S&P Global Commodity Insights Weekly ET News Highlights – February 27, 2023

The US Department of Interior proposed the first-ever offshore wind power lease sale in the Gulf of Mexico Feb. 22, an early step in the process of utilizing the Gulf to help meet the Biden administration's goal of installing 30 GW of offshore wind power by 2030. The proposed lease sale follows the department's approval of two others in offshore New York and offshore California. As the administration seeks to tap more offshore wind resources, investments in the offshore market tripled year-over-year to $9.8 billion in 2022, according to the Feb. 21 US Offshore Wind Market Report. While most investments were driven by lease auction fees, more than $4.4 billion was directed to port infrastructure, supply chain development and transmission.

In Asia Pacific, the India government has issued a list of carbon credit types eligible for cross-border trading under Article 6 of the Paris Agreement, with the aim of attracting foreign capital to costly innovative green technologies. Meanwhile Indonesia's long-awaited national carbon market has been officially launched, covering 42 companies operating 99 coal-fired power plants with installed capacity of 34 GW, while New Zealand's carbon credit price fell to a 14-month low after the government set a new floor price for the instrument. Finally Japanese city gas utilities intend to introduce a framework of "clean gas certificates" for e-methane and biogas in fiscal year 2024-25 as part of accelerating efforts toward carbon neutrality. In an initial phase the certificates are to be issued to clean gas produced domestically.

European carbon prices breached Eur100/mt for the first time ever, a significant milestone and a level that analysts say will drive further decarbonization in the EU. The foundations for the price rally were already laid at the end of 2022, with the EU introducing tighter rules under its Emissions Trading Scheme. An April deadline for annual surrendering of ETS allowances has also driven demand, though the market has decoupled from short-term fundamentals to some extent. In the Middle East, you'd have to say Saudi Arabia's efforts in the area of carbon capture are mixed, from a climate perspective. State oil company Aramco is exploring how best to extract more crude oil by injecting CO2 captured from its Jubail CCS plant into existing wells from 2027. – James Burgess

North America


Bitcoin miners flocking to Texas want to stabilize ERCOT's volatile renewables

Multiple US agencies launch offshore wind power development efforts

US offshore wind investments more than triple in 2022, IRA to boost alternative uses

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US IRA creates alluring business models for carbon negative hydrogen: researcher

Texas grid's uncertainty in weather, economics, politics keep experts ‘up at night'

Asia Pacific


India's cross-border carbon credit list focused on innovative green technologies

Japanese gas utilities to introduce 'clean gas certificates' in FY 2024-25: JGA

Australia's electricity market needs urgent investment over next decade, says operator

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Indonesia officially launches carbon trading for power sector

New Zealand carbon price falls to over one-year low on weak policy support

Japan's MOL, Air Water to study liquefied bio-methane potential for bunkering



Developing economies hit hardest by EU's carbon border tax

European carbon prices breach Eur100/mtCO2e mark, trading at record-high

Saudi Aramco identifying fields for EOR with CO2 injection from Jubail CCS plant

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Uniper warns of green hydrogen market distortion risk from proposed EC rules

TES, Energie 360 partner on renewable natural gas plans in Switzerland

Charts of the week:

Source: S&P Global Commodity Insights

Quotes of the week:

"If we want more and more renewable energy to be built in this country we need to provide a load that allows [developers] to properly monetize that generation capacity. Bitcoin mining is the perfect load for renewable energy" -- Fred Thiel, CEO of Marathon Digital Holdings

India's Article 6 carbon credit technology definitions "will help the expansion of the carbon market as a whole and bring indirect positive impact on the VCM" -- Samrat Sengupta, EKI Energy Services

Price of the week:


The price of New Zealand Units fell to a 14-month low on Feb. 23, having hit NZ$88.50/mtCO2e in November. In December the government set a floor price for NZUs at NZ$33.06/mtCO2e.


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S&P Global Commodity Insights Weekly ET News Highlights – Apr 15, 2024

Moment of truth looms for European green hydrogen investments Energy transition highlights: Our editors and analysts bring you the biggest stories from the industry this week, from renewables to storage to carbon prices. Time is running out to get on track with Europe's ambitious 2030 hydrogen production targets as developers due to take final investment decisions battle macroeconomic headwinds, industry representatives said at the Reuters Hydrogen conference in Amsterdam. Recent years have seen a multitude of project announcements, pre-front end engineering design studies, FEED studies and preliminary investments, though FIDs have been scarce. “There are some board rooms that are getting a little bit impatient by now,” Rabobank Executive Director Hyung-ja de Zeeuw said April 9. “If you think that we’ve only got six years left until 2030, I guess 2024 is going to be a key year for clean hydrogen projects here in Europe.” Around 4% of announced clean hydrogen projects in Europe have taken FIDs, according to Hydrogen Council Director Policy and Partnerships Daria Nochevnik. Price of the week: Eur4.50/kg The price ceiling for the first pilot auction under the European Hydrogen Bank mechanism. Results will be announced April 30, with the fund expected to clear well below the cap. Editor’s pick: Premium and free content SPGlobal.com Biden's carbon capture plans inch closer to reality amid uptick in well permits The Biden administration's ambition to capture carbon dioxide on a large scale and inject it back into the ground may have seemed daunting one year ago with only two CO2 storage facilities in the US. But a boost in federal spending on the technology in 2021 and 2022 may finally be bearing fruit after a sudden uptick in permits, according to industry watchers. Australia to unveil new plan for clean energy, green manufacturing: PM Australia will unveil a new plan in 2024 to support clean energy and green manufacturing projects to compete better against other nations’ subsidy schemes such as the US’ Inflation Reduction Act to draw investments in clean fuels, Prime Minister Anthony Albanese said, in what is being seeing as a pointer to big new fund allocations coming up. Escalating geopolitical tensions may give carbon market a key role to play: GenZero Carbon markets will be most critical in a scenario where global climate action is fragmented and geopolitical tensions are at their highest, as opposed to a scenario of full climate cooperation where carbon markets are least needed, Singapore’s state-owned decarbonization investment platform GenZero said. Platts Connect European Hydrogen Bank pilot auction to clear well below Eur4.50/kg price ceiling The first pilot auction for green hydrogen production under the EU’s European Hydrogen Bank facility will clear comfortably below the price ceiling of Eur4.50/kg ($4.89/kg), Innovation Fund policy officer Johanna Schiele said April 10. The results of the first Eur800 million auction will be released on April 30, Schiele said. Hydrogen market developing in New York; regulatory, power market challenges remain Using hydrogen to generate power in New York does not currently add up economically, but there is reason for optimism as the technology to do so will likely be needed in some capacity to help meet state decarbonization goals, experts said. China’s CEIC starts construction of 100,000 mt/year capacity green ammonia project China Energy Investment Corporation, one of the country’s largest state-owned energy companies, has started construction of its renewable ammonia project in Cangzhou in the eastern province of Hebei with a planned annual production capacity of 100,000 mt, likely to be completed by Q4 2025.


S&P Global Commodity Insights Weekly ET News Highlights – Apr 8, 2024

US Solar eclipse expected to significantly reduce solar power output in several markets Energy transition highlights: Our editors and analysts bring together everything you need to know about the industry this week, from renewables to storage to carbon prices. A total solar eclipse will cross North America on April 8, passing over Mexico, the US and Canada, causing significant reductions in solar power plant output with the greatest impacts occurring in the Electric Reliability Council of Texas and PJM Interconnection power markets. An annular eclipse obscures most of the sun except for a halo of sunlight around the edge of the moon’s dark disc, while during a total eclipse the entirety of the sun will be blocked by the moon. In Dallas, the partial eclipse will begin at 12:23 pm CT, with maximum totality occurring at 1:42 pm and the partial eclipse will end at 3:02 pm, according to the National Aeronautics and Space Administration. Maximum totality will reach Cleveland at 3:15 pm ET, Buffalo at 3:20 pm, and Caribou, Maine at 3:33 pm. Solar power production in ERCOT is expected to drop to 3 GW generated during the hour of totality versus the roughly 18 GW that is usually generated during that same time of day on a clear sky day in April, according to Maxar Technologies, an advanced forecasting company that provides data to US power grid operators. As the moon’s shadow moves north through the PJM footprint, solar power output is expected to drop to around 1.6 GW during the hour of totality compared with roughly 7GW on a clear sky day in April, a Maxar spokesperson said in an email. Even under cloudy skies, PJM is preparing for temporary losses of at least 80% to 85% of the production from the approximately 8.2 GW of grid-connected solar or metered solar resources that are part of the PJM solar generation fleet in early April, the grid operator said in a media release. Price of the week: On the Intercontinental Exchange during April 5 trading, ERCOT North Hub day-ahead on-peak rose about $17.50 from its previous settlement to $27/MWh and its corresponding real-time peak contract jumped about $19 to around $29.50/MWh for April 8 delivery. Editor’s pick: Premium and free content SPGlobal.com INTERVIEW: Building a credible carbon market takes time; 'bear with us', says ICVCM A step-by-step approach to informing the market about which project methodologies meet high-quality carbon credit thresholds is considered the best way forward given the high number of methodologies involved, the Integrity Council for the Voluntary Carbon Market said. The ICVCM confirmed that carbon credit programs from American Carbon Registry, Climate Action Reserve and Gold Standard had met its high-quality Core Carbon Principle labels. China kicks off consultation on expanding compliance carbon market to cement sector China has kicked off public consultation on drafting guidelines around emissions accounting and verification for the country's cement sector, laying the foundation for its inclusion in the national compliance carbon market, the Ministry of Ecology and Environment said in a notice late April 3. Thailand's Bangchak, Japan's Sumitomo join forces for green UCO-to-SAF supply chain Thailand-based energy firm Bangchak and Japan's Sumitomo Corp. have signed a cooperative framework agreement for the procurement of used cooking oil and the sale of sustainable aviation fuel, the companies said in an April 3 joint release. Platts Connect Denmark paves way for hydrogen pipeline exporting surplus wind to Germany Denmark is paving the way for state financing for the Jutland hydrogen backbone pipeline to export surplus wind power to Germany, the energy ministry said. Political parties agreed five framework conditions that need to be met for grid operator Energinet to go-ahead with the project including a 1.4-GW or 44% of total capacity booking requirement by private companies. China’s domestic renewable energy certificate trade volume up tenfold in 2023 The annual trading volume of China’s domestic renewable energy certificates, called Green Electricity Certificates, increased almost tenfold to 96 million certificates in 2023, a record high for a year, from 9.69 million certificates in 2022, data from the country’s GEC trading platform showed. Fortescue misses FID date for key renewable hydrogen project under Genex PPA Fortescue Future Industry has missed the deadline for final investment decision (FID) for a key renewable hydrogen/ammonia project in Australia, thus failing to meet a buyer’s condition in a Power Purchase Agreement (PPA) with Genex Power, Genex said April 2.


Infographic: The impact of the total solar eclipse on US power generation

A total solar eclipse will cross North America on April 8, resulting in heavily reduced solar power plant output. It will differ from an annular eclipse in that the sun will be entirely blocked by the moon, rather than partially blocked with a visible halo of sunlight. Power markets in Texas and the Mid-Atlantic region are expected to see the biggest impact in solar-powered generation. Related feature: US solar eclipse expected to significantly reduce solar power output in several markets (subscriber content) Click here for the full-size infographic


Infographic: Grid-forming inverter technology to boost greener power systems

With rapid penetration of solar photovoltaic, wind and battery energy storage, power systems are shifting away from conventional synchronous generators towards power electronics, i.e., inverters, which may lead to risks of grid instability. Grid-forming inverter technology has been developed to support grid operation by providing similar capabilities as synchronous generators. Related report: Grid-forming technology report, 2024 (subscriber content) See the full size infographic here