China Hydrogen Alliance seeks 100GW renewable capacity
China's state-backed industry group the China Hydrogen Alliance has unveiled an initiative calling for the building of 100GW of renewable hydrogen production capacity by 2030, in a country where only 4pc of its output was previously considered "green".
The Renewable Hydrogen 100 Initiative is short of firm details and the likely costs of such a large-scale undertaking, but calls on China to support the installation of 100GW of electrolysers to produce hydrogen, along with the renewable energy projects required to power them.
The initiative also urges China's industry sector to carry out research projects for the future use of hydrogen, creation of a "unified renewable hydrogen market", development of a renewable hydrogen policy partnering upstream and downstream enterprises, as well as the creation of global standards to "unblock" international renewable hydrogen investment and trade.
China is the world's largest producer of hydrogen, but most of it is brown hydrogen produced from fossil fuels, with coal accounting for 62pc of feedstock compared with 18pc globally. Only 4pc of China's hydrogen uses renewable-based electricity to convert water into oxygen and hydrogen by electrolysis. The country produced more than 21mn t of hydrogen in 2019, out of 70mn t produced globally.
While coal remains the cheapest source of hydrogen it is also the most polluting, which is hardly in line with President Xi Jinping's previous pledge that Chinese emissions will peak "before 2030" and 2060 carbon neutrality target.
Projects are already under way in the country to clean up its hydrogen production profile. China's coal-focused Inner Mongolia region has laid out plans to develop seven wind and solar power projects that could produce almost 67,000 t/yr of hydrogen, as part of a push to raise output to 500,000 t/yr by 2025.
Chinese state-controlled oil firm Sinopec plans to build its first green hydrogen project in Inner Mongolia by next year, using renewables to produce 10,000 t/yr of green hydrogen. It produces 3.5mn t/yr of hydrogen, 14pc of China's total, mostly as a refinery by-product. Sinopec has already set a goal to become the largest hydrogen producer in China, with initial planned investment of about 30bn yuan ($4.6bn) in the sector in the next five years.
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Taiwan's Taipower ends Hsinta biomass conversion plan
Taiwan's Taipower ends Hsinta biomass conversion plan
Singapore, 10 July (Argus) — Taiwanese state-owned utility Taipower has terminated its plan to convert a coal-fired generation unit into a dedicated biomass unit at its Hsinta power plant in Kaohsiung city. Taipower had set up a task force in 2022 to facilitate the usage of biomass by converting the fuel used at the Hsinta unit 1 from coal to wood pellets. But Taipower has decided to terminate the plan to follow "government instructions", it said. The four coal-fired units at the Hsinta power plant will remain "at readiness" in line with national security reasons, following government instructions, Taipower said. Taipower's related sectors will continue to evaluate suitable locations for the use of wood pellets, the company added. The plan to convert the 500MW coal-fired unit was in March pushed back to up to 2030 . The coal-fired unit was part of two units decommissioned in late 2023. The plant has a nameplate capacity of 4.3GW. The unit was planned to be converted by 2025, but this was subsequently delayed to 2027. Taiwan has already decided to stop building new coal-fired power plants by 2025 and build a zero-carbon fuel supply system, according to Taiwan's Pathway to Net Zero Emissions in 2050 report. Taiwan currently generates over 40pc of its electricity from coal, with its coal-fired power plants generating 119.9TWh out of a total 281.4TWh in 2023, according to data from Taiwan's energy bureau. The country imported 58.9mn t of thermal coal last year, down by 6.9pc from 2022. Taiwan imported 4.99mn t of thermal coal in May , little changed from a year earlier but up from 4.91mn t in April, preliminary data released by Taiwanese customs last month show. Taiwan bought 22.7mn t of imported thermal coal between January-May, slipping from 23mn t a year earlier. By Andrew Jones Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EIA raises US coal power forecast for 2024-25
EIA raises US coal power forecast for 2024-25
Houston, 9 July (Argus) — Coal-fired generation in the US is expected to be higher this year and in 2025 compared with 2023 levels in response to elevated natural gas prices, government projections released today show. Coal power will increase by 2.7pc from a year earlier to 688.5bn kWh in 2024, the US Energy Information Administration (EIA) projected in its monthly Short-Term Energy Outlook today. Coal generation in 2025 will then slip to 674.5bn kWh, which would still be slightly higher than 2023's 670.7bn kWh. The coal generation outlooks for this year and next are both above what EIA projected in June. Today is also the first time this year that EIA said it expected 2024 coal power to top 2023 levels. "After reviewing the responsiveness of fossil fuel generation to natural gas prices, we now expect more power generation from coal and less from natural gas than we did in our previous forecast, especially during the winter," EIA said. The agency projected spot natural gas prices at the Henry Hub to average $2.49/mmBtu this year, down from $2.54/mmBtu in 2023. But gas prices in the second half of 2024 will be higher than they were in both the first six months of this year and in the back half of 2023, and prices will continue to rise in 2025. The spot price at the Henry Hub will average $3.29/mmBtu in 2025, EIA projected. Natural gas-fired generation is expected to inch up by 1.4pc from a year earlier to 1,719.4bn kWh in 2024 but then slide below 2023 levels to 1,695.3bn next year, as the higher prices suppress demand for gas. EIA said overall US electricity generation was 5pc higher in the first half of 2024 than the same period last year as a result of higher-than-normal temperatures in June and rising demand from some businesses. The agency expects electric power dispatch in the second half of this year to be 2pc higher than in the same period of 2023, and for renewable power to have the greatest rate of growth during that time. Solar power is forecast to be 121.4bn kWh in the second half of this year, which would be 42pc higher than a year earlier. Wind generation is expected to rise by 12bn kWh, or 6pc, during this time to 208.7bn kWh. The greater solar and wind generation is at least partly because of more projects coming on line. EIA expects the US to have 127.3GW of solar generating capacity and 155.2GW of wind by the end of this year, compared with 90.2GW and 147.6GW, respectively, in the fourth quarter of 2023. Coal generating capacity is expected to continue to slip, to 174.3GW in by the end of this year from 177.1GW in the fourth quarter of 2023, according to EIA. Coal's portion of the nation's generating capacity mix will then drop more sharply in 2025 to 162GW as coal-fired plant retirements start to accelerate. The higher outlook for coal generation this year led EIA to raise its expectations for electric power coal consumption by 3.8pc from the agency's June outlook, to 395.5mn short tons (358.8mn metric tonnes) in 2024. That also would be higher than the 387.2mn st consumed in 2023. But US coal production is still expected to fall by 12pc this year to 509.7mn st this year. US thermal coal exports are expected to rise to 53mn st this year and to 55mn st in 2025 from 48.5mn st in 2023. EIA forecast metallurgical coal exports will be about 49mn st in 2024 and 49.2mn st in 2025 compared with 51.3mn st last year. By Anna Harmon Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indonesia’s RMK loads record coal volumes in June
Indonesia’s RMK loads record coal volumes in June
Manila, 9 July (Argus) — Indonesian coal logistics provider RMK Energy's monthly barge loading volume hit an all-time high in June, supported by favourable weather. RMK Energy loaded a total of 115 vessels with a total coal volume of 916,000t last month, 53pc higher than a year earlier and also up by 23pc from 745,000t in May, the company said. The increase was supported by drier weather during the month, resulting in increased operational efficiency, it added. RMK Energy loaded 3.9mn t of coal onto 495 barges and unloaded 1,627 trains totalling 4.04mn t over January-June. The company is lagging behind its targets, with volumes so far comprising 42pc and 40pc of its respective targets for 2024, the company said. But its coal logistics operations have since normalised, following weak performance in the first quarter resulting from high rainfall. Coal transportation volumes are expected to increase in the second half of the year, given projections of increased demand for coal in preparation for the peak winter demand season and continued drier weather in the coming months. RMK Energy expects to hit its 2024 target of 9.2mn t for its barge loading and 10.2mn t for its train unloading services, if it is able to maintain its current level of operations. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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