Toshiba, PLN eye CCS at Indonesian thermal power plants
Japanese engineering firm Toshiba Energy Systems and Solutions plans to explore installing carbon capture and storage (CCS) equipment at Indonesian state-owned power firm PLN subsidiary's thermal power plants.
This is in line with Indonesia's net zero emission goal by 2060. Toshiba on 22 August said that it signed an initial agreement with PLN subsidiary Nusantara Power (PLN-NP). The target plants include the Paiton No.1 and No.2 coal-fired units that operate with steam turbines and generators supplied by Toshiba.
Toshiba has delivered 32 steam turbines, with a combined capacity of 8,263MW, to thermal and geothermal power plants in Indonesia since 1981. Nine steam turbines totalling 1,845MW are currently in operation at four thermal plants owned by PLN-NP, the company said.
Toshiba aims to minimise energy consumption required for CCS, while optimising generation efficiency of existing power plants.
The deal came after Japan's trade and industry ministry (Meti) and Indonesia's ministry of energy and mineral resources (ESDM) signed an agreement on 21 August to form an institutional co-operation framework to facilitate and enhance collaboration to encourage decarbonisation of the energy sector.
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Brazilian politicians, judges to advance green agenda
Brazilian politicians, judges to advance green agenda
Sao Paulo, 22 August (Argus) — Representatives from Brazil's three branches of government have pledged to work together to advance the country's green agenda by approving legislation, expanding funding and guaranteeing enforcement related to the environment and the energy transition. Representatives from the supreme court (STF) and congress, together with President Luiz Inacio Lula da Silva and members of his cabinet signed an agreement on Wednesday aimed at reinforcing the country's commitment to protecting the environment. On the legislative front, lower house speaker Arthur Lira and senate President Rodrigo Pacheco promised to give priority to legislation that will advance the transition to low-carbon energy. This includes legislation that will create a regulated carbon market, a bill regulating offshore wind projects as well as a proposal that will create blend mandates for advanced biofuels. Pacheco plans to hold a vote for the bill that will create a carbon market in the first half of September, a spokesperson for senator Leila Barros, who is elaborating the text, told Argus . Barros has made significant progress on the new draft of the bill, but is finetuning the final text to address demands from specific sectors of the economy, the spokesperson said. The senate is also finalizing its analysis of the fuels of the future bill, which will create blend mandates for hydro-treated vegetable oil (HVO) and sustainable aviation fuel (SAF) as well as clear the way to increase the mandatory ethanol and biodiesel blends in commercial fuels. Senator Veneziano Vital do Rego presented a draft of the legislation on 20 August and is working to hold a vote in early September on the bill, which passed the lower house in March. Legislation for offshore wind has also made progress in the senate, but a proposal has not yet been presented. A draft of the bill was approved by the lower house last year, but included amendments that would expand subsidies for fossil fuels, potentially raising electricity prices for consumers. As part of the agreement, the executive branch has also promised to make further progress towards guaranteeing financing for energy transition projects. Likewise, the judiciary has agreed to give priority to cases that involve environmental, climate and land ownership. Lula stressed that the agreement among the three branches of the government shows Brazil's willingness to take a leading role to protect that environment as it prepares to host the Cop 30 meeting in Para state in 2025. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Sweden, Zambia Article 6 agreement eyes renewables
Sweden, Zambia Article 6 agreement eyes renewables
Berlin, 21 August (Argus) — Sweden and Zambia have signed an initial agreement on climate co-operation under the Paris climate deal, with a focus on investing in renewable power, the countries said. Zambia's ministry of green economy and environment and the Swedish Energy Agency are now negotiating a bilateral agreement under Article 6.2 of the Paris agreement. This will allow Zambia to generate so-called internationally transferred mitigation outcomes (Itmos), representing emissions reductions, that Sweden may count towards its own emissions cut targets under the UN framework. Most of the carbon credits that Zambia has generated under the UN's Kyoto protocol-era clean development mechanism and in the voluntary carbon market make use of the REDD+ programme, aimed at reducing deforestation and forest degradation and enhancing carbon stocks. Given the acute lack of electricity in Zambia because of a drought in the region — the country is 85pc dependent on hydropower for its generation — the Zambian government has proposed that Article 6.2 investments be directed at the country's power system, such as solar and wind power capacity. And experts from Kenya-based Climate Action Platform–Africa (CAP-A) and the UK's Foreign, Commonwealth and Development Office (FCDO) have suggested that Zambia diversify beyond REDD+ and look at opportunities in sectors such as energy or waste management to maximise its carbon market potential. "The Zambian government has taken huge steps towards addressing the nation's current energy crisis," Zambia's green economy and environment minister Douty Chibamba said at the signing of the agreement in Lusaka yesterday. The Swedish Energy Agency aims for projects that provide "large emissions reductions" while having a positive long-term effect on Zambia's energy system, its head of international climate co-operation Sandra Lindstrom said. Projects must also benefit local communities and contribute to sustainable development, Lindstrom said, reflecting the shift away from the Kyoto protocol, under which issues such as indigenous rights or benefit sharing were largely ignored. CAP-A and the FCDO will launch a programme in September aimed at finalising Zambia's carbon market framework, notably a balanced benefit sharing and distribution system. The Swedish ambassador stressed at the signing of the agreement that Sweden's investments under Article 6.2 will complement existing support from Sweden's development agency in Zambia and the region. The initial agreement is Sweden's third with a project host country. Sweden has also signed a bilateral agreement under Article 6.2 with Ghana . By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indonesia may tighten POME oil export rules: Ministry
Indonesia may tighten POME oil export rules: Ministry
Singapore, 21 August (Argus) — Indonesian exports of palm oil wastes and residues including palm oil mill effluent (Pome) oil may soon be subjected to stricter export regulations, according to a draft document from its trade ministry. The ministry released the draft after a meeting with biofuel feedstock exporters on 20 August. The timeline for a decision on finalising the regulation is still unclear, although some market participants said it could be made by this month. Exports of Pome oil, high acid palm oil residue (Hapor) and empty fruit bunches (EFB) oil under the HS code 2306.60.90 are expected to require export permits, a change from the previous requirement of only export rights. While more details were not disclosed, meeting domestic market obligations (DMO) is usually a prerequisite to get export permits, suppliers said. This means that companies will need to sell a certain amount of cooking oil within Indonesia — or buy export quotas or credits from palm oil refineries around $15-$20/t — before they are able to export these products. This has led to expectations of potentially tightened feedstock exports. Refineries who sell cooking oil volumes to remote areas of Indonesia will also receive higher export quotas. As of January 2023, only crude palm oil (CPO), refined, bleached and deodorised (RBD) palm oil, RBD palm olein and used cooking oil (UCO) were subject to the DMO requirements. The previously-set domestic Highest Retail Price (Harga Eceran Tertinggi or HET) for cooking oil sold to consumers at 14,000 rupiah/l is now Rp15,700/l. This is likely because of higher CPO prices and packaging costs, a Indonesia-based supplier said. But market participants said they were also anticipating this increase previously. The higher HET implies that companies' cost of acquiring export permits in the medium to long term could fall, having sold cooking oil at higher prices domestically, market participants said. DMO for cooking oil Indonesia's Ministry of Trade also issued a regulation on 16 August stating that the DMO scheme for cooking oil will move fully from bulk to packaged palm olein – in 500ml, 1 litre (l), 2l and 5l volumes. This is likely to help maintain stable cooking oil prices and control inflation, as packaged olein is easier to monitor than bulk, a supplier said. The deadline for moving from bulk to packaged volumes is 12 November. Refineries under the DMO must also supply cooking oil volumes domestically of around 250,000 t/month, compared with approximately 300,000 t/month previously. But actual volumes will also depend on factors like how much palm oil wastes and residues exporters want to ship in a particular month too, a supplier said. The draft document did not include updates to long-awaited changes to export duties and levies to POME oil, UCO and other products, market participants said. They were expecting these changes in September or October when the new government is sworn in, although the actual timeline is difficult to determine. Current combined export duties and levies on POME for August is only $10/t, considering a CPO reference price of $820.11/t. UCO is not subject to duties, but have levies of $35/t. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Malaysia’s Petronas achieves first gas at Kasawari
Malaysia’s Petronas achieves first gas at Kasawari
Singapore, 21 August (Argus) — Malaysian state-owned Petronas has started first gas production at the Kasawari field at an initial flow rate of 200mn ft³/d (5.6mn m³/d), the firm announced today. The field is located in Block SK316, approximately 200km off the coast of Sarawak. It contains an estimated 10 trillion ft³ of natural gas resources, with a gas sales rate of 545mn ft/d, according to Petronas. Petronas Carigali, a subsidiary of Petronas, holds a 90pc stake in the Kasawari field and is the operator. Exploration and Production Malaysia Venture (EPMV) holds the remaining 10pc stake. The Kasawari gas field development includes a central processing platform, a flare platform and a wellhead platform, which are all interconnected. Gas from the field is exported to a new riser platform at the E11 production hub through an 81km carbon steel pipeline for further gas delivery to customers in Bintulu, Petronas said. The Kasawari gas field is a crucial feed source for the Petronas LNG complex in Bintulu and in addressing the increasing domestic demand for gas, said Petronas. Carbon capture and storage Petronas is also still looking to develop its carbon capture and storage (CCS) capabilities, including at the Kasawari field, even as it looks to maximise fossil fuel production. The firm on 20 August announced it signed a joint study and development agreement with Abu Dhabi's state-controlled Adnoc and UK decarbonisation firm Storegga, to evaluate the CO2 emission storage capabilities of saline aquifers and construction of CCS facilities in the Penyu basin, offshore peninsular Malaysia. The agreement targets at least 5mn t/yr of CO2 capture and storage capacity by 2030. The scope of the agreement includes a CO2 shipping and logistics study, geophysical and geomechanical modelling, reservoir simulation and containment research while exploring the application of advanced technologies, including artificial intelligence, to enhance storage capacity, Petronas said. Malaysia has a target of net zero emissions by 2050. Petronas is a member of Malaysia's National Energy Transition Roadmap committee, which has identified CCS as one of six energy transition levers to enable the country to be sustainable, low-carbon and resilient. In line with this, Petronas has signed multiple deals with foreign firms to jointly develop CCS projects with Malaysia, including Japanese firms Jera, Mitsui , and Japex . Petronas is also involved in cross-border projects with South Korean firms. Malaysia has a geological abundance of deep saline aquifer reservoirs, which should allow for the development of large-scale, permanent CO2 storage solutions. This latest agreement will significantly accelerate regional deployment of CCS and if successful, will lay the foundations for a regional CCS hub that serves both domestic and international emitters, Petronas added. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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