Fortescue partners Japanese firms on green hydrogen

Spanish Market: Electricity, Fertilizers, Hydrogen
14/12/20

Australian iron ore producer Fortescue Metals is planning to work with Japanese energy firm Iwatani and engineering firm Kawasaki Heavy Industries (KHI) to study a green hydrogen project, aiming for future exports to Japan.

Fortescue has signed an initial agreement with Iwatani and KHI to consider developing together a supply chain of liquefied hydrogen that is produced from renewable energy sources in Australia. The firms plan to produce hydrogen from solar and wind power sources, liquefy this green hydrogen and then export it to Japan using liquid hydrogen carriers.

Fortescue is separately considering building a 250MW green hydrogen plant at Bell Bay in Tasmania with the capacity to produce 250,000 t/yr of green ammonia, powered by renewable energy. The project will be an important step towards positioning Australia at the forefront of a bulk export market for green hydrogen, the company said.

Australia is becoming a popular destination for Japanese firms to invest in the green hydrogen sector. The two countries are working together on strategies to reduce greenhouse gas emissions, advancing hydrogen co-operation to support national and global transitions to a resilient, low-emissions economy.

Iwatani last month started a feasibility study on green hydrogen production in Australia with Queensland state-controlled power utility Stanwell, also aiming to export the liquefied hydrogen to Japan. Iwatani is the only liquefied hydrogen supplier in Japan, currently producing 120mn m³/yr. The company has a 70pc share of the domestic compressed hydrogen market.

KHI is also focusing on hydrogen in the firm's energy and environmental solutions sector, having decided to withdraw from its nuclear power-related business operations.

By Motoko Hasegawa

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17/09/24

Cop 29 presidency sets out initiatives, summit agenda

London, 17 September (Argus) — The president-designate of the UN Cop 29 climate summit, Azerbaijan's Mukhtar Babayev, has set out 14 initiatives and a detailed agenda for the conference, including a new focus on methane reduction and tackling barriers to a "clean hydrogen" market. There is an "urgent need to harmonise international frameworks, regulations and standards to create viable business models" for hydrogen, Babayev said. The Cop 29 presidency will build on the declaration of intent on mutual recognition of hydrogen certification schemes, made at Cop 28 last year, it said. It plans to launch a framework to set priorities ahead of Cop 30, scheduled for November 2025 in Brazil. The Cop 29 presidency also aims to tackle "the growing problem of methane from organic waste", it said. Methane — a potent greenhouse gas (GHG) — is often a focus at Cop summits, although typically with an eye to the largest emitters, the agriculture and fossil fuel industries. Babayev has called for governments to commit to targets to cut methane from organic waste in their climate plans, as well as for more signatories of the Global Methane Pledge. The pledge, launched in 2021 at Cop 26, asks signatories to cut methane emissions by at least 30pc by 2030, from 2020 levels. The Cop 29 presidency has also developed a two-pronged pledge, which seeks to scale up global installed energy storage capacity to 1.5TW by 2030 and add or refurbish more than 80mn km of power grid by 2040. It has developed a "green energy zones and corridors" pledge as well, to maximise sustainable energy generation and ensure "cost-effective transmission over large distances and across borders". Babayev provided further details of a planned climate fund , which will be capitalised by fossil fuel producing countries and companies. "We believe that countries rich in natural resources should be at the forefront of those addressing climate change," Babayev said, noting that the direction came from Azerbaijan's president Ilham Aliyev. The fund will be a public-private partnership, with "concessional and grant-based support to rapidly address the consequences of natural disasters" in developing countries, Babayev said. It will "provide offtake agreement guarantees for small and medium-sized renewable energy producers and first-loss capital for green industrial projects", with a focus on food and agriculture, he said. Cop 29 is set to take place in Baku, Azerbaijan on 11-22 November. It will be the first Cop hosted in the Caucasus region, Babayev noted. He flagged the "extreme heat [and] water scarcity" the region faces, but also pointed to its wind and solar power potential. Topics of other programmes set out today include water, climate action in tourism and a peace initiative which emphasised the "interplay between conflict and climate change". By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Clean H2 to hit 12mn-18mn t/yr by 2030, goals in doubt

17/09/24

Clean H2 to hit 12mn-18mn t/yr by 2030, goals in doubt

London, 17 September (Argus) — Global supply of clean hydrogen could reach 12mn-18mn t/yr by 2030, up from less than 1mn t/yr currently online, according to industry body the Hydrogen Council. This is well short of global government targets and suggests supply will remain far below estimates of what is needed to combat climate change. Announced projects could provide 48mn t/yr of capacity by 2030, of which around 75pc would be renewable hydrogen and the remainder 'low-carbon' output from natural gas with carbon capture and storage, the association said in its Hydrogen Insights 2024 report published today. But only 4.6mn t/yr of this has moved to a final investment decision (FID) or beyond and "natural attrition" — prioritising the most viable projects — means many of the announced ventures will not materialise as planned, the Hydrogen Council said. A "probability adjustment", based on completion rates for other renewables projects, suggests only around 30pc of the announced capacity will be operational by 2030, the group predicts, although the 12mn-18mn t/yr estimate does not factor in potential future announcements. If these forecasts materialise, governments around the world are bound to spectacularly miss production targets set for 2030. The EU and the US are targeting 10mn t/yr of domestic production each, India 5mn t/yr, while Egypt, Saudi Arabia, Oman and the UAE have goals for at least 6.5mn t/yr between them. Scores of other countries have ambitious goals. The forecast would also fall far short of climate change imperatives. Paris-based energy watchdog the IEA estimated last year that 69mn t/yr of clean hydrogen would be needed by 2030 to put the world on track for net-zero emissions by 2050. The Hydrogen Council puts this at 75mn t/yr. The Hydrogen Council has pointed to global macroeconomic headwinds as a key reason for slow progress, along with uncertain regulation within the sector. A slew of recent project cancellations have counteracted the optimism arising from an increased number of FIDs . Growing up Still, the industry has shown some encouraging signs of maturity, even if it is not on track to meet the heady targets set by many governments and companies, the Hydrogen Council said. Committed funds for hydrogen projects past FID, being built, or in operation was $75bn across 434 projects as of May 2024, compared with $10bn across 102 projects in 2020, it said. The $75bn is nearly double the $39bn in this category as of October 2023. There was only a 15pc increase in the combined value of projects in the 'announced' category, to $303bn from $259bn, over the same period, signalling the pace towards realisation of projects is picking up. The near double growth in 'committed' funds was driven 60pc by investments in end-use, 40pc in infrastructure, and only 15pc by investments in hydrogen production. Investment decisions for end-use applications grew several times over between October 2023 and May 2024. This may satisfy market participants' repeated calls for a government focus on stimulating demand recently. But planned investments in end-use and infrastructure projects are lagging far behind what will be needed in a net-zero scenario, the Hydrogen Council said. Announced investments in end-use projects is $145bn below what is required by 2030, and midstream infrastructure is trailing by $190bn. But announced investments in production projects this year for the first time surpassed what will be necessary, with a $15bn surplus — although much of this could fall by the wayside. "With the current announced investments and the growth observed since last publication, investments are behind the required net-zero pathways with net-zero targets unlikely to be met," the Hydrogen Council said. By Aidan Lea Assumptions for probability adjustments % Project stage Assumed success rate In operation 100 Under construction 100 Post-FID 99 Front end engineering design 40-80 Feasibility study 5-40 Announced 0-20 - Hydrogen Council Global announced electrolyser capacity through 2030 GW As of Announced capacity Dec-20 55 Dec-21 115 May-22 175 Jan-23 230 Oct-23 305 May-24 375 - Hydrogen Council * based on the Hydrogen Council's probability adjustment, globally installed electrolysis capacity could reach 90GW by 2030 Investments until 2030 by project stage $bn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Von der Leyen puts forward EU commissioner candidates

17/09/24

Von der Leyen puts forward EU commissioner candidates

Brussels, 17 September (Argus) — European Commission president Ursula von der Leyen today presented candidates for commissioner posts, confirming names put forward for portfolios including climate, energy, agriculture and trade. Von der Leyen — who was confirmed by European Parliament as Commission president on 18 July — has committed to doubling down on climate and energy policy. Her 2024-29 mandate stipulates greenhouse gas emissions cuts of at least 90pc by 2040 compared with 1990. Her commissioners, if appointed, will implement those policies. She is nominating Teresa Ribera to oversee competition policy but also "clean, just and competitive transition" that would include energy, climate, environment and other Green Deal files. Ribera is Spain's deputy prime minister and responsible for the country's ecological transition. Von der Leyen has proposed the current EU climate commissioner Wopke Hoekstra for the portfolio of climate, net-zero and clean growth. Hoekstra, who replaced previous Green Deal commissioner Frans Timmermans , will also be responsible for taxation. Other nominees include former Danish climate minister Dan Jorgensen, up for energy and housing commissioner. Former Swedish minister for EU affairs Jessika Roswall is proposed for a portfolio including environment and circular economy, and Luxembourgish Christophe Hansen, a former member of EU parliament, is proposed as agriculture and food commissioner. Von der Leyen now needs to ensure that candidate-commissioners are approved by parliamentary committees and then by plenary. Hearings will also focus on candidates' abilities to implement policies. "Parliamentary scrutiny will not cut corners," European Parliament president Roberta Metsola said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Ethiopian EABC urea tender's lowest offer at $355/t cif

17/09/24

Ethiopian EABC urea tender's lowest offer at $355/t cif

London, 17 September (Argus) — Ethiopian Agricultural Businesses (EABC) closed a tender today to buy 250,000t of urea in five cargoes for September-October loading, with the lowest offer at $355/t cif. Pacific International appears to have offered at the lowest levels across all five cargoes on a cif basis. The firm offered lot 1 at $355/t cif, lot 2 at $359/t cif, while the offers on cif basis for the remaining three cargoes were at $368/t, $373/t, and $375/t, respectively. The urea is likely to be sourced from Oman. There were also seven other offers from suppliers. West Trade offered all cargoes, similarly to be sourced from Oman, on a cif basis at $375/t, $378/t, $380/t, $385/t and $382/t for lots 1-5, respectively. Midgulf likely offered one cargo under lot 5 at $410/t fob Egypt. Samsung offered three cargoes on a fob basis at $352/t fob Middle East, $375/t fob Egypt, and $362/t fob Middle East for lots 1,3 and 5. Supplier Fertiglobe appears to have offered $348/t fob under the first lot. ETG offered five cargoes, four of which are likely to be supplied from Onne, Nigeria, and offers were around $418/t cif, 419/t cif, $435/t cif and $422/t cif. Lot 4 was offered at $422/t cif basis and is likely to be sourced from Egypt. But there was no confirmation from the parties involved. Another supplier offered $450/t cif for lot 4. The lowest offer at $355/t cif marks a drop from $363/t cif under EABC's 12 July tender . By Dana Hjeij Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Energy firms on alert after flooding in Europe: Update

16/09/24

Energy firms on alert after flooding in Europe: Update

Adds details throughout Warsaw, 16 September (Argus) — Torrential rain has led to major flooding across large swathes of central and eastern Europe, causing power outages and significant damage to transport infrastructure in southwest Poland and the Czech Republic. Parts of Austria, Germany, Hungary, Slovakia and Romania are also affected. In Poland, most of the affected areas so far are in the southwest of the country close to the border with the Czech Republic including the towns of Jelenia Gora, Klodzko, Nysa and Glucholazy. Urban areas further down the Odra river are also at risk including the cities of Wroclaw and Opole, where elevated water levels are expected in the coming days. The Polish government held an emergency meeting earlier today and a state of emergency has since been declared in the affected areas. Polish utility company Tauron, which operates the electricity distribution network in the worst affected area, said some of its infrastructure was disconnected in several towns including Klodzko and Glucholazy. But Poland's power grid operator PSE said there has been no damage to transmission infrastructure. Likewise, Polish gas pipeline operator Gaz-System said it has not suffered any damage but remains in crisis mode. Polish train operator PKP Intercity suspended passenger rail traffic to and from the Czech Republic on 15 September until further notice, while local TV showed images of damaged road and waterways infrastructure, including bridges and dams as well as retail fuel stations. Poland's wholesale coal market, which is usually busy in the autumn, could stall in flood-hit areas for a few weeks as priority is given to the clean-up operation and repairing transport infrastructure, according to traders in the country. But Polish biofuel firm Bioagra, which operates a bioethanol plant near the flood-hit town of Nysa, told Argus that the facility continues to operate normally. In the Czech Republic, Orlen Unipetrol — operator of 108,000 b/d Litvinov and 66,000 b/d Kralupy refineries — said all its production sites continue to operate although the company has shut 11 of its service stations in the country. The firm said its crisis management team at each production site is monitoring the situation and it is in contact with authorities. Elsewhere in the Czech Republic, utility Veolia has had to shut plants in Ostrava and Krnov. Hungarian oil firm Mol — which operates service stations in Poland, the Czech Republic and Slovakia, as well as refineries in Hungary and Slovakia — told Argus that preparatory flood prevention works are underway. It is in contact with authorities and there is currently no threat to security of fuel supply, it said. Hungarian authorities expect water levels on the river Danube at Budapest to continue rising until the weekend, which could affect Veolia's 428MW gas-fired power plant at Gonyu upstream from the capital and potentially power firm MVM's 2GW Paks nuclear plant downstream from Budapest. Floods on smaller rivers Lajta and Raba in northwest Hungary are also yet to peak. Austrian refiner OMV said it has put in place precautionary safety and mitigation measures at its 193,700 b/d Schwechat refinery and two other sites at Gansendorf and Lobau in the federal state of Lower Austria, which was declared a disaster region on 15 September. No damage to property or people has been reported so far but OMV has closed four retail stations temporarily in the state as a precaution, it said. By Tomasz Stepien and Bela Fincziczki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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