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Chile progresses with climate goals ahead of Cop 27

  • Market: Electricity, Emissions, Hydrogen
  • 26/10/22

Chile is pulling out all the stops to boost its climate profile ahead of the key UN conference, writes Emily Russell

Chile will head to the UN Cop 27 conference in Egypt next month at the forefront of Latin American efforts to address climate change. Leftist president Gabriel Boric has pledged to accelerate a "just" energy transition under an "ecological" government that includes climate considerations at the heart of decision making.

The government's decarbonisation plan seeks to double renewable power generation by 2030and turn Chile into a green hydrogen powerhouse. The country's green hydrogen strategy, launched under the administration of centre-right president Sebastian Pinera, who left office in March, will be showcased in Egypt, where Chile expects to sign financing agreements with the World Bank and Inter-American Development Bank to boost the fledgling industry.

Chile's climate change law came into force in June, making it one of 18 countries to legally bind itself to achieving carbon neutrality by 2050. It requires key government ministries to have climate and adaption plans, and for sectoral greenhouse gas emissions limits to be set, with sanctions for non-compliance. "The law will make a very important change to the entire state at the central level and then in all regions and municipal districts," environment minister Maisa Rojas says.

Chile published its long-term climate strategy in 2021. Current efforts are focused on adding 25-30GW of non-conventional renewable energy (NCRE) capacity — which excludes large-scale hydropower — to Chile's total generation capacity of 30GW by 2030 to speed up the closure of the country's coal-fired plants. A government bill would require 40pc of power generators' sales to come from NCRE by 2030, up from 20pc at present, and establish NCRE quotas at night to support long-duration storage systems such as concentrated solar power or pump storage.

NCRE already accounts for 35pc of the national generation mix. Another 3.73GW of solar and 712MW of wind farms are under construction. The challenge is to reduce delays to environmental permitting and ease transmission from the north to the densely populated centre of the country. Congress recently passed a law promoting investment in stand-alone energy storage, which will alleviate grid congestion. Separately, it also last month approved a solid biofuels law to tighten firewood and pellet standards to reduce pollution, mainly in the south.

In the transport sector, the government is adding 1,000 electric buses to Santiago's transport system, more than double the 800 in circulation, and promoting electric taxis. The national electric vehicle strategy, launched in October 2021, aims to end sales of most internal combustion vehicles in 2035, and all by 2045.

Taxing plan

Chile plans to create a carbon certification market next year and increase its low $5/t carbon tax to at least $35/t, as well as potentially expand other fossil fuel taxes. The creation of a national lithium company is also in the works.

Chile, along with Germany, will play a leading role at Cop 27 in talks aimed at obtaining agreements from richer nations to help developing countries fund restitution for extreme weather events, such as flooding and famine. The country will also present its plan for climate change adaption and methane gas reduction. Chile signed the global methane pledge at Cop 26 in Glasgow last year, committing to reducing global methane emissions by 30pc by 2030 from 2020 levels.


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Mexican hydrogen regulatory efforts gain ground


01/11/24
News
01/11/24

Mexican hydrogen regulatory efforts gain ground

Mexico City, 1 November (Argus) — The Mexican hydrogen association (AMH2) has made significant strides in recent discussions with regulators and officials, unveiling a comprehensive roadmap for industrial hydrogen adoption. The group's report estimates there will be demand for about 392,189 tonnes (t) of hydrogen per year across seven major industries during Mexico's pilot hydrogen development phase. This includes sector-specific hydrogen demands of 148,350 t/yr from oil refining through 10 potential applications; 107,325 t/yr for mining; 55,877 t/yr for hydrogen blending in natural gas; 23,932 t/yr in the metals industry; 35,040 t/yr tied to ammonia production; 15,265 t/yr for public transport; and 6,400 t/yr for methanol production. AMH2's strategy urges the administration of President Claudia Sheinbaum to designate a lead ministry for hydrogen development, prioritize green hydrogen production and introduce incentives for project financing, technology development and energy transition initiatives. Additionally, it calls for regulatory adaptations to facilitate hydrogen's integration into Mexico's natural gas infrastructure, including quality, transportation, distribution and safety standards, especially for industrial equipment. Legal reforms to support hydrogen development will also be needed, according to the report, targeting laws governing mining, water, hydrocarbons, nuclear energy, energy transition, environmental protection, electric power, bioenergy and geothermal power. For green hydrogen — generated with renewable energy — the focus would be on the latter five areas. These efforts align with Mexico's long-term energy plan (Prodesen 2023-2037), which envisions converting 12 combined cycle power plants, totaling 1.024GW, to operate on a 70pc natural gas and 30pc hydrogen blend between 2033 and 2036. AMH2 president Israel Hurtado said although Mexico's pipeline infrastructure could handle up to a 15pc green hydrogen blend, achieving a 30pc blend would require further technological advances expected over the next decade. Prodesen also identifies regions for hydrogen injection into pipeline networks, including Sonora, Sinaloa, Tamaulipas, Oaxaca, Veracruz, Baja California and the Yucatan peninsula. Yet new regulations will be crucial to establish a robust framework for hydrogen blending in existing infrastructure. The Sheinbaum's administration has committed to reducing carbon emissions and promoting clean energy, Hurtado said, with a $13.5bn investment pledge in renewables over six years and a target for 45pc of national power from renewables by 2030. AMH2 has built early connections with Sheinbaum's team, including Jorge Islas, her energy and climate advisor during the campaign, who now heads the energy ministry's (Sener) energy transition unit and supports green hydrogen initiatives. AMH2 leaders also recently met with energy regulator (CRE) president Leopoldo Melchi and commissioner Walter Jimenez, who expressed strong interest in hydrogen regulation. The association and CRE agreed to form a technical workgroup to develop clean hydrogen regulations collaboratively. Looking ahead, AMH2 plans to meet with energy minister Luz Elena Gonzalez and Mexico's economy ministry to further discuss the hydrogen strategy. But CRE's workgroup is on hold pending potential legislative reforms that could reorganize Mexico's energy regulators under Sener's supervision. Projects in development AMH2 has identified 16 hydrogen projects in Mexico, with eight in various development stages and eight announced. Primarily focused on green hydrogen, these projects represent an estimated $19bn investment. The largest, Helax, is a $10bn green hydrogen production facility in Oaxaca, connected to the Interoceanic Trans-Isthmus Corridor. AMH2 anticipates production to start within two years following initial permitting. The roadmap suggests that, even if only six projects are operational by 2030, the sector could generate 3.351GW and attract $1.8bn in investments. These projects are projected to bring in $2.5bn in revenue over six years and yield $1.9bn in tax contributions. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Latin America mulls nuclear power revival


01/11/24
News
01/11/24

Latin America mulls nuclear power revival

New York, 1 November (Argus) — Nuclear power is gaining traction in Latin America as countries see small modular reactors (SMRs) as options for remote regions that are not connected to power grids. "The advent of SMRs are behind Latin America's new interest in nuclear energy, because they do not need to be large and do not require large investments," said Modesto Montoya, a nuclear physicist and former president of the Peruvian Institute for Nuclear Energy. Nuclear power is not a prevalent source of electricity in Latin America, producing around 2pc of the region's power consumption. There are seven nuclear power plants with a total capacity of 5.07GW in operation in the region, located in Argentina, Mexico and Brazil. Argentina has a 32MW SMR plant under construction. But the role of nuclear could increase in the region. Argentina, Brazil and Mexico are providing technical advice to countries that are considering including the technology in their power systems. Earlier this month, El Salvador approved a nuclear energy law and signed a memorandum with the Argentinian government for scientific and technology cooperation for nuclear power. Daniel Alvarez, director of the Agency for Implementation of the Nuclear Energy Program in El Salvador, told Argus that the country was "following the book to develop nuclear power. We want to convert El Salvador into a nuclear country." The country needs to replace fossil fuels as half of the country's power capacity is fueled by bunker fuel. It has 204MW of geothermal capacity installed and, while solar energy is possible, the country's size limits the amount of physical space to add large solar plants. The government's plan is to have a research reactor and 400 people trained to manage a nuclear plant within seven years. The next step would be the construction of SMR. "We have to include alternatives for power generation and SMRs are a very good option. We want to include them in our transition to 2050,"Alvarez said. SMRs are also seen as a solution to the energy problem in the northern jungle city of Iquitos, in Peru, energy and mines minister Romulo Mucho said. It is one of the world's largest cities that is not accessible by road and not connected to the national grid, relying primarily on fuel oil for power generation. Peru has had experience with nuclear technology since 1988, when it opened the nuclear research facility, RASCO. Neighboring Bolivia has been working on a small nuclear program since the previous decade with Russia's Rosatom. It has a center for nuclear medicine and is finishing a small research reactor. Ronald Veizaga, deputy minister of electricity and renewable energies, said Bolivia began the program to improve medical treatment for cancer, but has changed gears. "Critics claim SMRs are expensive, but it is more expensive to have blackouts affecting your population and industry," he said. Traditional nuclear Paraguay is considering a more ambitious path, looking at a traditional nuclear plant. "We need to make political decisions if we want to explore a SMR or a large-scale plant to generate 1GW or more," said Jorge Molina, executive secretary of Paraguay's Radiology and Nuclear Authority. Paraguay could work with Argentina and Brazil to create a regional platform. "Our idea is part of regional integration. Our neighbors are already helping us develop our regulations," he said. But the construction of nuclear plants comes with challenges including high costs, time, labor and materials. Brazil began work on the 1.4GW Angra 3 nuclear plant in 1984 but works have been halted and resumed several times since then. The plant is roughly 67pc complete and has been in limbo since 2015. The country's Bndes development bank recently concluded that abandoning the construction of the project would be less costly than completing it. By Lucien Chauvin Countries with installed nuclear capacity in Latin America GW Country Capacity Argentina 1.64 Brazil 1.88 Mexico 1.55 — Ons, Cammesa, Cenace Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Japan's Hibikinada biomass unit to trial runs in Jan


01/11/24
News
01/11/24

Japan's Hibikinada biomass unit to trial runs in Jan

Tokyo, 1 November (Argus) — Japan's 112MW Hibikinada biomass plant, which is being converted from coal and biomass co-firing to biomass-only combustion, will trial run in January 2025. The plant in southern Japan's Fukuoka prefecture, which is held by housing and energy company Daiwa House Industry, will conduct test runs to examine if exhaust gas coming from biomass-only operations can meet environmental regulations and verify that the modified boiler can be stably operated. The construction for conversion started in April and nitrogen injection systems for preventing fires have already been installed. Daiwa will resume conversion works in mid-2025 after evaluating results from the first test runs, and complete it by April 2026. It aims to start biomass-only combustion operations around April 2026 to generate 980 GWh/yr of electricity. Of this, 30pc will be sold under Japan's feed in tariff (FiT) scheme while the company is considering other ways to sell the remaining 70pc, including long-term power purchase agreements (PPAs) and electricity capacity auctions. The plant started operations as a coal and biomass co-firing power plant in February 2019, burning 70pc of coal and 30pc of imported wood pellets. Daiwa bought the operating company in January 2023 and announced it will convert the project to biomass-only combustion in April 2023, then halted operations in April 2024 for conversion. It will burn up to around 450,000 t/yr of wood pellets after converting to biomass-only combustion. Daiwa is aiming to develop more than 2,500MW of renewable energy capacity around 2030, including solar, wind, hydro, and biomass-fired power generation. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US biofuel feedstock use dips in August


31/10/24
News
31/10/24

US biofuel feedstock use dips in August

New York, 31 October (Argus) — Renewable feedstock usage in the US was down slightly in August but still near all-time highs, even as biomass-based diesel production capacity slipped. There were nearly 3.5bn lbs of renewable feedstocks sent to biodiesel, renewable diesel, and sustainable aviation fuel production in August this year, up from fewer than 3bn lbs a year prior, according to the US Energy Information Administration's (EIA) latest Monthly Biofuels Capacity and Feedstocks Update report. August consumption was 0.4pc below levels in July and 0.5pc below record-high levels in June. US soybean oil consumption for biofuels rose to 39.3mn lbs/d in August, up by 2.1pc from a year earlier on a per-pound basis and up 6.9pc from a month prior. The increase was entirely attributable to increased usage for renewable diesel production, with the feedstock's use for biodiesel slipping slightly from July. Canola oil consumption for biofuels hit 14.2mn lbs/d, up by 58.1pc from a year prior on a per-bound basis but still 19.4pc below record-high levels in July. Distillers corn oil usage, typically less volatile month-to-month than other feedstocks, bucked that trend to hit a high for the year of 13.6mn lbs/d in August. That monthly consumption is up 13.6pc from a year earlier and 20.9pc from a month earlier. Among waste feedstocks, usage of yellow grease, which includes used cooking oil, rose to 22.4mn lbs/d in August, up 13.8pc from levels a year prior and 5.8pc from levels in July. Tallow consumption for biofuels was at 18.6 mn lbs/d over the month, an increase of 27.8pc from August last year but a decrease of 13.4pc from July this year. Production capacity of renewable diesel and similar biofuels — including renewable heating oil, renewable jet fuel, renewable naphtha, and renewable gasoline — was at 4.6bn USG/yr in August, according to EIA. That total is 24.1pc higher than a year earlier and flat from July levels. US biodiesel production capacity meanwhile declined to fewer than 2bn USG/yr over the month, down by 4.3pc from a year earlier and 1.3pc from a month earlier. US biomass-based diesel production capacity has expanded considerably in recent years, but refiners have recently confronted challenging economics as ample supply of fuels used to comply with government programs has helped depress the prices of environmental credits and hurt margins. The industry is also bracing for changes to federal policy given this year's election and a new clean fuel tax credit set to kick off in January. That credit, known as "45Z", will offer a greater subsidy to fuels that produce fewer greenhouse gas emissions, likely encouraging refiners to source more waste feedstocks over vegetable oils. That dynamic is already shaping feedstock usage this year, with Phillips 66 executives saying this week that the company's renewable fuels refinery in California is currently running more higher carbon-intensity feedstocks ahead of a shift to using more waste early next year. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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