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Japan’s power sector cuts CO2 emissions in 2023-24

  • Spanish Market: Electricity, Emissions
  • 09/10/24

Japanese power suppliers reduced CO2 emissions in the April 2023-March 2024 fiscal year, because of increased use of nuclear and renewable power sources as well as higher thermal generation efficiency.

CO2 emissions by the country's power firms totalled 311mn t in 2023-24, equivalent to 0.421 kg/kWh, based on 738.2TWh of electricity sales which accounted for 91.4pc of the country's total power sales, according to preliminary data released by the electric power council for a low carbon society (ELCS) — a group of 61 Japanese power firms. The 2023-24 emissions were lower by nearly 5pc from 327mn t, or 0.437 kg/kWh, in 2022-23.

The ELCS is aiming to cut CO2 emissions to 0.25 kg/kWh by 2030-31, in line with the government's goal for all the country's power sources in the same fiscal year.

Japan's renewable power output — including hydropower generation — totalled 148TWh in 2023-24, up by 3.1pc from a year earlier, according to the country's trade and industry ministry Meti. Nuclear generation also rose by 50pc to 80TWh during the period. Renewable and nuclear accounted for 18pc and 10pc respectively of the country's total power generation. Thermal output fell by 6.5pc from a year earlier to 594TWh in 2023-24, but still accounted for 72pc in the power mix.

Japan's greenhouse gas (GHG) emissions in 2022-23 fell by 2.5pc from a year earlier to 1.135bn t of CO2, because of higher renewable power output and lower energy consumption, according to the environment ministry. This marked the lowest level in 33 years or since 1990-91, when Japan started recording its emissions data.

Japan's nationally determined contribution (NDC) targets for a 46pc reduction in its GHG emissions by 2030-31 against the 2013-14 levels. Tokyo is set to update and submit its new NDC with an emission reduction goal for 2035 in 2025.


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10/12/24

Norway to end new international fossil fuel financing

Norway to end new international fossil fuel financing

London, 10 December (Argus) — Norway will from January no longer provide public finance for new unabated international fossil fuel projects, in line with a commitment it made in December last year. Norway's export credit agency, Eksfin, provides most of the country's financing for overseas fossil fuel projects. Eksfin provided between 8.78bn Norwegian kroner and 10.98bn NKr ($786mn- 983mn) over July 2021-June 2023 for fossil fuel projects, civil society organisation Oil Change International found. Norway signed the Clean Energy Transition Partnership (CETP) at the UN Cop 28 climate summit in 2023. The CETP aims to shift international public finance "from the unabated fossil fuel energy sector to the clean energy transition". The CETP, which now has 41 signatories, was launched at Cop 26 in 2021, with an initial 39 signatories including most G7 nations and several development banks. Signatories commit to ending new direct public support for overseas unabated fossil fuel projects within a year of joining. Abatement, under the CETP, refers to "a high level of emissions reductions" through operational carbon capture technology or "other effective technologies". It does not count offsets or credits. Australia, which also signed the CETP at Cop 28, said last week that it would no longer finance overseas fossil fuel projects. "Norway is also working to introduce common regulations for financing fossil energy within the international main agreement for state export financing in the OECD", the Norwegian government said today. Norway's policy "helps increase momentum" for an OECD deal that could end $41bn/yr in oil and gas export financing, Oil Change said. Countries are involved in "final negotiations" on the deal today, Oil Change added. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Braya may idle Canada RD plant by year-end


09/12/24
09/12/24

Braya may idle Canada RD plant by year-end

New York, 9 December (Argus) — The largest renewable diesel (RD) producer in Canada is weighing whether to idle its 18,000 b/d biorefinery before the end of the year, citing poor margins and uncertainty about US biofuels policy. Braya Renewable Fuels — which began commercial operations in February at a former petroleum refinery in Come-by-Chance, Newfoundland and Labrador — said any potential shutdown would be temporary to see if market conditions improve. The company had previously planned to increase capacity to 35,000 b/d and to also produce sustainable aviation fuel. "Braya plans to retain its permanent workforce if a temporary economic shutdown is required" and "all equipment would be maintained in good condition and in a ready to start mode", refinery manager Paul Burton said. Other Canadian biorefineries have criticized what they see as an unlevel playing field between US and Canadian producers, since ample supply of US-produced renewable diesel has arrived in Canada this year and helped crash prices of federal and British Columbia clean fuel credits. Economics for Canadian biofuel producers could worsen in January when a US tax credit for blenders of biomass-based diesel expires and is replaced by an incentive that can exclusively be claimed by US producers, likely deterring foreign fuel imports. Braya has seen "lower-than-normal margins" recently and "short-term market disruptions" from the looming expiration of that blenders credit, Burton said. A proposal to extend the blenders credit for another year faces long odds in Congress' lame duck session, energy lobbyists have said . Braya has exported more than 2.1mn bl of renewable diesel into the US this year, largely into California, bills of lading indicate. An additional vessel with an estimated 345,000 bl of renewable diesel was scheduled to reach Long Beach, California, last weekend according to data from trade and analytics platforms Kpler, reflecting foreign producers' incentive to rush biofuel into the US before the end of the year. Braya has also criticized policy shifts in California, where regulators recently updated the state low-carbon fuel standard to eventually limit credit generating opportunities for fuels made from soybean and canola oil. In August comments to California regulators, Braya said that it had "entered into tens of millions of dollars of soybean oil feedstock contracts for 2025" and that soybean oil at the time represented "well in excess" of 20pc of its feedstock mix. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s QPM to buy Moranbah gas-fired power station


09/12/24
09/12/24

Australia’s QPM to buy Moranbah gas-fired power station

Sydney, 9 December (Argus) — Australian independent QPM Energy will buy the 12.8MW gas-fired Moranbah power station (MPS) as the firm pivots from battery materials to being a central Queensland-focused gas developer. Carbon Logica signed an agreement to acquire the power plant from Sustainable Energy Infrastructure, owned by infrastructure management firm Whitehelm Capital, for A$10.5mn ($6.7mn), QPM said on 9 December. QPM will then lease the facility from Australian mining services firm Carbon Logica, before it takes ownership of the plant. The sale will settle over a four-year period, with operations and maintenance to be conducted by QPM, which will also receive all MPS' electricity sales. QPM also owns the 64 TJ/d (1.74mn m³/d) Moranbah gas project. QPM renamed itself from Queensland Pacific Metals last month, and in April announced it would cut spending on its Townsville Energy Chemicals Hub project which aims to produce 16,000 t/yr of nickel and 1,750 t/yr of cobalt sulphates from imported laterite ore, citing the slumping global nickel price. The company is seeking to increase waste gas production from the Bowen basin's coal mines to 35 TJ/d by late 2024, up from October-December 2023's 28 TJ/d. Coal mines captured under Australia's greenhouse emissions reduction laws must reduce methane gas flaring under stricter laws to be imposed from 1 July 2025. QPM signed a revenue-sharing deal for excess power generated from Thai-owned Ratch Australia's Townsville Power Station (TPS) on 4 December. The 10-year agreement begins on 1 July next year and will cover revenue from the plant above QPM gas supply levels of 12 TJ/d, with operating costs for TPS and the 108 TJ/d North Queensland gas pipeline to be recovered first. Gas peaking plants can generate significant profits as Australia's electricity markets transition supply from thermal to renewable generators, particularly during the evening peak when wholesale spot electricity market prices can soar above A$1,000/MWh. QPM wants to develop 300MW of new gas-fired power generation at its Moranbah project, because of the state government's policy for an additional 3GW of new gas-fired generation as it retires coal-fired plants in the coming years. Only 2.2GW of the presently installed 2.9GW of capacity is being dispatched, mainly owing to a lack of domestic gas supply, QPM said on 14 November. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Republicans weigh two-step plan on energy, taxes


06/12/24
06/12/24

Republicans weigh two-step plan on energy, taxes

Washington, 6 December (Argus) — Republicans in the US Congress are considering trying to pass president-elect Donald Trump's legislative agenda by voting first on a filibuster-proof budget package that revises energy policy, then taking up a separate tax cut bill later in 2025. The two-part strategy, floated by incoming US Senate majority leader John Thune (R-South Dakota), could deliver Trump an early win by putting immigration, border security and energy policy changes into a single budget bill that could pass early next year without Democratic support. Republicans would then have more time to debate a separate — and likely more complex — budget package that would focus on extending a tax package expected to cost more than $4 trillion over 10 years. The legislative strategy is a "possibility" floated among Senate Republicans for achieving Trump's legislative goals on "energy dominance," the border, national security and extending tax cuts, Thune said in an interview with Fox News this week. Thune said he was still having conversations with House Republicans and Trump's team on what strategy to pursue. Republicans plan to use a process called budget reconciliation to advance most of Trump's legislative goals, which would avoid a Democratic filibuster but restrict the scope of policy changes to those that directly affect the budget. But some Republicans worry the potential two-part strategy could fracture the caucus and cause some key policies getting dropped, spurring a debate among Republicans over how to move forward. "We have a menu of options in front of us," US House speaker Mike Johnson (R-Louisiana) said this week in an interview with Fox News. "Leader Thune and I were talking as recently as within the last hour about the priority of how we do it and in what sequence." Republicans have yet to decide what changes they will make to the Inflation Reduction Act, which includes hundreds of billions of dollars of tax credits for wind, solar, electric vehicles, battery manufacturing, carbon capture and clean hydrogen. A group of 18 House Republicans in August said they opposed a "full repeal" of the 2022 law. Republicans next year will start with only a 220-215 majority in the House, which will then drop to 217-215 once two Republicans join the Trump administration and representative Matt Gaetz (R-Florida) resigns. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Denmark's wind tender flop linked to H2 network doubts


06/12/24
06/12/24

Denmark's wind tender flop linked to H2 network doubts

London, 6 December (Argus) — Denmark's failure to attract bids in an offshore wind tender was partly caused by the country's lack of firm commitment to a hydrogen pipeline network, according to Danish and European hydrogen associations. For Denmark's hydrogen industry the failed tender is raising concerns that Copenhagen might resort to state aid for offshore wind, which could jeopardise renewable hydrogen production that is compliant with EU rules. Denmark unsuccessfully offered three areas totalling 3GW in a first part of the auction that ended on 5 December, and will offer another 3GW in a second part ending in April 2025. The "very disappointing" result will now be investigated by the Danish Energy Agency to discover why market participants failed to bid, energy minister Lars Aagaard said. Wind project developers may have worried that low electricity prices in an increasingly saturated power market and inadequate export routes — either via power cables or as hydrogen via pipeline — would deny a return on investments, industry participants said. Ample offshore wind potential could allow Denmark to generate power far in excess of its own needs. But in order to capitalise on this the country would need to find a way of getting the energy to demand markets. Turning offshore wind into renewable hydrogen for export was "a very attractive solution" for developers, Hydrogen Europe chief policy officer Daniel Fraile said, but would rely on timely construction of a network "all the way from the coast to Germany's hydrogen-hungry industry." Denmark's hydrogen network was recently pushed back to 2031-32 from an initial 2028, partly because of an impasse over funding that provoked anger from industry. The government has said it will only help fund the hydrogen transport network if there are sufficient capacity bookings guaranteeing its use. But this approach increases risks for developers, according to Fraile. "You need to handle the risk of winning the offshore tender, finding a hydrogen offtaker in Germany and commit to inject a large amount of hydrogen over several years. Then deliver the project on time and on cost," he said. "This is a hell of an undertaking." Industry association Hydrogen Denmark's chief executive Tejs Laustsen Jensen agreed, calling the failed tender "a gigantic setback". "The uncertainty about the hydrogen infrastructure has simply made the investment too uncertain for offshore wind developers," he said. "Now the task for politicians is to untie this Gordian knot." "Of course, the tender must now be re-run, but if the state does not guarantee in that process the establishment of hydrogen infrastructure, we risk ending up in the same place again," he said. The booking requirement as a prerequisite for funding the network "must be completely removed," Jensen said. Green energy association Green Power Denmark said "there is still considerable uncertainty about the feasibility of selling electricity in the form of hydrogen," but pointed to other factors that may have led to the tender failing to attract bids. Wind turbines and raw materials have become more expensive because of inflation while interest rates have risen sharply, reducing the viability of such projects, the group's chief executive Kristian Jensen said. Unlike some other countries, Denmark does not intend to fund grid connections or provide other subsidies, he said. Unwanted help Hydrogen Denmark's Jensen warned against the government resorting to subsidies to help get offshore wind farms built. "State support for offshore wind would be the death knell" for the hydrogen sector and would "de facto kill all possibilities for a green hydrogen adventure in Denmark," he said. Granting state support for offshore wind farms would mean these assets would not comply with the additionality requirement of the EU's definition for renewable fuels of non-biological origin (RFNBO), which are effectively renewable hydrogen and derivatives. EU rules state renewable assets are only considered 'additional' if they have "not received support in the form of operating aid or investment aid," although financial support for grid connections is exempt from this. "If state aid is provided for the offshore wind that is to be used to produce the hydrogen, we will lose the RFNBO stamp, and the Danish hydrogen cannot be used to meet the green EU ambitions for, among other things, industry and transport, and the business case is thus destroyed," Jensen said. By Aidan Lea and Stefan Krumpelmann Geographical divisions of Denmark's H2 network plan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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