Chile signs green H2 agreement with EU ports
Chile struck a preliminary agreement with Belgium's Antwerp and Zeebrugge ports to facilitate future green hydrogen exports to the EU.
The deal comes after a meeting of Chile's energy minister Juan Carlos Jobet, Belgian energy minister Tine Van der Straeten and port representatives at the Cop 26 climate summit in Glasgow, Scotland.
It is aimed at ensuring international market channels for green hydrogen that Chile says it will supply at the world's most competitive prices, thanks to extensive solar and wind energy, and complement Santiago's earlier accords with Singapore and Rotterdam.
Chile's energy ministry forecasts $15bn in green hydrogen investment by 2030 in more than 60 projects, of which 15 have a start date for operations. By 2030, Chile expects to produce 1.2mn t/yr, of which 500,000 t/yr would be absorbed by domestic industries, including mining and steel.
Among the newest initiatives is a project to replace diesel with green hydrogen in the FCAB cargo railway serving northern Chile's extensive copper-mining industry.
Chile has pledged to reach climate neutrality by 2050.
Cloudy climate
The South American country's growing international climate credentials contrast with political volatility at home. Less than two weeks before general elections, the lower house of congress this morning approved a constitutional accusation against center-right president Sebastian Piñera for illicit gains from the 2010 sale of shares in a Chilean mining project. The accusation now shifts to the senate, where opposition parties are unlikely to marshal the required two-thirds of votes required to remove him.
Piñera's allies say the accusation is a political maneuver to discredit the ruling coalition ahead of 21 November elections.
According to recent polls, the two leading presidential candidates are far-left Gabriel Boric and far-right José Antonio Kast, with centrist rivals further behind. None is likely to jettison the government's hydrogen strategy, but contrasting platforms could cloud investment conditions regardless of who wins. A run-off ballot is likely in December.
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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.
Jera delays Hekinan NH3-coal co-firing test: Correction
Jera delays Hekinan NH3-coal co-firing test: Correction
Corrects trial period in first paragraph Osaka, 26 March (Argus) — Japan's largest power producer by capacity Jera has pushed back a trial to co-fire 20pc of fuel ammonia with coal at its Hekinan power plant to after the end of March. Jera previously said the co-firing demonstration at the 1GW Hekinan No.4 unit will start on 26 March at the earliest . But the company has decided to push this back. The trial will begin sometime after the end of this month, Jera said on 25 March. It took more time to test run equipment ahead of the demonstration, with safety the main priority, it added. It is unclear when exactly the company will start the trial to co-fire 20pc of ammonia with coal. Jera aims to demonstrate 20pc co-firing of ammonia with coal ahead of planned commercial operations in the April 2027-March 2028 fiscal year. It also hopes to achieve a 50pc mixture on a commercial basis in the first half of the 2030s. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazilian ports ally for decarbonization goals
Brazilian ports ally for decarbonization goals
Sao Paulo, 25 March (Argus) — Several of Brazil's main ports launched the Alliance for Decarbonization initiative, aimed at reducing emissions and boosting use of cleaner maritime fuels such as biobunkers and green hydrogen. The group has been working since 6 March and has 36 participants, including ports, associations, companies, terminals, unions, public bodies and start-ups. Major ports such Itaqui, Paranagua and Suape are part of the alliance. The Pecem, Acu, Rio Grande, Cabedelo and Rio de Janeiro ports also joined the initiative. Latin America's largest port Santos showed interest in the project but has yet to sign up, Itaqui's environmental manager and alliance coordinator Luane Lemos told Argus. The Spanish maritime alliance for net zero inspired the project and one of its members — the Valencia port — is a signatory to the Brazilian initiative. The group did not disclose a total estimate of how much greenhouse gas (GHG) emissions it plans to reduce. It main goals include exchanging information and ensuring baseline knowledge for participants about decarbonization matters, Lemos said. Another key point for the alliance is to accelerate the energy transition, as some ports have developed projects to mitigate emissions but struggle to find adequate equipment and labor. The members could also use the alliance to research and finance green hydrogen projects, she said. Itaqui spearheaded the initiative after releasing its decarbonization plan in late 2023. The port has a partnership with its counterpart in Valencia to reach net zero. State-controlled Petrobras' distribution arm Transpetro — which is part of the group — is talking with Itaqui to begin a pilot project to reach zero emissions at one of the loading docks its operates there, Lemos said. "One of Transpetro's proposals is to think how we would bring green bunker to Maranhao state to fuel berthed vessels," she added. If approved, the project would start in the second half of 2024. By Laura Guedes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Oil sands producers plan CCS network, hub
Oil sands producers plan CCS network, hub
Calgary, 25 March (Argus) — A group of Canadian oil sands companies are planning to build a massive C$16.5bn ($12.2bn) carbon capture and storage (CCS) project to decarbonize operations. Canadian Natural Resources (CNRL), on behalf of the Pathways Alliance consortium, filed plans for the project with the Alberta Energy Regulator (AER) last week to store 10mn-12mn t/yr of carbon dioxide (CO2) equivalent in the oil sands region of northeast Alberta. The Pathways Alliance also includes Cenovus, Suncor, Imperial Oil, ConocoPhillips Canada and MEG Energy, which account for about 95pc of the province's roughly 3.3mn b/d of oil sands production. Construction of the project is expected to begin as early as the fourth quarter 2025 with operations starting in 2029 or 2030. The main CO2 transportation pipeline will be 24-36-inches in diameter and stretch about 400km (249 miles). It will initially tap into 13 oil sands facilities from north of Fort McMurray to the Cold Lake region, where the CO2 will be stored underground. "When you have that concentration of emission sources, technologies like carbon capture and storage become very, very technically viable," Pathways Alliance president Kendall Dilling told the CERAWeek by S&P Global conference in Houston, Texas, earlier this month. Oil sands crude producers have been criticized for being particularly carbon intensive. The Pathways Alliance is their answer to driving operations to net zero by 2050. The CCS project and "a host of other technologies" represent Phase 1 of the Pathways Alliance's efforts and will reduce oil sands emissions by about 25pc by 2030, according to Dilling. The CCS project itself accounts for about half of this reduction. Phase 2 is planned for between 2031 to 2040 and would tie in at least another eight oil sands projects, while also ramping up alternative energy initiatives related to hydrogen, electrification and small modular nuclear reactors. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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