Vattenfall to build 100MW hydrogen plant at Moorburg

Spanish Market: Hydrogen, Metals
22/01/21

Swedish utility Vattenfall will build an electrolysis plant with a capacity of 100MW at its recently closed Moorburg coal-fired plant in Hamburg, Germany.

The project remains subject to a final investment decision (FID) but the company estimates the plant could start generating hydrogen in 2025, according to its planning schedule.

The utility has joined forces with Shell, Japanese engineering firm Mitsubishi Heavy Industries and Hamburg's municipal heating company to build the plant that will generate hydrogen from the electricity generated from offshore wind farms in the German North Sea and onshore wind turbines and solar units in the region.

Under a letter of intent signed by the partners, they also aim to build a green energy hub on the same site and investigate further to what extent the existing infrastructure at Moorburg can be used in the future to generate energy based on renewable power.

The partners also aim to apply in this quarter for funding under the EU's programme for projects of common interest.

The partners said the Moorburg site has ideal conditions for further use. It is connected to both the national 380kV transmission network and the 110kV network of the city of Hamburg.

Numerous potential customers for green hydrogen are located in the vicinity of the site, so that the entire hydrogen value chain — from generation to storage and transport to specific applications in the various sectors — can be mapped on site, Vattenfall said.

The previous 1.6GW Moorburg coal-fired power plant was taken out of the wholesale market in December last year as Vattenfall won a bid in the first tender for coal-capacity closures. The company is still waiting for a final decision by the relevant transmission system operator on the system relevance of the plant, which is scheduled for March 2021.

By Jacqueline Echevarria

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23/12/25

Viewpoint: EU safeguards may shift FeSi, Si demand

London, 23 December (Argus) — New European Commission safeguard measures will support ferro-silicon prices in 2026, but they will also drive increased substitution of the alloy with silicon metal. The commission imposed safeguard measures on manganese alloys, ferro-silicon and ferro-silico-magnesium on 18 November. The safeguard measures comprise tariff-rate quotas and out-of-quota variable duties. Imports in excess of the quota are subject to an out-of-quota variable duty that is the difference between the established price threshold and the actual import price. The commission has imposed an established price threshold of $2,408/t on ferro-silicon. This is more than double the average Argus assessment of $1,371/t ddp NWE as of 12 December. Market gains clarity after a tumultuous 2025 The safeguard investigation that led to the implementation of safeguards drove several extreme spikes in volatility in the ferro-silicon market over the course of 2025. Rare updates on the safeguard process, sudden bursts of speculation and delays led to periods with sharp surges in imports and transactions and then periods with almost no liquidity, as market participants waited for news from the commission. As a result, ferro-silicon prices were volatile across the year, with buyers and sellers alike unsure how to react. Market participants, particularly trading firms, bemoaned their inability to carry out advanced planning. Prices rose in the first quarter, as market participants stocked up on third-country material in expectation of an announcement from the commission by April. When no outcome was announced, prices decreased from March-June. Prices rose sharply in late July and early August because of speculation that the announcement was forthcoming, and then plummeted again for September, October and much of November. Safeguards to drive higher prices, volatility in 2026 After the announcement of the new measures on 18 November, prices jumped by almost $300/t and have since remained at around and slightly above $1,500/t. Most market participants expect prices to stay at current levels or higher in the coming year. But continued volatility is expected. The new quota system, which renews every three months, is expected to result in altered purchasing habits as material enters the European market in bursts after the quotas renew. In this first three months of the safeguard measures, many of the quotas have been utilised more slowly than market participants expected. Some are still not full. But that has been attributed in part to hesitation from importers to try out the new system and in part due to low demand from end-users, which stocked up ahead of 18 November and are not buying in large quantities at present. One steel producer continues to refrain from buying and has been holding off since before the safeguards took effect, a senior executive at the company told Argus . Many market participants expect a more rapid utilisation of the available quotas in the first and second quarters of 2026, as industry players adapt to the new dynamics and consumers work through much of their existing stocks. Significant quantities of ferro-silicon are expected to enter Europe over the days that immediately follow the start of each new period. For consumers and importers, supply chain management has become significantly more complex and requires newly advanced planning. Importers now have more customs exposure, increasing their risk. Silicon substitution may increase Silicon metal can be substituted for ferro-silicon in many steel applications, although the deoxidisation provided by ferro-silicon cannot be completely replicated using silicon metal and iron powder. Silicon metal has not been included in the safeguards, despite a strong desire for it to be subject to the measures from many ferro-alloy producers. Euroalliages, the main ferro-alloys industry association, [sought]( https://metals.argusmedia.com/newsandanalysis/article/2752028) the inclusion of safeguards in the initial measures. And major European ferro-alloys producer Ferroglobe continues to call for protectionist measures on silicon. But with silicon currently not subject to any such measures, consumers are likely to purchase silicon in place of ferro-silicon when it makes sense to do so on cost. Substitution is already taking place. Multiple large tenders after the implementation of safeguards went to silicon metal rather than ferro-silicon, a ferro-silicon producer told Argus . "As a manufacturer, we see it as an inconvenience that the customer gets used to using alternative products, and we are trying to avoid that by not pushing very high prices," the producer said. The substitution possibility is likely to put a ceiling on ferro-silicon prices below that of the minimum import price in 2026. If out-of-quota material is too expensive, consumers will turn to silicon metal, reducing demand for ferro-silicon and holding prices lower. "Price dynamics will be following silicon metal instead of market supply and demand. It will be silicon metal substitution that will be the price setter, and that is far below the ferro-silicon market," the producer said. But there is ongoing speculation that anti-dumping procedures for silicon metal are being prepared by the commission. If implemented, silicon metal would be more expensive than ferro-silicon from certain origins, which would reduce the substitution effect and support higher ferro-silicon prices. By Maeve Flaherty Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US economy expands by 4.3pc in 3Q

23/12/25

US economy expands by 4.3pc in 3Q

Houston, 23 December (Argus) — The US economy grew at the fastest pace in two years in the third quarter, reflecting increases in consumer spending, exports and government spending that were partly offset by a decrease in investment. Growth in gross domestic product (GDP) grew at a 4.3pc annual rate in the third quarter, according to the first of three estimates by the Bureau of Economic Analysis. That compared with 3.8pc growth in the second quarter and a contraction of 0.6pc in the first quarter. The US GDP growth beat the expectations of analysts surveyed by Trading Economics, who were forecasting growth of 3.3pc. Because of the partial federal government shutdown that ended on 12 November, this initial report for the third quarter replaces the release of the advance estimate originally scheduled for 30 October and the second estimate originally scheduled for 26 November. The report showed that consumer spending continued to fuel the economic expansion, as President Donald Trump retracted or softened some of his announced tariffs. Federal Reserve policymakers expect only one quarter point rate cut next year, as they see GDP growth ending next year at 2.3pc, Consumer spending rose by 3.5pc in the third quarter, following 2.5pc growth in the second quarter. Gross private domestic investment fell by an annual 0.3pc following a 13.8pc decline in the second quarter. Residential investment fell by an annual 5.1pc for a second quarter, as construction and purchases remained constrained by high interest rates. Equipment investment rose by an annual 5.4pc, reflecting spending in artificial intelligence. The Personal Consumption Expenditures price index increased by 2.8pc, accelerating from 2.1pc in the second quarter and well off the Fed's long-term target of 2pc. Exports rose by 8.8pc after a 1.8pc contraction in the prior quarter. Imports fell by 4.7pc after more than a 29pc annual decline in the second quarter. Imports subtract from growth. Net trade added 1.6 percentage points to the headline number. The "massive" contribution to headline growth from net trade "reflected goods imports continuing to slide, while exports remain resilient," Pantheon Macroeconomics said in a note. "That partly is due to the very limited retaliation to the tariffs from most trade partners, although the scale of the net trade boost to growth in (the third quarter) is unlikely to be sustained." Government spending rose by 2.2pc after a 0.1pc decline in the second quarter. Defense spending rose by 5.8pc. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: US FeTi to stagnate on oversupply in 2026

23/12/25

Viewpoint: US FeTi to stagnate on oversupply in 2026

Houston, 23 December (Argus) — An expected influx of ferro-titanium to the US is likely to continue to pressure prices in 2026 after imports surged this year, driven largely by weakness in the European steel market. Overseas ferro-titanium producers — facing lackluster demand in Europe — sought to take advantage of an arbitrage opportunity increasingly beginning in June, as offtake remained stronger in the US. European steel association Eurofer attributed the weakness in the European steel industry to declines in consumption from automotive and construction sectors because of volatility caused by the US's 15pc tariff on imports of EU-produced cars and heightened global tensions over country-specific tariffs. Ongoing economic uncertainty brought on by the tariffs restrained growth opportunities in manufacturing as trade disruptions and geopolitical tensions rose, according to Eurofer. US imports of ferro-titanium increased during the January-September period by 18.6pc to 1,804 metric tonnes (t) compared with the same year-prior period, according to the most recent data from the US Department of Commerce, which was delayed by the partial US government shutdown. Imports from top suppliers the UK and Canada dipped down by 10.6pc and 7.2pc, respectively, to 669t and 335t. Meanwhile, imports from Latvia surged 148pc to 447t, the largest increase, and metal began to trickle in more competitively from South Korea and Poland. The September data shows an increase of 119pc to 217t in imports from a year earlier. Five-year low prices persist Sell-side sources told Argus they hope the market has found its floor but remained concerned about ongoing weak European demand, should the pattern of offloading supply to the US continue into next year. Argus last assessed North American ferro-titanium prices at $2.15-2.30/lb fob warehouse on 18 December, down by 25pc from the beginning of the year and at a five-year low. Argus last assessed European ferro-titanium prices at $4.30-4.60/kg ($1.95-2.09/lb) on 18 December, down 26.4pc from the beginning of the year and also at a five-year low. US sellers expressed frustration and difficulty in booking spot sales. One trader cited persistent, unsustainably low prices as reasoning for exiting the ferro-titanium market altogether, with few expectations the market would rebound in the near future. Some sellers have opted to sit on their stocks, waiting for demand from cored-wire producers and mills to rebound in the new year, which is leading to a build-up of metal. Because of storage fees and other carrying costs, domestic traders said they would be unable to make a profit at the assessed range, aiming to offer in the range of $2.35-2.45/lb warehouse, but acknowledged no buying interest at those levels. During contract negotiations for 2026, some sellers incorporated price floors into their quotes in anticipation an oversupply of metal could further weigh on prices. Sellers repeatedly tied the health of the US ferro-titanium market to European mill demand, stating there would be no turnaround in US prices until offtake abroad picks up. Eurofer projected apparent steel consumption would recover slowly in 2026 but not before the first quarter. Possible tariff change could halt imports Efforts by US producers could relieve pressure, should Commerce back them. Domestic ferro-alloy producer Galt Alloys on 15 May asked Commerce to add ferro-titanium to the Section 232 national security tariffs on steel imports. The request was denied by the Commerce Department's Bureau of Industry and Security (BIS) on 1 August because the agency was already investigating the security implications of the US's ferro-titanium supply chains under a separate Section 232 investigation for processed critical minerals which is due to be finalized by mid-January. BIS is expected to provide a report with policy recommendations which could include tariffs to President Donald Trump once it finishes the investigation. Currently, ferro-titanium has a general duty rate of 3.7pc. By Jenna Baer Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: Chile vote may aid foreign Li firms

23/12/25

Viewpoint: Chile vote may aid foreign Li firms

Sao Paulo, 23 December (Argus) — Foreign miners eyeing Chile's world-leading lithium reserves may benefit from right-wing president-elect Jose Antonio Kast's victory on 14 December, while a key approval eases uncertainty about a pending deal between lithium producer SQM and state-owned mining company Codelco. Kast, Chile's new president plans to overhaul the national lithium strategy , which dates from outgoing left-wing president Gabriel Boric's administration. This adds to Kast's pro-market campaign promise to streamline the approval process for mining permits aiming to expedite investments in copper and lithium. If the newly elected president keeps his word, foreign companies could get access to Chile's large lithium reserves more easily, rekindling development of its stagnant lithium industry . Chile's restrictive lithium laws make it difficult for companies to operate independently, as 1979 legislation classifies lithium as a nuclear material, meaning firms can only mine it after obtaining a special operating contract known as a CEOL — which can take years to be approved. Under Boric's lithium strategy, companies seeking to explore lithium resources in the Atacama region must also form a joint venture (JV) with a state-owned Chilean firm, on top of securing the CEOL, further complicating entry for private and foreign investors. Kast has repeatedly said that he would make lithium "concessionable," meaning it would cease to be a nuclear material, which is subject to increased oversight. This would allow interested companies to extract it through a regular concession with a new, streamlined approval process, thus facilitating foreign investment and overruling Boric's CEOL-based lithium strategy. For that to happen, he would need to alter a pair of clauses of the national mining code, rectifying the changes through law. He has the full support of Chile's mining chamber to do so, but any changes would have to go through both congress and the senate, where his allies are a minority. Changing the national lithium strategy might not be a priority itself for Kast, but it can be bundled into his larger project of boosting mining through streamlined permitting and tax cuts, something he wants to achieve in his first 18 months in office. Kast takes the presidential seat on 11 March, but the governmental transition began on 15 December, a day after the election. Chile, the world's second-largest lithium producer, has failed to establish any new lithium extraction projects other than those of Albemarle and SQM, which have dominated the domestic industry since 1984 and 1997, respectively. It has long been Latin America's leading lithium producer, but some forecasts see Argentina catching up by 2030 . Albemarle and SQM will continue to be the only producers in Chile until at least 2032, when Rio Tinto is scheduled to begin production at its Altoandinos project , or in the event that SQM's project changes hands. Chilean exports of lithium carbonate and hydroxide declined nominally in 2025 through November to 235,365 metric tonnes (t), down from 240,237t in the same period in 2024, according to customs data. SQM-Codelco almost clear of risk despite election Although Kast has publicly opposed the SQM-Codelco joint venture, he has said he would honor the agreement if it is legally signed by the time he takes office, a condition that now appears close to being met. Chile's comptroller general's office (CGR) has acknowledged the legality of the contracts that underpin the partnership between Chilean private company SQM and state-owned miner Codelco, which would allow SQM to continue lithium exploration in the Atacama salt flats until 2060. CGR's acknowledgement was the last external approval that the joint venture needed to materialize. Codelco said that it and SQM will now move forward to the deal's closing stages. The deal still could be overturned if the companies fail to close by 11 March, but that risk is slim. By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Policy is key for Cop 30 sustainable fuels pledge

23/12/25

Policy is key for Cop 30 sustainable fuels pledge

London, 23 December (Argus) — A UN Cop 30 climate summit pledge, known as "Belem 4x", to quadruple "sustainable fuels" use over 2024-35 has so far drawn 27 signatories, including major biofuels producers and consumers. But such a substantial increase could face constraints, including feedstock and land availability, and will depend on supportive legislation. The signatories pledged at Cop 30 to "expand sustainable fuels use globally by at least four times by 2035 from 2024 levels", including by "adopting ambitious national policies". Sustainable fuels, in the context of the pledge, refers to liquid biofuels, biogases, "low-emissions hydrogen and hydrogen-based fuels", according to energy watchdog the IEA. The pledge follows an IEA report in October developed for the Cop 30 presidency, which found that a fourfold increase "is ambitious yet achievable". Under the IEA scenario, liquid and gaseous biofuels would meet around two-thirds of sustainable fuel demand in 2030, while hydrogen and hydrogen-derived fuels would "expand rapidly" after 2030. Cop 30 host Brazil proposed the pledge in September , based on the IEA's preliminary findings, and the commitment was launched with India, Italy and Japan at the pre-Cop event in Brasilia, Brazil in October. The pledge now has 27 signatories from Latin and North America, Asia, Africa and Europe, encompassing sustainable fuels producers and consumers. Canada, Indonesia, Mexico and the Netherlands are among the signatories. The pledge "sends an important political signal: scaling up sustainable fuels is not only necessary for climate goals, but feasible", the European Waste-based and Advanced Biofuels Association (Ewaba) told Argus . "Europe's biodiesel sector shows how sustainable biofuels can strengthen energy security, reduce import dependence and deliver immediate climate benefits using existing vehicles and fuel infrastructure," Ewaba added. Rising demand Sustainable fuels are typically used in transport sectors, which are among the highest-emitting, particularly in advanced economies. Although transport electrification is expanding, it is typically not moving fast enough to hit climate targets in line with the Paris Agreement, while shipping and aviation will require multiple decarbonisation solutions. Hydrogen and related fuels are also likely to see uptake from industry and power generation. Global demand for sustainable fuels doubled over 2010-24, and is already expected to grow this decade, boosted by policies designed to drive emissions reductions and support energy security. Conversely, the removal of tax credits for electric vehicles in the US, and recent weakening of the EU target for zero-emission cars are also likely to support increased biofuels consumption. The full implementation of existing and announced policies and targets, "plus the removal of market barriers, could lead to a near-doubling of sustainable fuel use in just six years", the IEA said. This could attract investment for new production capacity, it added. It also recommended prioritising infrastructure and supply chain development, as well as innovation funds for new technologies. The IEA found that sustainable fuels could cover 10pc of road transport demand, 15pc of aviation demand and 35pc of shipping fuel demand by 2035 — although it would "vary widely" by region. In an accelerated case, the IEA found that liquid biofuels could provide 8.07EJ in energy in 2030, up by 62pc from 2024 levels. The picture shifts by 2035 in the scenario, with biogas supply more than doubling and low-emissions hydrogen more than quadrupling, both from 2030. Land-use concerns But a near-term focus on increased biofuels production sparked concerns from several organisations about feedstock availability and the land conversion implications. "Such a massive uptake in biofuels could have calamitous consequences for the environment and climate, depending on how this pledge is interpreted," European non-governmental organisation (NGO) Transport & Environment (T&E) said. It flagged land cleared for crops such as palm oil, soy, sugarcane and corn. T&E projections show that "under current growth trends and policies, 90pc of biofuels will still be reliant on food and feed crops by 2030." The IEA noted "limited" expansion opportunities for biofuels from waste oils and fats, while it recommended improving crop yields for other feedstocks. But climate change is likely to hamper crop output. The UN Environment Programme warned recently that under a ‘business as usual' pathway, land degradation "is expected to continue at current rates, with the world losing fertile and productive land the size of Ethiopia or Colombia annually". Cop pledges often aim to drive an existing trend faster, and this is typically evident in the signatories — a coalition of the willing. Brazil has vast ethanol production capacity and strong domestic consumption mandates, like India, while another signatory, Chile, is forging ahead with renewable hydrogen production. The pledges, like all climate action, rely on strong policy, but commitment from key countries is more likely to achieve results. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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