New Dutch government to cut funds for green H2

  • : Hydrogen
  • 24/05/16

The Netherlands' new government could reduce the budget of the country's climate fund by €1.2bn, primarily through cuts to renewable hydrogen support measures.

Four parties announced an agreement to form a coalition government on 16 May and outlined broad policy measures. The agreement includes a "budget supplement" which foresees the climate fund's budget being cut by €300mn in each of the next four years compared with existing plans.

This will be achieved by cutting funds available for the development of batteries and renewable hydrogen "in proportion to the current budget", according to the text. The majority of the cuts could be for renewable hydrogen given that the earmarked budget for this was much larger than for battery-related projects.

Around €9bn of the fund's €35bn budget was set aside for renewable hydrogen support measures, with the bulk to go towards subsidising production projects.

The coalition agreement was reached between the far-right PVV, the centre-right VDD party of outgoing prime minister Mark Rutte, the centre-right NSC, which was formed just shortly before the election last November, and the farmer's citizen movement BBB.

The PVV, led by Geert Wilders, won most seats in the election but had to tone down some of the demands and promises from its election manifesto during the negotiations. In its manifesto, the PVV had pledged to abolish the climate fund entirely, saying that climate policies should "go straight through the shredder".

The parties have retained a general commitment to support renewable hydrogen through the climate fund and note that low-carbon hydrogen made from natural gas with carbon capture and storage (CCS) can be used as a "transitional step" towards reducing emissions "if necessary".

The agreement also says a planned increase in the national CO2 tax will be scrapped and outlines plans to open new nuclear power plants.

The four parties have yet to decide on who will become the new prime minister.


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24/06/12

Germany eyes geographical split in new H2Global round

Germany eyes geographical split in new H2Global round

London, 12 June (Argus) — The German government could disburse more than €3.5bn in support of renewable hydrogen production projects globally in a second round of the H2Global mechanism, according to a consultation document. The country's economy and climate protection ministry is surveying industry participants on the proposed design and criteria for a second round of the scheme that is intended to bolster the ramp-up of global renewable hydrogen production. It committed €900mn for the scheme's first round and previously set aside more than €3.5bn for future auctions without specifying how the funds would be allocated, or across how many auctions. The consultation document suggests the full amount could be made available in a single round. The government's envisaged design shows financial support split across six lots ( see table ). Two would be for a 'vector open' category, which would entail final delivery of renewable hydrogen with suppliers free to decide which transport vector to use. This could allow for deliveries by pipeline, or for seaborne transport by vectors such as ammonia, liquid hydrogen or liquid organic hydrogen carriers (LOHCs). If transport vectors are used, suppliers would be responsible for converting the supply back to gaseous hydrogen. One of these lots — which would probably include a €300mn funding contribution from the Netherlands — would be open for projects anywhere in the world, and one would be specifically for European projects. The first round was open only to projects outside the EU. The four other slots are referred to as 'product open' and would be available to deliveries of renewable hydrogen or derivatives, such as ammonia, e-methanol, synthetic methane or sustainable aviation fuels (SAF). These are split by projects in four geographical regions. Delivery for all lots would be to points of sale in Germany or the Netherlands. The H2Global scheme aims to close the gap between the costs of production and the price that customers are willing to pay. Specialised entity Hintco will buy renewable hydrogen and/or derivatives through 10-year contracts with suppliers and sell the products through one-year contracts , with government funds to cover the expected price difference. The consultation mentions a 2026-36 timeframe. This could refer to the envisaged 10-year delivery period, although 2026 would be a highly ambitious start date for deliveries given the mechanism is targeting projects that are yet to be developed. The first round, split into specific lots for ammonia, e-methanol and e-SAF, was concluded in early 2023. Winners have yet to be announced. Interested participants can submit responses to the consultation until 22 July, after which the design will be finalised. By Pamela Machado Proposed lots for H2Global second round Region Type of lot Budget range (in €mn)* Europe Vector open 600 - 1100 Global Vector open 600† North America Product open 300 - 600 Asia Product open 300 - 600 Africa Product open 300 - 600 South America & Oceania Product open 300 - 600 *total budget allocated would not exceed €3.531bn; † of which Germany's contribution will be €300mn, with the rest likely to come from the Dutch government - Germany's economic affairs and climate protection ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Queensland to pump $17bn into renewables


24/06/12
24/06/12

Australia’s Queensland to pump $17bn into renewables

Sydney, 12 June (Argus) — Australia's Queensland has allocated new spending on energy projects, including pumped hydropower and transmission schemes, as part of its state budget for the 2024-25 fiscal year to 30 June. The state government, currently led by the Labor party, will spend A$26bn ($17bn) during the next four years as part of its Queensland Energy and Jobs Plan to wean the coal-dependent state off thermal power sources, budget papers published on 11 June said. An initial A$8.686bn will be delivered in 2024-25 by state government-owned energy businesses including projects for renewables, grid-scale batteries, gas, pumped hydropower, energy storage and the state's planned transmission SuperGrid . The SuperGrid, Copperstring transmission project in the state's northwest and renewable energy zone infrastructure will receive A$8.5bn over the next four years. Another A$16.5bn goes to renewable energy and storage projects, including the planned Borumba and Burdekin-Pioneer pumped hydropower energy storage . Some A$500mn will be spent on distribution network storage, including a local network battery plan, with A$192mn going to transmission grid operator Powerlink's planned training centres in Townsville and Gladstone cities. Another A$4mn will go to an assessment of potential sources of naturally occurring hydrogen in the state, which is also aiming to develop a green hydrogen sector . Queensland is aiming to end its state-owned power utilities' reliance on coal-fired electricity by 2035 . The government this year set emissions reduction targets of 30pc below 2005 levels by 2030, 75pc by 2035 and zero by 2050 under theClean Economy Jobs Act, as national debate continues about Australia's intermediate targets under the UN's Paris climate accord. Queenslanders on 26 October get to choose a government for the next four years, although energy policy is unlikely to figure in the election campaign. The centre-right Liberal-National opposition backed Labor's legislated emissions reduction goals, for which there is no penalty in case of a failure to meet targets. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU parliament to favour e-fuels, hydrogen: EPP lawmaker


24/06/10
24/06/10

EU parliament to favour e-fuels, hydrogen: EPP lawmaker

Brussels, 10 June (Argus) — EU parliament to favour e-fuels, hydrogen: EPP lawmaker The new EU parliament will be more pragmatic in 2024-2029, favour continuation of the internal combustion engine (ICE) beyond 2035 as well as more flexible rules for low-carbon hydrogen, e-fuels, biofuels, and other CO2-neutral fuels, outgoing member of the European Parliament Markus Pieper told Argus . The centre-right European People's Party (EPP) MEP was the key lawmaker behind the EU's revised renewable energy directive. Will the next parliament favour renewable liquid fuels in spite of provisions for an ICE phase-out? For me, the end of the internal combustion engine (ICE) has not been decided yet. The next European Parliament will likely have a majority supporting the continuation of ICE beyond 2035. This would provide planning security for investments in innovation and facilities for e-fuels, biofuels, and other CO2-neutral fuels, including power-to-x (P2X) fuels. Instead of an outright ban on combustion engines, there should be a phase-out of fossil fuels, enabling us to achieve climate targets more quickly and cost-effectively, without overloading power grids. We need to start working on a clear legal framework today. The blending of new fuels must be standardised and regulated. Do you see the EU parliament favouring greater flexibility in the conditions for renewable hydrogen? Yes, we have a review clause in the renewable energy directive, whereby the European Commission shall submit a report to council [of ministers] and parliament by 1 July 2028. If this assessment indicates that we cannot achieve targets for green hydrogen in industry due to a lack of supply, then we must adjust the definition of green hydrogen. If we do not adapt, the industry may relocate to regions with fewer environmental regulations. We need to be flexible in our legislation and ready to adjust rules due to worldwide competition. How can a new EU parliament improve on existing legislation for 2030 climate and energy goals? The magic word is technological openness. We need to get the best out of all energy resources. Additionally, we need to invest significantly more in the energy transition, especially in the expansion of cross-border green electricity projects. The new European Parliament will likely be more pragmatic and realistic in its energy goals. Does the EU need to rethink the 2040 goals? There's no need to rethink the 2040 CO2 reduction target of 90pc [compared with 1990 levels]. But we need to rethink how to achieve goals and keep a close eye on China and India. Europe must constantly redefine and adapt legislation as necessary. One crucial step is reaching new trade arrangements [to balance higher EU climate standards for domestic industry than global competitors]. We have to be more realistic. Do you think EU 2030 targets for hydrogen are too ambitious? Yes, the target for green hydrogen to represent 42pc of hydrogen used by industry in 2030 is too ambitious from today's point of view. And I currently don't see the capacity to produce enough hydrogen in Europe. As for imports, non-EU producers often do not meet the same standards for producing green hydrogen. This means we'll need to adapt our definition of green hydrogen and consider more low-carbon solutions. The Paris Climate Agreement remains our primary goal. If we can achieve these goals with low-carbon hydrogen, why not? Still, it remains possible to meet the 2030 green hydrogen targets if we adapt the definition. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU not on track for green shipping fuel target: Study


24/06/03
24/06/03

EU not on track for green shipping fuel target: Study

Brussels, 3 June (Argus) — The EU is on course to fall short of its green shipping fuel targets for 2030, according to non-governmental organisation Transport & Environment (T&E). Confirmed e-fuels production projects in the bloc will not reach the mandated 1pc threshold of 280,000 t/yr of oil equivalent (toe/yr) by 2031, T&E analysis found. The organisation mapped 61 e-fuels projects in development that could supply shipping fuels, with 17 of them "specifically dedicated to the maritime sector". But total volumes from existing plants and projects that have reached a final investment decision (FID) stand at just 130,000 toe/yr, T&E estimates. Many of the other projects are facing "likely delays" or "even total cancellation", according to T&E's shipping officer Inesa Ulichina. T&E pointed to just a handful of shipping-dedicated projects that have reached FID, including four green hydrogen projects and two e-methanol projects, amounting to 40,000 toe/yr and 30,000 toe/yr, respectively. It did not find one shipping-dedicated e-ammonia project with an FID. The organisation assumes that LNG, biofuels and shoreside electricity will supply the lion's share of alternative shipping fuel demand in the EU until 2030. Under the FuelEU Maritime regulation, the European Commission can, if appropriate, propose lifting the green shipping fuels mandate to a 2pc share, or some 560,000 toe/yr, from 2034. EU elections — set to take place this week — will not roll back green shipping fuel targets, Ulichina said. "We envisage increased ambition for mandatory e-fuels uptake post-2030," she told Argus . In line with the commission's projected 2040 emissions cuts , Ulichina called for the shipping sector to deliver at least 80pc absolute emission reductions by 2040. Under the revised EU Emissions Trading System (ETS), shippers have to surrender ETS allowances for 50pc of GHG emissions for extra-EU journeys. Surrender obligations for intra-EU shipping are phased in at 40pc of verified emissions reported for 2024, 70pc for 2025 and 100pc for 2026 onwards. The bloc's FuelEU Maritime regulation requires greenhouse gas (GHG) intensity cuts for bunker fuels of 2pc in 2025, 6pc from 2030, 14.5pc from 2035, 31pc by 2040 and 80pc by 2050. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Green steel, SAF likely first H2 buyers in UAE: Masdar


24/05/31
24/05/31

Green steel, SAF likely first H2 buyers in UAE: Masdar

London, 31 May (Argus) — UAE renewables and green hydrogen company Masdar expects output from its first hydrogen projects to be used in the production of sustainable aviation fuel (SAF) and green steel, as these face fewer logistical barriers than shipping and cracking ammonia back to hydrogen. The company aims to take final investment decisions (FIDs) on hydrogen projects targeting these sectors within the next 6-18 months and could start production around three years later, its director of hydrogen business development and commercial, Andreas Bieringer, told Argus . "We are working on green steel and would like to see some announcement to be made soon, also on sustainable aviation fuel, that's definitely what will go first in the UAE," he said. Masdar has a 2024 pilot for a 2.1MW electrolyser to prove the concept of using hydrogen in direct reduction of iron alongside Emirates Steel Arkan. The firm also trialled methanol-to-jet last year, which offers a path to e-SAF in the future. And it is developing the region's first SAF using renewable hydrogen and municipal solid waste. Projects where hydrogen or derivatives can be used directly — such as green steel, marine fuels and e-SAF — and the decarbonisation of industrial processes seem to be slightly ahead of the curve in general, Bieringer said. "These are things where we can get firm offtake directly because it takes out the problem of how we ship the product to offtake markets where the logistic supply chains are not ready yet," Bieringer said. "That's one of the uncertainties we have now. Like port infrastructure, cracking for ammonia, pipelines in Europe — all this needs to be advanced much faster," he added. Masdar's next step for its UAE projects is to sign firm offtake deals. "Structuring intelligent offtake agreements" that share the risk fairly on both sides is the "art everyone tries to figure out", he said. The company also needs to finalise the infrastructure to underpin the projects, but this should be more straightforward than long-distance shipping. At the end of last year, Abu Dhabi launched its low-carbon hydrogen policy. It focuses on creating hydrogen "oases" and clean electricity parks to attract investment and increase operational efficiencies. Masdar said it is actively supporting the policy's implementation. Outside of the UAE, Masdar is targeting projects in Scandinavia and the Iberian Peninsula. These are "very advanced front-end engineering designs" and are also focusing on logistically-easy offtake sectors, Bieringer said. Masdar appears to have reshuffled the order of its project pipeline. One of the first hydrogen projects it announced was a 200MW renewable ammonia project with fertiliser company Fertiglobe in Ruwais . This had targeted FID in 2023 and start up in 2025, but the timelines appear to have changed. The company had also hoped to start operating a 2GW renewable ammonia project in Egypt in 2026, but this also looks like a stretch since no FID has been taken yet. Many companies across the hydrogen industry have rolled back on the initial targets they set out — partly because of tough macroeconomic conditions but it also reflects a recognition that scaling up hydrogen might be tougher than first thought. Even with its own plans changing, Masdar has not abandoned its target to produce 1mn t/yr of renewable hydrogen, but Bieringer recognised it could be a stretch to get there by 2030. "We would definitely want to do it within a decade, 2030 is the guiding principle. If it maybe takes a little bit longer, I don't think it'd be too dramatic," he said. "The direction is still there, that's what you see in the market studies. The drive towards green hydrogen is unchanged". By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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