Generic Hero BannerGeneric Hero Banner
Latest market news

Uganda says carbon neutrality plans hinge on oil, gas

  • Market: Electricity, Emissions
  • 12/10/23

Uganda has announced that it will release plans to achieve carbon neutrality by 2050 at the UN Cop 28 climate summit in the UAE next month, adding that the country will mobilise oil and gas revenues to achieve its energy transition goals.

"We are fully focused on ensuring our energy security, so the oil and gas sector, which we are developing in a sustainable way environmentally, will support us in our energy transition plan by providing the required financing", said the secretary of the ministry of Energy and Mineral Development Irene Bateebe. She added that the country will use the revenue generated by its "new oil and gas sector to ensure projects to develop energy from wind, solar and sustainable biomass for isolated off-grid communities".

The strategy will be built on three pillars — expansion of renewable energy — especially hydropower, financing reforestation programmes to meet commitments made at Cop 26 and Cop 27, and ensuring universal access to electricity in the country by 2040.

"We commit to continuing the development of renewables and decarbonisation, but we are also committed to the country's economic development," Bateebe said.

Uganda is pursuing a programme to develop nearly 52,000MW of hydropower by 2040. Around 80pc of Uganda's energy already comes from clean hydropower, according to Bateebe.

The building of a new 600MW hydropower dam was partly financed by the new Uganda Petroleum Fund established in coordination with the ministry of finance to support infrastructure development in the country, she said.

Uganda estimates oil and gas developments plans will provide a boost of more than $40bn to the economy over the next 25 year.

TotalEnergies began drilling operations at the 190,000 b/d Tilenga oil field in the Lake Albert region of Uganda in July, ahead of planned first oil production in 2025. TotalEnergies and CNOOC are leading the upstream development in partnership with Uganda's state-owned Unoc. It is envisaged that by 2025 at least 70 wells will be in place, paving the way for commercial production. The project will be served by the East African Crude Oil Pipeline (EACOP), which will link the fields to the Tanzanian port of Tanga. But EACOP has faced strong opposition since its inception, with environmental campaign groups putting pressure on financial institutions not to fund the project because of the associated ecological and humanitarian risks.

By Ieva Paldaviciute


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
18/02/25

US court pauses refiner's biofuel case after EPA shift

US court pauses refiner's biofuel case after EPA shift

New York, 18 February (Argus) — A US federal appeals court has paused the Environmental Protection Agency (EPA)'s rejection of a refiner's request for exemptions from federal biofuel blend mandates, with relief possible for two more refiners as the US reassesses policy under a new administration. A three-judge panel on the US 5th Circuit Court of Appeals last week granted a request from Calumet's 57,000 b/d refinery in Shreveport, Louisiana, to pause a recent EPA action denying the refinery relief from its 2023 obligations under the federal Renewable Fuel Standard. The stay will remain as the court continues reviewing the legality of EPA's rejection, issued in the waning days of President Joe Biden's administration. Under the program, EPA sets annual mandates for blending biofuels into the conventional fuel supply but allows oil refineries that process 75,000 b/d or less to apply for exemptions if they can prove they would suffer "disproportionate" economic hardship. The Biden administration denied these petitions en masse, though most of these rejections were struck down by courts concerned with the government's reasoning. During his first term, President Donald Trump was more generous with refinery relief, which in turn weighed on biofuel demand and the prices of Renewable Identification Number (RIN) credits at the time. Though the 5th Circuit did not explain its decision, EPA had shifted course after the presidential transition, telling the court earlier in the week that it did not oppose Calumet's request for a stay and that it was reconsidering the refiner's earlier exemption petition. The agency said in other court cases that it would not oppose similar pauses on recently issued waiver rejections affecting Calumet's 15,000 b/d oil refinery in Great Falls, Montana, and CVR Energy's 75,000 b/d refinery in Wynnewood, Oklahoma. EPA's ambivalence makes stays more likely, leaving those refiners with little reason for now to enter the market for RIN credits. The agency still says it "takes no position on the merits" as its review of small refinery exemptions continues but the filings at least suggest the possibility of reversing prior rejections. EPA has not yet signaled a more substantive policy around how it will handle similar small refinery requests, which have piled up in recent months. There were 139 pending petitions covering ten compliance years according to the latest program data. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

UN Green Climate Fund approves $483.1mn for projects


18/02/25
News
18/02/25

UN Green Climate Fund approves $483.1mn for projects

London, 18 February (Argus) — The UN Green Climate Fund (GCF) has approved eight projects, allocating $483.1mn in climate funding across 31 developing countries. The GCF will consider four more projects — which would allocate around $253.7mn — during its board meeting, which runs from 17-20 February. Of the approved projects, five are focused on adaptation — adjusting to the effects of climate change where possible — and three on adaptation and mitigation, which refers to cutting emissions. The GCF operates under the financial mechanism of UN climate body the UNFCCC and is mandated to invest half of its resources in mitigation and half in adaptation. It is the world's largest climate fund and was originally capitalised with $10.3bn in 2015. The fund's first replenishment, in 2019, gathered a further $10bn in pledges and its second replenishment reached around $13.6bn after funds committed at the UN Cop summits in 2023 and 2024 . But the US rescinded "outstanding pledges" to the fund earlier this month, the country's State Department said. These are thought to amount to around $4bn. Recent UN climate talks have centred around finance for developing countries, to address climate change and decarbonise. Countries agreed at last year's Cop 29 to a new financing goal of "at least" $300bn/yr for developing nations by 2035. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Japan approves new energy mix target, climate plans


18/02/25
News
18/02/25

Japan approves new energy mix target, climate plans

Tokyo, 18 February (Argus) — Japan has approved its targeted power mix portfolio for the April 2040-March 2041 fiscal year, as well as its new greenhouse gas (GHG) emissions reduction goal, it announced today. The new power mix goal, the centrepiece of the country's Strategic Energy Plan (SEP), is in line with Japan's aim to reduce GHG emissions by 73pc by 2040-41 compared to 2013-14 levels. Tokyo plans to submit the 2040-41 emission target, as well as a 60pc emissions reduction goal for 2035-36, to the UN climate body the UNFCCC on 18 February as the country's nationally determined contribution (NDC). The country has not made major changes to its draft proposal that it unveiled in December. The new SEP sees renewable energy making up 40-50pc of the country's power generation in 2040-41, up from 22.9pc in 2023-24. The share of thermal power will fall to around 30-40pc from 68.6pc, while that of nuclear will increase to around 20pc from 8.5pc during the same period. The 2040-41 target is based on Japanese power demand of 1,100-1,200 TWh, which is higher by 12-22pc from 2023-24. The government has planned the power portfolio so that it is not heavily dependent on one specific power source or fuel type, the country's minister for trade and industry (Meti) Yoji Muto said on 18 February, although the new plan suggests making maximum use of low-carbon power supply sources. Public consultation over 27 December-26 January revealed that some think Japan should slow or even stop the decarbonisation process, given the US government's reversal of its climate policies, including its withdrawal from the Paris climate agreement, said Meti. But global commitment to decarbonisation will remain unchanged, said Muto, adding that Japan will lose its industrial competitiveness if the country delays green transformation efforts. But US president Donald Trump's "drill, baby, drill" policy has prompted the Japanese government to delete a segment from the draft SEP that had initially proposed bilateral co-operation through Tokyo's green transformation strategy and the US' Inflation Reduction Act. Despite Tokyo's decarbonisation goals, the new SEP assumes that fossil fuels, including natural gas, oil and coal, will still account for over 50pc of primary energy demand in 2040-41 in all of its scenarios — although this is down from 93pc in 2013-14 and 83pc in 2022-23. The scenarios vary based on the degree of uptake of renewables, hydrogen and its derivatives, and carbon capture and storage (CCS) technologies, to fulfil the 73pc emission reduction goal by 2040-41. Worst-case scenario Tokyo also has also set out a potential worst-case scenario, assuming slower development of clean technologies, in which fossil fuels would still account for 67pc of primary energy supply in 2040-41. Under this scenario, which assumes Japan will only reduce its GHG emissions by around 61pc by 2040-41, natural gas is estimated to account for about 26pc, or 74mn t, of Japan's primary energy supply, which is higher than the 53mn-61mn t in the base scenarios that are formulated in accordance to the 73pc emissions reduction target. Japan would need to address the potential 21mn t gap in gas demand, which will mostly be met by LNG imports, in 2040-41, depending on the development of clean technologies. The gap is equivalent to 32pc of the country's LNG imports of 65.9mn t in 2024. When asked by Argus whether the government will continue to try securing LNG to ensure energy supply security when considering the worst-case scenario, a Meti official said Tokyo should continue pursuing its 73pc GHG reduction target, but it is necessary to consider the potential risks for each individual policy and the measures that need to be taken, instead of making decisions based on the worst-case scenario. The new SEP has highlighted the role of LNG in the country's energy transition and the necessity to secure long-term supplies of the fuel. It is unclear what ratio gas-fired capacity will account for in Japan's 2040-41 power mix, as the SEP does not include a breakdown of thermal generation. But gas-fed output is expected to take up the majority share, given that gas has already outpaced coal in power generation and Tokyo has pledged to phase out inefficient coal-fired plants by 2030. By Motoko Hasegawa and Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Frustration over delays to UK CCS and H2 programmes


17/02/25
News
17/02/25

Frustration over delays to UK CCS and H2 programmes

London, 17 February (Argus) — Companies are growing increasingly frustrated with the UK government over unclear timelines and inadequate funding for carbon capture and storage (CCS) and clean hydrogen projects. The government has drawn strong praise for the design of its contracts-for-difference style production subsidies for electrolytic hydrogen and CCS systems to underpin low-carbon hydrogen from fossil fuels. But too few projects have been able to access the schemes and developers are losing confidence that the UK will match their ambition with sufficient and timely funding. "It's like building a great motorway with five lanes but very few, or no junctions," industry body OEUK's head of energy policy Enrique Cornejo said. "We have a great policy framework, but we don't have access, apart from a very small number of projects," he told the UK CCUS and Hydrogen Decarbonisation Summit in Leeds, northern England this month. Cornejo welcomed a recent final investment decision (FID) for the Teesside CCS system and progress made on northwest England's HyNet cluster, which is expected to reach FID this year, but he urged the government to set out funding and timelines for the Scottish "Acorn" and Humberside "Viking" CCS projects that are supposed to be next in line. "It's been a really long wait for these projects and the risk is very clear that if we don't hear some positive news from the government" there could be "lost investment", he said. It is a view shared by Norway's Equinor, which owns 45pc of the Teesside CCS project and a portfolio of Humberside hydrogen proposals that are in limbo having been overlooked in initial government selections. "Keeping projects on life support costs a lot of money," said the company's director of UK low-carbon solutions hydrogen, Dan Sadler. Equinor has spent "hundreds of millions" on its proposals for CCS-based hydrogen production, electrolytic hydrogen production, transport and storage infrastructure, he said. Sadler made the same appeal 12 months ago but has still received no update on the timing for the so-called "track 1 expansion process" which would allow its CCS-hydrogen project to move ahead. Optimism over the "fantastic" Teesside FID and contracts signed with three electrolytic projects must be balanced against concerns that HyNet has not reached FID nor have any of the UK's CCS-based hydrogen plants , Sadler said. On electrolytic hydrogen, the UK missed its deadline to shortlist winners of second round projects in 2024. Multiple electrolysis-focused developers at the Leeds conference talked of "standstill" in the sector, while financiers echoed the importance of the UK's second hydrogen allocation round (HAR2) shortlist. "We're waiting with bated breath for HAR2 so we know which projects we can look to finance," UK-based National Wealth Fund's managing director of banking and investments, Emily Sidhu, said. Opening applications for the UK's subsidy scheme for hydrogen pipeline and storage infrastructure has slipped to the fourth quarter of this year, which means it could be many months into 2026 before winners are selected and years until the projects get built. UK pipeline operators envy the government support that peers in continental Europe have received and have been trying to alert London about what companies perceive to be unduly arduous permitting processes, one pipeline firm told Argus . Emperor's new clothes The funding appeals come at a difficult time. The Labour government, which was elected last year, is reviewing spending across all departments, creating extra doubt. The total cost of the UK's ambitions for hydrogen and CCS would surpass several times over the £21.7bn ($27.3bn) for CCS and £2bn for electrolytic hydrogen that the government has confirmed for the first rounds. While raising funds from the government, the Emissions Trading System (ETS) or the so-called gas shipper obligation are possibilities, it is not sufficiently clear to give confidence to investors, Equinor's Sadler said. Moreover, the Labour administration has not said if it will stick to the former Conservative government's targets, Sadler noted. "It's rhetoric. Government policy for hydrogen and CCS? There isn't any. People quote 10GW [hydrogen production] and four [CCS] clusters by 2030 and 30mn t/yr [CO2 sequestration] by 2030. That's the Tory [Conservative] policy, the Labour government hasn't got a policy at the moment," Sadler said. The industry's belief in the UK as an investment proposition cannot be sustained forever, he said. The UK's Department for Energy Security and Net Zero has not responded to questions about the Labour government's hydrogen targets. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Philippines to review shutdown of 232MW coal plant


17/02/25
News
17/02/25

Philippines to review shutdown of 232MW coal plant

Manila, 17 February (Argus) — The Philippines will review plans to retire the 232MW Mindanao coal-fired power plant in Misamis Oriental province because the rehabilitation of a major regional power complex could cause an electricity supply shortage. The country could put on hold plans to accelerate the retirement of the Mindanao coal plant to 2026 from 2031, the Department of Energy (DoE) said. The plant, majority owned by private-sector Aboitiz Power, started operations in 2006 under a build-operate-transfer (BOT) agreement with the National Power and Power Sector Assets and Liabilities Management. The plant was originally scheduled to be retired in 2031 once the BOT agreement had run its course and plant ownership transferred to the national government, but authorities later decided to shut it down by 2026. The plant consumes over 1mn t/yr of coal. Authorities might review the retirement plans to offset the loss of power supply from the 1,000MW Agus-Pulangi hydropower complex, which will be rehabilitated next year. The complex comprises seven hydropower plants and serves as a key source of baseload power in the Mindanao grid. It is currently capable of producing only 600-700MW of power because of siltation and ageing infrastructure. Parts of the power complex are over 50 years old and its oldest dam, Agus 6, started commercial operations in April 1971. The rehabilitation involves repairing, replacing and upgrading the components of an existing hydroelectric power plant to restore its functionality, improve efficiency and extend its lifespan. The complex will run at a derated capacity during rehabilitation works, which could take several years. This comes as power demand in the Mindanao grid continued to increase last year. Demand averaged 2.248GW in 2024, a 10.2pc increase from 2.040GW a year earlier. The Mindanao plant could supply enough power to keep the grid stable at its full capacity, by covering for the loss in generating capacity and meeting the increase in power demand, DoE added. By Antonio Delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more