Dec 05 2022
The US Environmental Protection Agency unveiled a proposal that would require refiners to annually raise the volume of renewable fuels mixed in gasoline and diesel products over the next three years. The proposal would require refiners to blend 20.82 billion gallons of renewable fuel in 2023, up from 20.63 billion gallons today, before stepping that requirement up to 21.87 billion gallons in 2024 and 22.68 billion gallons in 2025. Meanwhile, some of the world's largest airlines are solidifying hydrogen into their net-zero plans in recognition that sustainable aviation fuel won't be able to decarbonize the industry on its own.
In Asia Pacific, Japan's Kansai Electric is poised to launch what will likely be the country's first trial of producing hydrogen from nuclear power in December, and is participating in a project in Australia to import liquefied hydrogen to Japan from around 2027. The move signals multi-pronged efforts to build a hydrogen supply chain that could end up having multiple sources. South Korean steelmaker POSCO Group said it is planning to invest $40 billion in Australia for renewable hydrogen and green steel in what would result in 1 million mt production of renewable hydrogen by 2040. The Australian government last week also introduced legislation in parliament to establish a new type of carbon credits, which will be circulated among entities covered in the nation's compliance emission trading scheme.
In Europe, the EU has taken steps to shake up carbon markets, bringing shipping under the Emissions Trading System for the first time. Ship operators will have to start surrendering carbon allowances for 40% of their 2024 emissions from 2025, ratcheting up thereafter. The European Commission also proposed a new certification of carbon removal credits to counter accusations of greenwashing in the sector. Elsewhere, RWE signed an MOU for green ammonia from the planned Hyphen Hydrogen Energy plant in Namibia, eyeing up to 300,000 mt/year from the 3-GW electrolyzer project. Platts newly-launched green ammonia prices show renewables-derived production out competing conventional gray ammonia on cost, delivered to Northwest Europe – James Burgess
North America
SPGlobal.com
British Airways, United aim to use hydrogen-powered planes for short-haul flights within decade
US EPA proposes higher biofuel blending mandates for next three years
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SAF can't solve airlines' emissions problem without clean hydrogen: American Airlines
US commercial solar installations to double over the next three years: SEIA
US Commerce finds four Southeast Asia solar companies to be circumventing tariffs
Asia
SPGlobal.com
INTERVIEW: Kansai Electric set for Japan's first nuclear power-originated hydrogen output test
High prices jeopardize role of natural gas as bridging fuel in energy transition
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South Korea's POSCO to invest $40 bil in Australia for renewable hydrogen, green steel
Australia tables bill on compliance carbon market reform, to launch new credits
Policy uncertainties hinder private sectors from scaling up carbon market: experts
Europe
SPGlobal.com
EU's ETS for shipping to start from 2024, include methane in emissions accounting
European Commission proposes certification of carbon removals to counter greenwashing
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RWE eyes green ammonia offtake from Hyphen Hydrogen Energy in Namibia
Cepsa to develop 2 GW Andalusia renewable hydrogen hub in Spain
Battery sector nickel demand to rise 37% on year in 2022, 34% in 2023: Nornickel
Charts of the week:
Platts' new green ammonia price assessments land substantially below conventional fossil fuel-based production, S&P Global Commodity Insights data showed:
Quote of the week:
"The key to cost reductions is economies of scale, and for that we need ambitious governments that want big renewable projects. We need gigawatt-scale ambitions, not megawatt-scale." Equinor Senior Vice President of Renewables Ingunn Svegaarden
Price of the week:
GBP69.50/mtCO2e
UK carbon allowances on Nov. 30, dipping below European allowances for the first time on a weak macroeconomic outlook in the UK, coupled with more bullish short-term trading in the EUA market