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Japanese firms develop hydrogen engines for large ships

  • Market: Emissions, Hydrogen, Oil products
  • 27/04/21

Japanese engine manufacturers have teamed up to attempt develop hydrogen marine engines for large coastal and ocean-going ships by around 2025, as part of efforts to help the country's shipbuilders fast-track development of hydrogen-fuelled vessels.

Japanese firms Kawasaki Heavy Industries (KHI), Yanmar Power Technology and Japan Engine today agreed to form a consortium to develop hydrogen-fuelled engines for large commercial vessels operating on domestic and international routes. The group is also targeting to achieve system integration that brings together hydrogen storage and fuelling equipment with a hydrogen fuel propulsion system.

The companies are targeting to complete developing a line of products that can meet various requirements for use as a main or auxiliary marine engine or a power generator. KHI is planning to develop a medium-speed four-stroke engine. Yanmar will work at developing medium- and high-speed four stroke engines, while Japan Engine is to tackle completing low-speed two-stroke engines.

KHI and Yanmar are already participating in projects to develop small hydrogen-powered ferries for domestic routes. KHI and other Japanese firms, including shipping firm NYK Line, are planning to launch pilot operations of a hydrogen-powered fuel cell passenger ferry at Yokohama port in 2024. Yanmar is co-operating with Japanese shipping firm Mitsui OSK Line's subsidiary Mol Techno-Trade in developing a small hydrogen-fuelled ferry.

Japan is awaiting the official launch of the HydroBingo, the first hydrogen-powered vessel to operate in the country. The 19 gross tonne hydrogen-fuelled ferry is developed by Belgian shipping firm CMB and Japanese shipbuilder Tsuneishi Facilities & Craft.

Demand for hydrogen as a marine fuel is expected to expand as the international shipping industry strives to reduce its greenhouse gas emissions by at least 50pc by 2050 compared with 2008 levels. A number of countries, including Japan, have also toughened their greenhouse gas commitments to achieve decarbonisation by 2050, prompting Japanese shipbuilders to speed up a shift to greener and zero-emissions vessels and tap decarbonisation potential in competition against their Chinese and South Korean rivals.


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07/05/25

Australia’s CER sees disinterest in carbon trading tool

Australia’s CER sees disinterest in carbon trading tool

Sydney, 7 May (Argus) — Australia's Clean Energy Regulator (CER) plans to work with existing carbon credit trading platforms to potentially link them to its new registry, following a lack of market interest in a carbon credit trading tool proposed late last year. The CER did not see "a lot of enthusiasm" for the use of a financial instrument developed by the Australian Securities Exchange (ASX) as a trading model for Australian Carbon Credit Units (ACCUs), chair and chief executive David Parker said on 7 May at lobby group Carbon Market Institute (CMI)'s Carbon Farming Industry Forum in New South Wales, Australia. "What people did say was that they wanted us building up infrastructure… linking [over-the-counter] trading platforms into our new registry," Parker noted. The CER had previously planned to develop and operate the so-called Australian Carbon Exchange for spot ACCU transactions, but had already indicated it pushed back on the idea when it consulted on the trading tool late last year. Its proposal would see participants using a Clearing House Electronic Subregister System (CHESS) Depository Interest (CDI) — a mechanism used by the ASX to allow the trading of interests in bonds and some international shares on the exchange. Under the proposed model, market participants would not be required to have a registry account to buy beneficial interests in ACCUs through CDIs. They would be able to trade the CDIs multiple times and would only need registry accounts if they needed to convert the CDIs into ACCUs for actual delivery. Currently, climate solutions and markets firm Core Markets, brokerage firm Jarden, and environmental marketplace Xpansiv's CBL each have separate trading platforms for ACCUs. Exchanges ASX and CME last year launched separate futures contracts for physically-deliverable ACCUs, although trading interest has been very limited so far. Core Markets is working on developing its platform so that it would be able to potentially link to the CER's registry in the future, chief executive Chris Halliwell told Argus on the sidelines of the event on 7 May. The CER launched its new registry late last year. It started issuing the new safeguard mechanism credit units into the new registry, and plans to transfer ACCUs from the existing Australian National Registry of Emissions Units later this year. New units and certificates such as renewable energy guarantees of origin and biodiversity certificates under the nature repair market will be added to the new registry, while large-scale generation certificates and small-scale technology certificates will continue in the renewable energy certificate registry. 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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Fuel theft in Mexico rose 10pc in 2024: Pemex


06/05/25
News
06/05/25

Fuel theft in Mexico rose 10pc in 2024: Pemex

Mexico City, 6 May (Argus) — Mexican state-owned Pemex lost 10pc more product to fuel theft in 2024 despite increased surveillance and the detection of fewer illegal taps on its pipelines. Stolen hydrocarbons — mainly gasoline and diesel, but also including some fuel oil, jet fuel and even crude — amounted to 17,000 b/d in 2024, up from 15,400 b/d a year prior, according to its 2024 annual report filed with the US Securities and Exchange Commission. The rise came despite a 21pc drop in discovered illegal pipeline taps, which fell to 11,774 from 14,890 a year earlier. Pemex attributed the continued losses to the limited effectiveness of government efforts. "The actions we have taken in conjunction with the Mexican government to reduce the illicit fuel market have not produced sustained improvement in recent years," Pemex said. Under former President Andres Manuel Lopez Obrador's administration, Pemex implemented a stricter policy against fuel theft and moved some transition to truck from more theft-prone pipelines. But the illicit market remains widespread. The finance ministry has estimated that stolen or illicit fuel could supply up to 30pc of Mexico's 1.2mn b/d gasoline and diesel demand. Much of it enters as mislabeled imported refined products as petrochemicals, additives or biofuels, which are exempt from excise taxes. Earlier this month, the US administration said it uncovered a wide-ranging scheme by drug cartels to smuggle Mexican crude into the US, for sale in domestic markets or for re-exports. Pemex estimates 2024 losses to fuel theft at Ps20.53bn ($1.05bn), up from Ps20.17bn the previous year. Still, surveillance efforts helped reduce alerts from leak detection systems by 23pc, from 16,075 in 2023 to 12,414 in 2024. Pemex said all alerts were addressed and 18.4mn l (116,000 bl) of hydrocarbons were recovered. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US EIA will not release international outlook in 2025


06/05/25
News
06/05/25

US EIA will not release international outlook in 2025

Washington, 6 May (Argus) — The US Energy Information Administration (EIA) no longer expects to publish one of its major energy reports this year after losing some of its staff through President Donald Trump's efforts to downsize the federal workforce. The EIA does not plan to publish its International Energy Outlook (IEA) — which models long-term global trends in energy supply and demand — this year because of a loss of staff responsible for producing the report, according to an internal email initially reported by the news outlet ProPublica . The EIA confirmed the authenticity of the email. "At this point, you can assume that we will not be releasing the IEO this year," the EIA's Office of Energy Analysis assistant administrator Angelina LaRose wrote in the 16 April email. "This was a difficult decision based on the loss of key resources." Oil and gas producers, traders, utility companies, federal regulators and foreign governments have come to rely on the data and models from the EIA, an independent agency within the US Department of Energy. The 2025 version of the IEO might still be published early next year, the EIA said. The agency for now is focusing on trying to "preserve as much institutional knowledge as possible" with an "all hands-on deck" effort under which remaining staff will document models and procedures on long-term modeling, LaRose wrote in the email. Trump and his administration have worked to cut the size of the government's workforce through voluntary buyouts and a process known as a reduction in force. The EIA has yet to say how many personnel it has lost, but about a third of the agency's 350 staffers have accepted voluntary buyouts, according to a person familiar with the situation. The White House last week proposed an 18pc budget cut for the non-nuclear portions of the Department of Energy, but has yet to say if it is seeking to cut spending at the EIA. Last month, the EIA released its premier report, the Annual Energy Outlook , but omitted its traditional in-depth analysis. A technical issue on 1 May delayed the release of a key natural gas storage report by more than three hours, the EIA said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Low-carbon H2 hits the skids with offtake lagging


05/05/25
News
05/05/25

Low-carbon H2 hits the skids with offtake lagging

Houston, 5 May (Argus) — Multiple North American proposals to make hydrogen from natural gas with carbon capture have taken a pause as tariffs add to cost uncertainties and potential buyers balk at making long-term commitments at current prices. Dow has iced its Path2Zero ethylene plant in Alberta that is to use low-carbon hydrogen supplied by Linde. Air Products has delayed the start-up of a hydrogen and ammonia plant in Louisiana. And US nitrogen fertilizer producer LSB Industries said it is [pausing development] of an ammonia project on the Houston Ship Channel in Texas. Lower-carbon hydrogen produced from autothermal reforming with carbon capture and sequestration (CCS) is still expected to lead the nascent sector's development, with renewable-powered production seen as too costly for general takeoff. Most large-scale low-carbon hydrogen projects in the US have focused on exports in the form of ammonia or methanol to Asia and Europe, where governments have promised more support to implement decarbonization mandates. Long-term offtake agreements have so far lagged as regulatory uncertainty, cost concerns and now the added threat of US import tariffs muddle demand perspectives. "Demand has certainly ramped up slower than expected," said LSB chief executive Mark Behrman in an interview with Argus . "In the conversations that we've had with many offtakers in Asia and Europe, and even here domestically, there's been a lack of willingness to commit at the prices that we were able to talk about based on our capital costs," said Behrman, who also cited uncertainty around tariffs as a complicating factor. For long-term supply contracts, buyers were seeking prices below $600/metric tonne fob, said Behrman. LSB partnered with industrial gas firm Air Liquide, Japanese oil company Inpex and Vopak to build the 1.1mn t/yr ammonia facility in Texas. Air Liquide would supply the project with low-carbon hydrogen. The project's costs were largely calculated using 45Q tax credits that are awarded to companies using CCS to reduce emissions. But the release of 45V guidelines in January seemed to offer the possibility of accessing the more lucrative hydrogen production incentive because of a new section pertaining to cryogenic separation, a process that captures carbon dioxide from industrial gas streams, said LSB vice-president of clean energy, Jakob Krummenacher, while speaking at Argus' recent Green Ammonia North America conference in Houston. Cryogenic separation generates more steam than conventional solvent absorption and, if that steam is exported to another process, it may lower the carbon intensity of the resulting hydrogen to such an extent that the project could potentially qualify for 45V, Krummenacher said. As a result, many of the assumptions baked into the engineering studies related to the Houston ammonia venture have to go back to the drawing board. Air Liquide did not respond to requests for comment. If Air Liquide can avail itself of 45V, capital costs may decline and result in more competitive offers to the market. But Berhman cautioned against concluding the project will resume if it is found to qualify for 45V. "We still need a customer to move forward," Behrman said. Dow, which planned to build a hydrogen-fueled ethylene cracker at a petrochemical complex northeast of Edmonton, Alberta, paused its multibillion-dollar project citing uncertainty around US tariffs and the potential for retaliatory tariffs by US trading partners. Linde, which announced last year it would invest $2bn to build a low-carbon hydrogen facility to supply Dow's Path2Zero project, has not responded to questions about what Dow's pause means for its plans in Alberta. Linde has said it was working with Dow to them meet their goals while maintaining Linde's interest in the project. Air Products, meanwhile, further pushed back its $7bn Louisiana low-carbon hydrogen plant to late 2028 or early 2029 as it seeks to control costs by delegating CCS operations and ammonia production to partners. There have been some exceptions to the delays. Early last month, fertilizer producer CF Industries said it was moving ahead on a $4bn ammonia venture with Japan's Jera and investment firm Mitsui at its Blue Point complex in Louisiana. LSB similarly said it is forging ahead with plans to produce low-carbon ammonia at its existing plant in El Dorado, Arkansas, where it will decarbonize production by adding a CCS facility that will be operated by Lapis Carbon Solutions. "We're still big believers in global decarbonization," Behrman said. "I believe that new demand for power generation, power supply, and of course, the marine industry will evolve. I just think it's going to take longer than what everyone initially thought." 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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Mexico's manufacturing contraction deepens in April


05/05/25
News
05/05/25

Mexico's manufacturing contraction deepens in April

Mexico City, 5 May (Argus) — Activity in Mexico's manufacturing sector shrank for a 13th straight month in April, with declines accelerating in production and new orders, according to a survey of purchasing managers. The manufacturing purchasing managers' index (PMI) fell to 45.5 in April from 46.9 in March, finance executives' association IMEF said, moving further below the 50-point threshold that separates growth from contraction. US tariffs imposed since March are adding pressure to Mexico's manufacturing sector, which makes up about a fifth of the national economy. The auto industry, responsible for roughly 18pc of manufacturing GDP, may be the hardest hit by the new measures, including a 25pc tariff on auto parts that took effect 3 May. Mexico remains the top exporter of vehicles to the US, supplying 23pc of all US auto imports in 2024. But IMEF said tariffs compound broader, mostly domestic headwinds, including reduced public spending and investor uncertainty stemming from sweeping legal and regulatory reforms. New investment has stalled since late 2024. The PMI index for new orders fell by 2.5 points to 41.8, the lowest since June 2020. Production dropped by 2.5 points to 43.6, while employment fell by 0.6 point to 46.4. New orders and production have now been in contraction for 14 straight months, and employment for 15. Inventories saw the steepest drop in April, falling 4 points to 46.3 — sliding from expansion to contraction — as manufacturers accelerated shipments after tariff implementation dates were confirmed. IMEF's non-manufacturing PMI — which covers services and commerce — remained in contraction for a fifth consecutive month but edged up by 0.5 points to 49.0 in April. Within that index, new orders rose by 0.6 points to 48.1, employment increased 1.3 points to 48.6 and production held steady at 47.5. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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