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UK targets 5GW hydrogen production by 2030

  • Market: Electricity
  • 18/11/20

The UK has set a target of 5GW hydrogen production capacity by 2030.

This will be "low-carbon hydrogen" capacity, so may not necessarily be green hydrogen generated from renewable energy. But industry association RenewableUK welcomed the announcement, saying there was a "clear pathway for offshore wind to produce low-cost renewable hydrogen at scale".

The government plans to invest up to £500mn in hydrogen, with £240mn going to new hydrogen production facilities. The rest will be spent on trialling homes using hydrogen for heating and cooking.

The government also pledged £525mn to "help develop large and smaller-scale nuclear plants, and research and develop new advanced modular reactors".

But it has yet to decide on support for the 3.2GW Sizewell C nuclear plant. Last year, the government opened a consultation on a regulated asset base model for funding new nuclear, which Sizewell's developer, EdF, is seeking. Sizewell could start construction in late 2021 and the project would take 10-12 years to complete.

The UK is struggling to bring a new generation of nuclear stations on line, with Hitachi recently ending work on two projects.


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03/03/25

Japan thermal power capacity to fall despite cold snap

Japan thermal power capacity to fall despite cold snap

Osaka, 3 March (Argus) — Japan's thermal power generation capacity is expected to fall in the week to 9 March, despite the return of colder weather. This would encourage power producers to increase utilisation rates at available thermal units to meet heating demand. The power sector plans to add around 5.2GW of thermal capacity over 3-9 March, with the closure of 9.5GW outstripping the return of 4.3GW, according to Argus' survey based on Japan Electric Power Exchange (Jepx) data. The difference incorporates the net decrease in gas-fired capacity of 3.3GW, coal-fed capacity of 394MW and oil-fed capacity of 1.6GW. Japan's power sector has entered the spring maintenance season, taking advantage of a seasonal fall in electricity demand in line with a gradual rise in temperatures. Large parts of the country experienced warmer than usual weather over the past week. But temperatures are predicted to plunge this week, with the minimum temperatures in central Tokyo forecasted at 2°C on 4 March and 1°C on 5 March, down from the 7.9°C on 2 March, according to the Japan Meteorological Agency. The Tokyo area, as well as the nearby Tohoku area, are expected to secure a 9.8pc surplus in electricity supply for 4 March, still above the ideal reserve level of 8pc, according to a notice released on 28 February by the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). But Occto has called on power producers to prepare to increase output, which it will request if the reserve level falls to 7.5pc at the time of peak demand. Bidding demand for day-ahead contracts on Jepx totalled 1.13TWh for deliveries on 4 March, up by 8.4pc from the previous day, while supplies fell by 2.4pc to 1.07TWh. Deals rose by 5.2pc to 831GWh. Day-ahead system-wide prices averaged ¥18.86/kWh ($125.67/MWh), up from ¥17.01/kWh over the same period. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Energy a priority for Uruguay’s new government


28/02/25
News
28/02/25

Energy a priority for Uruguay’s new government

Montevideo, 28 February (Argus) — Energy will play a central role as Uruguay's new president Yamandu Orsi begins his five-year term on 1 March. Orsi, of the left-wing Broad Front coalition, takes over one of South America's most economically and politically stable countries. The economy is forecast to expand by 3pc this year, above the regional average, and the government wants to attract investment to maintain growth. The energy sector is a priority. Uruguay already has one of the region's cleanest grids, with 99pc of power coming from renewable sources, and in February reached the goal of 100pc electrification nationwide, according to the state-run electric company, UTE. The Orsi administration is studying options for the second phase of the energy transition, which includes adding capacity to meet increasing demand from electrification of transportation and clean fuel production. New finance minister Gabriel Oddone said the administration would focus on reducing red tape and potentially provide incentives for investment in the energy sector. Uruguay currently has close to 5.3GW of installed capacity, with 78pc in renewable sources, for its population of 3.5mn. The UTE, which had a profit of $315mn in 2024, is adding 100MW in wind power in the next two years. The Orsi administration plans to prioritize solar capacity. The new government is keenly following the development of low-carbon hydrogen and e-fuel projects. The most advanced project is for production of 700,000 tonnes (t) of synthetic fuel by Chile's HIF Global and ALUR, the biofuel arm of the state-owned Ancap. Investment is estimated at $6bn, making it the largest planned single investment in the country's history. The company requested approval in January of environmental permits for the project's solar park that would include 1.84mn bifacial solar panels. It would produce a peak of 1,162MW. Construction would take 18 months from approval. The municipal council in Paysandu, in northwestern Uruguay where the project is planned, on 27 February approved a change in land use to facilitate plant construction. Ancap, which lost an estimated $130mn last year because its only refinery was closed for six months, has proposed offshore production of low-carbon hydrogen. The Orsi administration has not yet committed to the project. Reverse transition? The new government will also have to also have to decide on the future of seven offshore exploration blocks, with seismic testing planned for late this year, and the possible construction of a gas pipeline that would link Argentina and Brazil. A pipeline exists from Argentina to Uruguay, but it could be expanded and extended to supply southern Brazil. It would require an additional 415km (258mi) in Uruguay, and around 500km in Brazil's Rio Grande do Sul state. Orsi has taken a wait-and-see attitude toward exploration, while a gas pipeline would likely have more popular support because it could expand service from only a section of the coast to a wider region. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Japanese utility Tepco faces nuclear restart delay


27/02/25
News
27/02/25

Japanese utility Tepco faces nuclear restart delay

Osaka, 27 February (Argus) — Japanese utility Tokyo Electric Power (Tepco) is facing a possible further delay in restarting its Kashiwazaki-Kariwa nuclear power plant in Niigata prefecture, as the company is likely to miss a deadline for installing anti-terrorism facilities at the No.7 and No.6 reactors. Under Japanese nuclear safety regulations, nuclear power plant operators are required to build emergency control facilities in the event of severe accidents such as an aircraft crash or terrorist attack, within five years of receiving approvals to upgrade a reactor. Operators that miss the deadline will have to shut down their reactors. Tepco said on 27 February that it has revised its target date to complete the counter-terrorism measures at the 1,356MW Kashiwazaki-Kariwa No.7 reactor from March 2025 to August 2029, after reviewing the upgrade construction process. This means that Tepco will not be able to meet its October 2025 deadline. This will force the reactor to shut for an extended period to complete the reinforcement work, even if Tepco secures local government approval to restart and successfully resumes operations before the deadline. Tepco has also extended a target date to complete the counter-terrorism measures at the 1,356MW Kashiwazaki-Kariwa No.6 reactor from September 2026 to September 2031, later than the September 2029 deadline. The Kashiwazaki-Kariwa No.7 and No.6 reactors have been closed since August 2011 and March 2012 respectively, following the March 2011 Fukushima nuclear disaster. The reactors have already cleared the post-Fukushima stricter safety inspection by the Nuclear Regulation Authority (NRA), but still need to secure local approval as the final hurdle. Niigata governor Hideyo Hanazumi has been cautious about whether to approve the restoration of the Kashiwazaki-Karaiwa nuclear plant because of safety concerns, reiterating he will prioritise the concerns of local residents. Tepco has tried to restart the No.7 reactor first, while completing the loading of nuclear fuel into the reactor in April 2024. But given that the October 2025 deadline for the No.7 reactor is looming, the company may refocus on restoring the No.6 reactor to utilise it until its safety deadline of September 2029. Tepco plans to load nuclear fuel into the No.6 reactor on 10 June. The possible return of the Kashiwazaki-Kariwa nuclear plant will symbolic of Tepco's progress, given it has scrapped the melted-down Fukushima Daiichi and its nearby Fukushima Daini nuclear plants. Kashiwazaki-Kariwa is now Tepco's sole nuclear plant, and its return is expected to help ease the risk of an electricity shortage like the one that occurred in January 2021 in the Tokyo metropolitan area. Tepco estimates that the restart of one nuclear reactor, which can produce 10TWh/yr of electricity, will help boost the company's profits by around ¥100bn ($668mn). It also expects the return of the Kashiwazaki-Kariwa No.7 reactor will help reduce CO2 emissions by around 3.3mn t/yr. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU proposes reduced scope for climate disclosures


26/02/25
News
26/02/25

EU proposes reduced scope for climate disclosures

London, 26 February (Argus) — The European Commission today submitted a proposal to amend the Corporate Sustainability Reporting Directive (CSRD) as part of its omnibus package, which aims at simplifying the regulatory framework on corporate climate reporting. Under the proposal, mandatory sustainability reporting would only apply to large companies with more than 1,000 employees — up from companies with over 250 employees — and either a turnover above €50mn ($52mn) or a balance sheet above €25mn. Listed small and medium enterprises (SMEs), which are due to start reporting in 2027, would also be relieved of the requirement. Overall, this reduces the number of businesses under the scope of the directive by 80pc. For companies falling outside the revised scope and for which mandatory reporting would start in 2026-27, the commission is proposing to postpone the start of the requirement by two years. The use of a voluntary reporting framework is now suggested, based on the standard for non-listed SMEs developed by the European Financial Reporting Advisory Group last year . This will form the content of a separate recommendation. There is also a proposal to revise and streamline the European Sustainability Reporting Standards , which came into force at the beginning of 2024 as part of the CSRD. The standards require companies to make disclosures on the effect of their activities on the environment, including their energy production and consumption, and the risks that environmental issues might pose to them. The use of certificates such as guarantees of origin (GOOs) and renewable power purchase agreements are the only recognised ways to document use of renewable energy. All changes proposed by the commission need approval from the European Parliament and Council. By Giulio Bajona Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU eyes clean industry drive, climate policy tweaks


26/02/25
News
26/02/25

EU eyes clean industry drive, climate policy tweaks

Brussels, 26 February (Argus) — The European Commission today published a wide range of proposals aimed at boosting the bloc's economy, clean energy and technology, while bringing down energy costs. Several legislative proposals aim at simplification, notably on climate reporting. The commission also announced plans to expand demand aggregation and joint purchase schemes, currently in place for natural gas, to other raw materials, including lithium. And an EU critical raw material centre would jointly purchase raw materials on behalf of interested companies. EU climate commissioner Wopke Hoekstra said the commission is going "all out" to protect and advance its economy. "There's no question of turning our backs on climate action," he added, noting the need for a strong business case for decarbonisation. The commission has said it is " staying the course " in terms of its recommended target for cutting greenhouse gas (GHG) emissions by 90pc by 2040, compared with 1990 levels. Hoekstra noted that the commission did not today present 2040 GHG proposals because of the number of other plans unveiled. It is "very clear" that the EU is moving away from Russian gas and also from fossil fuels, energy commissioner Dan Jorgensen said, detailing an affordable energy plan . But a draft document seen by Argus showed plans for more flexibility on long-term supply deals and a "Japanese model" of investment in LNG export terminals. Hoekstra pointed to a new proposed EU bank for industrial decarbonisation, funded with money from the bloc's emissions trading system (ETS). The proposed bank could raise €100bn ($105bn) for industrial decarbonisation projects, including €20bn from the ETS innovation funds, over the next ten years. And that figure could hit €400bn, if leveraged with private funds, Hoekstra said. The commission aims to simplify the bloc's carbon border adjustment mechanism (CBAM). Hoekstra promised exemption for 90pc of the firms currently covered, while later proposals would see changes to scope and new products. Officials note that the exemption does not mean a "delay" of CBAM. The commission is also promising to promote clean products with new public procurement requirements in 2026. And a voluntary carbon intensity label for industrial products will be launched with steel in 2025, followed by cement. The commission also updated state aid rules to boost decarbonisation and clean tech, pledging a new, simplified framework by June. The hydrogen industry, commenting on a draft of the state aid framework, noted a lack of flexibility for EU states to promote demand and close the price difference between fossil- and non-fossil-based hydrogen. And the commission published eased due diligence obligations for some 6,000 EU and 900 non-EU large firms that require business models compatible with keeping global temperatures within 1.5°C of pre-industrial levels, in line with the Paris climate agreement. Qatari energy minister Saad Sherida al-Kaabi has warned that the country could not continue continued LNG exports if the EU did not "thoroughly" review its corporate sustainability due diligence directive (CSDDD). A senior EU official noted a "misunderstanding" on due diligence over a maximum fine of 5pc for firms' total worldwide revenue that would only be applied to "egregious" breaches of the CSDDD, including for serious violations of human rights. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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