Dutch €1bn green H2 subsidy scheme to open in October
The Netherlands will accept bids for its €998mn ($1.07bn) scheme to support large-scale renewable hydrogen production plants on 15-31 October.
This round aims to support construction of "at least 200MW of electrolysis capacity" and has a budget more than four times larger than a previous subsidy round held last year, for which the successful bidders were announced in April.
It was initially announced by Dutch enterprise agency RVO in March and approved by the European Commission in July.
A single project can apply to receive a maximum subsidy of up to 50pc of the total amount. The subsidy scheme entails support for up to 80pc of a project's investment costs. It will also cover operating costs, with the latter to be granted for 5-10 years — depending on a project's specific requirements — through a contracts-for-difference mechanism.
For the operating subsidies, project developers have to provide their expected renewable hydrogen production costs up to a maximum of €9/kg. The subsidy is then calculated as the difference between this renewable hydrogen cost and the cost of making "grey" hydrogen from natural gas through steam methane reforming. The "grey" production cost will be determined on annual basis by the government. For 2024, it has been provisionally set at €3.8131/kg and the final cost cannot be lower than €1.7997/kg.
A final "grey" production cost will be determined by 1 April for each preceding year based on actual costs and market conditions. The cost calculations also take into account the value of guarantees of origin for renewable hydrogen and any revenues or cost savings from greenhouse gas emission allowances from which the project might benefit.
Projects will be selected based on their requested investment and operational subsidies, which will be expressed as € per MW of electrolysis capacity.
Projects must be completed and start production within five years of receiving the subsidy, although there is a possibility of extending this deadline by up to two years in certain cases.
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India selects winners for second electrolyser tender
India selects winners for second electrolyser tender
Mumbai, 14 August (Argus) — India has selected the winners of its second round of subsidy tenders to support 1.5 GW/yr of electrolyser manufacturing capacity, according to government sources. Out of the 23 companies that bid, India selected 13 to receive support ( see table ). But these results are still tentative and may change, a government source told Argus . The final list is likely to be published on the Solar Energy Corporation of India (SECI) website by next week. This round follows a similar structure to the first, with incentives starting at 4,440 rupees/kW ($53/kW) in the first year and decreasing annually. But India introduced a new category for smaller indigenously developed units. All categories in this round were oversubscribed , with the category for smaller indigenously developed units attracting the most interest. Some 13 companies bid for a combined capacity of 295 MW/yr but Indian only offered support for 100 MW/yr. Four companies won bids in this category. Conglomerate Adani, Eastern Electrolysers, and start-up Newtrace will each get subsidies for 30 MW/yr, the maximum capacity available for an individual firm. In the "any stack technologies" category, seven companies will share subsidies for 1.1 GW/yr of production. This category was also oversubscribed, with bids totalling over 2 GW/yr. Mumbai-based Waaree Energies and a consortium of engineering firms Gensol and Matrix Gas Renewables will receive the largest support in terms of production capacity. Waaree will receive subsidies for 300 MW/yr, the maximum support available for an individual company in this category. The Gensol and Matrix Gas consortium will receive subsidies for 237 MW/yr, followed by Advait Infratech, which secured support for 200 MW/yr. In the large "indigenously developed units" category, India only selected two firms. Newage Green Electro will receive support for 228.5 MW/yr, while Adani will receive support for 71.5 MW/yr. Several firms that won subsidies in the first round also participated in the second round. Adani Enterprises submitted bids across all three categories, totalling 233 MW/yr. In the previous round, its subsidiary, Adani New Industries, received subsidies for 198 MW/yr in the indigenously developed stack technology category. But the tender stipulates that the maximum capacity allocated to a bidder, including parent or affiliate companies, is limited to 300 MW/yr across all tranches and categories of India's production-linked incentive scheme, meaning Adani could not have won its full bid amount. US-based Ohmium and Gujarat-based Advait Infratech also submitted bids for extra subsidies in this round after winning in the first round. Renewable energy firm Avaada succeeded this time, securing support for 49.5 MW/yr after an unsuccessful bid in the last tender. Mixed results for India's other tenders India is expected to delay the deadline for its second round 450,000t/yr hydrogen production plant tender for 10-15 days, the official said. The government had previously asked for bids by 23 August, but this looks likely to push into September. Separately, SECI received around 500 queries from companies about for India's first renewable ammonia supply tender after the government last month set out details for its proposals for 10-year subsidy contracts, the official added. This tender has already faced delays and it could potentially need more time and work to resolve doubts and questions from the private sector. By Akansha Victor Winners of electrolyser manufacturing tender Manufacturing capacity in MW/yr Bucket 1: all stack technologies Avaada Electrolyser 50 Newage Green Electro 72 Waaree Energies 300 Gensol, Matrix Gas and Renewables 237 Advait Infratech 200 Ohmium Operations 137 GH2 Solar 105 Total bids 1100 Bucket 2A : indigenously developed stack technology Newage Green Electro 228 Adani Enterprises 71.5 Total bids 300 Bucket 2B : indigenously developed stack technology - smaller units Adani Enterprises 30 Eastern Electrolyser 30 Newtrace 30 Suryaashish KA1 Solar Park 10 Total bids 100 government sources Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US $5bn H2 hub in doubt as another firm revises plans
US $5bn H2 hub in doubt as another firm revises plans
London, 13 August (Argus) — Doubts over the realisation of the $5bn Hydrogen Heartland Hub (H2HH) in the US' Upper Midwest region are growing as another key project developer looks to revise its original investment plans. Minnesota-based utility Xcel Energy told Argus it is looking to adjust its original plans because of changes to costs and regulation over the last two years. Xcel is working with the US Department of Energy (DOE) to evaluate alternatives, it said. Delays appear likely and it is not certain what form the projects may eventually take. "Much has changed since we shared our hydrogen vision two years ago, and recent federal rules, market developments and stakeholder preferences have shifted," Xcel Energy said. "Our proposed projects in the Heartland Hub are still in early-stage development, but the cost forecasts, policy developments and the regulatory uncertainty make aggressive development unlikely," it added. Xcel had planned to invest $1.5bn-2.5bn in two of three plants in the Heartlands Hub (HH2H) that was already set back by the cancellation of its other project — a $2.2bn joint venture — earlier this month. That departure had left Xcel as the hub's main private-sector developer. Questions over the hub's future come despite the DOE offering $925mn towards HH2H as part of the US' $7bn hydrogen hub funding programme (see map). As part of the hub, Xcel had announced a project in South Dakota to make hydrogen from wind power for supply to Minnesota's One Earth Renewables that would use the supply to produce "carbon neutral" fertilisers. The firm had also announced a separate project in Minnesota slated to use a mix of nuclear, solar, and wind to make hydrogen for blending into natural gas distribution systems and power generation. But plans for the projects appear to have been far from concrete. "Detailed project design will begin until after HH2H and DOE finish award negotiations ," Xcel said last year. The DOE was to contribute $565mn to Xcel's projects, the company had said last year. It is unclear what may happen to these funds and the full $925mn awarded to HH2H if Xcel changes its plans. DOE was not immediately available to comment on how project changes may affect hub funding. The Heartland Hub — led by the University of North Dakota's Energy and Environment Research Center — is "collaborating with the DOE to finalize the HH2H contract and anticipates Phase 1 work commencing in late summer 2024," the Center told Argus . It maintains an "optimistic outlook on the broad opportunities" of hydrogen technology and "maintains solid relationships with a diverse spectrum of stakeholders" that extends "well beyond the initial cornerstone partners" of HH2H, it said. The US has awarded around $30mn each to three hubs so far this summer — in California , in the Pacific Northwest , and in Appalachia — to start ‘phase 1' planning activities. By Aidan Lea Selected US hydrogen hubs Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
H2 project on Australia’s busiest road hits rough patch
H2 project on Australia’s busiest road hits rough patch
London, 9 August (Argus) — The government-backed project to develop hydrogen refuelling along Australia's busiest road freight route appears to have run into some difficulty as it has still not announced an "industry partner" and the two most likely companies to take on the role — BP and Ampol — appear to no longer be participating in the selection process. The governments of New South Wales (NSW) and Victoria have offered a combined A$20mn ($13.2mn) to entice a private sector developer to take on the Hume Hydrogen Highway project and planned to announce their chosen partner by mid-2024, but have made no announcement to date. BP and Australian refiner and retailer Ampol, who have existing road fuel outlets along the route, were participating in the selection process but are no longer in the running, a source with knowledge of the process has said. Government planners appeared to have cooled their interest in the project and had discouraged companies from advancing with it, they added. A spokesperson for the project from the NSW government declined to comment on the status of the project or the exit of the companies from the process. "There are no updates we are able to provide on this project at this time," they said. BP and Ampol have not responded to request for comment. The Hume Hydrogen Highway initiative aims to build a network of at least four hydrogen refuelling stations on "Australia's busiest freight corridor" between the east coast cities of Sydney and Melbourne, the state governments announced in 2022 . It is intended to support a fleet of at least 25 hydrogen-powered freight trucks starting from June 2025, and must dispense renewable hydrogen, they had said. The states had also outlined the possibility to expand to Queensland for a future east coast network. The NSW government is considering changes to its renewable fuels policy, which could involve promoting other renewable fuels aside from hydrogen for short and medium-term CO2 abatement, while maintaining support for hydrogen as a longer-term option, it said last week. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Jogmec makes first e-methanol investment: Correction
Jogmec makes first e-methanol investment: Correction
Corrects Jogmec's acquisition of a stake in HIF Global.in paragraph 2 Tokyo, 9 August (Argus) — Japan's state-owned energy agency Jogmec is investing for the first time in the e-methanol sector since the launch of a financing scheme in 2022 to aid domestic supplies of low-carbon fuels. Jogmec announced on 8 August that it has accepted Japanese refiner Idemitsu's application to Jogmec's overseas financing scheme for hydrogen and low-carbon fuels-related projects. Jogmec will provide $36mn to the US' HIF Global through Idemitsu's US subsidiary Idemitsu Efuels America (IEAC) and obtain an undisclosed stake in the IEAC. Idemitsu, through IEAC, will also invest $114mn to secure an undisclosed stake in US' HIF Global. The deal follows Idemitsu's initial agreement with HIF in March 2023 to work on production and promotion of e-fuels, along with a decision to buy e-methanol from HIF and jointly study the possible development of the fuel. Idemitsu and Jogmec plan to import e-methanol and other synthetic fuels from HIF's projects and use them as shipping fuels, as well as feedstocks to generate synthetic fuels and petrochemical products. HIF is targeting to produce around 4mn t/yr of e-methanol equivalent by 2030 at its production sites in Tasmania in Australia, Matagorda in the US, Magallanes in Chile and Paysandu in Uruguay. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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