Japan mulls thermal efficiency target rules

  • : Coal, Electricity
  • 20/10/21

Japan is considering revising regulations for a minimum heat efficiency for the country's thermal power generation plants, to accelerate the phasing out of ageing and inefficient coal-fired capacity.

The working group to mull regulatory measures to phase out inefficient coal-fed plants by 2030, created in August under the trade and industry ministry (Meti), has proposed to set a new thermal efficiency target exclusive to coal-fired power plants although details of efficiency levels and collateral measures remained unclear.

Several commission members have voiced support for the proposal. But there are also concerns that this could result in over-regulation.

Meti has defined the minimum heat efficiency levels for coal, LNG and oil-fired power plants. The level should be at 41pc for existing coal-fired power plants and 42pc for new plants. Efficiency for LNG-fed plants should exceed 48pc for existing plants and 50.5pc for new facilities, while oil burning is encouraged to have at least 39pc efficiency for both existing and new plants.

But the current energy saving law lumps all thermal power units, only requiring electricity producers to achieve an average 44.3pc of heat efficiency. This means a power firm could achieve the target by using advanced, highly efficient gas-fired unit even if it continues using an inefficient coal-fed unit.

The working group has pointed out the current law does not necessarily guarantee the effectiveness of improving coal-fired power generation efficiency. Only 24 of 46 firms that operate coal-fired power plants have so far achieved 41pc efficiency, according to the Meti survey.

Meti in July proposed starting discussions to scrap inefficient coal-fired power plants, to help the country meet a 2030 goal to cut greenhouse gas emissions by 26pc from 2013-14 levels. The phase-out is targeted at units that are not equipped with the latest clean coal technology such as coal gasification combined-cycle and ultra-super critical infrastructure. This implies Japan may scrap or mothball 25.3GW of inefficient coal-fired units, or about half of the existing coal-fired capacity.

Japan's power sector aims to reduce carbon dioxide emissions by 35pc from 2013-14 levels to 0.37 kg/kWh by 2030, by complying with an energy saving law. Meti also requires power firms that sell more than 500 GWh/yr of electricity to observe a "sophisticated method of energy supply structures" law, to have a minimum 44pc of their fuel from non-fossil sources by 2030, to achieve the carbon dioxide reduction goal.

Carbon dioxide emissions by the country's power firms totalled 345mn t in 2019-20, equivalent to 0.444 kg/kWh, according to preliminary data released by the electric power council for a low carbon society, a group of 62 Japanese power producers. The 2019-20 emissions were lower by 7.3pc from 372mn t, or 0.463 kg/kWh, in 2018-19.


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24/04/26

Start-ups to help Total keep output stable in 2Q

Start-ups to help Total keep output stable in 2Q

London, 26 April (Argus) — TotalEnergies said it expects its oil and gas production to hold broadly steady in the second quarter as planned maintenance is partially offset by rising output from new projects in Brazil and Denmark. The company expects to average 2.4mn-2.45mn b/d of oil equivalent (boe/d) in April-June, compared with 2.46mn boe/d in the previous three months and 2.47mn boe/d in the second quarter of 2023. Production is being supported by the restart of gas output from the redeveloped Tyra hub in Denmark late last month and the start of the 180,000 b/d second development phase of the Mero oil field on the Libra block in Brazil's Santos Basin at the beginning of the year. TotalEnergies first-quarter output was flat compared with the previous three months but 2pc lower than a year earlier as a result of Canadian oil sands divestments. The company reported a robust set of first-quarter results today, broadly in line with analysts' expectations. Profit for the first three months of 2024 was $5.7bn, compared to $5.6bn in the same period last year. Adjusted profit — which takes into account inventory valuation effects and special items — came in at $5.1bn, down by 22pc on the year but slightly ahead of the consensus of analysts' estimates of $5bn. Adjusted operating profit from the firm's Exploration & Production business was down by 4pc year-on-year at $2.55bn, driven in part by lower natural gas prices. The Canadian oil sands asset sales weighed on the segment's production but this was partly compensated by start-ups. As well as Mero 2, the Akpo West oil project in Nigeria started production during the first quarter. TotalEnergies' Integrated LNG segment saw a 41pc year-on-year decline in its adjusted operating profit to $1.22bn in January-March. The company said this reflects lower LNG prices and sales. But while its LNG sales for the quarter fell by 3pc in year-on-year terms, its LNG production was greater by 6pc. TotalEnergies achieved an average $78.9/bl for its liquids sales in the first quarter, an improvement on $73.4/bl a year earlier. But the average price achieved for its gas sales was 43pc lower on the year at $5.11/mn Btu. In the downstream, the company's Refining & Chemicals segment's first-quarter adjusted operating profit was $962mn in January-March, down by 41pc on the year but 52pc higher than the preceding quarter. TotalEnergies attributes the quarter-on-quarter rise to higher refining margins and a rise in refinery throughput . For the second quarter, it expects refinery utilisation rates to be above 85pc, compared with 79pc in the first quarter, boosted by the restart of 219,000 b/d Donges refinery in France. Total's Integrated Power segment continued to improve, registering a quarter-on-quarter and year-on-year increased of 16pc and 65pc respectively in its adjusted operating profit to €611mn. Net power production increased 14pc year-on-year to 9.6 TWh, while the company's portfolio of installed power generation capacity grew 54pc to 19.5GW. Total's cash flow from operations, excluding working capital, was down by 15pc on a year earlier at $8.2bn in the first quarter. The company has decided to raise its dividend for 2024 by 7pc to €0.79/share and plans a $2bn programme of share buybacks for the second quarter. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Indonesia’s UNTR raises 1Q coal production, sales


24/04/25
24/04/25

Indonesia’s UNTR raises 1Q coal production, sales

Manila, 25 April (Argus) — Indonesian coal services and heavy equipment manufacturer United Tractors' (UNTR) coal output and sales increased in the January-March quarter from a year earlier, partly helped by steady demand and favourable weather conditions. UNTR's mining services company Pamapersada Nusantara (PAMA) reported that coal production for its contracted clients was at 32.3mn t in the first quarter, a 21pc increase from a year earlier. Overburden removal at the contracted mines rose by 17pc on the year to 286.3mn bank m³ (bcm). Thermal coal sales from UNTR's own Tuah Turangga Agung (TTA) mine rose by 40pc to 3.2mn t during the quarter from a year earlier. UNTR increased sales volumes to partly offset the impact of the downtrend in prices in the market on its financials. UNTR did not give the production data for its own mine but added that the output should remain stable in the next quarter on forecasts of dry weather ahead. The company's heavy equipment sales fell by 37pc year-on-year to 1,126 units. This was because of a drop in demand in the domestic market following the fulfilment of backlogged deliveries in 2023, it said. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Barge delays at Algiers lock near New Orleans


24/04/24
24/04/24

Barge delays at Algiers lock near New Orleans

Houston, 24 April (Argus) — Barges are facing lengthy delays at the Algiers lock near New Orleans as vessels reroute around closures at the Port Allen lock and the Algiers Canal. Delays at the Algiers Lock —at the interconnection of the Mississippi River and the Gulf Intracoastal Waterway— have reached around 37 hours in the past day, according to the US Army Corps of Engineers' lock report. Around 50 vessels are waiting to cross the Algiers lock. Another 70 vessels were waiting at the nearby Harvey lock with a six-hour wait in the past day. The closure at Port Allen lock has spurred the delays, causing vessels to reroute through the Algiers lock. The Port Allen lock is expected to reopen on 28 April, which should relieve pressure on the Algiers lock. Some traffic has been rerouted through the nearby Harvey lock since the Algiers Canal was closed by a collapsed powerline, the US Coast Guard said. The powerline fell on two barges, but no injuries or damages were reported. The wire is being removed by energy company Entergy. The canal is anticipated to reopen at midnight on 25 April. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Baltimore to temporarily open 4th shipping channel


24/04/24
24/04/24

Baltimore to temporarily open 4th shipping channel

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EU adopts sustainability due diligence rules


24/04/24
24/04/24

EU adopts sustainability due diligence rules

Brussels, 24 April (Argus) — The European parliament has formally approved a Corporate Sustainability Due Diligence Directive (CSDDD), which will require large EU companies to make "best efforts" for climate change mitigation. The law will mean that relevant companies will have to adopt a transition plan to make their business model compatible with the 1.5°C temperature limit set by the Paris climate agreement. It will apply to EU firms with over 1,000 employees and turnover above €450mn ($481mn). It will also apply to some companies with franchising or licensing agreements in the EU. The directive requires transposition into different EU national laws. It obliges member states to ensure relevant firms adopt and put into effect a transition plan for climate change mitigation. Transition plans must aim to "ensure, through best efforts" that business models and company strategies are compatible with transition to a sustainable economy, limiting global warming to 1.5°C and achieving climate neutrality by 2050. Where "relevant", the plans should limit "exposure of the company to coal-, oil- and gas-related activities". Despite a provisional agreement, EU states initially failed to formally approve the provisional agreement reached with parliament in December, after some member states blocked the deal. Parliament's adoption — at its last session before breaking for EU elections — paves the way for entry into force later in the year. Industry has obtained clarification, in the non-legal introduction, that the directive's requirements are an "obligation of means and not of results" with "due account" being given to progress that firms make as well as the "complexity and evolving" nature of climate transitioning. Still, firms' climate transition plans need to contain "time-bound" targets for 2030 and in five-year intervals until 2050 based on "conclusive scientific" evidence and, where appropriate, absolute reduction targets for greenhouse gas (GHG) for direct scope 1 emissions as well as scope 2 and scope 3 emissions. Scope 1 refers to emissions directly stemming from an organisation's activity, while scope 2 refers to indirect emissions from purchased energy. Scope 3 refers to end-use emissions. "It is alarming to see how member states weakened the law in the final negotiations. And the law lacks an effective mechanism to force companies to reduce their climate emissions," said Paul de Clerck, campaigner at non-governmental organisation Friends of the Earth Europe, pointing to "gaping" loopholes in the adopted text. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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