Tag Archives: Energy (Legacy)

Italy drafts guidelines for a national hydrogen strategy, the document shows | Instant News

MILAN, Nov 16 (Reuters) – Italy has set guidelines for a national hydrogen strategy to help decarbonize the economy as it gradually phases out coal and increases production of renewable energy to meet long-term climate targets.

In a draft document called the National Hydrogen Strategy Preliminary Guide, seen by Reuters, the Ministry of Industry said it was targeting investment in the sector at around 10 billion euros ($ 12 billion) by 2030, with half of that coming from European funds and private investment. .

To help increase “green” hydrogen production, about 5 gigawatts of electrolysis capacity to extract gas from water will be introduced during the period, the document says.

Electrolysis can be a carbon-free process if the power used is generated from renewable energy. Hydrogen is now mostly produced from fossil fuels or other carbon emission processes, because electrolysis is too expensive because of the large power required.

By 2030, hydrogen could account for 2% of Italy’s final energy demand and help remove up to 8 million tonnes of CO2, the document said. As the scale of the industry goes up and costs fall, this could reach up to 20% by 2050, he said.

The document, when published, will form the basis of consultations before a final hydrogen strategy is approved, possibly early next year.

Brussels mapped out plans this year to promote hydrogen as it strives to achieve net zero emissions by 2050. France, Germany and Spain have set their own targets.

Hydrogen is currently too expensive to be widely used but as costs go down, governments around the world see it as a substitute for fossil fuels in areas where electrification is not an easy solution.

The ministry document, which says the plan could create more than 200,000 jobs and generate up to 27 billion euros in Italy’s gross domestic product, said hydrogen could be used in transportation, heavy industry and natural gas pipelines.

Italian gas group Snam has been experimenting with a 10% hydrogen mixture in part of its natural gas network, while power company Enel and energy company Eni both have hydrogen plans.

$ 1 = 0.8458 euros Reported by Stephen Jewkes; Edited by Edmund Blair


image source

Petrobras Brasil opens sales processes for the old Marlim oil cluster | Instant News

FILE PHOTO: The logo of the Brazilian state-owned Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / Photo File / Photo File / Photo File

RIO DE JANEIRO (Reuters) – Petroleo Brasileiro SA from Brazil PETR4.SA is preparing to sell a 50% stake in the marine oil cluster in its legacy, the company said Monday in a filing.

In production since the 1980s in the Campos Atlantic Ocean basin, the giant Marlim cluster has four fields – Marlim, Voador, Marlim Leste and Marlim Sul – producing 217,000 barrels of oil per day, or nearly 10% of the company’s total production.

The sale, at an early stage, is part of Petrobras’ plan to sell non-core assets to cut debt and focus investment in the world’s largest deepwater discovery this century, in the so-called pre-salt region.

Newer pre-saline deposits, found under a thick layer of salt on the seabed in Brazilian waters, have increased rapidly in the last decade and are responsible for more than 70% of Petrobras production.

Marlim was once the largest oil field with more than 500,000 barrels per day, Marlim has experienced a decline in production in the last decade. At present, Marlim Sul and Marlim are Brazil’s sixth and eighth largest oil fields, respectively. Marlim Sul has the largest number of producing wells in Brazil, 67.

The four fields which also produce 3.6 million cubic meters of natural gas are located between 90-150 kilometers offshore and up to 2,500 meters below the seabed.

Petrobras shares rose more than 4% in Sao Paulo following the announcement.

Reporting by Sabrina Valle, editing by Louise Heavens and Steve Orlofsky


image source

The Australia-China row broke Woodside’s talks to sell shares in the gas project to Chinese companies | Instant News

MELBOURNE (Reuters) – Woodside Petroleum suspended talks to sell a stake in a gas field and liquefied natural gas (LNG) project to Chinese companies several months ago due to a growing diplomatic row between Australia and China, the company chief said on Thursday.

FILE PHOTO: The logo of Woodside Petroleum, Australia’s leading independent oil and gas company, adorns a promotional poster displayed at an investor briefing in Sydney, Australia, 23 May 2018. REUTERS / David Gray

Chief Executive Peter Coleman said he hoped to revive the talks when the fighting died down.

Woodside has been negotiating with China’s national oil companies, including PetroChina Co. 601857.SS, and a second tier company to sell a “modest” stake in the connected Scarborough gas field and the Pluto 2 LNG Train project, which will cover a portion of the gas sale.

“They told us a few months ago that they cannot continue at this time because of the relationship between China and Australia,” said Coleman.

“So we were a little frustrated and disappointed by that. But we hope things will get better and we will be able to bring them back to the standings, ”he said in an interview.

Diplomatic relations with China, Australia’s main trading partner, have deteriorated after Canberra called for an international investigation into the source of the coronavirus.

The damaged relationship has hit exports of Australian coal, barley, wine, timber and lobster, but analysts expect LNG to be immune because Australia is the largest LNG supplier to China.

“The restrictions, so far, do not appear to be affecting Australian LNG exports to China,” research firm EnergyQuest said in a report on Thursday.

EnergyQuest estimates China imported 23.5 million tonnes of Australian LNG in the first 10 months of this year, in line with the first 10 months of last year.

Coleman said the diplomatic spat did not hurt Woodside’s existing partnerships with Chinese companies in Australia and Myanmar, where he said relations were “very good”.

Woodside also wants to sell its recently enlarged stake in the Sangomar oil project in Senegal.

CNOOC China has ties to Woodside’s former Senegal partner, FAR Ltd. FAR.AX, for a project in West Africa. Coleman said he did not see any diplomatic spatter stopping CNOOC from offering for shares in Sangomar.

“No. The Australia-China thing is very specific for investment in Australia. This is not a general problem,” Coleman said.

The collapse of Woodside’s talks with China was first reported by the Australian Financial Review on Wednesday.

Reporting by Sonali Paul; Edited by Christian Schmollinger and Michael Perry


image source

Australia shows that the reality of renewable energy trumps gas expectations: Russell | Instant News

(Opinions expressed here are those of the author, columnist for Reuters.)

FILE PHOTOS: The Fortescue Metals Group logo adorns their headquarters in Perth, Australia, 11 November 2015. REUTERS / David Gray

LAUNCESTON, Australia (Reuters) – Australia is turning into an example of what happens when markets leave policymakers, with renewables attracting investment dollars even as a conservative government clings to its vision of a natural gas future.

Two recent announcements underlined that Australia is moving towards an energy future where renewable energy plays the biggest role, and Prime Minister Scott Morrison’s proposed gas-based recovery may turn into a white elephant.

Fortescue Metal Group FMG.AXThe world’s fourth-largest iron ore miner built from scratch by billionaire Andrew Forrest outlined his plans on Wednesday to become a global renewable energy giant.

Forrest said his company has so far committed A $ 1 billion ($ 731 million) to build a portfolio of renewable energy assets, including green hydrogen and ammonia, and has a target of having an installed energy capacity of 225 gigawatts (GW).

“With scale and innovation, we will be able to increase the supply of green hydrogen and green ammonia to deliver low-cost energy reliably on an industrial scale to customers around the world,” he said at the Fortescue annual meeting.

A second example is the attempt by the state government in Victoria, Australia’s second most populous state and home to Melbourne, to build a 300 megawatt battery as part of an effort to build electricity capacity.

“With climate change resulting in hotter summers, peak electricity demand is increasing. At the same time, the aging coal fired generators in Victoria are becoming increasingly unreliable, resulting in the need for additional capacity to ensure the state’s electricity supply, “the state government said in a statement on its website.

“This additional capacity will lower electricity prices for all Victorians and provide significant net benefits for Victoria, far exceeding project costs,” the government said.

There are two key messages to unlock in that statement.

The first is that coal-fired power plants, which have long been a mainstay of the Victorian, and even Australian electrical systems, are now considered old and unreliable.

Second, installing the battery, which will be the largest in Australia, will result in lower and profitable electricity prices.


This cuts the argument from Morrison, who heads the federal-Liberal-National coalition government, and proponents of the gas-fired recovery that renewable energy cannot provide adequate reliability and will be costly.

The federal government’s gas-fired recovery plan rests on subsidizing the transport of natural gas from remote areas where it is found to major urban centers on Australia’s east coast.

This may also involve the government building its own gas-fired power plant near Sydney’s largest city, given that no private sector generator currently has plans to build such a plant, mainly citing the absence of a lucrative business case.

What Morrison hasn’t elaborated on is the extent to which subsidies are needed to make natural gas “cheap” enough to compete with renewables in the Australian power market.

Given that most natural gas is located in remote basins thousands of kilometers (miles) from major cities on the east coast, it is likely that these subsidies will need to be large, and long-lasting, for the fuel to be competitive.

There’s an old saying that anything can be made to work if there is enough taxpayer subsidies to do it, and it seems like this is the path Morrison is looking to follow.

It is likely to be expensive for taxpayers and worse than if the same money was invested in increasing use of renewable energy, powered by battery storage or pumped hydro, or even powered by gas-fired peak power plants.

But the most damning reaction to Morrison’s gas-based recovery plan has been how markets ignore it and move on.

Edited by Richard Pullin


image source

Fortescue Australia plans a global green energy driver | Instant News

MELBOURNE (Reuters) – Australian mining magnate Andrew Forrest outlined an ambitious plan on Wednesday to build a renewable energy business, aiming to compete with the oil giants for global low-cost green energy.

FILE PHOTOS: The Fortescue Metals Group logo adorns their headquarters in Perth, Australia, 11 November 2015. REUTERS / David Gray

Billionaire Forrest, who transformed the Fortescue Metals Group FMG.AX For two decades as the world’s fourth largest iron ore miner, Fortescue Future Industries (FFI) has signed preliminary deals, as in Papua New Guinea and Africa, and the executive team is looking for other partners.

“We are building a portfolio of renewable assets, energy-producing assets around the world,” Forrest, chairman of Fortescue, said at the company’s annual meeting via video link from Paraguay.

He said Fortescue has so far committed A $ 1 billion ($ 731 million) through 2023 to the project, and is expected to also use off-balance sheet financing.

“With scale and innovation, we will be able to scale up our supply of green hydrogen and green ammonia to deliver low-cost energy reliably on an industrial scale to customers around the world.”

The hydrogen and ammonia fuel cells will be used in transportation and shipping, ammonia in fertilizers and hydrogen also in steel making, he said.

Forrest, whose net worth is estimated at nearly $ 17 billion, said the company’s initial target would be to have an installed energy capacity of 235 gigawatts (GW) but gave no timetable.

Such a target would be “very challenging,” said Gero Farruggio, head of global renewable energy at research firm Rystad Energy Farruggio. Main energy BP BP.L, by comparison, plans to produce 50 GW of renewable energy by 2030.

Despite the coronavirus pandemic, Forrest has traveled the world and said executives have visited 23 countries to select partners and plan to visit 24 more, with investments linked to human rights obligations, he said.

“We will demand the same opportunity. Equal economic outcome for boys and girls as it boosts employment opportunities. “

Fortescue, which is already operating on its own to become carbon neutral by 2040, has accumulated licenses and patents over the past five years to continue its plans.

Forrest’s net worth has tripled over the past year, according to the Australian Financial Review Rich List.

Fortescue posted a record net profit of $ 4.74 billion last year on a mix of high iron ore prices and better margins for its products.

FMG shares ended down 1.8%, compared with a 1.8% gain in the broader market .AXJO.

($ 1 = 1.3689 Australian dollars)

Reporting by Melanie Burton; Edited by Christian Schmollinger and Richard Pullin


image source