US Senate bill would repeal H2 incentive by year end

Spanish Market: Hydrogen
16/06/25

The US Senate Finance Committee is proposing to abolish the hydrogen production tax incentive at the end of the year, delivering a fresh blow to industry efforts to preserve the credit until 2029.

The Senate bill text released late Monday terminates 45V on 1 January 2026, moving its expiration up from 2033 as originally written during former president Joe Biden's administration. The tax-writing committee opted to retain the language pertaining to 45V passed by the Republican-controlled House of Representatives last month. Elsewhere in the text, the Senate proposed an extended phase out of other clean energy tax credits, including solar, wind, nuclear and geothermal.

Clean energy advocates and fossil fuel proponents both lobbied the Senate to extend 45V's expiration date to 2029, which would have brought the credit in line with other renewable energy incentives that will expire closer to the end of the decade. If the Senate passes the bill as it is written, the vast majority of planned clean hydrogen projects are expected to be abandoned.

Only facilities that begin construction before 31 December will be able to access the incentive. However, many companies with clean hydrogen projects in the pipeline held off from making final investment decisions while the previous administration debated the final requirements for 45V. Hydrogen proponents say the timeline between now and the end of the year is likely too narrow for most projects to take off.

Only a few companies have said they expect to be able to begin construction by the end of this year.

By Jasmina Kelemen

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03/07/25

EU CBAM export plan only partial solution: Industry

Brussels, 3 July (Argus) — Industry has continued to urge a more comprehensive export adjustment under the EU carbon border adjustment mechanism (CBAM) following the European Commission's announcement of a forthcoming proposal yesterday, with some calling for full free emissions trading system (ETS) allocations for production destined for exports. Norwegian fertilizer firm Yara said the CBAM solution is "not good enough". The commission yesterday announced plans to reduce the risk of carbon leakage for goods exported from the EU in CBAM sectors under proposals to be presented by the end of the year, with the aim of providing equal treatment for all goods, whether produced, sold in the EU, or imported and exported. The commission's stated plans are "not good enough" for Monica Andres, Yara's executive vice-president for Europe. "We need a watertight and timely CBAM implementation to level the playing field with more carbon-intensive imports," Andres added, noting the commission's new proposal does not offer sufficient predictability and leads to an "incomplete" CBAM applying from 1 January 2026. "We would have preferred a solution which maintains full free allocations for the part of the production destined for exports," said BusinessEurope director general Markus Beyrer, adding CBAM is "untested and still incomplete" in its design. European steel association Eurofer said the commission's announcement on CBAM exports lacks the actual legal proposal and details on its design. CBAM sectors had proposed a simple mechanism based on free allocation for exports, Eurofer said, noting a "very limited" impact in reversing industrial decarbonisation given the proposed EU greenhouse gas reduction target of 90pc by 2040 against 1990 levels. Refinery industry association FuelsEurope has similarly called for any CBAM changes to maintain sufficient levels of free carbon allowance allocations and include measures to protect exports, if the measure's scope is extended to the refining sector. The scope of the mechanism so far includes cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. The commission is consulting until 26 August on extending CBAM's scope to some downstream products and on circumvention risks. EU states and the European Parliament recently agreed to CBAM revisions exempting some 90pc of originally covered EU companies from reporting obligations. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japanese firms advance LCO2/methanol carrier project

03/07/25

Japanese firms advance LCO2/methanol carrier project

Tokyo, 3 July (Argus) — Japanese shipping firm Mitsui OSK Lines (Mol) and shipbuilder Mitsubishi Shipbuilding have made progress in developing an ocean-going liquified CO2 (LCO2) and methanol carrier, which would play a key role in establishing the country's carbon capture, utilisation and storage (CCUS) value chains. Mol and Mitsubishi have obtained approval in-principle (AiP) from Japanese classification society Class NK for their design concept of a LCO2/methanol carrier. The vessel would ship CO2 out of Japan and deliver CO2-based synthetic methanol (e-methanol) on return voyages to the resource-poor country, the companies announced on 30 June. The AiP certifies that the basic design of the vessel meets international regulation standards, such as technical requirements, as well as relevant safety restrictions covering the transportation of dangerous chemicals and liquefied gases in bulk. This is the world's first issuance of an AiP for a LCO2/methanol carrier, Class NK said. The approval is a major step forward for the companies, which hope to develop the vessel for commercialisation. The target date for its commissioning is still unclear. Mol expects the carrier to help meet Japan's growing demand for CO2 exports and e-methane imports with higher transport efficiency, unlike the use of a dedicated vessel for CO2 or methanol, which results in empty-cargo operation on half of the trips. E-methanol can be produced using CO2 and renewable hydrogen, which will contribute to decarbonising a variety of industries including the maritime shipping sector. Mol has previously invested in US synthetic fuel (e-fuel) producer HIF Global, while working with Japanese refiner Idemitsu and HIF subsidiaries HIF USA and HIF Asia Pacific to develop supply chains for synthetic fuel and e-methanol as well as CO2. HIF plans 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 using green hydrogen and CO2, Mol has said. CCUS value chains would help fossil fuel-reliant Japan reduce its greenhouse gas (GHG) emissions by 60pc by the April 2035 to March 2036 fiscal year and by 73pc by 2040-41, against 2013-14 levels, before achieving the net-zero emissions by 2050. The Mol group, for its part, aims to reduce emissions intensity in transportation by 45pc against 2019 levels by 2035, as it works towards overall net-zero emissions by 2050. Japan's GHG emissions totalled 1.017bn t of CO2 in 2023-24 , down by 4.2pc from a year earlier to the lowest in 34 years, according to the country's environment ministry. This also reflected a 27pc decline against a 2013-14 baseline. By Japan Newsdesk Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU plans measures to support exports in CBAM sectors

02/07/25

EU plans measures to support exports in CBAM sectors

London, 2 July (Argus) — The European Commission said today that it intends to present plans by the end of the year to reduce the risk of carbon leakage for goods exported from the EU in sectors covered by the bloc's carbon border adjustment mechanism (CBAM). The proposal will be designed to provide equal treatment for all goods, "whether produced and sold in the EU, imported into the EU or exported", the commission said. The measure would be set up for a "defined period" and then reviewed in light of the planned 2026 revision of the EU emissions trading system (ETS). No further details were provided. Industries have long raised concerns about risks to competitiveness for products in CBAM sectors exported from the EU, given that they must still pay carbon costs while the mechanism only applies an effective carbon price on goods imported into the bloc. German industry federation BDI warned earlier this year that CBAM provides "no answer" to the problem of exports, while European cement and steel associations have called for export provisions under the mechanism. But there are concerns that introducing export protection measures could put CBAM at odds with World Trade Organisation (WTO) rules. Russia has already raised a CBAM dispute at the WTO , contending that the calculation of existing free ETS allocations for industry — which includes the value of exports — counts as an "alleged export subsidy" in contravention of the General Agreement on Tariffs and Trade 1994, the Agreement on Import Licensing Procedures, and the Agreement on Subsidies and Countervailing Measures. While deeming the measure an "important step", non-governmental organisation Bellona Europa today criticised the lack of information in the commission's initial proposal, which it said "was not presented with sufficient detail and does not provide a clear pathway for a long-term solution to the risk of carbon leakage from exports". "If rebates are the chosen path, they must be conditional on effective and serious decarbonisation commitments," Bellona said. The commission launched a separate consultation this week on whether to extend CBAM's scope to some downstream products to limit carbon leakage from the measure. It is seeking views on whether CBAM causes carbon leakage downstream, and whether extending its scope could reduce this risk or incentivise the take-up of low-carbon EU goods. It also asks respondents whether such an extension would increase costs for EU manufacturers or consumers, the extent of the administrative burden it would entail for EU importers, or non-EU producers and exporters, as well as the potential costs of related reporting requirements. The consultation also seeks views on whether CBAM in its current form poses circumvention risks, including via widely varying embedded emissions under the same goods categories, or resource shuffling, where companies choose to export their cleanest products to the EU without reducing their overall emissions. The consultation closes on 26 August. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s BHP charters ammonia-fuelled carriers

02/07/25

Australia’s BHP charters ammonia-fuelled carriers

Sydney, 2 July (Argus) — Australian miner BHP and China's largest shipping company Cosco have signed a deal to charter two ammonia dual-fuelled Newcastlemax bulk carriers, expected to be delivered in 2028, BHP announced today. The vessels will be used as part of BHP's 255mn-265.5mn t/yr iron ore trade on shipments between Western Australia (WA) and northeast Asia, the miner said on 2 July. Ammonia-fuelled transport will cut greenhouse gas (GHG) emissions by 50-95pc per voyage compared with traditional bunker oil, BHP said. BHP will continue to work on an ammonia bunkering plan in WA ahead of delivery, it said. Several companies are eyeing blue and green hydrogen opportunities in the Pilbara iron ore mining region to meet expected maritime demand. Cosco in January ordered eight Newcastlemax bulk carriers with methanol- and ammonia-ready class notation, allowing for bunkering using either fuel once an engine is selected. The Pilbara region's proximity to offshore gas fields and local port authority Pilbara Ports' status as the world's largest bulk operator has led firms including blue ammonia developer NH3 Clean Energy to plan bunkering facilities in WA. Norwegian firm Yara, which operates the 800,000 t/yr Pilbara ammonia plant, is exploring carbon capture and storage deals to cut its GHG emissions, while jointly developing a 10MW, 640 t/yr green hydrogen facility at the site due to come on line in late 2025 . Danish investment fund CIP's Murchison Green Hydrogen project was awarded A$814mn ($535mn) in federal government production credits in March for a proposed green ammonia export facility expected to commence operations in WA's Mid West region in 2032. Ammonia bunkering on the WA-China iron ore corridor could meet up to 5pc of total shipments annually by 2030 , but this would require 23 vessels operating around 70 Newcastlemax voyages by 2028, according to a 2023 Global Maritime Forum feasibility study. Fellow member of the "big four" iron ore producers in Pilbara Australian miner Fortescue signed an initial agreement with Cosco in 2024 for green ammonia-powered vessels . It signed a chartering agreement with shipowner Bocimar in April 2025 for an ammonia-fuelled carrier to be delivered by late 2026. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US Senate votes to soften clean energy tax cuts: Update

01/07/25

US Senate votes to soften clean energy tax cuts: Update

Adds details throughout Washington, 1 July (Argus) — The US Senate is giving wind and solar projects slightly more time to qualify for subsidies, as part of a budget bill Republicans passed today that would repeal most of the clean energy tax credits in the Inflation Reduction Act while expanding oil and gas leasing. An updated version of the bill , released shortly before it was passed Tuesday by the Senate in a 51-50 vote, would allow wind and solar projects to continue to qualify for clean electricity tax credits so long as they commence construction within 12 months of the bill's enactment. Republican leaders also dropped a first-time excise tax on wind and solar projects they added to the bill just days ago, as they worked to shore up support from US senator Lisa Murkowski (R-Alaska) and other moderates that had balked at a more aggressive tax credit phase-out schedule. The Senate-passed bill would still zero out tax credits for wind and solar projects that are not placed into service before the end of 2027 — in line with a draft of the bill released on 28 June — but developers that start construction within 12 months can still qualify for tax credits worth up to 30pc of a project's cost or up to $15/MWh. Renewable energy officials saw that change as an improvement over the initial draft, which could have ended credits for projects already under development. Clean Energy Business Network president Lynn Abramson said the legislation still represents a "significant step backward" for the industry. The bill, which passed with US vice president JD Vance casting a tie-breaking vote, will now advance to the US House of Representatives for a final vote as soon as Wednesday. House speaker Mike Johnson (R-Louisiana) said the chamber will "work quickly" to pass the bill, although doing so will require near-unanimous support from House Republicans, some of whom have bristled at changes the Senate made to the bill. President Donald Trump said today he wants a final vote by 4 July and urged House Republicans to ignore "its occasional 'GRANDSTANDERS'" that have previously held up his legislative agenda. The Senate bill is expected to cut about $560bn of clean energy tax credits from the Inflation Reduction Act, according to estimates based on the 28 June version of the bill. But those savings will be dwarfed by other spending in the bill and additional tax cuts that, if enacted, are expected to add nearly $3.3 trillion to the debt over the next decade, the US Congressional Budget Office said. The bill would repeal a $7,500 tax credit for electric vehicles purchased after 30 September and zero out all penalties against automakers that fail to meet fuel-economy standards, undermining incentives for automakers to sell electric and hybrid vehicles. Tesla chief executive Elon Musk, who earlier this year worked alongside Trump on a cost-cutting "DOGE" project, said the bill would destroy millions of jobs. "Utterly insane and destructive," Musk said in a social media post on 28 June. "It gives handouts to industries of the past while severely damaging industries of the future." The Senate softened some of the tax credit cuts the House voted for in May. Clean hydrogen projects would need to start construction by 1 January 2028 to qualify for a tax credit of up to $3/kg, rather than facing a House deadline at the end of 2025. In another change, the bill extends a tax credit for biofuels by two years, until 2029, rather than a four-year extension the Senate initially proposed. The bill would expand federal oil and gas leasing by mandating twice yearly lease sales in the US Gulf of Mexico and regular onshore leases, in addition to slashing royalty rates to the lowest levels in nearly two decades. The bill would also indefinitely delay the collection of a $900/metric tonne fee on methane leaks and reinstate a federal tax deduction for "intangible" drilling costs. Another program would provide $171mn to buy crude to refill the US Strategic Petroleum Reserve, a fraction of the $1.3bn fund that was passed by the House. Republicans initially sought to overhaul permitting through the bill, but the only program that is eligible for the filibuster-proof process used for the bill would allow industry to pay a fee to fast-track environmental reviews. The bill would also cut royalties on coal mined on federal land, provide a tax credit for metallurgical coal, repeal climate-related grant programs from the Inflation Reduction Act, and permanently extend some business tax breaks. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US Senate bill would repeal H2 incentive by year end

Related news posts

EU CBAM export plan only partial solution: Industry

EU CBAM export plan only partial solution: Industry

Japanese firms advance LCO2/methanol carrier project

Japanese firms advance LCO2/methanol carrier project

EU plans measures to support exports in CBAM sectors

EU plans measures to support exports in CBAM sectors

Australia’s BHP charters ammonia-fuelled carriers

Australia’s BHP charters ammonia-fuelled carriers

US Senate votes to soften clean energy tax cuts: Update

US Senate votes to soften clean energy tax cuts: Update

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