Inclusion of international carbon trading in Article 6 of the Paris Rulebook at COP26 could see the market’s value surge from US1 billion in 2021 to nearly US$200 billion in 2050. “The elimination of double-counting makes decarbonization real,” Wood Mackenzie’s research director Elena Belleti said, suggesting this will attract financing for “real emission reduction.”
Carbon capture and utilisation (CCU) only make sense together with direct-air-capture technologies. Hydrocarbons will be needed even in a CO2-neutral economy – whether in artificial paraffin or for plastics – analysts at Germany’s federal environment agency (UBA) say, hence "future carbon cycles can only be closed permanently with additional carbon extraction from the atmosphere.”
Uncertainty about the future role gas is keeping the German government from signing a pledge at the COP26 Climate Summit to end foreign fossil fuel funding by 2022. Permitted projects must be consistent with a 1.5°C warming limit which basically means carbon capture and storage or utilisation (CCS/CCU) and hydrogen, though Germany needs gas for emergency power.
German chancellor Angela Merkel has made a plea for more widespread carbon pricing, targeting hard-to-abate sectors, at the COP26 climate summit in Glasgow. Progress made so far is “insufficient,” she said, noting Germany just tightened targets and now aims to cut emissions by 65% by 2030 from 1990-levels, and reach Net Zero by 2045.
Pre-FEED (Front End Engineering and Design) study contracts have been awarded by Equinor for the H2H Saltend hydrogen production plant (600 MW) in the UK. The study also underpins plans to scale up the Saltend plant to another 1,200 MW hydrogen output for use at Keadby power station – the world’s first 100% hydrogen-fuelled generator.
Mitsubishi Power Americas and El Paso Electric (EPE) have agreed to jointly develop strategies to attain an 80% carbon-free resource mix by 2035. The two partners will convert EPE’s Newman Power Station’s newest unit from 100% gas generation to running on a blend of up to 30% hydrogen, and then to being 100% fuelled by hydrogen.
GE has published a whitepaper on how accelerating deployment of renewables and gas power can help Japan combat climate change. Larger shares for wind and solar energy, the restart of nuclear power, and hydrogen/ammonia are in the forefront of the government’s 6th Strategic Energy Plan as it seeks to establish a carbon neutral society by 2050.