Jera delays Hekinan NH3-coal co-firing test: Correction

  • Spanish Market: Electricity, Fertilizers, Hydrogen
  • 26/03/24

Corrects trial period in first paragraph

Japan's largest power producer by capacity Jera has pushed back a trial to co-fire 20pc of fuel ammonia with coal at its Hekinan power plant to after the end of March.

Jera previously said the co-firing demonstration at the 1GW Hekinan No.4 unit will start on 26 March at the earliest. But the company has decided to push this back.

The trial will begin sometime after the end of this month, Jera said on 25 March. It took more time to test run equipment ahead of the demonstration, with safety the main priority, it added.

It is unclear when exactly the company will start the trial to co-fire 20pc of ammonia with coal.

Jera aims to demonstrate 20pc co-firing of ammonia with coal ahead of planned commercial operations in the April 2027-March 2028 fiscal year. It also hopes to achieve a 50pc mixture on a commercial basis in the first half of the 2030s.


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09/05/24

Brazil's 3tentos cuts soy crop outlook amid floods

Brazil's 3tentos cuts soy crop outlook amid floods

Sao Paulo, 9 May (Argus) — Brazilian agribusiness company 3tentos cut its soybean crop outlook for this season because of the floods ravaging southern Rio Grande do Sul state. An important part of 3tentos' operations is headquartered in Rio Grande do Sul, the second-largest soybean producer in the country, which has been facing heavy rainfall since 29 April that has killed 107 people, according to the state's civil defense. As a result, Rio Grande do Su's soybean crop may drop to 20mn-21mn metric tonnes (t) from 23mn-24mn t previously predicted, according to 3tentos' chief executive Luis Osorio Dumoncel. At least 80pc of soybeans harvested this year are stored in warehouses or ports. "We have been working tirelessly to maintain all operations in the supply of inputs, grains, feed and biofuels," he said during a quarterly earnings call. The company sees a "tiny risk" to its supply chains of pesticides, seeds and fertilizers because of the floods. On the logistics side, alternative export routes have also been used to ship products such as soybean meal, chief operating officer Joao Marcelo Dumoncel said. 1Q results 3tentos' first quarter sales reached R2.68bn ($520mn), a 48.5pc hike from the same period a year earlier, driven by the industry, biodiesel and soybean meal segments. The industry segment, the firm's largest, accounted for R1.52bn in sales, rising by 69pc year-over-year. Soybean meal and other products' revenues totaled R927.6mn, 72pc higher than in the first quarter in 2023. Biodiesel sales increased by 64pc to R591mn, thanks to the increase in biofuel blending mandate to 14pc from 12pc since March. "We are confident that the biodiesel operation will help the company's margin this year," Dumoncel said. The firm's soybean crushing margins rose by 3.3pc in the quarter, settling at R442/t, driven by biodiesel production. 3tentos' grain sales grew by almost 27pc to R560mn. Revenues in the agriculture feedstocks segment — such as fertilizers, pesticides and seeds — reached R601mn in the first quarter, up by 35pc from a year prior. The company's first quarter income totaled R156.44mn, a 51pc increase from the same period last year. 3tentos also started to build its first corn crushing unit to produce ethanol and dried distillers' grain (DDG). The company completed the issuance of debt securities worth R560.73mn this week. By Alexandre Melo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Floods to sow chaos for Brazil’s South logistics


09/05/24
09/05/24

Floods to sow chaos for Brazil’s South logistics

Sao Paulo, 9 May (Argus) — Unprecedented floods in Brazil's southern Rio Grande do Sul state are expected to create even more chaotic logistics situation in the country and could cut fertilizer usage for 2024-25 soybean crop in the state. Heavy rainfall has hit the state since 29 April, culminating in the worst floods ever registered in Rio Grande do Sul. The floods have reached the central part of the state, closing the ports of Pelotas and Porto Alegre, which both handle agricultural commodities, including grains, oilseeds and fertilizers. The high waters are expected to move south, reaching Rio Grande port. The three Rio Grande do Sul ports handled about 44.8mn metric tonnes (t) in 2023, with the larger Rio Grande port accounting for at least 42.6mn t, according to port data. The state's geographic layout and a particularly narrow channel for floodwaters to reach the sea suggests the worst is yet to come in the southern part of the state. Water levels are about to increase in the Lagoa dos Patos, a lagoon that receives water from many rivers and flows to the Atlantic Ocean. But operations are running normally in the Rio Grande port as of 9 May. The national association of cereal exporters Anec project that 343,250 t of soybeans and 131,778 t of soymeal will be shipped in the week ended 11 May, according to port schedule data. Shipments between 28 April and 4 May — which account for the days where rainfall reached its peak and the state began to flood — totaled 183,559t and 133,424t for soybean and soymeal, respectively. Lineup data from maritime agency Williams predicts that soybean exports may total 838,600t, nearly doubling the volumes from the forecast a week ago. The estimated average waiting time for shipping rose to just three days from the two days projected on 29 April. The Rio Grande port was the fifth largest soybean exporter in 2023, with 3.8mn t shipped last year, according to the National Waterway Transportation Agency (Antaq). Waiting time for discharge fertilizers is at around one day, unchanged from the previous week. Rio Grande port was third in terms of fertilizer import volumes in the first quarter 2024, according to lineup data from maritime agency Unimar. Paranagua, in Parana state, received 2mn t of fertilizers, followed by Santos port and Rio Grande, with 1.9mn t and 990,640t, respectively. Lineup data for May and June suggest that Rio Grande is about to receive 540,900t and 66,375t of fertilizers, respectively. Vessels lined-up for Rio Grande may be diverted to other ports, specially for Sao Francisco do Sul, in Santa Catarina state, and Paranagua according to market participants. Even if fertilizer volumes would be discharged as initially planned, the flow to agriculture producing areas would be compromised. The main access to the port, the BR-116 roadway, is already partially blocked, hampering truck flows in the state. Drivers have already been searching for short-stretches to move goods, as long-stretches force them to look for longer alternatives, considering there are around 88 partial and full road blockages in the state as of 9 May. Logistics company Rumo also partially interrupted operations in Rio Grande do Sul state on 6 May. The company has a grain terminal in Rio Grande port and a rail network of around 7,220km in Brazil's South region, which includes Rio Grande do Sul, Santa Catarina and Parana states. Fertilizer companies that operate in Rio Grande do Sul are reportedly trying to move their product to warehouses away from the rivers. Considering the agricultural production, volumes that had already been sowed and were in silos are now soaked. With more damage expected to be measured farmers in Rio Grande do Sul may be discouraged from investing in technology and fertilizers for the upcoming 2024-25 soybean crop. More rain forecast for the weekend Brazil's national meteorological institute Inmet expects rainfall to intensify once again in Rio Grande do Sul starting this Friday between the state's center-north and west portions. Rain levels are expected to subside by 12 May, but may surpass 100mm before then. The coastal areas in the north regions and south of Santa Catarina state are also expected to be affected, according to Inmet. By Renata Cardarelli and Nathalia Giannetti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India's GSFC receives offers in tender to buy DAP


09/05/24
09/05/24

India's GSFC receives offers in tender to buy DAP

London, 9 May (Argus) — Indian importer GSFC likely received offers from two trading firms ranging in the high-$510s/t cfr to around $520/t cfr, under its 8 May tender to buy 100,000t of DAP. The tender sought offers for 50,000t of natural-coloured DAP and 50,000t of "coffee-brown" DAP for delivery to Kandla or Munda on India's west coast at the end of June or in early July. Fellow importer NFL has scrapped its 6 May tender to buy 50,000t of DAP for delivery by the end of May. It had received one offer from a trading firm. Another importer Smartchem on 8 May issued a counterbid of $479/t cfr against the six offers received in its 6 May tender. The initial offers had ranged from the low-$510s/t cfr to the low-$520s/t cfr. Smartchem gave the companies which had offered until close of business on 9 May to accept. The tender had sought 60,000t of DAP in two 30,000t cargoes for delivery by the second half of June. Importer Hindalco earlier this week awarded its 1 May tender to buy 40,000-45,000t of DAP to a regional trading firm at around $508/t cfr, initially reported as around $509/t cfr. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

LNG imports loom as Australia unveils gas strategy


09/05/24
09/05/24

LNG imports loom as Australia unveils gas strategy

Sydney, 9 May (Argus) — Australia's federal government will attempt to reverse the decline in new gas developments by expediting projects, although a report has found it is unlikely to reverse an anticipated shortfall in southern states' supplies later this decade. Canberra's long-awaited Future Gas Strategy will form its future policy on the resource, following two years of uncertainty for the industrial sector. This follows the Labor party-led government's election in May 2022 and its dumping of the previous Liberal-National coalition administration's gas-fed recovery from Covid-19 policy, which emphasised bringing new supplies on line to drive down rising prices. Six principles have been outlined by the government — driving down emissions reductions to reach net zero emissions by 2050, making gas affordable for users during the transition, bringing new supplies on line, supporting a shift to "higher-value and non-substitutable gas uses", ensuring gas and power markets remain fit for purpose during the energy transition and maintaining Australia's status as a reliable trading partner for energy, including LNG. The report found that gas-fired power generation will likely provide grid firming as renewables replace older coal-fired plants. Peak daily gas demand could rise by a factor of two to three by 2043, according to projections, with gas-powered peaking generation labelled a "core component of the National Electricity Market to 2050 and beyond". But by the 2040s more alternatives to gas for peaking and firming are expected to become available. Supplies are forecast to dip significantly in the latter years of the decade, especially in gas-dependent southeast Australia, driven by the 86pc depletion of the region's producing fields. This reduced supplies will outpace a fall in demand , while rising demand is forecast because of the retirement of Western Australia's coal-fired power plants . The report found the causes of Australia's low exploration investment are "multifaceted", blaming the Covid-19 pandemic, difficulties with approvals processes , legal challenges, market interventions and a perceived decline in social licence. It added that international companies may focus on lower cost and lower risk fields in other countries. New sources Stricter enforcement of petroleum retention leases and domestic gas reservation policies are also likely to increase supplies, the report found, with term swap arrangements beneficial in increasing their certainty. Upwards pressure in transport costs is likely to result from increased piping of Queensland coal-bed methane gas to southern markets such as Victoria state, which could influence industrial users to relocate closer to gas fields in the future. Options canvassed to meet demand include more pipelines and processing plants and LNG import terminals , which would provide the fastest option but must overcome regulatory and commercial pressures, given the pricing of LNG would be higher than current domestic prices. Longer term supplies depend on the commerciality from unsanctioned projects such as Narrabri and in the Beetaloo and Surat basins, the report said. More supplies are needed to support exports under foundational LNG contracts, with an impact on the domestic market if Surat basin developments such as Atlas does not continue, the report said. Forecasts show LNG exporters have sufficient production from existing and committed facilities to meet forecast exports until 2027 if expected investments proceed. But beyond this new investment is required, especially for the 8.5mn t/yr Shell-operated Queensland-Curtis LNG at Gladstone. The Australian Energy Producers lobby, which represents upstream oil and gas businesses, said the strategy should now provide clear direction on national energy policy. But the Greens party, the main federal parliamentary group aside from Labor and the Liberal-National coalition, said any plans to continue gas extraction beyond 2050 will negate state and federal net zero 2050 climate targets. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US amsul imports reach record high in March


08/05/24
08/05/24

US amsul imports reach record high in March

Houston, 8 May (Argus) — US ammonium sulfate (amsul) imports reached a record high in March, bringing importsfor the current fiscal year to date to record high levels as well. US imports of ammonium sulfate reached 171,200 metric tonnes (t) in March, according to the latest data from the US Census Bureau. Monthly imports in March topped the previous record high set in February by 2,300t . Volumes in March 2024 were double the March average of the past 10 years. Year to date imports during the 2024 fiscal year — which runs July-June to track the fertilizer crop year — through March reached 824,000t, up 75pc from the year prior. Offshore imports arriving at Nola in April are currently estimated at nearly 51,100t, according to bill of lading data. Amsul supply has been short this spring, caused by several production outages beginning in January](https://direct.argusmedia.com/newsandanalysis/article/2531726). Prices have remained elevated for amsul because of limited supply, while other nitrogen fertilizers have been on the decline in recent weeks. Recent imports were priced at $407.5/st fob, compared to year-ago levels of $327.5/st fob. By Meghan Yoyotte US ammonium sulfate imports ’000t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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