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Japan remains focused on restarting nuclear reactors

  • : Coal, Electricity, Emissions, Natural gas
  • 21/10/25

Japan will continue to focus on restarting nuclear reactors instead of building new reactors. This may complicate the country's target to realise carbon neutrality by 2050, as it will have little nuclear output by then without new construction.

Japanese premier Fumio Kishida and cabinet ministers on 22 October endorsed a basic energy policy that did not lay out any plans for construction or replacement of nuclear reactors and only focused on the restart of safe reactors. The government did not modify prospects for the nuclear sector from the draft plan that was made in July, despite requests from industry groups such as power and steel to allow new building and replacement, to ensure energy security and reduction of greenhouse gas (GHG) emissions.

Japan typically reviews the country's basic energy policy every three years. The trade and industry ministry (Meti) started discussion on the latest revisions in October last year, forming a key part of efforts to update its April 2030-March 2031 goal to reduce GHG emissions by 46pc from 2013-14 levels and to achieve carbon neutrality by 2050. The cabinet adopted the policy in time for the COP 26 climate change conference that takes place in Glasgow on 31 October-12 November.

Under the latest energy policy, Japan plans to generate 20-22pc of power output from nuclear energy, with 36-38pc from renewables, 41pc thermal power and 1pc from hydrogen and ammonia in 2030-31, which were also unchanged from the draft plans.

The Federation of Electric Power Companies of Japan, a group of major power utilities, expressed regret over the latest energy policy that does not mention new building and replacement of reactors. But it also said the new policy is meaningful, as it still includes a description to continue using necessary nuclear capacity.

Kishida, who named a new cabinet on 4 October, has adopted a positive stance towards the nuclear industry, favouring restarting safe reactors and considering replacing ageing ones. But Kishida also had said the cabinet would review public comments before approving the draft policy.

The government has well reviewed public hearings that was carried out from 3 September-4 October, which included both positive and negative opinions against nuclear energy, an official at Meti said. The current priority is to earn public understanding by restarting safe reactors, the official added.

But Japan will phase out nuclear reactors without any capacity additions. Under the current nuclear safety rules, all reactors are allowed to operate for 40 years with a one-time option to extend their lifespan to 60 years. This suggests that 15 of the existing 33 reactors with a combined capacity of 14,057MW will close by December 2030 and there will be no operational reactors in 2050, assuming a 40-year lifespan.

The future of the nuclear industry also depends on which political party will take majority seats in the 31 October lower house parliamentary election, as most parties have pledged a no-nuclear society. The current ruling liberal democratic party of Japan promotes the restart of safe reactors, without directly prohibiting building reactors. But the second largest the constitutional democratic party has pledged not to allow any new building of reactors in its manifesto.


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25/06/13

EPA proposes record US biofuel mandates: Update

EPA proposes record US biofuel mandates: Update

Updates with new pricing, reactions throughout. New York, 13 June (Argus) — President Donald Trump's administration today proposed requiring record biofuel blending into the US fuel supply over the next two years, including unexpectedly strong quotas for biomass-based diesel. The US Environmental Protection Agency (EPA) proposal, which still must be finalized, projects oil refiners will need to blend 5.61bn USG of biomass-based diesel to comply with requirements in 2026 and 5.86bn USG in 2027. Those estimates — while uncertain — would be a 67pc increase in 2026 and a 75pc increase in 2027 from this year's 3.35bn USG requirement, above what most industry groups had sought. The proposal alone is likely to boost biofuel production, which has been down to start the year as biorefineries have struggled to grapple with uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and higher import tariffs. The National Oilseed Processors Association said hiking the biomass-based diesel mandate to the proposed levels would bring "idled capacity back online" and spur "additional investments" in the biofuel supply chain. The EPA proposal also would halve Renewable Identification Number (RIN) credits generated from foreign biofuels and biofuels produced from foreign feedstocks, a major change that could increase US crop demand and hurt renewable diesel plants that source many of their inputs from abroad. US farm groups have lamented refiners' rising use of Chinese used cooking oil and Brazilian tallow to make renewable diesel, and EPA's proposal if finalized would sharply reduce the incentive to do so. Biofuel imports from producers with major refineries abroad, notably including Neste, would also be far less attractive. The proposal asks for comment, however, on a less restrictive policy that would only treat fuels and feedstocks from "a subset of countries" differently. And EPA still expects a substantial role for imported product regardless, estimating in a regulatory impact analysis that domestic fuels from domestic feedstocks will make up about 62pc of biomass-based diesel supply next year. The Renewable Fuel Standard program requires US oil refiners and importers to blend biofuels into the conventional fuel supply or buy credits from those who do. One USG of corn ethanol generates one RIN, but more energy-dense fuels like renewable diesel can earn more. In total, the rule would require 24.02bn RINs to be retired next year and 24.46bn RINs in 2027. That includes a specific 7.12bn RIN mandate for biomass-based diesel in 2026 and 7.5bn in 2027, and an implied mandate for corn ethanol flat from prior years at 15bn RINs. EPA currently sets biomass-based diesel mandates in physical gallons but is proposing a change to align with how targets for other program categories work. US soybean oil futures surged following the release of the EPA proposal, closing at their highest price in more than four weeks, and RIN credits rallied similarly on bullish expectations for higher biofuel demand and domestic feedstock prices. D4 biomass-diesel credits traded as high as 117.75¢/RIN, up from a 102.5¢/RIN settle on Thursday, while D6 conventional credits traded as high as 110¢/RIN. Bids for both retreated later in the session while prices still closed the day higher. Proposed targets are less aspirational for the cellulosic biofuel category, where biogas generates most credits. EPA proposes lowering the 2025 mandate to 1.19bn RINs, down from from 1.38bn RINs previously required, with 2026 and 2027 targets proposed at 1.30bn RINs and 1.36bn RINs, respectively. In a separate final rule today, EPA cut the 2024 cellulosic mandate to 1.01bn RINs from 1.09bn previously required, a smaller cut than initially proposed, and made available special "waiver" credits refiners can purchase at a fixed price to comply. Small refinery exemptions The proposal includes little clarity on EPA's future policy around program exemptions, which small refiners can request if they claim blend mandates will cause them disproportionate economic hardship. EPA predicted Friday that exemptions for the 2026 and 2027 compliance years could total anywhere from zero to 18bn USG of gasoline and diesel and provided no clues as to how it will weigh whether individual refiners, if any, deserve program waivers. The rule does suggest EPA plans to continue a policy from past administrations of estimating future exempted volumes when calculating the percentage of biofuels individual refiners must blend in the future, which would effectively require those with obligations to shoulder more of the burden to meet high-level 2026 and 2027 targets. Notably though, the proposal says little about how EPA is weighing a backlog of more than a hundred requests for exemptions stretching from 2016 to 2025. An industry official briefed on Friday ahead of the rule's release said Trump administration officials were "coy" about their plans for the backlog. Many of these refiners had already submitted RINs to comply with old mandates and could push for some type of compensation if granted retroactive waivers, making this part of the program especially hard to implement. And EPA would invite even more legal scrutiny if it agreed to biofuel groups' lobbying to "reallocate" newly exempted volumes from many years prior into future standards. EPA said it plans to "communicate our policy regarding [exemption] petitions going forward before finalization of this rule". Industry groups expect the agency will try to conclude the rule-making before November. The proposed mandates for 2026-2027 will have to go through the typical public comment process and could be changed as regulators weigh new data on biofuel production and food and fuel prices. Once the program updates are finalized, lawsuits are inevitable. A federal court is still weighing the legality of past mandates, and the Supreme Court is set to rule this month on the proper court venue for litigating small refinery exemption disputes. Environmentalists are likely to probe the agency's ultimate assessment of costs and benefits, including the climate costs of encouraging crop-based fuels. Oil companies could also have a range of complaints, from the record-high mandates to the creative limits on foreign feedstocks. American Fuel and Petrochemical Manufacturers senior vice president Geoff Moody noted that EPA was months behind a statutory deadline for setting 2026 mandates and said it would "strongly oppose any reallocation of small refinery exemptions" if finalized. By Cole Martin and Matthew Cope Proposed 2026-2027 renewable volume obligations bn RINs Fuel type 2026 2027 Cellulosic biofuel 1.30 1.36 Biomass-based diesel 7.12 7.50 Advanced biofuel 9.02 9.46 Total renewable fuel 24.02 24.46 Implied ethanol mandate 15 15 — EPA Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Jera signs LNG supply agreements with the US


25/06/13
25/06/13

Japan’s Jera signs LNG supply agreements with the US

Singapore, 13 June (Argus) — Japanese power producer Jera said this week that it has signed multiple long-term LNG supply agreements with US partners over the past two months, to procure up to 5.5mn t/yr over 20 years. This includes 2mn t/yr from NextDecade and 1mn t/yr from Commonwealth LNG. It also signed non-binding interim agreements with Sempra Infrastructure for 1.5mn t/yr and with developer Cheniere for 1mn t/yr. The deals offer competitive pricing and flexible contract terms. All supply will be delivered on a fob basis priced against the US' Henry Hub, allowing Jera to optimise shipping routes and respond flexibly to domestic demand and market conditions, the company said. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Law's sunset not an end for Argentina's renewables


25/06/13
25/06/13

Law's sunset not an end for Argentina's renewables

Buenos Aires, 13 June (Argus) — A law meant to increase renewable energy in Argentina will expire at the end of 2025 without meeting its target and with little hope of renewal, but other incentives may still bolster the sector. Law 27191, passed in 2015 to extend earlier legislation, called for renewable sources to reach at least 20pc of Argentina's energy mix by the end of its 2025 expiry. The legislation covers biogas, biomass, solar, wind and hydroelectric plants under 50MW of capacity. Renewables have expanded more than other technologies, increasing to 6,672MW of installed capacity at the end of last year from 381MW in 2003, but still far from the goal. Renewable sources accounted for 15pc of installed capacity at the end of 2024 and covered 16pc of demand, according to the state-owned energy wholesale company, Cammesa. New capacity is being added and renewables should come close to meeting the demand target — renewables covered 21pc of demand in April, according to Cammesa, and 572MW in new solar and wind capacity came online in June alone. But it is unclear what comes next as the government deregulates the economy and pulls back from market intervention. Marcelo Alvarez, head of the solar power committee for Cader, Argentina's renewable energy association, said that there is no indication six months before the law's expiration that it will be extended. "I do not think they are going to extend Law 27191," he said. "The government is not interested in anything that conditions or interferes with the free-market dynamic and [Law] 27191, with its model of quotas with fiscal incentives, goes against its ideological thinking." But the government's change in policy approach could help address some of the main infrastructure and economic problems that hampered the installation of more renewable sources. Argentina has some of the world's best solar and wind potential, according to Alvarez, but it does not have the transmission lines to get power from new plants into the grid. "The system is basically saturated and we are really going to hit a wall if we do not start to build new lines now," said Alvarez. President Javier Milei's government announced in late May a plan for new transmission lines, but the private sector would need to do the work. The plan includes 15 500kV lines that would cover 5,610km and increase the existing grid's scope by 38pc at a cost of $6.6bn. The government is also moving forward with a tender started by the previous administration for a battery energy storage system (BESS) for 500MW, one of the largest in Latin America. The winning bids should be announced in August, according to the most recent timeline. The critical point for any project is financing, which Alvarez said remains difficult and expensive in Argentina despite recent changes. He said that interest rates for a 100MW project in Argentina are around 8pc, while in neighboring Chile they can be as low as 3pc. The Milei government has started to tackle major issues, bringing inflation down to 47.4pc annualized through April from nearly 300pc in 2024, eliminating regulations on financing and exports and reducing currency controls. It also has in place an investment and legal stability mechanism, known as Rigi, to attract large-scale investment for projects over $200mn. It has awarded one power project so far, the 305MW El Quemado solar park planned by state-owned YPF. "The cost and length of financing are major obstacles," Alvarez said. "It is going to take time to lower the cost of capital." By Lucien Chauvin Argentina's renewable power capacity MW Technology End 2024 Apr 25 Wind 4,319 4,342 Solar 1,673 1,909 Small hydro 524 524 Biogas/biomass 155 192 — Cammesa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Limited prompt impact on LNG from Israel-Iran conflict


25/06/13
25/06/13

Limited prompt impact on LNG from Israel-Iran conflict

London, 13 June (Argus) — Israel has halted production at two of its major gas fields and cut pipeline exports to Egypt, but resulting LNG demand may only come later this summer when Egypt builds out its LNG import capacity. Israel's Karish and Leviathan fields have stopped production following a government order issued in the wake of Israeli airstrikes on Iran . Israel's energy ministry today said it expects the minister to declare a state of emergency in the gas sector. Pipeline exports to Egypt and Jordan have since dropped sharply, market participants said, resulting in Egypt cutting gas supply to urea plants as it prioritises gas for power generation. But Egypt has access to only one LNG import terminal at present — the 170,000m³ Hoegh Galleon floating storage and regasification unit (FSRU) at Ain Sukhna. Three carriers were holding offshore today waiting to deliver, and the terminal is importing at maximum capacity already, so Egypt cannot import more than it already is through the facility. And Jordan no longer has LNG import capacity, with the 160,000m³ Energos Eskimo having departed ahead of installation later this summer in Egypt. The FSRU at present is at a shipyard in Egypt's Ain Sukhna, unable to import LNG for either Jordan or Egypt. The gas supply cuts from Israel also come ahead of the region's peak cooling demand season. LNG demand could rise if Israeli gas supply is constrained for an extended period of time. Egypt plans to build out its LNG import terminal capacity to three FSRUs later this summer, as well as an additional temporary FSRU for summer leased from Turkey's Botas, and additional LNG import capacity would allow for stronger imports if Israeli supply remains constrained. Two of these FSRUs — the Energos Eskimo and 174,000m³ Energos Power — are at Egyptian shipyards and could be installed in the coming weeks or months. Egypt is understood to have bought at least 110 cargoes for delivery this year , which is equivalent to just under 8mn t. But the country plans to add about 18mn t/yr of LNG import capacity for its peak summer season, assuming 750mn ft³/d of regasification capacity at three FSRUs. Egypt imported 10.2bn m³, or almost 8mn t, of pipeline gas from Israel last year, according to data from the Joint Organisations Data Initiative (Jodi), meaning that with three FSRUs, Egypt has enough capacity to substitute lost Israeli volumes with LNG imports. But it remains unclear for how long Israeli gas exports will be curtailed. Iran also struck Israeli targets with missiles in early October last year , with Israel's Tamar and Leviathan fields having gone off line temporarily, although production returned after one day. Another potential impact of escalating tensions in the Middle East is disruption to shipping around the Strait of Hormuz, but LNG carriers have continued to transit the route as normal today. The tensions could compound insurance costs, adding to shipping costs from the Middle East. More than 80mn t/yr of LNG supply, mostly from Qatar, has to transit the Strait of Hormuz to reach international delivered markets. By Martin Senior Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Exomad Green starts building Bolivian biochar plant


25/06/13
25/06/13

Exomad Green starts building Bolivian biochar plant

London, 13 June (Argus) — Bolivian biochar producer Exomad Green has started building a 128,000 t/yr biochar production plant in the country's Guarayos region, which it expects to achieve 320,000 t/yr of CO2 removal (CDR) once fully operational. The facility will be developed in two phases. Half of the total capacity will be developed in phase one, which is scheduled to be fully operational by mid-2026, with the second phase expected to start in 2026. Exomad did not provide a timeline for the scheduled end of the latter phase. The firm plans to distribute biochar to indigenous communities and farmers to restore degraded soils, enhance food production and improve resilience to climate stress, through its "biochar donation program" it said, without specifying what share of the end product would be allocated for this program. Exomad signed a 10-year biochar CDR agreement with technology giant Microsoft to remove 1.24mn t of CO2 in late May. The contract has embedded digital monitoring, reporting and verification carried by Germany-based Carbonfuture to enable third-party verification and certification under crediting platform Puro.earth's biochar methodology. The parties had previously also signed a deal for 32,000t of biochar CDR credits in December 2023. Exomad estimates it had sequestered over 120,000t of CO2 by April through its biochar operations. The firm already operates two biochar plants in Concepcion and Riberalta, each with 60,000 t/yr of capacity. The company uses hardwood forestry residues as feedstock to produce biochar with up to 86pc fixed carbon content through pyrolysis. Exomad Green is a unit of Exomad, which is the largest wood exporter in Bolivia. By Erisa Senerdem Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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