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Brazil to issue hydrogen regulations in 60 days

  • : Biofuels, Electricity, Emissions, Fertilizers, Hydrogen, Metals, Oil products
  • 21/04/22

Brazil's national energy policy council (CNPE) plans to issue hydrogen regulations by late June as part of a national hydrogen strategy.

The mines and energy ministry, the science and technology ministry and government-controlled energy research company Epe are drafting the regulatory framework to address production, storage, transport and distribution infrastructure and safety.

The hydrogen regulations are part of a broader government initiative – dubbed "Future Fuel" – that aims to encourage the use of low-carbon fuels, including green naphtha, biokerosene and renewable marine fuels. It would replace diesel by creating "green corridors" where heavy vehicles will have guaranteed access to biomethane, LNG or natural gas to fuel trucks.

Because Brazil's electricity generation mix is already 83pc renewable, the country has the potential to become a global low-cost hydrogen supplier, mines and energy minister Bento Albuquerque says.

The new regulations will also address the potential for blue hydrogen and carbon storage. Green hydrogen is derived from renewable energy such as solar and wind farms, while blue hydrogen uses natural gas combined with carbon capture and storage.

The national hydrogen plan will analyze domestic demand potential for hydrogen, including the energy, transport, fertilizers, chemicals and steel industries.

Three preliminary green hydrogen projects have surfaced just over the past month, involving state-controlled utility Eletrobras and Germany's Siemens; Australia's Enegix Energy with the Ceara state government; and Australia's Fortescue Future Industries (FFI) and Brazil's port operator Prumo Logistica.

The government announced the hydrogen plan as a US-sponsored international climate summit gets underway. This week Brasilia also proposed a $1bn/yr international payment to fight Amazon deforestation.

Elsewhere in South America, Chile is advancing hydrogen regulations and funding to support emerging projects as well.


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24/08/06

Estaciones Pemex dominan el mercado en México

Estaciones Pemex dominan el mercado en México

Mexico City, 6 August (Argus) — El mercado minorista de combustible de México está cambiando cada vez más a estaciones de la marca Pemex, impulsado por una combinación de políticas gubernamentales y condiciones comerciales favorables de la empresa estatal. El número de gasolineras bajo la bandera de Pemex aumentó en 3pc a 7,266 en el segundo trimestre, desde 7,080 en el mismo período de 2023, según muestran los datos de la empresa. Pemex acumula 23 meses consecutivos de crecimiento en su red de estaciones. Las estaciones de la marca Pemex representan aproximadamente 53pc del total de 13,600 estaciones en México. "Estos resultados demuestran el éxito de nuestra estrategia comercial, con la imagen de Pemex que transmite orgullo, identidad y lealtad en el mercado nacional", dijo el director ejecutivo Octavio Romero el 26 de julio durante la llamada de resultados del segundo trimestre de la empresa. Pero la creciente cuota de estaciones de Pemex en México se vio impulsada en primer lugar por las políticas energéticas nacionalistas del gobierno, que han favorecido a la empresa estatal en los últimos cinco años. El apoyo gubernamental a Pemex, que incluye inyecciones de capital, reducciones de impuestos sobre regalías y la asunción temporal de reembolsos de deudas, totalizó más de $70,000 millones desde 2019 hasta el segundo trimestre de 2024, según el instituto mexicano para la competitividad (Imco). Además, la comisión reguladora de energía (CRE) ha concedido la mayoría de los permisos para nuevas estaciones a las que venden gasolina y diésel Pemex por encima de otras marcas. La CRE ha emitido 233 permisos para nuevas estaciones este año, y 49 de los últimos 50 permisos publicados en el sitio web del CRE se concedieron a nuevas estaciones que venden combustible Pemex. La oferta comercial de Pemex también ha impulsado a muchas estaciones a cambiar su marca, según fuentes del mercado. La empresa estableció a finales de 2021 una bonificación en efectivo de Ps0.09/l para estaciones de marca Pemex y duplicó el bono a Ps0.20/l en mayo. "En las últimas dos semanas, las solicitudes de renovación de imagen de [Pemex] han aumentado significativamente", dijo Miguel Yasser, director de estrategia comercial de Pemex, el 20 de junio. La bonificación de visibilidad de la marca solo se aplica a las estaciones con la imagen más reciente de Pemex, introducida en agosto de 2018, y no a las estaciones que venden combustible Pemex bajo otras banderas. Además, las nuevas estaciones reciben una bonificación de Ps0.30/l durante el primer año de operaciones. Estos incentivos son cruciales en un negocio con márgenes de ganancia ajustados, dijo un gasolinero a Argus . "La cuota de nuestras estaciones Pemex se ha triplicado en el último año porque es más fácil obtener un permiso de la CRE para una estación Pemex, y otras marcas tienen dificultades para cumplir con los términos comerciales de Pemex en algunas regiones después de que duplicó su bono de visibilidad de marca", dijo a Argus un ejecutivo de una cadena de gasolineras con más de 150 estaciones de marcas privadas y Pemex. El crecimiento de la red de estaciones de Pemex ha llevado a un aumento de la cuota de la empresa en los mercados de gasolina y diésel en los últimos tres años. La cuota de mercado de Pemex en el mercado de la gasolina se situó en 86.4pc al final del segundo trimestre, frente a un mínimo histórico de 73.7pc en 2021, mientras que su cuota en el mercado de diésel se situó en 81.2pc, frente a un mínimo histórico de 63.2pc en 2021. La política energética también ha afectado a la cadena de valor del combustible a otros niveles, alterando directamente el mercado gasolinero de México. Aunque la reforma energética de 2014 sigue en vigor por ley, en la práctica la secretaría de energía (Sener) y los reguladores autónomos como la CRE se han alineado con las políticas energéticas nacionalistas del presidente Andrés Manuel López Obrador, cancelando permisos para las empresas del sector privado a todos los niveles de la cadena de valor del combustible. Sener canceló o dejó caducar decenas de permisos de combustible de 2020-2022, reduciendo el mercado de importación de combustible a cinco empresas. Mientras tanto, la CRE ha detenido proyectos de almacenamiento de combustible del sector privado en México, suspendiendo las operaciones en algunas terminales durante meses y negando múltiples permisos de almacenamiento de combustible desde 2020. Por Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US ethanol exports rise to record in 1H


24/08/06
24/08/06

US ethanol exports rise to record in 1H

Houston, 6 August (Argus) — US ethanol exports climbed to a record high in the first half of the year, driven by strong domestic production and foreign demand. US ethanol exports averaged 125,600 b/d in January-June, up by a third from the same period last year and 2.2pc higher than the previous first-half record set in 2018, according to US Department of Agriculture (USDA) data going back to 2012. Exports would set a full-year record if the pace is maintained through the end of 2024. US ethanol producers like Green Plains and ADM have said they are confident that robust exports will extend through the end of the year. Robust domestic production has fed the rise in US exports, with output averaging 1.03mn b/d through June, the third highest rate through the first six months behind 2018 and 2019, according to EIA data dating to 2010. January-June output would also rank third on an annualized basis. Low prices for corn, the main feedstock for US ethanol, have incentivized higher production by boosting margins. Front month CBOT corn futures this year have averaged 439¢/bushel, down by nearly a third from 2023, as prices near pre-2021 levels when they averaged less than $4/bushel for six consecutive years. Participants are expecting a record or near-record US corn yield this year, pressuring the domestic corn market. Canada and the UK consistently combine for nearly half of US ethanol exports, with Asian markets emerging as key destinations for US ethanol. Asian markets combined for a 19pc share of US exports in the first half, compared with a 10pc share in the same period a year earlier. US exports to Asia-Pacific in the first half more than doubled from the same period last year to around 24,000 b/d as countries in the region raise ethanol fuel blend rates. India is steadily increasing its fuel ethanol blends, with a goal of 20pc by 2025 , helping nearly double first-half receipts of US ethanol to 13,100 b/d. Exports to the UK have also nearly doubled to 16,300 b/d, as the country can take advantage of favorable trade economics into the rest of Europe in addition to meeting demand from its own fuel blending mandates. US ethanol imports remain relatively small, averaging 183 b/d in the first half, up from 19 b/d in the same period last year. Nearly all undenatured ethanol imports for fuel use arrive from Brazil, with the country's sugarcane-based ethanol used as feedstock at LanzaJet's sustainable aviation fuel (SAF) plant in Georgia. US ethanol exports may continue to rise in the coming months and years as the growing SAF market provides new demand pathways for ethanol. By Payne Williams Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Harris selects Minnesota's Walz as running mate


24/08/06
24/08/06

Harris selects Minnesota's Walz as running mate

Washington, 6 August (Argus) — Democratic presidential candidate Kamala Harris has picked Minnesota governor Tim Walz (D) as her running mate, elevating a Midwestern voice who has championed ambitious policies on climate change and clean energy during his two terms as governor. Walz, who was a schoolteacher before serving in the US Congress and then as governor, only recently emerged on the national stage as a favorite of progressives who could take on Republicans. Harris said she chose Walz as her running mate based partly on his "convictions on fighting for middle class families" and his efforts to deliver for "working families like his own." Harris will appear with Walz today at a rally in Philadelphia, Pennsylvania, in the first event the campaign says will be a "five-day barnstorm" to introduce the Democratic ticket to voters in battleground states. The Harris campaign today touted Walz's service in the military and election in a conservative-leaning district as a sign of his broader political appeal. In 2021, Walz made Minnesota the first state in the Midwest to adopt California's tailpipe standards, and last year he signed a law requiring Minnesota utilities to switch entirely to wind, solar and other carbon-free electricity sources by 2040. Walz signed a separate law in June that would expedite the state's permitting process for renewable power projects. The campaign for Republican nominee Donald Trump today said Walz was a "West Coast wannabe" who as governor replicated California's policies on the environment. "From proposing his own carbon-free agenda, to suggesting stricter emission standards for gas-powered cars and embracing policies to allow convicted felons to vote, Walz is obsessed with spreading California's dangerously liberal agenda," Trump campaign press secretary Karoline Leavitt said. Minnesota does not produce any crude or natural gas and has no coal mines. As of 2022, coal-fired power plants represented 27pc of Minneosta's in-state electricity generation, nuclear generated 24pc of electricity and renewable resources supplied 31pc of electricity. Minnesota is the fifth-largest ethanol producer in the US and has a production capacity of 1,400mn USG/yr. Environmentalists applauded Walz's selection as a running mate who has sought ambitious policies related to climate change and clean energy, in addition to signing a law last year providing $2bn for environment, climate and energy. The Harris-Walz ticket "isn't afraid to tackle climate change head-on," Sierra Club executive director Ben Jealous said. Harris' vice presidential selection meant passing over Pennsylvania governor Josh Shapiro (D), who was also being vetted as someone who could help Harris win the battleground state. Democrats hope the selection of Walz will offer a contrast to Republican vice presidential nominee JD Vance, who Walz has criticized as "just weird" for positions such as faulting women for not having children. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Delek idles three biodiesel plants


24/08/06
24/08/06

Delek idles three biodiesel plants

Houston, 6 August (Argus) — US independent refiner Delek is temporarily idling three biodiesel plants in Texas, Arkansas and Mississippi as it explores alternative uses for the sites. The refiner's Crossett, Arkansas, Cleburne, Texas, and New Albany, Mississippi, plants produce a combined 2,600 b/d of biodiesel from feedstocks such as cooking oil, fats, greases and vegetable oils such as soybean and canola oil. The company reported a $22mn impairment in its second quarter earnings released today as it temporarily idles the plants and explores "viable and sustainable alternatives". Delek did not disclose when the facilities were idled, but noted the decision was driven by a "decline in the overall biodiesel market". US biodiesel producers are facing worsening production economics , as evidenced by a deteriorating correlation between the soybean oil-heating oil (BOHO) spread and biomass-based diesel D4 renewable information number (RIN) credits. Although a relatively small amount of production, Delek idling its biodiesel plants follows several refiners pivoting away from prior investments in renewable fuels. Chevron said earlier this year it was closing indefinitely two biodiesel plants in Wisconsin and Iowa due to market conditions. US specialty refiner Vertex plans to pause renewable fuels production at its 88,000 b/d Mobile, Alabama, refinery by the end of the year, returning a converted hydrocracker predominantly making renewable diesel to produce what it says are wider-margin fossil fuel products. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Indian urea stocks slide in July, monsoon rains rise


24/08/06
24/08/06

Indian urea stocks slide in July, monsoon rains rise

Amsterdam, 6 August (Argus) — Indian urea sales rose to 4.65mn t last month and monsoon rains have accelerated, supporting domestic consumption, with inventories pressured lower. Indian domestic urea sales rose to 4.65mn t in July from 4.53mn t in the same month last year, the latest provisional data show. Production was also higher, rising to 2.65mn t from 2.48mn t in July last year. The rise in domestic consumption resulted in a further drop in countrywide stocks, to 8.7mn t at the end of the month. Inventories had stood at around 10mn t in mid July, down from 11mn t at the end of June and 11.3mn t at the end of May. Domestic urea demand is expected to remain supported in August, with monsoon rains accelerating to 533.3mm by 6 August since the start of June, up by 6.6pc on the long-term average. The country's meteorological department forecast last week that rainfall for the remainder of the monsoon season in August-September will be "above normal", or higher than 106pc of the long-term mean. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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