Germany launches CCUS support

  • Spanish Market: Emissions
  • 08/02/21

Germany's economy and energy ministry is preparing a subsidy programme aimed at supporting the country's raw material industry in developing technologies for carbon capture and utilisation or storage (CCU/CCS).

The ministry last week published a "CO2 avoidance and use in raw material industries" funding directive, which is scheduled to go live on 1 May.

The new programme will support companies in developing CCU/CCS technologies "towards market maturity", the ministry said.

Supported technologies will include the necessary infrastructure for storing CO2 in the North Sea, direct air technology in combination with CCS (DACCS), and the use of bioenergy with CCS (BECCS).

The budget has been set at €105mn for 2021, then an initial €120mn/yr until 2025.

The ministry expects the support programme to stimulate not just a CCU/CCS process chain, but also a "CCU/CCS ecosystem" in Germany. The goal is to establish the necessary technological and process expertise, then secure and pool it.

The programme must also look at securing acceptance for CCU/CCS as a "bridging technology" towards decarbonising industry.

The ministry announced last week a tender for managing the programme.

The successful bidder will support the ministry and participating companies in preparing the notification process at the European Commission.

The manager will also ensure the programme makes good use of synergies with other existing support programmes for CCU/CCS technologies, both domestic and outside Germany.

Germany's industry emits around 180mn t/yr of CO2 equivalent, of which around 30-40pc is process-linked and cannot be avoided using today's state of the art technology, the ministry said.


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26/04/24

Germany urges closer NDC-climate finance link

Germany urges closer NDC-climate finance link

Berlin, 26 April (Argus) — German federal chancellor Olaf Scholz today stressed the need for nationally determined contributions (NDC) to the Paris climate deal to provide a framework and incentive for climate finance. NDCs — emissions cut targets which countries must draw up and regularly update under the Paris agreement — should provide "clear roadmaps for decarbonisation" to incentivise and reassure private investors, Scholz said at the 15th Petersberg climate dialogue in Berlin, a forum which paves the way for the UN Cop climate conference negotiations later this year. Drawing up an NDC is also about creating good framework conditions for investments in the individual countries themselves, Scholz said. In updating their NDCs, countries have an opportunity to secure investments in green technologies, he said. "Private investors are concerned about a reliable regulatory framework and good governance." Scholz echoed German foreign minister Annalena Baerbock's remarks made at the opening yesterday, when she proposed an "interlocking" of countries' NDCs with investment plans. Baerbock stressed the idea goes beyond getting the countries together to improve their NDCs. It would, for instance, ensure that fossil fuel producers announcing plans to reduce their production do not get penalised by a cut to their credit rating on the financial markets, she said. And it would be about facilitating matchmaking between the private sector in developed countries, and bringing together the ambitions enshrined in the NDCs with instruments ensuring they can be financed, Baerbock said. She gave the example of Barbados, which she said is using its NDC "not just as a national climate action plan but also as a national investment plan", by creating a bank that brings together various factors "linking climate-policy planning, project implementation, and public and private financing". Both Scholz and Baerbock reiterated calls for larger developing countries that have "significantly" contributed to emissions in the past 30 years, and which have the financial means to contribute, to do so. Cop 29 will be held in Baku, Azerbaijan, in November. Finance will be a key topic as countries must decide on a new global goal, the so-called New Collective Quantified Goal (NCQG) on Climate Finance, to replace the pledge missed by developed countries to give $100 bn/yr to developing countries by 2020. Baerbock called for a new annual climate finance budget for developing countries of $1 trillion. Germany plans to modernise its bilateral debt conversion programme, Scholz said. "This is not a panacea, but vulnerable middle-income countries that are willing to reform could also be eligible for climate debt conversion in the future," he said. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

MDBs, parties must deliver on finance: Cop 29 president


25/04/24
25/04/24

MDBs, parties must deliver on finance: Cop 29 president

Edinburgh, 25 April (Argus) — Cop 29 president-designate Mukhtar Babayev pointed to insufficient action from multilateral development banks (MDBs) despite encouraging discussions, and urged all countries to play their part to deliver on climate finance negotiations this year. Climate finance discussions will be an important part of climate negotiations this year, having been "one of the most challenging climate diplomacy topics over the years", Babayev said today at the 15th Petersberg climate dialogue in Berlin — a forum for multilateral discussions. The meeting is a key milestone in climate discussions, paving the way for Cop 29 negotiations. The topic will be key as countries must decide on a new global finance goal to replace the $100bn/yr by 2020 pledge to developing countries made in 2009 and missed by developed countries. Babayev said he was working with a range of actors including MDBs, which have a "special role" as "multilateral public finance contributed the single largest part of the [$100bn/yr] target". Babayev said progress from the MDBs was essential, but while he "had many encouraging engagements during the World Bank and IMF spring meetings in Washington last week , we heard a great deal of concern and worry that we did not yet see adequate and sufficient action". "That must change," he said. He also warned that there is no single initiative able to unlock and increase climate finance flows to trillions of dollars, and instead pointed to "many interconnected elements" that countries will need to consider to set this new finance goal — the so-called NCQG. He added that the NCQG working group has already identified many options. "We know that [there are] strong and well-founded views on all sides," he said. "We are listening to all parties to understand their concerns and help them refine official landing zones based on a shared vision of success so we can deliver a fair and ambitious new goal," he added. "We need everyone to play their part so that we can build up unstoppable momentum where everyone is confident that their contribution is fairly matched by the contributions of others". Germany's foreign minister Annalena Baerbock said industrialised countries need to live up to their responsibilities. "Financial contributions from developed countries and multinational development banks will remain the basis of our efforts," she said, confirming that Germany has a €6bn climate goal for 2025. But she also said that "the world has changed" since the UN climate body the UNFCCC established a list of climate finance donors in 1992. The list has just 24 countries, plus the EU, as contributors. "In 1992, the two dozen countries that provided international climate finance made up 80pc of the world's economy. Now, that share is down to 50pc, and the share of all other countries has more than doubled," she said. She urged other countries in the G20, including China, "to join our effort". She pointed out that the donor base was broader for the loss and damage fund — to tackle the unavoidable and irreversible effects of climate change. Cop 28 host the UAE, which is not part of the 1992 list of donors, was the first contributor of the new fund created in Dubai last year. Babayev said that finance will not be the only important topic discussed at Cop 29 and that work must be done to get "the loss and damage fund up and running". Finalising the Article 6 negotiations will also be a key issue. "We cannot leave everything to market mechanisms," he said. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US-led carbon initiative misses launch date


23/04/24
23/04/24

US-led carbon initiative misses launch date

Houston, 23 April (Argus) — The Energy Transition Accelerator (ETA), a global initiative to use voluntary carbon market revenue to speed the decarbonization of developing countries' power sectors, has missed its planned Earth Day launch but continues to prepare for doing business. At the Cop 28 climate conference in Dubai last year, the initiative's leaders said they hoped to formally launch the program on 22 April 2024 . That didn't happen, but the program's leaders last week announced that the US climate think tank Center for Climate and Energy Solutions will serve as the ETA's new secretariat and that former US special presidential envoy for climate John Kerry will serve as the honorary chair of an eight-member senior consultative group that will advise the ETA's design and operations. The ETA plans to spend 2024 "building" on a framework for crediting projects they released last year. ETA leaders said the initiative could ultimately generate tens of billions of dollars in finances through 2035. The ETA also said the Dominican Republic had formed a government working group to "guide its engagement" as a potential pilot country for investments and that the Philippines would formally participate as an "observer country" rather than as a direct participant immediately. The ETA is still engaging Chile and Nigeria as potential pilot countries too, the initiative told Argus . The ETA is being developed by the US State Department, the Rockefeller Foundation, and the Bezos Earth Fund and would be funded with money from the voluntary carbon market. The initiative's ultimate goal is to allow corporate and government offset buyers to help developing countries decarbonize their power sectors through large projects that accelerate the retirement of coal-fired power plants and build new renewable generation. As of now, the ETA's timeline for future changes and negotiations with countries and companies is unclear. The program's goals are ambitious, especially at a time when scrutiny of some voluntary carbon market projects from environmentalists has weighed on corporate offset demand. By Mia Westley Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil RNG supply still seeks demand


22/04/24
22/04/24

Brazil RNG supply still seeks demand

Sao Paulo, 22 April (Argus) — The mismatch between growing Brazil biomethane supply and consumers willing to pay its higher prices still looms over projects expected to go on line in the next few months. There are three projects pending final approval from hydrocarbons regulator ANP to begin operating: Adecoagro's 14,400 m³/d plant in Mato Grosso do Sul, H2A Soluções Ambientais's approximately 4,300 m³/d plant in Goias and Raizen-Geo Biogas' 130,400 m³/d plant in São Paulo. The regulator has no timetable for final approvals. Another 10 biomethane plants, adding up to more than 502,400 m³/d, are scheduled to finish construction this year. Still, most of the upcoming projects lack customers for the additional supply, according to market sources. Finding buyers for this more-expensive natural gas substitute can be difficult, as relatively few companies have specific budgets for decarbonization. Brazil has six plants with ANP authorization to produce and sell about 417,100 m³/d of biomethane. Another 139,000 m³/d of capacity is scheduled to become operational in 2025, bringing total certified biomethane supply to at least 1.2mn m³/d in the next two years. First movers in the biomethane consumer market have been paying a premium to the parity price against natural gas. This premium represents the value of the lower carbon levels in biomethane, which does not always carry tradable certification. Brazil's lack of a market for biomethane guarantees of origin, such as biomethane renewable energy certificates (Gas-RECs), is also inhibited by doubts about the main emissions reporting platform, the GHG Protocol. In 2015, the GHG Protocol allowed the use of biomethane certificates to offset emissions, only to remove them from their documents in 2020, citing the need for more studies. Countries that created regulatory mechanisms before the GHG Protocol changed course have a competitive advantage over Brazil, according to Fernando Giachini Lopes, director of Instituto Totum, which certifies biomethane renewable energy certificates (Gas-RECs) and I-RECs in Brazil. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

TotalEnergies takes FID for Oman's Marsa LNG


22/04/24
22/04/24

TotalEnergies takes FID for Oman's Marsa LNG

Dubai, 22 April (Argus) — TotalEnergies has taken a final investment decision (FID) for the integrated Marsa LNG bunkering project it is carrying out in Oman with state oil company OQ. The project involves the production of 150mn ft³/d (1.55bn m³/yr) of gas from Oman's onshore block 10, the liquefaction of that gas at a new 1mn t/yr capacity plant to be built at the port of Sohar on Oman's north coast, and the construction of a 300MW solar generation facility that will power the plant. The ambition of the project is to serve as the first LNG bunkering hub in the Mideast Gulf region, showcasing "an available and competitive alternative marine fuel" to reduce emissions coming from the shipping industry. TotalEnergies said today that it expects to begin producing LNG by the first quarter of 2028. That LNG is "primarily intended to serve the marine fuel market in the Gulf", the company said, but all LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and OQ. "We are proud to open a new chapter in our history in the sultanate of Oman with the launch of the Marsa LNG project, together with OQ," TotalEnergies chief executive Patrick Pouyanne said. TotalEnergies holds a majority 80pc stake in the joint venture, with OQ holding the remaining 20pc. "We are especially pleased to deploy the two pillars of our transition strategy, LNG and renewables, and thus support the sultanate on a new scale in the sustainable development of its energy resources," Pouyanne said. TotalEnergies, Shell and OQ formalised an agreement to develop the gas resources in Oman's block 10 in late 2021 . The consortium began producing gas from the Mabrouk North East field in block 10 in January 2023. At the time, the companies said they expected to reach plateau production of 500mn ft³/d by the middle of 2024. But TotalEnergies today said the consortium had already reached plateau this month. As part of the original agreement, Marsa LNG was due to deliver production from the block to the government for 18 years, or until the end of 2039. But the decision by TotalEnergies and OQ to take FID has triggered an extension of Marsa LNG's rights to block 10 until 2050. The planned 300MW photovoltaic solar plant should cover 100pc of the LNG plant's annual power consumption, which will help "significantly" reduce greenhouse gases. "By paving the way for making the next generation of very low-emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy," Pouyanne said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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