EU may have wide hydropower potential for power balancing
The EU has a vast untapped potential for
hydropower growth – expert
Growing intermittent renewables will need
more balancing capacity like hydro storage
Climate change could lift hydro costs but
increasing hydro capacity would help preserving
water resources too
LONDON (ICIS)–As intermittent supply from
renewable penetration increases, hydropower
could support balancing needs, mainly through
pumped hydropower storage (PHS) plants.
The European Commission Joint Research Centre’s
(JRC) energy model suggests a 20% increase in
annual hydropower output in the EU by 2050. The
model considers the potential of sustainable
hydropower in the EU, which will support the
balancing of the power system in many
countries, hydropower expert Emanuele Quaranta
at the European Commission told ICIS.
Key features of future hydropower will be “the
provided flexibility and the water and energy
storage of the associated reservoirs”, he
added.
Quaranta’s study based on 2019 EU hydro
generation conditions showed that modernising
and improving the efficiency of existing plants
would bring a 10% increase in power generation,
which could reduce the need for additional
capacity, with none or little impact on the
environment.
ICIS Analytics shows that in 2024, 254GW of
installed hydropower capacity in Europe
(including other non-EU countries) should
produce 512TWh, making 16% of the total power
generation stack. Hydropower capacity across
Europe could grow from 254GW to 279GW,
generating 543TWh or 10% of the total power mix
by 2050 while surpassing the total nuclear
power generation amid growing demand needs,
according to the ICIS Analytics forecast.
HYDROPOWER POTENTIAL
River and water basins in the EU are home to
more than 650,000 water barriers – including
small-scale dams – with only 5% currently used
for hydropower production, Quaranta told ICIS.
The EU has 5,000 large-scale dams above 15
metres, with storage volumes larger than 3
million cubic metres, half of them with
installed hydropower generation capacity.
However, only one-third of the total
infrastructures are built exclusively for
hydropower generation, with many sites
including hydropower as a secondary scope
alongside other types of use, like stocking
water for agriculture or residential use.
“The average age of hydropower plants currently
in operation is 45 years, meaning a large part
of the EU’s hydropower infrastructure will need
interventions to increase its efficiency and
flexibility, sustainability, improve the
resilience to climate change and ensure
safety,” the expert said.
According to a European Commission JRC study by
Quaranta, the hydropower energy return on
investment (EROI) is the highest among
renewable sources.
BALANCING NEEDS
Battery storage can be used for short-term
balancing, typically up to 4 hours, but when
insufficient renewable output is prolonged, PSH
can guarantee flexibility of power systems.
“PHS can store water energy (with daily,
monthly and seasonal storage depending on the
installed capacity and reservoir’s volume) more
cost-effectively than any other option, and can
put and absorb energy available in seconds,”
the JRC study indicated.
CLIMATE CHANGE RISKS
Climate change is set to impact the use of
hydropower, particularly in southern Europe
where the risk of severe droughts is expected
to increase over the coming years.
However, Quaranta noted that climate change
might impact regions differently, with northern
and eastern European countries expected to have
increased precipitation levels potentially
supporting hydro stocks, while southern Europe
could face drier weather hampering water
reservoirs and, therefore, electricity
production.
“Climate change could shorten the lifespan of
hydropower turbines as they would need to
operate in a context of dry weather alternating
with infrequently but stronger rainfall
volumes. Also, the required flexibility needed
to support the integration of the highly
volatile wind and solar energy generation can
increase the stress on hydropower equipment,”
he added.
Although climate change seems likely to lift
overall maintenance costs for hydropower plants
associated with sediment management (more
frequent floods could increase solid transport
and erosion), new technologies might mitigate
sediment deposition issues, Quaranta confirmed
15-Feb-2024
Global oil demand growth losing momentum as post-pandemic
rebound phase ends – IEA
LONDON (ICIS)–The momentum of crude oil demand
growth is starting to slow as the post-pandemic
rebound in consumption nears its conclusion,
the International Energy Agency (IEA) said on
Thursday, despite arctic conditions in January
tightening market balances.
“The expansive post-pandemic growth phase in
global oil demand has largely run its course,”
the agency said in its latest report on oil
market conditions.
The IEA projects that China, Brazil and India
will account for nearly 80% of the estimated
1.2m bbl/day demand growth that the agency is
forecasting for the year, half the levels seen
the previous year.
The IEA demand growth estimate is a sharp
contrast to the 2.2m bbl/day demand growth
forecast by OPEC, which it attributes largely to
transportation and petrochemicals sector
consumption.
The estimate is also an increase from earlier
IEA projections for 2024, from 900,000 bbl/day
in October 2023 to 1.1m bbl/day in December,
and up again to 1.2m bbl/day in January.
Strong output growth in the US, Brazil, Guyana
and Canada is expected to outweigh consumption
increases this year, the IEA said, but extreme
January weather in northern America coinciding
with fresh supply cuts by OPEC+ countries drove
a “massive” decline in production.
Oil supplies declined 1.4m bbl/day in January
on the back of the production cuts and
disruptions seen during the month, but a wave
of non-OPEC output growth is expected to kick
back in during the second quarter, IEA added.
This is expected to drive global oil supply
growth in 2024 to 1.7m bbl/day, significantly
outstripping demand growth, with the IEA
estimating that 95% of the increase to come
from non-OPEC+ countries.
Weak economic growth and subdued demand has
kept prices subdued despite escalating Middle
East tensions, with Brent April futures values
gradually deflating this week to $80.90/bbl in
Thursday trading.
A substantial disparity between supply and
demand could keep prices lower, particularly in
light of global conflict, the IEA added, but
limited reserves could result in volatility in
the event of substantial disruption.
Given heightened geopolitical risks and low
global oil inventories, a modest surplus may
help contain market volatility,” the IEA said.
“Low oil inventories exacerbate the price
impact of supply and demand shocks and may
limit the industry’s ability to respond to
unexpected strength in demand or disruptions to
supply,” it added.
Thumbnail photo:The Mittelplate drilling
station in Germany (Source: Olaf
Doering/imageBROKER/Shutterstock)
15-Feb-2024
US CF Industries projecting constructive near-term global
nitrogen supply and demand balance
HOUSTON (ICIS)–Global nitrogen industry
fundamentals point to a constructive global
nitrogen supply and demand balance in the near
term as well as there being a tightening global
supply and demand balance in the medium term,
CF Industries said in its latest fertilizer
market outlook.
The US fertilizer producer expects that in the
near term global nitrogen demand will remain
resilient and be driven by continued strong
agriculture applications and recovering
industrial demand.
Additionally, there is a view that the key
producing regions will continue to face
challenging production economics because of the
cost and availability of natural gas.
For North America, CF said their management
believes nitrogen channel inventories remain
below average amid a strong fall ammonia run
and nitrogen imports to the region being below
the three-year average.
There was also some production downtime in the
region during Q4.
Right now, CF is projecting 91 million acres of
corn will be planted in 2024 and that North
American farm profitability will improve in
2024 compared to 2023 as lower crop prices are
offset by lower input costs.
As a result, the producer expects nitrogen
demand in North America for spring applications
to remain strong.
Looking at Brazil, CF highlighted that imports
of urea were at 7.3 million tonnes in 2023, an
increase of approximately 3% year on year.
The producer said it expects Brazil to remain
the largest importer of urea globally despite
reported farmer caution regarding fertilizer
purchases during this growing season as they
evaluate the potential impact of poor weather
conditions on the upcoming safrinha plantings.
Another key market will be India which CF
management sees as remaining a significant
importer of urea this year even as their
domestic production increases with higher
operating rates at its new nitrogen facilities.
Imports of urea in 2024 are projected to be in
a range of 6 million to 7 million tonnes.
For Europe there is challenges ahead as CF
noted that approximately 40% of ammonia and 25%
of urea capacity were reported in shutdown or
curtailment as of early January with high
natural gas prices and lower global nitrogen
values primary factors.
The producer said it believes that ammonia
operating rates and overall domestic nitrogen
product output in Europe will remain below
historical averages over the long-term given
the region’s status as the global marginal
producer.
It therefore expects nitrogen imports of
ammonia and upgraded products to the region to
be higher than historical averages.
Regarding China, the company said their
expectations are that urea export controls and
inspections imposed on domestic producers will
remain in place to prioritize their output for
domestic consumption.
CF does anticipate the government will allow
windows during the year that will enable
producers to export with volumes coming from
China calculated around 4 million tonnes for
2024.
In Trinidad, the level of ammonia production in
recent years has been approximately 1 million
tonnes lower annually compared to the 2018-2020
average.
The producer is projecting ammonia production
to remain below average due to anticipated
higher natural gas prices and lower natural gas
availability for facilities.
Looking at Russia CF is forecasting that
ammonia exports will continue to remain lower
compared to prior years due to geopolitical
disruptions and the resulting closure of the
ammonia pipeline.
It did say from its view that the exports of
other nitrogen products are at pre-war levels,
with product moving to countries willing to
purchase Russian fertilizer, including Brazil
and the US.
Viewing the near and medium-term outlooks, CF
said the significant energy cost differentials
between North American producers and high-cost
producers in Europe and Asia are expected to
persist.
As such the company believes the global
nitrogen cost curve will remain supportive of
strong margin opportunities for low-cost North
American producers.
Longer term, CF said their management expects
the global nitrogen supply-demand balance to
tighten as global nitrogen capacity growth over
the next four years is not projected to keep
pace with expected global nitrogen demand
growth of approximately 1.5% per year.
Also, global production is expected to be
further constrained by continued challenges
related to natural gas cost and availability.
14-Feb-2024
INSIGHT: Low virgin chemicals pricing intensifies sustainable
transition challenge – Borealis CEO
LONDON (ICIS)–Lower pricing for virgin
petrochemicals in Europe on the back of a
prolonged demand trough is exacerbating the
challenge of building out sustainable products
portfolios into a core spine of a chemicals
business, according to the CEO of Borealis.
The Austria-based petrochemicals producer is in
the process of substantially increasing its
sustainable and circular products offerings,
completing its
acquisition of Italy-based recycled
polypropylene specialist Rialti in November.
The company also agreed to acquire Integra
Plastics, a Bulgaria-based producer of recycled
polyethylene and polypropylene, that month.
VIRGIN VS RECYCLED
The push to develop circular products as a core
plank of Borealis’ operations have become more
difficult amid strained profitability and low
pricing for conventional plastics, according to
CEO Thomas Gangl.
“What we want to do is focus on establishing
circularity as a viable business,” he said.
“This is tricky in general, and even more
tricky in times of low prices for virgin
material. On the other hand, I truly believe
that this is not an optional topic, and is the
way forward and we see for Borealis.”
“The current environment, with lower demand for
products, lower prices and margins, has of
course been a difficult situation for us as
well. Even more difficult in this environment,
is making the mid- and long-term structural
changes that we need,” he added.
Lower pricing for virgin material has been a
challenge for the mechanical recycling
sector, with production units tending to be
smaller-scale than gigantic fossil-based
petrochemicals production plant, and utilising
newer technology.
Those market characteristics can make for
higher costs, and periods of cheap and
plentiful fossil-based materials regularly
challenge the pace of recycled product market
adoption.
“We need to go to a more circular product
portfolio. During times when the material is so
cheap, it is very difficult to afford for
customers to buy something with a premium.
That is a challenging situation for the
transformation,” he said.
PERFORMANCE
The company reported 2023 operating profit of
€18m for its European asset base, excluding its
nitrogen fertilizers business, which it sold to
AGROFERT in July last year.
The long-anticipated divestment has also
allowed the company to simplify its approach to
moving into a more circular business model,
according to Gangl.
“The proceeds that we have received from the
sale were very good, and it is also about focus
in difficult times. With the transformation
towards circularity, we need to focus on the
polyolefin business, and the nitrogen business
was a big distraction from a management point
of view,” he said.
The 2023 figure is a huge decline from the
€703m generated -also excluding fertilizers –
the previous year, amid high inflation and
weaker margins and negative inventory effects.
“The European asset base that Borealis is
operating, excluding the big joint ventures
such a Borouge, recorded €18m operating profit
in 2023, a small profit compared to the record
year 2022, but 2023 was a tough year for our
industry, especially so for European based part
of our industry, with high energy prices,
inflation, a lot of imports,” said CFO Daniel
Turnheim.
“Don’t get me wrong, we are anything but happy
with that sum, but it’s still in a solid
positive territory,” he added.
Slow ramp-ups and production issues for some
new assets at Baystar, the company’s Texas
joint venture with Total, also limited
profitability last year. This is due in part to
the 625,000 tonne/year scale of the
polyethylene unit, which can present unique
challenges when ramping up output
“With this as the biggest machine ever built,
you would expect to see some ramp-up curve…
but we are convinced that this year this
ramp-up curve will be continued and hopefully
at the end of the year we will see a very
stable operation,” Turnheim said.
NO BIG SHIFTS IN 2024
No strong improvements are expected this year
compared to last, with OMV projecting that
operating margins for its European olefins and
polyolefins assets will slip further in 2024,
despite polymer sales and cracker operating
rates projected to increase.
OMV holds a 75% stake in the business, with
Borealis standing as the Austria-based oil and
gas major’s key foothold in downstream
petrochemicals.
OMV is in talks with Abu Dhabi sovereign oil
major ADNOC on potential closer cooperation on
petrochemicals, including the combination of
subsidiaries of Borealis and Borouge as equal
partners. Gangl declined to comment on the
talks.
Europe indicator operating
margins
(/tonne)
2024 (projected)
2023
Ethylene
490
507
Propylene
370
389
Polyethylene
320
322
Polypropylene
320
355
“I think what we really will see in 2024 is
that the situation is not substantially
different to 2023,” said Gangl. “It will be
another challenging year. And so everyone has,
therefore, focus on topics where there is the
highest value to be delivered.”
Like most European players, an
ever-intensifying focus on costs and
efficiencies is the order of the day, Gangl
said, with further consolidation in producers’
European asset base a strong possibility.
!We’ve done a lot in working on margins,
pricing, variable costs, fixed costs. This is
the name of the game for European players, and
therefore we need to continue this journey,” he
said.
“We have seen some first closures of assets
last year and also here I expect that the one
or the other will be added in the next years,”
he added.
LEGISLATIVE REFORM
With the institution of a new European
Parliament later this year as part of a wave of
general elections that will see changes in
national leadership for nearly half the
population of the globe, sustainability
legislation is likely to see some shake-ups.
Marco Mensink, director general of European
chemicals trade body Cefic, has predicted that
Commission support on sustainability investment
will be focused on the first movers and the
highest spenders as industrial strategy rises
up the agenda.
With the sustainability transition comprised of
the reinvention of numerous value chains and
those shifts needing to happen in parallel to
create a circular economy, what is lacking
beyond investment is clarity, according to
Gangl.
“We are not happy with the timing of what is
required from legislation and what we need to
do now. We are taking steps without knowing
exactly what the legislation will look like,
and this is of course creating some issues,” he
said.
The US Inflation Reduction Act includes scope
to cover operational expenses for new
production units in value chains that may not
yet be profitable, and an issue in Europe
remains an obstacle to maturity of cleaner
feedstock product markets, Gangl added.
“We can for example, produce more products
derived from bio-based feedstocks but as long
as this is not supported by legislation,
customers will not pay the extra costs for
that. And this is where we then need a lot of
smaller investments as well,” he said.
“So it’s not only one big investment, it’s many
smaller investments, and these will be delayed
if there is no change in the approach by
regulators,” he added.
Insight by Tom
Brown
Thumbnail photo: Borealis’ office in
Taylorsville, US. Source: Borealis
Clarification: recasts seventh
paragraph
14-Feb-2024
Shell withdraws from Iraq petrochemical project amid global
chemicals review
SINGAPORE (ICIS)–Shell has withdrawn from the
Nibras petrochemical project in Basra province,
Iraq as the Anglo-Dutch energy giant continues
to assess its chemicals portfolio, a company
spokesperson said on Wednesday.
The
Nibras petrochemical project was first
cemented in 2015 and was expected to have
around 2m tonnes/year of capacity.
“After in-depth evaluation on the feasibility
of the Nebras integrated petrochemicals complex
with our [Iraqi] Government partners, Shell has
decided not to proceed with the project,” the
spokesperson said in an e-mailed statement to
ICIS.
“This decision is in line with Shell’s focus on
performance, discipline and simplification, and
on the high-grading of our chemicals
portfolio.”
“Shell will continue to support our partners in
the Iraqi government in their efforts to
diversify the Iraqi economy.”
The company will continue to play a role in
Iraq via its partnership in the Basra Gas Co
joint venture as the main gas processing entity
in Iraq, the spokesperson added.
In Singapore. Shell is currently seeking buyers
for its oil
refining and petrochemicals plant in Bukom
and on Jurong Island, following a review of its
operations in the petrochemical sector amid
declining profits.
In Pakistan, the company sold in November last
year its 77.4%
stake in Shell Pakistan Ltd (SPL) to Saudi
Arabia’s Wafi Energy for an undisclosed amount,
marking Shell’s exit from the south Asian
country.
The sale of SPL, – which markets petroleum
products and compressed natural gas, as well as
blends ad markets various kinds of lubricating
oils – is expected to be completed by the
fourth quarter of 2024.
Thumbnail image: Iraq capital Baghdad on a
world map – 8 April 2021 (Jeppe
Gustafsson/Shutterstock)
14-Feb-2024
TOPIC PAGE: Sustainability in the fertilizers industry
Updated on 13 February.
On this topic page, we gather the latest news,
analysis and resources, to help you to keep
track of developments in the area of
sustainability in the fertilizers industry.
LATEST NEWS HEADLINES
EU eases climate
proposals after widespread farmer
protests
By Chris Vlachopoulos 07-Feb-24 LONDON
(ICIS)–European Commission President Ursula
von der Leyen announced on Tuesday that the EU
has agreed to ease key demands in its climate
proposal plans, following intense protests from
farmers.
Tecnimont awarded
engineering contract for Portugal green
hydrogen, ammonia plant By Graeme
Paterson 05-Feb-24 LONDON (ICIS)–Tecnimont has
been awarded an engineering contract to develop
an integrated green hydrogen and green ammonia
plant at Sines, Portugal, its parent company
Maire said on Monday.
EU proposes
relaxation in policy following farmer
protests By Deepika
Thapliyal 31-Jan-24 LONDON (ICIS)–The
European Commission Wednesday proposed relaxing
green farming requirements under the Common
Agricultural Policy (CAP), in its first attempt
to quell farmer protests across Europe as the
sector struggles to stay economically viable.
Biden
Administration invests $207m in domestic
fertilizer and clean energy
endeavours By Chris Vlachopoulos
23-Jan-24 LONDON (ICIS)–The Biden
Administration is investing $207m in domestic
fertilizer and renewable energy projects, the
US Department of Agriculture (USDA) Secretary
Tom Vilsack announced on Monday, 22 January.
Brazil’s state of
Ceara, Bp sign MoU for green hydrogen
site By Jonathan Lopez
18-Jan-24 SAO PAULO (ICIS)–The government
of the Brazilian state of Ceara and
UK-headquartered energy major Bp signed this
week a Memorandum of Understanding (MoU) to
build a green hydrogen site.
Atome Energy in
talks with buyers for green fertilizer from
Paraguay unit By Manuja Pandey
17-Jan-24 LONDON (ICIS)–UK’s Atome Energy Plc
is in advanced negotiations with leading
international players for the offtake of green
calcium ammonium nitrate (CAN) fertiliser from
its production facility in Villeta, Paraguay.
Sweden’s Cinis
targets Asia potash market with Itochu
partnership By Andy Hemphill
16-Jan-24 LONDON (ICIS)–Swedish green-tech
start-up Cinis Fertilizer has signed a letter
of intent (LOI) with Japan-headquartered
trading house Itochu to launch its
environmentally-friendly mineral fertilizer in
the Asian market.
Helwan selects
Eurotecnica’s Euromel G5 technology for new
melamine facility in Egypt By
Melissa Hurley 15-Jan-24 LONDON
(ICIS)–Eurotecnica has been selected by Helwan
Fertilizers Company (HFC) for the
implementation of a world-scale melamine plant
based on proprietary Euromel G5 melamine
technology, the technology arm of Switzerland’s
Proman said on Monday.
India’s Adani
Group plans $24bn green energy park; RIL to
commission giga complex By Priya
Jestin 12-Jan-24 MUMBAI (ICIS)–India’s
western Gujarat state is set to become the
domestic hub of green energy projects following
an announcement by the Adani Group to set up a
large green energy park and Reliance Industries
Ltd (RIL) set to commission its giga complex in
the state soon.
INPEX and LSB
pick technology for US ammonia
project By Stefan Baumgarten
10-Jan-24 HOUSTON (ICIS)–INPEX Corp and
LSB Industries have chosen KBR’s blue ammonia
technology for a planned 1.1m tonne/year
low-carbon ammonia project on the US Gulf
Coast, KBR said on Wednesday.
Bayer partners
with energy firms on hydrogen cluster in
Germany By Stefan Baumgarten
09-Jan-24 LONDON (ICIS)–Pharmaceuticals and
agrochemicals company Bayer has signed a
memorandum of understanding (MoU) with three
energy firms – E.ON, Iqony and Westenergie – to
establish a hydrogen cluster at its Bergkamen
production site near Dortmund, at the eastern
edge of Germany’s Ruhr industrial region. At
the core of the project will be the production
of green hydrogen from imported ammonia.
S
Korean group picks KBR tech for Malaysian green
ammonia project
By Al Greenwood 08-Jan-24 HOUSTON (ICIS)–A
South Korean consortium has chosen KBR’s
K-GreeN process technology for a green ammonia
project that it will develop in Sarawak,
Malaysia, the US-based engineering company said
on Monday.
Abu Qir signs MoU
for green ammonia project in Egypt
By Sylvia Traganida 03-Jan-24 LONDON
(ICIS)–North Abu Qir for Agricultural
Nutrients has signed a memorandum of
understanding (MoU) with ABB International
Group, MPS Infrastructure Company, and Petrojet
for the supply of green hydrogen and renewable
electricity.
EU CARBON BORDER ADJUSTMENT MECHANISM
(CBAM) EXPLAINED
What is it?
The risk of carbon leakage frustrates the EU’s
efforts to meet climate objectives. It occurs
when companies transfer production to countries
that are less strict on emissions, or when EU
products are replaced by more carbon-intensive
imports.
This new mechanism would counteract this risk
by putting a carbon price on imports of certain
goods from outside of the EU.
How will it work?
EU importers will buy carbon certificates
corresponding to the carbon price that would
have been paid, had the goods been produced
under the EU’s carbon pricing rules.
Conversely, once a non-EU producer can show
that they have already paid a price for the
carbon used in the production of the imported
goods, the corresponding cost can be fully
deducted for the EU importer.
This will help reduce the risk of carbon
leakage by encouraging producers in non-EU
countries to make their production processes
greener.
A reporting system will apply from 2023 with
the objective of facilitating a smooth roll out
and to facilitate dialogue with non-EU
countries. Importers will start paying a
financial adjustment in 2026.
How is the fertilizer industry
affected?
The fertilizer industry is one of the sectors
to fall under the CBAM.
The more energy-intensive nitrogen fertilizers
will be affected most in the sector by the
mechanism.
DEFRA CONSULTATIONS
EXPLAINED
The UK’s Department for
Environment, Food & Rural
Affairs (DEFRA) launched a
consultation at the beginning of
November 2020 on reducing ammonia
emissions from urea fertilizers.
The consultation ran until 26
January 2021.
It set out three options for
tackling ammonia emissions:
A total ban on solid urea
fertilizers
A requirement to stabilise
solid urea fertilizers with the
addition of a urease inhibitor.
A requirement to restrict the
spreading of solid urea fertilizers
to between 15 January and 31 March
of a given year.
Liquid urea is excluded from any
new rules or restrictions.
DEFRA is currently analysing the
feedback received.
In March 2022, DEFRA announced that
it had delayed introducing
restrictions on the use of urea by
at least a year to support farmers
with fertilizer availability and
keep their costs down
Should DEFRA decide to restrict the
use of urea in the future, growers
would be left with just ammonium
nitrate-based fertilizers.
PREVIOUS NEWS HEADLINES
Yara
aims to launch first container ship to run off
clean ammonia
India’s Odisha state
approves green hydrogen, ammonia, methanol
projects
ADM
announces launch of regenerative agriculture
program in Brazil
Fertiglobe completes
first renewable ammonia shipment with carbon
certification
Allied Green Ammonia
picks Topsoe’s tech for Australia project
Germany’s VNG looks to
secure offtake from Norwegian low carbon
ammonia plant
Gentari enters into
agreement with AM Green to invest into a green
ammonia delivery platform
ITOCHU Corporation,
Orascom Construction sign MOU for development
of ammonia bunkering in Suez Canal
India
developing port infrastructure for green
hydrogen exports
S
Korea, Saudi Arabia firms sign 46 pacts,
includes blue ammonia project
INSIGHT: CBAM reporting
begins, fertilizer exporters to EU challenged
to account for carbon
KBR
to supply green ammonia tech to Madoqua Power2X
site in Portugal
Germany’s SOM to build
green hydrogen, ammonia facility in Brazil’s
Piaui state
US
ADM and Syngenta sign MoU to collaborate on low
carbon oilseeds to meet biofuel demand
Tecnicas Reunidas, Allied
Green Ammonia to build green hydrogen and green
ammonia plant in Australia
Australian fertilizer
producer Orica accelerates climate change
targets
Nestle, Cargill and CCm
Technologies launch joint UK trial on
sustainable fertilizer
EnBW acquires stake in planned
Norwegian ammonia plant
Yara
Germany signs agreement for decarbonisation of
cereal cultivation using green fertilizers
Hyphen, ITOCHU ink MoU to
explore potential Namibia hydrogen
collaboration
INSIGHT: BASF grapples
with demand trough, slow road back
SABIC
AN ships low-carbon urea to New Zealand
US
Cargill and John Deere collaborate to enable
revenue for farmers adopting sustainability
Canada’s Lucent Bio
announces approval of biodegradable nutrient
delivery patent
Aker,
Statkraft’s 10-year PPA to spur European
renewable ammonia push further
BASF,
Yara Clean Ammonia to evaluate low-carbon blue
ammonia production facility in US Gulf
Coast
Yara
Clean Ammonia, Cepsa to launch clean hydrogen
maritime corridor
EU
details CBAM reporting obligations
Saudi
Arabia’s Ma’aden exports its first low-carbon
blue ammonia shipments to China
US
Bunge and Nutrien Ag announce alliance to
support sustainable farming practices
Maire
subsidiary Stamicarbon wins US green ammonia
engineering contract
India’s IFFCO launches
liquid nano-DAP fertilizer
EU
Parliament backs CBAM, emissions trading
measures
OCP
granted €100m green loan to build solar plants
at Morocco facilities
EU unveils plans to tackle greenwashing
India’s IFFCO and CIL to
manufacture nano DAP for three years
USDA awards Ostara funds to boost sustainable
phosphate fertilizer output
Canadian prime minister confirms fertilizer
emission goal is voluntary
US fertilizers industry increases carbon
capture in 2021 – TFI
Indian president calls for reduction in
chemical fertilizer use
IFFCO plans to export nano urea to 25
countries
Amman selects Elessent Clean Technologies for
Indonesia sulphuric acid plant
Lotte
Chemical forms clean ammonia consultative body
with RWE and Mitsubishi Corporation
Global 2020-2021
specialty fertilizer demand growth led by north
America, Asia
BASF
and Cargill extend enzymes business and
distribution to US
Saudi Aramco awards sulphur facilities overhaul
contract to Technip
India
sets green hydrogen targets for shipping, oil
& gas, fertilizer sectors
Germany misses climate target despite lower
energy consumption
TFI reacts to US Congress passing the Water
Resources Development ActHelm
becomes a shareholder in UK bio-fertilizer
company Unium Bioscience
Yara
inks deal to deliver fossil-free green
fertilizers to Argentina
Canadian firms plan fuel
cell generator pilot using green ammonia
Deepak Fertilizers awards contract to reduce
emissions, increase productivity
Saudi Aramco launches $1.5bn sustainability
fund to support net zero ambition
CF
Industries and ExxonMobil plan CCS project in
Louisiana
Canada’s plan to cut
fertilizer emissions is voluntary –
minister
Canada’s fertilizer emission goal raises food
production concerns
Uniper, Vesta to cooperate on renewable ammonia
site in the Netherlands
German Uniper to work with Japan’s JERA on US
clean ammonia projects
ADNOC ships first cargo of low-carbon ammonia
to Germany
US
Mosaic and BioConsortia expand collaboration to
microbial biostimulant
IMO deems Mediterranean Sea area for sulphur
oxides emissions control
Canada’s Soilgenic launches new enhanced
efficiency fertilizers technology for
retail
Austria’s Borealis aims to produce 1.8m
tonnes/year of circular products by 2030
European Parliament rejects proposed carbon
market reform
IFA
’22: southern Africa looks to bio-fertilizer as
cheaper, sustainable option
IFA ’22: Indian farmers will struggle to
embrace specialty fertilizers – producer
Canadian Nutrien plans to build world’s largest
clean ammonia facility in Louisiana
Japan’s JGC Holdings awards green ammonia plant
contract to KBR
Bayer to partner with Ginkgo to produce
sustainable fertilizers
Australia Orica and H2U Group partner on
Gladstone green ammonia project
Canada sets tax credit of up to 60% for carbon
capture projects
UK delays urea restrictions to support farmers
as fertilizer costs at record high
EU states agree to back carbon border tax
Yara to develop novel green fertilizer from
recycled nutrients
USDA
announces plans for $250m grant programme to
support American-made fertilizer
Canada seeks guidance to
achieve fertilizer emissions target
Fertilizer titan Pupuk Indonesia develops
hydrogen/blue ammonia business
India
launches green hydrogen/ammonia policy, targets
exports
Canada AmmPower to develop green hydrogen and
ammonia facility in Louisiana
US DOE awards grant to project to recover rare
earth elements from phosphate production
Fertiglobe, Masdar, Engie to develop green
hydrogen for ammonia production
Czech Republic’s Spolana enhances granular AS
production
India’s Reliance to invest $80bn in green
energy projects
Yara, Sweden’s Lantmannen aim to commercialise
green ammonia by 2023
Novatek and Uniper target Russia to Germany
blue-ammonia supply chain
Fertz giant Yara goes green with
electrification of Norwegian
factoryCanada
Arianne Phosphate exploring use of phosphate
for hydrogen technology
FAO and IFA renew MoU to promote sustainable
fertilizer use
Sumitomo Chemical, Yara to explore clean
ammonia collaboration
Sri
Lanka revokes ban on imports
Tokyo scientists convert bioplastic into
nitrogen fertilizer
Aramco plans Saudi green hydrogen, ammonia
project
China
announces action plan for carbon peaking &
neutrality
Saudi Aramco targets net zero emissions from
operations by 2050
Fertiglobe goes green with Red Sea zero-carbon
ammonia pro
Australian fertilizer major Incitec Pivot teams
up for green ammonia study
INTERVIEW: BASF to scale
up new decarbonisation tech in second half of
decade – CEO
India asks fertilizer companies to speed up
production of nano DAP
Japan’s Itochu set to receive first cargo of
blue ammonia for fertilizer use
Norway’s Yara acquires recycled fertilizers
maker Ecolan
Bayer Funds US start-up aims to cut nitrogen
fertilizer use by 30%
BP: Green ammonia production in Australia
feasible, but needs huge investment
Origin and MOL explore shipping green ammonia
from Australia
India’s IFFCO seeks to
export nano urea fertilizer
Sri Lanka reinstates ban on import of chemical
fertilizers
Nutrien to cut greenhouse gas emissions 30% by
2030
RESOURCES
IFA – Fertilizers and climate change
TFI –
Sustainability report
13-Feb-2024
Global economy resilient despite uncertainties – IMF chief
MUMBAI (ICIS)–While short-term cuts in oil
production, the Israel-Gaza conflict and tight
monetary policies continue to impact economies
in the Middle East, the global economy remains
resilient, International Monetary Fund (IMF)
managing director Kristina Georgieva said.
“The global economy has been surprisingly
resilient. Growth exceeded expectations in
2023, and global headline inflation is expected
to fall in 2024,” she said in her address to
the World Governments Summit in Dubai on 11
February.
The Israel-Gaza conflict has led to rising
freight costs and a nearly 50% drop in Red Sea
transit volumes, she said, adding that the
conflict was also impacting neighbouring
economies.
Any further widening of the conflict could
aggravate the economic harm to countries still
recovering from previous shocks, Georgieva
said.
Declining oil demand is expected to become an
increasing headwind over the medium term, as
“net energy importers are held back by
historically high debt and borrowing needs, and
limited access to external financing”, she
added.
While growth in 2024 is expected to exceed the
previous year’s growth, “global medium-term
growth prospects remain anaemic at around 3%,
compared to the historical average of about
3.8%,” Georgieva said.
The IMF expects 2024 GDP growth for the Middle
East and North Africa (MENA) region to reach
2.9%, down from 3.4% previously.
The IMF is publishing a paper on 12 February
recommending gradual energy subsidy reforms for
the Middle East which could save $336bn in the
region, equivalent to the economies of Iraq and
Libya combined, Georgieva said.
Eliminating regressive energy subsidies would
also “discourages pollution, and helps improve
social spending,” she added.
Thumbnail image: IMF logo in Washington,
US. (Xinhua/Shutterstock)
12-Feb-2024
PODCAST: How do neutrality charge plans and LNG outage align
with Italy’s gas hub goals?
LONDON (ICIS)–In this episode of the ICIS
energy podcast, Elisa Rondella, vice president
of the Italian Association of Wholesalers and
Energy Traders (AIGET), talks to ICIS energy
market reporter Camilla Vitanza about the
challenges facing the Italian gas market.
Rondella shares her thoughts on the proposed
Neutrality Charge that the Italian Energy
Regulator is considering implementing in April,
and how it could impact Italy’s goal to become
a key European gas hub.
09-Feb-2024
Germany, Algeria sign MoU for future hydrogen supplies
Two countries to establish a bilateral
hydrogen task force
Germany, EU seeking to import renewable
hydrogen from Algeria
4m tonne/year minimum Southern H2 Corridor
running by 2030
LONDON (ICIS)–Germany and Algeria have signed
a memorandum of understanding (MoU), with the
two countries set to establish a bilateral
hydrogen task force as part of the energy
partnership, the German government announced 8
February.
The Algerian-German hydrogen task force is
intended to promote conditions for production,
storage, and transport of renewable hydrogen
and its derivatives.
Moreover, Algeria is to be supported in the
development of hydrogen infrastructure and
renewable hydrogen production.
GERMAN HYDROGEN STRATEGY
Germany is forecast to be Europe’s largest
hydrogen demand centre, with 55TWh/year
currently used in the country, with the demand
forecast to reach as high as 130TWh/year by
2030, according to the country’s hydrogen
strategy.
However, as much as 70% of the hydrogen due to
be used in Germany is expected to be imported
because domestic production is not expected to
meet internal demand.
Imports are set to be a mixture of pipeline
renewable hydrogen imports, and maritime flows
of renewable ammonia delivered into ports in
both Germany and the Netherlands.
As a result, Germany has signed several MoUs
with multiple global partners to facilitate
flows of renewable hydrogen and its derivatives
into the country, with some of these due to
kick in before the end of the decade.
ALGERIA HYDROGEN POTENTIAL
Algeria is forecasting to produce 40TWh/year of
renewable hydrogen by 2040 with the volumes due
to be split between gaseous hydrogen via
pipelines, liquefied hydrogen, and renewable
hydrogen derivatives.
In the nearer term, the Southern H2 Corridor is
due to be operational by 2030, forecast to be
able to move at least 4m tonnes/year of
hydrogen into Italy via Tunisia, by using
mostly repurposed gas infrastructure.
09-Feb-2024
MOVES: Steve Prusak to succeed Bruce Chinn as CPChem CEO
HOUSTON (ICIS)–Steve Prusak will become the
CEO of Chevron Phillips Chemical (CPChem),
effective 1 March, the US-based polyethylene
(PE) producer said on Thursday.
Prusak is currently senior vice president of
corporate planning and technology.
He is succeeding Bruce Chinn, who is retiring
after more than 40 years in the energy
industry.
“The past three years at the helm of CPChem
have been among the most rewarding of my
career,” Chinn said. “It’s been a privilege to
lead this great company through a time of
transition as we advance a portfolio of
strategic projects to grow our global asset
base, progress a circular economy for plastics
and work to lower the carbon intensity of our
operations.”
Mitra Kashanchi, Chevron Phillips president,
said, “I’d like to congratulate Bruce on a
tremendous career.”
Chevron Phillips announced other management
changes that will take effect on 1 March.
Mitch Eichelberger, executive vice
president, polymers and specialties, will
retire. Justine Smith, senior vice president,
petrochemicals, will assume additional
responsibilities for polymers and the company’s
specialties businesses.
Bryan Canfield, currently senior vice
president, manufacturing, will take on
additional responsibility for projects
organization and will become executive vice
president, manufacturing and projects.
Kevin Ristroph, currently vice president,
specialties, will become senior vice president,
corporate planning and technology.
08-Feb-2024
