Brazil expects R2 trillion in energy transition
Brazil launched its national policy for energy transition, expecting to attract R2 trillion ($364.2bn) in investments in the area over the next 10 years, according to energy minister Alexandre Silveira.
The policy establishes guidelines for the country's energy transition, Silveira said, adding that Brazil will be a leader of the green economy. "[The policy] involves wind, solar, hydro, biomass, biodiesel, ethanol, green diesel, carbon capture and storage, sustainable aviation fuel, green hydrogen," he said. "It is an opportunity to boost local production."
The two-pronged policy includes the national energy transition plan, which will work alongside other government initiatives, such as the growth acceleration program, the climate plan, new industry Brazil and the pact for ecological transformation. It will also count with the support of the International Energy Agency, Brazil's development bank Bndes, energy research firm Epe and the Getulio Vargas Foundation research institute.
The national energy transition plan will focus on getting support from industry participants in the transportation, electrical, mineral and oil and natural gas sectors, and creating legal and regulatory frameworks, to "combat energy poverty and inequalities and create an attractive environment for investments."
The second prong is the national energy transition forum, in which public and private sector participants will get a chance to debate and contribute to the policy.
Brazil's national energy policy council CNPE approved the plan in a meeting on Monday with President Luiz Inacio Lula da Silva and ministers such as Silveira, environmental minister Marina Silva and finance minister Fernando Haddad.
"We are looking to the future," Silveira said. "The energy transition must be fair, inclusive and balanced."
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Coal developments at odds with Cop fossil fuel pledge
Coal developments at odds with Cop fossil fuel pledge
London, 27 August (Argus) — Coal market developments, particularly in India and China, are at odds with the direction of recent UN climate summits, including Cop 28 in Dubai last year, which set the stage for the "beginning of the end" for the fossil fuel era. Despite calls to accelerate the phase-down of unabated coal-fired power generation, global coal trade is set to reach a record high of more than 1.5bn t this year, surpassing last year's 1.38bn t. Coal-fired power is likely to remain resilient, supported by higher electricity demand growth in China and India, according to energy watchdog the IEA. A total 15.6GW of coal-fired power capacity was added in the first half of this year, mostly in Asia-Pacific. This was far more than the 12GW that retired globally over the same period, and does not account for an additional 227.5GW that was still under construction as of the end of June, according to US-based Global Energy Monitor. Current global operational capacity of 2.12TW is down only slightlyfrom 2023's record 2.13TW. China and India's intentions for coal are key for global climate goals — they account for 203GW of the capacity under construction — but Beijing and New Delhi unsurprisingly watered down a coal deal at Cop 26 in 2021. China has not set a new nationally determined contribution, or climate plan, since 2021, but it is expected to ramp up its ambitions in a new plan by the start of 2025. It admitted its heavy dependence on coal is straining its environmental goals.China's coal imports grew by 12pc on the year to a record high in January-June. China's coal-fired generation increased by 1.5pc on the year to 3,000TWh in the first half of 2024, Argus data show, although solar and hydropower output also rose. Assuming a stronger rebound in hydropower generation over the rest of this year, China's coal-fired generation could be static or fall slightly, according to the IEA. And China last month announced its plans to explore co-firing renewable ammonia and biomass at its coal-fired plants, as well as carbon capture, utilisation and storage for some projects by 2025. India's coal-fired generation will remain robust and is likely to increase by 7pc this year, according to the IEA. The country experienced a prolonged heatwave in the first half of this year, causing coal-fired generation to rise by 10pc to 676TWh over the period, according to Argus data. The IEA expects higher renewable power output in India will limit the increase in coal-fired generation to 2pc in 2025. Vicious cycles? India and Indonesia are strongly encouraging higher coal production to ensure energy security. In tandem, record temperatures and a prolonged heatwave across most of Asia has boosted power demand this year, straining grids and causing power cuts. Vietnam is also an increasingly important consumer and is set to become the third-largest coal importer by 2035 — behind only China and India. Vietnam has 27.2GW of operating coal-fired capacity at present, and an additional 6GW is in the pipeline. Coal continues to play a key role in the country's $15.8bn Just Energy Transition Partnership plan, which is supposed to help decarbonise its economy. Peak power demand is met by coal in Vietnam, India, Indonesia and China. Unlike in Europe, where the coal-fired fleet is older, it is harder to make an economic case for retiring Asia-Pacific's newer plants, and the region's grids do not yet have the flexibility to replace base-load power. This year has brought some progress in developed economies, with G7 leaders committing to a coal phase-out by 2035. But no concrete policies have been passed, and the countries limited themselves to calling for reducing coal use "as much as possible" — providing room for manoeuvre for Germany, Japan and the US. By Ashima Sharma and Joseph Clarke Global coal-fired capacity TW Global coal capacity additions, retirements MW Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Germany offers CCS support for mid-sized industrials
Germany offers CCS support for mid-sized industrials
Berlin, 23 August (Argus) — A €3.3bn funding programme to help mid-sized companies to decarbonise their processes was announced by Germany's economy ministry today, including through carbon capture and storage/use (CCS/CCU) technologies. The programme "closes the gap to mid-sized companies" and will complement the carbon contracts for difference already in process for larger industrial firms, federal minister of economic affairs and climate action Robert Habeck said. There will be annual calls for funding until 2030, with the first call scheduled for September. Companies will then have three months in which to submit their projects. The programme will be financed by Germany's climate and transformation fund KTF. Given recent intergovernmental spats over next year's budget, Habeck stressed today that this funding is secure and undisputed within the three-party governing coalition. The programme provides two modules. The first, which continues and expands an expired funding programme, addresses companies aiming to invest in, or research, new production processes that will cut CO2 emissions by at least 40pc. Investment costs must be at least €500,000 for smaller companies, and at least €1mn for larger companies. Funding is capped at €200mn for each company. Up to 30pc of investments will be funded, with smaller companies getting an extra 10pc or 20pc, depending on their size. Companies will typically come from the chemicals, foundry, glass or paper industries, the ministry said. The second module will support investments in CCS/CCU. Investment projects will be eligible for funding of up to €30mn, while industrial research projects may get up to €35mn. Reflecting the government's carbon management strategy passed in May, funding will be restricted to "hard to avoid" CO2 emissions. In the first call for funding, eligibility will be restricted to investment projects from the lime, cement and thermal waste treatment sectors, with applications for research projects also permissible from the basic chemicals, glass and ceramics sectors. Germany's waste sector has repeatedly stressed the need for financial support to invest in CCS, given high costs and the volatile EU emissions trading system price. There is currently one small CCS pilot at a waste plant in Germany, developed by Helmstedt-based firm EEW, a former lignite producer. Germany's highest emitters, mainly from the steel industry, have their own company-specific and EU-flanked support programmes. Germany expects to emit around 60mn-130mn t of CO2 equivalent/yr from 2045, the year it plans to become carbon-neutral. Germany's cement industry suggested in a recently published study that by 2030, about 6.5mn t CO2 could be sequestered in Germany, of which the lion's share would be 4.1mn t of fossil CO2 from the cement industry. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Greece set to miss EU goal for green H2 use in industry
Greece set to miss EU goal for green H2 use in industry
Hamburg, 23 August (Argus) — Greece has further reduced its 2030 goal for installed electrolysis capacity, which suggests the country will miss an EU target for renewable hydrogen use in industry. A new national energy and climate plan (NECP) put forward for consultation by the interior ministry sets a goal of 187MW installed electrolysis capacity by 2030. This follows several revisions over the past two years. An initial 2021-30 NECP from January 2023 set a target of 1.2GW . This was raised to 1.7GW by August that year, but slashed to just 300MW in November. That sharp cut followed an assessment that previous targets had been too high, considering Greece's ability to produce and consume renewable hydrogen by the end of the decade. Previous iterations of the NECP had considered injections of renewable hydrogen into the natural gas grid, which have since been deemed too expensive. Renewable hydrogen use in Greece is now foreseen to be limited almost exclusively to production of synthetic fuels for shipping and aviation until 2030. The government expects around 1 TWh/yr of hydrogen will be needed for this, equivalent to just over 30,000 t/yr based on hydrogen's lower heating value of 33.33 kWh/kg. It could be difficult to produce this amount with just 187MW of electrolyser capacity, especially as the plan foresees a small additional amount would be required to fuel buses in Athens and Thessaloniki. The ministry was not immediately available to comment on how the electrolyser and production targets align. Off target The synthetic fuel production could allow Greece to meet EU targets for use of renewable hydrogen or derivatives in transport, but the NECP suggests it will not meet the bloc's goal for industry use. The EU requires member states to ensure 42pc of industrial hydrogen use is renewable by 2030 . Greece's NECP does not consider any renewable hydrogen use that would count towards the industry targets by then. This is despite the country currently using around 700-1,050 GWh/yr of conventional hydrogen — made from natural gas with unabated emissions — for ammonia production, some of which would arguably have to be replaced by renewable hydrogen to meet the target. Greek refineries use conventional hydrogen, but most of this would be covered under EU targets for transport rather than for industry. Emissions at refineries will be reduced primarily by switching to 'blue' hydrogen that uses carbon capture and storage, rather than renewable supply, according to the NECP. Previous iterations of the NECP had mentioned the EU's 42pc target for 2030, but the new plan makes no such reference. The ministry instead states broadly that goals set by the EU "are not certain to be achievable" given a lack of maturity with regard to renewable hydrogen. By 2035, member states will have to reach 60pc of renewable hydrogen use in industry. Greece could be able to comply with this based on the NECP projections, with 700 GWh/yr use for ammonia production anticipated by then. Required electrolyser capacity is expected to rise to 680MW by 2035 and to more than 5GW by 2050 ( see table ). By 2035, the renewables share in Greece's electricity mix could reach 90pc, which would make it easier for grid-connected electrolysis projects to comply with the EU's definition of renewable hydrogen as it would remove requirements such as additionality and the need for power purchase agreements. Greece does not expect to require renewable hydrogen imports and could export into Europe in the long-run through two planned pipeline connections in the country's north, according to the NECP. It stops short of providing estimates for export potential, pointing to uncertainties around technological developments and demand. Carrots and sticks Athens wants to support the hydrogen sector through subsidies for production of renewable hydrogen and derivatives that could include demand-side incentives such as tax exemptions. The European hydrogen bank's auction-as-a-service system could be used for production support, but the NECP leaves open the possibility of other mechanisms. Mandated quotas for renewable hydrogen consumption in transport or industry could be "an effective mechanism" for reaching demand targets, but only once "the relevant applications" have reached "technical and economic" maturity, according to the NECP. The government is concerned about increases in consumer prices given the considerably higher costs for cleaner fuels. It points to potential detrimental effects on the tourism industry — which accounts for 13pc of gross domestic product — if the cost of airfares and coastal shipping increases significantly. Greece renewable H2 projections 2030 2035 2040 2045 2050 Injections into gas grid in TWh/yr 1.0 3.7 6.5 12.1 20.2 Of which: Heavy transport 0.0 0.0 0.6 1.1 1.9 Synthetic fuels 1.0 2.8 5.0 7.8 15.0 Ammonia production 0.0 0.7 0.8 3.0 3.2 Injections into gas grid 0.0 0.1 0.1 0.1 0.1 Electrolysis capacity in MW 187 680 1,232 2,347 5,188 - government Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indonesia’s Pertamina gets ISCC certification for SAF
Indonesia’s Pertamina gets ISCC certification for SAF
Singapore, 23 August (Argus) — Indonesia's state-owned Pertamina has obtained International Sustainability and Carbon Certification (ISCC) Corsia and ISCC EU RED-compliant certification for sustainable aviation fuel (SAF). Pertamina's downstream arm Pertamina Patra Niaga obtained the certification as it is powering a domestic flight with SAF during the Bali International Air Show next month, said company sources. Following the air show, Pertamina also plans to encourage SAF adoption among its aviation customers, starting with those at the Ngurah Rai International Airport in Bali because of its high volumes of international flights. The Ngurah Rai aviation fuel terminal in Bali and Soekarno-Hatta Aviation Fuel Terminal and Hydrant Installation in Jakarta were the first locations to receive the certification. Pertamina's customers will be able to claim reduced carbon emissions resulting from the use of SAF, hydrotreated vegetable oil and used cooking oil (UCO) purchased from the refiner, its director of central marketing and commerce Maya Kusmaya said. He added that Pertamina is the first operator in southeast Asia to market ISCC Corsia certified SAF. But Pertamina's actual SAF production from palm and waste-based feedstocks such as UCO and palm oil mill effluent oil is likely to still start around 2026, when the second phase of its Cilacap "green refinery" is commissioned and comes on line, said a company source. It [previously produced SAF] (https://direct.argusmedia.com/newsandanalysis/article/2251914) and renewable diesel at its Cilacap and Dumai refineries but using refined, bleached and deodorised palm oil. Pertamina awarded in July its first SAF import tender seeking 3,500 kilolitres of blended SAF for end-August delivery. The volumes will likely be used at the Bali International Air Show. The tender stated the blended SAF has a 30-40pc neat SAF component and the cargo must be Roundtable on Sustainable Biomaterials, ISCC Corsia or EU certified. Indonesia's government had expressed at the end of May hopes to finalise a national roadmap and action plan for the industrial development of SAF by June. But there have been no updates so far, sources from Pertamina and another trader said. The country previously shared plans to announce a SAF roadmap-related presidential regulation on the sidelines of September's air show with no further details disclosed. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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