US to probe hydrogen transport in pipelines: correction
Corrects title of Deputy US energy secretary David Turk.
President Joe Biden's administration is starting to lay the groundwork to safely scale up the volumes of hydrogen that could be transported through pipelines and stored, possibly in blends with natural gas.
The US Pipeline and Hazardous Materials Safety Administration (PHMSA) plans to expand its research to look at the effects of hydrogen on pipelines and underground storage, according to a notice issued today. The research, set for discussion at a public forum on 1 December, comes as the administration looks toward hydrogen as a fuel that could be useful in hard-to-decarbonize industries such as heavy transportation.
"Hydrogen is one of the most interesting versatile energy sources of the future," Deputy US energy secretary David Turk said yesterday. "It provides solutions not only for heavy duty-transport but for a variety of industrial applications."
The oil and gas sector has pushed for greater use of hydrogen as a way to meet its climate goals, but doing so requires bringing down its cost, producing it without releasing vast amounts of greenhouse gases, and finding a way to transport it safely. But one of the challenges with hydrogen transportation is that at high concentrations and pressures, it can cause metal to become brittle.
PHMSA wants to conduct further research into how hydrogen gas behaves in underground storage facilities, how it chemically reacts with nearby rocks, its leakage properties and potential effects on microbes. Other research topics include how hydrogen and hydrogen-methane blends could affect in-line inspection tools used on pipelines, compressor station equipment and polyvinyl chloride pipes used in distribution systems.
The new research comes as the Biden administration works with the Democratic-led US Congress to reduce the cost of clean hydrogen. The vast majority of hydrogen produced in the US is derived from methane, a process scientists say is worse for the climate than just burning natural gas because of the extra energy required. Averting emissions will require capturing CO2 during the process, or producing hydrogen from renewable energy or nuclear power.
Democrats are considering a $3.5 trillion budget bill that offers tax credits for hydrogen that achieves lifecycle carbon emission reductions of at least 40pc compared to the conventional methane process. The tax credit would be $3/kg for hydrogen with a 95pc reduction in emissions down to 60¢/kg for a 40-75pc emission reduction.
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Brazil's Bndes backs reforestation firm
Brazil's Bndes backs reforestation firm
Sao Paulo, 29 August (Argus) — Brazil's Bndes development bank approved R160mn ($28.7mn) in financing for reforestation company Mombak, which will use the funding for projects in Para state that will generate carbon offsets to be sold in the international market. The company has planted over 3mn native tree species in Para as part of its broader efforts to recover degraded areas in the Amazon basin where deforestation levels are highest. Mombak will receive R80mn from the Bndes' Climate fund and another R80mn from the banks' Finem line of credit. This is not Mobak's first project to sell carbon offsets. The company has a deal with Microsoft for 1.5mn offsets and with automobile racing firm McLaren. The funding is part of a partnership between Bndes and the environment ministry to reduce deforestation in an area known as the "deforestation arch" in the Amazon, with the goal of recovering 6mn hectares (ha) of degraded area in this region by 2030 and 18mn ha by 2050. This environmentally vulnerable region has received R1bn in financing since it was officially targeted at the Cop 28 UN climate talks. Mombak was founded in 2021 by former executives from Brazilian tech companies 99 and Nubank. The company has raised roughly R1bn in capital to invest in reforestation projects. It also received backing from the Canada Pension Plan Investment Board, Bain Capital, French insurance company AXA and the Rockefeller Foundation. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK eyes new environmental guidance for oil, gas: Update
UK eyes new environmental guidance for oil, gas: Update
Adds comment from Shell London, 29 August (Argus) — The UK government will develop new environmental guidance for oil and gas firms, in the light of a recent Supreme Court decision that ruled consent for an oil development was unlawful, as the scope 3 emissions — those from burning the oil produced — were not considered. The ruling means that "end use emissions from the burning of extracted hydrocarbons need to be assessed", the government said today. The government will consult on the new guidance and aims to conclude the process "by spring 2025", it said today. It will in the meantime halt and defer the assessment of any environmental statements related to oil and gas extraction and storage activities until the new guidance is in place, including statements that are already being assessed. The Supreme Court in June ruled that Surrey County Council's decision to permit an oil development was "unlawful because the end use atmospheric emissions from burning the extracted oil were not assessed as part of the environmental impact assessment". The government also confirmed that it will not challenge judicial reviews brought against the development consent granted to the Jackdaw and Rosebank oil and gas fields in the North Sea. A judicial review in the UK is a challenge to the way in which a decision has been made by a public body, focusing on the procedures followed rather than the conclusion reached. Environmental campaign groups Greenpeace and Uplift launched legal challenges in December seeking a judicial review of the government's decision to permit Rosebank. Norway's state-owned Equinor and London-listed Ithaca hold 80pc and 20pc of Rosebank, respectively. Greenpeace in July 2022 separately filed a legal challenge against the permitting of Shell's Jackdaw field. "This litigation does not mean the licences for Jackdaw and Rosebank have been withdrawn", the government said. The Labour government, voted into office in July , pledged not to issue any new oil, gas or coal licences, but also promised not to revoke existing ones. Equinor is "currently assessing the implications of today's announcement and will maintain close collaboration with all relevant stakeholders to advance the project. Rosebank is a vital project for the UK and is bringing benefits in terms of investment, job creation and energy security", the company told Argus today. Shell is "carefully considering the implications of today's announcement... we believe the Jackdaw field remains an important development for the UK, providing fuel to heat 1.4mn homes and supporting energy security, as other older gas fields reach the end of production", the company told Argus . North Sea oil and gas production "will be a key component of the UK energy landscape for decades to come", the government said today. The UK government introduced a climate compatibility checkpoint in September 2022, designed to ensure that oil and gas licensing fits UK climate goals. The UK has a legally-binding target of net zero emissions by 2050. The checkpoint, though, does not take into account scope 3 emissions. These typically make up between 80pc and 95pc of total oil and gas company emissions. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Greek regulator approves 2025 gas tariff increases
Greek regulator approves 2025 gas tariff increases
London, 29 August (Argus) — Greek energy regulator RAEWW has approved 2025 gas transmission tariffs previously proposed by transmission system operator Desfa, with some alterations. The annual tariff for entry to the Greek grid is set at roughly €0.35/MWh for 2025, around 4pc higher than in 2024 (see data & download) . Exit tariffs at domestic and international points will be €0.59/MWh, a nearly 21pc increase on the year, while the LNG regasification tariff is set at €0.30/MWh, nearly 35pc higher than in 2024. Before annual capacity auctions in July, Desfa had proposed some differentiation in entry and exit tariffs for different interconnection points, but RAEWW has instead opted for equalising entry and exit fees regardless of the point. Multipliers for shorter-term capacities are set at around 1.38 for quarterly products, 1.48 for monthly products and 2.97 for daily products. These are the same multipliers which have been used for the past two years. RAEWW set the allowed revenue for transmission services at €149.2mn. A much larger portion of the allowed revenue will come from exit points, at around €90.5mn compared with €58.7mn at entry points. The regulator set an allowed revenue of €23.6mn for LNG services. It noted the Revithoussa LNG terminal has consistently exceeded its allowances since 2019, peaking at 312pc in 2023 as use of the terminal soared. RAEWW has also opened a public consultation on proposed changes to the rulebook of Greece's Henex exchange, which would create a new "trading-only" type of participant. The new category of participant does not need to be a registered user of the transmission system, but must have concluded a contract with exclusively one other participant who is registered, and guarantee that it will fulfil its obligations arising from any concluded trades. If the registered system user loses its registered status, then the trading-only participant also does. Any termination of contract between the two parties must immediately be reported to Henex. Interested parties can email responses to the consultation to RAEWW until 20 September. By Brendan A'Hearn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK plans new environmental guidance for oil and gas
UK plans new environmental guidance for oil and gas
London, 29 August (Argus) — The UK government will develop new environmental guidance for oil and gas firms, in the light of a recent Supreme Court decision that ruled consent for an oil development was unlawful, as the scope 3 emissions — those from burning the oil produced — were not considered. The ruling means that "end use emissions from the burning of extracted hydrocarbons need to be assessed", the government said today. The government will consult on the new guidance and aims to conclude the process "by spring 2025", it said today. It will in the meantime halt and defer the assessment of any environmental statements related to oil and gas extraction and storage activities until the new guidance is in place, including statements that are already being assessed. The Supreme Court in June ruled that Surrey County Council's decision to permit an oil development was "unlawful because the end use atmospheric emissions from burning the extracted oil were not assessed as part of the environmental impact assessment". The government also confirmed that it will not challenge judicial reviews brought against the development consent granted to the Jackdaw and Rosebank oil and gas fields in the North Sea. A judicial review in the UK is a challenge to the way in which a decision has been made by a public body, focusing on the procedures followed rather than the conclusion reached. Environmental campaign groups Greenpeace and Uplift launched legal challenges in December seeking a judicial review of the government's decision to permit Rosebank. Norway's state-owned Equinor and London-listed Ithaca hold 80pc and 20pc of Rosebank, respectively. Greenpeace in July 2022 separately filed a legal challenge against the permitting of Shell's Jackdaw field. "This litigation does not mean the licences for Jackdaw and Rosebank have been withdrawn", the government said. The Labour government, voted into office in July , pledged not to issue any new oil, gas or coal licences, but also promised not to revoke existing ones. Equinor is "currently assessing the implications of today's announcement and will maintain close collaboration with all relevant stakeholders to advance the project. Rosebank is a vital project for the UK and is bringing benefits in terms of investment, job creation and energy security", the company told Argus today. North Sea oil and gas production "will be a key component of the UK energy landscape for decades to come", the government said today. Argus has also contacted Shell for comment. The UK government introduced a climate compatibility checkpoint in September 2022, designed to ensure that oil and gas licensing fits UK climate goals. The UK has a legally-binding target of net zero emissions by 2050. The checkpoint, though, does not take into account scope 3 emissions. These typically make up between 80pc and 95pc of total oil and gas company emissions. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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