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Japan’s J-Power steps up coal-fired power phase-out

  • Market: Coal, Electricity, Emissions, Fertilizers
  • 10/05/24

Japanese power producer and wholesaler J-Power is stepping up efforts to halt operations of inefficient coal-fired power plants, while pushing ahead with decarbonisation of its existing plants by using clean fuels and technology.

J-Power plans to scrap the 500MW Matsushima No.1 coal-fired unit by the end of March 2025 and the 250MW Takasago No.1 and No.2 coal-fired units by 2030, according to its 2024-26 business strategy announced on 9 May. It also aims to decommission or mothball the 700MW Takehara No.3 and the 1,000MW Matsuura No.1 coal-fired units in 2030.

The combined capacity of the selected five coal-fired units accounts for 32pc of J-Power's total thermal capacity of 8,412MW, all fuelled by coal.

While phasing out its ageing coal-fired capacity, J-Power is looking to co-fire with fuel ammonia at the 2,100MW Tachibanawan coal-fired plant sometime after 2030 and ensure it runs on 100pc ammonia subsequently. The company plans to increase the mixture of biomass at the 600MW Takehara No.1 unit, along with the installation of a carbon capture and storage (CCS) technology after 2030. The CCS technology will be also applied to the 1,000MW Matsuura No.2 unit, which is expected to co-fire ammonia, after 2030.

J-Power plans to use hydrogen at the 1,200MW Isogo plant sometime after 2035. The company is also set to deploy integrated coal gasification combined-cycle and CCS technology at the 500MW Matsushima No.2 unit and the 150MW Ishikawa No.1 and No.2 units after 2035.

The company aims to cut carbon dioxide emissions from its domestic power generation by 46pc by the April 2030-March 2031 fiscal year against 2013-14 levels before achieving a net zero emissions goal by 2050. This is in line with Tokyo's emissions reduction target. The company aims to expand domestic annual renewable output by 4TWh by 2030-31 compared with 2022-23, along with decarbonising thermal capacity. Its renewable generation totalled 10.4TWh in 2023-24.

Tokyo has pledged to phase out existing inefficient coal-fired capacity by 2030, which could target units with less than 42pc efficiency. The country's large-scale power producers have reduced annual power output from their inefficient coal-fired fleet by 13TWh to 103TWh in 2022-23 against 2019-20, according to a document unveiled by the trade and industry ministry on 8 May. It expects such power generation will fall further by more than 60TWh to 39.700TWh in 2030-31.

Global pressure against coal-fired power generation has been growing. Energy ministers from G7 countries in late April pledged to phase out "unabated coal power generation" by 2035 or "in a timeline consistent with keeping a limit of 1.5°C temperature rise within reach, in line with countries' net zero pathways".


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14/04/25

Ecuador's Noboa wins reelection with ample margin

Ecuador's Noboa wins reelection with ample margin

Quito, 14 April (Argus) — Ecuador's president Daniel Noboa won reelection in a run-off on Sunday with 56pc of the vote, a wider margin than projected after a tight first-round race in February . Electoral authority (CNE) head Diana Atamaint confirmed the results with 93pc of votes counted. Noboa will hold office through May 2029. Security has topped voters' concerns as gang violence has increased in recent years, and Noboa has vowed a tough approach on crime. He also wants to attract more private-sector investment to Ecuador's energy sector, with hopes of boosting crude production of about 467,000 b/d. His challenger, Luisa Gonzalez, obtained only 44pc, but she did not recognize Noboa's win and has called for a recount. She belongs to the left-wing Revolucion Ciudadana party, sponsored by former president Rafael Correa, a close friend of presidents Nicolas Maduro of Venezuela and Daniel Ortega of Nicaragua. She promised more state-led energy-sector investment. Noboa won with a difference of about 1.1mn votes out of the 10.5mn Ecuadorians that voted, the CNE said. He called the results overwhelmingly in his favor, speaking from his residency in Santa Elena province. He will hold office through May 2029. The Organization of American States (OAS) declared the voting process normal based on the participation of 84 of its observers. None of the 40,000 observers from Gonzalez's Revolucion Ciudadana party or Noboa's ADN party denounced irregularities. Noboa will continue in power with no single party holding a majority in the national assembly, Ecuador's 151-member unicameral congress, based on results from the 9 February congressional and first-round presidential election. Revolucion Ciudadana will have the first minority with 67 members, followed by ADN with 66 members and 18 members from another five parties. Noboa will be sworn in on 24 May. He took office in November 2023 to fulfill the mandate of former president Guillermo Lasso, who dissolved the national assembly in May 2023 and called for anticipated elections. By Alberto Araujo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US MAP-DAP premium primed to return on tariffs


11/04/25
News
11/04/25

US MAP-DAP premium primed to return on tariffs

Houston, 11 April (Argus) — The period of MAP and DAP prices trading near parity will be short-lived because newly-imposed US import tariffs could amplify MAP supply woes, market participants told Argus . MAP and DAP prices have traded in close proximity since early January, diverting from the significant MAP premium seen last spring and summer when a surplus of DAP was imported into the US. After limited MAP barge trading in March, activity accelerated at Nola this week as it became clearer that all non-North American phosphate imports would face at least 10pc import tariffs imposed by President Donald Trump starting last week. The Nola MAP price was assessed at a midpoint of $636.50/st fob this week, up by $9/st from last week, while DAP was assessed $12.50/st higher at $632.50/st fob Nola. Despite the "reciprocal" tariffs on certain phosphate producing countries being lowered to a universal 10pc this week by Trump for 90 days — in line with the original tariff imposed on other countries such as Saudi Arabia and Australia last week — the remaining levy is still enough to deter vessels from coming to Nola, sources said. In response, the Nola MAP price has averaged a $5.75/st premium to the Nola DAP price for April so far, flipping from a $3.88/st average discount in March. That is still a far cry from October 2024, when the Nola MAP price averaged a $61.45/st premium over the Nola DAP. From August through November, the Nola MAP price was 13pc higher on average than DAP. US market participants expect the premium to expand in the coming months as MAP is the preferred product of most farmers during the fall application season, potentially impacting buying decisions for that period. The US from July through February has imported 759,000 metric tonnes (t) of DAP, down by 26pc from the same period last year, according to US Census Bureau data. This lapse in imports for the start of 2025 was an initial driver in DAP's rising premium over MAP. In comparison, MAP imports for the same period have totaled roughly 853,000t, up by just 5pc from the year before. But at least 290,000 t of MAP will need to be brought into the US between now and the start of the summer to equal out with the tonnage imported for the full 2023-24 fertilizer year ahead of fall applications. That is a task that may not be easily achieved given the new tariff on most phosphate imports. One buyer this week said they could consider switching usual MAP demand toward an alternative NPS product heading into October and November given the difficult supply outlook for the US. "We are very much in wait and see mode, trying to see how tariffs evolve and how it works its way into the market in terms of price," another buyer said. The significant premium MAP held last fall also limited overall phosphate applications conducted by farmers, therefore raising the bar for the amount of phosphate fertilizer farmers will need to put into the ground later this year to replenish soil nutrients. By Taylor Zavala US DAP/MAP barge prices Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Q&A: IMO GHG scheme in EU ETS could be 'challenging'


11/04/25
News
11/04/25

Q&A: IMO GHG scheme in EU ETS could be 'challenging'

London, 11 April (Argus) — Delegates have approved the global greenhouse gas (GHG) pricing mechanism proposal at the International Maritime Organization's (IMO) 83rd Marine Environment Protection Committee (MEPC) meeting. Argus Media spoke to ministerial adviser and Finland's head representative at the IMO delegation talks, Anita Irmeli, on the sidelines of the London MEPC meeting. What is your initial reaction to the text? We are happy and satisfied about the content of the agreed text, so far. But we need to be careful. This week, all member states were able to vote. But in October, when adaption will take place, only those states which are parties to Marpol Annex VI will be able to vote if indeed a vote is called for, and that changes the situation a little bit. Here when we were voting, a minority was enough — 40 votes. But if or when we vote in October, then we need two thirds of those party to Marpol Annex VI to be in favour of the text. Will enthusiasm for the decision today remain by October? I'm pretty sure it will. But you never know what will happen between now and and the next six months. What is the effect of the decision on FuelEU Maritime and the EU ETS? Both FuelEU Maritime and the EU ETS have a review clause. This review clause states that if we are ambitious enough at the IMO, then the EU can review or amend the regulation. So of course, it is very important that we first consider if the approved Marpol amendments are ambitious enough to meet EU standards. Only after that evaluation, which won't be until well after October, can we consider these possible changes. Do you think the EU will be able to adopt these the text as it stands today? My personal view is that we can perhaps incorporate this text under FuelEU Maritime, but it may be more challenging for the EU ETS, where shipping is now included. What was the impact of US President Donald Trump's letter on the proceedings? EU states were not impacted, but it's difficult to say what the impact was on other states. By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Q&A: Australia’s Corporate Carbon expands ACCU trading


11/04/25
News
11/04/25

Q&A: Australia’s Corporate Carbon expands ACCU trading

Sydney, 11 April (Argus) — Australian carbon project developer Corporate Carbon has been expanding its trading capabilities around Australian Carbon Credit Units (ACCUs) on the back of growing supply and wider market maturity. Head of carbon trading Angus Robertson spoke with Argus about the latest developments in the market. Corporate Carbon is one of the biggest suppliers of ACCUs. Is it correct that the company has been issued around 15mn ACCUs, counting both fully-owned projects and partnerships, which would be around 10pc of all ACCU issuances since the scheme started in 2011? Yes, that's the approximate number. We've got around 100 projects. In terms of issuance from a mix of owned projects and offtake agreements with other developers and partners in the industry, the approximate forecast is around 3mn ACCUs/yr. We trade around that and then also have capacity to trade outside of our own projects and within the portfolio, plus operating as a trading entity in the secondary market. The company has been one of the main suppliers to private buyers, and to the federal government through carbon abatement contracts (CACs). But you are also buyers. How does that work? The increased capability of our business to both buy and sell is a reflection of the broader Australian carbon market maturing over the last few years. The beginning of the business was very much built off the back of those CACs. As that policy changed over time, allowing for the partial exiting of those CACs , obviously there's been a lot more focus on the secondary market now. We've seen a lot of trading houses, banks and other financial institutions coming into the market, and with that you get a more mature financial market. So in response to that, we've been building out our trading capacity as well as our broader commercial team over the past few years. We take a portfolio approach and we have a large inventory flow to assist with that growing demand, but there are times when we go out to the secondary market and source units on behalf of clients. You recently partnered with trading and risk management firm Ion Commodities to implement their Carbon Zero tool. How does that translate into your trading capabilities? We see Ion's solution as a really effective trading tool and portfolio management system. It reflects our readiness to operate at a larger scale. By providing those tools, it allows us to focus on the strategic goals of the business, especially from a commercial perspective. It is very much a tool for reporting purposes and the automation capabilities of the system assist with that, but it does have a bit of a flow-on effect in terms of efficiency across the business as well. Going to the market, in the short term, it seems to be all about the upcoming federal elections. Do you expect to see much price volatility within the next few weeks? Yes. As we approach the Australian federal election, we would expect there to be a degree of uncertainty, considering the difference in the two major party outcomes in terms of their take on the carbon market. We would see it as positive in either instance, but I think there is still a degree of uncertainty that should lead to perhaps a degree of illiquidity in the market. The market has been also weighed down by a strong issuance of safeguard mechanism credits (SMCs). Were you surprised with that high volume when it was first disclosed by the Climate Change Authority late last year? I think it was the general market consensus that the number was higher than initially forecast, and [ACCU] market prices definitely reflected that in the following weeks and months after those numbers were disclosed. Once the final numbers were released, I think the market had generally already priced that in by that point. Has that changed your internal outlook for when the ACCU market might see an expected shift from oversupply to undersupply? I wouldn't say our internal view has changed all that much. If the majority of that volume is now weighted towards the early years of the safeguard mechanism, policies might reflect that going forward. Now we would probably see ACCU supply as a potential restriction on the market in the short to medium term. Obviously, there's speculation around certain methods in the ACCU market, where higher forecasts were expected over the following next few years and that's now no longer the case. So probably more around supply than demand in terms of our shifted internal views, and this is more from a trading and market perspective as opposed to our actual projects being affected. So it's more on the supply side than demand, even with the high SMC issuances? Well, obviously the market has reacted to those media releases by the regulator around SMCs. So you know that's already happened — you can't really argue that now. Will there be further policy changes around the safeguard mechanism to account for that? That's a bit of an unknown, but it's definitely potential in the following years. And when you talk about supply constraints, is it mostly the delays with the development of the integrated farm and land management methodology , and potentially lower issuances from a reformed landfill gas method? Those are good examples of general delays in certain methods and the creation of new methods. So yes, our expectation is that this could be a big driver on ACCU prices in the next few years. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Malaysia sets new haulier limits at Port Klang


11/04/25
News
11/04/25

Malaysia sets new haulier limits at Port Klang

Singapore, 11 April (Argus) — The Association of Malaysian Hauliers (AMH) — under the transport ministry's directive — hasset operational weight limitson hauliers operating at port Klang effective from 1 May, possibly raising logistical costs for some fertilizer importers. The majority of haulier equipment used at port Klang has a maximum capacity of 38,000kg (38t), and the AMH has set a verified gross mass (VGM) weight limit of 25,000kg (25t). This results in trailers of 20ft and 40ft having a VGM limit of 25,000kg (25t), while side loaders will be imposed a VGM limit of 22,000kg (22t). These new weight limits could increase logistical costs for fertilizer importers, especially those using side loader hauliers, according to one fertilizer importer. Importers could previously load around 24-25t of product, but imposing a weight limit would mean that importers using side loader hauliers must pay for more containers for the same cargo size. Importers typically use side-load hauliers if they are importing large volumes of product, as it is more efficient. But this new regulation is unlikely to affect urea fertilizers as the typical volume for a urea cargo is usually around 21t, the importer said. The limits would more likely impact the loadings of fertilizers like phosphates, NPKs and potash. One NPK producer indicated that this could raise their import costs for incoming cargoes at port Klang by around 10pc. Some Malaysian importers have also indicated that they only ship cargoes in 25t containers and they would not be affected, as the policy is only limited to port Klang and 24t containers. Others have filed complaints to the port Klang authorities and are expecting to receive more feedback next week. By Dinise Chng Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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