Japan may meet biomass goal despite fewer new projects

: Biomass, Electricity
21/04/08

Japan is likely to achieve its biomass power generation target in 2030, supported by already approved ample capacity under the country's feed-in-tariff (FiT) scheme. The goal could be reached even despite its forecast of the falling pace of investment in new projects.

The trade and industry ministry (Meti) expects the country's biomass power capacity to increase to 7,230MW in 2030, if the government continues the current support to the biomass power industry. This is within the country's 2030 goal to achieve 6,020-7,280MW of biomass capacity.

The possible 2030 capacity would consist of 4,254MW of woody biomass including palm kernel shell (PKS), 176MW of methane fermentation gas, 492MW of general wastes and others and 2,300MW of any capacities launched before the FiT system took effect in July 2012.

The forecast assumed 2,060MW, or about 40pc of the FiT-approved general woody biomass capacity would start operation by 2030, based on Meti's hearing with industry participants. A total of 22MW of methane fermentation gas and 137MW of general wastes and others, which have so far secured FiT support, are also scheduled for commissioning by 2030.

Japan has approved 8,215MW of biomass power capacity under the FiT scheme by September last year. But the pace of the growth in investment in new biomass power projects is expected to slow over the next decade, pressured by challenges to ensure stable supply of generation feedstock and fuel's sustainability.

Meti has estimated only 457MW of biomass capacity to be approved under the FiT or planned feed-in-premium systems by 2030, of which woody biomass would account for 68pc at 310MW. But the new capacity should increase to 540MW if the government strengthens its efforts to ensuring supply security and sustainability.

Japan plans to expand forests used for biomass fuels to 9mn m³, which is equivalent to 360MW, by 2030, up by nearly 30pc from 7mn m³ in 2019.

The latest biomass forecast does not include the impact of the possible phase-out of insufficient coal-fired power plants, given a lack of details over any scraping schedule, Meti said. It expects that any power plant replacements from coal to biomass could increase after 2030.

Japan's biomass power association has set a target to switch 9,840MW, or 40pc of the potential closure of 24,600MW of ageing coal-fired capacity to biomass-fed capacity during 2030s, although output from biomass-dedicated plants is likely to fall by 20pc compared with coal-fired generators.

By Motoko Hasegawa

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25/06/12

UK ETS emissions fell by 11pc on the year in 2024

Seville, 12 June (Argus) — Emissions in sectors covered by the UK emissions trading scheme (ETS) declined by 11.5pc year on year in 2024, data published by the UK ETS authority show, slowing their decline slightly from the previous year. Stationary installations covered by the UK ETS emitted 76.7mn t of CO2 equivalent (CO2e), down by 12.9pc from 2023, the data show. But this was offset somewhat by a 2pc increase in aviation emissions to 8.99mn t CO2e. Overall UK ETS emissions now have declined for two consecutive years, having fallen by 12.5pc in 2023. Emissions under the scheme rose by 2.5pc in 2022, as a strong rebound in aviation activity following earlier Covid-19 restrictions outweighed declining stationary emissions. Stationary emissions have decreased in every year since the scheme launched in 2021. The majority of the decline in stationary emissions under the UK ETS last year took place in the power sector, where emissions dropped by 18.2pc to 30.6mn t CO2e. The country's last coal-fired plant, Ratcliffe-on-Soar, closed in September last year. And the share of gas-fired output in the generation mix dipped as wind, solar and biomass production and electricity imports edged higher. Industrial emissions also declined, by 8.9pc to 46.1mn t CO2e. The iron and steel sector posted the largest relative drop of 30pc to 6.54mn t CO2e. Emissions from crude extraction fell by 6.4pc to 6.0mn t CO2e, while emissions from gas extraction, manufacture and distribution activities decreased by 8.9pc to 5.3mn t CO2e. The chemicals sector emitted 2.28mn t CO2e, down by 5.2pc on the year. A total of 43 installations were marked as having surrendered fewer carbon allowances than their cumulative emissions since the launch of the UK ETS, as of 1 May. A further two installations failed to report their emissions by the deadline. "Appropriate enforcement action" will be taken against operators that fail to surrender the required allowances, the UK ETS authority said. Overall greenhouse gas emissions across the UK economy dropped by a smaller 4pc last year, data published by the government in March show. This decline also was driven principally by lower gas and coal use in the power and industry sectors, with smaller declines in transport and agriculture, not covered by the UK ETS, and an increase in buildings emissions, also out of the scheme's scope. Emissions under the EU ETS in 2024 dipped by a projected 4.5pc from a year earlier, based on preliminary data published by the European Commission in April. The UK and EU last month announced that they will "work towards" linking the two systems together. By Victoria Hatherick UK ETS emissions mn t CO2e Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EPA seeks end to power plant CO2, mercury rules

25/06/11

EPA seeks end to power plant CO2, mercury rules

Washington, 11 June (Argus) — The US Environmental Protection Agency (EPA) on Wednesday proposed the repeal of CO2 and mercury emissions standards for power plants, its latest steps in an effort to undo many of the regulations enacted by President Donald Trump's predecessors The agency said the repeals will help bring about an end to the "war on much of our domestic energy supply" waged by previous administrations, while saving consumers money "We have chosen to both protect the environment and grow the economy," EPA administrator Lee Zeldin said. "There was this false binary choice made before we got here." Together, the repeals would save more than $1bn/yr for American families, Zeldin said. The standards, finalized last year by EPA during the administration of former president Joe Biden, cover CO2 emissions from existing and new coal-fired power plants and new natural gas-fired units, as well as mercury emissions from coal- and oil-fired power plants. At the time, EPA said the CO2 rules will lead to a 90pc reduction in emissions from coal-fired power plants, while it tightened the Mercury and Air Toxics Standards (MATS) for coal- and oil-fired units by 67pc and included new emissions-monitoring requirements. In addition, the MATS for lignite-fired units were tightened by 70pc to put them in line with the standards for other coal plants. The CO2 rule includes standards for new coal and gas units and guidance for existing coal-fired power plants, the latter of which vary by unit type, size and other factors such as whether a power plant provides baseload or backup power. It does not include standards for existing gas-fired generators, which EPA had proposed in 2023 but last year decided to scrap in favor of a "new, comprehensive approach". While the CO2 regulation would be fully repealed, Zeldin said the agency is proposing to only undo last year's "gratuitous" changes to MATS, such as the new lignite standards. "If finalized no power plant will be allowed to emit more than they do now or as much as they did one or two years ago," he said. In addition to repealing the two Biden regulations, EPA is proposing to undo the Clean Power Plan, developed by the agency during the administration of former president Barack Obama. It would do this in part by reversing a previous agency determination that it could regulate greenhouse gas (GHG) emissions from power plants, and by also finding that those emissions "do not contribute significantly to dangerous air pollution." The Clean Power Plan has never been enforced, and the US Supreme Court in 2022 ruled the agency lacked the authority to regulate CO2 emissions from power plants in the way envisioned by that approach. Unlike during Trump's first term, when EPA first sought to repeal the Clean Power Plan, the agency this time around is not proposing any replacement. The previous replacement rule was struck down by the US District of Columbia Circuit Court of Appeals in 2021. The lack of a new rule could make EPA more vulnerable to legal challenges, which are all but certain to be filed by environmental groups and some states. "This administration is transparently trading American lives for campaign dollars and the support of fossil fuel companies, and Americans ought to be disgusted and outraged that their government has launched an assault on our health and our future," Sierra Club climate policy director Patrick Drupp said. Zeldin said he was not concerned about any potential litigation. "I would say with great enthusiasm and excitement for the future, I know we are absolutely going down the right path," he said. Coal and electric sector groups cheered EPA's proposal. "Today's announcement nullifies two of EPA's most consequential air rules, removing deliberately unattainable standards and leveling the playing field for reliable power sources, instead of stacking the deck against them," National Mining Association president Rich Nolan said. EPA in March included the CO2 and mercury rules among 31 Obama and Biden-era regulations and actions it planned to review and potentially repeal. Since then, the White House has identified more than 60 fossil fuel-fired power plants that will have two extra years to comply with the more-stringent MATS, giving them a reprieve while EPA works to formally repeal the regulations. The March announcement also included a reconsideration of the 2009 endangerment finding for GHG emissions, which underpins all of the major climate regulations EPA issued in recent years. "I don't have anything to announce today as it relates to any proposed rulemaking that may be to come on that topic," Zeldin said. EPA will open a 45-day public comment period on each proposed repeal once they are published in the Federal Register . By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EIA raises US 2026 renewables outlook

25/06/11

EIA raises US 2026 renewables outlook

Houston, 11 June (Argus) — The US renewable energy fleet remains on track to provide an increasing portion of the country's total electricity over the next two years, even with some changes in the US Energy Information Administration's (EIA) latest projections. Renewable energy is on track to supply almost 1.1bn MWh in 2025 and 1.2bn MWh in 2026, enough to account for roughly 25pc and 27pc of all US generation in those years, EIA said Tuesday in its monthly Short-Term Energy Outlook report. The 2025 estimate is less than 1pc lower than the agency's forecast in May, while the 2026 outlook is about 2pc higher. Renewables in 2024 generated almost 948mn MWh, about 23pc of all US generation. EIA attributes the higher share from renewables to projects coming on line through the end of 2026. The agency expects developers to add about 32,500MW of utility-scale solar to the grid this year, which would surpass the record high of 30,000MW in 2024. EIA anticipates about 7,700MW of new capacity from the wind sector this year. Wind capacity in 2024 expanded by about 5,100MW, its lowest showing since 2014. The month-over-month change in the larger renewables outlook corresponds with higher expectations for wind and solar generation next year. Wind farms are now on track to provide about 506mn MWh in 2026, while utility-scale solar farms will generate around 350mn MWh, each about 2pc higher from May's outlook. If the solar projection bears out, it would surpass hydropower in 2025 as the second most prevalent form of renewable generation in the US. In the Electric Reliability Council of Texas (ERCOT) territory, EIA expects non-hydropower renewable generators are on pace to supply nearly 179mn MWh in 2025, down by less than 1pc from last month's outlook. But the 216mn MWh now anticipated from the sector in 2026 marks an almost 10pc increase from May's predictions for the Texas grid. EIA's lowered its predictions for non-hydropower renewables in the New York Independent System Operator's footprint by less than 1pc for 2025 and by 4pc for 2026, to 11.5mn MWh and just under 13mn MWh, respectively. Revisions to other regional forecasts were minimal. EIA increased its expectations for non-hydropower renewables in the areas managed by the PJM Interconnection, ISO-New England and Midcontinent Independent System Operator by less than 1pc for both 2025 and 2026. Renewable energy resources for EIA's purposes include conventional hydropower, wind, solar projects larger than 1MW, geothermal and certain forms of biomass. By Patrick Zemanek Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EQT signs 10-year gas deals with Duke, Southern

25/06/11

EQT signs 10-year gas deals with Duke, Southern

New York, 11 June (Argus) — US natural gas producer EQT has signed 10-year firm supply deals with US utilities Duke Energy and Southern Company for a combined 1.2 Bcf/d of gas beginning in 2027. EQT previously disclosed it struck deals to sell 800mn cf/d and 400mn cf/d of gas to "investment-grade utilities" in the southeastern US, but it has not disclosed the buyers. Those previously unnamed utilities are North Carolina-based Duke, which has contracted for 800mn cf/d from EQT, and Georgia-based Southern, which has contracted for 400mn cf/d, according to people with knowledge of the matter. EQT declined to comment for this story. Duke and Southern did not immediately respond to requests for comment. The deals represent about 20pc of EQT's production and allow EQT to take advantage of contracted capacity it holds on Mountain Valley Pipeline, which ferries gas from West Virginia to Virginia. EQT, the second-largest US gas producer by volume, has been the owner of Mountain Valley Pipeline since acquiring its previous owner Equitrans Midstream in July 2024. The gas supply deals are "two of the largest long-term physical supply deals ever executed in the North American natural gas market," EQT chief executive Toby Rice said in October 2023. The deals also underpin EQT's broader strategy of trying to sell more gas directly to large end users, including utilities, LNG export terminals and data centers, instead of selling into the volatile US spot gas market with the use of financial hedges. The deals also give EQT more exposure to pricing hubs in the southeastern US, where gas trades at a premium to gas sold within the Appalachian production region, where EQT operates. For Duke and Southern, the long-term agreements guarantee available gas supply as the utilities convert coal-fired power generation facilities to gas-fired generators while scrambling to meet surging power demand from planned data centers running artificial intelligence software. Those drivers of gas demand are also behind US pipeline companies Williams, Kinder Morgan and Boardwalk Pipeline Partners trying to build out more gas transportation capacity into the southeast, FactSet manager of natural gas research Connor McLean told Argus . Duke Energy plans to add 5GW of new gas-fired power generation through 2029 across its territory, the company said earlier this month. Duke Energy Carolinas and Southern Company hold most of the contracted capacity on Williams' planned 1.6 Bcf/d Southeast Supply Enhancement expansion of its Transcontinental (Transco) pipeline, which is expected to enter service in the fourth quarter of 2027, US Federal Energy Regulatory Commission filings show. That expansion project will make available new gas transportation capacity from the terminus of the Mountain Valley Pipeline in Virginia to end markets in Virginia, North Carolina, South Carolina, Georgia and Alabama. Duke Energy Carolinas, whose service territory includes North Carolina and South Carolina, holds 1 Bcf/d of contracted capacity on Southeast Supply Enhancement. Southern Company, whose service territory includes Georgia and Alabama, holds 400mn cf/d. By selling into those regions, EQT will be taking 1.2 Bcf/d of gas it was previously selling into the comparatively low-priced Tetco M-2 market and selling it instead into the higher priced Transco zone 4 and 5 South markets. The spot price for gas in the Transco zone 5 South region — which covers gas downstream from compressor station 165 near the terminus of Mountain Valley Pipeline in Virginia to the Georgia-South Carolina border — in 2024 averaged $2.69/mmBtu, and the Transco zone 4 index — spanning Georgia, Alabama and Mississippi — averaged $2.41/mmBtu. The Tetco M-2 receipts index over the period averaged $1.67/mmBtu. The supply deals with Duke and Southern are "the main driver" behind EQT's anticipated corporate gas price differential — or the average price at which it sells its gas relative to the US benchmark price — tightening to around 30¢/mmBtu in 2028 from an anticipated 60¢/mmBtu this year, EQT's Rice said in April. EQT is also in talks with a dozen proposed power projects in the Appalachian production region, he said. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Possible French nuclear reactor defects found: Update

25/06/11

Possible French nuclear reactor defects found: Update

Adds comments from market participants London, 11 June (Argus) — France's EdF has detected possible defects in piping at the 1.5GW Civaux 2 reactor, according to nuclear safety authority ASNR. Tests revealed two "signs" — typically echoes from ultrasound testing — that could indicate a defect, ASNR said. The tests — part of its strategy to treat stress corrosion — are continuing. ASNR said there is no confirmation at this point that the potential faults are evidence of stress corrosion. Stress corrosion is a process by which mechanical stress in the presence of certain chemicals leads to fissures in pipework. The French reactor fleet was heavily affected by this condition in 2021-23, with around a third of the fleet taken off line for inspections and repairs. Civaux 2 is an N4 reactor — there are two at Civaux and another two at Chooz. They were the last reactors built before Flamanville 3, entering service in 2000-02, and the most powerful built in France up to that time. Civaux 2 has been off line for maintenance since 5 April and is scheduled to return on 31 July. It was being defuelled for maintenance and inspection and tests, before having a third of the fuel switched out. The 1.5GW Civaux 1 was the first reactor where stress corrosion faults were discovered, in August 2021. Tests at the other three N4 models in the following months confirmed stress corrosion at all of them. The N4 models — along with a dozen 1.3GW P4 reactors — are particularly vulnerable to stress corrosion, EdF's nuclear and thermic director, Cedric Lewandowski, told a parliamentary commission in 2022. The French power curve rose sharply on Wednesday morning following reports of the possible defects on Tuesday evening. The front-year contract jumped from an assessment of €62.30/MWh yesterday to over €68/MWh in the morning, before falling to around €66/MWh by mid-afternoon. Market participants were divided in their assessment of the actual impact of the news. One suggested that with only minimal information officially confirmed, the price movement may turn out to have been an overreaction. But another suggested the spectre of a return of stress corrosion heightened risk, justifying the premium that French contracts have gained. And a third said that the size of the potential consequences meant the price changes could prove long-lasting. Civaux 2 is still scheduled as of Wednesday evening to return to service on 30 July. Availability from the four N4 reactors is scheduled at 3GW throughout most of this month, rising to 4.5GW from the beginning of July and then to 6GW for the first three weeks of August, before falling again to 3GW from mid-September ( see graph ). Chooz 2 has been unavailable since mid-April for economic reasons, having halted output on 18 April to save fuel for higher demand periods, EdF said. By Rhys Talbot Past and scheduled availability from N4 reactors GW Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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