MELBOURNE: A Japanese-Australian venture producing hydrogen from brown coal is set to start loading its maiden cargo on the world’s first liquid hydrogen carrier on Friday, in a test delayed by nearly a year because of the COVID-19 pandemic.
The Suiso Frontier, built by Japan’s Kawasaki Heavy Industries (KHI), arrived Australia this week from Kobe, following a longer trip than the expected 16 days as the ship dodged bad weather and rough seas, said a spokesperson for the Hydrogen Energy Supply Chain (HESC) venture. The ship is scheduled to head back to Japan in about a week.
Led by KHI, HESC is a A$500 million ($360 million) coal-to-hydrogen project backed by Japan and Australia as a way to switch to cleaner energy and cut carbon emissions.
Hydrogen, seen as a path to decarbonizing industries that rely on coal, gas and oil, is key to Japan’s goal to achieving net-zero emissions by 2050. Australia aims to become a major exporter of the fuel.
The Australian government on Friday committed a further A$7.5 million for HESC’s A$184 million pre-commercialization phase, and A$20 million for testing a capture and storage project for carbon dioxide released in the coal-to-hydrogen process to create a carbon neutral product.
Last year, HESC started extracting 70 kg of hydrogen a day from brown coal in the Latrobe Valley, about 135 km (84 miles) east of Melbourne, where brown coal mines have long fueled some of Australia’s most polluting power stations.
The hydrogen is produced by reacting coal with oxygen and steam under high heat and pressure. It is then trucked to a port site where it is cooled to minus 253 degrees Celsius (minus 423 Fahrenheit), liquefying it for export.
The partners are looking to produce up to 225,000 tons of hydrogen a year.
They will need to make a final investment decision by 2025, with Australia racing against countries in the Middle East and elsewhere to produce carbon neutral hydrogen, said Jeremy Stone, a director of J-Power, one of the HESC partners.
Partners in the project include Japan’s Electric Power Development Co, Iwatani Corp, Marubeni Corp., Sumitomo Corp. and Australia’s AGL Energy Ltd., whose mine is supplying the brown coal.
World’s first hydrogen tanker to ship test cargo to Japan from Australia
https://arab.news/zfm3v
World’s first hydrogen tanker to ship test cargo to Japan from Australia
- The hydrogen is cooled to minus 253 degrees Celsius (minus 423 Fahrenheit), liquefying it for export
China discovers 100m tonne oilfield in Bohai Sea
- Chinese state oil company raises its 2024 production target by about 8 percent
RIYADH: China’s CNOOC Ltd. has made a major oilfield discovery in the Bohai Sea, adding over 100 million tonnes of oil equivalent proved in-place volume, the state-owned oil and gas giant said on Monday.
The discovery was made at the Qinhuangdao 27-3 oilfield located in the north-central waters of the Bohai Sea, the company said in a statement. The field has been tested to produce about 742 barrels of crude oil per day from a single well, it added.
Earlier in the month, CNOOC announced the discovery of a new reserve in the South China Sea, which contains over 100 million tonnes of oil equivalent proved in-place.
The announcements come as CNOOC invests heavily in the development of China’s offshore oil and gas reserves as part of a broader push to offset declining output from aging onshore fields.
The oil and gas giant in January raised its 2024 production target by about 8 percent to a record 700 million to 720 million barrels of oil equivalent, citing higher annual capital spending, with production reaching about 675 million boe in 2023.
Industrial output
China’s factory output and retail sales beat expectations in the January-February period, marking a solid start for 2024 and offering some relief to policymakers even as weakness in the property sector remains a drag on the economy and confidence.
Monday’s data join recent better-than-expected exports and consumer inflation indicators, providing an early boost to Beijing’s hopes of reaching what analysts have described as an ambitious 5 percent gross domestic product growth target for this year.
FASTFACTS
• The discovery was made at the Qinhuangdao 27-3 oilfield located in the north-central waters of the Bohai Sea.
• The field has been tested to produce about 742 barrels of crude oil per day from a single well.
• The announcements come as CNOOC invests heavily in the development of China’s offshore oil and gas reserves.
“China’s activity data broadly stabilized at the start of the year. But there are still reasons to think some of the strength could be one-off,” said Louise Loo, China economist at Oxford Economics.
Industrial output rose 7 percent in the first two months of the year, data released by the National Bureau of Statistics showed on Monday, above expectations for a 5 percent increase in a Reuters poll of analysts and faster than the 6.8 percent growth seen in December. It also marked the quickest growth in almost two years.
Retail sales, a gauge of consumption, rose 5.5 percent, slowing from a 7.4 percent increase in December but beating an expected 5.2 percent gain.
The eight-day Lunar New Year holiday in February saw a solid return of travel, which supported revenue of tourism and hospitality sectors. That also led to a 3 percent growth in oil refinery throughput to meet strong demand for transport fuels.
Property sector
A protracted crisis in the property sector, a key pillar of the economy, remains a major concern for policymakers, consumers and investors.
Monday’s data offered little relief on that front with declines in property investment narrowing in January-February, but still far from levels of reaching stability.
The frailty of the sector was highlighted by the poor demand. Property sales by floor area logged a 20.5 percent slide in January-February from a year earlier, compared with a 23 percent fall in December last year.
Aramco CEO calls for energy transition reset during keynote speech at CERAWeek 2024
- Amin H. Nasser: ‘We should abandon the fantasy of phasing out oil and gas and instead invest in them adequately, reflecting realistic demand assumptions’
- Nasser: ‘Despite the world investing more than $9.5 trillion on energy transition over the past two decades, alternatives have been unable to displace hydrocarbons at scale’
DHAHRAN: Aramco President and CEO Amin H. Nasser today emphasized the need for a new, realistic pathway for the energy transition that includes oil and gas. In a keynote speech at CERAWeek 2024 in Houston, Texas, Mr. Nasser said the current transition strategy “is visibly failing on most fronts as it collides with five hard realities.”
These hard realities include the need to reset global efforts to meet climate ambitions, the inability of alternatives so far to displace hydrocarbons at scale, the costs associated with alternatives, energy requirements of the Global South, and the potential for further emissions reductions from hydrocarbons.
On reducing emissions from oil and gas, Nasser said: “We should abandon the fantasy of phasing out oil and gas and instead invest in them adequately, reflecting realistic demand assumptions. We should ramp up our efforts to reduce carbon emissions, aggressively improve efficiency, and introduce lower carbon solutions. And we should phase in new energy sources and technologies when they are genuinely ready, economically competitive, and with the right infrastructure.”
On the energy transition’s impact on consumers, Nasser said: “As the current transition strategy increasingly impacts the majority, not just a tiny minority, consumers around the world are sending powerful messages that can no longer be ignored. We know they want energy with lower emissions, and rightly so. But many are struggling to afford the energy they need. And they worry about ample and reliable supply, which the recent energy crisis showed is not guaranteed… Unfortunately, the current transition strategy overlooks these broader messages from consumers. It focuses almost exclusively on replacing hydrocarbons with alternatives, more on sources than on reducing emissions.”
On the demand outlook for hydrocarbons, Nasser said: “Despite the world investing more than $9.5 trillion on energy transition over the past two decades, alternatives have been unable to displace hydrocarbons at scale… Global oil demand is expected to reach an all-time high in the second half of this year… Likewise, gas remains a mainstay of global energy, growing by about almost 70 percent since the start of the century… All this strengthens the view that peak oil and gas is unlikely for some time to come.”
CERAWeek is an annual conference that gathers leaders, ministers, public-policy officials and CEOs from around the world to share insights, innovative ideas and solutions to energy, climate and environmental challenges. More than 8,000 representatives of the energy, utilities, automotive, manufacturing, policy, financial, and technology fields attend CERAWeek, which features more than 1,400 expert speakers.
Saudi Arabia’s mining sector records 138% growth in exploitation licenses
RIYADH: Saudi Arabia’s mining sector is on an impressive upswing, recording a 138 percent increase in the issuance of exploitation licenses since the implementation of the new Mining Investment Law in 2021.
The number of permits rose from eight in 2021 to 19 last year as the Saudi Ministry of Industry and Mineral Resources actively works to boost mineral production and investment.
The strategic shift is part of the Kingdom’s efforts to transform mining into a foundational industrial pillar. The Kingdom’s mineral wealth is valued at an estimated SR9.4 trillion ($2.4 trillion), according to a press release from the ministry.
Data further revealed a surge in building materials quarry licenses, which rose from 158 in 2021 to 538 in 2023, and a leap in exploration licenses, from 58 to 259 during the same period.
These increases, 241 percent and 347 percent, respectively, are propelled by strategic undertakings like the Accelerated Exploration Program initiative and more efficient licensing procedures.
Saudi Arabia’s mining sector has been expanding both locally and internationally, with significant strides being made.
In January, the Royal Commission for Jubail and Yanbu signed a memorandum of understanding with Brazilian mining company Vale for the development of an iron ore briquettes project in the Kingdom.
The MoU was signed on the sidelines of the two-day Future Minerals Forum, during which the Brazilian company disclosed its plans for the Middle East.
The deal marked a key milestone in Vale’s journey in the region, spotlighting the upcoming state-of-the-art project in the Kingdom as a crucial part of its strategy to decarbonize the steelmaking industry.
Speaking in a panel discussion titled “Making Africa, Western and Central Asia Processing and Manufacturing Hubs,” Vale CEO Eduardo Bartolomeo highlighted the technological innovations and advancements planned within the mega hub in Ras Al-Khair Industrial City.
Vale said that its participation at the forum underscored the company’s pivotal role in the region’s sustainable mining sector, adding that it demonstrated a strong alignment with the Kingdom’s Vision 2030 in an emphasis to its project in Ras Al-Khair and commitment to net-zero emissions.
Closing Bell: TASI ends session in green, nears $3bn in trade volume
RIYADH: Saudi Arabia’s Tadawul All Share Index wrapped up Monday’s trading session at 12,772.46 points, witnessing an increase of 10.03 points, or 0.08 percent.
The parallel market, Nomu, ended the day at 27,204.67 points, down 75.02 or 0.28 percent.
Conversely, the MSCI Tawadul Index grew by 1.53 points to close at 1,606.96, a 0.10 percent increase.
TASI reported a trading volume of SR11 billion ($2.94 billion), with 115 stocks gaining and 113 witnessing declines.
Nomu, on the other hand, saw a trading volume of SR26 million.
On the announcement front, the Saudi Industrial Investment Group Co. released its financial results for 2023, recording a 59.5 percent drop in net profits compared to the previous year.
Since SIIG employs the equity method for its joint venture investments, it does not list sales, revenue, and gross profit on its profit or loss statement.
However, the company’s results indicated a massive drop in net profits from SR277 million in 2022 to SR112 million in 2023.
SIIG reported a decline in its share of profits from joint ventures, primarily due to falling selling prices across all products and an unplanned shutdown at the Saudi Polymer Co. project this year.
Despite these challenges, the company observed an uptick in financing income, particularly from Murabaha, and a reduction in general and administrative expenses, indicating a mixed financial performance in the current fiscal period, according to a bourse filing.
Furthermore, United Mining Industries Co. saw a slight decrease in its revenue, recording SR240,327 in 2023, a 0.6 percent drop from SR241,813 the year before.
However, the company’s net profit experienced a massive uptick recording SR35,830 last year, an 11.81 percent rise from the year before, largely attributed to a change in the sales mix, according to a bourse filing.
Moreover, Nahdi Medical Co. reported a marginal increase in net profit for 2023, totaling SR892.6 million, up 0.5 percent from the previous year.
The company faced a slight decline in gross profit due to investments in sales promotions, leading to a gross margin of 40.4 percent.
Despite this, strategic investments in healthcare, e-commerce, and the UAE operations were supported by efficient cost management, keeping operating expenses steady.
Arabian Drilling also announced its financial results for 2023 reporting a 28.5 percent growth in revenue to reach SR3.4 billion.
The company’s net profit also increased to reach SR605 million, an 8.4 percent growth from 2022.
Experts to discuss cybersecurity issues at Riyadh forum
RIYADH: Top decision-makers and entities will convene to discuss pivotal issues in the digital realm at the fourth edition of the Global Cybersecurity Forum in Riyadh, scheduled for October.
Under the patronage of King Salman, the National Cybersecurity Authority is organizing the event on Oct. 2 and 3, centered around the theme “Advancing Collective Action in Cyberspace.”
The objective is to bolster international cooperation on critical digital issues, attracting elite participants and prominent global entities in the cybersecurity domain.
This year’s forum will build on the principles and objectives established during previous events, contributing to the enhancement of international cooperation in cybersecurity and stimulating economic and social development in this field, according to the Saudi Press Agency.
The conference will feature several dialogue sessions focusing on key areas, including addressing cyber disparities and understanding online behavior and social dynamics in the digital world to foster integration.
An additional topic will include how to bridge social gaps between communities, organizations, and nations.
Additionally, talks will delve into the cyber economy, exploring how it can spur development by cultivating markets in the sector.
Participants will explore strategies for harnessing emerging technologies to propel progress and innovation.
The forum acts as a global platform that gathers decision-makers, government officials, businesses, cybersecurity experts, academics, and nongovernmental organizations. It operates in accordance with the strategic objectives of the GCF Institute to strengthen cybersecurity globally, foster economic and social development, and coordinate with and support relevant international initiatives.
A forum recently held in Geneva, organized in partnership with Saudi Arabia’s UN Mission, emphasized collaborations in addressing challenges and opportunities in cyberspace.
The event on Jan. 23, organized by the GCF, drew over 60 diplomats, UN representatives, and NGO officials. They participated in the GCF Institute’s endeavors to foster global dialogue, research, and initiatives related to cyberspace.
In his opening speech, Abdulmohsen Majed bin Khothaila, ambassador and permanent representative of Saudi Arabia to the UN, underscored the GCF as a symbol of the Kingdom’s commitment to strengthening global cybersecurity efforts.
He highlighted that the GCF reflects Saudi Arabia’s resolve to unify international cybersecurity endeavors and promote initiatives that foster peace, prosperity, and positive socio-economic impact worldwide.