Generic Hero BannerGeneric Hero Banner
Latest market news

Australia elevates EVs, solar in GHG reduction plan

  • : Electricity, Emissions, Hydrogen, Metals
  • 21/11/03

The Australian federal government has elevated the role of electric vehicles (EVs) and low-cost solar technology in attaining its ambition of achieving net-zero greenhouse gas (GHG) emissions by 2050. Low-cost solar will also be used to underpin plans to develop a domestic hydrogen industry using renewable energy.

Australia has updated its GHG emissions reduction plan, adding three more areas of focus. It will develop polices and provide state financing for lowering the cost of solar technology, support EV technology and deployment, as well as provide timelines for parity for the costs of solar and EV with prevailing technology.

Battery electric vehicles (BEVs) and fuel-cell electric vehicles (FCEVs) will become price competitive over the next 5-10 years as the world's largest vehicle manufacturers increasingly commit to their development, the government's latest report said.

"Investment is required to prepare for a rapid increase in the number of consumers choosing BEVs and FCEVs, and to ensure enough charging and refuelling stations are made available to meet demand," it said.

The report did not provide any target for EV deployment in Australia. But a separate government report last week has EVs accounting for 30pc of new car sales in Australia by 2030 from less than 1pc in 2019 under a baseline scenario and 61pc by the end of the decade under a high-technology scenario.

Road transport fuels form the bulk of Australia's near 1mn b/d demand, most of which is imported. Transport has also been one of the fastest increasing sources of its GHG emissions, up by almost two-thirds during 1990-19, according to its latest audited emissions accounts filed with the UN.

Australia has not joined other countries in setting a timeline to phase out internal combustion engine vehicles. But including EVs as part of its emissions reduction targets marks a shift for Australia's current government that has no plans to reduce its reliance on fossil fuel exports such as LNG and thermal coal. It also noted that the country could benefit economically from the energy transition as Australia is a significant producer of copper, nickel and lithium that are used in batteries.

Cutting production costs

Canberra has focused on lowering solar power costs, driven by a strategy to cut production costs for hydrogen made from renewable energy, also known as green hydrogen. Its Solar 30 30 30 plan aims to achieve 30pc efficiency at A$0.30 ($0.23) per installed watt by 2030.

"Getting solar power down to less than A$15/MWh, a third of today's cost, will be critical to reducing electricity sector emissions, but also in unlocking the potential of other low-emissions technologies like clean hydrogen," Australian energy minister Angus Taylor said in a speech at the UN Cop 26 climate conference in the UK's Glasgow.

Ultra low-cost clean electricity is also key to meeting the goals for Australian's other ambitions of lowering GHG emissions such as low-emissions steel and aluminium, along with electrical energy for storage for firming power generation.

Australia has ambitions to emerge as hydrogen producer and exporter. It aims to use green hydrogen to aid the decarbonisation of other sectors such as heavy haulage fuel cell EVs, ammonia as a chemical feedstock for making fertilizer and fuel for shipping and co-firing for electricity generation in countries like Japan.


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.

25/02/04

Tariffs not only US threat to Canada canola oil

Tariffs not only US threat to Canada canola oil

New York, 4 February (Argus) — Canadian canola farmers have reason to celebrate a last-minute deal to at least delay US tariffs. Changing US biofuel policies, however, could dim their excitement. The two countries agreed Monday to pause for a month 25pc tariffs on most Canadian imports, including agricultural products like canola oil. While best known for its use in food, canola oil has become an increasingly important ingredient in US biofuel production. Canada exported 800,000 lbs of crude canola oil to the US in 2021, before US regulators allowed more canola-based fuels to qualify for a biofuel mandate, but more than three times that total over just 11 months in 2024 according to customs data. Canola oil from all origins made up around 12pc of the US biomass-based diesel feedstock mix last year. The challenge for Canada is that policies in the US that helped cement canola oil's role in biofuel production are increasingly encouraging producers to use other feedstocks. The mere threat of tariffs could speed that trend along. A long-running US tax credit for blenders of biomass-based diesel expired last year and was replaced by the Inflation Reduction Act's "45Z" credit, which requires fuels to meet an initial carbon intensity threshold and then ups the subsidy as emissions fall. This shift was always expected to benefit waste feedstocks over crops, which incur a carbon penalty for land changes and fertilizer use. The clear message to refiners — both from the US government and from California regulators that run the state's influential low-carbon fuel standard — has been to diversify beyond vegetable oils. But an updated emissions model released by the Department of Energy last month surprised some in the industry by assessing the default carbon intensity of canola-based fuels as too high to automatically qualify for 45Z. Although fuels from soybean oil generally earn some credit, diesels made from canola oil could go from earning $1/USG last year to nothing this year. Before even factoring in potential tariffs, Canadian canola oil appears less attractive for refiners than even competing crops. Guidance on 45Z is preliminary , meaning canola crushers can push for final rules that are less restrictive. But energy lobbyists say privately that they do not expect the new administration to act with urgency to implement an incentive created by Democratic lawmakers and oriented around climate change. And many Republicans' concern with the credit is not that it is too harsh on canola — but that it is too permissive of foreign feedstocks they see as hurting US crop demand. The introduction of 45Z could simultaneously leave Canadian biofuel producers less able to backfill canola oil demand if US buyers look elsewhere. The credit can only be claimed by US producers, cutting off subsidies for imported fuels. At the same time, 45Z does not require fuel to be consumed stateside — meaning that US biorefineries can send subsidized fuel abroad to chase additional incentives Canada offers for biofuel usage. "The on-again off-again status of US tariffs and Canada's counter-tariff response do not alter the bare economics of biofuel production between jurisdictions when one has an exportable tax credit and the other does not," said Fred Ghatala, president of Advanced Biofuels Canada. The future of renewable diesel production in Canada, previously expected to grow significantly to the benefit of farmers, is in doubt. ExxonMobil's Canadian subsidiary is on track to open a 20,000 b/d renewable diesel plant this year, but other companies collectively representing more production capacity are wavering. Plans for an integrated canola crush and 15,000 b/d renewable diesel facility in Saskatchewan were paused last month. And it is unclear if Braya Renewable Fuels' 18,000 b/d biorefinery in Newfoundland is running now or if Tidewater Renewables' 3,000 b/d British Columbia plant will run after March. If demand from Canadian biorefineries remains limited, some traders expect that Trump's tariff threats could divert more canola oil previously bound for the US to Europe . But there is no perfect alternative to the US market, which accounted for 91pc of all Canadian canola oil exports in 2023 according to the US Department of Agriculture. "There is logistics capacity to sell canola oil, seed, or meal abroad. That's certainly an option," said Chris Vervaet, executive director of the Canadian Oilseed Processors Association. "The best option though is to continue to maintain and grow our trade relationship with our most important trade partner, which is the United States." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US tariffs to push automotive prices higher


25/02/03
25/02/03

US tariffs to push automotive prices higher

Houston, 3 February (Argus) — US tariffs on Canada and Mexico would likely lift automotive production costs noticeably higher as automakers and their suppliers rely on multiple cross-border shipments. US president Donald Trump said over the weekend he would enact 25pc tariffs on imports from Canada effective 4 February, but delayed Mexican tariffs until at least March . An all-encompassing tariff on the two and potential retaliatory tariffs could severely hamper regional automotive producers, which draw from cross border flows for both raw materials including finished steel and aluminum as well as integral parts and components. The tariffs are meant, in part, to drive more manufacturing back into the US — as General Motors chief executive Mary Barra said her company would likely do should the tariffs be imposed on Canada and Mexico. Other automotive manufacturers could possibly follow suit in order to escape the increased costs associated with tariffs. But shifting operations from one country to another would be costly and time consuming. Some manufacturers produce parts for the same vehicle on different sides of the border, meaning even a car or truck assembled in the US could see its costs increase if it relies on parts made by the same company at a Canadian factory. Completed vehicles The US imported 2.855mn of its smaller passenger vehicles from Mexico and Canada between January and November of 2024, according to customs data, or about 41pc of all such vehicles. The two nations also accounted for the import of 1.16mn heavier vehicles designed for the transport of goods in the same period, or about 95pc of all of those vehicles. Mexico alone sent 83,201 tractors to the US for the year-to-date 2024, roughly 39pc of the US total. Automotive parts Cross border flows of parts and accessories could be curtailed even more as they likely will have to cross in and out of the US in multiple stages, potentially receiving multiple 25pc tariff hits. The US imported 3.4bn motor vehicle parts and accessories from the two countries or about 38pc of all such imports, and exported 3,073t of these parts back across the border to Canada and Mexico. Nearly 90pc of the US' exports of spark-ignition piston engines, or 3.57mn units, were sent to Canada and Mexico, while 30pc of all US imports of such engines, or 2.26mn units, come from the two countries. The US imported roughly 82pc or 43,582t of its cast-iron parts for internal combustion engines from Mexico. Metal mounting and fitting imports for automobiles from Mexico alone represented 73pc of US totals, with the US in return exporting 64pc of such products back to Mexico. Canada took in 24pc or 29,035 metric tonnes (t) of the product. The US acquired 40pc or nearly 36,000 of larger auto bodies and chassis from the two nations in 2024, while sending 57.5pc of its exports or 21,553 back across the same borders. Alternatives limited Although some alternative import sources do exist, many of these auto plants are located inland of key receiving ports and have closely tied operations that could require multiple stagged parts replacements. Some vehicles are estimated to cross US borders into Canada and Mexico and back as many as seven or eight times before final assembly, according to a 2021 Congressional Research Service paper. China would be a major alternative supplier for US or Canadian automotive parts in multiple cases, including for internal combustion engines. The US imported $87.1bn in light vehicles from Canada and Mexico and $77.5bn in automotive parts in 2022, according to a 2023 US International Trade Commission report. Any tariff could notably sting regional automotive producers just climbing out of multi-year low sales levels. US total vehicle sales hit a seasonally adjusted annual rate of 17.22mn in December, the highest level since May of 2021, according to Federal Reserve data. By Cole Sullivan and Zach Schumacher US automotive imports from Canada count Jan-Nov 2024 Jan-Nov 2023 Diff ±% Share of total volumes Full vehicles, bodies, and chassis Tractors 1,612 1,395 217 15.60% 0.80% Motor vehicles 915,408 1,138,494 -223,086 -19.60% 13.00% Motor vehicles for transport of goods 152,232 150,279 1,953 1.30% 12.50% Special-use vehicles (ex. firetrucks) 1,826 1,554 272 17.50% 53.40% Work trucks (ex. airport luggage vehicles) 1,595 1,656 -61 -3.70% 8.00% Vehicle chassis fitted with engines 1,821 1,622 199 12.30% 14.60% Vehicle bodies 8,896 8,584 312 3.60% 11.50% Spark-ignition engine parts 705,337 924,439 -219,102 -23.70% 9.40% Compression-ignition engine parts 3,198 3,759 -561 -14.90% 0.10% Parts and accessories 1.23bn 1.28bn -48mn -3.80% 13.70% — US Census Bureau US automotive imports from Mexico count Jan-Nov 2024 Jan-Nov 2023 Diff ±% Share of total volumes Full vehicles, bodies, and chassis Tractors 83,201 108,267 -25,066 -23.20% 38.90% Motor vehicles 1.94mn 1.79mn 151,439 8.50% 28.00% Motor vehicles for transport of goods 1,007,433 919,850 87,583 9.50% 82.40% Special-use vehicles (ex. firetrucks) 35 70 -35 -50.00% 1.00% Work trucks (ex. airport luggage vehicles) 6,513 4,214 2,299 54.60% 32.50% Vehicle chassis fitted with engines 4 7 -3 -42.90% <0.1% Vehicle bodies 25,285 15,922 9,363 58.80% 32.60% Spark-ignition engine parts 1,551,874 1,415,311 136,563 9.60% 20.60% Compression-ignition engine parts 1,526,994 1,943,567 -416,573 -21.40% 68.60% Parts and accessories 2.17bn 2.18bn -8,121,686 -0.40% 24.30% — US Census Bureau Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US delays Mexico tariffs by a month: Update


25/02/03
25/02/03

US delays Mexico tariffs by a month: Update

Adds comments from press conference, White House response, historic context. Mexico City, 3 February (Argus) — The US has agreed to postpone the 4 February implementation of 25pc tariffs on Mexican goods by one month to allow more time for negotiations, President Claudia Sheinbaum said today. Under an agreement with the US, Mexico will immediately reinforce its border with the US with 10,000 national guard troops to limit drug trafficking into the US, with a specific focus on fentanyl, Sheinbaum posted on social media platform X. The US pledged to take stronger action to curb the flow of high-powered firearms into Mexico, she said. The pause will allow "Mexico time to demonstrate good results for the US people and our people" on key security concerns, Sheinbaum said. US president Donald Trump confirmed the tariff delay in a social media post, saying there would be negotiations in the coming weeks with Mexican officials and US secretary of state Marco Rubio, secretary of the treasury Scott Bessent and secretary of commerce Howard Lutnick. The White House praised Mexico's willingness to respond positively to the tariff threats, while characterizing the Canadian response as [a] misunderstanding. "The good news is that in our conversations over the weekend, one of the things we've noticed is that Mexicans are very, very serious about doing what President Trump said," White House National Economic Council director Kevin Hassett said in a broadcast interview. Canada had "misunderstood the plain language of the executive order and they're interpreting it as a trade war." Trump said this morning that he "looks forward to negotiations" with Sheinbaum to reach a deal between the countries. He is also talking to Canadian premier Justin Trudeau later today. The announcements today do not address Trump's complaints of a trade deficit with Mexico, which Sheinbaum said during a press conference today the US misinterprets as a negative. Both the US and Mexico benefit from the region becoming more competitive, she said. Mexico will also keep its retaliatory tariffs on the table: "We will save Plan B for later, if necessary," Sheinbaum said. The current tensions are similar to those from 2019, when Trump threatened to impose 5pc tariffs on all Mexican goods. He relented when former president Andres Manuel Lopez Obrador said Mexico would deploy 21,000 national guard troops to contain the flow of migrants toward the US. If the tariffs were implemented, it would disrupt the energy trade between the US and Mexico. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Mexico also imports much of its road fuels and LPG from the US. But the country is unlikely to hit these goods with retaliatory tariffs, according to market sources. By Antonio Gozain and Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US manufacturing expands in Jan after 26 months: ISM


25/02/03
25/02/03

US manufacturing expands in Jan after 26 months: ISM

Houston, 3 February (Argus) — US manufacturing activity expanded in January after 26 consecutive months of contraction, according to the Institute for Supply Management's latest factory survey. The manufacturing purchasing managers' index (PMI) registered 50.9 in January, up from 49.2 in December. The new orders index rose to 55.1 last month from 52.1 in December, marking a third month of expansion. Readings above 50 signal expansion while readings under that point to contraction. Production rose to 52.5 last month from 49.9 the prior month. Employment rose to 50.3 from 45.4. "Demand clearly improved, while output expanded and inputs remained accommodative," ISM said. "Demand and production improved; and employment expanded." US factory activity expanded robustly in the first two years after Covid-19 hit, then contracted for the subsequent two years, even as growth in services activity, the largest part of the economy, maintained the overall economy in expansion territory. The new export orders index rose by 2.4 points to 52.4 and the imports index rose by 1.4 points to 51.1. The prices index rose to 54.9 from 52.5, with aluminum, freight rates, natural gas, and scrap among gainers. "Prices growth was moderate, indicating that further growth will put additional pressure on prices," ISM said. The inventories index fell by 2.5 to 45.9, signaling contracting inventories. Backlog of orders fell by one point to 44.9, indicating order backlogs contracted for the 28th consecutive month after 27 months of expansion. Supplier deliveries rose by 0.8 to 50.9, suggesting marginally slower deliveries. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US delays Mexico tariffs by a month


25/02/03
25/02/03

US delays Mexico tariffs by a month

Mexico City, 3 February (Argus) — The US has agreed to postpone the implementation of 25pc tariffs on Mexican goods for one month, "allowing Mexico time to demonstrate good results for the US people and our people" on key security concerns, President Claudia Sheinbaum said today. Under the agreement Mexico will immediately reinforce its border with the US with 10,000 national guard troops to prevent drug trafficking into the US, with a specific focus on fentanyl, Sheinbaum posted on social media platform X following a conversation with President Donald Trump. The US pledged to take stronger action to curb the flow of high-powered firearms into Mexico, she said. US president Donald Trump confirmed the tariff delay in a social media post, saying there would be negotiations in the coming weeks with Mexican officials and US secretary of state Marco Rubio, secretary of the treasury Scott Bessent and secretary of commerce Howard Lutnick. The tariffs were originally set to take effect on 4 February. By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

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