Australia’s Origin to exit Hunter Valley Hydrogen Hub

: Emissions, Fertilizers, Hydrogen
24/10/03

Australian utility and upstream firm Origin Energy has decided not to proceed with its planned hydrogen development project, the Hunter Valley Hydrogen Hub (HVHH), in Australia's New South Wales.

The decision to withdraw from the proposed 55MW HVHH and halt all hydrogen opportunities was made because of continuing uncertainty about the pace and timing of hydrogen market development, Origin said.

The firm said the capital-intensive project, intended to progressively replace gas as a feedstock in a nearby ammonia manufacturing plant, carried substantial risks.

Origin Energy had an initial agreement with Australian chemicals and explosives company Orica to take 80pc of the green hydrogen produced from the hub for Orica's 360,000 t/yr ammonia facility on Kooragang Island, near the city of Newcastle. Origin Energy and Orica in 2022 said they will study plans to develop the HHVH in Hunter Valley region of NSW, which is Australia's largest thermal coal-producing area.

"It has become clear that the hydrogen market is developing more slowly than anticipated, and there remain risks and both input cost and technology advancements to overcome. The combination of these factors mean we are unable to see a current pathway to take a final investment decision on the project," said chief executive Frank Calabria on 3 October.

Origin had planned to make a final investment decision on the project by late 2024.

The hub, which was estimated to cost A$207.6mn ($143mn), had been allocated A$115mn in state and federal funding and was shortlisted for production credits under Canberra's Hydrogen Headstart programme.

In July, Origin described the pace of development in the hydrogen industry as "slower than it had anticipated 12 months ago", said. The company expressed hopes that improved electrolysis efficiency would reduce the rising costs of production.

The decision is a significant setback for Australia's green hydrogen ambitions, following the July decision by Australian miner and energy company Fortescue to postpone its target of 15mn t/yr green hydrogen output by 2030.

By Tom Major

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25/03/28

India approves P and K subsidy for kharif 2025

London, 28 March (Argus) — The Indian government has approved the nutrient-based subsidy for phosphates and potash fertilizers for the kharif season, which runs from April until September. It has approved a total budget of 372.16bn rupees ($4.35bn) for the kharif season, which is 130bn rupees higher than the subsidy for rabi 2024-25 and around 128bn rupees higher than the allocation for kharif last year . The government said that the increased subsidy reflects the recent trends in international prices of fertilizers and inputs. The new rates are largely in line with the proposal made by the Inter-Ministerial Committee (IMC) in February, although the rate for DAP is slightly lower than the initial proposals as are the rates for the NPK grades, which moved according to the hike in the rate for P2O5. The subsidy for MOP will remain at Rs2.38/kg, unchanged on the level for the rabi season as proposed in September. This will give a per tonne subsidy rate for MOP of Rs1,428. The subsidy for phosphate will rise by 42pc from Rs30.80/kg for the rabi season to Rs43.60/kg. The subsidy for nitrogen will remain at Rs43.02/kg. This will give a per tonne subsidy rate for DAP of Rs27,799, a rise of Rs5,888/t from the base subsidy for rabi, slightly lower than the expected rise of around Rs6,000/t. The government will probably extend the Rs3,500/t special additional subsidy for DAP into kharif, bringing the total subsidy for DAP up to Rs31,299/t. The maximum retail price for DAP will remain at Rs27,000/t. At current market prices, DAP importers' margins will remain negative. The government will probably continue to compensate importers for losses on DAP, but there is no indication that Indian DAP producers will also receive compensation for losses. The rates for NPK grades have moved up according to the hike in the rate for P2O5. The new subsidies are as follows for the following key import grades when compared with the rates for rabi: 10-26-26 - Rs16,257/t, up by 26pc 20-20-0+13 – Rs17,663/t, up by 18pc 12-32-16 – Rs19,495/t, up by 27pc 15-15-15+9S – Rs13,585/t, up by 19pc A total of 28 fertilizer grades are included in the scheme. By Julia Campbell and Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK EAC to explore airport expansion, net zero conflict

25/03/28

UK EAC to explore airport expansion, net zero conflict

London, 28 March (Argus) — UK parliament's cross-party environmental audit committee (EAC) has begun an inquiry into whether the country's airport capacity expansion could be achieved in line with its climate and environment targets. "The aviation sector is a major contributor to the UK's carbon emissions, and on the face of it, any expansion in the sector will make net zero even more elusive," EAC chair Toby Perkins said. Any expansions must meet strict climate and environment commitments, the UK government has said. The government in January expressed support for a third runway at London's Heathrow airport — the country's largest. UK transport minister Heidi Alexander said in February that she was "minded to approve" an expansion at London's Gatwick airport, ahead of a final decision in October. The expansion would involve Gatwick making its northern runway operational. It is currently only used as a back-up option. The government is also "contemplating decisions on airport expansion projects at London Luton… and on the reopening of Doncaster Sheffield," Perkins said. "It is possible — but very difficult — for the airport expansion programme to be consistent with environmental goals," Perkins said. "We look forward to exploring how the government believes this can be achieved." The UK has a legally-binding target of net zero emissions by 2050. Its carbon budgets — a cap on emissions over a certain period — are also legally binding. The government must this year set levels for the UK's seventh carbon budget , which will cover the period 2038-42. The committee has invited written submissions on the possible airport expansions and net zero, with a deadline of 24 April. It will report in the autumn. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US H2 projects stall, incentives fall short: Technip

25/03/28

US H2 projects stall, incentives fall short: Technip

London, 28 March (Argus) — Many US hydrogen project developers have paused or cancelled plans after finding costs were too high and government incentives were insufficient, even before President Donald Trump's return to the White House added uncertainty, Paris-listed contractor Technip Energies has said. Developers rushed to hire contractors for project studies in 2022-23 in a wave of optimism after the US announced tax credits for hydrogen production , but many projects were shelved or suspended between the end of 2023 and mid-2024. This came as companies realised the true cost of many items not limited to CO2 capture, hydrogen storage, and hydrogen liquefaction, Technip Energies' director Randy Kessler said. Multiple developers hired Technip for feasibility studies and engineering designs so it witnessed the drop-off in project plans first hand, Kessler said. Renewable hydrogen projects faced the most challenges, but gas-based projects with carbon capture and storage (CCS) "did not fare too well either", Kessler said. "Nearly all" renewable hydrogen projects were suspended when true capital and operating costs became known, especially compared with conventional 'grey' hydrogen, Kessler said. "Economics generally prevail in the long run, and at 5-8 times the cost of grey H2 production, most big players and project developers found out the incentives did not cover the gap," he said. Most of Technip Energies' clients pursuing CCS-enabled projects eventually asked for estimates for conventional grey hydrogen plants, with "pre-investment" to add CO2 capture units in the future, Kessler said. Washington made matters worse for developers with "confusing" incentives and delays in finalising eligibility rules for the tax credits, which it only settled on in early 2025 , just weeks before the change in administration. "The people who made money were the consultants who told people what it all meant," Kessler said. The late-2024 US election became both an "issue" and an "an excuse" for developers to explain the lack of progress, Kessler said. Many US firms complained that political uncertainty during the election period hampered their business decisions. Politically powerful energy companies lobbying Washington for "appropriate levels of incentives to cover the gap" or relaxing tax credit rules to lower project costs would be the most likely way to revive the sector, Kessler said. The US could consider setting mandates, but this is unlikely unless there is "more global buy-in", he said. Few regions, aside from the EU, have proposed mandates, and even there they have not been firmly implemented. But US firms and industrial groups are focusing lobbying efforts on protecting the hydrogen tax credits rather than quibbling over the rules, US sources said. The return of Trump to the White House made the future of the tax credits less certain because of his preference for boosting US fossil fuel output over investing in clean energy. Another contracting firm, Black & Veatch, recently said it was unsurprised to see many speculative projects fall by the wayside, and that the best route forward is better quality and modestly-sized projects with clear offtakers. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s Boral set to stay below emissions baseline

25/03/28

Australia’s Boral set to stay below emissions baseline

Sydney, 28 March (Argus) — Australian building materials firm Boral expects to remain below its emissions baseline under the safeguard mechanism, it said today as it announced further decarbonisation investments for its flagship cement manufacturing operations. Boral is "on track" to remain below the baseline safeguard mechanism requirements, chief executive officer Vik Bansal said on 28 March. This is because of the new kiln feed optimisation project and previous investments in decarbonisation projects, he noted. Boral's Berrima cement plant in New South Wales (NSW) state will invest in a new cement kiln infrastructure project that will reduce the facility's scope 1 emissions by up to 100,000 t/yr of CO2 equivalent (CO2e) from 2028, it said on 28 March. The project was awarded A$24.5mn ($15.4mn) under the Australian federal government's A$1.9bn Powering the Regions Fund (PRF). Grants will come from the PRF's A$600mn Safeguard Transformation Stream, aimed at decarbonisation projects at heavy industry facilities covered under the safeguard mechanism. The Berrima plant — Boral's only facility under the mechanism — reported 979,872t of CO2e in the July 2022-June 2023 compliance year, below its baseline of 1.075mn t of CO2e. The facility will be eligible to receive safeguard mechanism credits (SMCs) from the July 2023-June 2024 year onwards for any emissions below the baseline. The company also upgraded its carbon-reduction technology at Berrima last year, reducing fuel-based emissions through the use of alternative fuels at the kiln. The new kiln feed optimisation project will lead to a reduction in the so-called process emissions — the largest and hardest-to-abate emissions source in cement manufacturing. Approximately 35pc of Berrima's scope 1 emissions originate from fuel combustion, while the remaining 65pc are process emissions, according to the company. Australia's Clean Energy Regulator (CER) will publish 2023-24 safeguard data by 15 April . By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil, biofuel groups meet to align on RFS policy

25/03/27

Oil, biofuel groups meet to align on RFS policy

New York, 27 March (Argus) — Energy and farm groups met last week at the American Petroleum Institute to negotiate a joint request for President Donald Trump's administration as it develops new biofuel blend mandates, according to five people familiar with the matter. The private meeting involved groups from across the supply chain, including representatives of feedstock suppliers, biofuel producers, fuel marketers, and oil refiners with Renewable Fuel Standard (RFS) obligations. The groups coordinated earlier this year around a letter to the Trump administration on the need to update the RFS and are now seeking agreement on other program elements. According to the people familiar with the matter, the groups agree on pushing the Environmental Protection Agency (EPA) to set higher blend mandates under the program's D4 biomass-based diesel and D5 advanced biofuel categories. Groups support slightly different volume targets that are nevertheless all in "a rounding number of each other" in the D4 category, according to one lobbyist. But there is still disagreement about whether to ramp up mandates quickly in 2026 or provide a longer runway to higher volumes. Clean Fuels Alliance America and farm groups have publicly supported a biomass-based diesel mandate of at least 5.25bn USG starting next year, which could justify a broader advanced biofuel mandate above 9bn USG, according to the people familiar, though others worry about fuel cost impacts if mandates spike so quickly. The current mandate for 2025 is 7.33bn USG in the advanced biofuels category, including a 3.35bn USG mandate for the biomass-based diesel subcategory, so the volumes being pushed for future years would be a steep increase. The RFS, highly influential for fuel and commodity crop prices, requires oil refiners and importers to blend annual amounts of biofuels into the conventional fuel supply or buy Renewable Identification Number (RIN) credits from those who do. The idea behind the groups' coordination is that the Trump administration might more quickly finalize RFS updates if lobbyists with a history of sparring over biofuel policy can articulate a shared vision of the program's future. One person familiar said the effort comes after the Trump administration directed industry to align biofuel policy goals, though others said they understood the coordination as largely voluntary. EPA did not provide comment. There is less agreement around the program's D6 conventional biofuel category, which is mostly met by corn ethanol. Oil groups have in the past criticized EPA for setting the implied D6 mandate at 15bn USG, above the amount of ethanol that can feasibly be blended into gasoline, though excess biofuels from lower-carbon categories can be used to meet conventional obligations. Ethanol interests support setting the D6 mandate even higher than 15bn USG, which could be a tough sell. The discussions to date have not involved targets for D3 cellulosic biofuels, a relatively small part of the program. A proposal to lower 2024 volumes has hurt D3 credit prices, signaling that future mandates are effectively optional, according to frustrated biogas executives , and has reduced the salience of the issue for other groups. A proposal from President Joe Biden's administration to create a new category called "eRINs" to credit biogas used to power electric vehicles has similarly not come up. "We're not expecting to see any attempt to include eRINs in this next [RFS] proposal," Renewable Fuels Association president Geoff Cooper told Argus earlier this month. The meeting last week was largely oriented around the RFS, though a National Association of Truck Stop Operators representative raised the issue of tax policy too. The group has been frustrated by the expiration of a long-running blenders credit and the introduction this year of a less generous credit for refiners, which is only partially implemented and has spurred a sharp decline in biomass-based diesel production. But others involved in negotiations, while they acknowledge tax uncertainty could hurt their case for strong mandates, are trying to avoid contentious topics and focus mostly on volumes. Republican lawmakers are separately weighing whether to keep, repeal, or adjust that credit to help out fuel from domestic crops, and there is no telling how long that debate might take to resolve. Another thorny issue discussed at the meeting is RFS exemptions for small refineries. Biofuel producers strongly oppose such waivers and say that exempted volumes should at least be reallocated among facilities that still have obligations. Oil groups have their own views, though it is unclear how involved the American Fuel and Petrochemical Manufacturers — which represents some small refiners and has generally been more critical of the RFS than the American Petroleum Institute — are in discussions. EPA is aiming to finalize new volume mandates by the end of this year , people familiar with the administration's thinking have said, though timing for a proposal is still unclear. Future conversations among energy and farm groups to solidify points of unity — and strategize around how to downplay disagreements — are likely, lobbyists said. RIN prices rally Speculation over the trajectory of the RFS, and the potential for higher future volumes, supported soybean oil futures and widened the bean oil-heating oil (BOHO) spread. The BOHO spread maintains a positive correlation with D4 RIN prices as a widening value raises demand for D4 credits as biofuel producers look to offset higher production costs. Thursday's session ended with current-year ethanol D6 credits valued between 79¢/RIN and 82¢/RIN, while their D4 counterparts held at a premium and closed with a range of 84¢/RIN to 89¢/RIN. These gains each measured more than 5.5pc growth relative to Wednesday's values. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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