Woodside wins bid for New Zealand hydrogen project

Market: Fertilizers, Hydrogen
29/11/22

Australian independent Woodside Energy has been selected as the preferred bidder for the development of the Southern Green Hydrogen project in New Zealand.

Woodside was selected ahead of renewable hydrogen developer Fortescue Future Industries, which is 100pc owned by Australian iron ore producer Fortescue Metals.

The project, designed to add 600MW of electrolyser capacity to the 850MW Manapouri hydropower station, had been originally planned by New Zealand utilities Meridian Energy and Contact Energy. But Contact has decided to no longer continue to the next phase of the project, although it has indicated an interest in continuing to support the project as a potential electricity supplier, Meridian said.

Japanese trading house Mitsui is also in discussions to join the project and develop the potential market for ammonia offtake, with the aim of collaborating on a full hydrogen and ammonia supply chain. Woodside, Meridian and Mitsui will work towards starting engineering and design work for the project, subject to finalising commercial arrangements, and move it to a final investment decision stage, Meridian said.

By Kevin Morrison

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28/03/25

India approves P and K subsidy for kharif 2025

London, 28 March (Argus) — The Indian government has approved the nutrient-based subsidy for phosphates and potash fertilizers for the kharif season, which runs from April until September. It has approved a total budget of 372.16bn rupees ($4.35bn) for the kharif season, which is 130bn rupees higher than the subsidy for rabi 2024-25 and around 128bn rupees higher than the allocation for kharif last year . The government said that the increased subsidy reflects the recent trends in international prices of fertilizers and inputs. The new rates are largely in line with the proposal made by the Inter-Ministerial Committee (IMC) in February, although the rate for DAP is slightly lower than the initial proposals as are the rates for the NPK grades, which moved according to the hike in the rate for P2O5. The subsidy for MOP will remain at Rs2.38/kg, unchanged on the level for the rabi season as proposed in September. This will give a per tonne subsidy rate for MOP of Rs1,428. The subsidy for phosphate will rise by 42pc from Rs30.80/kg for the rabi season to Rs43.60/kg. The subsidy for nitrogen will remain at Rs43.02/kg. This will give a per tonne subsidy rate for DAP of Rs27,799, a rise of Rs5,888/t from the base subsidy for rabi, slightly lower than the expected rise of around Rs6,000/t. The government will probably extend the Rs3,500/t special additional subsidy for DAP into kharif, bringing the total subsidy for DAP up to Rs31,299/t. The maximum retail price for DAP will remain at Rs27,000/t. At current market prices, DAP importers' margins will remain negative. The government will probably continue to compensate importers for losses on DAP, but there is no indication that Indian DAP producers will also receive compensation for losses. The rates for NPK grades have moved up according to the hike in the rate for P2O5. The new subsidies are as follows for the following key import grades when compared with the rates for rabi: 10-26-26 - Rs16,257/t, up by 26pc 20-20-0+13 – Rs17,663/t, up by 18pc 12-32-16 – Rs19,495/t, up by 27pc 15-15-15+9S – Rs13,585/t, up by 19pc A total of 28 fertilizer grades are included in the scheme. By Julia Campbell and Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US H2 projects stall, incentives fall short: Technip

28/03/25

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28/03/25

US H2 projects stall, incentives fall short: Technip

London, 28 March (Argus) — Many US hydrogen project developers have paused or cancelled plans after finding costs were too high and government incentives were insufficient, even before President Donald Trump's return to the White House added uncertainty, Paris-listed contractor Technip Energies has said. Developers rushed to hire contractors for project studies in 2022-23 in a wave of optimism after the US announced tax credits for hydrogen production , but many projects were shelved or suspended between the end of 2023 and mid-2024. This came as companies realised the true cost of many items not limited to CO2 capture, hydrogen storage, and hydrogen liquefaction, Technip Energies' director Randy Kessler said. Multiple developers hired Technip for feasibility studies and engineering designs so it witnessed the drop-off in project plans first hand, Kessler said. Renewable hydrogen projects faced the most challenges, but gas-based projects with carbon capture and storage (CCS) "did not fare too well either", Kessler said. "Nearly all" renewable hydrogen projects were suspended when true capital and operating costs became known, especially compared with conventional 'grey' hydrogen, Kessler said. "Economics generally prevail in the long run, and at 5-8 times the cost of grey H2 production, most big players and project developers found out the incentives did not cover the gap," he said. Most of Technip Energies' clients pursuing CCS-enabled projects eventually asked for estimates for conventional grey hydrogen plants, with "pre-investment" to add CO2 capture units in the future, Kessler said. Washington made matters worse for developers with "confusing" incentives and delays in finalising eligibility rules for the tax credits, which it only settled on in early 2025 , just weeks before the change in administration. "The people who made money were the consultants who told people what it all meant," Kessler said. The late-2024 US election became both an "issue" and an "an excuse" for developers to explain the lack of progress, Kessler said. Many US firms complained that political uncertainty during the election period hampered their business decisions. Politically powerful energy companies lobbying Washington for "appropriate levels of incentives to cover the gap" or relaxing tax credit rules to lower project costs would be the most likely way to revive the sector, Kessler said. The US could consider setting mandates, but this is unlikely unless there is "more global buy-in", he said. Few regions, aside from the EU, have proposed mandates, and even there they have not been firmly implemented. But US firms and industrial groups are focusing lobbying efforts on protecting the hydrogen tax credits rather than quibbling over the rules, US sources said. The return of Trump to the White House made the future of the tax credits less certain because of his preference for boosting US fossil fuel output over investing in clean energy. Another contracting firm, Black & Veatch, recently said it was unsurprised to see many speculative projects fall by the wayside, and that the best route forward is better quality and modestly-sized projects with clear offtakers. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US mulls cutting funds to H2 hubs outside of GOP states

27/03/25

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27/03/25

US mulls cutting funds to H2 hubs outside of GOP states

Houston, 27 March (Argus) — The US Department of Energy (DOE) is considering cutting funding to hydrogen hubs that are located in primarily Democratic states, while sparing those mostly spread across Republican states, according to a list shared with Argus . A table circulating among officials shows hubs that are to receive federal funding labeled as either "cut" or "keep." Out of the seven hubs, only three are set to "keep": HyVelocity, in Texas and Louisiana, the Appalachian hub spanning Ohio, Kentucky and West Virginia and the Heartland hub spread across Minnesota, South Dakota and North Dakota. The hubs that may lose federal support include California's ARCHES; the Pacific Northwest Hydrogen Association (PNWH2) spanning Oregon, Washington and Montana; the Midwest hub encompassing Illinois, Indiana and Michigan, and the Mid-Atlantic hub in Pennsylvania, Delaware, and New Jersey. With the exception of the Midwest hub, most of the hubs facing potential cuts would use renewable and nuclear power to produce hydrogen. Most of the projects in the hubs on the "keep" list would be powered by natural gas and use carbon capture and storage (CCS) facilities to reduce emissions. The DOE did not immediately respond to requests for comment. Fuel Cell and Hydrogen Energy Association (FCHEA) chief executive Frank Wolak said the list came from DOE but cautioned the department's plans are still unclear."We're aware a list has been created that shows four of seven hubs being cut," said Wolak. "We haven't seen anything formal and don't understand exactly what is the DOE intention." Hydrogen hub funding advanced by the administration of former president Joe Biden was expected to come under scrutiny after President Donald Trump paused disbursements and ordered a review of clean-energy initiatives. Federal funding for the hubs grew out of the bipartisan Inflation Reduction Act and the Infrastructure and Investment Jobs Act, which together dedicated $8bn to jump start domestic hydrogen production in industrial clusters from the east to west coasts. The funding was structured to pay out to the hubs over four phases spanning a decade, with disbursements dependent upon projects meeting defined objectives related to operational progress and private-investment commitments. The first tranches to the seven hubs, totaling over $20mn, have been delivered but the list of potential cuts puts the fate of the second phase into doubt. "So far the Trump administration hasn't attempted to claw back that phase-one funding," said Sara Gersen, senior attorney for Earthjustice. "The question is, what happens in 2026 when they try to renew contracts for phase 2?" ARCHES chief executive Angelina Galiteva said the California hub "remains committed to working with our partners to establish a secure, reliable and competitive hydrogen ecosystem". Spokespeople for the others hubs vulnerable to losing federal funds did not immediately respond to requests for comment. However, at least one of the hubs put out a public statement highlighting how its goals align with the administration's objectives. "Many of these opportunities will support rural communities" and "advance American energy independence", the Pacific Northwest hub said in a social media post. Environmental advocates argue that the climate benefits from hydrogen originating from natural gas with CCS, the technology proposed for projects on the "keep" list, evaporate when net emissions are taken into account and do not justify the potentially billions of dollars in federal support they may receive when compared to other decarbonization techniques. "Spending billions of dollars on untested carbon capture technology in applications with no net-climate benefit is a waste of taxpayer money," said Anika Juhn, IEEFA energy data analyst and co-author of the report Blue Hydrogen's Carbon Capture Boondogle . "Building out renewable power infrastructure, improving energy efficiency, and reducing methane leakage from the natural gas system are more cost-effective and proven approaches to a clean energy transition." For now, both fossil-fuel based and renewable energy companies have been lobbying the Trump administration to keep clean energy incentives enacted by the IRA without differentiating how the hydrogen is produced. The potential cut to federal funding is not expected to affect industry support for the most lucrative incentives that come in the form of tax cuts, such as the support that has coalesced around protecting the 45V hydrogen production credit, said Wolak. "I don't see any change to the agenda of 45V, that effort is primary," said Wolak. "I see an effort perhaps arising to define the hubs and the merit of the hubs rising parallel to the 45V effort." FCHEA is advising its members that may be affected by hub funding cuts to contact their congressional representatives, Wolak said. 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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Indian government considers raising DAP subsidy

27/03/25

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27/03/25

Indian government considers raising DAP subsidy

London, 27 March (Argus) — The Indian government is considering raising the nutrient-based subsidy (NBS) for DAP by around 6,000 rupees/t to around Rs27,911/t for the March-September kharif season. The special additional subsidy of Rs3,500/t for DAP, bringing the current subsidy to Rs25,411/t, is likely to be extended into the kharif season. The special subsidy was initially due to end by 1 April . This would bring the total subsidy for DAP to around Rs31,411/t from Rs25,411/t in the October 2024-March 2025 rabi season. The Inter-Ministerial Committee had proposed raising the NBS for DAP by Rs5,980.60/t last month. The government will still cover losses to importers, but there is no indication that losses will be made up for producers. The maximum retail price (MRP) for DAP is likely to remain at Rs27,000/t. The disparity between the NBS and MRP in India, and a bullish global market, have made DAP receipts unaffordable for Indian importers. Argus ' latest daily DAP assessment stands at $648-650/t cfr India, or $80/t higher than the midpoint of the 28 March 2024 assessment. Firm phosphoric acid and sulphur prices are lifting costs for domestic producers. Jordanian producer JPMC and Indian importer CIL have agreed a second-quarter phosphoric acid price of $1,153/t P2O5 cfr India, up by $98/t P2O5 from the first quarter. And Indian sulphur import prices are up by $91/t at the midpoint from the start of this year. But a drop of $102.50/t at the midpoint in ammonia cfr prices gives Indian producers some relief. By Adrien Seewald Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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QatarEnergy Marketing raises Apr sulphur price by $73/t

27/03/25

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27/03/25

QatarEnergy Marketing raises Apr sulphur price by $73/t

London, 27 March (Argus) — State-owned QatarEnergy Marketing has raised its April Qatar Sulphur Price (QSP) to $275/t fob, up steeply from March's $202/t fob Ras Laffan/Mesaieed. Last month's increase was already unusually large, rising by a substantial $30/t from February, despite being less than half of the latest on-month increment, but the spot market has moved up at an accelerated pace in recent weeks. The April QSP implies a delivered price to China of $295-301/t cfr at current freight rates. This was last assessed on 20 March at $20-21/t to south China and $24-26/t to Chinese river ports for a 30,000-35,000t shipment. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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