Fortescue partners Japanese firms on green hydrogen

Spanish Market: Electricity, Fertilizers, Hydrogen
14/12/20

Australian iron ore producer Fortescue Metals is planning to work with Japanese energy firm Iwatani and engineering firm Kawasaki Heavy Industries (KHI) to study a green hydrogen project, aiming for future exports to Japan.

Fortescue has signed an initial agreement with Iwatani and KHI to consider developing together a supply chain of liquefied hydrogen that is produced from renewable energy sources in Australia. The firms plan to produce hydrogen from solar and wind power sources, liquefy this green hydrogen and then export it to Japan using liquid hydrogen carriers.

Fortescue is separately considering building a 250MW green hydrogen plant at Bell Bay in Tasmania with the capacity to produce 250,000 t/yr of green ammonia, powered by renewable energy. The project will be an important step towards positioning Australia at the forefront of a bulk export market for green hydrogen, the company said.

Australia is becoming a popular destination for Japanese firms to invest in the green hydrogen sector. The two countries are working together on strategies to reduce greenhouse gas emissions, advancing hydrogen co-operation to support national and global transitions to a resilient, low-emissions economy.

Iwatani last month started a feasibility study on green hydrogen production in Australia with Queensland state-controlled power utility Stanwell, also aiming to export the liquefied hydrogen to Japan. Iwatani is the only liquefied hydrogen supplier in Japan, currently producing 120mn m³/yr. The company has a 70pc share of the domestic compressed hydrogen market.

KHI is also focusing on hydrogen in the firm's energy and environmental solutions sector, having decided to withdraw from its nuclear power-related business operations.

By Motoko Hasegawa

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18/04/24

Australia’s Queensland legislates emissions targets

Sydney, 18 April (Argus) — Australia's Queensland state today approved two separate laws setting renewable energy and emissions reduction targets over the next decade, as it transitions away from a coal-fired dependent power generation system. Queensland set net greenhouse gas (GHG) emissions reduction targets of 30pc below 2005 levels by 2030, 75pc by 2035 and zero by 2050 under the Clean Economy Jobs Act, while theEnergy (Renewable Transformation and Jobs) Act sets renewable energy targets of 50pc by 2030, 70pc by 2032 and 80pc by 2035. The state is on track to surpass the 2030 emissions target, latest data show, as it achieved a 29pc reduction in 2021. Even though the share of renewables in the power mix last year was the lowest across Australia at 26.9pc, it has been increasing consistently since 2015 when it was 4.5pc, according to data from the National Electricity Market's OpenNem website. Coal-fired generation has been steadily falling, down to 42.9TWh or a 65.7pc share in 2023 from 52.9TWh or 83pc in 2018. Most of Queensland's coal-fired plants belong to state-owned utilities, which the previous Labor party-led government of Annastacia Palaszczuk indicated would stop burning coal by 2035 . The new Labor party premier Steven Miles disclosed the 75pc emissions reduction target by 2035 in his first speech as leader last December. The Energy Act locks in public ownership of electricity assets, ensuring that at least 54pc of power generation assets above 30MW remain under state control, as well as 100pc of all transmission and distribution assets and 100pc of so-called "deep storage" assets — pumped hydro plants with at least 1.5GW of capacity. The government will need to prepare and publish a public ownership strategy for the July 2025-June 2030 and July 2030-June 2035 periods. A fund totalling A$150mn ($97mn) will also be set up to ensure workers at existing state-owned coal-fired power plants and associated coal mines have access to new jobs and training or financial assistance during the transition. The Clean Economy Jobs Act sees the government receiving advice from an expert panel on the measures needed to reduce emissions. The government will need to develop and publish sector plans by the end of 2025 with annual progress reports to Queensland's parliament. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Sheinbaum pledges $13bn for Mexican energy transition

17/04/24

Sheinbaum pledges $13bn for Mexican energy transition

Mexico City, 17 April (Argus) — Mexican presidential candidate Claudia Sheinbaum pledged to invest $13.6bn in electricity infrastructure through 2030, with a key focus on Mexico's energy transition. "We are going to accelerate the energy transition with new solar, wind and hydropower projects," Sheinbaum told a meeting of business associations in Merida, Yucatan, on 15 April. Former Mexico City mayor Sheinbaum is ahead of opposition candidate Xochitl Galvez for the 2 June presidential election, according to recent polls. While Sheinbaum is the continuity candidate for President Andres Manuel Lopez Obrador's Morena party, she has been a vocal supporter of clean energy development in contrast to Lopez Obrador's pursuit of conventional power projects and a restriction on private sector renewable energy development. "We are developing a national energy plan not just to 2030 but towards 2050 to coincide with our international climate change commitments," Sheinbaum said. Mexico committed to reduce greenhouse gas emissions by 35pc by 2030 from a 2000 baseline at the Cop 27 climate talks in 2022. Key projects through 2030 include 13.66GW of new power capacity across three hydropower plants, the third and fourth phases of the 1GW Puerto Penasco solar plant, two gas-fired combined cycle plants, cogeneration plants for the Cadereyta and Salina Cruz refineries, and additional wind and solar capacity. In addition to large scale electricity projects, Sheinbaum also committed to a build out of distributed generation, calling for the installation of solar panels in residential and commercial property. But while Sheinbaum pledged her "commitment to reaping the benefits of the historic moment Mexico is seeing in terms of foreign direct investment," she also recommitted to cap private sector electricity participation at 47pc. Foreign direct investment into Mexico hit $36.1bn in the fourth quarter of last year, 22pc above the same period in 2022, but investment into the energy sector has tanked under Lopez Obrador's statist energy policies, according to the latest statistics from the economy ministry. Lopez Obrador's government has largely focused on fossil fuel-based electricity generation, including the construction of new gas-fired combined cycle plants. But despite a commitment to build at least five combined cycle plants during his administration, Sheinbaum confirmed that only the Merida plant is due to launch by the end of this year. Launch dates for the Valladolid, San Luis Colorado, Gonzalez Ortega and Tuxpan plants have been pushed back to 2025-2030. By Rebecca Conan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EPS to register six ammonia-powered newbuilds with SRS

17/04/24

EPS to register six ammonia-powered newbuilds with SRS

London, 17 April (Argus) — Shipping firm Eastern Pacific Shipping (EPS) will register six dual-fuel ammonia powered vessels, due to be delivered from 2026, with the Singapore Registry of Ships (SRS). The commitment is part of an initial agreement with Singapore's Maritime and Port Authority (MPA), vessel classification organisation American Bureau of Shipping (ABS) and Lloyd's Register. EPS said the collaboration with the MPA will extend to supporting crew and seafarer training on the vessels powered by "zero and near-zero emission fuels", in addition to pilot trials of these fuels, and building on the capacity and infrastructure required for ammonia bunkering. Argus assessed the price of green ammonia dob east Asia on a very-low sulphur fuel oil energy density equivalent (VLSFOe) at $2,608.90/t in March, a premium of over $1,975.08/t against VLSFO dob Singapore. Grey ammonia in east Asia was assessed at an average of $829.52/t VLSFOe across March, a premium of $195.70/t to VLSFO dob Singapore. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Malaysia sets up cross-border renewable energy exchange

17/04/24

Malaysia sets up cross-border renewable energy exchange

Singapore, 17 April (Argus) — The Malaysian government is creating the Energy Exchange Malaysia (Enegem) to allow for cross-border "green electricity" sales to neighbouring countries, starting with pilot sales to Singapore. The auctioning process for cross-border sales of clean electricity will begin with a 100MW pilot run utilising the existing connection between peninsular Malaysia and Singapore, announced Malaysia's Ministry of Energy Transition and Water Transformation on 15 April. The auction will be open to renewable energy bidders in Singapore that have import licences issued by Singapore's Energy Market Authority. This pilot phase of 100MW is to "make sure that it works, and then if it does work, hopefully it can be expanded to a gigawatt level," said the chairman of the Energy Commission Malaysia Rashdan Yusof at the Atozero conference in Singapore on 17 April. "On the demand side, there will also be an auction for suppliers of renewable energy into the exchange," said Rashdan, adding that the exchange will aggregate all the renewable energy sector participants, predominantly in the solar sector, and then provide the energy to Singapore, depending on requirements such as load factors, among other things. Malaysia aims to catalyse the development of the Asean regional electricity grid and cross-border energy trading. There are "tremendous discussions" on future interconnections, said Rashdan. Malaysian state-owned utility TNB has signed six agreements with utility counterparts in Thailand, Vietnam and Laos, and has two feasibility studies planned with utilities in Indonesia and Singapore, he said, without providing additional details on these deals. There is great willingness to establish this regional power grid but one of the obstacles is that "each jurisdiction has different energy pricing systems," said Rashdan. There is a significant difference in energy pricing between Singapore and Malaysia, for example, as energy is largely subsidised in Malaysia. "These subsidies, I find, will be a core impediment in terms of the free flow of electrons," he added. "The energy exchange can level the economic and commercial playing field, so that money can flow. Once the money can flow, the electrons will flow. That's the aim of the energy exchange, to have that transparency and market-based system, without the distortion of price subsidies." There are a number of bilateral power agreements in the region, with some even crossing multiple borders, such as the Laos-Thailand-Malaysia-Singapore Power Integration Project, which connects renewable power supplies from Laos to Singapore. But Asean countries need to scale up to multilateral power trading to fully benefit from regional grid interconnectivity. Regional grid optimisation in Asean could cut the net present cost of full decarbonisation by 11pc from $7.2 trillion to $6.5 trillion, according to international classification society DNV's Asia-Pacific regional director for energy systems Brice Le Gallo last year. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Singapore's MPA, IEA unite on maritime decarbonisation

17/04/24

Singapore's MPA, IEA unite on maritime decarbonisation

Singapore, 17 April (Argus) — The Maritime and Port Authority of Singapore (MPA) and the IEA have signed an initial deal to push the transition to zero and near zero emission fuels, while working on technology as well as digitalisation to meet the maritime decarbonisation agenda. The agreement, signed by MPA chief executive Teo Eng Dih and IEA executive director Faith Birol, was announced at the Singapore Maritime Week 2024 (SMW) this week. "Greater international collaboration in maritime and energy industries is critical for international shipping to meet international decarbonisation goals," Teo said. "Shipping is one of the hardest sectors to decarbonise and we need to spur development and deployment of new technologies to slow and then reverse the rise in its emissions," said IEA chief economist Tim Gould. "This will require strong collaboration at a national and international level." Training programmes will be built to support the adoption of new fuels. There will also be partnerships made towards fuel-related projects and initiatives such as the International Maritime Organisation-Singapore NextGen project. The IEA plans to open its first regional co-operation centre in Singapore, which will be its first regional office outside of its headquarters in Paris, France. By Mahua Chakravarty Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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