Apr 24 2023
Twenty US-based groups hoping to bring a hydrogen hub to their region submitted final applications to the Department of Energy, S&P Global confirmed last week. While the status of several other known groups remains unknown, the confirmed field of 20 applicants reveals a diverse array of hub proposals, each proposing to fuel their hub with a variety of feedstock combinations. The carbon capture industry in the US also showed signs of growth last week when Climeworks, a global leader in direct air capture technology, announced that it was increasing its US footprint to take advantage of the enhanced tax credits for carbon capture projects. The Swiss company said that it will be creating thousands of jobs in the US as it pursues several more direct air capture projects in the country.
The Port of Rotterdam Authority, operator of Europe's busiest container port, has called on the EU to tighten its regulations for emissions trading over fears that shipping lines could evade European port calls in order to dodge climate charges. Meanwhile Verra, the world's largest issuer of voluntary carbon credits, released a new draft methodology for REDD+ projects April 19, calling it the most "significant revision" of its practices, as it looks to restore the integrity and quality of its forest carbon credits. Finally, a meaningful spot market for sustainable aviation fuel, or SAF, is at least five years away, producers of the fuel said April 20. SAF accounts for less than 0.05% of total EU aviation fuel use.
In Asia Pacific, renewable and low-carbon ammonia took center stage last week with companies attempting to establish supply chains that would help power generators and industries to decarbonize. In Japan, the first shipment of independently certified low carbon ammonia produced by SABIC Agri-Nutrients with feedstock from Saudi Aramco arrived for use by the Sodegaura refinery for co-fired power generation. In South Korea, Korea Electric Power Corp., or KEPCO, signed a memorandum of understanding with Japan's Idemitsu Kosan aimed at developing blue ammonia supply chains that would seek to optimize ammonia shipping costs from joint shipping arrangements and balance the companies' ammonia supply and demand from such steps as swapping cargoes. Australian renewables company Ark Energy undertook a feasibility study investigating the potential for a large-scale renewable ammonia supply chain between Queensland and South Korea. Separately, in India, expressions of interest for building clean hydrogen innovation clusters in partnership with the government and industry players have been invited. -- Rocco Canonica
Americas
SPGlobal.com
At least 20 hubs submitted final applications for US hydrogen hub funding
EV adoption to grow rapidly as used vehicles come to lower-income communities
Platts Dimensions Pro
Climeworks to add 'thousands' of US jobs in pursuit of direct air capture projects
Project Canary pushes back against report claiming it failed to detect 'pollution events'
Air Products' green hydrogen import plans for California in flux as market evolves: VP
EMEA
SPGlobal.com
EU carbon prices back near Eur90/mt as compliance demand softens
Verra makes major changes to methodology of forest-based carbon offsets
This year could be a game changer for PPA market growth: RE-Source
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European spot market for SAF at least 5 years away: producers
Rotterdam wants tighter EU ETS rules to counter port call evasion
APAC
SPGlobal.com
Keppel, ExxonMobil partner to develop hydrogen, ammonia solutions for Singapore
India invites expressions of interest for clean hydrogen innovation clusters
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Saudi Aramco concludes first shipment of certified low-carbon ammonia to Japan for commercial use
Japan's Idemitsu, South Korea's KEPCO to explore blue ammonia supply chains
Queensland project to study renewable ammonia supply chain to Korea
Chart of the week:
Quotes of the week:
"The application process was just so aggressive, so fast. There was so much work required in modeling. In order to meet that April 7 [US DOE] deadline, you really had to lock in a governance structure and a management structure very early in the process in order to be able to do the techno-economic modeling that was required. … The process was just inherently challenging." -- Jeff Pollack, Horizons and Trans Permian Clean Hydrogen Hub
"Verra is constantly reviewing and refining its standards to include the latest data and science. We seek to establish the best possible standards through transparent, open consultation across civil society and the corporate sector, and we are confident the draft changes announced today are the next critical step in that ongoing journey of reflection and improvement" -- Verra CEO David Antonioli
Prices of the week:
$493 million
How much Shell spent on EU ETS allowances and other carbon market schemes in 2022
Eur6.15/mtCO2
Platts nature-based avoidance carbon credit assessment has fallen 53% year on year