Daily Energy News
Policy & Regulatory
The United Kingdom will enshrine a new target in law by June 2021 to reduce greenhouse gas (GHG) emissions by 78% by 2035 compared to 1990 levels. In line with the recommendation from the independent Climate Change Committee, this sixth Carbon Budget (CB6) caps the volume of GHG emissions over a 5-year period from 2033 to 2037. The CB6 includes GHG emissions from international aviation and shipping (IAS) for the first time.
Bosnia and Herzegovina has updated its first Nationally Determined Contribution (NDC). The country plans to reduce its greenhouse gas (GHG) emissions in 2030 by 12.8% compared to 2014 (or 33.2% compared to 1990) using its domestic resources (unconditional target) and by 17.5% compared to 2014 (or 36.8% compared to 1990) with international support (conditional target).
Canada intends to cut greenhouse gas (GHG) emissions in 2030 by 36% compared to 2005 levels and to move forward on a path to reach net-zero emission by 2050, according to the country’s budget for the fiscal year ending in March 2022. The country’s previous 2030 target was to cut GHG emissions by 30%. In addition, Canada plans to invest CAD17.6bn (US$14.1bn) in a “green” recovery.
The South Korean Ministry of Trade, Industry and Energy has increased the Renewable Portfolio Standard (RPS) from 10% to 25%. The RPS obliges power companies with a capacity higher than 500 MW to produce 25% of their total output from renewables (including waste heat). 13 power companies are concerned by the measure. The RPS system was introduced in 2012 with an initial mandatory quota of 2%, which has been gradually raised to 9% in 2021. The policy, implemented through a system of certificate, should be effective from October 2021.
Poland plans to create a parastatal organisation to take over and lignite-fired power plants from state-owned energy groups PGE (57.4% state-owned), Enea (51.5% state-owned) and Tauron (30.1% state-owned). The reform, which should be introduced to the agenda of the government, is expected to help power companies raise funds for green projects, as banks have shed away from backing coal-dependent companies.
ExxonMobil has proposed a 100 MtCO2/year carbon capture and storage (CCS) project that would collect CO2 emissions of petrochemical plants, power plants and manufacturing facilities in the Houston area in Texas (United States) and bury them in deep geological formations under the Gulf of Mexico by 2040. The CCS plant, which would require a US$100bn investment, should be developed under a public-private partnership.
Infrastructure & Investments
The 525 MW Nakoso integrated coal gasification combined-cycle (IGCC) power plant in Iwaki, Fukushima (Japan), has entered commercial operations. The project was developed by a consortium comprising Nakoso IGCC Management (40%), Mitsubishi Heavy Industries (40%), Mitsubishi Electric Corporation (10%), Tokyo Electric Power Company (5%) and Joban Joint Power (5%). Construction started in April 2018.
Czechia has eliminated Russia’s Rosatom from a tender to build a new 1.2 GW unit at the Dukovany nuclear power plant in a context of degraded diplomatic relations with Russia. In March 2021, Czechia had invited EDF, KHNP, Rosatom, and Westinghouse to pre-qualify for the tender. Czechia has previously excluded China General Nuclear Power (CGNPC) for security concerns.
China’s Shandong Oil & Gas, CCCC Urban and Rural, and Yantai Port have reached an agreement to jointly develop a 5 Mt/year (6.75 bcm/year) LNG import terminal in the eastern province of Shandong (China). A second 5 Mt/year phase is also planned. The project would also include six 200,000 cubic meters LNG storage tanks to be built in two phases. Construction should start in 2022 and commissioning is scheduled in 2024. The terminal will be owned by CCCC Urban and Rural (40%) Shandong Oil & Gas (30%) and Yantai Port (30%).