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Singapore, Malaysia to collaborate on CCS, RECs

  • : Electricity, Emissions
  • 25/01/08

Singapore and Malaysia have signed agreements to collaborate on carbon capture and storage (CCS) as well as renewable energy certificates (RECs).

The countries will engage in bilateral discussions to enable cross-border CCS, and discuss the components of a legally binding government-to-government agreement, said Singapore's Ministry of Trade and Industry (MTI) on 7 January. A joint committee comprising members from both sides will be established to facilitate this. The countries will also share best practices and information, and facilitate relevant research projects.

The region has strong geological potential for CO2 storage, said the MTI. "Many countries are interested to pursue CCS to support their own decarbonisation plans and position themselves as CCS hubs for Asia-Pacific," it added.

Malaysia has a geological abundance of deep saline aquifer reservoirs, which could be used to develop large-scale, permanent CO2 storage solutions.

RECs

Singapore and Malaysia will also study the formation of a credible framework that recognises RECs associated with cross-border electricity trade. The development of the framework will catalyse demand for cross-border electricity trading projects, which will lead to higher investment that can support the long-term viability of regional renewable energy projects, said the MTI.

Singapore's licensed electricity importer Sembcorp Power signed a supply agreement with Malaysia's state-owned utility Tenaga Nasional Berhad (TNB) last month to import 50MW of renewable energy issued with RECs, with the renewable energy to be imported via existing infrastructure. Flows into Singapore began on 13 December.

The agreement is part of Malaysia's inaugural "green electricity" sales through its Energy Exchange Malaysia (Enegem) platform, which allows for cross-border green electricity sales to neighbouring countries. Almost 28,000 MWh of electricity has been traded under the Energem platform as of 7 January, according to MTI.

State-owned electricity firm Singapore Power and TNB are also undertaking a joint feasibility study to expand interconnector capacity and infrastructure between Singapore and Malaysia, said the MTI.

Cross-border power initiatives in the region have been growing, such as the recent increase in capacity of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) to up to 200MW under its second phase. Inaugural flows from Malaysia to Singapore began in September 2024, and almost 8,000 MWh of electricity has been traded under this phase as of 7 January, according to MTI.


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25/02/14

Brazil’s offshore wind gains momentum

Brazil’s offshore wind gains momentum

New York, 14 February (Argus) — Brazil is preparing for its first offshore wind projects following the approval of legislation that establishes a regulatory framework for investments in the sector. Industry leaders anticipate that this legal foundation will accelerate development, with the first auction for offshore wind areas expected soon. The move comes as Brazil seeks to leverage its vast wind resources and address slowing growth in its onshore wind sector. "The offshore wind law was approved at the right moment," said Elbia Gannoum, president of Brazilian wind association Abeeolica. "Brazil has one of the largest wind generation potentials, and without this law, the country risked missing investment opportunities." The new legislation comes as onshore wind expansion slows. After nearly 5GW of new wind capacity was added in 2023, investment declined, with capacity expanding by just 3.3GW last year, according to Abeeolica. A lack of demand from power distributors in energy auctions and an oversupply of power generation capacity have contributed to the slowdown. With limited demand for new projects, equipment suppliers have scaled back operations, and in some cases, suspended activities in Brazil. With the offshore wind law in place, the sector is optimistic that the government will hold its first auction for offshore wind areas this year or in early 2026. Awarding these areas would pave the way for Brazil's first offshore wind projects to begin operations by 2031 or 2032. Before the auction, the government must finalize regulations for the sector, which Gannoum expects will be complete this year. Companies have already begun preparing for the auction, conducting assessments of wind speeds, power transmission infrastructure and supply chains, according to Ricardo de Luca, Brazil country director for UK offshore wind developer Corio Generation. Once the areas are awarded, project development could take up to four years, followed by an auction for power purchase agreements in 2028, de Luca estimates. Corio plans to develop five offshore wind projects in Brazil, totaling 5GW of installed capacity. Wind developers warn that Brazil must also prepare its power transmission infrastructure for future offshore wind projects. "Even though areas haven't been awarded, the mines and energy ministry must start planning transmission infrastructure in regions with significant offshore wind potential," said Fernando Elias, regulatory director at Casa dos Ventos. "Without long-term planning, infrastructure bottlenecks could prevent projects from moving forward." While transmission constraints could pose challenges, Brazil has an advantage in developing offshore wind thanks to its established offshore oil and gas industry, said Renato Machado dos Santos, regional director of renewable energy at RES. "There is significant overlap in the supply chains for offshore wind and oil, which will not only accelerate investment but also make Brazil a more attractive destination for investors." Opportunities ahead? Despite potential hurdles, offshore wind developers remain cautiously optimistic. US president Donald Trump's 20 January executive order suspending offshore wind leasing and permitting could shift more investor interest toward Brazil. "Trump's policies have redirected attention to Brazil," de Luca said, adding that the Brazilian government has demonstrated a long-term commitment to renewable energy development. Beyond the offshore wind law, other recent legislation is expected to bolster demand for power from future offshore wind projects. This includes the approval of the low-carbon hydrogen law, which will drive demand for green fertilizer production. Additionally, the expansion of data centers for artificial intelligence and growing electricity demand from electric vehicle adoption will contribute to future power consumption in Brazil, a share of which will come from offshore wind projects, Gannoum said. Brazil’s onshore wind capacity GW Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Serbia aims to couple its electricity market in 4Q26


25/02/14
25/02/14

Serbia aims to couple its electricity market in 4Q26

London, 14 February (Argus) — Serbia aims to couple its day-ahead power market with the European market through its borders with Hungary and Bulgaria by the fourth quarter of 2026, but whether it will receive an exemption from the EU's carbon border adjustment mechanism (CBAM) remains unclear, market operations specialist at Serbian electricity exchange Seepex Milos Mosurovic has told Argus . The fourth quarter of 2026 is the first available time slot for EU-led regulatory body Energy Community constituent states to join the EU's single day-ahead coupling scheme and was assigned by the market coupling steering committee, Mosurovic said. But market coupling is a prerequisite for exemption from the CBAM, which is planned to go into effect on 1 January 2026. Energy Community members previously agreed to the 2022 Electricity Integration Package, which would provide an exemption from the CBAM until 2030 if they coupled with the European market and met other requirements by 2026. But Energy Community Secretariat director Artur Lorkowski recently said in an interview with Argus that Energy Community constituent states probably will not receive a CBAM exemption , as they have not achieved market coupling, which is a precondition for exemption. But Lorkowski did acknowledge that "greater clarity is needed" on specific criteria to determine when a third country may be considered to have ''an electricity market that is integrated with the union". This lack of clarity, along with the procedural meetings, have created market uncertainty surrounding whether and how the CBAM could be applied to Energy Community constituent states. "All relevant participants in the energy sector are aware that [Energy Community] countries will not couple until [after] 1 January 2026," Mosurovic said. "This is why we do not know what to expect regarding the CBAM." If the CBAM was applied to electricity flows, an EU emissions trading system (ETS) equivalent would be applied to Serbian electricity flows beginning on 1 January 2026. The implementation of an EU ETS equivalent was deemed to be the most expensive of four models that could be introduced into the Energy Community region, as it would lead to an increase of 13-29pc more than the baseline scenario calculated on the electricity market as of July last year, an Energy Community ministerial council report published in December shows. The four proposed models are a regional ETS, a fixed-price ETS, a carbon tax and integration into the existing EU ETS. The final option was ranked the lowest for feasibility from a legal and technical standpoint. And the method of the application of the CBAM to electricity flows has not been revealed. According to an Energy Community report from October , it is not possible to separate electricity exports from transit flows based on currently available data, and therefore it is possible that both export and transit volumes will be subject to the CBAM, as transactions for electricity entering the EU from contracting parties were declared solely as imports regardless of origin. Thermal power plants among community contracting parties have benefited from access to the EU's integrated electricity market, but have not been subject to the EU ETS, despite all coal and lignite-fired thermal power plants in the region considered to be in breach of the requirements of the EU's large combustion plant directive. But thermal capacity remains key in the Balkans, despite more renewables entering the power mix. Coal-fired generation accounts for about 40pc of annual domestic generation in the region. By Annemarie Pettinato Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Erex cuts biomass-fired power output in January


25/02/14
25/02/14

Japan’s Erex cuts biomass-fired power output in January

Tokyo, 14 February (Argus) — Japanese renewable energy developer Erex's biomass-fired generation in January fell on the year, according to data released by the company on 13 February. Erex's combined electricity output from the 50MW Saiki, the 75MW Buzen, and the 49NW Nakagusuku biomass-fired power plants dropped by 8pc on the year to 113GWh in January 2025. The company does not publish data for the 75MW Ofunato plant. Erex's biomass-fired power generation capacity in January stood at 249MW, including Ofunato, burning mainly imported wood pellets and palm kernel shells (PKS). The 20MW Tosa plant has been shut down for an indefinite period since September 2024 because of aging facilities. The company plans to bring two more biomass-fired power plants in Japan on line — the 75MW Sakaide Hayashida in June 2025 and the 300MW Niigata Mega Bio around 2029-30. Erex plans to begin coal and biomass co-firing at the 149MW Itoigawa plant, which currently burns only coal. The plant has already conducted test runs using wood pellets, PKS, and sorghum pellets, but the company has not announced when it will start co-firing operations. Erex also aims to start operations at the 20MW Hau Giang biomass-fired power plant in Vietnam by the end of this month. The plant will burn around 130,000 t/yr of rice husks. By Takeshi Maeda Erex's biomass-fired generation in January 2025 Capacity(MW) Generation(GWh) Start of Operations Saiki 50 32 Nov-16 Buzen 75 48 Jan-20 Nakagusuku 49 32 Jul-21 Ofunato 75 - Jan-20 Total 249 113 Source: Erex Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada sets out climate plan to hit 2035 emissions goal


25/02/12
25/02/12

Canada sets out climate plan to hit 2035 emissions goal

London, 12 February (Argus) — The Canadian government has released a new climate plan for the country, detailing actions it plans to take to reach its 2035 emissions reduction targets, with several references to the outcome of the UN Cop 28 climate summit in 2023. The Canadian government announced the country's 2035 target in December . It aims to reduce greenhouse gas (GHG) emissions by 45-50pc by 2035, from 2005 levels. This builds on its target to cut emissions by 40-45pc by 2030, from the same baseline, although the country is currently "on track" to reduce emissions by 34pc by 2030, from 2005 levels, the government said. Many of the plans outlined today are in line with the first global stocktake — the key outcome from Cop 28 in December 2023 . These include phasing out unabated coal-fired power, increasing renewable energy capacity, improving energy efficiency and cutting methane — a powerful GHG. The government plans to reduce methane emissions from Canada's oil and gas sector by 75pc by 2030, from 2012 levels. It will also "explore the transfer and use of ITMOs", which are internationally transferred mitigation outcomes, or emission credits. And the country will "explore the potential" for carbon removal technologies, although the plan warned on "potential risks that must be carefully managed". The document included detailed plans from several of Canada's provinces and territories, as well as the Assembly of First Nations. But the province of Saskatchewan — for which agriculture, oil and gas production and mining are key — pushed back on federal climate policies. Canada's government based its plans on the "best available science" and included recommendations from the independent Net-Zero Advisory Body. Insured losses from severe weather in Canada hit a record high of C$8.5bn ($6bn) in 2024, the government noted. And estimates suggest that "economic losses will rise to roughly 6pc of Canada's GDP by the end of the century", it added. Canada will need investments of between C$125bn and C$140bn annually to reach its legally binding goal of net zero emissions by 2050, according to the plan. The transition "will require substantial public and private sector investment and expertise", the government said. The plan released today is known as a nationally determined contribution (NDC). Countries and jurisdictions party to the Paris climate agreement are required to submit new plans every five years, ideally increasing in ambition. Canada committed at Cop 29 in November to an NDC aligned with Paris agreement temperature goals . The Paris accord seeks to limit the rise in global temperature to "well below" 2°C above pre-industrial levels, and preferably to 1.5°C. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil plans Amazon forest concession sale


25/02/11
25/02/11

Brazil plans Amazon forest concession sale

Sao Paulo, 11 February (Argus) — Brazil's environment ministry will auction concessions in the Jaturana national forest, in northern Amazonas state, as part of government efforts to prevent deforestation. The government will sell four forest management concession areas with a combined 453,000 hectares (ha) in the Apui municipality. The concessions will require roughly R430mn ($7.4mn) in infrastructure investments and R3.4bn in operating investments over the 37-year concession period. The auction is scheduled for 21 May and will be held at the B3 exchange, in Sao Paulo state, to guarantee transparency and boost competition, the ministry said. The government plans to hold a roadshow to promote the concessions. The government estimates that the auction will generate concession payments of R32.6mn/yr, which will be split between federal environmental protection agencies, Amazonas state and the Apui city government. The winning bidders will be allowed to harvest up to six trees/ha for lumber from the concession area, according to the auction's terms elaborated by the Bndes development bank. Other select activities, including the production of açai fruit, Brazil nuts and tropical tree oils, such as copaiba and andiroba, will also be permitted. The concession terms stipulate that the winning bidder will not have control over the mineral or water rights of the region and will be required to invest in research and environmental education. With the sale of the Jaturana concessions, Brazil will increase the total amount of forest managed by the private sector — now at 1.31mn ha — by 35pc. Brazil has 23 concession contracts for nine national forests in five Brazilian states. The goal is to award a total of 5mn in forest concessions over the next three years. The Brazilian forestry service (SFB) is developing concessions for 11 other national forests, the head of the SFB Garo Batmanian said on Monday. Limiting deforestation is one of President Luiz Inacio da Silva's goals for his administration and a flagship of the country's ambitions for the UN Cop 30 summit, which will be held in Belem, the capital of northern Para state, in November. Brazil has been targeting reforestation as part of its efforts to meet its emissions-reduction target. But wildfires in the country are still a major concern, as they rose by 79pc in 2024 from a year prior , according to environmental network MapBiomas' fire monitor researching program. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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