Green fuel supply needs a boost: Danish Shipping

Market: Hydrogen, Oil products
19/03/25

Production of zero-emission fuels needs to be increased to a level which will lower the cost of buying the fuel and help accelerate the transition to green fuels, according to Danish Shipping in a new report.

Consumption of zero-emissions fuels needs to reach 27pc of total energy consumption by 2036 and 93pc by 2046 to reach the maritime industry's goal of net-zero emissions by 2050, Danish Shipping, an industry trade group, said in the new report listing 10 recommendations on how Denmark's government can increase green fuel production.

The Danish government should allocate a larger share of projected revenue from the EU Emissions Trading System (EU ETS) for producing zero-emission fuels, Danish Shipping said.

About 3.8bn Danish krone ($555mn) of annual revenue is expected from the Danish shipping industry to fund EU ETS once it is fully implemented next year, according to the report.

"Revenue from the EU ETS could be effectively used as an earmarked support scheme for shipping's green transition – covering both fuel production and offtake," Danish Shipping said.

The FuelEU maritime regulation requires ship operators traveling in, out and within EU territorial waters to gradually reduce their GHG intensity on a lifecycle basis, starting with a 2pc reduction in 2025, 6pc in 2030, reaching an 80pc reduction by 2050, compared with 2020 base year levels.

The Danish government should also set up financial mechanisms to support green shipping, Danish Shipping said, like establishing competitive bids for contracts and sending money to the EU hydrogen bank and EU Innovation Fund that would go towards green fuel production projects.

The government should set up green shipping corridors in the North and Baltic seas. According to Danish Shipping, this would help make the Nordic region a leader in green shipping and incentivize suppliers, port authorities and shipping companies to transition to zero-emission fuel.

Singapore and Rotterdam have set up green shipping corridors to facilitate green shipping for vessels travelling between those ports.

By Luis Gronda

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28/03/25

UK EAC to explore airport expansion, net zero conflict

London, 28 March (Argus) — UK parliament's cross-party environmental audit committee (EAC) has begun an inquiry into whether the country's airport capacity expansion could be achieved in line with its climate and environment targets. "The aviation sector is a major contributor to the UK's carbon emissions, and on the face of it, any expansion in the sector will make net zero even more elusive," EAC chair Toby Perkins said. Any expansions must meet strict climate and environment commitments, the UK government has said. The government in January expressed support for a third runway at London's Heathrow airport — the country's largest. UK transport minister Heidi Alexander said in February that she was "minded to approve" an expansion at London's Gatwick airport, ahead of a final decision in October. The expansion would involve Gatwick making its northern runway operational. It is currently only used as a back-up option. The government is also "contemplating decisions on airport expansion projects at London Luton… and on the reopening of Doncaster Sheffield," Perkins said. "It is possible — but very difficult — for the airport expansion programme to be consistent with environmental goals," Perkins said. "We look forward to exploring how the government believes this can be achieved." The UK has a legally-binding target of net zero emissions by 2050. Its carbon budgets — a cap on emissions over a certain period — are also legally binding. The government must this year set levels for the UK's seventh carbon budget , which will cover the period 2038-42. The committee has invited written submissions on the possible airport expansions and net zero, with a deadline of 24 April. It will report in the autumn. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US H2 projects stall, incentives fall short: Technip

28/03/25

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28/03/25

US H2 projects stall, incentives fall short: Technip

London, 28 March (Argus) — Many US hydrogen project developers have paused or cancelled plans after finding costs were too high and government incentives were insufficient, even before President Donald Trump's return to the White House added uncertainty, Paris-listed contractor Technip Energies has said. Developers rushed to hire contractors for project studies in 2022-23 in a wave of optimism after the US announced tax credits for hydrogen production , but many projects were shelved or suspended between the end of 2023 and mid-2024. This came as companies realised the true cost of many items not limited to CO2 capture, hydrogen storage, and hydrogen liquefaction, Technip Energies' director Randy Kessler said. Multiple developers hired Technip for feasibility studies and engineering designs so it witnessed the drop-off in project plans first hand, Kessler said. Renewable hydrogen projects faced the most challenges, but gas-based projects with carbon capture and storage (CCS) "did not fare too well either", Kessler said. "Nearly all" renewable hydrogen projects were suspended when true capital and operating costs became known, especially compared with conventional 'grey' hydrogen, Kessler said. "Economics generally prevail in the long run, and at 5-8 times the cost of grey H2 production, most big players and project developers found out the incentives did not cover the gap," he said. Most of Technip Energies' clients pursuing CCS-enabled projects eventually asked for estimates for conventional grey hydrogen plants, with "pre-investment" to add CO2 capture units in the future, Kessler said. Washington made matters worse for developers with "confusing" incentives and delays in finalising eligibility rules for the tax credits, which it only settled on in early 2025 , just weeks before the change in administration. "The people who made money were the consultants who told people what it all meant," Kessler said. The late-2024 US election became both an "issue" and an "an excuse" for developers to explain the lack of progress, Kessler said. Many US firms complained that political uncertainty during the election period hampered their business decisions. Politically powerful energy companies lobbying Washington for "appropriate levels of incentives to cover the gap" or relaxing tax credit rules to lower project costs would be the most likely way to revive the sector, Kessler said. The US could consider setting mandates, but this is unlikely unless there is "more global buy-in", he said. Few regions, aside from the EU, have proposed mandates, and even there they have not been firmly implemented. But US firms and industrial groups are focusing lobbying efforts on protecting the hydrogen tax credits rather than quibbling over the rules, US sources said. The return of Trump to the White House made the future of the tax credits less certain because of his preference for boosting US fossil fuel output over investing in clean energy. Another contracting firm, Black & Veatch, recently said it was unsurprised to see many speculative projects fall by the wayside, and that the best route forward is better quality and modestly-sized projects with clear offtakers. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Oil, biofuel groups meet to align on RFS policy

27/03/25

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27/03/25

Oil, biofuel groups meet to align on RFS policy

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US mulls cutting funds to H2 hubs outside of GOP states

27/03/25

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27/03/25

US mulls cutting funds to H2 hubs outside of GOP states

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"I don't see any change to the agenda of 45V, that effort is primary," said Wolak. "I see an effort perhaps arising to define the hubs and the merit of the hubs rising parallel to the 45V effort." FCHEA is advising its members that may be affected by hub funding cuts to contact their congressional representatives, Wolak said. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Repsol to begin Nantes bitumen terminal flows in April

27/03/25

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27/03/25

Repsol to begin Nantes bitumen terminal flows in April

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