Cop 27: BP considering hydrogen projects in Mauritania

: Hydrogen
22/11/08

BP said today it plans to study the potential for renewable hydrogen production in Mauritania, and signed an agreement to that end with the country's government on the sidelines of the Cop 27 UN climate summit.

The coastline of northwest Africa has emerged as a potential hotspot for production thanks to strong solar and near-constant wind power, with several projects planned in Mauritania and neighbouring Morocco.

Last month BP said large-scale export projects were the final stage of its hydrogen strategy. In June it bought a 40.5pc stake in the $36bn Asian Renewable Energy Hub (AREH) green hydrogen project in Western Australia. It may look to develop similar export projects in countries such as Mauritania, where it has already established a presence since 2017 developing a 2.3mn t/yr LNG facility on the country's maritime border with Senegal.

Two large-scale hydrogen projects are already planned in Mauritania: the 10GW Project Nour developed by Chariot which Total Eren joined in September, and the 30GW Aman project planned by Australia's CWP Global, which is one of BP's partners in AREH.

By Aidan Lea

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/05/02

Exxon sees 45V surviving, needs blue H2 offtake

Houston, 2 May (Argus) — ExxonMobil chief executive officer Darren Woods expects low-carbon hydrogen production incentives to survive a White House review, but he wants more sales commitments before making a final investment decision on a company project in Baytown, Texas. "Our expectation is that things that we need to drive low-carbon hydrogen will probably stay in place," Woods said during the company's first-quarter earnings call Friday. "But we have to see that manifested." Woods has said that the 45V hydrogen production tax credit is "critical" to establishing a market for the zero-emissions fuel that can stand on its own and compete against fossil fuels. The company is developing what it describes as the largest low-carbon hydrogen plant in the world in Baytown, designed to produce 1bn cf/d of hydrogen from natural gas with carbon capture. While the 45Q incentive is available for projects using carbon capture and sequestration to lower emissions, ExxonMobil has repeatedly indicated it is pursuing the more lucrative 45V for the massive hydrogen and ammonia production project planned on the Texas Gulf coast. In addition to certainty about federal incentives, Woods said the company also needs to secure more offtake agreements in order to make a final investment decision. "I'd say right now that's probably the long pole in the tent with respect to driving this," Woods said. "When those two things come together and we're confident that we have what we need to generate the returns that's going to be required to justify the investments, we'll move forward. Hopefully, that's later this year." Most of the project's production would be used to decarbonize operations at Exxon's 564,500 b/d Baytown refinery, while the remainder is being targeted for exports in the form of ammonia. In January, the company signed an agreement to sell ammonia to European trading firm Trammo. Japanese power producer Jera has said it is considering 500,000 t/yr of ammonia offtake as part of its plans to take an equity stake in the project. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

South Australia closes Hydrogen Power SA office

25/05/02

South Australia closes Hydrogen Power SA office

Sydney, 2 May (Argus) — The state government of South Australia has rolled its Office of Hydrogen Power SA (OHPSA) into the Department of Energy and Mining (DEM), after scrapping plans for a 250MW electrolyser and 200MW hydrogen-fired power station. The OHPSA has been absorbed into the other state department, a spokesperson for SA energy minister Tom Koutsantonis said on 2 May. This comes after the state cut the A$593mn ($381mn) it had promised for its Hydrogen Jobs Plan in early 2025. The funds were reallocated to subsidise the 1.2mn t/yr Whyalla steelworks, which entered administration on 19 February . The associated Office of Northern Water Delivery, which was intended to support the green hydrogen sector in the state's upper Spencer Gulf region with new water pipeline supply, has also been incorporated within the DEM, Koutsantonis said on 1 May. SA's other major hydrogen hub planned at nearby Port Bonython was also overseen by the OHPSA. Development agreements with five companies have been signed for Port Bonython, including with London-based energy company Zero Petroleum for an e-SAF plant . SA is aiming to transition the ageing Whyalla steelworks to develop low emissions iron and steel products, but administrator KordaMentha is yet to finalise a buyer for Whyalla's controlling company OneSteel, which was formerly owned by UK-based GFG Alliance. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's Coalition eyes power, resource funding cuts

25/05/02

Australia's Coalition eyes power, resource funding cuts

Sydney, 2 May (Argus) — Australia's federal Coalition opposition has announced it will cut key energy rebates and resource sector subsidies, if elected on 3 May, to reduce forecast future budget deficits. The Peter Dutton-led opposition will cut programs, including the Labor government's A$20bn ($12.8bn) Rewiring the Nation transmission plan, and the A$15bn National Reconstruction Fund aimed at underwriting green manufacturing using domestic minerals. It will also unwind electric vehicle tax concessions to save A$3.2bn, and cancel planned production tax credits for critical minerals processing and green hydrogen estimated to cost A$14.7bn. Combined savings measures will improve the budget's position by A$13.9bn over the four years to 2028-29, the Coalition said on 1 May, cutting debt by A$40bn during the same timeframe. The announcement comes as opinion polls show Australia's next federal government is likely to force one of the two major parties into minority, after a campaign where cost-of-living relief promises have trumped economic reform policy. The centre-left Labor party is more likely than the conservative Coalition to form government at the 3 May poll. It holds a thin majority of just three seats in parliament's main chamber, the House of Representatives, meaning a swing against it would force it to deal with minor parties such as the Greens and independent groupings. Promising a stable government, as Australia emerged from Covid-19, Labor had benefited from a resources boom as Russia's invasion of Ukraine led LNG and coal receipts to skyrocket and China's emergence from lockdowns revitalised its demand for iron ore, which jointly form the nation's main commodity exports. But as markets adjust to a period of protectionist trade policy and predictions of a slowdown in global growth abound, economists have criticised the major parties' reluctance to embrace major reform on areas such as taxation, while continuing to spend at elevated levels post-pandemic. Australia's resource and energy commodity exports are forecast to fall to A$387bn in the fiscal year to 30 June 2025 from A$415bn in 2023–24. The Office of the Chief Economist is predicting further falls over the next five years, reaching A$343bn in 2029-30, lowering expected government revenue from company tax and royalties. Gas The Coalition has pledged a domestic reservation scheme for the east coast, forcing 50-100PJ (1.34bn-2.68bn m³/yr) into the grid by penalising spot LNG cargoes. Australia's upstream lobby has opposed this, but rapidly declining reserves offshore Victoria state mean gas may need to be imported to the nation's south, depending on the success of electrification efforts and an uncertain timeline for coal-fired power retirements. Labor has resisted such further gas interventions , but it is unclear how it will reverse a trend of rising gas prices and diminishing domestic supply, despite releasing a future gas plan last year. The party is promising 82pc renewables nationally by 2030, meaning it will have to nearly double the 2025 year-to-date figure of 42pc. This could require 15GW of gas-fired capacity by 2050 to firm the grid. On environmental policy, narrowing polls mean Labor's likely partners in government could be the anti-fossil fuel Greens and climate-focused independents — just some of the present crossbench of 16 out of a parliament of 151. The crossbench may drive a climate trigger requirement in any changes to environmental assessments, which could rule out new or brownfield coal and gas projects. Coal has been conspicuously absent from policy debates, but Labor has criticised the Coalition's nuclear energy policy as expensive and unproven, while the Coalition has said Labor's renewables-led grid would be unstable and costly because of new transmission requirements. The impact of the US tariff shock that dominated opening days of the month-long election campaign remains unclear. Unlike Canada, Australia is yet to be directly targeted by US president Trump's rhetoric on trade balances and barriers. But the global unease that has set in could assist Labor's prime minister Anthony Albanese, as he presents an image of continuity in an uncertain world economy. Australia's main exposure to Trump tariffs is via China, its largest trading partner and destination for about 35pc of exports, including metal concentrates, ores, coal and LNG. A downturn in the world's largest manufacturer would spell difficult times ahead for Australia, as it grapples with balancing its budget in a normalising commodity market. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil Aneel rejects grid access for green H2 projects

25/04/30

Brazil Aneel rejects grid access for green H2 projects

Paris, 30 April (Argus) — Brazil's electricity regulation agency Aneel has rejected requests for electricity grid connections filed by two renewable hydrogen projects in the northeast of the country — but the decision can be reverted, according to one of the companies. Spanish project developer Solatio, which is planning a renewable ammonia project in the state of Piaui, had its request for a grid connection rejected by Aneel in a resolution published last week. In March, Solatio received approval from Brazil's industry minister to build a 3GW electrolyser facility at the Parnaiba Export Processing Zone, with operations expected to start in early 2029. The firm had previously said it aims to achieve over 11GW of electrolyser capacity in Piaui in the long run. Aneel's decision to reject access to the grid was based on recommendations made by Brazil's grid operator ONS, which found the grid connection request to not be feasible as it "could result in overload and risks of voltage collapse". In the technical note, Aneel said that this decision "does not constitute a sanction or opposition to the investment itself". Instead it is a reflection of the "current technical limitations" of the power system. The regulator expects that "in the near future, structural works capable of safely serving large loads in the northeast will be proposed and granted". Brazil's energy ministry has already requested energy planning body EPE an expansion of 4GW of capacity in the northeast grid to accommodate demand from renewable hydrogen projects in the coming years. Solatio has already submitted a "new technical solution" that was designed with support of the Piaui government and state investment promotion agency Invest Piaui and that it could be approved soon, the developer told Argus . Earlier this month, renewables firm Casa dos Ventos also had a grid connection request rejected for its 900,000 t/yr renewable ammonia project planned at the Pecem port complex, in Brazil's Ceara state. Output from the Iracema project could supply TotalEnergies , which is a shareholder in Casa dos Ventos. Casa dos Ventos' request included a grid link to power a data centre project, which was refused by Aneel too. Aneel has asked ONS to provide "the set of technical information" for its recommendation and increase transparency on its assessments. Casa dos Ventos was not immediately available to comment. Hydrogen industry participants in Brazil have grown increasingly concerned about power grid bottlenecks. Even though the government has approved plans to expand grid capacity across the country, the sector worries that this could come too late for projects that hope to be early beneficiaries of Brazil's tax credit scheme unless the procedures are sped up. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada H2 sees opening as political chaos engulfs US

25/04/25

Canada H2 sees opening as political chaos engulfs US

Houston, 25 April (Argus) — Canada's hydrogen sector sees an opportunity to attract global customers as the US' bellicose stance toward its northern neighbor unites Canadians behind strengthening its energy capacity and as US political turmoil sends countries looking for other trading partners. "The mayhem south of the border has created a real national interest in exports," Trigon Pacific Terminals chief executive Robert Booker said this week at the Canadian Hydrogen Convention in Edmonton, Alberta. Trigon is building a berth at the port in Prince Rupert, British Columbia, to handle low-carbon hydrogen converted to ammonia. "The choice, quite frankly, is become the 51st state or export," Booker said. "We should export, and there's broad understanding that that's good for Canada." Canadian energy exports from Alberta have largely gone south to the US. Ambitions to tap global markets have been stymied in years past by community and federal opposition to building rail and pipeline infrastructure that would connect the landlocked province to the Pacific coast. Multiple large-scale hydrogen proposals in western Canada were quietly shelved in the past year because of a lack of infrastructure, among other challenges, and Canadian companies were shut out of recent Asian auctions to buy hydrogen because of similar restraints. But Trump's return to the White House has changed Canadians' views on export infrastructure. Both candidates in the upcoming 28 April general election, including Liberal Prime Minister Mark Carney who served as UN Special Envoy for Climate Action, have vowed to build out pipelines , rail corridors and other infrastructure — including electricity grids — to diversify energy exports away from the US. "We've never been this united in the country," said Julie Lemieux, chief executive officer of Triple Point Resources, which is developing a salt dome in Newfoundland for hydrogen storage. "That's the positive of the chaos. We've been notoriously slow to approve these projects and invest in infrastructure. Whoever wins next week, they've all committed to investing in infrastructure." Panelists speaking in Edmonton expressed relief that Canada didn't follow the US example of putting tariffs on China, whose technology and components will be instrumental to containing costs while building Canadian infrastructure. "For better or worse, whatever your opinion, the build out of new infrastructure today is really dependent on China, especially when it comes to green infrastructure, where there's already an embedded green premium," said Matthew Borys, vice president of corporate development at EverWind Fuels. "Keeping the cost down is super important to getting these things built out." The Trump administration's preference for fossil fuel extraction over clean energy and its expansionist designs on the Panama Canal are also seen as opportunities for Canadian developers to attract Asian customers who could avoid the canal by exporting from British Columbia terminals, said James Vultaggio, vice president of Atco EnPower. "The administration to the south is focused more on fossil fuel production and reducing environmental regulations," Vultaggio said. "If they want to cede their seat as a clean energy leader, then Canada has an opportunity to fill that seat, and we should take it." Trump has been outspoken in his preference for fossil fuel extraction and has paused all federal clean energy disbursements related to the Inflation Reduction Act, which has raised doubts about whether US hydrogen hubs can survive as they were initially conceived during the administration of former president Joe Biden. Clean energy incentives such as the 45V hydrogen production tax credit have also come under scrutiny as the Trump administration seeks to shrink government spending. The uncertainty around clean energy incentives in the US may well send American investment north, said Denis Caron, chief executive of the Belledune Port Authority in eastern Canada's New Brunswick province, which is positioning itself as a green energy hub targeting European markets. Caron said an American company working with the port of Belledune remains bullish on its prospects there and could serve as a model to attract even more American investment if the US continues to claw back support for clean energy. "We see an opportunity to attract American investment to Canada and make those types of investments," Caron said. "Canada has a golden opportunity to fulfill the requirement of supplying clean and green energy products globally." By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more