Uniper targets green hydrogen production in UK

Spanish Market: Fertilizers, Hydrogen
16/09/21

German energy firm Uniper and consortium partners have secured funding from the UK government to produce hydrogen at the port of Immingham by 2025.

Uniper won the funding from the Clean Maritime Demonstration Competition (CMDC) along with Associated British Ports, energy technology company Siemens Energy, and the trading arm of Toyota Group, Toyota Tsusho.

Project Mayflower is a 20MW green hydrogen production facility. Hydrogen from the site will be used to replace the use of fossil fuels at the port or be used in producing hydrogen-based marine fuels like ammonia.

Hydrogen-based fuels have been backed by the World Bank and the IEA as promising marine fuels to decarbonise shipping.

Ammonia has a higher energy density than hydrogen and is easier to use aboard vessels, but hydrogen is the preferred fuel for fuel cell technology on ships.

The companies will now undertake a full feasibility study, reviewing the technical and economic requirements for the project including the conversion of existing infrastructure for hydrogen generation and storage.

Uniper will lead the feasibility study, with engineering designs expected to commence in 2022, and potential financial investment decisions taking place in 2023.

The electrolyser will be developed by Siemens Energy and is probably going to be a polymer electrolyte membrane (PEM). PEM is a newer technology and offers more flexibility than older alkaline electrolysers, but is more expensive.

The facility could source renewable electricity nearby from Uniper's Killingholme power station, Uniper said. Toyota Tsusho will assess how to upgrade port infrastructure for hydrogen.

The port of Immingham is the biggest in the UK by tonnage and a hub for road, rail and sea transport, making it a good location for the hydrogen facility.

The CMDC is part of the UK government's transport decarbonisation strategy. The competition will contribute £20mn ($27.55mn) in investment from the government to reduce emissions in the maritime sector.

Uniper and the Port of Rotterdam are advancing their 100MW green hydrogen production facility at the Maasvlakte site in Rotterdam.

By Nana Kutin

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23/12/24

Viewpoint: Tight US phosphate supply may ease

Houston, 23 December (Argus) — US phosphate buyers expect tight supply to ease next year after a lackluster fall application season left bins fuller, while unfavorable affordability will likely curtail spring demand. Tight P2O5 supply concerns driven by supply disruptions were of frequent concern among market participants earlier this year when DAP prices were roughly $80-100/st higher than price levels at the start of this December and MAP prices were at least $20/st higher. In May, a brush fire at major US phosphate producer Mosaic's Riverview facility in Florida caused a decrease in output. Market fundamentals tightened further throughout the summer and into early fall because of several hurricanes that made landfall in Louisiana and Florida, which reduced production from Mosaic and producer Nutrien's facilities. Higher phosphate values, lower crop prices and the resulting deterioration in affordability in the last six months of 2024 compared to 2023 deterred farmer buying interest. Some US buyers bought more triple superphosphate (TSP) throughout the summer as it became more economically appealing for the fall despite its lower nutrient content relative to MAP or DAP. The overall disinterest from farmers to use phosphate products this fall left higher-than-expected inventories across the Corn Belt that will carry over into next year and likely alleviate supply concerns along the Mississippi River for this spring. The US for the 2024/25 fertilizer year so far has imported less DAP and MAP compared with previous years, likely a result of poor affordability and farmer disinterest. Roughly 762,000 metric tonnes (t) of combined DAP and MAP were imported into the US from July through October, down from 34pc for the same period during the 2023/24 fertilizer year and 3pc lower than the five-year-average, according to US Census Bureau data. The absence of Moroccan producer OCP's phosphate products will continue to tighten US market fundamentals for the 2024/25 fertilizer year. The US Department of Commerce recently raised the phosphate import duty for OCP to 16.8pc from a preliminary rate of 14.2pc for calendar year 2022 and forward if it goes unchallenged. But most domestic buyers have been able to source product from elsewhere, like Jordan, Australia and Saudi Arabia. The US market also imported nearly 290,000t of TSP from July through October. That was 30pc higher than a year earlier and 70pc higher than the five-year-average, reflecting its recent appeal as a more affordable product. Affordability remains a headwind for demand in the spring as well. Based on the ratio between select phosphate barge prices and corn futures, farmer purchasing power for DAP and MAP has weakened throughout 2024 compared with 2023. This forces farmers to sell more of their crops to afford a ton of phosphate fertilizer. Market participants expect spring demand in 2025 to be lower than the robust demand seen last spring and for the market to be well supplied as a result. "Unless a big run on phosphate happens [this spring], we are looking at more supply than people know what to do with," one seller relayed. By Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Viewpoint: Brazil may face road bottleneck in 1Q

23/12/24

Viewpoint: Brazil may face road bottleneck in 1Q

Sao Paulo, 23 December (Argus) — The Brazilian soybean harvest and fertilizer deliveries for the country's 2024-25 second corn crop will likely drive first-quarter grain and fertilizer road freight rates higher. Grain freight rates have been unusually low in 2024 because lower international soybean prices discouraged producers from doing business in most months. But market participants expect greater demand for transportation services in export corridors in 2025, as an expected record 2024-25 harvest combines with a US dollar that has strengthening against the Brazilian real, driving export demand. Brazil will produce 166.2mn metric tonnes (t) of soybeans in the 2024-25 cycle, an increase of almost 13pc from the previous season, according to national supply company Conab's third official estimate for the cycle. The 2024-25 soybean harvest in Mato Grosso state — Brazil's largest producer — will total 44mn t, also 13pc above 2023-24 production, according to the state's institute of agricultural economics Imea. Mato Grosso's soybean planting pace for 2024-25 has fluctuated significantly over the growing season, initially advancing slowly because of dry weather, and then speeding up once rains returned. Planting was complete on only 25pc of the almost 12.7mn hectares (ha) expected for the cycle by 18 October, less than the 60pc reached at the same time in 2023 for the 2023-24 cycle. But planting increased by 68.6 percentage points in the following three weeks, totaling 93.7pc by 8 November. As a result, more than half of the soybean planted area in Mato Grosso was carried out in the same three week period. That raises concerns among market participants about high competition for export transportation and available vehicles when all those crops become ready for harvest at the same time, resulting in a logistical bottleneck. Market participants expect lower freight rates for exports during the 2024-25 second corn harvest, set to take place in the second half of 2025. Demand from the Brazilian domestic market will remain at a consistently high level, especially from ethanol units, whose demand for corn was high in 2024, as prices carried a premium to the export market, and also contributed to lower export volumes. This should lead to lower grain freight rates during the second half of 2025, with a significant portion of grain destined to meet the Brazilian industry's needs. Corn ethanol production in Brazil is expected to total 7.2bn liters (124,865 b/d) in the 2024-25 cycle, a 22pc increase from 5.9bn l in the previous cycle, according to Conab. The company projects that 1t of corn can produce around 400l of ethanol, which means that approximately 18mn t of corn will be consumed by the ethanol industry. Brazil is expected to produce around 86.2mn t of animal feed in 2024, 2.3pc more than it did in 2023, according to the sector's national union Sindiracoes. This should stimulate demand for about 55mn t of corn for all animal feed production expected this year. Animal feed production is expected to grow further in 2025 to 87.8mn t. Ferts freight rates may also increase Fertilizer transportation may face logistical bottlenecks to move inputs from ports to crops in early 2025 because of the slow pace of fertilizer purchases, especially nitrogen, for the 2024-25 second corn harvest. With the purchase window coming to a close by the end of December, market participants estimate that these nutrients have to arrive at Brazilian ports by early January, so that they can be transported in time for application during the grain harvest. That may also increase competition for vehicles in the first quarter of 2025, especially in January, when the supply of trucks is reduced following end-of-year festivities. Under these circumstances, higher fertilizer freight rates and higher costs for road logistics are expected. By João Petrini Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Viewpoint: EU at crossroad on H2 rules, competitiveness

20/12/24

Viewpoint: EU at crossroad on H2 rules, competitiveness

London, 20 December (Argus) — The new team of EU commissioners will enter 2025 bent on reversing the bloc's economic stagnation and the flight of industry to cheaper parts of the globe, which have been salient themes in 2024. Hydrogen industry participants will keenly monitor Brussels' choice of interventions, which promise to restart the sector's engine, but must avoid undermining faith in rules. Pledges from re-elected president Ursula von der Leyen to tackle overcomplexity and "structurally high energy prices" both concern hydrogen, and her notion of a pivotal moment for the EU rings true for the hydrogen market because of its connection to industry and because stubborn costs and underwhelming growth in 2024 undermined confidence. Frequent vows for urgency, simplicity and speed have worn thin, and the European Commission's latest reformist push could flatter to deceive. But multiple warning shots fired last year — including from the European Court of Auditors and respected former Italian prime minister and president of the European Central Bank Mario Draghi — pile on pressure to tweak hydrogen policy in 2025. The auditors' report urged a "reality check" and strategy review, cautioning Europe could spectacularly miss its targets, while Draghi stressed cost-efficient decarbonisation to protect European industry — a view shared by member states and energy-intensive companies. Von der Leyen's "Clean Industrial Deal", promised inside 100 days of her new term, could set the tone. But some, like chemicals firm BASF, have already voted with their feet by relocating jobs outside Europe. For hydrogen, the commission's easiest reform might be setting realistic 2030 targets to replace the 20mn t/yr renewable hydrogen supply, since industry deems it impossible and the commission's own notes predict a 3mn-6mn t/yr market. But this is hardly the most pressing change and would not help morale. A more radical move would be to somehow relax the renewable hydrogen definition, which many market participants consider overly burdensome. The bloc's biggest economy, Germany, put its weight behind changes in September, saying "reality has now shown these requirements were still too high". Berlin's volte-face could hand Brussels an easier climb down. But reopening that can of worms would dent the investment climate and distract from the low carbon hydrogen rules coming in 2025. All this makes radical change risky, but postponing certain aspects might be slightly more palatable. Brussels must also decide to maintain or soften its 2030 mandates for renewable hydrogen. Several countries and companies want openness to hydrogen from other low-carbon production pathways, which are backed in the US, Canada, the UK and others. Some have more fundamentally urged freedom to find the cheapest route towards cutting CO2. The first interpretation of the industry mandates from the Netherlands highlights the difficulty balancing mandates with fair competition versus competitors inside and outside the bloc. But loosening rules would frustrate first movers that took pains to comply. Moreover, some firms champion the EU's forte of creating demand via rules over subsidies that cannot last forever nor compete with the US. "Don't blink, because people will invest money against 2030 mandates," Spanish integrated Moeve's director and chief executive Maarten Wetselaar urged Brussels recently. EU policymakers accept they must cut hydrogen costs and are weighing options with member states. "The market has changed, and we are probably more technology neutral and more colour friendly than we used to be... this is realism," commission deputy director general for energy Mechthild Worsdorfer said in November. But Worsdorfer opposed "changing anything right now" after the "intense" debates to settle definitions. Commission and members will "find the right balance", Worsdorfer said, but hydrogen participants need clarity sooner rather than later. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US Congress passes waterways bill

19/12/24

US Congress passes waterways bill

Houston, 19 December (Argus) — The US Senate has passed a bipartisan waterways infrastructure bill, providing a framework for further investment in the country's waterways system. The waterways bill, also known as the Water Resources and Development Act (WRDA), was approved by the Senate in a 97-1 vote on 18 December after clearing the US House of Representatives on 10 December. The WRDA's next stop is the desk of President Joe Biden, who is expected to sign the bill. The WRDA has been passed every two years, authorizing the US Army Corps of Engineers (Corps) to undertake waterways infrastructure and navigation projects. Funding for individual projects must still be approved by Congress. Several agriculture-based groups voiced their support for the bill, saying it will improve transit for agricultural products on US waterways. The bill also shifts the funding of waterways projects to 75pc from the federal government and 25pc from the Inland Waterways Trust Fund instead of the previous 65-35pc split. "Increasing the general fund portion of the cost-share structure will promote much needed investment for inland navigation projects, as well as provide confidence to the industry that much needed maintenance and modernization of our inland waterway system will happen," Fertilizer Institute president Corey Rosenbusch said. The bill includes a provision to assist with the damaged Wilson Lock along the Tennessee River in Alabama. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

USDA awards more funding to increase fertilizer output

19/12/24

USDA awards more funding to increase fertilizer output

Houston, 19 December (Argus) — The US Department of Agriculture (USDA) awarded over $100mn this week across nine states to increase domestic fertilizer production as the effort to make farmer affordability more favorable continues. About $116mn will be invested through the USDA's Fertilizer Production Expansion Program (FPEP) to help eight facilities expand output in California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma and Wisconsin. Recipients include the Michigan Potash Company, where the construction of a new facility should yield 400,000 metric tonnes (t) annually of high-grade potash, and Farmers Cooperative Association, where funding will expand its existing dry fertilizer facility with additional storage and processing capacity. "When we invest in domestic supply chains, we drive down input costs and increase options for farmers," USDA secretary Tom Vilsack said. Through the FPEP, the USDA has invested $517mn in 76 fertilizer production facilities across 34 states and Puerto Rico. President Joe Biden's administration committed up to $900mn in the program through the Commodity Credit Corporation, which is expected to support long-term investments by strengthening supply chains. Higher US fertilizer prices throughout this year deterred fall demand as lower crop prices forced farmers to sell more of a crop to afford nutrients. The last USDA FPEP funding announcement was in August , when $35mn was granted to boost seven domestic production projects. By Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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