German industry projects to boost hydrogen sector

  • Spanish Market: Biofuels, Electricity, Emissions, Hydrogen, Oil products
  • 20/11/20

Germany's nascent hydrogen sector got some momentum today through the announcement of two new projects.

Trading firm Mabanaft and speciality products producer H&R have established a joint venture, P2X Europe, to purchase and market synthetic fuels produced in a power-to-liquid (PtL) process. H&R will build a pilot PtL plant in Hamburg that will transform renewable hydrogen, already produced on site, and carbon dioxide into so-called e-fuels and synthetic raw waxes.

E-fuels can be used in conventional combustion engines and can be distributed through existing infrastructure and filling station systems. Mabanaft aims to be one of the first suppliers of carbon-neutral synthetic fuels in Germany.

Also today, a consortium involving utility RWE, BP, speciality chemicals company Evonik and others said it has submitted an application for double-digit million euro amount from the EU Innovation Fund. It will put any funds towards the investment and operating costs of production and purchase of green hydrogen. The GET H2 Nukleus venture aims to initiate a national expansion of a hydrogen economy in Germany.

The constortium plans for green hydrogen produced in RWE's Lingen plant to be transported in existing natural-gas grid pipelines to be used at BP's 265,000 b/d Gelsenkirchen refinery.

Under the German government's biofuels draft law, which aims to implement the EU's revised Renewable Energy Directive (RED II), the use of green hydrogen in the refining process can counted towards the country's greenhouse gas (GHG) emission reduction quota. But industry associations including oil body MWV and automotive group VDA have said that the proposal does not adequately promote the use of synthetic fuels such as e-fuels in road transport.

Germany's economic stimulus package, brought in as a recovery plan from the Covid-19 pandemic, includes €7bn to bring green hydrogen technology to market and €2bn for fostering international partnerships. Hydrogen development is at an early stage, but Germany is not alone in Europe in trying to develop a sector. The UK government plans to invest up to £500mn as a first step toward a target of 5GW production capacity by 2030. This will be "low-carbon hydrogen" capacity, so may not necessarily be green hydrogen generated from renewable energy.


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.

19/04/24

Spain-Portugal congestion income up by 554pc in March

Spain-Portugal congestion income up by 554pc in March

London, 19 April (Argus) — The spread between the Spanish and Portuguese spot index prices has widened in the first quarter of 2024, with Portugal clearing at the lowest price in Europe in March, Iberian power exchange Omie reported. Spanish and Portuguese day-ahead market prices have cleared at larger spreads between them compared with the first quarter of 2023, Omie data show. Congestion income between the two at times of decoupling more than doubled on the year in January, but fell in February. March registered the largest decoupling, supporting congestion income to 554pc compared with February, and was up by 172pc from March 2023. Negotiated output in the intra-day market auctions increased by 19.6pc on the month, and rose by 10pc from March last year. But lower prices pushed economic volume down by 43pc on the month, and by almost 76pc on the year. The volume of negotiated power in the day-ahead market in the first quarter of 2024 was up by 5.49TWh from the same period in 2023. March accounted for the largest increase, rising to 21.52TWh from 19.39TWh in March 2023. 1Q24 spot index price down Spot index prices rose by €4.64/MWh on the year in January, but fell during the rest of the first quarter. February cleared at an average discount to the previous year of €93.92/MWh, and March of €70.02/MWh. Combined the first quarter of 2024 has cleared below half of the same period in 2023. Portugal cleared at the lowest average price among European day-ahead market indexes in March, followed by Spain at a €1.03/MWh premium. The Spanish spot has cleared at an average of €5.82/MWh so far in April, sharply below the €73.77/MWh it cleared at in April 2023. This is also below expectations in the over-the-counter (OTC) market, as the April contract expired at €23.55/MWh at the end of March. The Spanish spot also cleared below zero for the first time . Gas-fired output down, hydropower generation up CCGT generation has averaged 2.6GW in the first quarter of 2024, down from 4GW in the same quarter last year. Average nuclear output also fell by 800MW to 6GW compared with the same period. And the trend has continued so far in April, with nuclear generation averaging 4.9GW, down from 6.3GW in April 2023. Solar photovoltaic (PV) output increased by around 240MW, while wind generation remained similar to the previous year's levels. Operational wind capacity increased to 30.29GW from 30.18GW over the quarter, and PV to 25.22GW from 25.16GW. Hefty rainfall over the first quarter has supported an increase of hydropower output by 1.5GW. And the trend of higher hydropower generation has carried on so far in April, supported by stocks at around 75pc, the highest in a decade . Hydropower has averaged 6.2GW so far in April from 2.36GW in the same month in 2023. But wind generation is down by around 500MW compared with the same period last year. By Thess Mostoles Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India mulls using more natural gas in steel sector


19/04/24
19/04/24

India mulls using more natural gas in steel sector

Mumbai, 19 April (Argus) — India's steel ministry is considering increasing natural gas consumption in the sector as it aims to lower carbon emissions from the industry. Steelmakers held a meeting with the steel ministry earlier this month, to discuss challenges and avenues to increase gas allocation to the sector, according to a government document seen by Argus . Steel producers requested that the government set gas prices at an affordable range of $7-8/mn Btu for them, to make their gas-based plants viable, as well as for a custom duty waiver on LNG procured for captive power. India's LNG imports attract a custom duty of 2.5pc. City gas distribution firms sell gas at market-determined prices to steel companies. Representatives from the steel industry also requested for the inclusion of gas under the purview of the country's goods and service tax, and to be given higher priority in the allocation of deepwater gas, which has a higher calorific value. Deepwater gas is currently deployed mostly to city gas distribution networks. Steelmakers are currently undertaking feasibility tests for gas pipeline connectivity at various steel plants. But a gas supply transmission agreement requires a minimum five-year period for investment approval. The steel industry is heavily reliant on coal, and the sector accounts for about 8-10pc of carbon emissions in the country. A task force of gas suppliers including IOC, Gail, BPCL, Shell, and HPCL and steel producers like Tata Steel, AMNS, All India Steel Re-roller Association and the Pellet Manufacturers Association has been set up, and the team is expected to submit a report on increasing natural gas usage and lowering carbon emissions by 15 May, the government document said. This team is one of the 13 task forces approved by the steel ministry to define the country's green steel roadmap. The steel ministry aims to increase green steel exports from the country in the light of the policies under the EU's Carbon Border Adjustment Mechanism (CBAM), which will take effect on 1 January 2026. Under the CBAM, importers will need to declare the quantity of goods imported into the EU in the preceding year and their corresponding greenhouse gas emissions. The importers will then have to surrender the corresponding number of CBAM certificates. CBAM certificate prices will be calculated based on the weekly average auction price of EU Emissions Trading System allowances, expressed in €/t of CO2 emitted. This is of higher importance to Indian steelmakers as the EU was the top finished steel export destination for Indian steelmakers during the April 2022-March 2023 fiscal year with total exports of 2.34mn t, and has been the preferred choice for Indian steel exports in the current fiscal year owing to higher prices compared to other regions. Indian steelmakers have started to take steps to lower their carbon emissions by announcing collaborations with technology companies to decarbonise, and are trial injecting hydrogen in blast furnaces, and increasing the usage of natural gas in ironmaking. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Amapá cancela regime especial de ICMS


18/04/24
18/04/24

Amapá cancela regime especial de ICMS

Rio de Janeiro, 18 April (Argus) — O Secretário da Fazenda (Sefaz) do Amapá (AP) cancelou ontem o regime especial de tributação de empresas importadoras de combustíveis, colocando um fim a uma situação que gerava distorções de preços no mercado de diesel . A decisão do órgão foi publicada no diário oficial desta quarta-feira, dia 17, e contempla os regimes especiais do tributo estadual ICMS de oito empresas, entre elas a Refinaria de Manguinhos, que pertence ao grupo Fit, Amapetro, Axa Oil, Alba Trading e Father Trading. No caso da Amapetro, a empresa pagava uma alíquota efetiva de 4pc do valor da importação nas compras de outros países para uso próprio para consumo dentro do estado. Considerando a média do indicador Argus de importação de diesel de origem russa ao longo de março, isso equivaleria a R$136,9/m³.O valor atual do ICMS nos outros estados brasileiros é de R$1.063/m³ desde 1 de fevereiro. O estado teria importado 197.244m³ de diesel em março, de acordo com informações do Ministério do Desenvolvimento, Indústria, Comércio e Serviços (MDIC). Isso equivale a 15,9pc do total de diesel importado pelo Brasil no mês. O consumo de diesel A do estado foi de 6.250m³ no mês passado, equivalente a 0,1pc do consumo nacional, de acordo com os dados da Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP). As autorizações do estado criavam distorções de preços no mercado e perdas de arrecadação fiscal em várias estados onde o produto acabava sendo consumido. Associações de produtores e distribuidores de diesel vinham pressionando o poder público nos últimos meses para derrubar esses regimes especiais. De acordo com o Instituto Combustível Legal, a medida causou um prejuízo de R$1 bilhão aos estados onde o combustível importado no âmbito do regime especial era efetivamente consumido, citando os estados de São Paulo, Paraná e Pernambuco como principais destinos. No início do mês, a Refina Brasil, que reúne as refinarias de petróleo independentes do país, estimou que o contribuinte amapaense pagava um valor próximo a R$0,83/l em subsídios para importadores. Por Amance Boutin Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

Conab: Safra de cana-de-açúcar bate recorde


18/04/24
18/04/24

Conab: Safra de cana-de-açúcar bate recorde

Sao Paulo, 18 April (Argus) — A moagem de cana-de-açúcar da safra 2023-24 foi a maior da história do país, em meio a condições climáticas favoráveis e investimentos no setor, de acordo com dados da Companhia Nacional de Abastecimento (Conab). O processamento total de matéria-prima da safra de 2023-24, entre abril de 2023 e o mesmo mês deste ano, totalizou 713,2 milhões de t, alta de 16pc em comparação a 610,8 milhões de t na temporada anterior. As áreas destinadas à atividade canavieira aumentaram 0,5pc, para 8,3 milhões de hectares (ha). A maior disponibilidade de matéria-prima estendeu as operações de moagem – que normalmente param em novembro – até dezembro em importantes estados produtores, como São Paulo. Produção de etanol Tanto a produção de etanol quanto a de açúcar cresceram, segundo a Conab. A produção total de etanol do Brasil – excluindo o biocombustível à base de milho – atingiu 29,6 milhões de m³, salto de 11pc na base anual. O etanol hidratado representou a maior parte do crescimento do processamento este ano, totalizando 17,6 milhões de m³, aumento de 16pc em relação ao ciclo anterior. A paridade favorável para o E100 frente à gasolina na bomba nos principais estados consumidores impulsionou a demanda pelo biocombustível na temporada. Já a produção de etanol anidro subiu 6,5pc, para 12 milhões de m³. O processamento de etanol à base de milho avançou 33pc, registrando 5,9 milhões de m³, com crescentes investimentos no setor tanto no Centro-Sul quanto em outras regiões. O anidro de milho subiu 45pc, para 2,2 milhões de m³. Para o hidratado, o resultado foi de 3,6 milhões de m³, alta anual de 26pc. O Brasil exportou 2,5 milhões de m³ de etanol na temporada de 2023-24, queda de 2,9pc em comparação à safra passada. Os Estados Unidos foram os maiores compradores do biocombustível, com 33pc dos embarques. Em seguida, a Coreia do Sul e o hub Amsterdã-Roterdã-Antuérpia (ARA) responderam por 17pc e 12pc, respectivamente. Já as importações de etanol caíram 43pc em comparação ao ano anterior, somando 215.000m³. Quase todo o produto chegou dos EUA e do Paraguai, que representaram 55,5pc e 44,3pc do volume total. Enquanto isso, a produção de açúcar aumentou 24pc, para 45,6 milhões de t, com usinas direcionando mais matéria-prima para o adoçante em meio a preços atrativos para a commodity no mercado internacional. O Brasil exportou 35,2 milhões de t de açúcar de abril a março, alta de 26pc no ano, em um cenário em que grandes exportadores, como Índia e Paquistão, diminuíram as entregas. China, Índia e Indonésia foram os maiores importadores do produto brasileiro. Por Laura Guedes Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

Wind capacity additions down 93pc under AMLO


18/04/24
18/04/24

Wind capacity additions down 93pc under AMLO

Mexico City, 18 April (Argus) — Mexico installed just 96MW of wind power capacity in 2023, a new low amid President Andres Manuel Lopez Obrador's policy to limit private sector development. Last year's wind power capacity additions were down by 93pc from the 1,281MW installed during Lopez Obrador's first full year in office in 2019, according to the Global Wind Report 2024 published by the Global Wind Energy Council. New wind power additions were also down by 39pc from the 158MW installed in 2022. Lopez Obrador's statist energy policy has sought to claw back state-owned utility CFE's market position in the face of an enormous private sector clean energy build out launched during the previous administration. Between 2016 and 2018 CFE held three long-term power auctions, contracting 7,000MW of new renewable energy projects as the government made a push to decarbonize Mexico's power matrix. But Lopez Obrador ruled out further auctions and has actively curtailed the award of new generation permits, stalling the development of 5,800MW of wind projects, according to wind energy association Amdee. Mexico has 7,413MW of installed wind capacity, accounting for 8.2pc of the country's 89,890MW total installed generation capacity, according to the energy ministry. Despite the slowed pace in Mexico, new wind installation continued to grow in Latin America last year, led by Brazil with 4.8GW to bring total onshore capacity in the country to 30.4GW in 2023. GWEC expects 28.7GW of new wind capacity in Latin America over the next five years, on top of the 50.6GW of current capacity. Globally 117GW of new wind energy capacity was installed last year, up by 50pc on the previous year and a new record. GWEC expects global wind capacity to double to 2TW by 2030, as governments agreed to triple global renewable energy capacity at the climate talks in Dubai last year. The outlook for Mexican wind power also looks more positive with both presidential candidates in the 2 June election committed to accelerating the energy transition through the build out of new clean energy capacity. Governing party candidate and current frontrunner Claudia Sheinbaum pledged to make renewable energy a "hallmark" of her administration and committed this week to investing $13.6bn in clean energy projects if elected. By Rebecca Conan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. 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