Japan’s Development Bank invests in US e-SAF producer

Spanish Market: E-fuels
14/02/25

State-owned Development Bank of Japan (DBJ), shipping firm Mitsui OSK Line and trading company Mitsui have invested an unspecified sum in California-based synthetic sustainable aviation fuel (e-SAF) producer Twelve Benefit.

The total investment by the Japanese companies amounts to billions of yen, DBJ said, without giving more details. Its aim is to support the growth of the global e-SAF market, given Japan needs to secure a stable supply network to meet future SAF demand. DBJ previously invested in US-based e-fuels producer Infinium.

Twelve converts CO2, water and renewable energy into hydrocarbons, and makes e-fuels that it hopes will partly substitute for conventional fossil fuels. DBJ expects Twelve's business to expand and is optimistic about its prospects as demand for e-SAF increases, given the required technology is hard to develop.

Japan plans to replace 10pc of the jet fuel consumed by domestic airlines with SAF in 2030. The global aviation industry is aiming to achieve net zero emissions in 2050.

By Kohei Yamamoto

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17/04/25

Japan’s Mitsui invests in US e-fuel producer

Tokyo, 17 April (Argus) — Japanese trading company Mitsui has invested in California-based synthetic fuel (e-fuel) producer Infinium, aiming to acquire knowledge on technology and commercialisation in the emerging sector. The investment in Infinium was conducted in March, Mitsui told Argus on 16 April, declining to disclose the specific amount. This marks Mitsui's second investment in e-fuel producers. The firm invested in California-based synthetic sustainable aviation fuel (e-SAF) producer Twelve Benefit . Infinium produces green hydrogen from water by electrolysis, and converts the hydrogen and CO2 into e-fuels by using renewable energy. The firm is planning to launch its second plant, which will specialise in e-SAF production. International Airlines Group (IAG) and American Airlines have agreed to receive the e-SAF that will be produced at the plant. E-fuels can help reduce over 90pc of greenhouse gas (GHG) emissions compared with conventional fossil fuels, and are notable as "drop-in" substitutes for conventional fuels, applicable to existing engines and infrastructures, Mitsui said. Mitsui is observing the e-SAF market. SAF is a relatively promising prospect in the renewable energy sector, on the back of the target by the UN's International Civil Aviation Organisation (ICAO) to achieve net-zero emissions in international aviation by 2050, as well as governmental policies bolstering the deployment of SAF, a representative of the firm told Argus . Japan plans to replace 10pc of the jet fuel consumed by domestic airlines with SAF in 2030. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

H2 groups, environmentalists disappointed by IMO deal

14/04/25

H2 groups, environmentalists disappointed by IMO deal

Hamburg, 14 April (Argus) — The International Maritime Organization's (IMO) global greenhouse gas (GHG) pricing mechanism may be insufficient to stimulate short-term uptake of clean hydrogen-based marine fuels and threatens decarbonisation targets, hydrogen industry associations and environmental groups said. Delegates approved a proposed mechanism at the IMO's 83rd Marine Environment Protection Committee (MEPC) meeting on 11 April. The proposal will be put to an adoption vote at the next MEPC in October after which the rules could enter into force in 2027. The IMO said its "net-zero framework is the first in the world to combine mandatory emissions limits and GHG pricing across an entire sector". But the agreement does not go far enough to drive extensive uptake of clean hydrogen and derivatives, such as ammonia and e-methanol, as the mechanism's design will encourage use of LNG and biofuels instead, at least in the short-term, according to industry participants and environmental bodies. "Delegates have agreed a measure that may lock in the use of environmentally destructive biofuels and LNG" instead of providing the incentives necessary "to jump start the transition" to e-fuels based on renewable hydrogen, said the Skies and Seas Hydrogen-fuels Accelerator Coalition's (Sasha) founder Aoife O'Leary. Brussels-based environmental group Transport & Environment (T&E) took a similar stance. While the IMO's agreement "creates a momentum for alternative marine fuels… it is the forest-destroying first generation biofuels that will get the biggest push for the next decade," the group's shipping director Faig Abbasov said. "Without better incentives for sustainable e-fuels from green hydrogen, it is impossible to decarbonise this heavy polluting industry." The criticism is directed primarily at the CO2 prices set under the two-tier system. The tier 2 price of $380/t of CO2 equivalent (CO2e) could encourage a shift away from diesel or other "high-emission fuels", but this would likely be to "relatively affordable biofuels" rather than "significantly cleaner alternatives such as green hydrogen-derived fuels", T&E said. Industry body the Green Hydrogen Organisation (GH2) noted that reducing the penalties to $100/t CO2e price for vessels that meet "base" targets could encourage companies using "LNG and more carbon intensive fuels" to "pay to pollute rather than comply over the next few years". The group criticised the lack of "a universal levy with a meaningful carbon price". It will be key to ensure that all emissions, including methane leakage, are comprehensively accounted for and that "direct and indirect land-use change from biofuels" is factored in, GH2 said. But despite the criticism, GH2 said the agreement "sends an important signal to green fuels producers to go forward with their projects". "The greenest fuels will be able to generate credits… which they can sell," the group said, adding that the IMO will agree "a mechanism to reward zero or near-zero emission ships by March 2027". This could drive an increase in orders for dual-fuel vessels that could eventually transition to hydrogen-based fuels, it said. Off target Some groups, including T&E, the Clean Shipping Coalition and the Global Maritime Forum, argue that the shipping industry will fail to meet emissions reduction targets with the proposed framework. The measures will "at best" provide emissions reductions of 10pc by 2030 and 60pc by 2040, far below the IMO's 2023 commitments to 30pc and 80pc, respectively, T&E said. The failure to send stronger signals for uptake of hydrogen-based fuels puts at risk a target of reaching 5pc fuel use that is zero- or near-zero emission by 2030 and the industry's entire 2050 net-zero goal, the Global Maritime Forum said. Other International shipping organisations, such as the International Chamber of Shipping and the European Community Shipowners Association, voiced support for the agreement although they acknowledged that it is "not perfect". By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Defence spending hike gives H2 an opportunity

08/04/25

Defence spending hike gives H2 an opportunity

Hydrogen could play a role in EU defence considerations, as governments are placing an emphasis on resilience, writes Stefan Krumpelmann Hamburg, 8 April (Argus) — Vows by European leaders to boost defence spending have left climate policy advocates worried that efforts to reduce emissions could fall by the wayside. But the renewed focus on security and resilience could also present fresh opportunities for the struggling clean hydrogen sector. Funding otherwise earmarked for "green" initiatives could now be redirected to the defence sector and the first shifts have already taken place, for instance in Poland . For clean hydrogen, any cuts to public funding could be particularly detrimental, given its continued reliance on large subsidies. But funding for green technologies could follow behind the increased defence spending. In return for waving through a €500bn ($548bn) package for defence and infrastructure, Germany's Green party was instrumental in getting conservative CDU/CSU and social-democratic SPD to include €100bn for climate protection. Some of this is likely to go to the hydrogen sector, government officials have said. In any case, hydrogen and defence industry participants alike point to synergies between their sectors, noting that an increased focus on security could speed up technological progress on hydrogen and bring down costs in the process. Renewable hydrogen production, storage and fuel cell systems could play a key role in bolstering energy independence — and therefore resilience — of military camps, radar stations and other critical infrastructure such as hospitals, according to Christian Trapp, chairman of the board at the German armed forces university's research centre for mobility and renewable energy. In the past, development of such systems was primarily driven by sustainability considerations, Trapp told the Hydrogen and Fuel Cells Public Forum at the Hanover Trade Fair on 3 April. But now "the ministry of defence is asking for resilience and this is a key gamechanger" as it "justifies" higher investments. Defence companies have investigated potential applications for hydrogen and derivatives for some time. Germany's Rheinmetall told Argus in 2023 that synthetic fuels made domestically could help reduce reliance on fuel supply from abroad while allowing for decentralised production that would be "unattackable". Use of hydrogen and derivatives could also offer other benefits. Its proponents point to lower noise and heat profiles of military vehicles running on fuel cells instead of combustion engines, which would make them harder to detect. German fuel cell firm SFC Energy sees that its investments in defence applications are now starting to pay off , the firm's chief executive, Peter Podesser, has said. SFC has developed portable hydrogen and methanol fuel cells for more than 20 years as a more lightweight alternative to batteries that produces less noise and heat. But until recently, it "almost had to hide" military applications "from an ESG [environmental, social and governance] perspective", Podesser said. Larger defence budgets could aid hydrogen in more indirect ways as well. Lead markets have been the talk of the town lately when it comes to reinvigorating Europe's hydrogen efforts . The concept remains vague in many respects, but the more concrete proposals include "green" criteria — or even quotas — for public procurement. This could cover, for instance, green steel procurement by the armed forces. At the Hanover event, the German economy and climate protection ministry's head of industrial policy, Beate Baron, signalled openness to the idea, but said more work is needed on certification of low-emission products. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU publishes CO2 car standard tweak proposal

01/04/25

EU publishes CO2 car standard tweak proposal

Brussels, 1 April (Argus) — The European Commission has published the long-awaited proposal to give automobile manufacturers more flexibility in complying with the bloc's CO2 reduction targets for cars and passenger vehicles in 2025, 2026 and 2027. Those three years would be assessed jointly, rather than annually, averaging out fleet emission performance. EU climate commissioner Wopke Hoekstra said the additional compliance flexibility shows that the commission has "listened" but the EU is still maintaining its zero-emission targets [for new vehicles from 2035]. "Predictability in the sector is crucial for long-term investments," said Hoekstra. The commission urged the European Parliament and EU member states to reach agreement on the targeted amendment "without delay". German centre-right member Jens Gieseke said there is a "broad majority" in parliament to fast-track approval for May. He noted that the car industry faces over €15bn ($16bn) in penalties for non-compliance with the CO2 standards. A member of parliament's largest EPP group, Gieseke also called for the commission to go further towards technological neutrality. "We need different kinds of fuels, e-fuels, biofuels, every fuel which could help to reduce CO2 should be recognized," he added. This second step, withdrawing the phase-out of internal combustion engines (ICE) from 2035 onwards, Gieseke noted, should come in the last quarter of 2025. German Green MEP Michael Bloss disputed the figure of €15bn in potential fines put forward by automotive industry association ACEA. "Even in the worst-case scenario, the total fines for all car manufacturers would not exceed €1bn," said Bloss. "Car manufacturers have had enough time to adjust their production planning. Many have done so," Bloss said, pointing to Automaker Volvo. Under the current 2019 regulation, fines should be imposed on manufacturers for each year in 2025–2029 when they do not reach their specific fleet-wide target CO2 reductions, compared to 2021 values. But manufacturers have the option to form compliance pools with other firms. "European car manufacturers are already talking to Tesla or Chinese manufacturers about so-called pooling, which must be stopped quickly," said EPP climate and environment spokesman Peter Liese. "We want to maintain climate targets, but not make Elon Musk richer through European legislation," said Liese. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU promises flexibility for car CO2 standards: Update

03/03/25

EU promises flexibility for car CO2 standards: Update

Adds reaction quote from E-Mobility in new paragraph 5. Brussels, 3 March (Argus) — European Commission president Ursula von der Leyen today promised "more flexibility" on CO2 targets, balancing "predictability and fairness" for firms that have already introduced low or zero emission vehicles. Von der Leyen said the commission will stick to agreed CO2 emission reduction targets for fleets. But the commission will show "more pragmatism in these difficult times" and technology neutrality. She specifically promised a "focused" amendment to the bloc's CO2 standards regulation this month, to introduce "pragmatism" with respect to possible penalties for not complying with 2025 targets. The EU's CO2 standards for manufacturers lay down an EU-wide fleet greenhouse gas target for light passenger vehicles and vans of 93.6 g/km until 2029. That represents a 15pc reduction compared with a 2021 baseline for cars. This falls to 49.5 g/km for 2030-34, a 55pc reduction, and 0g/km from 2035. "Instead of annual compliance, companies will get three years," von der Leyen said, noting the principle of "banking and borrowing". "The targets stay the same; they have to fulfil the targets. It means more breathing space for industry and more clarity, and without changing the agreed targets," she said. The proposal for flexibility on CO2 standards will "significantly delay" Europe's electric vehicle roll-out over the next two years, industry association E-Mobility Europe secretary-general Chris Heron said. He estimated that half a million fewer electric cars could enter the EU market in 2025. "That uncertainty is bad news for investors in EU charging infrastructure, battery production, and e-mobility overall," Heron said, noting legal and competitive issues from changing the rules midway. The amendment would need to be agreed quickly by the European parliament and a qualified majority of EU member states. The EU biofuels and hydrogen industry last week expressed disappointment at a draft outline of the commission's forthcoming automotive industrial action plan, for not mentioning low and carbon neutral biofuels and hydrogen. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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