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Review delays Brazil's LPG assistance program

  • : Biomass, LPG
  • 24/11/11

Brazil's lower house has removed a proposed LPG assistance program from its urgent voting schedule, submitting it to further review and revisions.

The program announced in August is still under deliberation, but officials now expect further revisions before it moves forward and launches on 1 January.

The bill may add new controls to avoid fraud, the mines and energy ministry's petroleum, natural gas and biofuels secretary Pietro Mendes said last week during a debate in the lower house about LPG.

Congressman Hugo Leal, the bill's overseer, told Argus that he will propose creating LPG cylinders smaller than the typical household 13kg models to ease access for low-income families.

Low-income families spend 70pc of their resources on housing and groceries, according to Carlos Ragazzo, a researcher at the Getulio Vargas Foundation. That suggests that the current government financial support has likely been used for monthly expenses rather than substituting firewood usage for cooking with LPG.

Consumption of firewood for cooking fell from 2005-2015 (see chart), thanks to improved economic conditions throughout the country, according to energy research firm EPE. But the share of households that use firewood for cooking has hovered around 25pc since 2015, even after the launch of program to promote LPG cooking use in 2021 to help those families during the Covid-19 pandemic.

Leal met with lower house leader Arthur Lira on 5 November to discuss the program's proposals and voting agenda, but no details have emerged since.

Almost 1mn Brazilian households cook with biomass only. That represents 1.1pc of the 12.7mn households that use biomass for any energy need. Additionally, 56pc of the biomass-only households are low-income families.

A 13kg LPG cylinder in Brazil costs R106.63 ($18.49), on average. That represents 7pc of Brazil's minimum wage. Low-income families usually receive only half of the minimum wage, on average.

Brazil residential energy sources

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24/11/22

Japan’s Taketoyo to resume biomass co-firing in 2027

Japan’s Taketoyo to resume biomass co-firing in 2027

Tokyo, 22 November (Argus) — Japan's largest electricity producer Jera aims to resume coal and biomass co-firing at the 1.1GW Taketoyo plant in 2027's first quarter, after a fire halted plant operations in January. Jera announced on 22 November that the thermal power plant in central Japan's Aichi prefecture would resume co-firing wood pellets with coal at a rate of 8pc, around the end of the 2026-27 fiscal year ending in March. This will come after its safety measures are completed. The plant's co-firing rate was 17pc before the serious fire, which was caused by an explosion of dust from wood pellets. The company will consider increasing the co-firing rate again in the future, provided safety can be ensured. But the plant will restart coal-only combustion in early January 2025, operating mainly during the summer and winter seasons, when electricity demand is high. Jera will keep operation rates low at Taketoyo and other coal-fired plants when electricity demand is low and rely more on gas-fired generation, to achieve its initial plan to cut CO2 emissions through co-firing at Taketoyo. Taketoyo started co-firing operations in August 2022 and burned around 500,000 t/yr of wood pellets imported from the US and Vietnam. It will burn 200,000 t/yr after it resumes co-firing at 8pc. The plant will slow down the speed of wood pellet conveyors to reduce friction as a part of safety measures, which means it must also reduce its coal and biomass co-firing rate. It is also currently working on other safety measures, such as installing air pressure conveying facilities dedicated to wood pellets and explosion suppressor systems to inject fire extinguishing agents. The outage at Taketoyo has encouraged Jera to boost replacement gas-fired generation, with the extra gas-fired costs accounting for most of the estimated cost resulting from the shutdown, which could be tens of billion yen in the 2024-25 fiscal year ending in March. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil natural gas supplies diversifying


24/11/18
24/11/18

Brazil natural gas supplies diversifying

Rio de Janeiro, 18 November (Argus) — Supply in Brazil's growing natural gas market has diversified rapidly in recent months as domestic and international companies expand their foothold. Changes include a slew of new import authorizations granted by hydrocarbons regulator ANP in recent months. Last week alone, ANP authorizated up to 1.7mn m³/d of LNG imports, the 12th approval of the year, allowing as much as 3.8bn m³/yr (10.4mn m³/d) of LNG to reach Brazilian shores. US-based New Fortress Energy has led the pack, signing a bevy of new supply agreements from its regasification terminals in Barcarena port in northern Para state and the Terminal Gas Sul (TGS) in southern Santa Catarina state. New Fortress said it signed more than 45 trillion Btu/yr (860,000 t/yr) of downstream supply commitments across 15 buyers, with an average contract length of 18 years. The terminals emerged as important new destinations this year, with the Para terminal claming 2.2pc market share from January-October and the Santa Catarina terminal capturing about 0.5pc. On 8 November, ANP authorized New Fortress to import up to 1.7mn m³/d of LNG to be distributed by pipeline and small-scale means. It holds a 15mn m³/d import authorization for Barcarena and one for 146,000 m³/d of LNG from Bolivia by truck. Gas trading company Edge has also expanded LNG supply to Brazil. It began operating its TRSP regasification terminal in Sao Paulo earlier this year, catapulting Sao Paulo to a 6pc of share of Brazilian LNG imports in the first nine months of 2024 by selling nearly 1.27mn m³/d of gas. Edge sold 27mn m³ of gas to industrial clients from the terminal on the wholesale market in the third quarter. Shell is also looking to expand its Brazilian gas sales amid growing expectations of a boom in supply from its Vaca Muerta shale reserves in neighboring Argentina. Earlier this month it won authorization to import up to 8mn m³/d of gas by pipeline from Argentina and Bolivia. Shell is also assessing LNG exports from Argentina, which could include sales to Brazil. Shell is also planning to expand LNG imports through the Suape port in Pernambuco state next year. OnCorp expects to begin operating the 14mn m³/d LNG regasification terminal in the port, which Shell will use to supply clients in the region, including gas distributor Copergas. Other companies including Gas Bridge and Blueship are also eyeing LNG imports. Blueship is authorized to import through the port of Navegantes, in Santa Catarina, while Gas Bridge can import through state-controlled Petrobras' terminal in northeastern Bahia state. By Betina Moura Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Enshu Forest starts 7MW biomass power plant


24/11/18
24/11/18

Japan’s Enshu Forest starts 7MW biomass power plant

Tokyo, 18 November (Argus) — Japan's Enshu Forest Energy started commercial operations at its 7.1MW biomass-fired power plant in Fukuroi city of Shizuoka prefecture on 16 November. The Enshu plant will burn 90,000t/yr of wood chips made from unused forest materials and gathered mainly from Shizuoka prefecture. It can generate around 53GWh/yr of electricity, which will be sold under the country's feed-in tariff (FiT) scheme for 20 years. The plant was initially scheduled to come on line in December, but started two weeks earlier as Enshu Forest Energy, the operating company, completed its safety check and test runs earlier than expected. Enshu Forest Energy is a joint venture between renewable power developer Forest Energy, Shizuoka Gas and Power and Japanese utility Chubu Electric Power, with each holding 70pc, 25pc and 5pc shares, respectively. Shizuoka Gasa and Power is a subsidiary of gas provider Shizuoka Gas. Forest Energy runs several biomass generation projects, including the 480kW Tsuwano plant in Shimane prefecture and the 1.8MW Shingu plant in Wakayama prefecture, mainly burning wood chips that are secured domestically. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Korea’s Plagen plans Azeri green methanol plant


24/11/15
24/11/15

Cop: Korea’s Plagen plans Azeri green methanol plant

Baku, 15 November (Argus) — South Korean clean energy firm Plagen has signed an initial agreement to develop a green methanol production plant near the port of Baku, Azerbaijan. Plagen expects that the plant, which it described as Azerbaijan's first green methanol facility, will produce 10,000 t/yr of the fuel by 2028. It will use Plagen's technology, the firm said at a side event at the UN Cop 29 climate summit today. The methanol will be produced from agricultural waste and wood waste, including hazelnuts shells and almond shells, which will be sourced from Azerbaijan, Plagen chief executive officer John Kyung said. The production process yields 96t of methanol from 300t of biomass. The produced methanol will be used as bunker fuel, and contribute Baku port's goal to reach "carbon neutrality" by 2035 amid increased traffic through the Trans-Caspian International Transport Route, as ships seek alternatives to the fraught Suez Canal route. Kyung said today that the firm also has plans to produce green methanol at Indonesia's Batam to supply as bunker fuel to Singapore, the biggest bunkering port in the world. Plagen also expects 32,000 t/yr of green methanol production by 2027 at a plant in Taebaek, South Korea. This is up from 10,000 t/yr as previously planned . By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US inflation rises in October to 2.6pc


24/11/13
24/11/13

US inflation rises in October to 2.6pc

Houston, 13 November (Argus) — US inflation ticked higher in October, led by monthly gains in shelter, a reminder that the last lap in the Federal Reserve's marathon to bring inflation to its long-term target remains a challenge. The consumer price index (CPI) accelerated to an annual 2.6pc in October, in line with analysts' forecasts in a survey by Trading Economics, from 2.4pc in September, which was the lowest since February 2021, the Labor Department reported today. Core inflation, which strips out volatile food and energy prices, rose at a 3.3pc rate, unchanged on the month. The energy index contracted by 4.9pc over the 12 months, slowing from a decline of 6.8pc through September. The gasoline index fell by 12.2pc, slowing from a 15.3pc decrease the prior month. The fuel oil index fell by 20.8pc. Federal Reserve policymakers last week cut the target rate by a quarter point, following a half-point cut in September that kicked off an easing cycle from then-23-year highs. Inflation has slowed to near the Fed's 2pc target from highs above 9pc in mid-2022 that proved to be a major impetus behind president-elect Donald Trump's victory at the ballot box on 5 November. The CME's FedWatch tool today gives near-80pc odds of another quarter-point cut in December. "The economy can develop in a way that would cause us to go faster or slower" in adjusting rates lower, Fed chair Jerome Powell told reporters last week after the Fed decision. The food index rose by an annual 2.1pc, slowing from a 2.3pc gain through September. Shelter rose by an annual 4.9pc, unchanged. Transportation services rose by 8.2pc. New vehicles fell by 1.3pc while used vehicle prices fell by 3.4pc. Services less energy services, viewed as core services, rose by 4.8pc. On a monthly basis, CPI rose by 0.2pc in October, a fourth month of such gains after falling by 0.1pc in June. Core inflation rose by 0.3pc for a third month. Shelter accelerated to a 0.4pc monthly gain, accounting for over half of the monthly all-items increase, after a 0.2pc gain. Energy was unchanged in October after falling by 1.9pc in September from the prior month. Food rose by 0.2pc on the month, following a 0.4pc gain. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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