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Jogmec makes first e-methanol investment: Correction

  • : E-fuels, Hydrogen, Petrochemicals
  • 24/08/09

Corrects Jogmec's acquisition of a stake in HIF Global.in paragraph 2

Japan's state-owned energy agency Jogmec is investing for the first time in the e-methanol sector since the launch of a financing scheme in 2022 to aid domestic supplies of low-carbon fuels.

Jogmec announced on 8 August that it has accepted Japanese refiner Idemitsu's application to Jogmec's overseas financing scheme for hydrogen and low-carbon fuels-related projects. Jogmec will provide $36mn to the US' HIF Global through Idemitsu's US subsidiary Idemitsu Efuels America (IEAC) and obtain an undisclosed stake in the IEAC.

Idemitsu, through IEAC, will also invest $114mn to secure an undisclosed stake in US' HIF Global.

The deal follows Idemitsu's initial agreement with HIF in March 2023 to work on production and promotion of e-fuels, along with a decision to buy e-methanol from HIF and jointly study the possible development of the fuel.

Idemitsu and Jogmec plan to import e-methanol and other synthetic fuels from HIF's projects and use them as shipping fuels, as well as feedstocks to generate synthetic fuels and petrochemical products.

HIF is targeting to produce around 4mn t/yr of e-methanol equivalent by 2030 at its production sites in Tasmania in Australia, Matagorda in the US, Magallanes in Chile and Paysandu in Uruguay.


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24/10/09

IEA: Renewable growth by 2030 to fall short of tripling

IEA: Renewable growth by 2030 to fall short of tripling

London, 9 October (Argus) — Paris-based energy watchdog the IEA expects renewable additions to grow by 2.7 times by 2030, according to its 2024 report. This would surpass most individual countries' targets, but fall short of the target set at last year's Cop 28 gathering of tripling growth. Solar photovoltaic (PV) additions are forecast to drive this growth, making up 80pc of new power plants by 2030. China is expected to be responsible for 60pc of this growth, the IEA said. With 670GW of new renewable capacity added so far in 2024 — a 20pc increase on the year — the IEA expects half of global energy generation to come from renewables by 2030. The EU is expected to double the pace of renewable capacity growth between 2024 and 2030. While the IEA sees renewable growth being driven increasingly by the market rather than government policies, executive director Fatih Birol deems slow grid connection the biggest hurdle facing expansion. The average wait for a connection permit is seven years for wind and five for solar. And lead author of the report, Heymi Bahar, added that PV manufacturers have been limiting expansion investment in response to a supply glut, with forecast manufacturing capacity for 2030 revised down from last year's report because of the financial risk facing smaller producers and negative net margins. The report also highlights the need for more investment in wind turbine manufacturing. Despite estimates that electricity generated from renewables will almost double by 2030, the IEA sees renewable fuels — bioenergy, biogas, hydrogen and e-fuels — expanding by just 28pc by 2030, and making up less than 6pc of the energy mix. Europe is also expected see a 6pc increase in renewable fuel demand between 2023 and 2030. Geothermal, tidal and concentrated solar power growth is expected to decline because of a lack of policy support, while hydro is expected to account for less than 1pc of global renewable additions by 2030. By Bea Leverett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

IEA raises Australian renewable power capacity forecast


24/10/09
24/10/09

IEA raises Australian renewable power capacity forecast

Sydney, 9 October (Argus) — Australia is expected to add more than 52GW of renewable power capacity over 2024-30, with 57pc of the country's electricity generation coming from renewable sources in 2030, Paris-based energy watchdog the IEA announced today. The forecast revision in the IEA's Renewables 2024 report released on 9 October is 2pc higher than the 2023 estimate, it said, although the previous annual report included forecasts up to 2028, with a 49pc renewable share expected for that year. The country's share of renewables in 2023 was around 34pc, according to the IEA. Australia is expected to add around 52.2GW of new capacity between 2024-30 under the IEA's main case scenario, led by utility-scale solar photovoltaic (PV) at 18.6GW, onshore wind at 15.3GW and distributed solar PV at 13.8GW. Hydropower capacity additions are forecast to reach 2.3GW over that period, while renewables dedicated to hydrogen production total 2.2GW. The IEA expects additions to gradually rise in the coming years, from 5.4GW in 2024 and 5.5GW in 2025 to 6GW in 2026, 6.9GW in 2027 and 8GW in 2028. Additions would peak in 2029 at 11.5GW and fall back to 9GW in 2030. Australia is targeting an 82pc share of renewable sources in nationwide electricity generation by 2030, with the federal government expanding its Capacity Investment Scheme (CIS) and launching the first major 6GW tender in May . Tenders will run every six months until 2026-27 for a total of 32GW, consisting of 23GW of renewables — solar, wind and hydro — and 9GW of dispatchable capacity such as pumped hydro and grid-scale batteries, all to be in operation by 2030. Apart from the CIS scheme, corporate demand for renewable energy — mostly through power purchase agreements — and continued growth in distributed solar PV will contribute to the increase in renewable capacity in Australia, stated the IEA. Challenges for utility-scale additions include curtailment, which remains high because of grid constraints, and lengthy connection wait times, the IEA said, although new rules could ease these delays. "Should some or all of these issues be addressed, our accelerated case indicates that growth could be nearly 20pc higher," it said, noting that new renewable capacity could reach nearly 63GW over 2024-30 in that instance. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

ThyssenKrupp Steel weighs decarbonisation plans


24/10/07
24/10/07

ThyssenKrupp Steel weighs decarbonisation plans

London, 7 October (Argus) — German steelmaker ThyssenKrupp Steel Europe is evaluating its decarbonisation plans, partly as a result of increased costs. The steelmaker may scrap its plans to build a direct-reduced iron (DRI) plant in Duisburg, a participant close to the company told Argus last week. "The situation is currently being reviewed. We currently assume that the direct reduction plant can be implemented under the given framework conditions," a Thyssenkrupp Steel Europe spokesperson said. Potential cost increases for the planned DRI plant have no impact on the confirmed federal and state subsidies, the steelmaker said. The European Commission earlier this year approved Germany's plan to allocate up to €2bn to Thyssenkrupp for its decarbonisation efforts in Duisburg. Specifically, the breakdown indicated Thyssenkrupp would receive a direct grant of €550mn to build a DRI plant and two melting units expected to commence operation by 2026 in Duisburg. Abandonment of the project would most certainly mean the forfeiture of the €550mn provided by the German government. Europe currently faces a competitiveness issue when it comes to decarbonisation, given that electricity costs on the continent are estimated to be 2-3 times higher than in Asia and the US, ArcelorMittal's head of governmental affairs and decarbonisation, Stephane Tondo, said at an industry event last month. Gas prices are also higher, and DRI is typically fed with gas. With electricity making up 60-80pc of the cost to produce hydrogen , this could cause issues for ThyssenKrupp and other steelmakers that plan to decarbonise in the EU. Green hydrogen will be too expensive in the EU, head of ArcelorMittal Flat Carbon Europe Geert Van Poelvoorde has said. And geographically speaking, Germany finds itself in a disadvantageous position compared with the peripheries of Europe that benefit from a greater availability of wind and solar energy sources. Fellow German steelmakers Salzgitter and SHS have yet to announce any changes to their own decarbonisation plans, which involve the construction of DRI assets. By Carlo Da Cas Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil launches call for funding low-carbon H2 projects


24/10/07
24/10/07

Brazil launches call for funding low-carbon H2 projects

London, 7 October (Argus) — Brazil's energy ministry has launched a call for expressions of interest for low-carbon and renewable hydrogen projects to be considered for funding under Brazil's potential share of the $1bn under the industrial decarbonisation programme, led by Washington-based Climate Investment Fund (CIF). The funding scheme was announced on Friday . An initial statement by Brazil's energy ministry suggested that the $1bn amount would be for hubs in Brazil alone, but the ministry has clarified that the programme will be open to projects all over the world, mainly developing countries. CIF is backed by the World Bank. Projects should be at commercial scale and can embrace a variety of low-carbon production pathways and technologies, including carbon capture use and storage (CCUS) and ethanol reforming. The call closes on 2 November and selected projects will be announced by Brazil's energy ministry on 6 December. Brazil can then submit its project portfolio to CIF until 17 January. Each chosen country could receive between $125mn to $250mn for its projects, the ministry said. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

RECOUP 2024: Carbon the topic for the future


24/10/04
24/10/04

RECOUP 2024: Carbon the topic for the future

Carbon emissions, UK legislation and the role of industry in helping consumers to choose correctly were front of mind at last week's RECOUP conference, write Will Collins and Chloe Kinner London, 4 October (Argus) — The plastic supply chain needs to become less carbon intensive to preserve its environmental advantage compared with other materials, and supporting the recycling industry through a challenging period will play a central role, delegates heard at last week's RECOUP conference in Peterborough, UK. Plastic currently has a competitive advantage compared with many competing packaging materials when viewed through life cycle analysis of carbon emissions, particularly because its light weight reduces pollution during transport and its barrier properties lessen wastage. But this may not last forever, said Kinza Sutton from sustainable packaging organisation Plastipak, and with carbon set to be "the big topic of the future" the industry needs to focus today on reducing emissions linked to production, which she said are responsible for around two thirds of those generated over the whole lifecycle. But several speakers also emphasised the need to consider environmental gains in the context of the UK and Europe's competitiveness on the global stage. Stuart Hayward-Higham, innovation officer of waste management firm Suez, said "governments in the UK and Europe need to be conscious of the administrative burden on businesses", and called for regulators to align standards with neighbouring countries to boost efficiency and ensure a level playing field. Ermis Panagiotopoulos of global PET producer and recycler Indorama added environmental legislation has contributed to uncompetitive energy and raw materials prices in Europe, which make other regions more attractive to international companies as an investment. Participants suggested combining regulations with protective measures such as extending the carbon border adjustment mechanism (CBAM) to include plastics, could help to ensure Europe's competitiveness. Recycling to reduce emissions Increasing recycling and the uptake of recyclates in plastic products is one of the most effective ways to reduce carbon emissions linked to plastic raw materials. But Recoup chairman Jim Armstrong highlighted the need to support the UK recycling industry. "We need infrastructure to convert the materials that we will collect, that is part of the circle. The UK recycling industry is really under pressure at the moment. The idea there's a whole queue of financial investors waiting to invest in UK recycling, that's just not true at the moment", he said. The price of plastic waste bales in the UK has fallen incrementally throughout the year, amid slow demand for domestic and export sales and a drop in the value of Packaging Recovery Notices (PRNs), which recyclers generate by processing packaging waste and which are intended to contribute to investment. And on the downstream side of the recycling industry, Biffa Polymers mothballed a 25,000t/yr mechanical recycling plant in northeast England in June owing to "extremely challenging market conditions", while Viridor announced in August it would not proceed with plans to build a chemical recycling plant in Sunderland, citing delays to UK legislation . Robbie Staniforth from packaging compliance scheme Ecosurety noted a number of incoming measures that should help UK plastic recyclers, including extended producer responsibility (EPR) and a deposit return scheme (DRS) for PET bottles. But he said the UK's plastic packaging tax (PPT), which is intended to support demand for recyclates, needs improvement. Regarding PPT, Kinza Sutton said Plastipak had expected it to drive more use of recycled material, but in fact its recycled content had dropped by 5pc since 2022. "The plastics tax [has] driven cost increases, and we've seen the average recycled content come down. We were seeing high levels of 51pc or 100pc, we're seeing a lot less of that now, companies are just reverting back down to 30pc [the minimum threshold to avoid paying PPT]". Engaging the customer Customers may support more re-use and recycling, but it is the industry's responsibility to help them make the right choices and minimise the necessary sacrifice to convenience and the cost burden, delegates heard. Gavin Ellis, co-founder of environmental organisation Hubbub, said research had shown consumers spend just two seconds on average deciding which bin to use for items of waste packaging, making clear labelling vital. A consistent approach between brands, outlets and collection systems is also important, he said. James Bull, head of packaging at Tesco, said retailers need to change products carefully, with an awareness that people have grown to rely on convenience and may be resistant to changes such as a move to a more reuse-based system. And Andrew Murray from appliance manufacturer Beko said new regulations should take into account the financial capabilities of consumers. Many households already cannot afford essential appliances, he said, making any measures that would increase the cost of the cheapest models potentially problematic. Despite the short-term challenges the industry is facing the sentiment at the event was optimistic for plastics recycling in the UK and Europe. Participants see the opportunity the industry has to lead consumers along the path to a more sustainable packaging supply chain model of reduced consumption and systems with more focus on reuse and recycling with the support of legalisation. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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