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.

By Stefan Krumpelmann

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24/04/25

Water levels delay Tennessee River lock reopening

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Algerian urea to head to India for IPL tender

24/04/25

Algerian urea to head to India for IPL tender

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Rifertil pede recuperação judicial

23/04/25

Rifertil pede recuperação judicial

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Canada election’s CO2 pricing issue one to watch for H2

23/04/25

Canada election’s CO2 pricing issue one to watch for H2

Canada's two main parties have clashed on the carbon pricing system ahead of the general election, but there is also common ground, writes Jasmina Kelemen Houston, 23 April (Argus) — Industrial carbon pricing has become one of the key issues in the run-up to Canada's forthcoming general election on 28 April, and the future course on this is expected to affect the country's nascent clean hydrogen sector. Prime minister Mark Carney's first major act after assuming office in early March was to scrap the consumer carbon tax . The tax had become the focus of popular anger against former prime minister Justin Trudeau after Conservative leader Pierre Poilievre blamed Liberal climate policies for rising household costs. But Carney, who served five years as the UN Special Envoy for Climate Action, left the federal carbon pricing system on industrial emissions intact and has vowed to keep it. In contrast, Poilievre has said he will eliminate it, arguing the system raises costs for consumers while merely shifting emissions abroad. Scrapping the federal carbon pricing system would not mean that emissions immediately become free of charge across Canada. The federal law serves as a "backstop" for provinces that do not have their own carbon pricing mechanisms in place, and sets minimum standards for others. Most provinces have their own systems in place for now, but they could alter or altogether eliminate these if the federal law on carbon pricing is removed. Climate activists say retaining the carbon pricing would be crucial for meaningful emissions cuts. "Without the signal industrial pricing systems send, other types of incentives... will not be enough to meaningfully drive down carbon pollution from big industry or deliver on Canada's climate goals," Canadian Climate Institute president Rick Smith said in March. Under the federal system, the minimum carbon tax is currently set at C$95/t ($68.60/t) of CO2 and is set to increase by C$15/t each year, plateauing at C$170/t in 2030. If such pricing is retained, it could help drive a shift towards cleaner hydrogen production , including from natural gas with carbon capture and storage (CCS), compared with existing production pathways with unabated emissions. For now, it seems likely that the federal carbon pricing system will survive the election. The Liberals were ahead in a rolling three-day Nanos poll released on 21 April, with 43.7pc favouring Carney compared with the Conservatives' 36.3pc. Corridor train Carney and Poilievre appear more aligned on other energy issues and policies that could have implications for the hydrogen sector. Both have embraced Canada's potential for fossil fuel output. Carney wants to turn the country into a "superpower in both clean and conventional energy", and has vowed to build out pipelines, trade corridors and other infrastructure — including electricity grids — to diversify energy exports away from the US. Some of this could support hydrogen ventures, such as in British Columbia where a slew of proposed renewable and CCS-based projects have failed to advance , partly because of high power prices and limited gas infrastructure. Despite the support for conventional energy, Carney and Poilievre have also stressed their commitment to retain investment tax credits for clean technologies and manufacturing. Renewable and CCS-based hydrogen projects can benefit from these , with tax credits depending on the carbon intensity of production. Both have vowed to streamline and accelerate permitting processes for large infrastructure projects, which could benefit hydrogen ventures if realised. Canada's clean hydrogen ambitions will also be dependent on the sector gaining traction elsewhere. Eastern Canada's goal to leverage its renewable resources and help meet what was expected to be burgeoning demand in Europe has stalled as the transatlantic market has failed to materialise as anticipated. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil's Rifertil files for bankruptcy protection

23/04/25

Brazil's Rifertil files for bankruptcy protection

Sao Paulo, 23 April (Argus) — Brazilian fertilizer producer Rifertil filed for bankruptcy protection from creditors, citing a debt load inflated by currency impacts, falling prices and tough sector conditions caused by drought last year. Rifertil's debts total R647.9mn ($112.7mn), according to a document seen by Argus , which was filed with the civil court of Rio Verde, in central-western Goias state. The request, also confirmed by the office of the company's attorney, was filed on 22 April and is now awaiting analysis by the Goias court. The bankruptcy protection filing highlights that the fertilizer sector has been facing difficulties since 2022, when nutrient prices were high because of the Covid-19 pandemic and, later, because of the beginning of the conflict between Ukraine and Russia. At that time, predictions such as a shortage in the global fertilizer market contributed to an increase in fertilizer prices. But the forecasts did not materialize and prices fell in the following months, causing losses that have hit the company's cash flow since then. The document also highlights problems faced by producers in Goias, the company's main market and headquarters. Between the last quarter of 2023 and the beginning of 2024, many cities in Goias declared states of emergency because of drier than usual weather conditions. This contributed to a lack of liquidity for producers, hurting Brazil's agribusiness, especially from an increase in defaults from customers. Rifertil's attorney also said that the US dollar's strengthening to the Brazilian real throughout the second half of 2024 inflated the company's debt, since many products and services in the fertilizer sector are traded in US dollars. The company was founded in 2000 and its headquarters is in Rio Verde city, in Goias. It also has factories in Catalao city, Goias, and Maruim city, in northern Sergipe state. The three units' combined capacity is of 750,000 metric tonnes/yr. By João Petrini Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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