Shell puts pressure on trade groups over climate

  • : Emissions
  • 23/03/28

Shell said today it plans to engage with 10 oil and gas industry associations over "misalignment" between their climate and energy transition-related positions and its own transition policies.

Shell said it would remain a member of these groups, which are mainly located in the US, Australia and Canada, but would encourage them to adopt "policies that support the goal of the Paris Agreement and help society to achieve net-zero emissions by 2050."

In Shell's first Climate and Energy Transition Lobbying Report, chief executive Wael Sawan said he was "encouraged" to see that around three-quarters of the 39 associations reviewed are aligned with the company's policy positions on climate and the transition. But he said he wanted to see more change at these associations.

"I am writing to the 10 industry associations where we have found some misalignment to call for changes to some of their positions," Sawan said "For example, we would like some associations to step up their advocacy in support of net zero by 2050 and reductions in methane emissions. We look forward to engaging with them in the months ahead."

Shell said it would continue to track alignment between the associations' climate and energy transition-related positions and its own, and that it will be "transparent about where we find differences". But while it plans to remain a member of these industry associations, it also said it will reassess its membership "where we identify material misalignment", including ending activities such as board and committee participation, or ending overall membership.

The American Petroleum Association (API) was one trade body where Shell has found some misalignment. The company said it will "urge" the API to state its support for net-zero emissions by 2050 and "engage in sustain and constructive advocacy in support of the US target to achieve net-zero emissions by 2050" and state its support for ending routine flaring by 2030 or sooner.

In January 2021, France's TotalEnergies quit the API citing its own policy disagreements with the organisation.


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24/04/22

TotalEnergies takes FID for Oman's Marsa LNG

TotalEnergies takes FID for Oman's Marsa LNG

Dubai, 22 April (Argus) — TotalEnergies has taken a final investment decision (FID) for the integrated Marsa LNG bunkering project it is carrying out in Oman with state oil company OQ. The project involves the production of 150mn ft³/d (1.55bn m³/yr) of gas from Oman's onshore block 10, the liquefaction of that gas at a new 1mn t/yr capacity plant to be built at the port of Sohar on Oman's north coast, and the construction of a 300MW solar generation facility that will power the plant. The ambition of the project is to serve as the first LNG bunkering hub in the Mideast Gulf region, showcasing "an available and competitive alternative marine fuel" to reduce emissions coming from the shipping industry. TotalEnergies said today that it expects to begin producing LNG by the first quarter of 2028. That LNG is "primarily intended to serve the marine fuel market in the Gulf", the company said, but all LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and OQ. "We are proud to open a new chapter in our history in the sultanate of Oman with the launch of the Marsa LNG project, together with OQ," TotalEnergies chief executive Patrick Pouyanne said. TotalEnergies holds a majority 80pc stake in the joint venture, with OQ holding the remaining 20pc. "We are especially pleased to deploy the two pillars of our transition strategy, LNG and renewables, and thus support the sultanate on a new scale in the sustainable development of its energy resources," Pouyanne said. TotalEnergies, Shell and OQ formalised an agreement to develop the gas resources in Oman's block 10 in late 2021 . The consortium began producing gas from the Mabrouk North East field in block 10 in January 2023. At the time, the companies said they expected to reach plateau production of 500mn ft³/d by the middle of 2024. But TotalEnergies today said the consortium had already reached plateau this month. As part of the original agreement, Marsa LNG was due to deliver production from the block to the government for 18 years, or until the end of 2039. But the decision by TotalEnergies and OQ to take FID has triggered an extension of Marsa LNG's rights to block 10 until 2050. The planned 300MW photovoltaic solar plant should cover 100pc of the LNG plant's annual power consumption, which will help "significantly" reduce greenhouse gases. "By paving the way for making the next generation of very low-emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy," Pouyanne said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Europe 2.6°C above pre-industrial temperature in 2023


24/04/22
24/04/22

Europe 2.6°C above pre-industrial temperature in 2023

London, 22 April (Argus) — Temperatures in Europe stood at 2.6°C above pre-industrial levels in 2023, data from the World Meteorological Organisation (WMO) show. Europe last year experienced either its joint-warmest or second-warmest year on record, the WMO and EU earth-monitoring service Copernicus found today, in a joint report, European State of the Climate 2023 . The organisations use datasets covering different geographical domains for Europe. WMO includes Greenland, the South Caucasus and part of the Middle East in its dataset. Copernicus put the temperature in Europe last year at between 2.48–2.58°C above pre-industrial levels. The Paris climate agreement seeks to limit global warming to "well below" 2°C and preferably to 1.5°C. Europe is warming roughly twice as fast as the rest of the world. The global average temperature in 2023 was 1.45°C above the pre-industrial average, the WMO said earlier this year . It confirmed 2023 as the hottest on record. Climate scientists use the period 1850-1900 as the baseline for a pre-industrial average. Temperatures in Europe in 2023 were above average for 11 months of the year, and there was a record number of days with "extreme heat stress", the report found. The three warmest years on record for Europe have occurred since 2020, and the 10 warmest since 2007, it said. Electricity generation from renewables in Europe last year reached the highest proportion on record, at 43pc up from 36pc in 2022, the WMO and Copernicus said. Increased storm activity between October-December and above-average precipitation and river flow resulted in higher potential for wind power and run-of-river hydropower generation, respectively. Atmospheric concentrations of CO2 and methane — the greenhouse gases (GHGs) causing the most warming — continued to increase in 2023, "reaching record levels", the report found. It put CO2 concentrations at 419 parts per million (ppm) and methane at 1,902 parts per billion (ppb) on average last year. "Only around half of anthropogenic emissions of CO2 have been absorbed by land vegetation and oceans", the organisations said. GHGs from human activity are driving climate change, but the El Nino weather phenomenon also typically leads to higher temperatures. The El Nino weather pattern, which started in July 2023, peaked in December , the WMO said previously, but could still affect temperatures this year. There is a 60pc chance of La Nina conditions — which typically lead to lower temperatures — developing in June-August, the US National Oceanic and Atmospheric Administration said earlier this month. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US funds $28mn iron, steel decarbonization


24/04/19
24/04/19

US funds $28mn iron, steel decarbonization

Houston, 19 April (Argus) — The US Department of Energy (DOE) released plans to invest $28mn towards decarbonizing iron and steel production for 13 projects spanning nine states. The DOE's Advanced Research Projects Agency-Energy (ARPA-E) will manage the projects under the Revolutionizing Ore to Steel to Impact Emissions (ROSIE) program. The projects will focus on advance zero-process emission ironmaking and ultra-low life cycle emissions steelmaking. Funding will be split between multiple universities and manufacturing companies. States receiving funding include California ($4.01mn), Colorado ($2.87mn), Georgia ($2.84mn), Illinois ($3mn), Massachusetts ($6.16mn), Minnesota ($2.8mn), Nevada ($2.1mn), Pennsylvania ($760,000) and Utah ($3.48mn). The iron and steel industry currently accounts for 7pc of global greenhouse gas (GHG) emissions and 11pc of global carbon dioxide (CO2) emissions with demand projected to rise 40pc by 2050, according to ARPA-E. Following projected metrics by ROSIE, US CO2 emissions could decreased by 65mn tonnes (t), or 1pc. Global emissions could be cut as much as 2.9 gigatonnes, or 5.5pc. By Karly Lamm Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India mulls using more natural gas in steel sector


24/04/19
24/04/19

India mulls using more natural gas in steel sector

Mumbai, 19 April (Argus) — India's steel ministry is considering increasing natural gas consumption in the sector as it aims to lower carbon emissions from the industry. Steelmakers held a meeting with the steel ministry earlier this month, to discuss challenges and avenues to increase gas allocation to the sector, according to a government document seen by Argus . Steel producers requested that the government set gas prices at an affordable range of $7-8/mn Btu for them, to make their gas-based plants viable, as well as for a custom duty waiver on LNG procured for captive power. India's LNG imports attract a custom duty of 2.5pc. City gas distribution firms sell gas at market-determined prices to steel companies. Representatives from the steel industry also requested for the inclusion of gas under the purview of the country's goods and service tax, and to be given higher priority in the allocation of deepwater gas, which has a higher calorific value. Deepwater gas is currently deployed mostly to city gas distribution networks. Steelmakers are currently undertaking feasibility tests for gas pipeline connectivity at various steel plants. But a gas supply transmission agreement requires a minimum five-year period for investment approval. The steel industry is heavily reliant on coal, and the sector accounts for about 8-10pc of carbon emissions in the country. A task force of gas suppliers including IOC, Gail, BPCL, Shell, and HPCL and steel producers like Tata Steel, AMNS, All India Steel Re-roller Association and the Pellet Manufacturers Association has been set up, and the team is expected to submit a report on increasing natural gas usage and lowering carbon emissions by 15 May, the government document said. This team is one of the 13 task forces approved by the steel ministry to define the country's green steel roadmap. The steel ministry aims to increase green steel exports from the country in the light of the policies under the EU's Carbon Border Adjustment Mechanism (CBAM), which will take effect on 1 January 2026. Under the CBAM, importers will need to declare the quantity of goods imported into the EU in the preceding year and their corresponding greenhouse gas emissions. The importers will then have to surrender the corresponding number of CBAM certificates. CBAM certificate prices will be calculated based on the weekly average auction price of EU Emissions Trading System allowances, expressed in €/t of CO2 emitted. This is of higher importance to Indian steelmakers as the EU was the top finished steel export destination for Indian steelmakers during the April 2022-March 2023 fiscal year with total exports of 2.34mn t, and has been the preferred choice for Indian steel exports in the current fiscal year owing to higher prices compared to other regions. Indian steelmakers have started to take steps to lower their carbon emissions by announcing collaborations with technology companies to decarbonise, and are trial injecting hydrogen in blast furnaces, and increasing the usage of natural gas in ironmaking. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Canada furthers investment in GHG reductions


24/04/18
24/04/18

Canada furthers investment in GHG reductions

Houston, 18 April (Argus) — The Canadian government plans to have C$93bn ($67.5bn) in federal incentives up and running by the end of the year to spur developments in clean energy technology, hydrogen production, carbon capture utilization and storage (CCUS) along with a new tax credit for electric vehicle (EV) supply chains. The Canada Department of Finance, in its 2024 budget released on 16 April, said it expects to have the first planned investment tax credits (ITCs), for CCUS and renewable energy investments, in law before 1 June. The ITCs would be available for investments made generally within or before 2023 depending on the credit. The anticipated clean hydrogen ITC is also moving forward. It could provide 15-40pc of related eligible costs, with projects that produce the cleanest hydrogen set to receive the higher levels of support, along with other credits for equipment purchases and power-purchase agreements. The government is pursuing a new ITC for EV supply chains, meant to bolster in-country manufacturing and consumer adoption of EVs with a 10pc return on the cost of buildings used in vehicle assembly, battery production and related materials. The credit would build on the clean technology manufacturing ITC, which allows businesses to claim 30pc of the cost of new machinery and equipment. To bolster reductions in transportation-related greenhouse gas (GHG) emissions, the government will also direct up to C$500mn ($363mn) in funding from the country's low-carbon fuel standard to support domestic biofuel production . Transportation is the second largest source of GHG emissions for the country, at 28pc, or 188mn metric tonnes of CO2 equivalent, in 2021. But the province of Alberta expressed disappointment at the pace of development of ITC support that could help companies affected by the country's move away from fossil fuels. "There was nothing around ammonia or hydrogen, and no updates on the CCUS ITCs that would actually spur on investment," Alberta finance minister Nate Horner said. The incentives are intended to help Canada achieve a 40-45pc reduction in GHG emissions by 2030, relative to 2005 levels. This would require a reduction in GHG emissions to about 439mn t/yr, while Canada's emissions totaled 670mn in 2021, according to the government's most recent inventory. The budget also details additional plans for the Canada Growth Fund's carbon contracts for a difference, which help decarbonize hard-to-abate industries. The government plans to add off-the-shelf contracts to its current offering of bespoke one-off contracts tailored to a specific enterprise to broaden the reach and GHG reductions of the program. These contracts incentivize businesses to invest in emissions reducing program or technology, such as CCUS, through the government providing a financial backstop to a project developer. The government and developer establish a "strike price" that carbon allowances would need to reach for a return on the investment, with the government paying the difference if the market price fails to increase. CGF signed its first contract under this program last year , with Calgary-based carbon capture and sequestration company Entropy and has around $6bn remaining to issue agreements. To stretch this funding further, the Canadian government intends for Environment and Climate Change Canada to work with provincial and territorial carbon markets to improve performance and potentially send stronger price signals to spur decarbonization. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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