Jogmec makes first e-methanol investment: Correction

Spanish Market: E-fuels, Hydrogen, Petrochemicals
09/08/24

Corrects Jogmec's acquisition of a stake in HIF Global.in paragraph 2

Japan's state-owned energy agency Jogmec is investing for the first time in the e-methanol sector since the launch of a financing scheme in 2022 to aid domestic supplies of low-carbon fuels.

Jogmec announced on 8 August that it has accepted Japanese refiner Idemitsu's application to Jogmec's overseas financing scheme for hydrogen and low-carbon fuels-related projects. Jogmec will provide $36mn to the US' HIF Global through Idemitsu's US subsidiary Idemitsu Efuels America (IEAC) and obtain an undisclosed stake in the IEAC.

Idemitsu, through IEAC, will also invest $114mn to secure an undisclosed stake in US' HIF Global.

The deal follows Idemitsu's initial agreement with HIF in March 2023 to work on production and promotion of e-fuels, along with a decision to buy e-methanol from HIF and jointly study the possible development of the fuel.

Idemitsu and Jogmec plan to import e-methanol and other synthetic fuels from HIF's projects and use them as shipping fuels, as well as feedstocks to generate synthetic fuels and petrochemical products.

HIF is targeting to produce around 4mn t/yr of e-methanol equivalent by 2030 at its production sites in Tasmania in Australia, Matagorda in the US, Magallanes in Chile and Paysandu in Uruguay.

By Nanami Oki

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13/11/25

Plug Power warns pausing DOE activities risks loan

Houston, 13 November (Argus) — US hydrogen and electrolyzer manufacturer Plug Power warned investors that suspending activities related to its Department of Energy (DOE) loan guarantee carries a risk of losing access permanently to the low-cost federal financing. "Our decision to temporarily suspend activities related to the DOE loan could adversely affect our access to low-cast capital, delay project execution, and expose us to potential termination or modification of the DOE loan guarantee," the company said in a 10-Q form filed earlier this month with the Securities and Exchange Commission. Plug Power announced this week that it was suspending activities related to the $1.7bn loan guarantee while it considers reallocating capital away from previously announced plans. The loan facility, granted in the final days of the outgoing administration of President Joe Biden, was supposed to have financed the development of up to six green hydrogen plants in the US. However, all of those activities were put on hold after the administration of President Donald Trump paused clean energy commitments made under Biden pending further review. After months of engaging with Trump's DOE , Plug Power suspended activities related to the loan in November, including "projects previously contemplated in New York and Texas," according to the filing. Suspending activities on the projects may result in the DOE terminating the loan guarantee commitment if the agency determines Plug Power is not meeting required conditions or projected milestones, the company said. Plug Power has spent $250mn so far on the $800mn Texas project and expected to cover $400mn with the DOE loan. The company had been seeking an equity partner to make up the remainder of the cost. Since suspending the activities, Plug Power has announced a spate of deals to raise liquidity and pivot away from federal support, including joint development projects with renewable fuel producers, international electrolyzer deals, and signing away electricity rights to raise cash. Plug Power did not respond to a request from Argus for comment. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ammonia viable bunker fuel under IMO plan: Fortescue

13/11/25

Ammonia viable bunker fuel under IMO plan: Fortescue

Sydney, 13 November (Argus) — Ammonia could emerge as a cost-effective alternative to conventional bunker fuels under the International Maritime Organization's proposed carbon levy and reward system, according to Australian mining firm Fortescue. The IMO first drafted its net-zero Framework in April 2025 aiming to achieve net zero by 2050 — by penalising vessels that emit above a set emission threshold and rewarding those below the threshold for adopting low-carbon fuels. Details on the rewards and penalties have yet to be finalised after a meeting to adopt the draft amendments was stalled last month due to pressure from some member states, including the US. A new meeting has been scheduled for October next year. The industry is hopeful the IMO's net-zero framework will be adopted, as it could help offset high costs for low-carbon fuels such as green ammonia, Fortescue project manager Matthew Garland said at the Low Carbon Fuels and CCUS Summit on 5 November in Perth. Fortescue currently uses very-low sulphur fuel oil (VLSFO) in its bulk carriers transporting iron ore to China. But the use of VLSFO for marine bunkering could become more expensive if the IMO introduces penalties for its usage. These penalties are projected to raise around $11-12bn annually by 2030, which the IMO plans to redistribute as incentives for lower-emission fuels. Green ammonia, a lower-emission alternative to VLSFO, remains costly due to its lower energy density, which means ships require about 2.2 times more ammonia than VLSFO, plus a small amount of pilot fuel, Garland said. Under the IMO's proposed carbon rewards, green ammonia could receive up to A$1,000/t ($656/t) in incentives, potentially bringing it close to cost parity with VLSFO under Fortescue's cost modelling. An ammonia vessel could achieve a maximum emissions reduction of 70pc if it uses the lowest-emission green ammonia continuously, Fortescue said. The company is already testing ammonia as a marine fuel with its Green Pioneer dual-fuel vessel , which completed a voyage from the Netherlands to southern France using ammonia bunkered at Rotterdam earlier this year. Australian miner BHP and China's largest shipping company Cosco have signed a deal to charter two ammonia-dual-fuelled bulk carriers , BHP announced in July. The vessels are expected to be delivered in 2028. But these are not necessarily using the lowest-emission ammonia. Australia's current green ammonia production is negligible, as the vast majority is produced from fossil fuels. But the Australian federal Labor government awarded A$814mn in production credits under its Hydrogen Headstart programme to Murchison Green Hydrogen for its planned 900,000 t/yr green ammonia plant in Western Australia (WA) earlier this year. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Braskem 3Q sales down, eyes feedstock switch

11/11/25

Braskem 3Q sales down, eyes feedstock switch

Sao Paulo, 11 November (Argus) — Brazilian petrochemical company Braskem faced a turbulent third quarter in 2025, marked by operational challenges, strategic uncertainty and efforts to reposition its feedstock strategy. Menwhile, the company is navigating a potential restructuring and sale while managing the fallout from the closure of its chlor-alkali operations in Alagoas and ongoing low utilization rates across its production assets. Braskem completed technical studies on using liquefied petroleum gas (LPG) derivatives — specifically propane and ethane — sourced from Argentina's Vaca Muerta shale formation as a feedstock, the company said during its third quarter earnings call. Preliminary data suggest a potential cost reduction of $110/t compared to petrochemical naphtha, which is currently used in several of Braskem's facilities. The company already uses propane from Vaca Muerta at its Copesul plant in Triunfo, Rio Grande do Sul, where trials are underway to assess long-term viability. Feedstock selection will depend on pricing and logistics, with other Argentinian raw materials also under evaluation, chief executive Roberto Ramos said. The shutdown of Braskem's chlor-alkali plant in Alagoas between September and October led to layoffs and added pressure to its vinyls operations. To stabilize this segment, Braskem announced a strategic agreement with US-based Olin for the supply of ethylene dichloride (EDC). The deal supports Braskem's chlor-alkali and vinyl asset restructuring in Brazil. While supply volumes were not disclosed, the company expects the partnership to enhance competitiveness and sustainability in its PVC operations. Olin was selected for its cost-efficient EDC production, based on US shale gas ethane, and favorable logistics. Ramos cited these factors as decisive in formalizing the agreement. Average utilization rates across Braskem's petrochemical complexes fell to 65pc in the quarter, down 9 percentage points from the subsequent quarter and 8 points from a year prior. The decline was driven by scheduled maintenance at the Rio de Janeiro complex and a strategic reduction in naphtha-based production amid weak demand. Operational idle time costs the company approximately $60mn per quarter, Institutional relations director Rosana Avolio estimated. Braskem Idesa PE sales fall In Mexico, PE sales through the Braskem Idesa joint venture fell by 30pc year on year to 146,000t, mostly because of lower product availability, while spreads in the international market remained stable. Braskem Idesa's plant utilization rate fell to 47pc, down by 27 percentage points from a year earlier, because of a scheduled maintenance shutdown and reduced ethane supply from Mexico's state-owned Pemex, which fell to 11,300 b/d from 28,900 b/d in the previous year. The company's new ethane terminal, Terminal Quimica Puerto Mexico (TQPM), began supplying ethane to Braskem Idesa. TQPM, still in the commissioning phase, received approximately 11,300 b/d. The ethane supply from TQPM the Braskem Idesa plant is now operating above nominal capacity, which should support Ebitda growth in the coming quarters, Ramos said. Resin sales, prices down Braskem's Brazil resin sales fell by 9pc to 787,000t in the third quarter from a year before, with volumes also down in the US, Europe, and Mexico. International resin price references during the period were lower, impacting the profitability of its domestic sales, Braskem said in its preliminary third-quarter production and sales report. The company posted a R26mn ($4.9mn) loss for the quarter, narrowing from a R592mn loss in the third quarter of 2025 and from a R267mn loss in the second quarter this year. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

CBAM price method, verification drafts leaked

11/11/25

CBAM price method, verification drafts leaked

London, 11 November (Argus) — The certificate price for EU's carbon border adjustment mechanism (CBAM) will be calculated using prices from all auctions under the EU emissions trading system (ETS), a draft implementing act prepared by the commission and seen by Argus suggests. Another leaked draft on verifiers suggests that the European Commission may allow verifiers to conduct virtual site visits, provided certain conditions are met. The CBAM certificate price will be a volume-weighted average of all auctions under the EU ETS, including allowances auctioned by all auctioneers, by member states through an opt-out platform, as well as by the bloc's funds and third countries through the common auction platform, according to a draft implementing regulation. The calculation of the CBAM certificate price will be based on auction clearing prices. The calendar weekly or quarterly price averages will be used in such calculations "for the sake of simplicity", determined in euros and rounded to two decimals, the draft said. The commission will determine the CBAM certificate price "as soon as possible", once all the necessary information is made available to it. One single price "should only be published by the Commission," according to the draft. It will be publicly available on the commission's website "in a directly accessible manner and free of charge". The price will also be available to authorised CBAM declarants' accounts in the CBAM registry. The regulation provides a method for calculating CBAM certificate prices on a quarterly basis for 2026 and a weekly basis from 2027 onwards. The commission will announce the quarterly price within the first calendar week following the related calendar quarter. Quarterly prices will be made available to authorised declarants in the CBAM registry from the third quarter of 2026. From 2027, the commission will publish CBAM certificate prices on the first working day following the week relevant for the calculation. Separately, another draft act on the verification of embedded emissions data suggests accredited verifiers will have the option to replace a physical site visit by a virtual one every other year, without being subject to approval by competent authorities. A physical site visit will still be required for the first year, subject to verification, and physical site visits should occur at least every two years, according to the draft. A verifier can also conduct a virtual visit, should a physical one be impossible due to "serious, extraordinary and unforeseeable circumstances". A single electronic template will be developed by the commission and be made available to all verifiers for use. Verifiers may waive the obligation to conduct a physical site visit of a power-generating installation, provided that a set of conditions are fulfilled, according to the draft. By Erisa Senerdem Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cop: IMO pushes forward with carbon pricing

10/11/25

Cop: IMO pushes forward with carbon pricing

Belem, 10 November (Argus) — External politics rather than any failure of the International Maritime Organization (IMO) led to the delay in adopting a greenhouse gas (GHG) emissions pricing mechanism for global shipping, proposal supporters said on Monday. IMO members last month voted to delay the adoption of the Net-Zero Framework (NZF) by a year, despite some of those backing the delay previously supporting the carbon pricing system. The October gathering was "not a typical IMO" meeting, IMO secretary general Arsenio Dominguez said during a side event at the UN Cop 30 climate talks in Belem, Brazil. "We were affected by the global geopolitics that we all face right now. We're not immune to it," he said. Dominguez also sought to assure critics of the vote that the IMO is not backing down from the proposal, citing ongoing work to address some questions that member states raised during last month's meeting. "My message to you is very clear, don't judge IMO for what happened last October. Don't think that IMO stops there because we don't," he said. Dutch climate envoy Jaime de Bourbon Parme struck a similar tone, telling the audience that while the delay may give supporters a "sense of failure" very few countries last month argued the NZF should not be adopted. "I know the Netherlands and many other countries were ready to sign, however, the meeting went a very different direction," he said. While Dominguez and the Dutch prince did not single out any country for causing the delay, many NZF supporters have put the blame on the US. In the days leading up to the vote, the administration of US president Donald Trump threatened to retaliate against countries that back the proposal with measures such as visa restrictions, new port fees or sanctions on officials that sponsor "activist-driven" climate policies. The Trump administration "went outside the rules of engagement," said Andrew Forrest, non-executive chairman of Australian mining company Fortescue, calling US actions before the vote a form of "thuggery." By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Jogmec makes first e-methanol investment: Correction

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