Hydrogen Economy (20-24.02.2023)

Below some interesting news you can find in the space of #hydrogen, #greenhydrogen and #greenammonia (or #cleanammonia).

• The #EuropeanCouncil adopted an amending #regulation to include #REPowerEU chapters in the Recovery and Resilience Facility. The purpose is to strengthen the #strategic autonomy of the #EU by diversifying its #energysupplies and ending its dependency on #Russian #fossilfuel imports. This is the final step of the adoption procedure. In practical terms, member states will be able to add a new REPowerEU chapter to their national recovery and resilience plans (RRPs) under #NextGenerationEU, in order to finance key investments and reforms that will help achieve the REPowerEU objectives. Among the key objectives of REPowerEU are increasing the resilience, security and sustainability of the EU’s #energy system through the needed decrease of dependence on fossil fuels and diversification of energy supplies at EU level, including by increasing the uptake of #renewables, #energyefficiency  and #energystorage capacity. Additional grants of EUR 20bn will be made available to finance the #investments and #reforms. The financing sources will be the Innovation Fund (60%) and frontloading #ETS #allowances (40%). The allocation key is a formula which takes into account cohesion policy, member states’ dependence on #fossilfuels and the increase of investment prices. Member states will have further opportunities to request loan support including in the case of requests above 6.8% GNI where the relevant conditions apply. Member states will have the possibility of voluntary transfers from the Brexit Adjustment Reserve (BAR).
• The European Union is racing to catch up with #US efforts to build a green #industrial base, but European #business leaders say that the complex #policy #framework the EU has put in place is too difficult to navigate. Repsol CEO Josu Jon Imaz recently told analysts that there are clearly "two different strategies" in #Europe and the #US. "The main driver of the European #strategy is the stick," he said, referring to a mix of bans, complex regulations and "making things difficult." "The #IRA is just the opposite — it's a carrot. The IRA is predictability, a clear framework for investing in the #energytransition. It's simplicity. I mean, I'm able to understand the American rules," Imaz said. "I think it's fair to say that #Europe is catching up and some very good ... or promising announcements last week, but the beauty of the IRA is the simplicity," said Anja-Isabel Dotzenrath, who heads bp's #Gas   and #LowCarbon #Energy unit. "This is where I think Europe, let's say, needs to catch up a little bit," Dotzenrath added. TotalEnergies  CEO Patrick Pouyanné said #France's #economy minister had recently asked him if he planned to invest in #hydrogen. He replied that Total did plan to invest in hydrogen, but in the US. (#europeanunion #repsol #bp #totalenergies)
• #Spain - #Netherlands: Spanish company CEPSA signed an agreement on Monday with three #Dutch companies to supply #greenammonia to a terminal in the #portofRotterdam. The #ammonia, produced from #hydrogen generated by #renewableenergy, could be exported or converted back into  #green hydrogen for #industry in northwest Europe, the sources said. The agreement was signed by #Cepsa with private firms HES International B.V., Gasunie  Waterstof Holding and Vopak LNG, the sources said. The Dutch firms are developing the ACE Terminal in #Rotterdam, which will be Europe's largest for #greenammonia. Cepsa aims to start the first exports from #Spain in #2027 and the scope of the agreement will cover #sustainable   #marinefuels and hydrogen as an end product. (#cepsa #hes #gasunie #vopak #ace)
• #Spain: CEPSA and Grupo Fertiberia, two of Spain's largest hydrogen consumers, have reached an agreement to #decarbonize their production processes by jointly developing a large-scale #renewablehydrogen plant in #Huelva using #greenenergy and other #renewablegases. Through this union, #Cepsa  and  #Fertiberia have become strategic partners in the project to develop 1 GW of #electrolysis capacity in Palos de la Frontera as part of the Andalusian Green Hydrogen Valley. This valley will have a 2 GW capacity—1 GW in Campo de Gibraltar (#Cádiz) and another in Palos de la Frontera (#Huelva)—and production of up to 300,000 tons in Cepsa's Energy Parks. The agreement will meet the hydrogen and biogenic CO2 needs of both companies’ facilities in the industrial fabric of Palos de la Frontera (Huelva) in the most optimal way. Green hydrogen production will begin in #2026year, and it will be used for Cepsa's and Fertiberia's own industrial consumption while enabling the manufacture of advanced #biofuels, #ammonia, #AdBlue and  #sustainable  #crop nutrition solutions. The #HydrogenRoadmap, established by the Spanish government, sets a target for 25% of #hydrogen consumption in industry to be  #renewable by #2030year, both as a #rawmaterial and as an #energysource. Through this agreement, Cepsa and Fertiberia will decarbonize their consumption by using green hydrogen, jointly meeting the target set for the whole of Spain by the end of the decade. As a part of their agreement, the two companies will also consider producing #renewablefuels (#greenmethanol and #ammonia) in both Huelva and other provinces in mainland Spain. This new alliance is part of Cepsa's 2030 Positive Motion strategy, through which the company is transforming itself to become a benchmark in the #energy transition, leading sustainable mobility in #Spain and #Portugal, as well as the production of #renewablehydrogen and advanced biofuels. Cepsa will promote the #decarbonization of its customers, as well as its own activity, reaching net zero emissions by #2050year. For Fertiberia S.A., this alliance represents a new milestone in its strategy to accelerate the growth of its #greenammonia production and to become the first company in its sector worldwide to achieve #carbonneutrality by #2035year. Fertiberia already markets the #ImpactZero product line, which contributes to the #decarbonization of  #food  and #beverage production while promoting fully #sustainable #agriculture in #Europe.
• #Germany: The long-distance network operators Gasunie Deutschland and Thyssengas present concrete plans for a #hydrogen line between  #Wilhelmshaven and #Wesseling near #Cologne. Starting in #2028year, hydrogen quantities that are produced in the coastal region of Wilhelmshaven or imported from #Norway, among other places, are to be transported directly to the consumption centers on the #Rhine and #Ruhr via the north-south connection. The efficient #H2corridor is made possible by redezignating existing #transport lines of the project partners and building new sections. Due to the outstanding importance of the #infrastructure project, both Gasunie and #Thyssengas have submitted #PCI applications (Projects of common interest) to the European Commission for the two sections. The great benefit of the transport route is that it connects existing #hydrogen #clusters and projects. In the north it connects to the Hyperlink hydrogen network planned by #Gasunie , in the south to the sub-projects of the hydrogen initiative #GETH2 for which Thyssengas is responsible . In addition, in conjunction with other planned pipeline projects, the important consumption centers from the Münsterland via the Ruhr area to the Rhineland can be supplied with hydrogen. The planned north-south corridor will thus make a significant contribution to the development of an integrated #hydrogennetwork in Germany and to the ramp-up of the #hydrogenmarket in #Europe. (#gasunie #thyssengas #europeancommission)
• #Denmark: Topsoe’s #ammoniatechnology will enable Copenhagen Infrastructure Partners (#CIP) – through its CI Energy Transition Fund - and Sustainable Fuels Group (#SFG) to produce #blueammonia from a planned facility on the #US #GulfCoast, expected to be operational in #2027year. While the financial terms of the transaction were not disclosed, CIP said it has acquired the stake in this project through its Energy Transition Fund (CI ETF I). The facility will use Topsoe’s SynCOR™ technology, capture and sequestration of the #CO2 from the production, resulting in 90% (well-to-gate) #emissions reduction compared to traditional #ammonia production, abating 5.0 million metric tons of #CO2emissions per year. Located along the #GulfCoast, the project has commenced detailed engineering (#FEED) and will initially consist of two phases, each with a production capacity of 4,000 tons per day (~3.0 million tons of annual production of #cleanammonia from both phases) once operational in #2027year. Furthermore, the project has entered into an agreement with  International Matex Tank Terminals (#IMTT), a terminal and #logisticscompany, to provide #ammonia #storage and handling services.(#topsoe #ccus)
• #Netherlands: The #safety risks from transporting large amounts of #toxic #greenammonia at #ports, or by #road or #rail, have not been properly addressed in the Netherlands, raising fears of fatal #accidents and toxic clouds, according to a senior figure at regional #environmental protection agency DCMR Milieudienst Rijnmond. Daan Molenaar, director of regulation at the body — which is the environmental agency for the province of #SouthHolland (which includes #Rotterdam and #TheHague), and 13 local municipalities — told #Dutch newspaper NRC that small #oil spills occur at the #PortofRotterdam on an almost daily basis. But spills of toxic #ammonia could prove fatal. Another concern for Molenaar is that the rules for handling ammonia have become outdated as they were not designed for the large-scale storage now being envisaged. (Hydrogen Insight #hydrogeninsight #dcmr)
• #US #fertilizer producer LSB Industries, Inc. and Lapis Energy announced the filing of a permit application with the US US Environmental Protection Agency (EPA) to construct a Class VI well at their project to capture and sequester #carbondioxide (CO2 ) at LSB’s #ElDorado, #Arkansas facility. Class VI wells are used to inject #CO2 into deep rock formations and this long-term underground storage, referred to as geologic sequestration, reduces atmospheric #emissions and helps to mitigate climate change. Upon approval of the permit, Dallas-based Lapis will begin construction on the infrastructure required to capture and sequester at El Dorado and it had previously announced in #2022year that it would make 100% of the capital #investment required though cost have not been revealed. Once in operation, with a target date to start during #2025year, the sequestered CO2 is expected to reduce LSB’s direct #greenhousegas emissions by approximately 25% from current levels. In addition, sequestering more than 450,000 tons/year should allow LSB to then produce over 375,000 tons/year of #blueammonia. The permanently sequestered CO2 generated from the facility’s #ammonia production is expected to qualify for federal #tax credits beginning in #2026year, which are currently valued at up to 85 USD/ton captured. (#lsb #icis ICIS #lapis)
• Boston Consulting Group (BCG): According to International Energy Agency (IEA) estimates, the #world will need to produce 540 million tons of #hydrogen and capture between 4 and 8 gigatons of #CO2 each year to achieve #netzeroemissions by #2050year. This translates into a cumulative investment need of about USD 10 trillion in hydrogen projects and as much as USD 3 trillion in #CCUS projects. #Banks are factoring hydrogen and CCUS into their medium-term green lending plans. The survey found that 75% to 80% of #commercialbanks expect the two #technologies, low-carbon hydrogen and carbon capture, utilization, and storage (CCUS), to make up over 10% of their #energy-related portfolio by #2030year. At present, however, most banks aren’t providing nonrecourse debt finance to hydrogen and CCUS projects. Some 80% of announced #lowcarbon hydrogen projects #worldwide are still in the planning stage, while only about 7% of CCUS projects have reached the final investment decision (#FID) stage to date. Policy measures, such as the #InflationReductionAct (#IRA) in the #US and the European Union’s #REPowerEU plan (reinforced in February 2023 with the #EU #GreenDeal  Industrial Plan), are set to improve the #economics of hydrogen and CCUS projects and make them more bankable. Meanwhile, Barclays is one example of a #bank that is adopting a more innovative approach to funding hydrogen and CCUS businesses. The bank’s Sustainable Impact Capital portfolio, which is run by its principal #investment team, has invested #equity in Protium, a #UK developer of #energysolutions using #greenhydrogen, and MOF Technologies, a northern #Irish #carboncapture company. A number of banks are also providing #finance indirectly by supporting public-private investment initiatives (#ppp) for hydrogen and CCUS. For example, HSBC invested as an anchor partner in Breakthrough Energy Catalyst, which is investing in direct air capture (#DAC), #cleanhydrogen, long-duration #energystorage, and #sustainable #aviationfuel. (#bcg #iea #barclays #hsbc)
• #Oman: A Memorandum of Understanding (MoU) signed recently by #Japanese heavy #engineering manufacturer IHI Corporation with #Indian #green energy developer ACME Group could potentially see the former participating in a #greenammonia project backed by the latter and currently under development in the Sultanate of Oman. Green Hydrogen and Chemicals Company (#GHC), a joint venture between the #UK unit of ACME Group and #Norway-based Scatec ASA, a leading #renewable #energy solutions provider, is presently setting up the first phase of a green #ammonia venture at the Special Economic Zone in #Duqm. Phase 1, powered by around 500 MW or renewables, targets the production of 100,000 metric tons per annum of green  #ammonia. In the second phase, green ammonia output is anticipated to grow 12-fold to around 1.2 million metric tons annually. In a statement, Tokyo-headquartered IHI Corporation said it will "study and investigate the feasibility of producing and utilizing green ammonia derived from renewable energy" as part of the MoU. (Zawya #zawya #ihi #acme #scatec)
• #SaudiArabia - #Indonesia: ACWA Power and Indonesia’s state-owned #fertilizer producer PT Pupuk Indonesia (Persero) have signed a Memorandum of Understanding (MoU) to develop a giga scale #green #hydrogen project. #Pupuk Indonesia PT (#Persero) is the largest fertilizer manufacturer in #SoutheastAsia with total assets of 34.42 trillion Indonesian Rupiah (USD 2.2bn) and total production capacity of 12.71 million tons per year. Last November, the company signed an MoU with Indonesia’s state-owned #electricity provider PT Perusahaan Listrik Negara (#PLN). The scope of the MoU included a study for a 600-800 megawatt pumped-storage #hydroelectricity facility, investigating the possibility of a 4-gigawatt #battery #energystorage  system and the development of a hydroelectricity powered green hydrogen/ammonia facility. ACWA Power entered the South East Asian market last November with an award to develop to develop two floating #solar #photovoltaic (#PV) projects worth USD 105mn for PT Perusahaan Listrik Negara (PLN), the formers first floating solar PV project in its portfolio. Pupuk Indonesia opened its representative office in #Dubai in October 2022 with an eye on expanding cooperation opportunities in #ammonia, #urea, #NPK and blue and green hydrogen and ammonia. (Zawya #zawya #acwa)
• CRU, the #global #mining, #metals and #fertilizer #businessintelligence company, announces that it has launched its new #lowemissions #ammonia (#LEA)  #price assessment in its #FertilizerWeek price reporting service. The price takes a value-based approach, whereby a premium on the Northwest European ammonia price is calculated on an emissions-mitigated basis, and leverages CRU’s proprietary #nitrogen asset #emissions #data combined with weekly  #European #carbon prices to calculate the value of emissions mitigated. (#cru)
• Central European Gas Hub AG (#CEGH) launched the CEGH #GreenGas Platform for marketing of #GreenGases, such as #biogas and #hydrogen, in  #Austria. Around 0.1 TWh of #biomethane – processed biogas – are currently being fed into the #naturalgas network in Austria. By #2030year, 5 TWh of Green Gases should be available. CEGH GreenHydrogen Spot Index was traded on Friday at 247.4 EUR/MWh (-1.8 w.o.w.). CEGH GreenHydrogen Forward Index for March was recorded at 224.4 EUR/MWh (-4.4 w.o.w.).
• ICIS Northwest Europe ammonia-to-hydrogen assessment fell in value for the third straight week with #ammonia pricing continuing to slide amid a balanced supply and demand picture. The #ammonia2hydrogen northwest Europe assessment fell by 0.11 EUR/kg week on week to 6.72 EUR/kg on 23 February, setting yet another 15-month low in the process. #Naturalgas-based #hydrogenproduction methods also posted slight losses amid a drop in wholesale #gas pricing in #Europe, narrowing the ammonia-to-hydrogen premium as a result. Both front-month based unabated #SMR and #lowcarbon  #ATR hydrogen production held discounts of 2.57-2.91 EUR/kg below imported ammonia-for-hydrogen. #Ammoniapricing across #Europe continued to come under pressure in the early part of the second half of February with weak demand continuing on the #global market. (#icis)

Should you have any thoughts and/or insights related  to #renewablehydrogen, #hydrogen,   #greenhydrogen, #hydrogeneconomy,   #greeneconomy, #greenammonia, #hydrogen2ammonia, #biomethane feel free to leave it in the comments. Have a great week-end!