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Japan’s Jera, IHI start ammonia-coal co-firing trial

  • : Coal, Electricity, Fertilizers, Hydrogen
  • 24/04/02

Japan's largest power producer by capacity Jera and engineering firm IHI have started a demonstration of co-firing 20pc of fuel ammonia with coal at Jera's Hekinan power plant.

Testing the use of ammonia at the 1GW Hekinan No.4 coal-fired unit began on 1 April. Jera had expected to start the trial by 26 March at the earliest but pushed this back to after the end of March, citing more time needed to test run equipment ahead of the demonstration.

Jera has secured from Japanese trading house Mitsui around 40,000t of grey ammonia for the trial, which is scheduled to last until June 2024. Jera and IHI are looking to investigate nitrogen oxide emissions and confirm factors such as operability and the impact on boilers and ancillary equipment through the test burning.

The project is backed by state-owned research institute Nedo, with its support period from July 2021-March 2025. Jera and IHI are seeking to establish technology for the use of fuel ammonia in thermal power plants by March 2025. Jera aims to start commercial operations with a 20pc ammonia mixture in the April 2027-March 2028 fiscal year.

IHI plans to apply the knowledge through the demonstration to establish a 50pc or more ammonia co-firing technology and develop burners for 100pc ammonia combustion. Jera hopes to achieve a 50pc ammonia mixture on a commercial basis in the first half of the 2030s.

Jera is likely to import around 2mn t/yr of fuel ammonia in 2030, which could be nearly 70pc of Japan's current 2030 ammonia demand target of 3mn t/yr. To help meet the target, Jera is planning to buy up to 500,000 t/yr of blue ammonia from Norway-based fertilizer producer Yara and US ammonia producer CF Industries for the Hekinan No.4 unit.


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25/03/19

Mosaic optimistic about output, future demand

Mosaic optimistic about output, future demand

Houston, 19 March (Argus) — US fertilizer producer Mosaic is hopeful its output this year will exceed 2024 levels as it plans to enhance its capacity to meet anticipated demand growth. Mosaic expects phosphate and potash global demand to individually exceed 80mn metric tonnes (t) by the end of the decade, with phosphate's demand increase to be limited by a lack of adequate global supply. For phosphate, that would represent an uptick of 7mn t of demand while for potash that would represent an increase of nearly 9mn t. Mosaic referenced biofuel demand, feed use, and food use as the main pillars of agriculture commodity demand growth. There are a handful of factors expected to drive demand growth for phosphate and potash, such as population growth and an increase in the usage of the phosphate molecule in the industrial sector, the producer said in its analyst day presentation. Executive vice president Jenny Wang pointed out the downward trend in Chinese phosphate exports. The country in recent years exported roughly 10mn t, but that level has dropped to around 7mn-8mn t as it focuses on meeting domestic demand first. Mosaic expects annual Chinese phosphate exports to continue to drop by at least another 2mn t, while global phosphate demand growth from 2025-2030 is expected to increase by at least 2pc, which would further tighten global supply. The producer also did not shy away from detailing its loss of 700,000t of phosphate production last year from the plethora of hurricanes and winter storms that swept through the US Gulf. Vice president Karen Swager said if the 700,000t of phosphate had been included in the annual output tonnage, the overall 2024 production rate would have surpassed 2023, and therefore 2025's phosphate output should show an uptick. Mosaic last year produced roughly 6.3mn t of phosphate. It expects to produce between 7.2mn-7.6mn t this year and nearly 8.2mn t by 2026. "As we ramp our production up, we will lower our unit costs because a lot of our costs are fixed," Swager said. The producer has also been installing new technology at its Canadian mines that should lead to an 8pc increase in its 2025 potash output compared with 2024 levels, which were lowered by 250,000t because of electrical mine issues . Mosaic anticipates 2025 production to total between 8.9mn-9.1mn t and should near 9.2mn t by 2027. "Better operating efficiency will unlock value that enables us to grow high margin areas of the business, and invest less in the areas that aren't generating those type of returns," president Bruce Bodine said. By Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Modified fertilizer tariffs in effect indefinitely: TFI


25/03/19
25/03/19

Modified fertilizer tariffs in effect indefinitely: TFI

Houston, 19 March (Argus) — US fertilizer industry association The Fertilizer Institute (TFI) today told its members that there is no end date for modified tariffs on Canadian and Mexican fertilizers. The exclusions and modified tariff rates will be in effect indefinitely unless President Donald Trump decides otherwise, since no expiration date was outlined in the executive order, TFI said in an alert to is members. TFI referenced speculation throughout the fertilizer industry regarding the executive order being set to expire at the beginning of April, but specified that there has not been authorized verification from the Trump administration about the end date. The industry group advised to beware of the lack of timeline, and remain conscious of the possibility of no "guarantees" in a tariff change in the near future. Canadian and Mexican imports of fertilizer and other products deemed compliant with the United States-Mexico-Canada Agreement (USMCA) were excluded from the 25pc tariff implemented on 4 March under an executive order from the Trump administration. In comparison, potash deemed to lack USMCA preference status will face a reduced 10pc tariff, likely driven by the significant amount of Canadian potash imported into the US annually. Market sentiment has mirrored the uncertainty of the tariffs, with potash prices rising progressively over the past two months. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Swedish wind output structurally shifts Nordic hydro


25/03/19
25/03/19

Swedish wind output structurally shifts Nordic hydro

London, 19 March (Argus) — Higher Swedish wind output is a structural supply shift that could support Norwegian hydro stocks over the long term, as recent record hydro reserves come despite below-average rainfall between October 2024 and February 2025. Combined Nordic hydropower reserves have held a surplus to the 10-year maximum for eight of the first 10 weeks of 2025, peaking at seven percentage points in week 10, as Norwegian hydro reserves unexpectedly increased from a week earlier. Reserves across Finland, Norway and Sweden closed week 10 at 55.6pc of capacity, seven percentage points above any other week in the previous 10 years and 5.1 percentage points higher than in 2008, the next highest year. Hydro production in Norway fell on the year in 2024, dropping to an average of 12.1GW, down from 12.2GW in 2023 and around 7pc below the five-year average of 12.9pc. Tighter hydro conditions in the first half of the year weighed on generation. Still, in the final six months of 2024, hydro reservoir output also fell on the year, dropping by 4pc to an average of 11.4GW, down from 11.9GW. That is despite combined Nordic reserves last year holding an average stock surplus of 5.2 percentage points to 2023 between weeks 34 and 52. At the same time, Swedish wind output increased to an average of 4.6GW last year, up by 18pc on the year from 3.9GW a year earlier and ending last year around 34pc higher than the five-year average. Higher wind generation weighs significantly on regional day-ahead prices and discourages hydro production by lowering the spot below the perceived water value of stored hydropower capacity. Rising wind capacity and its effect on the power mix is particularly notable during the first and fourth winter quarters, with generally the highest prices, with Swedish wind output averaging 5.8GW last year between January and March and October and December, up by 22pc from the equivalent periods in 2022. That displacement represents a structural supply shift in the Nordic power market that can support hydro reserves beyond rain and temperature outlook patterns going forward and during below-average precipitation periods, as the call for hydro production falls in hours when wind output is highest that — before significant wind capacity additions in Sweden — were routine output hours. Furthermore, higher run-of-river generation last year, up by 8pc in 2024 compared with a year earlier to an average of 3.4GW, captures the higher stock feed-in and water volumes that supported Nordic reservoirs in 2024 leading into 2025 and emphasises that, like wind output, run-of-river, which is generally not dispatchable undermines the regional spot price and reduces the call for reservoir hydro output. Norwegian hydro production last week peaked at 19.7GW on 13 March and averaged 17.9GW between 10 and 16 March, exceeding the monthly average of 15.9GW in March so far. Higher Norwegian hydro output was directly correlated with lower Swedish wind generation on those days, with Swedish average daily wind generation falling to 1.1GW and 1.5GW on 12 March and 13 March, respectively, while Norwegian hydro output topped 19GW on both days. By 15 and 16 March, Norwegian hydro production fell back to 16.6GW and 14.5GW, as Swedish wind generation rose to 7.6GW and 8.2GW. Unseasonably high reserves have consistently weighed on summer delivery power contracts and supported a substantial €59.20/MWh discount for Nordic June to the German equivalent on 18 March and an average discount of €59.13/MWh between 3 and 18 March. The Nordic third quarter last closed at a €66.10/MWh discount to the German equivalent and has averaged €67.23/MWh below Germany's front quarter over the previous 30 days. Reserves ended last month at 57.8pc of total capacity, some 3.4 percentage points above the 10-year maximum and in Norway, reserves were just 0.5 percentage points below the long-term national maximum, with stocks since switching to a 2.8 percentage point surplus to the maximum in week 10 and a 2.4 percentage point surplus in week 11. This was despite precipitation between October and February being up on the year, it remained below the region's seasonal norm by nearly 20.6mm, with rainfall in Bergen over the same period below the average in four of the past five years. Precipitation over the five months last exceeded the seasonal norm in 2022, totalling 1,804.8mm and registering a 422.9mm surplus to the average. But at February's close, hydro reserves in 2022 were 17.2 percentage points below the equivalent week in 2025, underscoring increased Swedish wind output's impact over the 2024-25 season. By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK wealth fund to prioritise ‘clean energy’ investment


25/03/19
25/03/19

UK wealth fund to prioritise ‘clean energy’ investment

London, 19 March (Argus) — The UK government has set "clean energy" as a priority investment sector for its new national wealth fund, and set out a plan for the fund to interact with newly-formed Great British Energy to drive decarbonisation. The two organisations will interact to provide a "strong end-to-end clean energy development and finance offer" and help the country hit its net zero targets, the government said. Great British Energy — staffed by specialists in the sector — will provide "development expertise", while the wealth fund will deliver finance, the government said. Great British Energy "will develop, invest in, build and operate clean energy projects across the UK", including owning stakes in the projects it develops itself, the government said. The organisation will develop "clean energy assets from inception", as well as co-develop and invest in more advanced projects. The national wealth fund "will unlock over £70bn ($90.7bn) in private investment to help deliver economic growth, make Britain a clean energy superpower, and strengthen the defence sector", the government said. The fund will prioritise investment in "clean energy, advanced manufacturing, digital technologies, and transport", and flagged likely spending on carbon capture and green hydrogen projects, as well as gigafactories and "green steel". The government has made commitments to "clean power" deployment and hitting the UK's legally-binding net zero by 2050 target central to its approach, sticking to pledges made ahead of last July's election . The government is targeting 95pc "clean power" by 2030 and consulted on a "clean energy future" for the North Sea earlier this month . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU mulls competitive metals decarbonisation


25/03/19
25/03/19

EU mulls competitive metals decarbonisation

Brussels, 19 March (Argus) — The European Commission today presented its steel and metals action plan, setting out actions to boost the sector's decarbonisation while countering unfair competition from outside the bloc. The plan has a strong focus on combatting global market distortion, whether in terms of trade or combined with circumvention of the bloc's emissions trading system (ETS) and carbon border adjustment mechanism (CBAM). "We will strengthen the current safeguard clause. We aim for a reduction of up to 15pc in [steel] imports," said industry commissioner Stephane Sejourne. Aside from revised steel safeguard measures , trade actions include a ferro-alloys safeguards investigation "expeditiously" by 18 November. And the commission promises to assess whether the bloc's use of the lesser duty rule regime requires changes. In addition to a CBAM scheme for exported goods , the measures also cover energy prices, decarbonisation through electrification and more flexible rules for low-carbon hydrogen. The commission promises revised rules to enable more EU states to provide indirect cost compensation for steel and aluminium firms for carbon costs passed on through electricity bills. And Brussels wants EU states to lower costs for energy-intensive industries through network tariffs, facilitating power purchase agreements (PPAs) and lowering electricity taxation to zero. With direct electrification not always possible or cost-effective, the commission points to hydrogen as a key enabler of decarbonisation in the steel and metals industries. Some measures have been toned down from drafts. The commission's plan no longer mentions implementing a melt and pour clause , "effective immediately". The commission will now "assess" whether it should adapt its practice by introducing a melted and poured rule, regardless of the place of subsequent transformation and origins. But the commission now promises that the delegated act on low-carbon hydrogen will provide rules that are "as flexible as possible" to achieve greenhouse gas emission-reduction goals for low-carbon fuels in a "technology neutral way". Industry association Hydrogen Europe welcomed the commission's direct acknowledgment of hydrogen as the best route to decarbonisation for primary steel production. "Labelling schemes, sustainability criteria, and dedicated funding mechanisms are necessary first steps to incentivise the offtake of green products," said Hydrogen Europe's industrial policy director Laurent Donceel. The commission's paper sends a clear message that "a strong European Union needs a strong European steel industry", said Henrik Adam, president of European steel association Eurofer. But the association also called on the EU to implement "meaningful solutions through ambitious measures". By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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