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Shell venture eyes creating hydrogen supply and demand

  • Market: Biofuels, Hydrogen
  • 11/10/21

Shell wants to break what it calls the "chicken and egg problem" in European hydrogen through a partnership that it hopes will create demand and supply at the same time.

The venture sees Shell team up with specialty-vehicle manufacturer Paul Nutzfahrzeuge and German downstream firm MaierKorduletsch. The former will build hydrogen-powered medium sized fuel-cell trucks, and the latter will build and operate filling stations for them. Shell will provide the hydrogen.

Paul Nutzfahrzeuge plans to begin mass production of its truck by 2023, and Shell said it could have up to 50 hydrogen filling stations by 2025, with the participation of other partners and public funding. The project is subject to a final investment decision, Shell said.

In a similar initiative, Shell New Energies in the Netherlands recently said it would from 2024 start operating a hydrogen filling-station network for Daimler heavy trucks between its planned green-hydrogen production sites in Rotterdam, Cologne and Hamburg. Daimler Truck plans to hand over the first heavy hydrogen trucks to customers from 2025. The partners' plan provides for the continuous expansion of the hydrogen infrastructure in this corridor so that 150 hydrogen filling stations and around 5,000 heavy fuel-cell trucks of the Mercedes-Benz brand can go into operation from 2030.

Shell has begun operations in July at the 10MW Refhyne 1 electrolyser at its Reinland Energy and Chemicals Park, Cologne, and expects to make a decision later this year on adding the 100MW Refhyne 2 to the site. It plans to build a 200MW electrolyser in the Port of Rotterdam, which it intends to start by 2023 when it will produce around 50,000–60,000 kg/d of hydrogen. And Shell will build an electrolysis plant with a capacity of 100MW at its recently closed Moorburg coal-fired plant in Hamburg, Germany, with Swedish utility Vattenfall and Japanese engineering firm Mitsubishi Heavy Industries.


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01/05/25

US bill would extend expired biofuel credits

US bill would extend expired biofuel credits

New York, 1 May (Argus) — Legislation soon to be introduced in the US House would extend expired biofuel incentives through 2026, potentially providing a reprieve to refiners that have curbed production this year because of policy uncertainty. The bill, which will be sponsored by US representative Mike Carey (R-Ohio) and some other Republicans on the powerful House Ways and Means Committee, according to a person familiar, could be introduced as soon as today. It would prolong both the long-running $1/USG for blenders of biomass-based diesel and a separate incentive that offers up to $1.01/USG for producers of cellulosic ethanol. The credits expired at the end of last year but under the proposal would be extended through both 2025 and 2026. The incentives would run alongside the Inflation Reduction Act's new "45Z" credit for clean fuel producers, which offers a sliding scale of benefits based on carbon intensity, though the bill would prevent double claiming of credits, according to bill text shared with Argus . The 45Z credit is less generous across the board to road fuels — offering $1/USG only for carbon-neutral fuels and much less for crop-based diesels — and is still in need of final rules after President Joe Biden's administration issued only preliminary guidance around qualifying. The proposal then would effectively offer a more generous alternative through 2026 for biodiesel, renewable diesel, and cellulosic ethanol but not for other fuels that can claim the technology-neutral 45Z incentive. That could upend the economics of renewable fuel production. Vegetable oil-based diesels for instance could claim the blenders credit and earn more than aviation fuels that draw from the same feedstocks. According to Argus Consulting estimates, aviation fuels derived from wastes like distillers corn oil and domestic used cooking should still earn more than $1/USG this year, conversely, since 45Z is more generous to aviation fuels. Extending the biodiesel blenders credit would also allow foreign fuel imports to again claim federal subsidies, a boost for Finnish refiner Neste and the ailing Canadian biofuel startup Braya Renewable Fuels but a controversial provision for US refiners and feedstock suppliers. The 45Z incentive can only be claimed by US producers. The blenders incentive is also popular among fuel marketer groups, which have warned that shifting subsidies to producers could up fuel costs. The proposal adds to a contentious debate taking place across the biofuel value chain about what the future of clean fuel incentives should look like. Some industry groups see a wholesale reversion to preexisting biofuel credits — or even a temporary period where various partly overlapping incentives coexist — as a tough sell to cost-concerned lawmakers and have instead pushed for revamping 45Z. A proposal last month backed by some farm groups would keep the 45Z incentive but ban foreign feedstocks and adjust carbon intensity modeling to benefit crops. Republicans could keep, modify, extend, or repeal the 45Z incentive as part of negotiations around a larger tax bill this year. But the caucus is still negotiating how much to reduce the federal budget deficit and what to do with Inflation Reduction Act incentives that have spurred clean energy projects in conservative districts. Uncertainty about the future of biofuel policy and sharply lower margins to start 2025 have led to a recently pronounced drop in biodiesel and renewable diesel production . President Donald Trump's administration is working on new biofuel blend mandates, which could be proposed in the coming weeks, but has said little about its plans for biofuel tax policy. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil Aneel rejects grid access for green H2 projects


30/04/25
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30/04/25

Brazil Aneel rejects grid access for green H2 projects

Paris, 30 April (Argus) — Brazil's electricity regulation agency Aneel has rejected requests for electricity grid connections filed by two renewable hydrogen projects in the northeast of the country — but the decision can be reverted, according to one of the companies. Spanish project developer Solatio, which is planning a renewable ammonia project in the state of Piaui, had its request for a grid connection rejected by Aneel in a resolution published last week. In March, Solatio received approval from Brazil's industry minister to build a 3GW electrolyser facility at the Parnaiba Export Processing Zone, with operations expected to start in early 2029. The firm had previously said it aims to achieve over 11GW of electrolyser capacity in Piaui in the long run. Aneel's decision to reject access to the grid was based on recommendations made by Brazil's grid operator ONS, which found the grid connection request to not be feasible as it "could result in overload and risks of voltage collapse". In the technical note, Aneel said that this decision "does not constitute a sanction or opposition to the investment itself". Instead it is a reflection of the "current technical limitations" of the power system. The regulator expects that "in the near future, structural works capable of safely serving large loads in the northeast will be proposed and granted". Brazil's energy ministry has already requested energy planning body EPE an expansion of 4GW of capacity in the northeast grid to accommodate demand from renewable hydrogen projects in the coming years. Solatio has already submitted a "new technical solution" that was designed with support of the Piaui government and state investment promotion agency Invest Piaui and that it could be approved soon, the developer told Argus . Earlier this month, renewables firm Casa dos Ventos also had a grid connection request rejected for its 900,000 t/yr renewable ammonia project planned at the Pecem port complex, in Brazil's Ceara state. Output from the Iracema project could supply TotalEnergies , which is a shareholder in Casa dos Ventos. Casa dos Ventos' request included a grid link to power a data centre project, which was refused by Aneel too. Aneel has asked ONS to provide "the set of technical information" for its recommendation and increase transparency on its assessments. Casa dos Ventos was not immediately available to comment. Hydrogen industry participants in Brazil have grown increasingly concerned about power grid bottlenecks. Even though the government has approved plans to expand grid capacity across the country, the sector worries that this could come too late for projects that hope to be early beneficiaries of Brazil's tax credit scheme unless the procedures are sped up. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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China issues first export quota for SAF


30/04/25
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30/04/25

China issues first export quota for SAF

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DG Fuels eyes larger, later Louisiana SAF plant


29/04/25
News
29/04/25

DG Fuels eyes larger, later Louisiana SAF plant

New York, 29 April (Argus) — US renewable fuels company DG Fuels intends to produce more sustainable aviation fuel (SAF) than it initially planned at its flagship Louisiana project, albeit on a later timeline. DG Fuels president Christopher Chaput told Argus that the company is working to reach a final investment decision on its Louisiana facility by the first quarter of next year and is on track to start delivering "meaningful" amounts of SAF from the site in 2030, later than initially expected. The company continues to look at other potential facilities across the country but is prioritizing its Louisiana plant, which will use the Fischer-Tropsch chemical process to gasify agricultural waste into low-carbon fuels. "Not exclusively, but we are focusing really, really, really hard on the first project, which is Louisiana," Chaput said. Potential sites in Nebraska and Minnesota are the next-furthest along, and the company still owns land in Maine where it could build a similar SAF plant. The facilities would use similar technology but draw from different feedstocks, such as local forest or agricultural waste, and different types of hydrogen. The plan in Louisiana is to produce blue hydrogen, which involves capturing carbon emissions and is eligible for a federal tax credit. That Louisiana facility has also expanded in size, and Chaput says it could ultimately produce 195-200mn USG/yr of fuel — up from estimates last year and an initial projection of 120mn USG/yr. Chaput says the plant's size — which would give it the highest capacity of all Fischer-Tropsch SAF plants planned globally according to Argus estimates — will be an advantage for ultimately producing a cost-competitive fuel. Other potential DG Fuels facilities would be similarly large, a different approach from some other US developers like Aether Fuels, Natural State Renewables and now-defunct Fulcrum Bioenergy that have eyed a similar production process on smaller sites. Some biofuel producers already operational today use a separate process to produce SAF, hydroprocessing vegetable oils and animal fats, and have higher production capacities. But that pathway could ultimately be limited by feedstock constraints and competition from renewable diesel, analysts say, which has spurred investors and airlines to look at other potential pathways. While plants eyeing production in the 2030s might be less exposed to immediate policy risks, biofuel producers in the US have struggled to start 2025 as margins crash from the halting rollout of a new federal tax credit and delayed blend mandates. President Donald Trump's aggressive efforts to curb renewables have scared climate tech start-ups, though Trump has also voiced general support for some other clean energy sources, including biofuels. A government loan to support US refiner Calumet's efforts to produce more SAF was briefly halted this year and then [unpaused]( https://direct.argusmedia.com/newsandanalysis/article/2656961) after a Republican US senator intervened. And policies abroad — including increasingly stringent SAF mandates in the EU and UK — could ultimately support clean fuel developers in the US even if incentives shift stateside. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil's 2025-26 sugar crop to near record 46mn t


29/04/25
News
29/04/25

Brazil's 2025-26 sugar crop to near record 46mn t

Sao Paulo, 29 April (Argus) — Brazil may produce a record amount of sugar in the 2025-26 sugarcane crop despite lower crushing because more feedstock is set for the sweetener's production instead of ethanol. Brazil is set to produce 45.9mn metric tonnes (t) of sugar in the 2025-26 crop — which officially started on 1 April — a 4pc increase from the prior season, according to national supply company Conab's first estimate for the cycle. But Conab expects 2025-26 sugarcane crushing to decrease by 2pc from the the prior season, because of unfavorable weather conditions in the months prior to the beginning of the crop. The center-south — responsible for 90pc of national output — was hit by lack of rainfalls and high temperatures in most of last year, harming the development and growing of crops which would be harvested in the current cycle. The planted sugarcane area is expected to reach 8.8mn hectares (ha), a slight 0.3pc rise from the prior cycle, but yields are estimated to decrease by 2.3pc to 75,450 kg/ha. The annual increase in sugar output came because international sugar prices became more attractive than domestic ethanol prices. Both products are derived from sugarcane and production of one occurs at the expense of the other. Additionally, Brazilian mills increased investments on sugar crystallizing capacity last year and market participants expect the results to materialize this season. Ethanol output to fall Brazil will produce 36.8bn l (635,180 b/d) of ethanol in the 2025-26 crop, a 1pc drop from the 2024-25 season, driven by less sugarcane-based ethanol, Conab said. Sugarcane ethanol output is estimated to drop by 4.2pc from the prior cycle, because of less available feedstock and an estimated higher share of sugarcane directed to sugar production instead of the biofuel. But a projected 11pc increase in corn-based ethanol production in the 2025-26 season from the previous cycle partially offsets that expected drop in sugarcane ethanol output. Hydrous ethanol production in the 2025-26 season is estimated to total 22.7bn l, a 6.8pc decrease from 24.4bn l in the 2024-25 crop, while output of anhydrous ethanol — used as a gasoline blendstock — may rise by 10pc to 14.1bn l. By Maria Albuquerque Projections for 2025-26 sugarcane crop 2024-25 2025-26 ±% Sugarcane ('000t) 676.96 663.43 -2 Sugar '000t 44.12 45.87 4 Sugarcane-based ethanol ('000l) 29,350,340 28,111,241 -4.2 Corn-based ethanol ('000l) 7,839,526 8,704,034 11 Ethanol total ('000l) 37,189,865 36,815,275 -1 Source: Conab Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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