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First auction for renewable fuels imminent: H2Global

  • : Biofuels, E-fuels, Fertilizers, Hydrogen
  • 22/10/13

The German government-backed H2Global initiative will launch auctions for imports of renewable ammonia, e-methanol and sustainable aviation fuel in the "next couple of days or weeks at the latest", according to its managing director Timo Bollerhey.

H2Global will launch the first auction once it has received responses from the government on outstanding questions, Bollerhey said at the World Hydrogen Congress in Rotterdam.

Through the scheme, Germany aims to import renewable hydrogen — initially as derivatives — under 10-year contracts and then sell it on to consumers through shorter-term deals, while covering the likely price differentials. The first offtake deals are likely to be agreed in the first quarter of 2023, according to Bollerhey.

While the first auction round will focus on derivatives, hydrogen itself will probably be covered by the next tender procedure, Bollerhey said. He stressed that this is in the hands of the German government which is funding the H2Global initiative, but said first volumes could be available in 2024.

Berlin has provided initial funding of €900mn ($870mn), which H2Global plans to split roughly evenly between the three different products that it will seek in the first auction. But "€900mn is a drop in the ocean and just the start of more to come… we will not be able to make everybody happy with that first round", Bollerhey said.

In its 2023 draft budget, the German government has already earmarked €3.6bn that can be spent by H2Global in future years.

Bollerhey said H2Global's model has garnered strong international interest and has been widely discussed at hydrogen conferences stretching from India to Australia and South America. Last week the Netherlands announced plans to contribute funding to H2Global.

"Hopefully it's going to become a European instrument," Bollerhey said. He noted that the initial round will focus on imports from outside the EU — as this was stipulated by Germany when it allocated the funding — but said the mechanism could eventually be applied to help kickstart production within the bloc, for example from "Spain or Portugal".

Bollerhey stressed that the initiative was not designed to take on the role of a midstream firm and that Hintco, the purpose-built company it has created, will be dissolved after 12-13 years once it has created the market for others. The company will also not provide transport or storage of the fuels, which will be left to those on the supply or demand side of the transactions.


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24/07/15

Pakistan urea demand drops on lower wheat prices: NFDC

Pakistan urea demand drops on lower wheat prices: NFDC

Amsterdam, 15 July (Argus) — Urea consumption in Pakistan fell to 483,000t in June, down by 21pc on a year earlier, with the country's National Fertilizer Development Centre (NFDC) attributing the drop to lower wheat prices and delayed sowing in the summer months. June output fell to 483,000t from 610,000t in the month last year and 737,000t in June 2022. Urea consumption in April-June was down by 18pc at 1.21mn t. The NFDC attributed the fall to lower wheat prices and the delayed sowing of crops in the summer Kharif season, which runs from April-September. But the NFDC did note that urea offtake may pick up in the rest of the season. The dire situation facing farmers has prompted Pakistan's government to impose an indefinite ban on wheat imports into the country, as of 12 July , in a bid to stabilise domestic wheat prices. This may subsequently encourage local urea purchases. The lacklustre consumption so far this Kharif season has eased pressure on urea supplies, with countrywide stocks unexpectedly climbing slightly through one of the peak-demand months of the summer season, up by 6,000t to 231,000t. Domestic production of 497,000t also added some support to inventories last month, but this was down from 548,000t in June last year. Pakistan's state-owned importer TCP has issued a tender to buy 150,000t of urea, closing on 29 July, which will add further support in August-September when cargoes are set to arrive. But the country is still facing a potential tightness of urea supply in July-August, should consumption levels pick-up soon and the import cargoes ship from origins with a long sailing time. The NFDC is projecting consumption of 750,000t and 615,000t in July and August, respectively, which may leave stocks as low as 29,000t by August, without factoring in imports. The cargoes must arrive in Pakistan by 25 September, TCP's tender document stipulated. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Germany's Aurubis copper smelter back from maintenance


24/07/12
24/07/12

Germany's Aurubis copper smelter back from maintenance

London, 12 July (Argus) — Germany's Aurubis today announced that its Hamburg copper smelter returned to service on 11 July from the largest maintenance shutdown in the company's history that began 7 May. A restart is now under way following the €95mn 60-day maintenance that included an overhaul of the flash smelter, installation of heat exchangers in the contact acid plant, as well as the installation of a tap hold drill and tamping machine for improved safety of copper slag tapping. Hydrogen-ready anode furnaces were also installed as measures to improve sustainability. Investments in automation are set to improve efficiency and extend the frequency of planned maintenance rounds to three years from two. The Hamburg smelter's outage has exacerbated sulphuric acid tightness in Europe , and the operational restart is expected to provide some relief to the market. This comes in addition to the lack of availability of molten sulphur in the region, leading to shortages of sulphur burnt acid , which has prompted some consumers to replace burnt acid with smelter acid, lifting demand. Aurubis produced 1.19mn t of sulphuric acid during the first six months of the 2023-24 financial year (October-March), up by 1pc on the same period a year earlier. Output at Aurubis' Hamburg smelter rose by 11pc to 512,000t in the period, while output from the Pirdop smelter saw a 6pc decline on the period to 679,000t . For the first three months of the year, Aurubis produced 598,000t of acid, unchanged from the same quarter of 2022-23, as increased output at its Hamburg smelter offset a decline from Bulgaria's Pirdop plant. Production at Hamburg totalled 258,000t from January-March. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brasil e Bolívia assinam acordo para fertilizantes


24/07/12
24/07/12

Brasil e Bolívia assinam acordo para fertilizantes

Sao Paulo, 12 July (Argus) — Brasil e Bolívia assinaram em 9 de julho um acordo de cooperação para comercialização de fertilizantes e cloreto de sódio (NaCl). O acordo foi firmado após a visita do presidente brasileiro Luiz Inácio Lula da Silva à Bolívia no início desta semana. O acordo foi realizado entre o Ministério da Agricultura e Pecuária (Mapa) do Brasil e o Ministério de Energia e Hidrocarbonetos (MHE, na sigla boliviana) da Bolívia. O acordo não estabelece apenas regras para comercialização de fertilizantes e NaCl entre os dois países, mas também pretende promover a integração energética entre os vizinhos. Segundo o acordo, empresas e entidades de cada país se comprometem a comunicar suas disponibilidades de ureia, NPK, potássio e ureia de liberação lenta, a serem determinadas de acordo com as necessidades; avaliar como executar contratos de compra e venda; identificar potenciais clientes e possíveis destinações para fertilizantes e NaCl; e a estabelecer mecanismos de cooperação em estratégias de mercado. O acordo terá duração de cinco anos e poderá ser estendido pelo mesmo período. Por João Petrini Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

India's IPL issues urea counterbids: Update


24/07/12
24/07/12

India's IPL issues urea counterbids: Update

Adds latest on counterbid recipients Amsterdam, 12 July (Argus) — Indian fertilizer importer and supplier IPL has sent counterbids to all suppliers at $365/t cfr east coast under its 8 July tender. IPL has secured 80,000t for the west coast under two previous bid rounds at $350.50/t cfr. This latest counterbid validity is until 11:00 IST (05:30 GMT) on 13 July. The importer initially sent counterbids to the suppliers with the seven-lowest priced offers to the east coast earlier today, for a potential total of 480,000t, but has now sent the counters to all potential suppliers under the tender. This round of counters for the east coast follows two rounds for the west earlier in the week. The first round was on 10 July and received no acceptances, while the second was on 11 July and resulted in a trading firm agreeing to supply just a further 30,000t at $350.50/t cfr west coast. The east coast counters may tempt more acceptances given the $15/t premium over the west coast price. Trading firm Liven offered the lowest for 50,000t at $350.50/t cfr west coast, while the lowest offer on the east coast was 100,000t from OQ Trading at $365/t cfr east coast. The lowest offers to both coasts will be confirmed sales in line with tender rules. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India's IPL issues urea counterbids for east coast


24/07/12
24/07/12

India's IPL issues urea counterbids for east coast

Amsterdam, 12 July (Argus) — Indian fertilizer importer and supplier IPL has sent counterbids to seven suppliers with the lowest-priced offers to the east coast under its 8 July tender, to possibly buy up to 480,000t at $365/t cfr. IPL has secured 80,000t for the west coast under two previous bid rounds at $350.50/t cfr west coast. This latest counterbid validity is until 11:00 IST (05:30 GMT) on 13 July. The seven-lowest priced offers to the east coast totalled 480,000t, of which the initial lowest-priced offer of 100,000t will be accepted automatically under tender rules. This round of counters for the east coast follows two rounds for the west earlier in the week. The first round was on 10 July and received no acceptances, while the second was on 11 July and resulted in a trading firm agreeing to supply just a further 30,000t at $350.50/t cfr west coast. The east coast counters may tempt more acceptances given the $15/t premium over the west coast price. Trading firm Liven offered the lowest for 50,000t at $350.50/t cfr west coast, while the lowest offer on the east coast was 100,000t from OQ Trading at $365/t cfr east coast. The lowest offers to both coasts will be confirmed sales in line with tender rules. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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