Green steel, SAF likely first H2 buyers in UAE: Masdar

Spanish Market: Hydrogen
31/05/24

UAE renewables and green hydrogen company Masdar expects output from its first hydrogen projects to be used in the production of sustainable aviation fuel (SAF) and green steel, as these face fewer logistical barriers than shipping and cracking ammonia back to hydrogen.

The company aims to take final investment decisions (FIDs) on hydrogen projects targeting these sectors within the next 6-18 months and could start production around three years later, its director of hydrogen business development and commercial, Andreas Bieringer, told Argus.

"We are working on green steel and would like to see some announcement to be made soon, also on sustainable aviation fuel, that's definitely what will go first in the UAE," he said.

Masdar has a 2024 pilot for a 2.1MW electrolyser to prove the concept of using hydrogen in direct reduction of iron alongside Emirates Steel Arkan. The firm also trialled methanol-to-jet last year, which offers a path to e-SAF in the future. And it is developing the region's first SAF using renewable hydrogen and municipal solid waste.

Projects where hydrogen or derivatives can be used directly — such as green steel, marine fuels and e-SAF — and the decarbonisation of industrial processes seem to be slightly ahead of the curve in general, Bieringer said.

"These are things where we can get firm offtake directly because it takes out the problem of how we ship the product to offtake markets where the logistic supply chains are not ready yet," Bieringer said. "That's one of the uncertainties we have now. Like port infrastructure, cracking for ammonia, pipelines in Europe — all this needs to be advanced much faster," he added.

Masdar's next step for its UAE projects is to sign firm offtake deals. "Structuring intelligent offtake agreements" that share the risk fairly on both sides is the "art everyone tries to figure out", he said. The company also needs to finalise the infrastructure to underpin the projects, but this should be more straightforward than long-distance shipping.

At the end of last year, Abu Dhabi launched its low-carbon hydrogen policy. It focuses on creating hydrogen "oases" and clean electricity parks to attract investment and increase operational efficiencies. Masdar said it is actively supporting the policy's implementation.

Outside of the UAE, Masdar is targeting projects in Scandinavia and the Iberian Peninsula. These are "very advanced front-end engineering designs" and are also focusing on logistically-easy offtake sectors, Bieringer said.

Masdar appears to have reshuffled the order of its project pipeline. One of the first hydrogen projects it announced was a 200MW renewable ammonia project with fertiliser company Fertiglobe in Ruwais. This had targeted FID in 2023 and start up in 2025, but the timelines appear to have changed. The company had also hoped to start operating a 2GW renewable ammonia project in Egypt in 2026, but this also looks like a stretch since no FID has been taken yet.

Many companies across the hydrogen industry have rolled back on the initial targets they set out — partly because of tough macroeconomic conditions but it also reflects a recognition that scaling up hydrogen might be tougher than first thought.

Even with its own plans changing, Masdar has not abandoned its target to produce 1mn t/yr of renewable hydrogen, but Bieringer recognised it could be a stretch to get there by 2030.

"We would definitely want to do it within a decade, 2030 is the guiding principle. If it maybe takes a little bit longer, I don't think it'd be too dramatic," he said. "The direction is still there, that's what you see in the market studies. The drive towards green hydrogen is unchanged".

By Aidan Lea

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15/05/25

UK establishes public energy company

London, 15 May (Argus) — The UK parliament has passed a bill establishing a publicly owned energy company, Great British Energy (GBE), to support the nation's renewable energy ambitions. The company, funded with £8.3bn ($11.02bn) over the current parliamentary term, aims to accelerate renewable energy projects, enhance energy security, and support job creation, the department for energy security and net zero (Desnz) announced on Thursday. GBE will invest in clean energy initiatives, including technologies such as floating offshore wind, and collaborate with private companies to expand renewable energy capacity. The government states the company will help stabilise energy costs by reducing reliance on fossil fuels. The bill includes £200mn for renewable energy projects, such as rooftop solar for schools, hospitals, and communities. It has also committed £300mn to develop the UK's offshore wind supply chain, supporting manufacturing of components such as cables and platforms. The legislation received approval from the devolved governments of Scotland, Wales, and Northern Ireland, enabling GBE to operate across the UK. Desnz secretary of state Ed Miliband is expected to outline GBE's strategic priorities "soon", specifying technology focus areas and investment criteria. The government sees GBE as a key part of its plan to transition to clean energy and stimulate economic growth through a "modern industrial strategy", it said. Industry body Energy UK welcomed the bill's passage. "[GBE] can play a vital role in making the government's clean energy ambitions a reality by attracting extra private sector investment," chief executive Dhara Vyas said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France consults on expanded biofuels mandate

15/05/25

France consults on expanded biofuels mandate

London, 15 May (Argus) — France has opened consultation on the transposition of part of the recast renewable energy directive (RED III) into national law, which would replace the current system with a new one called "incentive for the reduction of the carbon intensity of fuels" (IRICC). The proposal introduces two separate sets of requirements for transport fuels. The first is for greenhouse gas (GHG) emissions reductions, broken down by transport sectors — road, aviation, maritime, LPG and natural gas for vehicles, which could be CNG or LNG (see table). In the current draft, the GHG reduction target for the road sector will start at 5.9pc in 2026, rising to 10.6pc in 2030 and 18.7pc in 2035. For aviation, the target starts at 2.5pc in 2026, rising to 5.8pc in 2030 and 18.8pc in 2035. The GHG mandate levels include a gradual phasing-in of new fuel sectors – river and maritime fuels, fuel gasses, and aviation. To meet the overall RED III target of 14.5pc emissions reduction by 2030, the national French target includes the biofuels mandates, a share for rail transport, and a share or private vehicle charging. The second set of requirements is a renewable fuel requirement by energy content, which is broken down by fuel type — diesel, gasoline, LPG and natural gas fuels and marine fuel (see table). The blending requirements for diesel start at 9pc in 2026, rising to 11.4pc in 2030 and 16pc in 2035. For gasoline, the mandates start at 9.5pc in 2026, rising to 10.5pc in 2030 and 14.5pc in 2035. Finally, the proposal includes a set of sub-mandates for advanced fuels and renewable hydrogen . The advanced biofuels mandate would start at 0.7pc in 2026, rising to 1.95pc in 2030 and 2.6pc in 2035. Users of renewable fuels of non-biological origin (RFNBOs) would not be subject to the advanced sub-mandate. In feedstock restrictions, the crop cap will rise to 7pc from 6.2pc in 2030 and 2035, while the limit for fuels made from feedstocks found in Annex IX-B of RED will be at 0.6pc in 2026, 0.7pc in 2030 and 1pc in 2035 for diesel and petrol. Aviation fuel will not have a IX-B cap until 2030, and from then it will be 6pc. Mandate compliance would be managed by a certificate system through the CarbuRe registry, with a compliance deadline of 1 March the following year. Public electric vehicle charging would also generate tickets, although the amount of tickets generated by charging light passenger vehicles would be reduced from 2031 to reach 50pc in 2035. Renewable hydrogen used in transport would also generate tickets counting towards the hydrogen sub-quota and reduce the overall GHG savings requirement. Public charging stations will start generating fewer tickets for electric passenger vehicles from 2031 to 50pc by 2035. France is also considering steep penalties for non-compliance, at €700/t CO2 not avoided for the GHG reduction requirement and at €40/GJ for the fuel targets. The penalty for not meeting hydrogen and advanced fuel sub-targets would be doubled, at €80/GJ. The consultation is open for comments until 10 June. By Simone Burgin Proposed GHG reduction by transport sector % 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Road and non-road diesel 5.9 7.1 8.3 9.5 10.6 13.2 14.8 16.2 17.5 18.7 Aviation 2.5 3.3 4.1 4.9 5.8 8.4 10.8 13.3 15.9 18.7 RFNBO sub-target (% en.) 0.0 0.0 0.0 0.0 1.2 1.2 2.0 2.0 2.0 5.0 Maritime 2.5 3.25 4.0 5.0 6.0 7.0 8.0 10.0 12.0 14.5 RFNBO sub-target (% en.) 0.0 0.0 0.0 0.0 1.2 1.2 1.2 1.2 2.0 2.0 LPG and natural gas fuels 0.0 0.0 2.7 6.3 10.6 13.2 14.8 16.2 17.5 18.7 DGEC Proposed energy content mandate by fuel type % (en.) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Diesel 9.0 9.5 10.1 10.7 11.4 12.2 13.0 13.8 14.9 16.0 Petrol 9.5 9.7 10.0 10.2 10.5 11.1 11.8 12.6 13.4 14.5 Natural gas fuels 0.0 0.0 3.0 7.0 12.0 15.0 16.0 18.0 19.0 21.0 LPG 0.0 0.0 3.0 7.0 12.0 15.0 16.0 18.0 19.0 21.0 Marine fuel 2.9 3.8 4.7 5.9 7.1 8.2 9.4 11.8 14.1 17.1 DGEC Proposed caps and sub-targets % (en.) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Feedstock caps Crop feedstocks 6.2 6.4 6.6 6.8 7.0 7.0 7.0 7.0 7.0 7.0 Annex IX-B feedstocks* 0.6 0.6 0.65 0.7 0.7 0.75 0.8 0.85 0.9 1.0 Cat. 3 tallow 0.5 0.6 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 Tall oil 0.1 0.1 0.1 0.1 0.15 0.15 0.15 0.15 0.15 0.2 Fuel sub-targets Advanced feedstocks 0.7 0.95 1.25 1.6 1.95 2.0 2.1 2.25 2.4 2.6 RFNBOs/Renewable hydrogen 0.05 0.2 0.5 1.0 1.5 1.6 1.7 1.8 1.9 2.0 *For diesel and petrol Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France mulls 1.5pc renewable H2 target for transport

13/05/25

France mulls 1.5pc renewable H2 target for transport

Paris, 13 May (Argus) — France has opened a consultation on a proposed 1.5pc renewable hydrogen quota for the transport sector by 2030, and hefty penalties to back this up. The country's ecological transition ministry has proposed a mechanism for reducing emissions in the transport sector called IRICC. This would replace the existing Tiruert system and would, among other measures, introduce specific quotas for use of renewable and low-carbon hydrogen. The proposed regulations set specific quotas for greenhouse gas (GHG) emissions reductions that fuel suppliers would have to meet across different transport sectors in 2026-35. In line with requirements of the EU's renewable energy directive (REDIII), it also sets specific sub-quotas for renewable fuels of non-biological origin (RFNBOs), which are effectively renewable hydrogen or derivatives. These would start at 0.1pc in 2026 and rise steadily to 1.5pc by 2030 and to 2pc by 2035. This does not factor in double-counting, which the EU rules allow, meaning the quotas should reflect the actual share of RFNBO supply delivered to the transport sector. France's target exceeds the minimum 1pc requirement under EU rules, which effectively constitute a minimum share of only 0.5pc when factoring in the possibility for double-counting. Some EU members have set more ambitious targets. Finland is aiming for a 4pc quota by 2030 . But others, like Denmark, are planning a less ambitious implementation of EU rules, which has drawn the ire of domestic hydrogen industry participants . France's proposed quota is not set in stone as it is seeking feedback on whether a 0.8pc quota would be preferable. The consultation text does not specify if Paris would allow renewable hydrogen used to make transport fuels in refineries to be counted towards the targets with or without a so-called correction factor. The document foresees specific targets for use of synthetic fuels "produced with low-carbon electricity" in the aviation and maritime sectors. For aviation these would be 1.2pc for 2030, 2pc for 2032 and 5pc for 2035 — broadly in line with mandates from the EU's ReFuelEU Aviation legislation. Crucially, these mandates can be fulfilled with renewable supply and with aviation fuels made with nuclear power. Unlike for other EU targets, the ReFuelEU Aviation rules provide this option, leaving France in a promising position to become a major producer of synthetic aviation fuels thanks to its large nuclear fleet. The EU has not yet set binding targets for synthetic fuels in the maritime sector, but the French proposal foresees quotas of 1.2pc for 2030 and 2pc for 2034. The new mechanism will arguably allow for trading of GHG emissions reduction and fuel supply credits, similar to Tiruert, although the consultation document does not detail this specifically. Hefty penalties Hefty penalties for non-compliance could ensure that obliged parties meet their quotas. The ministry is proposing a penalty of €80 ($89) for each GJ that fuel suppliers fall short of their RFNBO quotas. This would equate to around €9.60/kg, based on hydrogen's lower heating value of 120 MJ/kg. It is broadly in line with penalties set by the Czech Republic , but considerably higher than those in Finland. Crucially, the penalties would be in addition to potential fines for falling short of the larger GHG emissions reduction targets. Companies could additionally incur penalties of €700/tonne of CO2 they fail to avoid short of their requirements. Stakeholders can respond to the consultation until 10 June. By Stefan Krumpelmann and Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indian state props up green H2 with 130,000 t/yr tender

13/05/25

Indian state props up green H2 with 130,000 t/yr tender

Mumbai, 13 May (Argus) — India's western state of Maharashtra is seeking companies to set up subsidised renewable hydrogen production facilities with a total capacity of up to 130,000 t/yr through a tender, as it pursues ambitious output plans. The bulk of the capacity, namely 50,000-100,000 t/yr, would be established through a single "anchor" project. The remaining 30,000 t/yr would come from much smaller projects and would be split between 2-15 different facilities of 2,000-15,000 t/yr. The projects would have to be completed within 36 months of receiving the tender award and would have to maintain production for 25 years. Projects would be able to avail a range of incentives outlined in Maharashtra's green hydrogen policy from 2023 . The large plant could receive up to 30pc capital cost subsidies, while the smaller facilities could get support for up to 15pc. But subsidies would depend on projects meeting certain criteria which will also be factored into the initial selection process. This includes criteria for the use of local components in the plant's construction which will have to reach at least 55pc. Projects would also score higher if they use renewable power that is generated in Maharashtra rather than in another state. Crucially, the large plant would have to sell at least 50pc of its output domestically, which would leave a maximum of 50,000 t/yr for exports. The smaller plants would have to sell all of their output domestically. Electrolyser performance is also taken into account, with a maximum specific energy consumption of 56 kWh/kg and no more than 1pc annual degradation. The bid submission deadline is 7 July, and a pre-bid meeting is scheduled for 14 May. Maharashtra has set a target to produce 500,000 t/yr of renewable hydrogen by the end of March 2030, with an allocated budget of 85.6bn rupees ($1bn)—nearly half of India's total allocation for its green hydrogen mission. Under its policy, a maximum of three anchor projects with a hydrogen production capacity of at least 50,000 t/yr will receive capital subsidies — suggesting that more similar tenders could follow at a later stage. Last month, state-owned Mahatma Phule Renewable Energy and Infrastructure Technology (Mahapreit) already invited proposals to set up a renewable ammonia plant with a capacity of 60,000-100,000 t/yr. Mahapreit is 51pc owned by Maharashtra's state government, while India's central government holds 49pc. By Akansha Victor Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Minister eyes German energy transition 'reality check'

09/05/25

Minister eyes German energy transition 'reality check'

London, 9 May (Argus) — Germany's energy transition needs a "reality check", the country's new energy minister Katherina Reiche has said, stating that the government will prioritise security of power supply over climate protection. The government must strike the right balance between climate protection, security of supply and costs, Reiche said at the Ludwig Erhard Summit earlier today, arguing that the focus in recent years has been disproportionately on the former. The new government will put security of supply "first", while also focusing on keeping system costs — such as redispatch and grid expansion costs, which previous governments "underestimated" — as low as possible. The government is aiming to "quickly" hold tenders for the construction of "at least" 20GW of new gas-fired capacity, Reiche said, citing the recent blackout in the Iberian peninsula as evidence that Germany cannot become complacent over its power supply. While she acknowledged that the reasons for the blackout are not yet fully determined, she said that a lack of inertia in the power system is likely to have contributed to it, and that more flexible gas-fired plants "could have helped" Spain avoid the blackout. She called for Germany to agree "long-term delivery contracts" for natural gas, to ensure security of supply in the coming years. And Reiche emphasised the importance of "technology openness", particularly when it comes to Germany reaching its goal of becoming climate-neutral by 2045. There may be new technologies that are yet to be invented or fully harnessed that could aid the country in fulfilling its goal, she noted. Hydrogen has the potential to play a role in a "mix" of other technologies in the energy transition, she said, but the expectations for it have become too high for a product that is "not even on the market". Reiche also called for more patience with regard to electrification in Germany, stating that "the transformation of an entire economy [to become climate friendly] in a linear, year-on-year path is not feasible". And the minister reiterated previous CDU/CSU-SPD coalition pledges to reduce the electricity tax and to introduce an industry power price. CDU party member Reiche became the new energy minister on Tuesday, when CDU leader Friedrich Merz was voted in as chancellor, replacing the SPD's Olaf Scholz. By John Horstmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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