South Korean energy firms step up hydrogen investments
South Korean firms are ramping up efforts to develop renewable hydrogen capacity as the country works towards its 2050 carbon neutrality goal.
Major energy firm SK is investing 18.5 trillion South Korean won ($16bn) to construct a 280,000 t/yr hydrogen ecosystem in Incheon by 2025.
The company, South Korea's biggest refiner, will produce 30,000t of liquified hydrogen by 2023 using by-product from its SK Incheon Petrochemical plant for supply to the local metropolitan area.
Phase two will add 250,000 t/yr of blue hydrogen produced from LNG and will use carbon capture and storage facilities to reduce greenhouse gas (GHG) emissions.
Investment is also going into the distribution network through the installation of 100 charging stations nationwide to distribute 80,000 t/yr of liquified hydrogen by 2025, while a pipeline is in the works to transport 200,000 t/yr of blue hydrogen to feed a new 400MW fuel cell power plant.
A $1.6bn partnership has been signed with US manufacturer Plug Power to provide hydrogen fuel cell systems, fuelling stations and electrolysers to South Korea and other Asian markets.
Other South Korean companies are also looking to invest in hydrogen, in their cases through partnerships in the Middle East. GS Energy entered an agreement with Abu Dhabi's state-owned Adnoc last week to develop blue hydrogen in the UAE.
And Hyundai Heavy Industries has signed an initial deal with Saudi Arabian state-controlled company Saudi Aramco to develop renewable hydrogen and ammonia.
The firm's refinery unit Hyundai Oilbank will import LPG from Aramco to convert into blue hydrogen for use at its refinery desulphurisation units and marketed for transport fuel and power generation. It plans to open 300 charging stations across the country by 2040 to strengthen supply chains. The volume of LPG covered by the deal has yet to be determined.
Aramco will also provide blue ammonia for use a fuel for LNG boilers scheduled to come on line by 2024.
Hyundai Heavy's Korea Shipbuilding & Offshore Engineering unit will also develop a vessel that can carry LPG cargoes and capture CO2, as well as pursue ammonia carriers and propulsion ships.
Hyundai Heavy earlier this year announced a W1 trillion investment to develop cleaner ships as part of the International Maritime Organization's drive for vessels to reduce CO2 emissions by 40pc by 2030 and by 70pc by 2050, alongside a 50pc GHG reduction by 2050 from 2008 base levels.
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Australia’s Tamboran agrees NT gas sales deal
Australia’s Tamboran agrees NT gas sales deal
Sydney, 23 April (Argus) — Australian independent Tamboran Resources has signed a long-term gas sales agreement with the Northern Territory (NT) government for supplies from the Beetaloo joint venture's (BJV) proposed Shenandoah South pilot project. The binding deal for 40 TJ/d (1.07mn m³/d) on a take-or-pay basis from Shenandoah South in the onshore Beetaloo sub-basin of the NT equates to a total 131.4PJ (3.5bn m³) and begins in January-June 2026, running for nine years with an option to extend 6½ further years to 2042, Tamboran said on 23 April. This represent about two-thirds of the NT's present gas requirements and is conditional on the BJV entering a binding transportation agreement with pipeline operator APA for the planned 35km Sturt Plateau Pipeline , as well as reaching a final investment decision (FID) for Shenandoah South. Tamboran has a working interest of 47.5pc in Shenandoah South, which is aiming for a FID mid-year, following Canadian independent Falcon Oil and Gas' decision to reduce its participation from 22.5pc to 5pc in March to reduce its cost exposure to the project. BJV is operated by Tamboran, which holds a 50:50 interest in the Tamboran B2 joint venture with privately-held Daly Waters Energy controlled by US billionaire Bryan Sheffield. The BJV also holds a 10-year, 36.5 PJ offtake deal with Australian utility Origin Energy signed in 2022. The NT is dependent on gas-fired power generation. Continuing supply problems at Italian oil firm Eni's offshore Blacktip field has it currently sourcing gas from Australian independent Santos' depleting Bayu-Undan field in the Timor Sea and the onshore Mereenie joint venture . Tamboran is aiming in the long term to develop its proposed 6.6mn t/yr Northern Territory LNG project , for which it is aiming to complete initial engineering this year. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil 1Q tallow exports triple on long-term contracts
Brazil 1Q tallow exports triple on long-term contracts
Sao Paulo, 22 April (Argus) — Brazilian beef tallow exports totaled 73,930 metric tonnes (t) in the first quarter, a three-fold increase from the same three-month period in 2023 on rising demand. Almost 93pc of outflows between January and March were shipped to the US, according to data from Brazil's trade ministry. Long-term contracts explain the rising flow of exports, even though spot market arbitrage was closed throughout the first quarter (see chart) . The price of tallow in the Paranagua and Santos ports was $960/t fob on 19 April, keeping the arbitrage closed to US Gulf coast buyers, where the reference product was at $901/t on a delivered inland basis. Brazilian tallow is also negotiated at a premium against soybean oil, which closed at $882/t fob Paranagua on 19 April. This scenario has been observed since the 1 December 2023 start of Argus ' tallow export price assessment. Historically, vegetable oil in Brazil was traded at a discount to tallow, but strong demand has boosted the price of animal fat. Some biodiesel plants have been purchasing used cooking oil (UCO) or pork fat as an alternative. In 2023, there were doubts about whether the outflow of tallow from Brazil would be constant. Market participants now believe that the 2024 start of operations at new renewable diesel refineries in the US should sustain exports. Local suppliers that have already signed supply guarantee contracts — some up to three years — with American buyers are also considering export opportunities with Asia, including a new renewable diesel plant in Singapore that could receive Brazilian cargoes. Expansion projects are propelling US demand, including work that would bring capacity at Marathon Petroleum's Martinez Renewables plants in California to 2.35mn m³/y (40,750 b/d)and the Phillips 66 Rodeo unit in northern Californiato 3mn m³/y. These and other new projects will increase annual US demand for tallow by 5mn t. Maintenance on the horizon Maintenance at US refineries has Brazilian sellers bracing for a short-term drop in prices. Between May and June the Diamond Green Diesel (DGD) unit in Port Arthur, Texas, will shut down for maintenance, a stoppage that could impact demand for Brazilian inputs. Market participants have already observed a slight increase in domestic tallow supply, a change they attribute to maintenance at DGD. The advance of the soybean crop in Argentina is also expected to increase the supply of feedstocks to North American plants, as some refineries are returning to soybean oil after a hiatus of several years. The soybean oil quote on the Chicago Board of Trade (CBOT) is an important reference for the price of tallow. By Alexandre Melo Renewable feedstocks in Brazil on fob basis R/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Balticconnector gas pipe recommissioned after rupture
Balticconnector gas pipe recommissioned after rupture
London, 22 April (Argus) — The Finland-Estonia Balticconnector gas pipeline has been re-commissioned, with commercial flows starting at the beginning of today's gas day. There were renominations for 12.5GWh of flows towards Finland and 78.2GWh in the opposite direction for today as of early afternoon, suggesting net flows towards Estonia of around 66GWh. Finnish demand remains relatively low, while stocks at Finland's Inkoo LNG terminal need to be mostly depleted before the upcoming arrival of a new cargo on 26 April. The Balticconnector was taken off line on 8 October following a rupture caused by a dragging anchor . The system operators of Finland and Estonia said at the time that the pipeline could return in April at the earliest, meaning the initial timeline set out for repairs has been met. The recommissioning of the Balticconnector could allow Finnish prices to realign with those in the Baltic markets now that the two areas are connected again. During the Balticconnector's absence, Finland was entirely reliant on LNG deliveries to Inkoo, meaning prices were highly volatile and frequently held significantly above prices further south. Price differentials reached a peak of nearly €58/MWh ($62/MWh) in mid-January as a cold snap caused Finnish power-sector gas demand to soar while stocks at Inkoo were relatively low. That said, the basis between the two markets has narrowed significantly since mid-March, and the Finnish price has on several days held lower than in the Baltics ( see graph ). By Brendan A'Hearn Finnish vs Estonian-Latvian prices Oct 2023-present €/MWh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
ExxonMobil turns up heat on climate activists
ExxonMobil turns up heat on climate activists
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