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Shell venture eyes creating hydrogen supply and demand

  • Spanish Market: Biofuels, Hydrogen
  • 11/10/21

Shell wants to break what it calls the "chicken and egg problem" in European hydrogen through a partnership that it hopes will create demand and supply at the same time.

The venture sees Shell team up with specialty-vehicle manufacturer Paul Nutzfahrzeuge and German downstream firm MaierKorduletsch. The former will build hydrogen-powered medium sized fuel-cell trucks, and the latter will build and operate filling stations for them. Shell will provide the hydrogen.

Paul Nutzfahrzeuge plans to begin mass production of its truck by 2023, and Shell said it could have up to 50 hydrogen filling stations by 2025, with the participation of other partners and public funding. The project is subject to a final investment decision, Shell said.

In a similar initiative, Shell New Energies in the Netherlands recently said it would from 2024 start operating a hydrogen filling-station network for Daimler heavy trucks between its planned green-hydrogen production sites in Rotterdam, Cologne and Hamburg. Daimler Truck plans to hand over the first heavy hydrogen trucks to customers from 2025. The partners' plan provides for the continuous expansion of the hydrogen infrastructure in this corridor so that 150 hydrogen filling stations and around 5,000 heavy fuel-cell trucks of the Mercedes-Benz brand can go into operation from 2030.

Shell has begun operations in July at the 10MW Refhyne 1 electrolyser at its Reinland Energy and Chemicals Park, Cologne, and expects to make a decision later this year on adding the 100MW Refhyne 2 to the site. It plans to build a 200MW electrolyser in the Port of Rotterdam, which it intends to start by 2023 when it will produce around 50,000–60,000 kg/d of hydrogen. And Shell will build an electrolysis plant with a capacity of 100MW at its recently closed Moorburg coal-fired plant in Hamburg, Germany, with Swedish utility Vattenfall and Japanese engineering firm Mitsubishi Heavy Industries.


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09/10/24

IEA: Renewable growth by 2030 to fall short of tripling

IEA: Renewable growth by 2030 to fall short of tripling

London, 9 October (Argus) — Paris-based energy watchdog the IEA expects renewable additions to grow by 2.7 times by 2030, according to its 2024 report. This would surpass most individual countries' targets, but fall short of the target set at last year's Cop 28 gathering of tripling growth. Solar photovoltaic (PV) additions are forecast to drive this growth, making up 80pc of new power plants by 2030. China is expected to be responsible for 60pc of this growth, the IEA said. With 670GW of new renewable capacity added so far in 2024 — a 20pc increase on the year — the IEA expects half of global energy generation to come from renewables by 2030. The EU is expected to double the pace of renewable capacity growth between 2024 and 2030. While the IEA sees renewable growth being driven increasingly by the market rather than government policies, executive director Fatih Birol deems slow grid connection the biggest hurdle facing expansion. The average wait for a connection permit is seven years for wind and five for solar. And lead author of the report, Heymi Bahar, added that PV manufacturers have been limiting expansion investment in response to a supply glut, with forecast manufacturing capacity for 2030 revised down from last year's report because of the financial risk facing smaller producers and negative net margins. The report also highlights the need for more investment in wind turbine manufacturing. Despite estimates that electricity generated from renewables will almost double by 2030, the IEA sees renewable fuels — bioenergy, biogas, hydrogen and e-fuels — expanding by just 28pc by 2030, and making up less than 6pc of the energy mix. Europe is also expected see a 6pc increase in renewable fuel demand between 2023 and 2030. Geothermal, tidal and concentrated solar power growth is expected to decline because of a lack of policy support, while hydro is expected to account for less than 1pc of global renewable additions by 2030. By Bea Leverett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

IEA raises Australian renewable power capacity forecast


09/10/24
09/10/24

IEA raises Australian renewable power capacity forecast

Sydney, 9 October (Argus) — Australia is expected to add more than 52GW of renewable power capacity over 2024-30, with 57pc of the country's electricity generation coming from renewable sources in 2030, Paris-based energy watchdog the IEA announced today. The forecast revision in the IEA's Renewables 2024 report released on 9 October is 2pc higher than the 2023 estimate, it said, although the previous annual report included forecasts up to 2028, with a 49pc renewable share expected for that year. The country's share of renewables in 2023 was around 34pc, according to the IEA. Australia is expected to add around 52.2GW of new capacity between 2024-30 under the IEA's main case scenario, led by utility-scale solar photovoltaic (PV) at 18.6GW, onshore wind at 15.3GW and distributed solar PV at 13.8GW. Hydropower capacity additions are forecast to reach 2.3GW over that period, while renewables dedicated to hydrogen production total 2.2GW. The IEA expects additions to gradually rise in the coming years, from 5.4GW in 2024 and 5.5GW in 2025 to 6GW in 2026, 6.9GW in 2027 and 8GW in 2028. Additions would peak in 2029 at 11.5GW and fall back to 9GW in 2030. Australia is targeting an 82pc share of renewable sources in nationwide electricity generation by 2030, with the federal government expanding its Capacity Investment Scheme (CIS) and launching the first major 6GW tender in May . Tenders will run every six months until 2026-27 for a total of 32GW, consisting of 23GW of renewables — solar, wind and hydro — and 9GW of dispatchable capacity such as pumped hydro and grid-scale batteries, all to be in operation by 2030. Apart from the CIS scheme, corporate demand for renewable energy — mostly through power purchase agreements — and continued growth in distributed solar PV will contribute to the increase in renewable capacity in Australia, stated the IEA. Challenges for utility-scale additions include curtailment, which remains high because of grid constraints, and lengthy connection wait times, the IEA said, although new rules could ease these delays. "Should some or all of these issues be addressed, our accelerated case indicates that growth could be nearly 20pc higher," it said, noting that new renewable capacity could reach nearly 63GW over 2024-30 in that instance. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

ThyssenKrupp Steel weighs decarbonisation plans


07/10/24
07/10/24

ThyssenKrupp Steel weighs decarbonisation plans

London, 7 October (Argus) — German steelmaker ThyssenKrupp Steel Europe is evaluating its decarbonisation plans, partly as a result of increased costs. The steelmaker may scrap its plans to build a direct-reduced iron (DRI) plant in Duisburg, a participant close to the company told Argus last week. "The situation is currently being reviewed. We currently assume that the direct reduction plant can be implemented under the given framework conditions," a Thyssenkrupp Steel Europe spokesperson said. Potential cost increases for the planned DRI plant have no impact on the confirmed federal and state subsidies, the steelmaker said. The European Commission earlier this year approved Germany's plan to allocate up to €2bn to Thyssenkrupp for its decarbonisation efforts in Duisburg. Specifically, the breakdown indicated Thyssenkrupp would receive a direct grant of €550mn to build a DRI plant and two melting units expected to commence operation by 2026 in Duisburg. Abandonment of the project would most certainly mean the forfeiture of the €550mn provided by the German government. Europe currently faces a competitiveness issue when it comes to decarbonisation, given that electricity costs on the continent are estimated to be 2-3 times higher than in Asia and the US, ArcelorMittal's head of governmental affairs and decarbonisation, Stephane Tondo, said at an industry event last month. Gas prices are also higher, and DRI is typically fed with gas. With electricity making up 60-80pc of the cost to produce hydrogen , this could cause issues for ThyssenKrupp and other steelmakers that plan to decarbonise in the EU. Green hydrogen will be too expensive in the EU, head of ArcelorMittal Flat Carbon Europe Geert Van Poelvoorde has said. And geographically speaking, Germany finds itself in a disadvantageous position compared with the peripheries of Europe that benefit from a greater availability of wind and solar energy sources. Fellow German steelmakers Salzgitter and SHS have yet to announce any changes to their own decarbonisation plans, which involve the construction of DRI assets. By Carlo Da Cas Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil launches call for funding low-carbon H2 projects


07/10/24
07/10/24

Brazil launches call for funding low-carbon H2 projects

London, 7 October (Argus) — Brazil's energy ministry has launched a call for expressions of interest for low-carbon and renewable hydrogen projects to be considered for funding under Brazil's potential share of the $1bn under the industrial decarbonisation programme, led by Washington-based Climate Investment Fund (CIF). The funding scheme was announced on Friday . An initial statement by Brazil's energy ministry suggested that the $1bn amount would be for hubs in Brazil alone, but the ministry has clarified that the programme will be open to projects all over the world, mainly developing countries. CIF is backed by the World Bank. Projects should be at commercial scale and can embrace a variety of low-carbon production pathways and technologies, including carbon capture use and storage (CCUS) and ethanol reforming. The call closes on 2 November and selected projects will be announced by Brazil's energy ministry on 6 December. Brazil can then submit its project portfolio to CIF until 17 January. Each chosen country could receive between $125mn to $250mn for its projects, the ministry said. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Fossil fuel cars phase-out comes up again in Brussels


07/10/24
07/10/24

Fossil fuel cars phase-out comes up again in Brussels

Brussels, 7 October (Argus) — The European parliament will this week debate a "crisis" facing the EU's automotive industry which could lead to "potential" plant closures, putting discussions on already-decided CO2 standards for vehicles on the forefront. Members have faced increased efforts by industry arguing for or against speedy review of the EU's regulation on CO2 emission standards for cars and vans. The regulation sets a 2035 phase-out target for new fossil fuel cars. The European commission is expected to give a statement to parliament, but a spokesperson told Argus that any change to the EU CO2 standards for cars and light vehicles would require a legal proposal by the commission to both parliament and EU member states. The priority, the spokesperson said, is on meeting 2025 targets for fleet CO2 reductions, agreed in 2019, but the commission is aware of "different opinions" in industry. Automakers association Acea has been calling for a "substantive and holistic" review of the CO2 regulation. The transition to zero-emission vehicles must be made "more manageable", assessing real-world progress against the ambition level. On the other hand, European power industry association Eurelectric today told members of parliament that bringing forward a review of the EU's regulation on CO2 standards for cars and vans to the start of 2025 would only encourage carmakers to hold off on making lower-priced and smaller electric vehicles (EV). The next CO2 target for car fleets is set to take effect in 2025. It requires a 15pc cut in emissions for newly registered cars. Some member states view the CO2 target cuts, and phase-out of the internal combustion engine (ICE) by 2035, as contentious. The regulation was only approved after a delay to normally formal approval. And parliament's largest centre-right EPP group is calling for a revision of CO2 standards for new cars to allow for alternative zero-emission fuels beyond 2035. As a counterweight to such pressure, Austrian, Belgian, Dutch and Irish ministers today called on commission president Ursula von der Leyen to step up EU action to push decarbonisation of company vehicles, notably light duty vehicles. "We need to consider action on the demand side in order to push zero-emission vehicles sales. Corporate fleets are the EU's most important market segment," the four ministers told von der Leyen. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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