Syngas News

Syngas News

UNITED KINGDOM

Government publishes hydrogen strategy

The UK has published its Hydrogen Strategy, setting out the government’s ambition to create a low carbon hydrogen sector, with up to one third of the UK’s energy consumption being hydrogen-based by 2050. The commitments set out in the strategy unlocks £4 billion of government investment by 2030. The government plans 5GW of low carbon hydrogen production capacity and the establishment of carbon capture, use and storage (CCUS) in four industrial clusters by 2030, as well as blending of hydrogen into the existing gas network and a ‘twin-track’ approach to hydrogen production, using both electrolytic and CCUS-enabled low carbon hydrogen production in order to scale up production in time to meet the UK’s 2030 and 2050 carbon emissions targets.

Green methanol proposal for Scotland

The Global Energy Group has entered into an agreement with Swiss-based Proman Group, the world’s second largest producer of methanol, for a feasibility study into the development of a low carbon industrial cluster in the Cromarty Firth, an inlet on the northeast coast of Scotland, north of Inverness. The first fruit of the Cromarty Clean Fuels Project would be a methanol plant at the Nigg Oil Terminal using offshore wind energy to generate hydrogen and local sources of captured carbon dioxide to make the fuel. Proman would become the owner, operator and offtaker of the green methanol production facility, which would include repurposing existing onshore storage at Nigg and export of methanol via the repurposed jetty at the site.

David Cassidy, CEO of Proman, commented: “As a global leader in methanol production we are actively investing and pursuing green methanol projects to further develop methanol’s potential as a clean fuel for the future. Working with Global Energy Group in establishing green methanol production in Scotland is an exciting development in our strategy as it combines the necessary requirements of low cost renewable energy and utilises local sources of captured CO2 to produce green methanol. The UK has proven itself as a world leader in supporting offshore wind, tidal and other clean power generation technologies. Green methanol presents a significant opportunity to bridge the gap from fossil-based to renewable fuels as we move to a lower carbon future and as such the production of and market for ‘green’ methanol from sustainable sources such as waste, bio-mass or renewable energy is growing and highly scalable.”

CHINA

Haldor Topsoe and Yanchang build methanol catalyst facility

Haldor Topsoe and Shaanxi Yanchang Petroleum Co., Ltd have formed a joint venture to locally produce MK-151+ methanol synthesis catalysts for the Chinese market. Together, the two companies will build a production facility in Shaanxi Fupin in China to produce methanol synthesis catalysts. Topsoe and Yanchang have designed the plant and ordered long lead time equipment and therefore plan on starting up at the beginning of 2022.

“Yanchang is well-positioned in the oil and gas value chain and a very experienced methanol producer. With this joint venture we combine Topsoe’s world-leading methanol catalyst technology and Yanchang’s outstanding production capabilities to produce our high-performance methanol synthesis catalysts that Topsoe will sell directly to our Chinese customers, enhancing our presence in the Chinese market,” says Amy Hebert, Chief Commercial Officer at Topsoe.

Clariant selected for CNOOC

Clariant has been contracted to supply its high-performance methanol synthesis catalyst, MegaMax 800 by the China National Offshore Oil Corporation (CNOOC) for its 800,000 t/a methanol plant at Fudao in Hainan, based on a Davy production process. It is a reorder following first delivery of the catalyst in 2018. The 2018 charge allowed CNOOC to increase methanol yield by 38,000 tonnes, representing up to $10.8 million in product, as well as reducing total natural gas consumption (feedstock and fuel) by 1.5% on average, with lower wax formation.

Stefan Heuser, senior vice president and general manager at Clariant Catalysts, stated, “The repeat order is a significant achievement for us and further proof of the quality of our unique methanol synthesis catalyst’s performance. It is an honour to support CNOOC, one of China’s largest oil and gas producers, in enhancing their production, efficiency, and plant reliability.”

CANADA

Air Products to build net-zero hydrogen energy complex in Canada

Air Products has announced the development of a net zero hydrogen energy complex at Edmonton, Allberta. This new facility will be based on Haldor Topsoe’s SynCOR™ autothermal reforming technology, and capture over 95% of the CO2 generated for storage underground. Hydrogen-fuelled electricity will power the plant and offset the remaining 5% of emissions at the site. The clean energy complex will help refining and petrochemical customers served by the Air Products Heartland Hydrogen Pipeline to reduce their carbon intensity. The complex will also produce liquid hydrogen for merchant sales and as a clean fuel in the transportation sector. It is expected to come on-stream in 2024.

Canada’s clean energy diversification strategy has marked hydrogen as a key enabler for Canada to achieve its goal of carbon neutrality by 2050.

“We are very proud of our collaboration with Air Products, and that our SynCOR™ technology plays a central part in their landmark net-zero hydrogen project. This is not only proof of our ability to deliver efficient hydrogen solutions, it also bears testament to our ability to achieve our vision of being recognized as the world leader in carbon emission reduction technologies by 2024. Our work and this project is a strong contribution to the decarbonisation of fuels and chemicals in Alberta and across the world,” said Amy Hebert, CCO at Topsoe.

INDIA

Prime minister Narendra Modi announces National Hydrogen Mission

In his address to the nation on the country’s 75th Independence Day, India’s prime minister Narendra Modi announced the setting up of the National Hydrogen Mission. Modi said that green hydrogen would play a crucial role in helping the nation take a quantum leap in terms of climate change mitigation, and called upon industry and other stakeholders to make India a global hub for green hydrogen production and export. “This will not only help India to make new progress in the field of energy self-reliance but will also become a new inspiration for clean energy transition all over the world. New opportunities from green growth to the green job are opening up today for our start-ups and youth,” he said.

With the government push, India has seen a good number of projects announced both from public and private sectors, including JSW Energy partnering with Australia-based Fortescue Future Industries on green hydrogen for steel making and hydrogen mobility, IndianOil’s plans to build India’s first green hydrogen plant at its Mathura refinery, and BGR Energy’s partnership with Ireland’s Fusion Fuel Green on a demonstrator plant for cost-competitive green hydrogen. Industry majors have also formed an India Hydrogen Alliance led by Reliance Industries.

At the same time, India’s power and renewable energy minister RK Singh has placed draft plans before the cabinet for the country’s refining and fertilizer sectors to switch to renewable ‘green’ hydrogen feeds. Other energy intensive sectors such as steel and transport are likely to follow. The policy suggests that refiners must have 10% of their hydrogen consumption generated from renewable electricity by the end of financial year 2023-24, rising to 25% by 2030. The comparable figures for ammonia/urea production are 5% and 20%, respectively. India is pursuing some of the world’s most ambitious renewable energy targets of 175 GW of renewable energy capacity by the end of 2022 and 450 GW by 2030.

State-owned refiner IOC says that it will build its first commercial green hydrogen plant at the 160,000 bbl/d Mathura refinery in north India, using electricity generated from wind energy in Rajasthan to electrolyse water. The company also says that for the 500,000 bbl/d of new refining capacity that it plans to add by 2024 at its existing Panipat, Barauni and Nagapattinam refineries, it will use clean energy to run operations instead of fossil fuels such as fuel oil, naphtha or natural gas.

Reliance Industries has also announced investments totalling $10 billion over the next three years to build plants that will produce green hydrogen and other forms of clean energy.

CHILE

Ground broken on green hydrogen project

Chile’s Highly Innovative Fuels (HIF) consortium has broken ground on a $45 million green hydrogen pilot project to produce methanol and carbon-neutral gasoline and LPG. The Haru Oni project will use hydrogen derived from 3.4 MW of dedicated wind energy to produce green methanol at Punta Arenas in the south of Chile, which will then be used to produce carbon-neutral gasoline and other products. The pilot project, which is due to begin operations next year, will produce 350 t/a of methanol and 130,000 litres/year of gasoline, and is designed to be scaled up in two subsequent stages. A final investment decision is expected next year on a $800 million commercial scale plant with 140,000 t/a of methanol capacity, which would be intended to come on-stream in late 2024 or early 2025. A further final investment decision on a ‘world scale’ 1.4 million t/a methanol facility is expected in 2023, for start-up in 2026. The HIF consortium includes Italian generator Enel, German engineering company Siemens and Chile’s state-owned oil company Enap. The German government has provided financing for the pilot project.

TRINIDAD & TOBAGO

NGC signs gas contract with MHTL

Trinidad’s state-owned National Gas Company (NGC) has finally signed a consolidated gas supply contract with Methanol Holdings (Trinidad) Ltd (MHTL), bringing to an end protracted negotiations between the government and Proman, the largest tenant at the Point Lisas Industrial Estate. In a joint statement, issued yesterday, NGC and MHTL said the contract will support operations at the MHTL methanol complex, which includes the 1.9 million t/a M5 methanol plant, one of the world’s largest. Proman, via MHTL, owns five methanol plants with a combined capacity of 4 million t/a and an ammonia, urea ammonium nitrate and melamine complex. The company also owns shares in two ammonia plants at the Point Lisas Industrial Estate: Caribbean Nitrogen Company and Nitrogen (2000), as well as a majority stake in DeNovo Energy, which delivers 80 million scf/d to the Point Lisas Estate from the Iguana field.

Previously, each of MHTL’s plants was supplied under individual gas sales contracts, but the consolidated gas supply contract is a single contract which will govern the sale of gas to the entire complex. The companies say that this new approach will streamline and enhance contract administration, relationship management, logistics and planning, and give flexibility to MHTL to manage its supply in the most efficient manner.

Managing director of MHTL, Jerome Dookie, welcomed the new gas supply contract, saying: “Today’s agreement creates a period of stability that will provide immediate benefit to all parts of the gas value chain and indeed the entire national economy. We are grateful for the sustained efforts of NGC and our negotiating teams throughout this process and for the ongoing support of the Government of Trinidad and Tobago. There is no doubt that this has been a difficult period for our industry, with long-term economic gas supply challenges exacerbated by the global market downturn caused by Covid-19. As the global energy sector begins its lower-carbon transition, we look forward to working with all stakeholders to secure a sustainable and globally competitive future for our national energy industry, capitalising on the world-class skills, infrastructure and capabilities that we have collectively built to date.”

UNITED STATES

Methanol plant construction restarts at Geismar

On July 16th Methanex announced the company’s restart of construction on its new third methanol plant at Geismar, Louisiana. The company deferred construction on the 1.8 million t/a facility in 2020 due to uncertainty at the beginning of the coronavirus pandemic. In a statement, Methanex president and CEO John Floren said that: “The timing is right to restart construction on our Geismar 3 project as the methanol industry outlook is positive, we have a strong financial position to fund the project and the project has been significantly de-risked and is well positioned to be completed on-time and on budget. Geismar 3 will strengthen our asset portfolio as it will be one of our lowest cost plants, with access to abundant and low-cost natural gas and have one of the lowest CO2 emissions intensity profiles in the industry.”

Current methanol industry fundamentals are positive as growing methanol demand, low global inventory levels, ongoing industry supply challenges and a rising energy price environment have supported higher methanol prices. Over the medium term, Methanex believes that the industry will need new supply to meet growing methanol demand. It anticipates strong methanol demand growth of approximately 16 million tonnes or 20% (~4% CAGR) over the next five years, compared with just 14 million tonnes of new industry capacity additions over that same period, including Geismar 3. With limited project commitments beyond 2022, industry operating rates will need to increase to meet growing demand.

Methanex said that Geismar 3 is on budget and on-track for commercial operations by late 2023/early 2024, with the total capital costs put at $1.25-1.35 billion.

GERMANY

MAN Andritz Hydro to jointly develop green hydrogen projects

MAN Energy Solutions and Andritz Hydro have signed a strategic framework agreement to jointly develop international projects for the production of green hydrogen from hydro-electric power. This collaboration will begin with a pilot project in Europe, with the companies looking to jointly identify further projects and implement them in the context of the German Federal Government’s H2 Global initiative.

Frank Mette, CEO of Andritz Hydro, said, “hydropower is one of the few completely climate-neutral forms of energy, which is capable of providing base load power. We therefore see excellent potential for worldwide expansion – in new construction projects just as much as in repowering. By adding the possibility of producing hydrogen to hydropower plants, we are taking the next step and also making the energy generated there ready for export and storage without restriction. Together with MAN Energy Solutions, we can open up new markets and opportunities for the operators.”

MOZAMBIQUE

Security issues plague LNG and downstream developments

Mozambique’s ambitions to develop a massive LNG project in the onshore Cabo Delgado province in conjunction with France’s Total at a cost of $20 billion is being stymied by on ongoing Islamic State insurgency uprising that is not only threatening to tear the country apart, but could also fuel an economic collapse. It is estimated that more than 2,600 people have been killed and 700,000 have fled their homes since the insurgency, led by ISIS-linked Al-Shabab, began in 2017. In April, Total issued a force majeure on the project and went on to withdraw personnel from the Afungi site. The move throws the project, one of three LNG projects being implemented in the country and the only one that has achieved significant progress, into jeopardy. Before invoking a force majeure, Total had promised to ship the first LNG cargoes in 2024 from its project whose capacity stands at 13.1 million t/a.

US giant ExxonMobil, which is leading the $30 billion Rovuma LNG project, is also said to be considering abandoning the project after pushing back the signing of the final investment decision for its 15.2 million t/a project. Shell has also abandoned a greenfield gas to liquids project, and fertilizer major Yara has cancelled plans to invest in fertilizer and power plants. The one remaining bright spot is the offshore Coral South floating production facility being developed by Eni. The project’s progress has been largely untouched by the insurgency and remains on track to begin exports in 2022, with a capacity of 3.4 million t/a.

SOUTH AFRICA

Natref faces sale or closure

Sasol and its joint venture partner Total say that they are considering selling or closing their 107,000 bbl/d Natref refinery at Sasolburg. The firms have concluded that making the refinery compliant with the country’s pending Clean Fuel 2 regulations, equivalent to Euro-V (<10 ppm sulphur) would not be financially viable, because current margins do not justify the investment required. South Africa currently operates on much more forgiving Euro-II (<500 ppm) sulphur standards.

Sasol and Total are reportedly exploring options such as converting Natref into a storage and blending facility to supply Sasol’s facility at Secunda, which Sasol intends to convert to green hydrogen use to produce sustainable aviation fuels by 2030. The other options would be a sale or closure of the facility. Sasol expects to make a decision on Natref in the next few months. Sasol owns 63% of the Natref refinery, and Total owns the remaining 27%.