US seeks to allow carbon storage on federal land
President Joe Biden's administration is advancing a proposal to allow carbon capture and storage (CCS) on millions of acres of federal land owned by the US Forest Service.
The proposed rule, published Friday, would open up the possibility of siting carbon storage projects on the 193mn acres of federal land in 44 states managed by the Forest Service. The regulation could support the Biden administration's push to expand the use of CCS, a technology that captures CO2 and then stores it deep underground in subsurface geological formations.
The proposal would remove an existing restriction from the Forest Service that blocks projects from having "exclusive and perpetual use" of federal land. Because CCS projects store CO2 for thousands of years, the agency said the restriction needs to be removed for projects to advance. Projects would still be subject to other permitting requirements and environmental reviews.
The US has seen a surge of interest in CCS as developers try to take advantage of $12bn in new funding from the 2021 infrastructure law and the expansion of the "45Q" tax credit that pays up to $85/metric tonne of CO2 that is stored in geologic formations. The Inflation Reduction Act also offers tax credits for clean hydrogen and low-carbon renewables fuels that are likely to rely partially on CCS.
But project developers have run into obstacles as they seek regulatory approvals for CO2 pipelines and Class VI injection wells needed for CCS. US Senate Energy and Natural Resources Committee chairman Joe Manchin (D-West Virginia) on Thursday criticized the US Environmental Protection Agency for not yet approving permits for a backlog of 169 carbon injection wells, while at the same time proposing to mandate CCS for fossil fuel power plants.
"Not a single Class VI well has been approved," Manchin said. "At the same time, the administration is more than happy to mandate widespread deployment of carbon capture on gas- and coal-fired power plants."
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Japan faces further delay in nuclear fuel recycling
Japan faces further delay in nuclear fuel recycling
Osaka, 30 August (Argus) — Japan Nuclear Fuel (JNFL) has again extended the start-up of the country's first commercial nuclear fuel reprocessing plant, as it needs extra time to enhance safety features. JNFL, a joint venture of Japanese power utilities, now aims to finish construction of the recycling plant at Rokkasho in north Japan's Aomori prefecture in the April 2026-March 2027 fiscal year, instead of the previous target of "as early as possible" in April-September 2024. The company has also pushed back the completion of building the mixed oxide fuel fabrication plant to 2027-28 from April-September 2024. This is the 27th postponement, far behind its original target of 1997. The repeated delays stemmed from technical issues and safety measures required following the 2011 Fukushima nuclear disaster. Recycling spent nuclear fuel is becoming a critical issue for Japan, as the natural resource-poor country sees the quasi-domestic fuel as an important power source to ensure its energy security and spur its decarbonisation. But the country faces growing constraints on its ability to store radioactive waste, with repeated delays in setting up the reprocessing plant, which may threaten Tokyo's efforts to restart more reactors. Spent fuel has accumulated to 2,968t uranium fuel (tU) at the Rokkasho reprocessing plant, nearing its capacity of 3,000tU. The waste has piled up since 2000 in anticipation of its operation and since shipments to the UK and France by utilities ended in 2001. Japan's overall nuclear waste storage, which has combined capacity of about 24,440tU including Rokkasho's facility, was 81pc full at the end of March 2024, up from 75pc in 2019, according to the trade and industry ministry. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Libyan crude production slips below 600,000 b/d
Libyan crude production slips below 600,000 b/d
Dubai, 30 August (Argus) — Libya's crude output has fallen to below 600,000 b/d, less than half what the country was producing just a month ago, according to figures reported by state-owned oil company NOC. Production has plummeted in recent days after Libya's eastern-based administration announced a blockade on oil output and exports in response to moves by its rival, the Tripoli-based Presidential Council, to replace the central bank governor. Libya produced 591,024 bl on 28 August, NOC said, down from 783,422 bl on 27 August and 958,979 bl on 26 August, NOC said. Production is almost certain to have fallen further on 29-30 August. It represents a more than halving of output in the space of just a month. Production stood at 1.28mn bl on 20 July, NOC said, while Argus assessed the July average at 1.2mn b/d. Total losses over 26-28 August amounted to around 1.5mn bl, worth just over $120mn. NOC said. All of Libya's eastern oil terminals — Es Sider, Ras Lanuf, Zueitina, Marsa el Hariga and Marsa el Brega — received instructions to stop operations at 15:00 local time on 29 August, according to port agents in the country. Some tankers have managed to load crude since the blockade was announced at the start of the week. The New Amorgos and Ohio loaded at Zueitina and Es Sider, respectively, and have since sailed from the country. Five more tankers were scheduled to load crude in the country from today, according to Kpler tracking, four of them in the east. The clash between the rival east and west political factions in Libya had been brewing for over week before the blockade announcement. The eastern-based Libyan National Army (LNA) has imposed several politically motivated oil blockades in the past few years. The LNA ordered the shutdown of the El Sharara field earlier this month, resulting in the loss of around 250,000 b/d of output. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia's Qantas records higher fuel costs in 2023-24
Australia's Qantas records higher fuel costs in 2023-24
Singapore, 30 August (Argus) — Australian airline Qantas Airways recorded a higher fuel bill in the 2023-24 fiscal year to 30 June, as more flights, sustainable aviation fuel (SAF) expenses and carbon offset programmes weighed on costs. Qantas saw its fuel costs rise by 17pc from a year earlier to A$5.32bn ($3.62bn) in 2023-24, according to the company's full-year financial results released on 29 August. The airline group's passenger carrying capacity was up by 21pc on the previous year, with growth in domestic and international capaicty. This saw the group's overall fuel consumption grow to 29mn bl (79,000 b/d), or 18pc up on the previous year. Qantas expects fuel costs in the first half of 2024-25 to remain stable from a year earlier at about A$2.7bn, including hedging and gross carbon costs, with the group forecasting to consume 15.6mn bl of fuel, including SAF. Qantas forecasts domestic group capacity to rise to 104pc of pre-Covid 19 pandemic capacity in the first half of 2024-25. Its international capacity guidance, excluding Jetstar Asia, is expected to rise by about 16pc from the previous year to achieve 102pc of pre-Covid levels in the first half. The group's passenger carrying capacity, measured by available seat kilometres (ASKs), was up on a year earlier by 21pc to 141mn ASK by 2023-24, although this was still about 93pc of pre-Covid levels. Qantas has agreements to offtake SAF, renewing its agreement to buy SAF for flights out of London Heathrow and doubling the size of its corporate customer SAF programme in 2023-24. But the group saw its 2023-24 profit fall, with underlying profit before tax down by 16pc on the previous year to A$2.08bn. By Cara Wong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India lifts curbs on use of sugarcane juice for ethanol
India lifts curbs on use of sugarcane juice for ethanol
Mumbai, 30 August (Argus) — The Indian government is allowing sugar mills and distilleries to use sugarcane juice and sugar syrup to produce ethanol during the November 2024-October 2025 supply year. The government in December last year halted the use of sugarcane juice and sugar syrup for ethanol production in the 2023-24 supply year, as insufficient rainfall in key growing regions led to a surge in domestic sugar prices and a shortage of the sweetener. Sugar mills and distilleries can also produce ethanol from B-heavy and C-heavy molasses. The food ministry's order added that it will, in co-ordination with the oil ministry, periodically review the diversion of sugar to ethanol production in relation to the production of sugar in the country to ensure the availability of sugar for domestic consumption throughout the year. The government also allowed the Food Corporation of India to sell rice to distilleries for ethanol production during August-October but capped the limit at 2.3mn t of rice. India had suspended supplies of excess rice to distilleries for ethanol production in July 2023 because of food availability and concerns about rising prices. Distilleries will be allowed to load rice during August-October subject to allocation of ethanol to the distilleries by oil marketing companies, the government order said. Of the total ethanol used for blending in gasoline in India, around 61pc comes from B-heavy molasses, 20pc from sugar syrup, 11pc from surplus rice, 6pc from damaged food grains and maize and 2pc from C-heavy molasses. India has a set a goal to increase ethanol blending in gasoline to 20pc by 2025, as part of efforts to reduce its dependence on crude imports. Ethanol blending in gasoline was 13.3pc during November 2023-July 2024 and 15.8pc during July 2024, oil ministry data show. Oil marketing companies buy ethanol from ethanol producers like sugar mills and distilleries to blend with gasoline. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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