Global alternative marine fuel markets have been a hot topic at Oslo's Nor Shipping Trade Fair, with Greek shipowner Angelicoussis Group teaming up with Chevron to explore ammonia as marine fuel, and Fortescue Metals Group planning to promote a world...
Jun 08 2023
Global alternative marine fuel markets have been a hot topic at Oslo's Nor Shipping Trade Fair, with Greek shipowner Angelicoussis Group teaming up with Chevron to explore ammonia as marine fuel, and Fortescue Metals Group planning to promote a worldwide carbon tax on shipping. SHIPPING Member states of the International Maritime Organization are aiming to finalize new greenhouse gas emissions targets and regulations in early July, which are meant to provide market signals to industry stakeholders to invest in sustainable fuels, Secretary-General Kitack Lim said June 5 at the Nor Shipping event in Oslo. The UN's shipping agency will hold the 80th session of Marine Environment Protection Committee July 3-7, where some 170 countries are expected to conclude a Revised Greenhouse Gas Strategy for the coming decades. The IMO has set targets to reduce the carbon intensity of international shipping by 40% by 2030 and to halve emissions by 2050 from 2008 levels, but environmentalists and shipping industry participants said those do not align with the Paris Agreement's climate goal to avoid climate disaster. METHANOL Methanol's application as a marine fuel continued to grow. Stena Line ordered two hybrid propulsion ships capable of running on methanol as part of its efforts in shifting to renewable fuels to meet future decarbonization targets. Trafigura suggested hydrogen has a low volumetric energy density and needs to be processed into e-methanol to be feasible for the shipping industry. Platts, part of S&P Global Commodity Insights, will launch daily production cost-based renewable methanol prices for North America, Europe and Asia, in response to market feedback and maritime industry's need for price valuations for sustainable methanol, effective June 19, Platts announced on May 31. LNG LNG bunker prices in Europe fell in line with European LNG values. The Rotterdam LNG bunker fuel price was assessed at $11.805/MMBtu June 6, down $2.405/MMBtu compared to May 5. It also hit a two-year low since June 4, 2021, when it was assessed at $11.707/MMBtu. Looking ahead, 19 vessels with alternative fuel propulsion were ordered in May, according to data from DNV's Alternative Fuels Insight (AFI). Seven LNG-fueled vessels and 12 methanol vessels were ordered in May. Platts launched one assessment for LNG bunker fuel at Port Sines on May 1, to complement its price assessments at Rotterdam, Singapore, and Jacksonville. AMMONIA Low-carbon ammonia market activity continued to be heard in May and early June, with producers bidding $400/mt for Northwest Europe renewable-power derived ammonia (green ammonia), but offering at $700/mt. This was lower than April's offers heard at around $800-1200/mt while April's bid was almost unchanged at $400-500/mt, reflecting an ongoing weaker ammonia market. Conventional ammonia for Northwest Europe spot deliveries averaged $368.60/mt in May down from April's average of $407.50/mt. Prices continue to weaken with S&P Commodity Insights assessing CFR spot for Northwest Europe at $360/mt June 7. Fortescue Metals Group plans to promote "green ammonia" as marine fuel globally and wants a worldwide carbon tax on shipping to make the zero-emission fuel commercially competitive, Executive Chairman Andrew Forrest said June 6. Many shipping professionals said ammonia generated from renewable hydrogen is a strong candidate for a future fuel, but ammonia-fueled marine engines are not expected to be technically ready until 2024-2025. "We are developing ammonia fuel, and ammonia bunkering around the world," Forrest said at the Ocean Leadership Conference in Lillestrom, part of the Nor-Shipping event. BIOFUELS In European biodiesel, the market continues to respond to allegations of fraudulently-certified imports from Asia that have put downward pressure on prices in recent months. Prices have seen some recent recovery, but buyers report lower confidence in advanced biodiesel and feedstocks. There have been reports of slowing production amid low prices and high supply, but crop-based production margins have seen some support from lower rapeseed prices. In its Transport in Transition report published last month, DNV expects the shipping energy mix to compromise 50% low- and zero-carbon fuels mainly based on renewable hydrogen. Based on DNV's study, global production capacity of sustainable biofuels could grow from 11 million mt of oil equivalent currently to 23 million mtoe by 2026 before a further increase to somewhere between 500 million mtoe and 1.3 billion mtoe by 2050. However, the shipping industry would need to consume 250 million mtoe/year by 2050 if it was to fully decarbonize primarily using biofuels, according to DNV. Platts, part of S&P Global Commodity Insights, launched a new blended bio-bunkers assessment in Singapore called Platts Bio-Bunkers B24 Singapore (ABUNA00), effective May 8, 2023. The new Singapore delivered B24 bio-bunkers calculated assessment reflects a ratio of 76% fuel oil based on Platts benchmark Marine Fuel 0.5% Bunker Dlvd Spore $/mt assesses. Platts also launched four assessments for biofuel B35 in Indonesia.
The paraxylene market will be counting on a much awaited return of Chinese downstream demand in the second half of the year, as sentiment remains sluggish on the back of capped buying interest, growing supplies and a weaker-than-expected draw of arom...
Jun 07 2023
The paraxylene market will be counting on a much awaited return of Chinese downstream demand in the second half of the year, as sentiment remains sluggish on the back of capped buying interest, growing supplies and a weaker-than-expected draw of aromatics from Asia to the US for blending into gasoline. Chinese downstream demand has done little to stoke any optimism in the market despite high expectations at the start of the year. A much anticipated pull of aromatics from the US for blending into gasoline also fizzled out leading to PX prices moving lower in the run-up to the summer driving season while stuttering consumption trends in the US did little to bolster sentiment. With the driving season nearing commencement and despite a recent improvement in consumption trends in the US, there is limited scope for a last minute pull of PX and other aromatics cargoes from Asia given longer shipping times involved. Currently, margins for PX producers have remained stable with the spread between CFR Taiwan/China PX and C+F Japan naphtha holding above $350/mt though down from a record high of $483.83/mt on March 20, 2023. Market participants suggest that the spread could continue to stay perched above $350/mt for the next few months which could provide some incentive to PX producers to maintain operating rates in the second half of the year. However, growing supplies remain a concern as plant turnaround season ends and current capacities come back online though no new PX plants are expected in China for the second half of the year. So far in 2023, PetroChina's Guangdong Jieyang plant commenced operation with a capacity of 2.6 million mt/year along with CNOOC Daxie having a capacity of 1.5 million mt/year. The operating rates for these plants was fairly limited which helped cap supplies but are expected to rise steadily over the next few months. Meanwhile, CNOOC's new plant in Huizhou is expected to commence operations in June for its 1.5 million mt/year plant. The only likely support emerging so far for PX prices is the growing capacity of PTA plants in China and the fairly high operating rates for polyester manufacturers. Polyester producers in the country have raised operating rates back up to around 92% as more PTA plants come online and steadfast optimism that Chinese demand recovery is not too far away. "I think China is currently supported by intention of PTA makers to run [so] that could support PX for now," a trader in China said. Post China's re-opening after the COVID-19 induced lockdowns, market players were expecting strong demand growth especially from Q2 2023 onward. But with little of that materializing so far, the focus has now shifted to Q3 2023 though some market participants have even written off 2023. "I am actually looking at 2024 [since] 2023 is almost done," a PTA producer in China said. The early promise of China's reopening was reflected in the sharp rise in PX prices at the start of the year and vigorous buying trends visible in the market. But as reality of lackluster Chinese demand became increasingly evident, the enthusiasm began to wane. The global economic situation will also be watched, as fears of a recession continue to loom large on the horizon. Struggling economies in both US and Europe have dampened Chinese polyester exports further, weighing on sentiment. Chinese domestic consumption has shown marginal improvement but remains low for polyester finished goods so far. Furthermore, the weakness in key Chinese export markets such as the US and Europe spurred by the ongoing economic downturn have also crushed demand for polyester finished goods. Even China's economy is being cautiously watched with eyes on employment rates, domestic consumption trends and thirst for travel within the country. Market participants remain hopeful of a turnaround in the Asian giant's fortunes by Q3 while domestic gasoline consumption could surge during the upcoming long holidays in October. Weak eurozone In Europe, demand in the PX spot market is expected to remain weak, coupled with weak downstream demand from PTA and PET markets which is likely to weigh on the latter's consumption. Due to cooler-than-expected weather in May, alongside inflation eating into end-consumer purchasing power, consumption of PET bottles has remained lower than normal in the region. With PET consumption remaining sluggish within the continent, the impact will also be felt on demand for PX and PTA. Production of PX for spot consumption is also touted to remain low within Europe amid poor economics given the stiff competition faced from comparatively better priced Asian product. "Big producers won't produce until 2024" a distributor said. US' gasoline bet On the US front, PX imports found some support in the early part of 2023 on expectations of healthy blending demand in the run-up to the summer driving season. Paraxylene imports rose 80% on the year in the first quarter of 2023, according to US International Trade Commission data. PX imports totaled 270,048 mt in January-March, higher than 149,904 mt in 2022. However, the initial euphoria seemed to quickly fizzle out as weak consumption trends in the US amid bearish macroeconomic fundamentals. Furthermore, refiners in the US were also much better prepared this year compared to the previous year with a gush of imports seen last year unlikely to repeat itself. PX exports fell 24% on the year to 191,776 mt.
Recording changes to Russian oil exports and EU oil imports since the war in Ukraine Russia’s war in Ukraine has triggered a major upheaval in the global oil markets, forcing Moscow to find alternative buyers and Europe to source new supplies as West...
Jun 07 2023
Recording changes to Russian oil exports and EU oil imports since the war in Ukraine Russia’s war in Ukraine has triggered a major upheaval in the global oil markets, forcing Moscow to find alternative buyers and Europe to source new supplies as Western sanctions seek to clamp down on Moscow’s vital oil revenues. With an EU embargo and the G7 price cap on Moscow's oil now fully in place, Russian seaborne crude exports remain resilient as more volumes head East. Russian oil product exports have suffered, however, with new buyers in Africa unable to absorb Russian fuels displaced from Europe. Related story: Russian seaborne crude exports hit post-war high on Indian buying spree (Latest update: June 7, 2023)
Up to two-thirds of North America is at an elevated risk of electricity shortfalls this summer in extreme conditions with a high load and high outages, according to the North American Electric Reliability Corporation. Conventional plants are retiring...
Jun 06 2023
Up to two-thirds of North America is at an elevated risk of electricity shortfalls this summer in extreme conditions with a high load and high outages, according to the North American Electric Reliability Corporation. Conventional plants are retiring faster than the needed transmission and generation can be built, and there are questions about whether the natural gas system is up to the task of supplying fuel to gas-fired generators needed for reliability. S&P Global Commodity Insights' Kate Winston, a senior editor for Americas power news, discussed reliability with John Moura, the director of reliability assessment at NERC. Joining the discussion were Mason Lester, a senior research analyst with SPGCI, and Daryna Kotenko, the team lead for North American power pricing at SPGCI. We want to hear about your podcast preferences so we can keep improving our shows. Take our podcast survey here and share your thoughts: https://www.surveylegend.com/s/4xyz Subscribe to Platts Dimensions Pro More listening options: No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P).
Australia is expected to face a shortfall in nature-based carbon credits supply over the next two-three years as a key method for carbon removal expires in 2023 with no replacement expected this year, industry sources told S&P Global Commodity Insigh...
Jun 06 2023
Australia is expected to face a shortfall in nature-based carbon credits supply over the next two-three years as a key method for carbon removal expires in 2023 with no replacement expected this year, industry sources told S&P Global Commodity Insights. The Human-Induced Generation method made up 32% of Australian Carbon Credit Units in fiscal year 2022-23, Clean Energy Regulator, or CER, data showed. HIRs are the most prominent nature-based carbon credits in Australia, with others nature-based credits making up about 8% of the total ACCU generation in 2022-23, excluding avoided deforestation. HIR projects involve storing carbon by regenerating permanent native forests on a property where vegetation has been suppressed by activities such as unmanaged livestock grazing, feral animal activity and chemical destruction of regrowth. The HIR method will expire Sept. 30, after which no new projects will be registered, the CER said June 2. Existing generation HIR projects generated nearly 4 million ACCUs in fiscal 2022-23 (July-June), slightly behind the 4.4 million ACCUs generated by landfill gas-based projects and followed by avoided deforestation ACCUs of around 2 million, according to CER data. Overall, HIR projects have generated nearly 36% of total ACCUs issued over the last three fiscal years. While avoided deforestation is a nature-based method, it was officially discontinued earlier in 2023 and is generally not favored by buyers looking for high-integrity ACCUs. Platts, part of S&P Global, assessed the price of Generic ACCUs at A$35/mtCO2e ($23.17/mtCO2e) on June 5 and HIR ACCUs at A$36.25/mtCO2e. Generic ACCUs mostly represent credits from landfill gas and avoided deforestation methods and usually trade at a discount to HIR ACCUs. The only other nature-based methods that are generating credits of notable volume are Savanna Fire Management, or SFM, and Environmental Planting, or EP. EP accounted for just 1% of total ACCU issuance in FY 2022-23, and SFM represented a 2.4% share, thus leaving a large supply gap. There has been a significant number of project registrations for the soil carbon sequestration method, but only one of the projects has been issued ACCUs by the CER until now. "There has always been talk about soil carbon but I just haven't seen anybody get something off the ground or execute some of the issuance or seeing signs that it can be scaled up as much," a carbon broker said. New method The CER is consulting on a method, called Integrated Farm Management, or IFM, which is seen as a potential replacement for the HIR method. The IFM method aims to allow separate land-based activities to be combined on the same property or aggregated properties, according to the CER. The method was supposed to get the government's approval by February 2023, according to CER website. However, there was no sign of the method being approved in the near term with most industry participants suggesting a timeline as wide as six to 18 months. A draft for the IFM method was nearly 60%-70% complete and on track for parliamentary approval by the first half of 2023 but it got stalled due to a government-backed panel, called Chubb review, a major project developer said. The Labor government set up an independent panel in 2022 to review the integrity of several carbon methods and overall market governance. The panel, headed by Australia's former Chief Scientist Ian Chubb, published its report in January and recommended setting up a new committee to monitor method development and improve market governance. The new independent panel, called Carbon Abatement Integrity Committee, or CAIC, will replace the existing panel. However, the recruitment process for CAIC members is in early stages, according to an update from a government official May 22. "I think there is a capacity issue in Canberra. When you consider what the government in lockstep with the CER needs to prosecute over the next three years, it's quite a material roadmap," said Guy Dickinson, CEO of BetaCarbon, a blockchain-based carbon startup. Supply gap "There is going to be a hole in supply and in two to three years when the demand is going to be ramping up particularly through compliance, with hopefully voluntary demand increasing as well," the carbon broker said. The potential supply gap in nature-based credits is expected to appear as the demand for ACCUs starts increasing from big emitters under the country's strengthened emissions compliance scheme, Safeguard Mechanism , as well as from the voluntary market. Even if IFM gets approved in the near term, market participants do not expect the method to start generating ACCUs before 2026 as developers establish new land management practices, assess their commercial viability and work with landowners on implementation. "We have a shortfall around quality credits, and that shortfall will lead to a shortfall in the medium term in that 24-month period because you will get a lot of people clamoring for the same credits before they ever get to the market," Dickinson said. The market was still uncertain on the impact of HIR method's expiry on the spot ACCU price. "HIR sunsetting shouldn't have a direct impact on spot ACCU prices but may play into anxiety around a supply shortfall," said Kyle Hamilton, associate director, markets, RepuTex, a carbon market research firm. The impact on the price will not be visible in the first year but two or three years down the line, it is expected to have a positive impact on price, the carbon broker said.
Reliable demand forecasts for ethanol uptake in the EU are made harder by the piecemeal implementation of fuel standards across the bloc, an official at European renewable ethanol producers' group ePURE said in an interview. E10 gasoline contains up ...
Jun 06 2023
Reliable demand forecasts for ethanol uptake in the EU are made harder by the piecemeal implementation of fuel standards across the bloc, an official at European renewable ethanol producers' group ePURE said in an interview. E10 gasoline contains up to 10% renewable ethanol and is the standard gasoline fuel on offer across a range of service stations in a growing number of European countries. It picks up the baton from E5 and in many cases is slated to give way to E20 but although momentum is mounting for E10, with Poland recently announcing it will mandate E10, there are notable gaps in the picture. Spain and Italy do not have yet E10 available at pump level and these represent significant gaps, David Carpintero, director general of ePURE told S&P Global Commodity Insights in an interview June 5: "I think one of the issues for an ethanol demand outlook is when will Spain and Italy finally complete the implementation of E10. It's long overdue," he said. Producers and fuel blenders are already turning their sights to E20 and there is a risk that those not yet up to speed will be unable to catch up as E5 and in time E10 become obsolete, he said. "E20 will provide a strong tool for member states to comply with the new Fit-for-55 targets for 2030 to de-fossilize road transport," Carpintero said. There is traction in ethanol take-up. The Polish government aims to make E10 the standard fuel at the pump starting in 2024, replacing E5. In 2022, Poland's ethanol production increased 21% year on year, with corn oil the main feedstock. The introduction of E10 would add another 200,000 cu m to annual ethanol demand, according to the Polish biofuel chamber, or KIB. With fuel ethanol demand expected to rise in the future, crude oil refiner and biofuels producer PKN Orlen is set to bring forward investment into its fuel ethanol blending capacity by two years, with a view to producing E10 from January 2024. Other European countries are adopting the E10 fuel standard too. The Republic of Ireland rolled out the E10 fuel grade in April. Austria plans to introduce E10 in September, having recently created the regulatory requirements for its imminent launch upon the market. Global fuel ethanol production totaled 1.839 million b/d in 2022 and will rise to 1.962 million b/d in 2024, analysts at S&P Global said June 2. In Europe, production was 94,000 b/d in 2022 and this will rise to 103,000 b/d in 2024, the analysts said. Price concerns There were significant upswings in price following Russia's invasion of Ukraine in February 2022 and the resulting international sanctions. These affected flows to Europe of both conventional fuels such as gasoline and diesel, of which Russia was traditionally a key exporter, and feedstock for renewable fuels from the Black Sea. Fuel Ethanol T2 FOB at Rotterdam was Eur552/cu ($590/cu m) in March 2021; in March the following year, directly after the invasion, it was Eur1,143/cu m, according to S&P Global data. Since then, trade flows have reconfigured themselves and initial alarm about supply of fuel products has diminished. In May, Europe Fuel Ethanol T2 FOB was Eur753/cu m and analysts at S&P Global forecast it will be Eur764/cu m in November. May's level was the lowest in 2023 but the start of the summer driving season should provide a price floor, S&P Global analysts said. Crop-based fuels in the firing line There has been a growing chorus from lobby groups and lawmakers for biofuels to be produced from non-crop-based feedstocks, but from so-called advanced feedstocks, derived from residue. Through updates to its Renewable Energy Directive, the EU has not phased out crop-based fuels but has capped their content at 2020 levels plus 1%, with a maximum of 7%. European Waste-based & Advanced Biofuels Association (EWABA) secretary-general Angel Alvarez Albardi told S&P Global in April that while his group represents advanced feedstocks it still feels the need for crop-based biofuels in the mix. Carpintero echoed this, adding that the best way to manufacture advanced feedstocks is via production routes for crop-based fuels. "The best efficiency is when advanced [feedstocks derived fuel is linked to the existing biorefineries," Carpintero said, adding that there are 50 biorefineries in Europe. Production is currently set up along these lines in any case. At present, feedstocks in Annex IX A, the EU's list of approved advanced biofuels feedstocks, tend to be waste products from crops.
Observers and market participants in Mexico are concerned about possible damage from recent changes to guidelines on how the country defines clean energy. The modified guidelines allow energy generated with natural gas to be considered clean and enab...
Jun 06 2023
Observers and market participants in Mexico are concerned about possible damage from recent changes to guidelines on how the country defines clean energy. The modified guidelines allow energy generated with natural gas to be considered clean and enable some of state utility CFE's plants to compete for a market of certificates with private wind or solar plants. Mexico's Energy Regulatory Commission, the midstream regulator, issued new guidelines on what energy can be considered clean in order to allow the energy produced with steam from gas-fired combined cycle power plants to fit the description. Days later, the Energy Secretariat, or SENER, published its short-term planning document, known as PRODESEN. In it, SENER incorporated the new guidelines and added roughly 7 GW of "clean" energy generation without any new real capacity being added in Mexico. Energy certificates Although the modifications to the guidelines have been broadly seen as a way to meet the international commitments of generating at least 35% of its total energy matrix with renewable source, the changes allow combined cycle power plants to compete with solar and wind power plants for energy certificates that can be sold to companies to meet their decarbonization goals. The certificates were introduced as a way to incentivize the construction of new clean energy generation capacity and therefore excluded all facilities built previous to their introduction in 2014. Upon taking control of the government, the current administration looked to undo this regulation and tried to allow CFE to issue clean energy certificates with its hydropower plants and its nuclear plant, but the changes were blocked. These modifications are seen as a move in the same direction. "The move undermines the nature of the certificates and hurts those who already issue them as it is impossible to determine their future price or the flows," independent energy consultant Carlos Flores said. International companies with global commitments will not be able to justify these new instruments, but there is a risk that some other companies could accept the new certificates to meet their local obligations, creating a parallel market, Flores said. "This is clearly a way to benefit one company, and one company only: CFE," said Alberto Campos, senior adviser at consultancy Edison Energy. This reduces the incentives for private companies to invest in renewable energy plants as wind and solar plants will not only have to compete with each other, but also with combined cycles, Campos said. "It's just another reason for international companies not to consider Mexico," Campos said. Most observers told S&P Global they believe that just like all the modifications the country has seen in the five years of the current administration, these changes will end up in court and be suspended. International commitments The changes may end up in court, and the market for energy certificates may be unchanged, but some observers worry Mexico's reputation may be at stake, as the country is using the metrics to claim the country is meeting its international commitments. "Many people are angry and are already working to fight it in court" said Angie Soto, CEO of Nexus Energy, a power supplier for industrial users. The complaints will come from power generators and industry associations as well as environmental organizations like Greenpeace, Soto said. "It is most worrisome that Mexico will meet its goals, with a lie, by cheating," she said. "The question is: Will Mexico get away with it?"
US sanctions and export controls against Russia have centered on a dual mandate of squeezing the Kremlin’s oil export revenues and ensuring the continued flow of Russian oil supplies to the global market. With that in mind, price caps were devised as...
Jun 05 2023
US sanctions and export controls against Russia have centered on a dual mandate of squeezing the Kremlin’s oil export revenues and ensuring the continued flow of Russian oil supplies to the global market. With that in mind, price caps were devised as a carve out for EU and G7 maritime service providers to continue aiding with the seaborne transport of Russian fuels, as long as they are sold at or below cap levels set by a coalition of countries. The US Treasury Department recently heralded the price caps on seaborne exports of Russian crude and oil products a success, pointing to the Kremlin's falling oil revenues despite the country’s export volumes being up. However, most of the decline reflects lower global oil prices rather than the cheapening of Russian crude values. Rick Joswick, head of near-term oil market insights and research at S&P Global Commodity Insights, joined the podcast to discuss the shifts in trade flow patterns that followed US and EU sanctions prohibiting imports of Russian crude and oil products and the impact that’s had on freight rates and refining margins. Senior editor Jasmin Melvin also asked several oil market experts to weigh in on one question: Is the global price cap on Russian oil a sustainable policy mechanism for achieving the US' dual mandate, particularly if oil supplies get tighter and prices begin to rise again? We heard from: • Ben Cahill, senior fellow at the Center for Strategic and International Studies (6:42) • Kevin Book, director of research at ClearView Energy Partners (8:02) • Rachel Ziemba, adjunct senior fellow at the Center for a New American Security (10:28) • Fernando Ferreira, director of geopolitical risk service at Rapidan Energy Group (12:31) • David Goldwyn, chairman of the Atlantic Council's Energy Advisory Group (14:57) • Paul Sheldon, chief geopolitical adviser for S&P Global Commodity Insights (17:30) Stick around for Starr Spencer with the Market Minute, a look at near-term oil market drivers. Then, tell us more about your podcast preferences so we can keep improving our shows. Take our survey here: https://www.surveylegend.com/s/4xyz Related content: US claims success in curbing Russian oil revenue under price caps (premium content) G7 leaders agree to step up measures to counter evasion of Russian oil price caps US Treasury warns of Russian crude price cap evasion, beefs up sanctions enforcement No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P).
US debt ceiling package stripped of major energy transition measures New South Wales’ low-priced, mega wind, solar tenders good for hydrogen in long term Germany closes 7-GW offshore wind auction A permitting package tucked into a must-pass debt ceil...
Jun 05 2023
US debt ceiling package stripped of major energy transition measures New South Wales’ low-priced, mega wind, solar tenders good for hydrogen in long term Germany closes 7-GW offshore wind auction A permitting package tucked into a must-pass debt ceiling bill last week to avoid a US government default had little support for building new electric transmission lines to bolster the US energy transition, but grid expansion advocates in the US Congress are not giving up. The legislation was signed by the president over the weekend after being approved by the House and Senate last week. The Biden administration and Democratic lawmakers still want to boost transmission capacity to accommodate more renewable resources and improve US grid resilience. In other US legislative action, the US House did not reach the two-thirds majority needed to override President Joe Biden's veto of a bipartisan resolution from Congress that would overturn his two-year solar tariff moratorium. Biden vowed not to extend the two-year moratorium on solar tariffs, which postpones any new duties on solar cells and modules imported into the US from China. Meanwhile, US battery storage capacity reached 10.7 GW at the end of the first quarter with the California ISO holding nearly half that total with 5.2 GW. The rapid expansion of global battery capacity and an anticipated shortfall in essential raw materials are contributing to surging demand for recycled battery materials, known as black mass, Recyclus Group told S&P Global Commodity Insights. The global lithium market could see a deficit of up to 220,000 mt by 2030, according to forecasts released by S&P Global Market Intelligence in January 2022. Sweden’s Vattenfall plans to produce electrolytic hydrogen using power from the Ringhals nuclear power site and the Kattegat Syd offshore wind farm, the utility said June 2. "There are good conditions for building electrolyzers at Ringhals and creating a very flexible production facility for both fossil-free electricity and hydrogen," Andreas Regnell, Head of Strategy at Vattenfall, said. In Asia Pacific, Indian Energy Exchange threw its hat in the Voluntary Carbon Market ring by announcing plans to start trading carbon credits this year following setting up of a carbon exchange in 2022, and Chairman SN Goel said he betted on more trades moving to exchanges from the bilateral market. Policy for the India compliance market is still in the works, and Goel said the exchange would also be ready to launch this market segment that promises to be much larger. New South Wales in Australia floated mega wind and solar energy tenders at low strike prices to boost energy supplies amid shortages. Hydrogen industry watchers said the move will be good in the long term as excess renewable capacities could be used to fulfil the state’s hydrogen ambitions. Australia’s Hydrogen Energy Supply Chain, or HESC, said it is in talks for producing hydrogen derivatives such as clean ammonia, urea and jet fuel, a year after successfully shipping out liquid hydrogen via the Suiso Frontier tanker to Japan. – Rocco Canonica Americas SPGlobal.com US coal-fired power plant retirements, hydropower output remain important this summer Biden's solar tariff veto stands after US House vote doesn't reach majority US BATTERY STORAGE: Capacity reached nearly 10.8 GW in Q1, 3.17 GW planned in Q2 Premium content (available exclusively on Platts Dimensions Pro ) Grid expansion backers keep pushing permit updates after debt bill cold shoulder Pembina, Marubeni to establish blue ammonia supply chain linking Alberta to Japan Atlantic Canada targets startups of two green hydrogen projects in 2025 Clean air advocates flag 'worrisome' hydrogen-flaring trend to US lawmakers EMEA SPGlobal.com German offshore wind to enter new era as 7 GW auction closes Recyclus prepares to ramp up battery recycling as black mass demand takes off UK carbon prices dive to multi-year lows, EU ETS disconnect widens Premium content (available exclusively on Platts Dimensions Pro ) Vattenfall targets Ringhals for nuclear, wind-fueled hydrogen production Spain’s Cepsa, Ibereolica agree 5-GW green power supply for electrolyzers Equatic signs carbon removal credits, hydrogen deal with Boeing Asia-Pacific SPGlobal.com Indian Energy Exchange unit looks to start trades under VCM in 2023 New South Wales' cheap renewables drive sets stage for hydrogen era Premium content (available exclusively on Platts Dimensions Pro ) Inspection shows 20% third-party emissions verifiers in China do not meet standards: state media Japan bolsters loan insurance for LNG, critical minerals purchase, hydrogen supply chains Australian HESC in talks for low carbon urea, jet fuel production Charts of the week : US battery storage capacity reached 10.7 GW at the end of the first quarter with the California ISO holding nearly half that total with 5.2 GW, followed by the Electric Reliability Council of Texas with 3.3 GW. https://platform.platts.spglobal.com/web/client?auth=inherit#platts/newsInfographics?query=%20&id=a9f4d107-c420-498a-b26e-d8072b982e05 New South Wales: Hydrogen projects and infrastructure UK carbon prices have fallen close to three-year lows amid fragile compliance demand and growing macroeconomic concerns. Price of the week : GBP8.85/MWh The price of Platts-assessed UK bio renewable Guarantees of Origin has more than doubled year on year Quotes of the Week : "The electricity transmission measures included in the Fiscal Responsibility Act are woefully inadequate," US Rep. Sean Casten (D-Ill.) said in a statement. "We do not need to waste taxpayer dollars to tell us what we already know — if we want to fully realize the economic, reliability and environmental benefits of the Inflation Reduction Act, we need to increase the rate at which we deploy electricity transmission." "Get on, get back or get out of the energy queue” – UK National Grid ESO on moves to accelerate 10-year connection waits for essential energy transition generation projects "The transition to clean renewable energy in New South Wales is essential and underway. These projects will fill the gap that will be left with the planned closures of coal-fired power stations in the coming decade." – New South Wales state’s Energy minister, Penny Sharpe.
More and more ships are turning off their transponders in the Black Sea in risky but lucrative trades. Deep discounts on Russia's main export crude, Urals, and refined products such as gasoil and diesel, are attracting strong market interest. And dar...
Jun 01 2023
More and more ships are turning off their transponders in the Black Sea in risky but lucrative trades. Deep discounts on Russia's main export crude, Urals, and refined products such as gasoil and diesel, are attracting strong market interest. And dark shipping in "no man's land" now appears to be another option for those willing to play the markets. In this episode of the Platts Oil Markets podcast, S&P Global Commodity Insights editors Max Lin, Luke Stuart and Natasha Tan join Joel Hanley to discuss Russia's new attempts to break through Western sanctions. We want to hear about your podcast preferences so we can keep improving our shows. Take our podcast survey here and share your thoughts: https://www.surveylegend.com/s/4xyz Related price symbols: AAWVI00 - Urals Primorsk vs Med Dtd Strip AAYWS00 - Gasoil 0.1%S CIF NWE Cargo AAVBG00 - ULSD 10ppmS CIF NWE Cargo Related content by our speakers on this episode: Russia behind 225% spike in shadowy oil transfers at sea Infographic: Russia drives global spike in dark STS transfers Russia's Urals shines as crude export volumes grow in May No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P).
Saif Humaid al Falasi joined the Emirates National Oil Co. Group as general manager in 2008 after 25 years with the Abu Dhabi National Oil Co. He became ENOC Group CEO in March 2015. He also serves as a member of several entities developing the UAE's...
Jun 01 2023
Saif Humaid al Falasi joined the Emirates National Oil Co. Group as general manager in 2008 after 25 years with the Abu Dhabi National Oil Co. He became ENOC Group CEO in March 2015. He also serves as a member of several entities developing the UAE's energy policies, including the Dubai Supreme Council of Energy, the Fuel Price Committee in Abu Dhabi and the Dubai Future Council of Energy. Under Falasi's leadership, ENOC Group grew its refinery capacity by 50% to 213,000 b/d through an expansion project worth over $1 billion completed in 2019. The expanded Jebel Ali facility produces LPG, gasoline blendstock, jet fuel, diesel and fuel oil that meet Euro 5 specifications. ENOC currently supplies jet fuel to more than 200 airports across 22 countries. It operates 185 service stations in the UAE and more than 20 in Saudi Arabia. It also has a storage capacity of 6.68 million cu m to hold petroleum, chemicals and natural gas in the UAE, Morocco, Saudi Arabia, Singapore and Djibouti. Falasi spoke to S&P Global Commodity Insights Editorial Lead Claudia Carpenter about several projects that are underway as he steers ENOC to help the UAE reach net zero by 2050. What are some of the key projects ENOC is working on to help the UAE achieve its 2050 net-zero target? Saif Humaid al Falasi Most recently, ENOC signed a memorandum of understanding with DEWA (Dubai Electricity and Water Authority) to develop and operate a joint integrated pilot project for the use of hydrogen in mobility. Green hydrogen is an environmentally friendly energy source, which represents one of the pillars of a sustainable future. We also participated in an Emirates flight demonstration powered by 100% sustainable aviation fuel (SAF) by securing, blending and loading it. Furthermore, we invested significantly in the Service Station of the Future, which incorporates multiple sources of energy and harnesses the power of renewables. Inspired by the ghaf tree, a carbon fiber canopy running on wind energy and sporting the deployment of various smart technologies, the first-of-its-kind in the world service station — which is now open to the public at Expo City Dubai — symbolizes the strength of innovation and indicates how sustainability and technology are intrinsic to the future of energy and a greener world. The group has also prioritized sustainability within its own operations. In 2022 alone, ENOC Group achieved Dirham 8.6 million ($2.34 million) in savings from energy and resource management (E&RM) projects. The group's E&RM projects include solar photovoltaic panel implementation across its retail sites and various operations, in addition to LED retrofits, and the utilization of innovative sustainable solutions such as evaporative cooling, vapor and heat recovery systems. ENOC Group has also banned single-use plastics across its operations as well as in its head office. What is next after the Emirates flight demonstration using SAF in January? We participated in this achievement by securing and blending SAF, which will help to secure this type of fuel in the UAE and the rest of the world in the future. Investment in SAF in the years ahead will be key to supporting the global aviation industry to meet its energy transition goals. The use of SAF can result in up to an 80% reduction in the life cycle of carbon dioxide emissions and is widely considered in the global aviation industry as the most significant contributor to reaching its net-zero goal by 2050. What is the status of the jet fuel pipeline to Dubai's Al Maktoum International Airport? In 2022, we completed the construction of a 16.2 km jet fuel pipeline linking the Horizon Emirates Jebel Ali Petroleum storage terminal in Jebel Ali to Al Maktoum International Airport. The pipeline, which was safely and successfully commissioned in July 2022, will carry 2,000 cu m/hour of jet fuel to Al Maktoum and will meet the demand for jet fuel at Dubai airports up until 2050. Do you expect ENOC to be a part of Dubai's plans to sell shares in some government holdings? At the moment we are not exploring any potential initial public offering but are open to the idea of exploring it in the future. Has ENOC had to change the way it does business because of the energy transition? Over the years, ENOC Group has supported the UAE's strategy to diversify its energy mix by combining renewable and clean energy sources that are visible across numerous service stations that are powered by solar energy today. What is your outlook on fuel demand considering the growth in electric cars? In the short term, the impact on fuel demand may be relatively small, as electric cars still represent a small portion of the overall vehicle market. However, as electric cars become more affordable and more widely available, their market share is expected to increase, leading to a considerable decline in demand for gasoline and diesel. This does not come as a surprise as we are witnessing a global shift from traditional fossil fuel-based energy sources such as coal, oil and gas toward cleaner and more sustainable energy sources. These changes are expected to create significant opportunities for businesses and investors, as well as promote greater energy security and help to reduce energy poverty in developing countries. The energy transition is not without challenges. However, it presents significant opportunities for energy providers, such as ENOC, to diversify their portfolios, innovate and collaborate with other stakeholders to create a more sustainable energy future. This interview was first published in the May 2023 edition of Commodity Insights Magazine . Click here to download the magazine.
Faced with tough Western sanctions, Russia is adapting a tried and tested playbook to conceal the origins of oil cargoes. Crimean waters and Russia's exclusive economic zone have become the preeminent locations for dark ship-to-ship transfers, where ...
May 31 2023
Faced with tough Western sanctions, Russia is adapting a tried and tested playbook to conceal the origins of oil cargoes. Crimean waters and Russia's exclusive economic zone have become the preeminent locations for dark ship-to-ship transfers, where ships involved turn off their AIS transponders, leading to heightened trade risks. Read more: Russia behind 225% spike in shadowy oil transfers at sea Click here to see the full-size infographic
From 2015 to 2022, the worldwide deployment of clean energy resources grew from 120 GW per year to 325 GW per year. By 2030, our reference outlook sees this figure reach 540 GW annually. This evolution is transforming power market operations worldwid...
May 30 2023
From 2015 to 2022, the worldwide deployment of clean energy resources grew from 120 GW per year to 325 GW per year. By 2030, our reference outlook sees this figure reach 540 GW annually. This evolution is transforming power market operations worldwide, stimulating the sector’s supply chains, and advancing the global effort to decarbonize. In this brief video, S&P Global Commodity Insights shows quantitatively how we expect investments in clean energies to grow rapidly from now to 2030. On average, we expect global capital expenditure in zero-carbon technologies to surpass $700 billion annually during the next 7 years—about 35% more than was spent in 2022. The video and its underlying analysis are part of the Global Power and Renewables service, part of S&P Global Commodity Insights.
The Ministry of Power (MoP) released a draft on the Carbon Credit Trading Scheme (CCTS) on March 27, 2023, with the aim to establish a framework for the Indian carbon market (ICM). The ICM derives its legislative foundation from the Amendments to the...
May 30 2023
The Ministry of Power (MoP) released a draft on the Carbon Credit Trading Scheme (CCTS) on March 27, 2023, with the aim to establish a framework for the Indian carbon market (ICM). The ICM derives its legislative foundation from the Amendments to the 2001 Energy Conservation Act, adopted by the Indian legislature in December 2022. Prior to this, a more comprehensive draft carbon market policy document was formulated by the Bureau of Energy Efficiency (BEE) in October 2022. This aimed at define the scope design and other operational details of the proposed hybrid (compliance cum voluntary) carbon market [1] . The framework document goes a long way in clarifying the roles and relationships of various actors envisaged, such as the governing body, administrator, regulator, registry, verifiers, exchanges, and technical committees. It proposes to set up a governing body, named the ICM Governing Board (ICMGB) which will be co-chaired by secretaries of the Ministry of Environment, Forests and Climate Change (MoEFCC) and the Ministry of Power (MoP) and include members of several other key ministries that are linked to greenhouse gas (GHG) mitigation aiming to achieve India's nationally determined contributions (NDCs). The ICMGB will play a key role in giving direction to the ICM, framing norms, and providing oversight. BEE will be the ICM administrator and will accredit carbon verifiers (ACVs) responsible for measuring, reporting and verification, and induct technical committees who will provide sectoral guidance on abatement potentials and costs. The registry function will be handled by the Grid Controller of India which will coordinate with market players and exchanges, receiving periodic guidance from the ICM administrator. The regulatory duties will be fulfilled by the Central Electricity Regulatory Commission (CERC), which will be responsible for balancing market power and protecting market integrity. It will also select and govern the carbon trading exchanges. Our assessment of the framework document reveals certain areas where further enhancements, guidance, and transparency will strengthen the emerging domestic carbon market ecosystem: Increasing participation within the governing body and through experienced knowledge council(s): In its present form, the governing body has some notable exceptions such as Agriculture, Industries and Commerce, and Small and Medium Enterprises. Others such as mining, housing and urban affairs and transport will also be useful to include in its deliberations. Similarly, the scope of technical committees could be broadened to include a knowledge council consisting of market practitioners and advisory agencies already established in this space. Improving coordination with nationally determined contributions and between the federal and state governments: The CCTS framework omits the relationship between the ICM governance board and the Apex Committee for the Implementation of Paris Agreement (AIPA), as well as the Nationally Designated Authority for the Implementation of Article VI of the Paris Agreement (NDAIAPA) which replaces the erstwhile National CDM Authority of India [2] . While center-state coordination is critical for the ICM, the role of State Designated Agencies (SDAs) is also missing in the draft. Clarifying norms across and among compliance and voluntary schemes: The framework does not discuss the shape and form, the Perform, Achieve and Trade (PAT) and Renewable Energy Certificates (RECs)— the two existing compliance systems— will take after the establishment of the ICM. The norms and agencies responsible to facilitate interactions between the voluntary and compliance segment are also not clarified. Incentivizing foreign purchases for domestic carbon credits: There is but one mention of the role of ICMGB to specify the guidance for sale of carbon credits to international entities. However, any hints or specifics around timelines or phase for registration, criteria for foreign project developers, mandates or incentives for Indian projects registered on international voluntary platforms, and coordination mechanisms with such platforms and exchanges are missing. Foreign participation is key for enhancing liquidity on domestic exchanges and generating demand for Indian credits. Therefore, such norms and responsible agencies must be specified sooner rather than later. Customers can read the full report here or log on to our Connect platform to view our full range of offerings on India's carbon market and related topics. Past reports in this series include: India finalizes list of Paris Agreement Article 6.2-eligible projects, revises implementation plan for national emissions trading scheme India prepares national carbon market under Energy Conservation (Amendment) Act to deliver on NDC goal; future carbon price rise limited by plans to increase supply Impact of carbon credit export restrictions on India's global carbon trading revenues Webinar: Navigating the trade-offs and implementing the learnings for India's future carbon market In the race to global net zero, what are the lessons for India's carbon market? For more information on this research and its related service offering, please visit the Asia Pacific Regional Integrated Service page.
This episode takes you into the German Solar Valley, which was once the world’s largest production hub but was abandoned in the 2010s as China became solar powerhouse Number One. Now, companies like Meyer Burger Technology are ramping up the old fact...
May 30 2023
This episode takes you into the German Solar Valley, which was once the world’s largest production hub but was abandoned in the 2010s as China became solar powerhouse Number One. Now, companies like Meyer Burger Technology are ramping up the old factories, gunning for a revival of European production. But, CEO Gunter Erfurt tells the podcast, panels have evolved from commodity to geopolitical poker chip, and Europe risks losing the game without injecting more money into the sector. Thanks to the Inflation Reduction Act, solar expert Edurne Zoco of S&P Global Commodity Insights also sees more incentives for U.S. factories than European ones. Still, ESG considerations and shorter supply routes could increasingly make the case for home-grown products, too. Energy Evolution co-hosts Dan Testa and Taylor Kuykendall are veteran journalists with broad expertise covering the energy and mining sectors. In addition, Camellia Moors and Camilla Naschert, reporters who write about mining and power issues, are correspondents for Energy Evolution and regularly contribute to the show. Subscribe to Energy Evolution on your favorite platform to catch our latest episodes! We want to hear about your podcast preferences so we can keep improving our shows. Take our podcast survey here and share your thoughts: https://www.surveylegend.com/s/4xyz More listening options: No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P).