Latest Market News

Omani renewable H2 project to start four years late

  • Spanish Market: Fertilizers, Hydrogen
  • 01/08/24

The targeted start date for the planned Hyport Duqm renewable hydrogen and ammonia project in Oman has been pushed back by at least four years and an offtake agreement with German utility Uniper is no longer in place.

The project, in which BP has agreed to acquire a 49pc stake, is now scheduled to start commercial operations in 2030-31, Belgian developer Deme said on 31 July. It was initially due to start operations in 2026, based on statements from Uniper in 2021 when the utility announced it had signed a cooperation agreement with the project developers. Under the preliminary deal, Uniper would have taken the full 330,000 t/yr of renewable ammonia output planned for the facility's first phase.

But this agreement could not be upheld after Uniper was nationalised in 2022, Deme told Argus today. The German government nationalised Uniper to stabilise the firm after it made major losses replacing missing Russian gas deliveries.

Deme did not comment on the reasons for the delay to the plant's start-up, but timelines have slipped for many other renewable hydrogen and ammonia projects because of difficulties securing firm offtakers and financing, persistent regulatory uncertainties and increased cost estimates.

Deme and Omani company OQ will each hold a 25.5pc stake in the Hyport Duqm project following BP's entry, which is expected to be finalised this quarter, the Belgian firm said. BP will become the project's operator.

The project is at the pre-front-end engineering design (pre-FEED) stage and is slated to entail around 500MW of electrolysis capacity, powered by 1.3GW of wind and solar capacity in its first phase, Deme said. The combined wind and solar power could be lifted to 2.7GW in a second phase, the firm said, without disclosing the electrolysis capacity for the expansion.

Output from the plant in the Duqm special economic zone is to be exported to Europe and northeast Asia from a nearby port, Deme said.

Deme is also considering projects in other countries including Egypt where it plans to set up a 320,000 t/yr renewable ammonia plant. Tunisia's government said earlier this week that it struck a preliminary deal with Deme on the development of a renewable hydrogen project, but the company said today that it is too early to disclose further details.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

04/10/24

UK confirms $28.5bn funding for two CCS, H2 clusters

UK confirms $28.5bn funding for two CCS, H2 clusters

Hamburg, 4 October (Argus) — The UK government has finalised a commitment to provide £21.7bn ($28.5bn) over the next 25 years to two planned clusters for carbon capture and storage (CCS) and connected projects, including for hydrogen production. The government has reached "commercial agreement with industry" for development of the clusters, it said today. The funding will go to the HyNet cluster in northwest England and the East Coast cluster in England's northeastern Humber and Teesside regions. The two projects were selected as "Track 1" priority clusters in 2021 and could together store some 650mn t of CO2. They could attract £8bn of private investment, the government said today. "The allocation of funding marks the launch of the UK's CCS industry," according to Italy's integrated Eni, which leads the development of HyNet's CO2 transport and storage system. Eni in February gave a start date of 2027 for HyNet. The East Coast cluster is led by the Northern Endurance Partnership, a joint venture between BP, TotalEnergies and Norwegian state-controlled Equinor. A range of projects will connect to the two hubs to transport and permanently sequester the carbon. These will include hydrogen production projects and supporting infrastructure. HyNet will involve projects developed by EET Hydrogen , a subsidiary of Indian conglomerate Essar, which is planning to bring a 350MW plant for hydrogen production from natural gas with CCS online by 2027 and another 700MW facility by 2028. The hydrogen will be partly used at EET Hydrogen's sister company EET Fuels at its 195,000 b/d Stanlow refinery but some will also be delivered to industrial consumers in the area. The HyNet cluster includes plans for 125km of new pipelines to transport hydrogen. The East Coast cluster involves Equinor's [600MW H2H Saltend] project and BP's 160,000 t/yr H2Teesside venture . German utility Uniper's 720MW Humber H2ub (Blue) project, UK-based Kellas Midstream's 1GW H2NorthEast plant and a retrofit facility from BOC , which is part of industrial gas firm Linde, could also connect to the cluster for CO2 storage. All the projects are due to enter into operation before the end of this decade. The funding confirmation for the CCS hubs "is a vital step forward, catapulting hydrogen towards long-term certainty we need in the UK", industry body the Hydrogen Energy Association's chief executive Celia Greaves said. The previous government last year picked two "Track 2" carbon capture clusters that are scheduled to start operations by 2030 — the Acorn facility in Scotland and the Viking project in northeast England. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Indonesia’s Ni expansion via HPAL could face challenges


03/10/24
03/10/24

Indonesia’s Ni expansion via HPAL could face challenges

Singapore, 3 October (Argus) — Indonesia is expected to continue expanding its nickel production in the coming years, especially through increasing its high-pressure acid-leaching (HPAL) capacity, but the lack of readily available sulphuric acid and proper management of the tailings waste could pose challenges to this plan. Production is expected to rise despite an anticipated surplus in the supply of nickel in the market. Sulphuric acid is used in the HPAL process to separate nickel and cobalt from nickel ore to produce mixed hydroxide precipitate (MHP), which is the feedstock for the downstream processing of nickel sulphate, cathode and battery. Indonesia is expected to produce 325,000-345,000t of MHP this year, up from around 269,000t of in 2023, according to market sources. But with several MHP projects planned to come online in the next few years, MHP output for the next three years is projected to treble to 800,000-900,000t, according to the country's deputy minister for the co-ordinating ministry for maritime and investment affairs Septian Hario Seto on 2 October at a metal event in London. As this would require a lot more nickel ore and sulphuric acid, there are concerns that the availability of limonite ore could deplete as fast as the saprolite ore supply, which is mainly used for nickel pig iron and matte production. There were also discussions that the Indonesian government will convene with nickel market participants to discuss about the supply situation of limonite ore. There are currently four HPAL facilities operating in Indonesia. This includes Huayou's Huayue and Huafei projects , GEM's QMB project and Lygend's HPAL project. Others were also concerned that the availability of sulphuric acid could be a limiting factor to Indonesia's rapid expansion of HPAL production, as sulphuric acid demand from Indonesian HPAL projects is expected to reach 7.12mn t in 2025, almost 40pc increase from this year's demand at 5.17mn t, according to Argus estimates. Indonesia has been importing sulphuric acid from mainly China and South Korea to meet the growing demand for its production units at Obi Island and Sulawesi. But a ramp-up in sulphur-burning operations has pushed several MHP producers like Halmahera Persada Lygend to switch to buying lower-cost sulphur instead. For most sulphur burners, 1t of sulphur produces around 3t of sulphuric acid. The startup of Freeport McMoran's Manyar smelter in Java integrated industrial and port estate in East Java's Gresik, coupled with mining firm Amman Mineral Nusa Tenggara's (AMNT) copper smelter in the West Sumbawa regency of Nusa Tenggara province, is also expected to alleviate some supply concerns, with the two expected to add at least 3mn t/yr of acid capacity by the end of 2025. Proper disposal of tailings waste could pose another challenge to Indonesia's planned HPAL expansion, particularly with increasing scrutiny on the environmental, social and governance (ESG) standards by Indonesia's mining industry. The HPAL process generates a large volume of tailings, with energy consultancy Wood Mackenzie estimating an output of 1.4-1.6t of waste from every 1t of nickel produced through HPAL. There are three common ways to dispose tailings waste – tailings dam, deep sea tailings and dry stacking. Dry stacking is more widely used because it is considered as the more sustainable option. But dry stacking also comes with its own environmental and biodiversity risks, as Indonesia's seasonal wet weather and seismic activity of the site could be a problem for waste storage. To ensure a smooth expansion in HPAL production, it is crucial for Indonesia to find ways to secure the necessary sulphuric acid supplies and to adopt appropriate methods for tailings waste disposal. By Sheih Li Wong and Deon Ngee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Offers total 2.57mn t of urea in RCF tender: Update 2


03/10/24
03/10/24

Offers total 2.57mn t of urea in RCF tender: Update 2

Adds table of offers Amsterdam, 3 October (Argus) — Indian fertiliser importer RCF closed its tender to buy urea today, with 21 suppliers offering a total of 2.57mn t across both coasts. There were 20 offers for the east coast for a total of 1.37mn t and 17 for the west coast for 1.2mn t. Trading firms Agricommodities/ETG and Midgulf offered the largest quantities, submitting 150,000t each for both coasts ( see table below ). The quantities offered include the usual double- and triple-counting of volumes available to trading firms. There were 22 valid offers totalling 3.87mn t under the previous Indian tender on 29 August, which eventually saw just 1.13mn t bought. Most expectations before the tender's close had been for prices around the $370s/t cfr west coast and above, having risen higher over the week as tensions in the Middle East roiled the urea market. Prices offered will emerge in the coming days. RCF requested offer validity until 14 October and cargoes to ship from load ports by 20 November. By Harry Minihan RCF 3 October urea tender quantities t Supplier East coast West coast Total Agricommodities/ETG 150,000 150,000 300,000 Midgulf 150,000 150,000 300,000 Dreymoor 50,000 50,000 100,000 Sun International 50,000 0 50,000 Samsung 76,500 76,500 153,000 Sabic 100,000 100,000 200,000 Fertistream 47,500 0 47,500 Medallion 50,000 50,000 100,000 Ameropa 52,400 52,400 104,800 Agrifields 40,000 0 40,000 Fertiglobe 45,000 45,000 90,000 Indagro 45,000 45,000 90,000 Alkagesta 45,000 45,000 90,000 Koch 47,500 47,500 95,000 Macrosource 45,000 45,000 90,000 Aditya Birla 100,000 100,000 200,000 Continental 100,000 100,000 200,000 Liven 30,000 50,000 80,000 OQ 100,000 0 100,000 Hexagon 50,000 50,000 100,000 Keytrade 0 40,000 40,000 Total 1,373,900 1,196,400 2,570,300 Market sources - subject to confirmation Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Origin to exit Hunter Valley Hydrogen Hub


03/10/24
03/10/24

Australia’s Origin to exit Hunter Valley Hydrogen Hub

Sydney, 3 October (Argus) — Australian utility and upstream firm Origin Energy has decided not to proceed with its planned hydrogen development project, the Hunter Valley Hydrogen Hub (HVHH), in Australia's New South Wales. The decision to withdraw from the proposed 55MW HVHH and halt all hydrogen opportunities was made because of continuing uncertainty about the pace and timing of hydrogen market development, Origin said. The firm said the capital-intensive project, intended to progressively replace gas as a feedstock in a nearby ammonia manufacturing plant, carried substantial risks. Origin Energy had an initial agreement with Australian chemicals and explosives company Orica to take 80pc of the green hydrogen produced from the hub for Orica's 360,000 t/yr ammonia facility on Kooragang Island, near the city of Newcastle. Origin Energy and Orica in 2022 said they will study plans to develop the HHVH in Hunter Valley region of NSW, which is Australia's largest thermal coal-producing area. "It has become clear that the hydrogen market is developing more slowly than anticipated, and there remain risks and both input cost and technology advancements to overcome. The combination of these factors mean we are unable to see a current pathway to take a final investment decision on the project," said chief executive Frank Calabria on 3 October. Origin had planned to make a final investment decision on the project by late 2024. The hub, which was estimated to cost A$207.6mn ($143mn), had been allocated A$115mn in state and federal funding and was shortlisted for production credits under Canberra's Hydrogen Headstart programme. In July, Origin described the pace of development in the hydrogen industry as "slower than it had anticipated 12 months ago", said. The company expressed hopes that improved electrolysis efficiency would reduce the rising costs of production. The decision is a significant setback for Australia's green hydrogen ambitions, following the July decision by Australian miner and energy company Fortescue to postpone its target of 15mn t/yr green hydrogen output by 2030. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Tampa molten sulphur price rises for 4Q


02/10/24
02/10/24

Tampa molten sulphur price rises for 4Q

Houston, 2 October (Argus) — Fertilizer producers Mosaic and Nutrien have settled the fourth quarter molten sulphur price with their suppliers at $116/long tonne (lt) delivered. The new settlement marks an increase of $40/lt from the third quarter price of $76/lt del, and follows the trend of firming sulphur markets during the third quarter amid resilient global fertilizer demand. Despite an active hurricane season in the US Gulf coast, disruptions to output have remained short-lived. But damage from Hurricane Helene last month has caused significant disruption to fertilizer production in the southeast US, with operations at two Florida-based phosphate fertilizer production facilities hampered. Mosaic's Riverview, Florida, facility is expected to return to normal capacity during the first half of October following water mitigation and site cleanup. Damage at Nutrien's White Springs, Florida, plant is still being assessed, with no clear timeline of when it will resume normal operations. Global solid sulphur contracts are beginning to settle for supply delivered during the fourth quarter at corresponding rises, with Middle East contracts rising by $39-43/t from the previous quarter to reach $110-122/t fob for Middle East for tonnes delivered to end users and traders. Additionally, delivered quantities for the north African market have been discussed in a range of mid-$130s to high $140s/t cfr depending on destination and cargo size for granular product from the FSU and the Middle East, though final confirmations remain outstanding. Crushed lump sulphur is expected to be priced below granular sulphur at the low end of the range. Some contract supply routes have not as yet been confirmed as having been finalized. By Chris Mullins and Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more