Japan Launches World’s Second Osmotic Power Plant in Fukuoka

By Felicity Bradstock - Sep 03, 2025

• Japan’s new osmotic power plant in Fukuoka can generate 880,000 kWh annually - enough to power 220 households or support a desalination facility.
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• Osmotic energy, produced by mixing fresh and salt water across a membrane, offers round-the-clock renewable power but faces challenges in scaling due to energy losses.
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• The project complements Japan’s broader push into hydropower and tidal energy, underscoring its strategy to diversify beyond solar and wind for a resilient clean energy mix.
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Japan has opened the world’s second osmotic power plant, using an age-old method to produce clean energy. If successful, it could establish the blueprint for other countries to establish their own facilities and gradually develop the largely unheard-of industry. This shows promise for companies looking to decarbonise operations, as investment in alternative forms of clean energy could help to cut emissions. 

Japan launched its plant in August in the south-western city of Fukuoka. The facility is expected to produce roughly 880,000 kilowatt hours of electricity each year, which is enough to help power the associated desalination plant, which supplies fresh water to the city and surrounding areas. It produces enough energy to power the equivalent of 220 Japanese households. While the plant is relatively small compared to alternative energy-producing facilities, it could be scaled up in the future if successful.

The plant uses the osmosis method, a process by which molecules of a solvent pass through a semipermeable membrane from a less concentrated solution into a more concentrated one, which balances the concentration on both sides. Salt water and fresh water are put on either side of a membrane, with the seawater being slightly pressurised. As water flows through the membrane to the saltier side, it boosts the volume of pressurised solution to be harnessed to produce energy.

While wind and solar power production can only take place when the sun is shining or the wind is blowing, osmotic technology can be used to produce energy at all hours of the day and night, requiring just the mix of fresh and salt water to work. In Japan’s new plant, fresh water or treated wastewater is placed on one side of a membrane, and seawater is on the other side. The seawater gradually increases in pressure and decreases in salinity, allowing excess water to run through a turbine that is connected to a generator to produce power.

This is only the second Osmotic Power Plant globally, the other of which was developed in Mariager, Denmark, in 2023 by the venture company SaltPower. The Fukuoka plant is bigger than that of Mariager, although they use similar methods. Norway, South Korea, Spain, and Qatar have also trialled the technology.

While it shows promise on a small scale, scaling up the technology is more complicated, as a significant quantity of energy is lost as the water is pumped into the power plant and as it flows through the membranes. “While energy is released when the salt water is mixed with fresh water, a lot of energy is lost in pumping the two streams into the power plant and from the frictional loss across the membranes. This means that the net energy that can be gained is small,” Sandra Kentish, a professor from the University of Melbourne, explained.

Nevertheless, the new plant shows how investment in alternative clean energy techniques can provide power, particularly for small-scale facilities that might otherwise rely on fossil fuels.

The project builds on Japan’s existing expertise in waterpower, with several hydroelectric and tidal power plants across the country. In 2024, hydropower contributed roughly 14 percent of Japan’s total power generation capacity, while in 2023 it accounted for 8 percent of its total power generation. Japan plans to expand its hydropower sector in the coming decades in line with plans for a green transition, with a CAGR of around 0.01 percent between 2023 and 2035.

In March, the governments of Indonesia and Japan announced plans to partner on the development of Southeast Asia’s largest hydropower plant in Indonesia, with the signing of a letter of intent. The project is expected to cost $17.8 billion and will help support regional decarbonisation aims, as well as strengthen energy cooperation between the two countries. Japan will use its industry expertise to advise and could gain valuable experience to further develop its own hydropower sector.

Earlier this year, the U.K.-based tidal energy company Proteus Marine Renewables (PMR) installed a 1.1 MW tidal turbine in Japan’s Naru Strait, which is expected to help decarbonise the electricity supply of the Goto Islands. This followed a successful 2021 pilot project in the region.

Philip Archer, the Managing Director of Proteus Operations Japan, stated, “The result reinforces tidal energy’s potential as a dependable renewable source in Japan. Our next immediate focus is the commissioning of the turbine, Japan’s first ever MW-scale grid-connected tidal system, and the subsequent testing and accreditation phase.”

While several of Japan’s water-related energy-producing operations are in the nascent stage of development, they show that the East Asian country is dedicated to investing in alternative clean energy projects and trialling new technologies. This could help Japan to develop a highly diversified clean energy mix, rather than relying on conventional renewable energy sources, such as solar and wind. 

By Felicity Bradstock for Oilprice.com

Iraq and BP Forge $25 Billion Kirkuk Oil Deal

By Michael Kern - Sep 03, 2025

• BP engineers have started initial assessments at four strategic oilfields in Kirkuk, Iraq, as part of a $25-billion agreement to redevelop the region's oil and gas infrastructure
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• The deal, finalized in March, aims to boost production and improve efficiencies in oil and gas extraction, with an initial phase targeting over 3 billion barrels of oil equivalent.
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• This agreement aligns with Iraq's plan to raise its oil production capacity and is expected to increase Kirkuk's output by 50,000 to 100,000 barrels per day in the coming years.
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BP engineers have arrived in Kirkuk and have launched initial assessments at four strategic oilfields in the northern Iraqi province as part of the supermajor’s $25-billion deal with Iraq to redevelop Kirkuk fields, Iraqi industry sources told Shafaq News on Wednesday. 

BP’s experts have started work to develop the infrastructure and production facilities of Iraq’s state-owned North Oil Company (NOC) and North Gas Company (NGC) in Kirkuk, sources from both companies told the Iraqi news outlet.   

The assessment process at the Kirkuk fields will be followed by a long-term development plan aimed at boosting production and improving efficiencies in oil and gas extraction, according to the Iraqi sources. 

In March this year, BP and Iraq finalized the agreement, which entails total investment of an estimated $25 billion, after the federal Iraqi government ratified the contract. 

The redevelopment of several giant oil fields in Kirkuk will be carried out under a contract between NOC, NGC, and BP and includes the rehabilitation and redevelopment of the fields, spanning oil, gas, power, and water with potential for investment in exploration.

The agreement is for an initial phase that includes oil and gas production of more than 3 billion barrels of oil equivalent, BP has said. It includes the Baba and Avanah domes of the Kirkuk oil field and three adjacent fields in Federal Iraq – Bai Hassan, Jambur and Khabbaz – all of which are currently operated by the NOC. 

The wider resource opportunity across the contract and surrounding area is believed to include up to 20 billion barrels of oil equivalent, according to the British supermajor. 

“This is an enormous opportunity as we grow bp’s oil and gas business and fully aligned with our strategy of strengthening our upstream portfolio,” BP’s chief executive officer Murray Auchincloss said in March. 

For Iraq, the agreement is aligned with its plan to raise its oil production capacity to above 6 million bpd by 2029, up from about 4.5 million bpd now. 

Production from Kirkuk oilfields is currently between 285,000 bpd and 330,000 bpd, most of which is for domestic consumption, with limited exports to Jordan, per official Iraqi data quoted by Shafaq News. The deal with BP is expected to raise Kirkuk production by between 50,000 bpd and 100,000 bpd in the coming years.  

By Michael Kern for Oilprice.com

 

Orsted, Skyborn Sue U.S. Over Halt to 704-MW Revolution Wind

By Charles Kennedy - Sep 04, 2025

Offshore wind developer Ørsted and joint-venture partner Skyborn Renewables filed suit in Washington, D.C., on Thursday, challenging the Interior Department’s stop-work order that froze construction on the 704-MW Revolution Wind project serving Rhode Island and Connecticut, Reuters reported. The complaint argues the order is unlawful and unsupported by evidence after months of installation work and long-standing federal and state approvals.

Revolution Wind is about 80% complete, with all offshore foundations set and 45 of 65 turbines installed, according to the filing. The developers say they have spent roughly $5 billion and face as much as $1 billion in additional costs if the shutdown persists, including risk of losing scarce construction vessels and a delay of at least a year. The project has 20-year offtake deals, including 400 MW to Rhode Island and 304 MW to Connecticut, which is enough to supply more than 350,000 homes.

The stop-work order, issued last month by the Bureau of Ocean Energy Management, cited national security concerns. Interior declined to comment on the lawsuit. The companies say the order arrived despite earlier federal clearances and would jeopardize schedules and financing for a project slated to start deliveries next year.

The legal move follows Ørsted’s plan to raise about 60 billion Danish crowns (~$9.4 billion) via a rights issue to fortify its balance sheet after U.S. setbacks. On Monday, Norwegian major Equinor said it would participate, signaling continued backing from a key shareholder.

Investors had already reacted to the halt, with Ørsted shares tumbling after BOEM’s order as the company paused offshore work. Shares in Ørsted are trading down nearly 32% year-to-date. Revolution Wind, a 50/50 Ørsted-Skyborn venture, is the first U.S. offshore wind build halted this far into construction. If installation vessels are redeployed, the developers warn the schedule could slip beyond a year, with the project at risk of cancellation.

By Charles Kennedy for Oilprice.com

India–UAE LNG Pact Becomes Pillar of U.S. Counter-China Strategy

By Simon Watkins - Sep 04, 2025

• Washington is cultivating an India–UAE energy axis to counter China/Russia.
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• India’s fast-growing demand and post-Galwan tilt make it a key counterweight to Beijing.
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• The deal dovetails with the Abraham Accords track and U.S. efforts to reassert influence.

U.S. President Donald Trump knew back in his first term in office that there was a high probability that Iran could not be reasoned out of its nuclear ambitions nor sanctioned out of them either. It was clear to him, according to senior legal and security sources exclusively spoken to at the time by OilPrice.com, that direct action would have to be taken at some point to remove the most immediately threatening facilities related to its nuclear activities. And it was also apparent that Israel – which faced literal extinction from such a threat – was increasingly prepared to act alone to neutralise Iran’s burgeoning nuclear capabilities. “It was also understood [by Trump and his key advisers] that any sustained direct attacks by Israel on Iran could spark a broader conflict across the entire Middle East, which could eventually draw China and Russia in direct opposition to the U.S.,” a senior Washington-based legal source reiterated to OilPrice.com last week. “This was where the idea of leveraging the U.A.E.-India relationship came in,” he added. Recent weeks have seen further major developments in this context, with last week seeing a major new landmark announcement between Abu Dhabi and New Delhi.

The announcement specifically relates to energy but, as is frequently the case in this sector, has much broader geopolitical implications. The deal announced was a 15-year Sales and Purchase Agreement (SPA) between the Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation (IOC) for the supply of 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG) sourced mainly from ADNOC’s Ruwais LNG project. The terms of the SPA allow for ADNOC’s LNG cargoes to be delivered to any port across India, as directed by IOC, India’s largest integrated and diversified energy company. With further expansion of business between the two firms, IOC is set to become ADNOC’s largest LNG customer by 2029, according to comments from both sides. It will have a total offtake of 2.2 mtpa – comprising 1.2 mtpa from ADNOC’s Das Island operations and 1 mtpa from the Ruwais LNG project by that time. This latest SPA is part of the broader Comprehensive Economic Partnership Agreement signed between the U.A.E. and India in 2022, which aims for bigger and deeper bilateral trade and energy cooperation. As highlighted by ADNOC senior vice president, Rashid Khalfan Al Mazrouei: “This long-term agreement with Indian Oil underscores the robust energy relations between the UAE and India. Through our world-class Ruwais LNG Project, ADNOC will continue to provide more lower-carbon gas to meet growing global demand, fuel industries and power homes.”Related: US Oil Drilling Activity Continues to Slow

This is precisely what the U.S. wanted back in Trump’s first presidential term. Those around him knew that China especially, but also Russia, had been dramatically expanding their influence across the Middle East since the U.S.’s unilateral withdrawal from the Joint Comprehensive Plan of Action (JCPOA, or colloquially ‘the nuclear deal’) with Iran in May 2018. Although Trump’s reasoning for the exit had been sound – that Iran was using sanctions relief to bolster its finances to expedite its nuclear ambitions – the practical result had left Tehran effectively unsupervised. This turbocharged its ability to spread its influence across the region, bolstered by its position as leader of the ‘Shia Crescent of Power’ and by strong support from Beijing and Moscow, as analysed in full in my latest book on the new global oil market order. Washington’s antidote to this loss of U.S. influence in the Middle East – and to prevent potentially disastrous attacks on Iran directly by Israel – was the U.A.E.-India plan.

There were – and still are – two main elements to this strategy. The first was to establish India as a true counterbalance to China’s ever-growing power across the Asia-Pacific region. A boon to this notion had come after 15 June 2020 when Indian and Chinese troops fought running battles in the Galwan Valley – the first deadly military confrontation between the two countries since 1975. Washington believed this and similar skirmishes breaking out across the disputed territory might mark a new push back strategy from India against China’s policy of seeking to increase its economic and military alliances through the ‘Belt and Road Initiative’ (BRI). The U.S. believed that this military assertiveness might also be echoed in India’s economic desire to finally make substantive progress on its ‘Neighbourhood First’ policy as an alternative to the BRI programme. Crucially in this context – and additionally highly propitious for Washington -- was that India’s rapid economic development was expected to drive a huge expansion in its demand for oil and gas. Indeed, at the time, the International Energy Agency predicted that India would make up the biggest share of energy demand growth at 25% over the next two decades. Washington also knew that, peculiarly to many perhaps, the U.A.E. had a uniquely close relationship with India in the field of energy, as also detailed in my latest book.

The U.A.E was the second main element to the U.S. strategy. Occupying a key geographical position next to Saudi Arabia and Oman with coastlines in both the Persian Gulf and the Gulf of Oman it makes an ideal energy hub between the West and the East. This is further supported further by its plethora of ports and storage facilities spread across the seven constituent emirates of Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. This was also why China had made the U.A.E. a focus of the Middle Eastern section of its multi-generational power-grab project, the BRI, when it was launched in 2013 by President Xi Jinping. The U.A.E.’s positioning also neatly augmented the enormous influence Beijing was able to exert over what happens in the Persian Gulf and Strait of Hormuz through its ‘Iran-China 25-Year Comprehensive Cooperation Agreement’, first revealed anywhere in the world in my 3 September 2019 article and also analysed in full in my latest book on the new global oil market order. Through other similar deals in the region, China also has a hold over the Bab al-Mandab Strait, through which crude oil is shipped upwards through the Red Sea towards the Suez Canal before moving into the Mediterranean and then westwards. For its part, the  U.A.E. was extremely keen to boost its oil and gas revenues after the damage done to its economy – alongside those of all other Middle Eastern energy exporters – by the Saudi Arabia-led Oil Price War from 2014 to 2016.

Moreover, there was also the existing strong energy relationship between India and the U.A.E. to use as a basis for this expansion. Following the awarding of the U.A.E.’s Onshore Block 1 to India’s Bharat Petroleum Corporation in May 2019, the chief executive officer of ADNOC, Sultan Ahmed Al Jaber, highlighted that he looked forward to exploring partnerships between Indian firms and the U.A.E. He added that he wanted this to include expanding the commercial scale and scope of India’s vitally-important Strategic Petroleum Reserves (SPR) partnership. This was in line with ADNOC already being the only overseas company allowed to store crude oil in the SPR. India has also allowed ADNOC to export such oil to allow it greater operational flexibility. The slew of deals being planned at that time with Indian companies in the U.A.E. was underlined by al-Jabber at the end of 2020 when he said: “Today, Indian companies represent some of Abu Dhabi’s key concession and exploration partners… [and…] As we continue to work together, I see significant new opportunities for enhanced partnerships, particularly across our downstream portfolio.” He added: “We have launched an ambitious plan to expand our chemicals, petrochemicals, derivatives and industrial base in Abu Dhabi and I look forward to exploring partnerships with even more Indian companies across our hydrocarbon value chain.”

Washington’s U.A.E.-India plan became clearer when it was announced on 13 August 2020 that the emirate had signed a deal to normalise relations with Israel in a deal that had been brokered by the US. This coincided with the Israeli Prime Minister Benjamin Netanyahu’s announcement that he was suspending plans to annex more areas of the West Bank that Israel had seized during the 1967 Six-Day War. It marked the first of the Middle East’s ‘Abraham Accords’ programme that emerged in Trump’s first presidency, that were an attempt for the U.S. to re-project its power across the Middle East. Trump made it clear during his campaign for his second term that he favoured a resumption of the Abraham Accords, including one between Israel and Saudi Arabia. Despite several reports to the contrary, the U.A.E. never cancelled its own such deal with Israel despite the fallout from the Israel-Hamas War. Consequently, the more the benefits of a renewed relationship between the U.S. and the UAE is seen to work, the more likely Abu Dhabi is to support such a landmark deal between Riyadh and Jerusalem, in Washington’s view. The latest big long-term LNG deal between the UAE and India fits perfectly in this U.S. design.

By Simon Watkins for Oilprice.com

 

CNOOC Starts Up Another Oil Project in South China Sea

By Charles Kennedy - Sep 04, 2025

CNOOC Limited has launched oil production at the Wenchang 16-2 Oilfield Development Project in the northern part of the South China Sea, China’s top offshore oil and gas producer said on Thursday.

CNOOC, which specializes in offshore oil and gas developments in China and internationally, launched production of light crude from the project in the western Pearl River Mouth Basin, which sits at an average water depth of about 150 meters (492 ft).

The development of the project uses the existing facilities of the Wenchang Oilfields, as well as a new jacket platform integrating oil and gas production, offshore drilling, completion operations, and personnel accommodation.

CNOOC plans to commission as many as 15 development wells at Wenchang 16-2. The project will be gradually ramping up production, which is expected to reach a plateau of around 11,200 barrels of oil equivalent per day (boepd) in 2027.

In recent months, CNOOC has started up several oilfields offshore China, including output of heavy crude from the largest shallow lithological oilfield. The Kenli 10-2 Oilfields Development Project – launched in July – will see 79 development wells commissioned, including 33 cold recovery wells, 24 thermal recovery wells, 21 water injection wells, and 1 water source well.

Despite the new projects, CNOOC saw its first-half profit decline by 13% from a year earlier as record-high domestic and overseas oil and gas production couldn’t offset the decline in oil prices amid volatile and challenging markets.

The value of CNOOC’s oil and gas sales fell by 7%, as the international benchmark Brent oil prices averaged approximately $71 a barrel between January and June, down from an average of over $83 per barrel for the first half of 2024.

CNOOC’s net production was 384.6 million barrels of oil equivalent (boe), up by 6.1% on the year, as both domestic and international production topped previous record highs, thanks to several new projects coming online.

By Charles Kennedy for Oilprice.com

 

Alberta Boasts Record-High Oil Production

By Tsvetana Paraskova - Sep 04, 2025

Crude oil production in Alberta, Canada’s main oil-producing province, hit a record high in July as companies are boosting productivity and output as the expanded Trans Mountain pipeline expanded access to takeaway capacity.

Producers in Alberta pumped as much as 4.32 million barrels per day (bpd) of crude in July—an all-time high, according to data from the Alberta Energy Regulator cited by Bloomberg.

Oil sands output only also saw a record-high level of 3.67 million bpd, the data showed, as companies improved production rates at in-situ bitumen production.

Year to date to July, Alberta’s oil production was 154,000 bpd higher compared to the January-July period last year, per the regulator’s data.

Alberta’s oil producers have been ramping up crude output this year as the expanded TMX pipeline now provides increased transportation capacity for Canadian producers to get their oil out of Alberta and into the Pacific Coast and then to the U.S. West Coast or Asian markets.

Last year, the Trans Mountain pipeline finally completed its expansion – after years of delays – and tripled the capacity of the original pipeline to 890,000 bpd from 300,000 bpd to carry crude from Alberta’s oil sands to British Columbia’s coast.

Apart from using additional takeaway capacity, Canadian oil sands producers are also raising output by reducing maintenance times and extending maintenance cycles to squeeze more oil and raise efficiencies.

Despite lower oil prices this year, Canada’s oil sands production is expected to reach an annual all-time high of 3.5 million bpd this year, thanks to optimization and efficiency at producing assets, S&P Global Commodity Insights said in June in its latest outlook.

This year, production is set for a record annual average of 3.5 million bpd, up by 5% compared to the 2024 output, while oil sands volumes are expected to top 3.9 million bpd by 2030, per S&P Global Commodity Insights. The projection for 2030 is 500,000 bpd higher compared to the 2024 production level and is 100,000 bpd – or almost 3% -- higher compared to the previous 10-year outlook by S&P.

By Tsvetana Paraskova for Oilprice.com

 

Lloyd’s Reverses Stance on Fossil Fuel Insurance

By Tsvetana Paraskova - Sep 04, 2025

In a reversal of previous pledges, the historic Lloyd’s of London institution will not stop insurers from covering fossil fuels, including coal. 

Patrick Tiernan, who took over as chief executive officer of the world’s oldest insurance market in the spring, told the Financial Times that the organization plans to give “more freedom” to insurers trading at the marketplace. 

Back in 2020, Lloyd’s outlined a “plan for becoming a truly sustainable insurance marketplace”, setting targets for responsible underwriting and investment for the first time, “to help accelerate society’s transition from fossil fuel dependency, towards renewable energy sources.” 

At the time, Lloyd’s pledged it would start to phase out insurance cover for, and investments in, thermal coal-fired power plants, thermal coal mines, oil sands, or new Arctic energy exploration activities. 

From January 2022, Lloyd’s managing agents were asked to no longer provide new insurance coverage or investments in these activities. 

However, Lloyd’s new boss Tiernan is abandoning this policy, amid a wider trend this year of financial institutions ditching net-zero alliances.

“Lloyd’s strength is that it’s apolitical. It’s important we don’t wade into issues we don’t need to,” Tiernan told FT. 

The U.S., especially after the inauguration of President Donald Trump for his second term in office this year, has seen a backlash against financial institutions and fund managers that had plans to reduce their exposure to coal, oil, and gas. 

The United States is the biggest market for Lloyd’s accounting for around half of its business. 

Lloyd’s new stance comes after the North American banks and asset managers began quitting net-zero alliances en masse following President Donald Trump’s election victory. The top U.S. banks and four of Canada’s largest banks are no longer part of the Net-Zero Banking Alliance (NZBA), a group of leading global banks committed to aligning their lending, investment, and capital markets activities with net-zero greenhouse gas emissions by 2050.  

By Tsvetana Paraskova for Oilprice.com