The New Alliance Attempting To Accelerate Hydrogen-Powered Aviation

By Tsvetana Paraskova - Sep 05, 2023

Major aviation and renewable energy firms, including Rolls-Royce, Airbus, EasyJet, and Ørsted, announced on Tuesday the creation of the Hydrogen in Aviation (HIA) alliance in the UK to propose a pathway to achieving hydrogen-powered aviation.

The alliance says that the Government needs to be focused on three key areas—supporting the construction of the infrastructure needed for the UK to be a global leader, ensuring the aviation regulatory regime is hydrogen-ready, and transforming the funding for hydrogen aviation R&D support into a 10-year program.

According to the alliance, which also comprises GKN Aerospace and Bristol Airport, hydrogen is a very promising alternative fuel option for short-haul aviation.

Airbus, for example, is developing new hydrogen-powered aircraft with the aim of entering commercial service from 2035. Aircraft engine manufacturer Rolls-Royce has already proven that hydrogen could power a jet engine following successful ground tests in 2022.

“We must work together to deliver the radical solutions required for a hard to abate industry like aviation so we can protect and maximise the benefits that it brings to the UK economy and society and that we know British consumers want to be preserved,” said Johan Lundgren, CEO of easyJet and first Chair of HIA.

The alliance looks forward to working with the UK Government to ensure that the right funding and regulatory and policy changes are implemented to accelerate the delivery of zero-carbon aviation, Lundgren added.

Grazia Vittadini, Chief Technology Officer at Rolls-Royce, commented,

“Our contribution to HIA is the capability and experience we have in pioneering new technologies and solutions - we have already tested a modern aero engine on green hydrogen and we strongly believe it is one of the solutions that will help decarbonise aviation in the mid to long-term.”

Meanwhile, a growing number of airlines are betting on increased use of sustainable aviation fuel (SAF) to reduce their carbon footprint in a sector where emissions are hard to abate. Despite numerous pledges from airlines and government support for SAF production, the alternative of the petroleum-based jet fuel faces challenges in supply, costs, and feedstock, analysts say.

By Tsvetana Paraskova for Oilprice.com

G20 To Pursue More Renewables And Carbon Capture(WASTE OF $$$)

By Tsvetana Paraskova - Sep 06, 2023

The G20 group plans to commit to tripling renewable capacity by 2030 but also give more room for fossil fuel development by seeking increased use of carbon capture technology, sources with knowledge of the talks have told Bloomberg.

At the G20 summit in India, the group of 20 nations, which includes top oil and gas producers the United States, Saudi Arabia, and Russia, as well as major energy importers such as China, India, Japan, and South Korea, plans to call for increased efforts to deploy carbon capture and other technologies that would reduce emissions from oil, natural gas, and coal, Bloomberg’s anonymous sources said.

During a ministerial meeting in July, Saudi Arabia and Russia blocked a planned pledge to triple renewable energy capacity by 2030.

The Saudis and Russia announced on Tuesday they would extend their respective ongoing oil supply cuts through the end of the year, seeking to support higher oil prices.

If a commitment to renewables is made at the summit in India, it could be a boost to the host nation for spearheading such a pledge, and to the United Arab Emirates (UAE), a major oil producer and exporter that is also hosting this year’s climate summit COP28.

In the G20, coal-related emissions of carbon dioxide have gone up by 9% since 2015 on a per-capita basis, climate change think tank Ember has said.

Despite emissions reductions in recent years, Australia and South Korea emit more than three times the global average in coal-related CO2 emissions. China was third.

“The G20 accounts for 80% of global emissions. Within the group, however, an individual’s coal emissions in 2022 were notably higher, with per capita figures reaching 1.6 tonnes of carbon dioxide, compared to the global average of 1.1 tonnes of carbon dioxide,” Ember wrote.

Separately, G20 countries spent a record $1.4 trillion since COP26 in 2021 through 2022 on coal, oil and gas, according to think tank the International Institute for Sustainable Development (IISD).

By Tsvetana Paraskova for Oilprice.com

The G20’s Coal-Related Emissions Have Climbed 9% Since 2015

By Charles Kennedy - Sep 05, 2023,

Coal-related emissions of carbon dioxide in the G20 have gone up by 9% since 2015 on a per-capita basis, climate change think tank Ember has said.

Surprisingly, it is not China that accounts for the biggest share of these emissions on a per capita basis. According to Ember’s figures, it is Australia and South Korea that are the biggest per-capita emitters of carbon dioxide from coal.

Still, the think tank acknowledges that multiple G20 members including Australia and South Korea saw a decline in their coal-related emissions from 2015-2022. Despite these emissions reductions, Australia and South Korea emit more than three times the global average in coal-related CO2 emissions. China was third.

“The G20 accounts for 80% of global emissions. Within the group, however, an individual’s coal emissions in 2022 were notably higher, with per capita figures reaching 1.6 tonnes of carbon dioxide, compared to the global average of 1.1 tonnes of carbon dioxide,” Ember wrote.

The think tank then went on to call on the G20 to put more effort into decarbonization in order for the world to hit Paris Agreement targets for a net-zero energy system by 2050.

Experience seems to suggest, however, that decarbonization cannot happen fast, at least not without creating some new risks. Australia is again a case in point. The country’s Energy Market Operator warned last month that two states risk blackouts this summer because of what its chief executive phrased as “coal-fired generation reliability is at historic lows.”

Coal-fired generation reliability can only suffer from two things: lack of maintenance and a shutdown of capacity, which is what all transition-dedicated governments have been doing, including the Australian one.

Linked to that was the news that New South Wales is now considering extending the life of its biggest coal power plant, driven by concern about electricity prices and the slow progress in wind and solar capacity additions.

 

U.S. Solar Capacity Additions To Hit A Record High In 2023

By Charles Kennedy - Sep 07, 2023

The solar industry in the United States expects to install a record-high 32 gigawatts (GW) of new capacity this year, with additions surging by 52% from 2022, when policy-driven constraints held back projects, the Solar Energy Industries Association (SEIA) and Wood Mackenzie said in their latest quarterly report on Thursday.

The challenges with supply chains due to the COVID-related chaos and restrictive trade policies have started to fade, while the Inflation Reduction Act (IRA) is beginning to yield results, the U.S. Solar Market Insight Q3 2023 report found.

Total operating solar capacity in the U.S. is expected to rise from 153 GW today to 375 GW by 2028, Wood Mackenzie predicts.

In the second quarter of 2023, the U.S. solar industry installed 5.6 gigawatts-direct current (GWdc) of capacity, up by 20% year-over-year and an 8% decrease from the first quarter of 2023, the report showed.

In Q1 2023, U.S. solar system installations surged by 47% on the year.

This year, volumes are set to grow year-over-year, reversing the contraction in 2022, WoodMac and SEIA said in today’s report.

Early this year, the 2022 year-in-review report by WoodMac and SEIA said that the U.S. solar market is expected to recover this year from the policy-driven supply constraints that weighed on the sector in 2022.

Last year, new solar capacity additions in the United States fell by 16% from 2021 for a total of 20.2 GW. The decline in 2022 installations was primarily driven by supply chain uncertainties after the U.S. launched an investigation into whether U.S. imports of panels completed in four Southeast Asian countries - using parts and components from China - are circumventing the antidumping duty and countervailing duty orders on solar cells and modules from China. The U.S. Customs and Border Protection (CBP) has also detained solar equipment from China over new legislation against forced labor, which further stifled U.S. industry growth in 2022.

With the IRA provisions and supply-chain challenges now starting to abate, the solar market will return to growth this year, with additions expected at a record 32 GW.

“Announcements for domestic module manufacturing have exploded, promising more stable solar module supply in the future,” said Michelle Davis, Head of Global Solar at Wood Mackenzie.

 

Marathon Shuts Gasoline Unit At Texas Refinery After Fire

By Charles Kennedy - Sep 08, 2023

Marathon Petroleum shut the gasoline-making unit of its huge Galveston Bay refinery in Texas, the fourth-largest in the U.S. by capacity, after a fire broke out on Thursday night, sources with knowledge of the situation told Reuters.

Marathon Petroleum’s Galveston Bay refinery in Texas City, Texas, has a total crude processing capacity of 593,000 barrels per calendar day (bpcd). The refinery can process a wide variety of crude oils into gasoline, distillates, natural gas liquids and petrochemicals, heavy fuel oil, and propane.

The fire broke out in the fluidic catalytic cracker (FCC) which produces gasoline and has a capacity of 140,000 bpd. The fire erupted in the regenerator of the FCC, Reuters’ sources said, adding that there were no injuries reported after the incident.  

Earlier this year, a worker at Marathon Petroleum died and two others were taken to hospital with injuries after a fire broke out in the same refinery.

The shutdown of a gasoline unit at one of the largest U.S. refineries comes at the end of the summer driving season.

However, gasoline prices are expected to spike in the coming days, according to Patrick De Haan, head of petroleum analysis at GasBuddy.

U.S. gasoline prices are headed higher in the nation’s Corn Belt, and could rise by as much as $1 per gallon at some gas stations, De Haan said on Thursday.

The huge spike in that single area could send the national average a few cents higher, De Haan added—and pump prices have already hit the highest seasonal level in more than a decade.

Strong demand and a series of refinery outages have contributed to the recent rise in gasoline prices, while a tightening global oil market has also been pushing crude oil prices up.

The current average price for a gallon of gasoline in the United States is $3.808, up from $3.751 at the same time last year, according to AAA data from early on Friday.    

WAIT,WHAT?!

Russia Ships First Oil To Brazil

Brazil has aspirations to become the world’s fourth-largest oil producer.

By Julianne Geiger - Sep 08, 2023

Russia—after suffering Western oil embargos and price caps on its oil and oil products, has shipped its first crude oil cargo to Brazil in its quest to find more outlets for its fossil fuels.

The Aframax tanker Stratos Aurora is now less than 500 miles off the shore of Brazil, according to Bloomberg ship tracking data, carrying 650,000 barrels of Varandey crude oil from the Murmansk port.

Russian oil hasn’t been shipped to Brazil since 2016, but sanctions on Russian crude oil, as well as the price cap, have made it difficult for the country to find outlets. 

India has been the top buyer of Russia’s Urals grade for months, even as the discount for Russian crude to Brent shrunk to just $5 per barrel or less. Russia’s September loadings bound for India are expected to be less, as Indian refiners now claim the discounts simply aren’t worth the high volumes they’ve been taking. Previously, India was getting a $30 per barrel discount. Russia has counted on India—and to a significant but lesser extent, China—to soak up most of the excess crude oil it is no longer shipping to countries abiding by the price caps and embargos following Russia’s invasion of Ukraine.

Brazil is part of the BRICs alliance, which also includes India and China—a group of emerging market countries hoping to strengthen ties and cooperate regarding trade and economic activities.

Varandey is a light, sweet, crude blend, different from the grades that have been mostly going to India and China.

Brazil is a major oil producer and holds large pre-salt reserves, and has aspirations to become the world’s fourth-largest oil producer. It currently pumps an average of 3.1 million bpd.

By Julianne Geiger for Oilprice.com

 

Germany Passes Modified Fossil-Fuel Heating Law

By Julianne Geiger - Sep 08, 2023

Germany’s lower house of parliament managed to pass a controversial bill that would ban fossil-fuel heating—but the end result was a watered-down version of the bill that will interfere with the country’s ability to meet the industry’s 2030 climate goals, according to Germany’s economy ministry.

Germany has a goal of being climate neutral by 2045, and the bill is considered instrumental in reaching that goal. Included in the bill are provisions that require certain heating systems—those installed in new developments in areas relying on municipal heating—to run on at least 65% renewable energy starting next year. Property owners of existing buildings will have until 2028 to implement the changes, and gas boilers will still be allowed if they are of the type that can be later converted to hydrogen. 

The pushback against the original bill was mainly due to fears that the measures would come with high costs.

The bill passed 399 in favor of the fossil fuel heating ban and 275 against.

The bill now includes the caveat that if a boiler exchange is combined with other renovations, the government will subsidize the cost of the new heating system, providing as much as $96,404 per year. The bill originally called for subsidies that were two-thirds of that. The money for the subsidies will come from its Climate and Transformation Fund.

But not everyone is satisfied with the watered down version, which some environmental groups have argued is now ineffective.

Germany admitted that this version of the bill doesn’t get Germany to its 2030 goal like the previous version did, which called for the green switch earlier than the more palatable version that passed.

By Julianne Geiger for Oilprice.com