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

Spanish Market: Fertilizers, Hydrogen
13/05/25

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

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.

20/06/25

ArcelorMittal halts DRI-EAF projects in the EU

London, 20 June (Argus) — Luxembourg-based steelmaker ArcelorMittal said it will not proceed with previously announced direct-reduced iron (DRI) and electric arc furnace (EAF) decarbonisation projects at Bremen and Eisenhuttenstadt in Germany. The company cited unfavourable policy and slower than expected progress in the energy transition — particularly the lack of commercially viable renewable hydrogen. The company initially planned to supply DRI from Bremen to the EAF in Eisenhuttenstadt after their construction. ArcelorMittal first announced the plans in 2021, projecting that the two sites could produce up to 3.5mn t/yr of steel using renewable hydrogen by 2030. The company initially planned to use natural gas for DRI production in Bremen and gradually switch to renewable hydrogen. But in November last year, the company said it was unable to take final investment decisions on building the DRI-EAF assets in the EU because of challenging energy, policy and market environments that were not moving in a favourable direction. The projects were slated to receive €1.3bn ($1.5bn) in subsidies from the German federal government, contingent on construction beginning by June 2025. Even with that support, the business case remains too weak, ArcelorMittal Europe chief executive Geert van Poelvoorde said. The company has formally notified the government it will not be taking the subsidies. "This decision underlines the scale of the challenge. As it stands, the European steel industry is under unprecedented pressure to stay viable — without factoring in the additional costs required to decarbonise," Poelvoorde said. It remains unclear what the company's decision means for its related partnerships with German utility RWE and US-based Plug Power. ArcelorMittal and RWE announced plans in 2022 to identify locations for electrolysis plants to supply renewable hydrogen to the steelmaker's Bremen and Eisenhuttenstadt sites, starting with a 70MW pilot facility by 2026. In a separate agreement in 2023, Plug Power committed to supply two 5MW electrolysers to utility SWB for ArcelorMittal's green steel feasibility project at Bremen. The company has urged the EU to accelerate enforcement of the carbon border adjustment mechanism, strengthen trade protections and implement the EU Metals Action Plan to restore the competitiveness of low-emissions steel. In May, ArcelorMittal confirmed its intention to invest €1.2bn in a new EAF at its Dunkirk site in France. Market participants suggest the company was delaying its DRI investments in Ghent, Belgium, and Dunkirk, but the steelmaker has yet to comment. The French government in 2023 approved an €850mn grant to ArcelorMittal to decarbonise its Dunkirk asset. ArcelorMittal's move comes as other steelmakers in Germany also reassess their decarbonisation timelines. Thyssenkrupp, for instance, has warned that its planned DRI plant in Duisburg — expected to switch from natural gas to hydrogen — may not be economically viable under current conditions. By Elif Eyuboglu and Akansha Victor Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Germany plans €17,000/t e-SAF penalty

20/06/25

Germany plans €17,000/t e-SAF penalty

Hamburg, 20 June (Argus) — Germany is planning to impose penalties of €17,000 for each tonne that fuel suppliers fall short of their hydrogen-based synthetic aviation fuel (e-SAF) obligations, under a draft bill implementing the EU's revised Renewable Energy Directive (RED III). The draft, seen by Argus , allows for the penalty level to be adjusted in future. The EU's ReFuelEU Aviation legislation mandates e-SAF blending from 2030. Fuel suppliers must ensure that e-SAF makes up at least 1.2pc of their overall aviation fuel supply on average in 2030–31, with a minimum of 0.7pc each year. The share rises to 2pc in 2032, 5pc in 2035 and 35pc by 2050. Member states are required to set penalties at least twice the price difference between e-SAF produced from renewable hydrogen and conventional jet fuel. Reference prices published by the European Union Aviation Safety Agency earlier this year implied minimum penalties of €13,922/t. Germany's proposed €17,000/t penalty would significantly exceed that level. E-SAF can be produced using renewable or non-fossil low-carbon hydrogen, such as hydrogen from nuclear-powered electrolysis. The legislation also permits the direct use of hydrogen in aviation, although this is widely seen as a longer-term prospect. Germany had previously proposed its own national e-SAF quotas but scrapped those plans following the introduction of EU-wide mandates. Most planned e-SAF production facilities in Europe and globally remain in early development stages. Industry participants have repeatedly called for greater regulatory clarity — including on penalties — and additional support to unlock final investment decisions. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Urea prices surge in Australia, prompt supply limited

20/06/25

Urea prices surge in Australia, prompt supply limited

Sydney, 20 June (Argus) — Domestic urea prices in Australia have surged on the back of rising international fob prices because of ongoing hostilities in the Middle East, and prompt supply has tightened on increased demand. Israel's attack on Iran in the early hours of 13 June and the further escalation of tensions has caused international urea prices to surge on tightened supply as Egyptian output was halted on 13 June and Iranian urea production went off line on 18 June because Israeli gas flows have stopped. Saudi Arabian fertilizer producer Sabic sold 45,000t of granular urea at $450/t fob on 17 June, a sharp rise from $402/t fob in a deal four days earlier. Domestic urea prices in Australia rose throughout the week to 20 June almost as fast as international prices as suppliers raised their offers on a day-by-day basis. Retailers that previously hesitated to buy from importers because of weak domestic demand rushed into the market to procure supplies on fears of further price rises. Offers started the week at around A$775/t ($503/t) fca Geelong on 16 June, increasing to A$790-800/t on 17 June. Cargoes were reportedly sold as high as A$865/t as buyers rushed into the market. Two suppliers reportedly offered urea out of Geelong at A$900/t late on 18 June, but buyers retreated at that level. Weekly average domestic granular urea prices were assessed much higher on the week at a midpoint of A$865/t fca Geelong in the week to 20 June, up from A$745-750/t a week earlier ( see graph ). Urea stocks high, prompt supply limited Healthy stocks and underwhelming domestic consumption from growers owing to unfavourable weather conditions had limited demand for urea so far in 2025, which in turn buoyed stocks and prompted suppliers to lower prices from mid-April until hostilities broke out in the Middle East. Australia imported 1.26mn t of urea in the first four months of the year, the latest data from the Australian Bureau of Statistics show. Urea imports reached an estimated 601,000t in May and are expected to decrease to 508,000t in June, according to vessel-tracking data from trade analytics platform Kpler. This suggests Australia's urea imports could reach 2.37mn t in January-June, down from 2.49mn t in the first half of 2024. But Australian urea stocks are still likely to be higher at the end of June 2025 compared with the same month a year earlier, according to Argus estimates. Favourable weather conditions for urea utilisation early in 2024 reduced urea stocks in the country last year. Urea stocks in Australia are healthy and suppliers started selling cargoes in May for delivery in 1-3 months' time because of sluggish local demand. This has led to at least one supplier running out of supply for prompt sale and delivery after buyers entered the market this week. The tight supply for prompt delivery of urea likely supported the surge in domestic urea prices over the past week. By Tom Woodlock Price of granular urea fca Geelong (A$/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil central bank raises target rate to 15pc

18/06/25

Brazil central bank raises target rate to 15pc

Sao Paulo, 18 June (Argus) — Brazil's central bank today raised its target interest rate by 0.25 of a percentage point to 15pc, the highest level since July 2006, citing a still "adverse and uncertain" global economic scenario. That is the seventh consecutive hike from a cyclical low of 10.5pc at the end of September last year. The bank had last increased the rate by 0.5 of a percentage point in May . "The [economic] scenario continues to require caution on the part of emerging countries in an environment of heightened geopolitical tension," the bank said, citing the US' "uncertain economic policies." The bank also said it increased the interest rate because Brazil's inflation remains above the ceiling of 3pc with a tolerance of 1.5 percentage points above or below. Annual inflation eased to 5.32pc in May . Central bank forecasts for 2025 and 2026 inflation remain at 5.2pc and 4.5pc, respectively, it said. "Inflation risks, both upside and downside, remain higher than usual," the bank said By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Poland wraps up CBAM changes with European Parliament

18/06/25

Poland wraps up CBAM changes with European Parliament

Brussels, 18 June (Argus) — Poland has concluded negotiations on behalf of EU member states with the European Parliament for a revised carbon border adjustment mechanism (CBAM), ahead of handing over the bloc's six-month rotating presidency to Denmark at the end of June. But Warsaw will not lead discussions on the EU's emissions cut target for 2040 and the bloc's updated nationally determined contribution (NDC) to the Paris climate agreement. Leading negotiations for EU states with parliament, Poland's deputy climate minister Krzysztof Bolesta said the revised CBAM would exempt 90pc of originally covered EU companies from reporting obligations, while 99pc of emissions embedded in imported products would remain covered. The agreement on CBAM now has to be formally approved by parliament and EU ministers. Once published in the bloc's official journal, the revised CBAM text will exempt importers that do not exceed a new single mass-based threshold of 50 t/yr of imported goods. Bolesta admitted that progress has been held up on concluding the EU's NDC during Warsaw's presidency of EU ministerial meetings. CBAM was also listed by Bolesta as one of the points for flexibility in discussions on the 2040 climate target, alongside carbon credits under Article 6 of the Paris agreement, additional funding and flexibility between climate sub-targets. At a meeting of environment ministers yesterday, Bolesta indicated that most states still favour the European Commission linking its submission of an EU NDC to the UN — which includes a 2035 emissions cut target — with the bloc's planned 2 July proposal for a 2040 EU climate target. The CBAM yesterday contributed to delays in technical negotiations held in Bonn, Germany, for the UN Cop 30 climate conference in Brazil. The Like-Minded Group of Developing Countries, including countries such as Bolivia, China, Saudi Arabia, Cuba and Vietnam, had urged the need to address concerns "with climate change-related trade-restrictive unilateral measures". Despite "very, very divergent views", EU member states agree that it "is absolutely urgent to come up with an NDC before the end of September", Bolesta said. The Polish presidency of the EU, chairing climate ministers' meetings, has advanced NDC work as much as possible in the absence of the commission's proposal to revise the bloc's climate law. "We really have only a couple of months to come up with something. What lacks in the NDC draft is now the headline target," Bolesta said. Countries have not yet discussed the quality of Article 6 offsets, Bolesta added. "Everyone in the room realises that we need to be very stringent on what kind of offset will be let into the system," he said. EU climate commissioner Wopke Hoekstra is "cautiously optimistic" that a landing ground can be found on the 2040 climate target. He called for more assertive climate diplomacy, as a large part of the problem lies outside Europe. For China, Hoekstra noted unfair trade practices and "serious" concerns about plans to build additional coal-fired plants. "It's a mixed bag. And we invite them to step up their ambition," he said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. 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