South Korea’s SK E&S to supply 350 H2 buses in Cheonan

Spanish Market: Hydrogen
10/11/23

South Korean upstream firm SK E&S has signed a business agreement with Cheonan city in South Chungcheong province to supply 350 hydrogen-fuelled buses by 2027.

These buses will include city and chartered buses, and the agreement also includes building liquefied hydrogen charging infrastructure with a focus on establishing such facilities in public bus garages. SK E&S' 30,000 t/yr Incheon liquefied hydrogen plant will start production from the end of this year, with the supply to be used as fuel for the hydrogen buses.

The firm has also signed business agreements with other cities, with plans to operate 1,000 vehicles in Busan by 2025, 2,000 in Incheon by 2030, 1,300 in Seoul by 2026, 100 in Wonju by 2026, and 300 in Goyang by 2027.

This is in line with the country's aim to convert over 2,000 commuter buses into hydrogen-fuelled buses by 2026, with Seoul envisioning the transportation sector as a key driver of hydrogen demand in its hydrogen roadmap released in 2022.

SK E&S separately on 7 November signed an initial business agreement with domestic firm Korea Water Resources (K-water) and US firm Plug Power to expand domestic and overseas green hydrogen business. This includes building domestic and overseas green hydrogen production facilities with SK Plug Hyverse — a joint venture between SK E&S and Plug Power — to supply polymer electrolyte membrane water electrolysis facilities to such projects.

K-water is also looking into hydropower projects, with an eye on using the renewable energy produced for green hydrogen output. K-Water in September finished building what it described as the country's first green hydrogen production facility using hydropower at the Seongnam water purification plant.

By Tng Yong Li

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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.

EU eases ICE phase-out with 2035 CO2 car target: Update

16/12/25

EU eases ICE phase-out with 2035 CO2 car target: Update

Adds details on credits, transport commissioner comment in paragraphs 4-6 Brussels, 16 December (Argus) — The European Commission has proposed a new 90pc cut in car fleet emissions by 2035, replacing the previously agreed 100pc target that would have effectively phased out the sale of internal combustion engine (ICE) vehicles from that date The plan would allow some new ICE vehicles to remain on sale beyond 2035, alongside plug-in hybrids, range extenders and mild hybrids, as well as electric and hydrogen cars. The remaining 10pc of emissions would need to be offset through low-carbon steel, e-fuels or biofuels, according to the commission. The proposals need to be adopted by a majority in the European Parliament and among EU states. Automakers could also "bank and borrow" credits between 2030-32 to help meet the existing 2030 target of a 55pc cut from 2021 levels. Under the new proposals, manufacturers using these flexibilities would only need to achieve a 40pc fleet-average reduction, down from a previously planned 50pc. The commission indicated that credits for greenhouse gas (GHG) savings from e-fuels and biofuels can compensate up to 3pc of manufacturers' reference targets for 2035 and low-carbon steel credits can compensate for a further 7pc. Transport commissioner Apostolos Tzitzikostas said the credit system will boost uptake of sustainable fuels. "This is a clear signal than other technologies than battery electric vehicles (BEV) can be put on the market after 2035," said Tzitzikostas. Expanded carbon-neutral criteria would allow sustainable biofuels to help meet the targets that currently require 0g/km from 2035. EU renewable ethanol group ePure said emissions from ethanol were 79pc lower than fossil fuels in 2024, in line with previous years. The European Biodiesel Board reported savings of 77-81pc for biodiesel, using the official fossil fuel comparator of 94g of CO2e/MJ. German MEP Peter Liese criticised the original ICE ban, but said industry problems stem from market shifts, not from Brussels. "The industry must stop shifting the blame for its own mistakes and for market developments, for example in China, onto Brussels," he said, adding that he will push for green steel recognition before 2035. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU may crank up coal and steel research funds in 2027

11/12/25

EU may crank up coal and steel research funds in 2027

London, 11 December (Argus) — The European Commission could fund a much larger share of research in the coal and steel industry from 2027, according to a staff working document published yesterday. The EU Research Fund for Coal and Steel (RFCS) would fund 70pc of corporate research and 100pc of academic research into green initiatives if the EU moves forth with the proposal. It currently funds 50pc of both corporate and academic research projects, but has struggled to attract participants or meet its spending targets, noting that the "underspending of the project is rooted in a lack of attractiveness of certain aspects of the programme". RFCS spent 57pc of its €43mn ($50mn) budget for large coal projects and only 31pc of its €208mn budget for steel research from 2021 to 2024. Brussels, troubled by a lack of applications, consulted companies and academics this year and found that its spending requirements were the largest barrier. Most were unable or unwilling to fund 50pc of large research projects themselves. RFCS has supported a number of groups hoping to repurpose old coal mines for clean energy. GreenJOBS and Mine-TO-H2, two funding recipients, both plan on making green hydrogen from mine water, while GrEnMine received pilot funding worth €3.5mn to research new ways to store gravitational energy in abandoned mines. Others, such as REM and GI-mine, are working on new methods to capture methane from coal mines. In the steel sector, RFCS has awarded funds to hydrogen power projects such as ProSynteg and HYDREAMS and research groups such as BIOCODE, which hopes to replace up to 10pc of the coal in coke ovens with biomass. The EU dissolved the European Coal and Steel Community (ECSC) — an agency tasked with making a common European steel market, which eventually led to the creation of the EU — in 2002. The EU used revenues from ECSC assets to launch and fund the RFCS in the same year, and boosted the programme in 2021 by tapping into the assets themselves. By Austin Barnes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Bundeskabinett beschließt Anpassung der THG-Quote

10/12/25

Bundeskabinett beschließt Anpassung der THG-Quote

Hamburg, 10 December (Argus) — Das Bundeskabinett hat am 10. Dezember ein Gesetz zur Umsetzung der RED III in nationales Recht beschlossen. Das Gesetz wird voraussichtlich nicht vor dem 1. Januar verabschiedet, soll aber rückwirkend ab dann gelten. Damit passt der Gesetzgeber die Treibhausgasminderungsquote an und schafft die Doppelanrechnung fortschrittlicher Kraftstoffe ab. Preise für THG-Zertifikate steigen bereits. Die Gesetzesvorlage, die das Kabinett beschlossen hat, entspricht weitestgehend einem Entwurf vom 29. Oktober, der im November durchgesickert ist . So soll unter anderem die Quotenhöhe bis 2040 auf 59 % steigen. Für 2026 wird sie 12 % betragen. Flugzeug- und Schiffskraftstoffe sind von der Quotenverpflichtung ausgenommen. Das Gesetz beendet zudem die Anrechenbarkeit von Palmölprodukten, insbesondere Palmölmühlen-Abwasser (POME), auf die THG-Quote, wie bereits in einem früheren Ministerialentwurf vorgesehen. Allerdings tritt das Verbot für POME sowie die Pflicht für Kraftstoffproduzenten, Vor-Ort-Kontrollen durch eine zuständige Behörde eines EU-Mitgliedstaats zuzulassen, erst 2027 in Kraft. Damit bleibt 2026 ein Übergangsjahr. Der Gesetzentwurf bestätigt auch das Ende der Doppelanrechnung für fortschrittliche Biokraftstoffe, ein zentraler Unsicherheitsfaktor für Marktteilnehmer. Nach geltendem Recht können fortschrittliche Biokraftstoffe mit dem zweifachen ihres Energiegehalts auf die THG-Quote angerechnet werden, sofern das Mindestmandat für fortschrittliche Kraftstoffe erfüllt ist. In der Folge müssen Inverkehrbringer künftig mehr Biokraftstoffe auf dem Markt bringen oder THG-Zertifikate kaufen, um die Quote zu erfüllen. Die Änderung zur Abschaffung der Doppelanrechnung gilt jedoch für das gesamte Verpflichtungsjahr und alle Folgejahre, was bedeutet, dass sie rückwirkend ab dem 1. Januar 2026 greift. Die einzige Ausnahme gilt für Kraftstoffe, die vor dem 1. Januar 2026 in Verkehr gebracht wurden. Das Gesetz tritt am zweiten Tag nach seiner Veröffentlichung im Bundesgesetzblatt in Kraft, wobei einzelne Abschnitte aus verfahrensrechtlichen Gründen einen Tag früher wirksam werden. Der Gesetzentwurf muss nun dem Bundesrat und dem Bundestag zur Beratung vorgelegt werden. Die Zustimmung des Bundesrats ist nicht erforderlich. Der Bundestag könnte jedoch noch Änderungen einbringen. Erst nach Zustimmung des Bundestags kann das Gesetz dem Bundespräsidenten zur Unterzeichnung vorgelegt und anschließend im Bundesgesetzblatt veröffentlicht werden. Der Abschluss des Gesetzgebungsverfahrens wird im ersten Quartal 2026 erwartet. Änderungen bei Unterquoten, RFNBOs und Biomethan Das Mandat für fortschrittliche Biokraftstoffe aus Rohstoffen gemäß Anhang IX der RED III wird ebenfalls erhöht und soll bis 2040 9 % erreichen, wie bereits im Entwurf vom 29. Oktober vorgesehen. Das Mandat für erneuerbare Kraftstoffe nicht biogenen Ursprungs (RFNBOs) — wie E-Fuels und grüner Wasserstoff — fällt höher aus als im vorherigen Entwurf. Es steigt bis 2034 auf 2,5 % des Energiemixes eines verpflichteten Unternehmens, statt 1,8 % im Entwurf von Oktober, und erreicht 2040 8 % statt 4 %. Die Strafzahlung bei Nichterfüllung beträgt 120 €/GJ. Importiertes Biomethan kann auf die THG-Quote angerechnet werden, sofern bestimmte Bedingungen wie der Anschluss an das EU-Gasnetz erfüllt sind. Kleinere Anpassungen umfassen die Absenkung des Basiswerts für Emissionen von 94,1 kg CO2e/GJ auf 94 kg CO2e/GJ, um die EU-Vorgaben zu harmonisieren, sowie die Verschiebung der Frist für die Anmeldung beim Hauptzollamt vom 15. April auf den 1. Juni des Folgejahres. Markt reagiert mit Preissprung Der Markt für THG-Zertifikate reagierte sofort. Zertifikate der Kategorie "Andere" für 2025 werden am 10. Dezember rund 20 €/t CO2e höher gehandelt als am Vortag, und auch die Preise für Zertifikate für 2026 und 2027 steigen. Die Preise für 2025-Zertifikate steigen, obwohl sie von der Gesetzesänderung nicht direkt betroffen sind, da sie als Ersatz für 2027-Zertifikate gelten, weil überschüssige Erfüllung aus 2025 auf 2027 übertragen wird. Zudem könnte HVO künftig eine zentrale Rolle bei der Erfüllung der THG-Quote spielen, was die Zertifikatspreise beeinflussen kann. Die Nachfrage nach fortschrittlichem HVO könnte deutlich steigen, da es unbegrenzt auf die THG-Quote angerechnet werden kann — sowohl als Beimischungskomponente als auch als Reinkraftstoff — und in den meisten bestehenden Diesel-Fahrzeugflotten eingesetzt werden kann. Das Ende der Doppelanrechnung könnte auch die Nachfrage nach nicht-fortschrittlichen Biodiesel-Sorten wie RME (Rapsbasis) und UCOME (Altspeiseölbasis) erhöhen. Deren Anrechenbarkeit ist zwar auf einen bestimmten Prozentsatz des Energiemixes eines Unternehmens begrenzt, doch wurde diese Grenze in der Vergangenheit nicht immer ausgeschöpft. Von Max Steinhau & Chloe Jardine Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

German cabinet passes EU RED III

10/12/25

German cabinet passes EU RED III

Hamburg, 10 December (Argus) — The German cabinet on 10 December approved legislation to implement the EU's Renewable Energy Directive (RED III) into national law. This will adjust the greenhouse gas (GHG) reduction quota and abolish double counting of advanced fuels from 2026. But it is unlikely to pass remaining legislative processes in time for the EU's 1 January deadline. The bill passed by the cabinet largely follows a draft dated 29 October that was leaked in November. The overall quota level will rise to 59pc by 2040. Aviation and marine fuels are exempt from the quota obligation. The law will end the eligibility of palm oil products, most notably palm oil mill effluent (Pome), for compliance towards the GHG quota. This exclusion, and a requirement for fuel producers to allow on-site audits, will not come into effect until 2027, leaving 2026 as a transitional year. The end of double counting for advanced biofuels removes a key point of market uncertainty. Under current rules, advanced biofuels can be counted as twice their energy value towards the GHG quota, provided the minimum sub-mandate for advanced fuels has been met. But the change to end double counting will apply to the entire compliance year and all subsequent years, meaning it will be retroactive to 1 January. The only exception is for fuels supplied prior to 1 January 2026. The law will enter into force on the second day after publication in the Federal Law Gazette, with selected sections taking effect a day earlier for procedural reasons. Before that can happen, the bill must be submitted to the Germany's lower and upper parliaments for debate. The lower house's approval is not required, and the upper house could initiate changes. The bill can only be submitted to the Federal President for his signature once the upper house has given approval. This process is likely to conclude in the first quarter of 2026. Changes to sub-quotas, RFNBOs, biomethane The sub-mandate for advanced biofuels, made from feedstocks listed in Annex IX of RED III, will rise to 9pc by 2040. The mandate for renewable fuels of non-biological origin (RFNBOs) — such as e-fuels and green hydrogen — is higher will rise to 2.5pc of an obligated company's energy mix in 2034, and then to 8pc in 2040. The penalty for non-compliance is €120/GJ. Imported biomethane can be counted towards the GHG quota, provided it meets certain conditions, such as a connection to the EU gas grid. The baseline emissions value is 94kg CO2e/GJ, aligned with the rest of the EU. The registration deadline with the main customs office is 1 June. The market for GHG certificates reacted immediately. Other certificates for 2025 are trading around €20/t CO2e higher than the previous day, and prices for 2026 certificates are rising. Prices for 2025 certificates are rising, although they are unaffected by the change. They are seen as a substitute for 2027 certificates because excess 2025 compliance will be carried over. Hydrotreated vegetable oil (HVO) could now play a central role in meeting the GHG quota, which can influence certificate prices. Demand for advanced HVO could increase significantly, as it can be counted without limit towards the GHG quota as a blending component and as a pure fuel and can be used in most of the existing diesel vehicle fleet. The end of double counting could increase demand for non-advanced biodiesel grades, such as rapeseed-based RME and used cooking oil-based Ucome. Although the eligibility of these is capped to a certain percentage of a company's energy mix, this limit has not always been fully utilised in the past. by Max Steinhau and Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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