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Japan to speed up investment in energy transition

  • Spanish Market: Coal, Electricity, Emissions, Fertilizers, Hydrogen, Metals, Natural gas, Petrochemicals
  • 01/04/21

The Japanese government is working on domestic guidelines for local financial institutions providing climate transition finance, as part of efforts to create an efficient environment on energy transition investment in the run-up to 2050.

The government's financial services agency, the trade industry (Meti) and environmental ministries, have jointly drafted guidelines on transition finance for Japanese financial institutions as part of the government's effort to accelerate energy transition and achieve its 2050 decarbonisation goal. The draft guidelines are targeted for official release in early May following a month-long public consultation.

Tokyo plans to set up working groups in the April 2021-March 2022 fiscal year and put together a detailed transitional roadmap for each industry that emits heavy greenhouse gases (GHG), including steel, chemical, power, gas and shipping, to decarbonise their operations towards 2050. The steel industry, Japan's biggest GHG emitting industry, has pledged to achieve a decarbonisation by 2050 in line with the government's target.

Japan's domestic guideline has been drafted in accordance with the climate transition finance handbook published in December by the International Capital Market Association (ICMA) to provide clear guidance to capital market participants when raising funds in debt markets for climate transition-related purposes. Heavy GHG-emitting manufacturers are expected to face a difficulty in utilising green financing instruments, including green bonds, which are designed to finance carbon-neutral projects. But these manufacturers can facilitate transitional loans and bonds, for example, when moving to greener operations.

Tokyo is also considering supporting energy transition in the Asian market, particularly developing and Asean nations, upon the completion of its clear guideline on transition financing. Meti plans to back exports of Japan's low-carbon technology in the power sector, including development of renewable power, and ammonia- and hydrogen-fired power capacity, as well as an LNG shift and carbon capture utilisation and storage.

Japanese shipping firm K Line last month signed the country's first transition finance agreement to partially fund the construction of the LNG-fuelled car carrier Century Highway Green. The firm's ¥5.9bn ($54mn), 14-year loan was arranged by Japanese banks Mizuho Bank and Sumitomo Mitsui Trust Bank.

Japanese debt watcher Japan Credit Rating Agency has evaluated the eligibility for transition finance in line with ICMA's guidelines, including whether the project could achieve sufficient CO2 reductions and meet the International Maritime Organization's (IMO) emissions reduction requirement for the global shipping industry. The IMO has set a 2050 target to reduce the global shipping industry's GHG emissions by 50pc and carbon intensity by 70pc from 2008 levels.


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06/09/24

Egypt’s Egas seeks LNG over October-December

Egypt’s Egas seeks LNG over October-December

Singapore, 6 September (Argus) — Egypt's state-owned gas firm Egas is seeking 20 spot LNG cargoes for delivery over October-December through a tender that will close on 12 September. The firm is seeking 17 deliveries to Ain Sukhna, and three deliveries to Jordan's 3.8mn t/yr Aqaba import terminal, through a tender that closes on 12 September. This tender may create additional competition for spot LNG for European buyers. News of the tender may have contributed to a rise in European gas prices, with the front-month contract at the Dutch TTF trading at over €37.50/MWh in the morning, against an Argus assessment of €36.13/MWh on Thursday. But the TTF lost most of its gains later in the day. Egas was last in the market to seek up to five cargoes for delivery over August-September , through a tender that closed on 29 July. This tender was likely to have been fully awarded at an average of a $1.50/mn Btu premium to the TTF, possibly to TotalEnergies, Gunvor and BP, traders said. Traders in mid-August estimated that Egypt would seek about eight to 15 spot cargoes for winter. Its latest requirement for 20 cargoes may indicate that the country's demand for imports is leaning towards the higher end. At the same time Egas executive managing director Magdy Galal had told Argus this February that Egypt would be able to export in winter 2024-25, "as usual". Europe was the main destination for Egyptian LNG exports in recent years. Egypt shipped 84 cargoes to Europe in the past two years, while only 35 vessels were exported elsewhere. Croatia, Greece, Italy, Poland, France, the Netherlands, Spain and the UK were among the recipients of Egyptian cargoes. Egypt last exported LNG in April, when it delivered 209mn m³ of equivalent pipeline gas, data from the Joint Organisations Data Initiative (Jodi) show. But Egypt's appetite for spot cargoes is likely to remain, particularly as domestic gas production in the country has been falling. Gas production in Egypt fell to its lowest for seven years in June , the latest Jodi data show. At the same time, its pipeline gas deliveries from Israel have been hit with uncertainty since the start of the Israel-Hamas conflict in Gaza. Pipeline deliveries from Israel to Egypt fell to 731mn m³ in June from 851mn m³ in May, having reached record highs earlier this year. LNG exports from Egypt this winter are "not very likely" , Italy's Eni said on 26 July. By Rou Urn Lee and Alexandra Vladimirova Egas tender delivery windows Delivery to Ain Sukhna, Egypt Delivery to Aqaba, Jordan 4-5 October 2024 16-17 October 2024 9-10 October 2024 21-22 November 2024 14-15 October 2024 23-24 December 2024 19-20 October 2024 24-25 October 2024 29-30 October 2024 8-9 November 2024 13-14 November 2024 18-19 November 2024 23-24 November 2024 28-29 November 2024 3-4 December 2024 9-10 December 2024 15-16 December 2024 21-22 December 2024 27-28 December 2024 31 December 2024 - 1 Jan 2025 Source: Egas Egas tender delivery windows Delivery to Ain Sukhna, Egypt Delivery to Aqaba, Jordan 4-5 Oct 2024 16-17 Oct 2024 9-10 Oct 2024 21-22 Nov 2024 14-15 Oct 2024 23-24 Dec 2024 19-20 Oct 2024 24-25 Oct 2024 29-30 Oct 2024 8-9 Nov 2024 13-14 Nov 2024 18-19 Nov 2024 23-24 Nov 2024 28-29 Nov 2024 3-4 Dec 2024 9-10 Dec 2024 15-16 Dec 2024 21-22 Dec 2024 27-28 Dec 2024 31 Dec 2024 - 1 Jan 2025 — Egas Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Indian state approves chip, EV manufacturing plants


06/09/24
06/09/24

Indian state approves chip, EV manufacturing plants

London, 6 September (Argus) — The Maharashtra state cabinet in India has approved three foreign investment manufacturing projects — a $1bn semiconductor plant and two battery electric vehicle (EV) and hybrid vehicle factories. The semiconductor chip plant, a joint venture between Israel-based Tower Semiconductor and Indian industrial conglomerate Adani Group, is planned to be built in two phases. The 587.63bn rupees ($7bn) first phase will have a production capacity of 40,000 wafers/month and the Rs251.84bn second phase will add another 40,000 wafers/month, the state's deputy chief minister, Devendra Fadnavis, announced. The facility, to be located outside Mumbai, will be the second semiconductor fabrication plant in the country. The project still needs approval from the central government and Ministry of Electronics and IT, which plans to revise its semiconductor incentives. The project is designed to capitalise on the Indian government's plans to establish a domestic semiconductor manufacturing supply chain, driven by strong local demand in the electronics, EV and manufacturing sectors. Earlier this week, the Indian cabinet approved a proposal from Kaynes Semicon to set up a chip assembly, testing and packaging plant in Gujarat. The Rs33bn plant will have a capacity to handle 6mn chips/d. The governments of India and Singapore on Thursday signed an agreement to co-operate on semiconductor industry development and supply chain resilience, with an eye to Singaporean companies investing in Indian production. The two automotive plants that were also approved by Maharashtra state will be built by Skoda Auto Volkswagen India and Toyota Kirloskar, which is a joint venture between Japan's Toyota Motor and local firm Kirloskar Systems. The Rs150bn Skoda facility in the city of Pune will produce battery electric and hybrid cars. The company already has plants in Pune and Chhatrapati Sambhaji Nagar (previously named Aurangabad), which produce 180,000 cars and 60,000 cars, respectively. The Rs212.73bn Toyota plant will be built in Chhatrapati Sambhaji Nagar and will manufacture battery EVs, hybrids, plug-in hybrids and fuel cell vehicles. The announcement comes after the company signed an initial agreement with the Government of Maharashtra in July to explore setting up a new manufacturing plant in the city. The company operates two automotive plants in Bidadi in the state of Karnataka with an annual installed capacity of 3.42mn vehicles/yr and plans to build a third plant in the town to start operations in 2026 with a capacity of 1mn units/yr. The new plants reflect Toyota Kirloskar's growing product portfolio at it expands into EV manufacturing, rising consumer demand and an increase in exports, the company said. By Nicole Willing Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US adds 142,000 jobs in August, unemployment at 4.2pc


06/09/24
06/09/24

US adds 142,000 jobs in August, unemployment at 4.2pc

Houston, 6 September (Argus) — The US added 142,000 nonfarm jobs in August, fewer than forecast, raising the odds of a half-point rate cut at the Federal Reserve's policy meeting in two weeks. The job gains followed downwardly revised gains of 118,000 for June and 89,000 for July, for combined losses of 86,000 for the two prior months, according to the Labor Department. The gains in August were below the average monthly gain of 202,000 for the prior 12 months. The unemployment rate ticked down to 4.2pc in August from 4.3pc in July, still near five-decade lows of 3.4pc reached in early 2023. The gains were slightly lower than the 160,000 job gains forecast in a survey by Trading Economics, increasing the odds of a 50 basis point cut in the target rate to 45pc probability today from 40pc Thursday, according to the CME FedWatch tool. Odds of a quarter point cut fell to 55pc today from 60pc the day prior. Fed policy makers in late July kept their target rate unchanged at a 23-year high, but Fed chair Jerome Powell told a bankers symposium last month that the "time has come for policy to adjust," his clearest signal that the Fed is ready to begin lowering borrowing costs as inflation has slowed markedly and the labor market was beginning to show signs of weakening. A rate cut after the 18 September Fed meeting would come less than two months before the US presidential election on 5 November. Job gains were reported in construction and health care. Health care added 31,000 jobs in August, about half the monthly gain in the prior year. Construction added 34,000 jobs, more than the average. Manufacturing jobs fell by 24,000 in August. Employment was little changed in other major industries, including mining and oil and gas extraction. Average hourly earnings increased by 3.8pc over the 12 months ending in August, up from 3.6pc through July. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Ivory Coast’s Intercoton issues NPK, urea buy tender


06/09/24
06/09/24

Ivory Coast’s Intercoton issues NPK, urea buy tender

London, 6 September (Argus) — Ivory Coast cotton producers association Intercoton is understood to have issued a tender to buy 102,000t of 15-15-15+6S+1B and 30,720t of urea, closing on 7 October. Intercoton is seeking 11,500t less NPKSB and 2,380t less urea than its request under its large-scale tender last year, which it awarded to 16 suppliers . By Nykole King Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

PCC BakkiSilicon calls for trade defence on Chinese Si


06/09/24
06/09/24

PCC BakkiSilicon calls for trade defence on Chinese Si

London, 6 September (Argus) — Iceland's PCC BakkiSilicon has renewed its call for political support to apply increased anti-dumping duties on silicon metal from China, produced at lower prices with higher emissions, after PCC received an International Sustainability and Carbon Certification (ISCC) certifying its CO2 equivalent footprint. PCC BakkiSilicon — the Icelandic subsidiary of Germany's PCC SE — is discussing protective measures on an EU level through industry association Euroalliages, and directly with the German and Icelandic governments, a company representative told Argus . "Protective measures for the silicon industry should consist of an increase of anti-dumping duties from China," the representative said. "As well as stronger measures to comply with supply chain law requirements to prevent imports of material that is being produced under violation of human rights, work safety and environmental standards," they added. Silicon metal imported into the EU from China is already subject to an anti-dumping duty of 16.8pc (or 16.3pc for Datong Jinneng Industrial Silicon) originally imposed on 1 July 2016, and renewed on 11 August 2022 after a request for review from Euroalliages. Anti-dumping measures are usually imposed for five years, but interested parties may ask for an interim review provided that there is sufficient evidence of changed circumstances. Interim reviews usually concern the level of duty in force, but can also extend to injury, scope and form of measures. Whether an interim review can be requested remains open at the time being, the PCC representative said. The renewed political plea comes as PCC is the first silicon producer to receive ISCC Carbon Footprint Certification, confirming a footprint of 3,102.56kg CO2 equivalent (CO2e) per t of silicon metal — as produced in the reference period from 1 July 2022 to 30 June 2023. This is compared with a global industry average of 10,900kg CO2e/t of silicon metal, according to PCC, and the company estimates that Chinese manufacturers are operating far above this number. "The material produced so efficiently in environmental terms by PCC in Iceland is rarely measured by customers in Europe against criteria such as sustainability or climate protection, but still only against price," PCC SE chief executive Peter Wenzel said. By Samuel Wood Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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