Chile signs green H2 agreement with EU ports
Chile struck a preliminary agreement with Belgium's Antwerp and Zeebrugge ports to facilitate future green hydrogen exports to the EU.
The deal comes after a meeting of Chile's energy minister Juan Carlos Jobet, Belgian energy minister Tine Van der Straeten and port representatives at the Cop 26 climate summit in Glasgow, Scotland.
It is aimed at ensuring international market channels for green hydrogen that Chile says it will supply at the world's most competitive prices, thanks to extensive solar and wind energy, and complement Santiago's earlier accords with Singapore and Rotterdam.
Chile's energy ministry forecasts $15bn in green hydrogen investment by 2030 in more than 60 projects, of which 15 have a start date for operations. By 2030, Chile expects to produce 1.2mn t/yr, of which 500,000 t/yr would be absorbed by domestic industries, including mining and steel.
Among the newest initiatives is a project to replace diesel with green hydrogen in the FCAB cargo railway serving northern Chile's extensive copper-mining industry.
Chile has pledged to reach climate neutrality by 2050.
Cloudy climate
The South American country's growing international climate credentials contrast with political volatility at home. Less than two weeks before general elections, the lower house of congress this morning approved a constitutional accusation against center-right president Sebastian Piñera for illicit gains from the 2010 sale of shares in a Chilean mining project. The accusation now shifts to the senate, where opposition parties are unlikely to marshal the required two-thirds of votes required to remove him.
Piñera's allies say the accusation is a political maneuver to discredit the ruling coalition ahead of 21 November elections.
According to recent polls, the two leading presidential candidates are far-left Gabriel Boric and far-right José Antonio Kast, with centrist rivals further behind. None is likely to jettison the government's hydrogen strategy, but contrasting platforms could cloud investment conditions regardless of who wins. A run-off ballot is likely in December.
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Japan seeks $11bn green budget funding
Japan seeks $11bn green budget funding
Osaka, 28 August (Argus) — The Japanese government is expected to request around a ¥1.6 trillion ($11bn) budget for 2025-26 and the following fiscal years to help drive the country's green transformation (GX) strategy to achieve its net zero emissions goal by 2050. The GX implementation council led by premier Fumio Kishida on 27 August unveiled its draft budgetary request plan for sectors involved in the GX, which aims at securing at least ¥1.6 trillion, excluding projects whose costs are unspecified. Tokyo is considering seeking ¥1.2 trillion for 2025-26, while asking for the remaining budget to be allocated for 3-5 years. The initial GX-related budget for 2024-25 was around ¥1.7 trillion, including a supplementary budget for the previous fiscal year. The government plans to allocate ¥255.5bn, or 22pc, of its total budget request for 2025-26, to help set up domestic supply chains to drive its decarbonisation efforts. This includes further development of perovskite solar cells, offshore wind power, storage batteries, water electrolysers and fuel cells. Japan is anticipated to require more than ¥150 trillion of public-private investment to promote energy transition over 10 years from 2023-24. Tokyo plans to issue around ¥20 trillion of GX economic transition bonds over the decade to support the investment. Tokyo is now working on formulating the GX vision toward 2040, aiming to complete it by the end of this year. The council on 27 August proposed specific areas to accelerate discussions, including efforts to restart existing nuclear reactors and development of next-generation reactors, as well as renewable energy expansion, LNG and future fuel supply security and industry relocations. Kishida has promoted nuclear reactors to enhance the country's energy security under his GX strategy, updating the country's nuclear policies since he took office in October 2021. The nuclear-pro GX discussions may influence the continuing review of the country's strategy energy plan (SEP), which was last formulated in 2021 and calls for a reduction of the dependence on nuclear reactors as much as possible. Tokyo should clearly state in its new SEP that it is necessary to not only restart existing nuclear reactors but also build new ones, said Japan's Federation of Electric Power Companies previously. Kishida has decided to step down from his position as leader of the ruling Liberal Democratic Party next month. But he has emphasised he will make an effort to advance the GX strategy during the rest of his tenure, especially for nuclear restoration in east Japan where no reactors are currently operating. Kishida plans to hold a nuclear-related ministerial meeting next week to work on details of the government support to secure approval by local authorities to restart the 1,356MW Kashiwazaki-Kariwa No.7 reactor. The Kashiwazaki-Kariwa nuclear plant is owned by Tokyo Electric Power (Tepco). It is Tepco's sole nuclear plant, after the Fukushima-Daiichi and its nearby Fukushima-Daini nuclear plants were scrapped in the wake of the country's 2011 nuclear disaster following a devastating earthquake and tsunami. By Motoko Hasegawa Japan 2025-26 draft GX-related budget request (¥bn) Introduction of EVs, PHEVs, FCVs 144.4 Introduction of highly insulated windows, high-efficiency water heaters 188.0 Retrofitting existing buildings 26.6 SAF production and supply chain 83.8 R&D of next generation nuclear reactors 82.9 Introduction of energy storage system 31.0 Establishing domestic supply chains such as: 255.5 Perovskite solar cells, Offshore wind power, storage batteries, water electrolysers, fuel cells Support for hard-to-abate industries 87.0 Introduction of production facility for zero emissions vessel 14.3 Support for advanced energy saving measures by small to medium enterprises 174.3 Circular economy 12.0 Support for deep-tech, start-up companies related to GX 40.0 Grant for regional decarbonisation, such as private micro grid 10.0 Total 1,149.8 Source: Japan cabinet secretariat Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil expects R2 trillion in energy transition
Brazil expects R2 trillion in energy transition
Sao Paulo, 26 August (Argus) — Brazil launched its national policy for energy transition, expecting to attract R2 trillion ($364.2bn) in investments in the area over the next 10 years, according to energy minister Alexandre Silveira. The policy establishes guidelines for the country's energy transition, Silveira said, adding that Brazil will be a leader of the green economy. "[The policy] involves wind, solar, hydro, biomass, biodiesel, ethanol, green diesel, carbon capture and storage, sustainable aviation fuel, green hydrogen," he said. "It is an opportunity to boost local production." The two-pronged policy includes the national energy transition plan, which will work alongside other government initiatives, such as the growth acceleration program , the climate plan, new industry Brazil and the pact for ecological transformation. It will also count with the support of the International Energy Agency, Brazil's development bank Bndes, energy research firm Epe and the Getulio Vargas Foundation research institute. The national energy transition plan will focus on getting support from industry participants in the transportation, electrical, mineral and oil and natural gas sectors, and creating legal and regulatory frameworks, to "combat energy poverty and inequalities and create an attractive environment for investments." The second prong is the national energy transition forum, in which public and private sector participants will get a chance to debate and contribute to the policy. Brazil's national energy policy council CNPE approved the plan in a meeting on Monday with President Luiz Inacio Lula da Silva and ministers such as Silveira, environmental minister Marina Silva and finance minister Fernando Haddad. "We are looking to the future," Silveira said. "The energy transition must be fair, inclusive and balanced." By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Greece set to miss EU goal for green H2 use in industry
Greece set to miss EU goal for green H2 use in industry
Hamburg, 23 August (Argus) — Greece has further reduced its 2030 goal for installed electrolysis capacity, which suggests the country will miss an EU target for renewable hydrogen use in industry. A new national energy and climate plan (NECP) put forward for consultation by the interior ministry sets a goal of 187MW installed electrolysis capacity by 2030. This follows several revisions over the past two years. An initial 2021-30 NECP from January 2023 set a target of 1.2GW . This was raised to 1.7GW by August that year, but slashed to just 300MW in November. That sharp cut followed an assessment that previous targets had been too high, considering Greece's ability to produce and consume renewable hydrogen by the end of the decade. Previous iterations of the NECP had considered injections of renewable hydrogen into the natural gas grid, which have since been deemed too expensive. Renewable hydrogen use in Greece is now foreseen to be limited almost exclusively to production of synthetic fuels for shipping and aviation until 2030. The government expects around 1 TWh/yr of hydrogen will be needed for this, equivalent to just over 30,000 t/yr based on hydrogen's lower heating value of 33.33 kWh/kg. It could be difficult to produce this amount with just 187MW of electrolyser capacity, especially as the plan foresees a small additional amount would be required to fuel buses in Athens and Thessaloniki. The ministry was not immediately available to comment on how the electrolyser and production targets align. Off target The synthetic fuel production could allow Greece to meet EU targets for use of renewable hydrogen or derivatives in transport, but the NECP suggests it will not meet the bloc's goal for industry use. The EU requires member states to ensure 42pc of industrial hydrogen use is renewable by 2030 . Greece's NECP does not consider any renewable hydrogen use that would count towards the industry targets by then. This is despite the country currently using around 700-1,050 GWh/yr of conventional hydrogen — made from natural gas with unabated emissions — for ammonia production, some of which would arguably have to be replaced by renewable hydrogen to meet the target. Greek refineries use conventional hydrogen, but most of this would be covered under EU targets for transport rather than for industry. Emissions at refineries will be reduced primarily by switching to 'blue' hydrogen that uses carbon capture and storage, rather than renewable supply, according to the NECP. Previous iterations of the NECP had mentioned the EU's 42pc target for 2030, but the new plan makes no such reference. The ministry instead states broadly that goals set by the EU "are not certain to be achievable" given a lack of maturity with regard to renewable hydrogen. By 2035, member states will have to reach 60pc of renewable hydrogen use in industry. Greece could be able to comply with this based on the NECP projections, with 700 GWh/yr use for ammonia production anticipated by then. Required electrolyser capacity is expected to rise to 680MW by 2035 and to more than 5GW by 2050 ( see table ). By 2035, the renewables share in Greece's electricity mix could reach 90pc, which would make it easier for grid-connected electrolysis projects to comply with the EU's definition of renewable hydrogen as it would remove requirements such as additionality and the need for power purchase agreements. Greece does not expect to require renewable hydrogen imports and could export into Europe in the long-run through two planned pipeline connections in the country's north, according to the NECP. It stops short of providing estimates for export potential, pointing to uncertainties around technological developments and demand. Carrots and sticks Athens wants to support the hydrogen sector through subsidies for production of renewable hydrogen and derivatives that could include demand-side incentives such as tax exemptions. The European hydrogen bank's auction-as-a-service system could be used for production support, but the NECP leaves open the possibility of other mechanisms. Mandated quotas for renewable hydrogen consumption in transport or industry could be "an effective mechanism" for reaching demand targets, but only once "the relevant applications" have reached "technical and economic" maturity, according to the NECP. The government is concerned about increases in consumer prices given the considerably higher costs for cleaner fuels. It points to potential detrimental effects on the tourism industry — which accounts for 13pc of gross domestic product — if the cost of airfares and coastal shipping increases significantly. Greece renewable H2 projections 2030 2035 2040 2045 2050 Injections into gas grid in TWh/yr 1.0 3.7 6.5 12.1 20.2 Of which: Heavy transport 0.0 0.0 0.6 1.1 1.9 Synthetic fuels 1.0 2.8 5.0 7.8 15.0 Ammonia production 0.0 0.7 0.8 3.0 3.2 Injections into gas grid 0.0 0.1 0.1 0.1 0.1 Electrolysis capacity in MW 187 680 1,232 2,347 5,188 - government Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazilian politicians, judges to advance green agenda
Brazilian politicians, judges to advance green agenda
Sao Paulo, 22 August (Argus) — Representatives from Brazil's three branches of government have pledged to work together to advance the country's green agenda by approving legislation, expanding funding and guaranteeing enforcement related to the environment and the energy transition. Representatives from the supreme court (STF) and congress, together with President Luiz Inacio Lula da Silva and members of his cabinet signed an agreement on Wednesday aimed at reinforcing the country's commitment to protecting the environment. On the legislative front, lower house speaker Arthur Lira and senate President Rodrigo Pacheco promised to give priority to legislation that will advance the transition to low-carbon energy. This includes legislation that will create a regulated carbon market, a bill regulating offshore wind projects as well as a proposal that will create blend mandates for advanced biofuels. Pacheco plans to hold a vote for the bill that will create a carbon market in the first half of September, a spokesperson for senator Leila Barros, who is elaborating the text, told Argus . Barros has made significant progress on the new draft of the bill, but is finetuning the final text to address demands from specific sectors of the economy, the spokesperson said. The senate is also finalizing its analysis of the fuels of the future bill, which will create blend mandates for hydro-treated vegetable oil (HVO) and sustainable aviation fuel (SAF) as well as clear the way to increase the mandatory ethanol and biodiesel blends in commercial fuels. Senator Veneziano Vital do Rego presented a draft of the legislation on 20 August and is working to hold a vote in early September on the bill, which passed the lower house in March. Legislation for offshore wind has also made progress in the senate, but a proposal has not yet been presented. A draft of the bill was approved by the lower house last year, but included amendments that would expand subsidies for fossil fuels, potentially raising electricity prices for consumers. As part of the agreement, the executive branch has also promised to make further progress towards guaranteeing financing for energy transition projects. Likewise, the judiciary has agreed to give priority to cases that involve environmental, climate and land ownership. Lula stressed that the agreement among the three branches of the government shows Brazil's willingness to take a leading role to protect that environment as it prepares to host the Cop 30 meeting in Para state in 2025. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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