for end-August delivery, intended to be used at the air show. The remaining volumes will be sold to other airlines and sales will be assessed before any further SAF purchases are made, a company source said. The SAF is a blend of 38.43pc synthetic kerosine produced from used cooking oil (UCO) and 61.57pc fossil jet fuel, said the director of central marketing and commerce at Pertamina Patra Niaga Maya Kusmaya. Pertamina also has plans to co-process SAF from UCO at its Cilacap refinery next year, before producing SAF by the hydrotreated esters and fatty acids pathway when its Cilacap "green refinery" comes on line, said a company source, although more details have yet to be disclosed. SAF distributed at Ngurah Rai is also managed using mass balancing, meaning that while jet fuel is mixed with SAF in the same tank as both have similar technical specifications, recording and bookkeeping for both products are managed separately. Pertamina obtained International Sustainability and Carbon Certification (ISCC) Corsia and ISCC EU RED-compliant certification for its SAF last month. The SAF supplied also meets ASTM international standards. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Western Australia to allow some onshore gas exports
Western Australia to allow some onshore gas exports
Darwin, 19 September (Argus) — Western Australia's (WA) state government will allow onshore developers of gas fields to export about 20pc of their output as LNG during a five-year window, in response to a growing failure to bring on new supplies for the domestic market. WA previously banned onshore gas exports, except in the case of Australian independent Beach Energy's 250 TJ/d (6.7mn m³/d) Waitsia stage 2 project . Beach may be required to share its infrastructure with fellow Perth basin firms, the WA government said, to expedite market access for new projects. Australian mining firm Mineral Resources, which has argued for permission to export 85pc of the gas from its Lockyer project as LNG and fellow WA-based firm Strike Energy may benefit from the changes, as both hold significant reserves in the Perth basin. The changes apply to new onshore developments or existing projects seeking to expand production. Developers are required to reserve 80pc of gas produced for WA, with this rising to 100pc from 2031 onwards. The policy shift follows dire outlooks for WA's gas supplies as the state attempts to wean itself off coal-fired power generation. It currently contributes about a third of the electricity into the state's largest power grid. A parliamentary report last month warned WA cannot rely on sporadic appeals for more gas to meet demand. "These policy changes are sensible responses that balance the need for Western Australia to secure its energy future while encouraging onshore producers to bring on more gas supply as and when it is needed," mines and petroleum Minister David Michael said on 19 September. The 15pc reservation for offshore LNG projects will continue, while WA has promised more transparency on the policy with the publication of a yearly WA Domestic Gas Statement to reveal how producers are meeting obligations, with a review to take place after two years. An interim parliamentary report tabled earlier this year showed about 8pc of the state's offshore gas output has reached WA consumers since 2006, representing just over half the required volumes. Following public criticism of LNG producers' contributions, Australian independent Woodside Energy has since pledged an extra 32PJ (854mn m³) of domestic supplies by the end of 2025 . WA will also seek to strengthen laws designed to prevent companies banking prospective onshore oil and gas tenements, with a review into the "use it or lose it" policy to be led by the state's energy department. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Advanced Fame marine biodiesel blends hit 9-month low
Advanced Fame marine biodiesel blends hit 9-month low
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