ET Fuels secures bunkering buyer for Texas e-methanol

Spanish Market: E-fuels, Hydrogen, Petrochemicals
24/02/26

Irish project developer ET Fuels signed a binding long-term offtake agreement to supply e-methanol "at a fixed price" to UK-based shipping company RFOcean from 2030.

The supply will come from ET Fuels' most advanced project in the US, the Rattlesnake Gap plant in Texas that will produce 120,000 t/yr of e-methanol.

Neither company disclosed the amount involved, but ET Fuels said it will "still have volumes to sell for any other early movers."

The agreement with RFOcean has given ET Fuels "a clear path" to raise the financing it needs to move forward with Rattlesnake Gap, chief executive Lara Naqushbandi told Argus.

The EU's FuelEU Maritime regulation requiring shipping companies to gradually reduce the carbon intensity of bunker fuels was the main driver behind the deal, said RFOcean chief executive Fredrik Rye-Florentz.

"Compliant fuel will be scarce," he said. "By locking in supply now at fixed prices, we can offer our customers certainty" of fuel supply that meets requirements under FuelEU Maritime.

This is RFOcean's first e-fuel procurement agreement. The multiplier applied for use of non-carbon fuels from 2030-34 gives "a big incentive" to shipping companies to secure e-fuels, Rye-Florentz said.

Naqushbandi said the offtake agreement "sends a clear message to policymakers: stable regulations unlock investment.

"Any weakening of the EU's green fuel standards would undermine momentum at exactly the wrong time," she said.

Rattlesnake Gap is in an advanced initial engineering design phase. ET Fuels aims to start construction by 2027 and production by 2030, to meet the timeline requirements to benefit from four different types of tax credits in US. It is planning other similar projects in the US and Europe.

The company recently secured €118.6mn ($140mn) in tax credits from Business Finland for a 100,000 t/yr e-methanol project being developed in partnership with state-owned energy company Neova.

Finland is one of Europe's "most attractive jurisdictions" for production of renewable hydrogen and derivatives because of "abundant renewable and biogenic CO2 resources, streamlined permitting, and stable policy frameworks," ET Fuels said.

By Pamela Machado

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25/02/26

South Korea approves Hyundai Chemical, Lotte merger

Singapore, 25 February (Argus) — South Korea's trade, industry and resource ministry (Motir) has approved chemical producers Hyundai Chemical and Lotte Chemical Daesan's restructuring plans along with a support package on 25 February. Hyundai Chemical and Lotte Chemical jointly applied to merge their plants in November 2025 . Hyundai Chemical is a joint venture between Hyundai Oilbank and Lotte Chemical. This is the first project approved under South Korea's government-led rationalisation efforts across the Daesan, Ulsan and Yeosu petrochemical complexes. These efforts were in response to the industry's prolonged losses since 2021, driven by rapid capacity expansions, particularly in China. Under the approved plans, Lotte Chemical will merge its Daesan petrochemical plant with Hyundai Chemical, integrating the naphtha cracking centre (NCC) and downstream units. Parent companies Lotte Chemical and Hyundai Oilbank will invest 600bn Korean won ($420mn) each and will share equal ownership of the newly integrated corporation. The restructuring is expected to take three years, during which Lotte Chemical will suspend its 1.1mn t/yr ethylene cracker in Daesan, and reduce operations of low-profit downstream facilities to curb oversupply in the Daesan petrochemical complex. The newly integrated corporation aims to focus on producing higher value-added and eco-friendly products instead of general-purpose products, Motir said. The South Korean government will also provide a customised support package worth W2.1 trillion, which will include financial, taxation, regulatory, cost structure improvement, employment, and technology development assistance for the firms' restructuring implementation. But the specific financial measures are to be finalised by the Korean Development Bank after consultations with institutional creditors. Other key producers including YNCC, GS Caltex, LG Chem, S-Oil, SKGC, and KPIC also submitted their business restructuring proposals in December 2025, and are under government review. The submitted plans would meet the collective target to reduce the nation's naphtha cracking capacity by 2.7mn-3.7mn t, according to the ministry. But revisions to the plans have been requested, and finalised drafts for restructuring plans for the Yeosu and Ulsan petrochemical complexes are expected by the end of the first quarter of 2026, said market sources close to South Korean cracker operators. By Angie Liew Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Osaka Gas, Inpex trial synthetic methane for city gas

24/02/26

Osaka Gas, Inpex trial synthetic methane for city gas

Tokyo, 24 February (Argus) — Japanese gas retailer Osaka Gas and upstream firm Inpex have started feeding a blend of synthetic methane and natural gas into Inpex's 1,536km gas pipeline network, which spans areas in central Japan that are near Tokyo. They introduced synthetic methane to natural gas pipeline network on 20 February, they said today. Details about the volumes of synthetic methane used were not disclosed. The synthetic methane is produced with hydrogen and captured CO2. They have sourced the hydrogen from Japanese firm Iwatani and the CO2 from Inpex's 4.1mn m³/d Koshijihara plant in Nagaoka city, Niigata prefecture. No issues were reported after they injected synthetic methane, Osaka Gas said. Construction of a synthetic methane production facility, which has a capacity of 400 normal m³/h (Nm³/h), or the equivalent of the annual gas consumption of about 10,000 households, started at Inpex's Koshijihara property in 2023. The facility started trial operations in June 2025, immediately after construction was completed. The facility is the world's largest-class methanation test facility according to the e-NG Coalition — an international group of companies that aim to expand the use of e-methane, typically produced from renewable hydrogen and recycled CO2. The synthetic methane that was produced at the pilot project in Niigata will not be counted towards Osaka Gas' target of replacing 1pc of city gas volumes with e-methane by 2030. This is because the project is scheduled for completion in March 2027 and future plans for the newly constructed production facility have yet to be decided, Osaka Gas said. Osaka Gas and Inpex received a five-year subsidy from state-controlled research and development institute Nedo in 2021 , to study the use of synthetic methane as an alternative feedstock to city gas. The subsidy ends in March 2027. The two firms will purchase 750 t/yr of liquefied hydrogen from Iwatani for this project. The hydrogen purchased from Iwatani is not green hydrogen, but the hydrogen will be replaced with green hydrogen generated by renewable energy sources in the future, if this demonstration is successful, Osaka Gas said. The project is merely a pilot project, and injecting synthetic methane into natural gas pipelines is the priority, Osaka Gas added. By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Netherlands opens €33.6mn clean shipping subsidy round

23/02/26

Netherlands opens €33.6mn clean shipping subsidy round

London, 23 February (Argus) — The Netherlands will open the second funding round under its €210mn ($247.8mn) Maritime Masterplan (MMP) on 19 May 2026, allocating €33.6mn to projects deploying alternative marine fuels on newbuild or retrofitted vessels, the infrastructure and water management ministry said. The 2026 call expands on the first 2024 round, which backed hydrogen and methanol propulsion as well as carbon capture systems on LNG fuelled ships. The new round adds "limited eligibility" for ammonia and bioethanol projects. The ministry said the change follows industry feedback seeking wider fuel options. Companies have until 3 November 2026 to apply. Projects can receive up to €8mn each, covering research and development and demonstration activities. Of the total budget, €21.6mn is reserved for projects requesting more than €4mn, with €12mn available for applications below that threshold. Each bid must come from a consortium of at least "two unrelated firms". The funding is intended to support the government's plan to demonstrate around 30 climate neutral vessels in the coming years as part of its zero emission shipping strategy. The first MMP round, open from June to October 2024, awarded €85mn across three technology lines: €40mn for hydrogen powered vessels, €25mn for methanol projects and €20mn for carbon capture systems on LNG ships. A third and final call under the scheme is scheduled for 2029. By Chingis Idrissov Projects selected under the 2024 MMP round Project name Consortium Vessel type Fuel line technology Blue Horizon Carbotreat, IHC, Anthony Veder, TNO Retrofit for LNG tanker (Coral Energy) Carbon capture unit on LNG vessel ME2CC Carbotreat, IHC, others Retrofit for roll-on-roll-off cargo ship (Samskip Kvitbjorn) Carbon capture unit on LNG vessel Columbus Zero One Mineralis, NPRC, Faasse Maritiem Newbuild inland beunschip (sand-carrier barge) Gaseous H2 (350 bar) with fuel cells Gaasterland H2 Mineralis, TNO, Vink Diesel, Kuster H2 Energy, Nexus Marine, Zwijnenburg Shipyard, Verhoef EMC Retrofit deep-suction dredger Hybrid with H2 combustion engine and fuel cells H2Estia Nederlandse Innovatie Maatschappij (NIM), suppliers & research partners Newbuild coastal general cargo ship Liquid H2 with fuel cells Hydro Navis SIF Group, NPRC, Hydro Nova, Marin, NIM, Concordia Damen Newbuild inland push-tug and barge Liquid H2 with fuel cells Nera-H2 NPRC, Marin, Teamco, NIM, others Newbuild river cruise vessel Hydrogen fuel cells and battery system Methanorms Fugro + 9 industrial partners + 5 research institutes Retrofit survey vessel (Fugro Galaxy) Methanol-powered vessel Moby-NL Victrol, Shipping Technology, NIM, Rensen & Driessen, MARIN, TNO Newbuild methanol bunkering vessel Methanol-powered vessel Dutch Maritime Network Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

European rPET faces structural challenges: Petcore

20/02/26

European rPET faces structural challenges: Petcore

Recycling capacity continues to expand worldwide, despite structural challenges in the European market, writes Chloe Kinner London, 20 February (Argus) — The European virgin PET (vPET) and rPET value chain is facing deep structural challenges, delegates at the Petcore annual conference in Rome heard on 5-6 February. The European commission recognises European plastics producers and recyclers face ongoing pressures from high energy costs and insufficient checks on imported products claiming compliance. But European recyclers are concerned that protective measures will come too late. In vPET, European producers and recyclers are affected by a global overcapacity crisis, driven by Asian overcapacity, and this is resulting in heightened trade defence activity and tightening European regulation. Trade was high on the agenda at the conference. Delegates discussed the limited impact anti-dumping investigations are having on safeguarding the market and noted that the EU-India free trade agreement may encourage more competition. Protective action is historically high, with chemicals representing a quarter of all active measures, EU trade defence officials said. Despite the challenges the European recycling market are facing, recycling capacity continues to expand worldwide, with around 1,600 mechanical recycling plants in operation. Government incentives, pressure from non-governmental organisations and strong investment flows, particularly in Asia, are propelling this growth. But from a European perspective, growth in global recycling capacity is causing aggressive price competition and rising outputs for recycled material from southeast Asia, Turkey and north Africa in particular, putting addition pressure on European rPET prices. Weak demand and well-stocked inventories are also putting downward pressure on European rPET prices, recyclers said. The industry is waiting on a forthcoming dedicated customs code for rPET, expecting that more accurate reporting of trade volumes will bring clarity to market dynamics and support future protective measures for the European recycling industry. There is also hope that separate HS codes for rPET could help to prevent unregulated material from entering the European market. The European Commission acknowledged that Europe lacks sufficient laboratory capacity for advanced chemical analysis on recycled material at scale. But highlighted that a simple but robust protocol to distinguish rPET from vPET is in development. Regulatory pressure and advancements were also in focus at the event. The industry will have to navigate a large quantity of EU legislation expected to arrive in 2026–30. Circular economies and competitiveness go hand in hand and maintaining a functioning single market is critical as national initiatives expand, the commission said. Petcore members were urged to strengthen cross-value chain dialogue to support consistent implementation of the Single Use Plastics Directive (SUPD), the Packaging and Packaging Waste Regulation (PPWR) and emerging traceability rules, but participants are concerned that a patchwork of differing legislation will develop in the coming years, making the market more complex and ultimately less competitive on a global level. The EU drafted the PPWR "in a rush", leaving many operational details unclear, conference participants said. The PPWR targets may be unachievable at scale with current technologies, particularly for plastics and products that currently have low collection and recycling rates, a few speakers said. Trays are especially difficult to make circular because of sorting and recycling costs. Many delegates feel that extended producer responsibility fees and eco-modulation are essential tools for keeping recycling economically viable, particularly for these emerging areas. An update to the SUPD implementing decision was voted on and passed during the conference . The decision clarifies mass balance rules and the inclusion of chemical recycling, and establishes rules for fuel-exempt mass balance. Recycled PET produced outside the EU market cannot count towards the 25pc recycled content for PET beverage bottles until after 21 November 2027, when imports from OECD countries will be allowed. Imports from non-OECD countries will be allowed to count if an agreement is reached with the EU and the country can prove environmentally sound management of plastic waste. The exclusion of imports towards recycled content targets may give European recyclers some "breathing space", at least in the short term. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Equinor halts Dutch CCS-H2 plans, Belgian site still on

19/02/26

Equinor halts Dutch CCS-H2 plans, Belgian site still on

Hamburg, 19 February (Argus) — Norwegian state-controlled Equinor has scrapped plans to make hydrogen from natural gas with carbon capture and storage (CCS) in the Netherlands, but remains committed to a project in Belgium. Equinor told Argus it has halted the Dutch H2M Eemshaven project because of "policy uncertainty and lack of funding," but the Belgian H2BE project "is still on." H2M Eemshaven was due to make around 210,000 t/yr of hydrogen using autothermal reforming technology to capture some 95pc of emissions. Equinor first announced the plans together with industrial gas firm Linde in early 2024 and later that year held an open season for potential offtakers. Last year, the European Commission granted the project €162.1mn in subsidies from the EU Innovation Fund. The H2BE plant in Ghent, which Equinor is developing with France's Engie, would also make 210,000 t/yr using ATR technology. The project was selected for €159mn from the EU Innovation Fund in 2024. Equinor said there are "no new updates" on the plans. It previously targeted financial close by April this year and start of operations by 2030. Equinor has repeatedly criticised the EU's focus on renewable hydrogen with regard to demand mandates. The bloc's revised renewable energy directive (RED III) are for renewable fuels of non-biological origin only and do not cover CCS-based low-carbon hydrogen. This posed a "major restriction" to finding customers, Equinor said in late 2024 , shortly after it abandoned plans for a hydrogen pipeline between Norway and Germany. Regulatory uncertainty and a lack of clear demand contributed to the firm's decision not to proceed with the €4bn-6bn pipeline project, Equinor said at the time, noting it could instead make more CCS-based hydrogen in the Netherlands . H2M Eemshaven is the latest CCS-based hydrogen production plant in Europe to be halted, after several UK projects met the same fate in recent months. Equinor said it "is committed to working with partners, governments, and stakeholders across Europe to advance low-carbon hydrogen solutions where policy frameworks and demand are most robust." By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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