South Australia shortlists 7 projects for hydrogen hub

: Hydrogen
21/11/02

The South Australia (SA) state government said it has shortlisted seven hydrogen projects powered by renewable energy for its proposed hydrogen hub at Port Bonython. These could export around 1.5mn t/yr of green hydrogen.

The shortlist follows the state government in May launching an expression of interest to develop land at Port Bonython to create a multi-user export-focused precinct to leverage the state's advantages in renewable energy, fuels and minerals, SA premier Steven Marshall said in a statement.

"Seven shortlisted projects from both Australian and international heavy-hitters are proposing tens of billions of dollars of investment, in all parts of the hydrogen supply chain," said Marshall.

The SA state government is now negotiating with shortlisted parties, aiming to finalise arrangements with partners to be announced in coming months, the premier said.

Around 62pc of SA's electricity came from renewable sources over the past 12 months and the state plans to achieve 100pc of electricity from renewables by 2030. SA also aims to be a net exporter of electricity to other states in eastern Australia with the development of the 800MW EnergyConnect electricity transmission link between SA and New South Wales (NSW).

SA plans to produce 500pc of current grid demand in renewable energy by 2050, which will include power used for producing hydrogen, and exporting power to neighbouring states.

SA is also in the process of legislating its greenhouse gas (GHG) emissions target of a 50pc reduction by 2030 from 2005 levels.

In a separate announcement, Australian energy firm Global Energy Ventures said it plans to develop a hydrogen project on Tiwi Island, 80km north of Darwin, the capital of Australia's Northern Territory (NT). The project will be powered by up to 2,800 MW of renewable energy producing up to 100,000t/yr of green hydrogen for export to the Asia-Pacific region.

A final investment plan (FID) is planned for 2023 with the first hydrogen produced for 2026, Global Energy Ventures said. Last month, the NT government unveiled plans for a hydrogen hub in Darwin.

By Kevin Morrison

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24/11/12

Cop: UK sets ambitious 2035 climate target

London, 12 November (Argus) — The UK government has set a target to cut all greenhouse gas (GHG) emissions by at least 81pc by 2035, from a 1990 baseline, the country's prime minister Keir Starmer said today at the UN Cop 29 climate summit in Baku, Azerbaijan. The target, which will form the basis of the UK's next national climate plan, is in line with recent recommendations from the independent advisory Climate Change Committee . Energy minister Ed Miliband sought the committee's guidance shortly after the Labour government was elected in July. Starmer urged all countries to come forward with new national climate plans — known as nationally determined contributions (NDCs) — at Cop 29. Details of the UK's new NDC are not yet clear, but Starmer said his government is "fully committed" to its pledge of zero-emissions power by 2030. He also repeated his promise for a "government that trod lightly on people's lives". "The UK is stepping up as a climate frontrunner at a time when such leadership is critically needed, co-founder of think-tank E3G Nick Mabey said. "We hope to see detailed implementation plans — ideally with sectoral commitments and a supporting investment roadmap — to lend credibility to its submission." The energy transition "is a huge opportunity", Starmer said, pointing to global appetite for renewables investment. And he noted the "advantage of being a first mover". The country's Labour government, elected in July, has diverged substantially from the previous administration on climate issues. The UK government today announced a "clean industry bonus" — a provisional £27mn ($34.6mn) per GW of offshore wind, to incentivise offshore wind developers to invest in industrial areas, many of which are rooted in the oil and gas industry. This will boost "green jobs" and support sustainable industry, the government said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Slow H2 progress risks shipping, steel net-zero goals

24/11/11

Slow H2 progress risks shipping, steel net-zero goals

London, 11 November (Argus) — Efforts to keep the steel and shipping sectors on track for the Paris Agreement's 1.5°C target and for net-zero emissions by 2050 are being hampered by the clean hydrogen sector's slow progress, industry participants said on a panel hosted by Paris-based intergovernmental group OECD ahead of the UN climate summit Cop 29. Clean hydrogen will be crucial to decarbonise the steel and shipping sectors because initiatives such as direct electrification and increased energy efficiency will be insufficient to reach net-zero emissions, panellists said. But ensuring supply of clean hydrogen and derivatives at scale and within the timeline required to meet climate goals has proved a challenge. The two sectors together represent 10pc of global CO2 emissions and they would require 10mn-15mn t/yr of low-emissions hydrogen by 2030 in order to be on track for net zero by 2050, OECD environment directorate policy analyst Joseph Cordonnie said. Adapting to the deployment of hydrogen or derivatives in both sectors will take time, considering vessels and plants have a long life, so change needs to accelerate to avoid "emissions lock-in", Cordonnie said. The global steel sector would require around 70 commercial-scale green steel plants by early 2030s to "stay as close as possible" to the 1.5°C target, according to Faustine Delasalle, chief executive at Mission Possible Partnership, a private sector initiative aimed at promoting the decarbonisation of hard-to-abate industries. Around 60 green steel projects have been announced, but fewer than 10 have reached final investment decision (FID), Delasalle said. Fewer than 10 projects targeting production of hydrogen-based fuels such as ammonia or e-methanol specifically for bunkering have reached FID, she said. Technology to decarbonise these heavy industries has progressed significantly over the last years, but "there is a lag" between technological advancements and industrial-scale investment and developers are struggling with project economics, Delasalle said. Many projects for production of hydrogen or derivatives have recently been delayed or cancelled. Demand for products throughout the value chain has not moved at the necessary scale, Delasalle said. While there is voluntary demand for 'green' industrial products, overall demand has not reached a level that can unlock greater investment for projects to scale up, she said. Waiting for the market to balance itself will not deliver decarbonisation, according to Delasalle. Even generous policy support for production such as the US' IRA scheme has not been enough for projects to build a strong business case. This shows the need for measures that "enable the green product to be more competitive versus the grey", like carbon pricing, "the removal of fossil fuel subsidies" and instruments that "drive demand for green commodities regardless of the price", such as mandates and carbon intensity thresholds, she said. Subsidies represented less than 5pc of funding for Swedish green steel producer Stegra's project in Sweden, the firm's public affairs director Ola Hansen said. Stegra has seen demand from offtakers who are voluntarily cutting lifecycle emissions, but "what we really need is carbon pricing and to take away the fossil fuel subsidies," Hansen said. "It's hard to compete with unpriced fossil fuel emissions," he said. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: US climate envoy says clean energy trends to stay

24/11/11

Cop: US climate envoy says clean energy trends to stay

Baku, 11 November (Argus) — The upcoming administration of US president-elect Donald Trump cannot reverse investment in clean energy technologies and innovation in the country, US climate advisor John Podesta said today at the UN's Cop 29 climate summit in Azerbaijan. Talking about clean energy — including nuclear energy and the electrification of the automobile sector — Podesta said that trends would not be reversed under a Trump administration, even though the country will be facing new headwinds. Trump's upcoming administration will attempt to reverse US climate policies , including eliminating tax incentives for clean electricity and the related supply chain through the Inflation Reduction Act (IRA), sparking uncertainty about clean energy investment in the country. But Podesta said that Trump will face opposition even from Republican-led districts. Around 57pc of new clean energy jobs created since the IRA are in congressional districts represented by republicans, he said. "Support for clean energy has become bipartisan, many republicans especially governors know all this activity is a good thing for their districts, states and for their economies." A group of 18 republicans this summer said they opposed a "full repeal" of the IRA because of the growth it is delivering to their districts. "It's precisely because the IRA has staying in power,[that] I am confident the US will continue to reduce emissions, benefitting our own country and benefiting the world," he added. "The economics of energy transition have taken over." The White House estimates that more than $265bn in clean energy investment has been announced since the passing of the IRA. The current administration has still work to make sure investment in clean energy continues to flow once the new administration starts, he said. A permitting reform is receiving bipartisan support in the senate, Podesta said, while the government is working on awarding more funds available through the IRA. Around $98bn has been awarded already, which is 88pc of the funds available for the fiscal year. The government is also working against the clock in completing the implementation of the IRA, which has some tax guidance pending regarding tax credits for clean hydrogen investment, among others. Talking about Cop 29, where parties are due to agree on a new finance goal from developed countries to developing countries, Podesta said that the US is "here to work and we are committed to a successful outcome". "We will continue to encourage people to work diligently to come up with a new funding formula", although he noted that the goal needed to be "realistic". Talking about increasing the contributor base for the finance goal — a difficult issue during technical negotiations — he said that economic circumstances have changed since 1992, and that several developing countries including China are already providing climate finance. The long-running issue around contributors partly stems from the list of developed and developing countries used by UN climate body the UNFCCC. It dates back to 1992, when the body was established, and has been a bone of contention for some time for many developed countries, which argue that economic circumstances have changed in that time frame, and that several countries classed as developing — and typically heavy emitters — should now contribute to climate funds. "We think it's time to take account of those contributions through contributions to multilateral development banks and other forms of cooperation... to make sure that developing countries have the financing they need". He said that the US at Cop 29 was also working on outcomes related to energy deployment, including battery storage and power grids. "The outcome document of this Cop will hopefully point the world in the right direction on that," he said. "Donald Trump may put climate action on the back burner, the work to contain climate change is going to continue in the US," he said. By Jacqueline Echevarria Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Air Products quits $4.5bn Texas renewable H2 plant

24/11/08

Air Products quits $4.5bn Texas renewable H2 plant

London, 8 November (Argus) — US-based industrial natural gas firm Air Products has withdrawn from a planned $4.5bn renewable hydrogen joint venture in northern Texas citing the lack of an anchor customer for the plant. Air Product has cancelled any ongoing commitment and engineering for the project and has sold its development rights to its partners, chief executive officer Seifi Ghasemi said on an earnings call. Air Products had previously said it was waiting for US Treasury Department guidance on the 45V renewable hydrogen tax credits to make an investment decision. Ghasemi puts the Texas project costs at $4.5bn, which marks a rise from previous guidance of $4bn, but he did not list this as a factor in the decision to exit. Air Products planned to be the sole offtaker for the project on a 30-year contract when it announced the plan with partner utility company AES in 2022. This would have been a similar model to Air Product's Neom project in Saudi Arabia, where it has responsibility as sole offtaker and will then re-sell to the market. Air Products has more recently chosen not to take more investment decisions on projects unless there is an anchor customer and until it sells 75pc of output from ongoing projects such as Neom, Ghasemi said. This would be closer to the model it has at its established industrial gas plants, where it sells half of the output to an adjacent customer and trades the rest, he said. Some Air Products investors have pressured the company to sign more long-term deals and take less merchant risk on its clean hydrogen projects. Air Products has secured more customers for its Neom project, in addition to an existing deal with France's TotalEnergies, Ghasemi said today. Its other customers prefer not to be named publicly yet, he said. Air Products has also pre-sold 60pc of the output from its Canadian Edmonton CCS-hydrogen project on a long-term take-or-pay contract and is in "active discussion for the remainder of the capacity", Ghasemi said. He said earlier this year that the firm had committed almost all of its capacity at Edmonton. Air Products will focus on projects at Neom, Edmonton, Louisiana and "one or two other projects in Texas," he said, but no other "major projects". By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Coalition collapse worries German hydrogen sector

24/11/08

Coalition collapse worries German hydrogen sector

Hamburg, 8 November (Argus) — Germany's hydrogen industry is concerned that the collapse of the country's coalition government this week could further delay the sector's progress. Germany's ambitious plans for a clean hydrogen economy were already progressing more slowly than many had expected, and the collapse of the governing coalition comes at a time when the hydrogen sector is desperate for more clarity on key legislation. Chancellor Olaf Scholz's Social Democratic Party and the Green Party plan to rule as a minority government for the time being, after the third partner, the pro-business Free Democratic Party, exited the coalition on the back of disputes over how to finance the 2025 budget and how to tackle Germany's economic downturn. Scholz intends to ask for a confidence vote on 15 January, which in turn could lead to elections in March 2025, six months ahead of schedule. This prospect of an early election has raised concerns about progress on key legislation, including on energy policy and more specifically hydrogen. The coalition's end "has come at an inopportune time and is creating considerable uncertainty", German hydrogen industry association DWV said. "Political stagnation is looming" and delayed progress on key policies could "jeopardise the ramp-up of a hydrogen economy and potentially set its start back by months or years," it said. Scholz said he will seek votes on urgent laws before Christmas "but failed to make a clear commitment to key projects for the hydrogen economy", DWV said. The industry body listed several legislative initiatives planned or underway that need addressing. These include the so-called hydrogen acceleration act — which is designed to streamline permitting procedures for electrolysis plants, import terminals, storage facilities and other infrastructure — and the power plant strategy which involves the development of hydrogen-ready gas-fired power plants and for which first tenders are planned for the first half of 2025. The industry is still waiting for a dedicated storage strategy which is long overdue and was most recently promised for "this autumn". And while Germany has until 21 May next year to transpose key rules from the EU's revised Renewable Energy Directive (RED III) into national law, industry participants have called for this to be done as soon as possible to provide certainty, especially around mandates for renewable hydrogen use in industry . DWV also reiterated calls for the implementation of a certification system for renewable hydrogen and derivatives, having previously said that this will be critical to unlock support for producers through greenhouse gas emissions certificates. Turn the page Persistent uncertainty over future budgets raises questions over subsidy mechanisms that are long overdue and which Berlin is counting on to reach its 10GW electrolyser capacity target for 2030. This includes tenders for 3GW of so-called "system-serving electrolysis capacity", intended to provide flexibility in the wider electricity system. These were due to be launched last year and run steadily until 2029 for 500 MW/yr of capacity. The economy and climate protection ministry told Argus in late August that it was planning to consult on the tender framework this autumn, but it has yet to do so. The DWV acknowledged that "the coalition, despite all the criticism, has also done a lot of good for the hydrogen ramp-up". Progress on the planned pipeline network, the carbon-contracts-for-difference scheme and the power plant plans has been made this year. But despite progress in some areas, Germany's 10GW electrolysis capacity is "far out of reach", according to David Hanel, head of public affairs in Germany for French hydrogen project developer Lhyfe. The "current political crisis" offers opportunities for a reset, especially a "reality check" on the effectiveness of support measures that have been drawn up for the sector, including the European hydrogen bank, Hanel said. A change in government following the election is highly likely. Polls show the conservative opposition sister parties CDU and CSU firmly in the lead, although with a projected 30-33pc share of votes they too would need coalition partners. A change in power is unlikely to lead to a major shift in Germany's course on hydrogen. But it could be good news for proponents of "blue" hydrogen made from natural gas with carbon capture and utilisation or storage (CCUS) or "turquoise" gas-based hydrogen made via pyrolysis. In a "discussion paper" on energy published earlier this week, the CDU/CSU called for a "fast, multi-coloured and broad" approach to hydrogen. In order to advance plans, barriers for domestic gas-based hydrogen production with abated emissions have to be removed, the parties said. The incumbent coalition had stressed openness to imports and use of hydrogen from different sources , including gas-based pathways, but limited funding support for domestic production of renewable hydrogen. A change in government could also mean that the recently-approved hydrogen network will be revised. The CDU/CSU has called for extensions to "cover all main economic regions," focusing specifically on the southern states of Baden-Wurttemberg and Bavaria . By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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