Mabux: Global Bunker Prices

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MABUX ARA LNG Bunker Index
Port LNG$/mton MGO LS$/mton Date
ARA
665.34
+56.24
775.00
-15.00
Apr 17
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Port	LNG$/mton	MGO LS$/mton	Date
ARA	665.34	+56.24	775.00	-15.00	Apr 17

MABUX Global Bunker Index

380HSFO$/mton		VLS FO$/mton		MGO LS$/mton		Date
548.76	-4.98	690.10	-4.52	884.94	-8.80	Apr 18

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MBP INDEX vs DBP INDEX (ICE/NYMEX)

All Indexes in $/mton	380HSFO			VLS FO			MGO LS			Date
All Indexes in $/mton	MBP Index	DBP Index	Diff	MBP Index	DBP Index	Diff	MBP Index	DBP Index	Diff	Date
Rotterdam	480	550	-70	605	652	-47	775	875	-100	Apr 18
Singapore	512	565	-53	645	659	-14	787	884	-97	Apr 18
Fujairah	494	576	-82	644	656	-12	890	932	-42	Apr 18
Houston	477	537	-60	625	672	-47	802	787	+15	Apr 18

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Latest News
- 2024-04-18
  Oil steadies as new sanctions interrupt easing tensions
  Oil prices were broadly steady on Thursday, as investors weighed U.S. sanctions on Venezuela and Iran, and robust U.S. jobs data against the wider backdrop of demand concerns and easing Middle East tensions that had pushed prices 3% lower on Wednesday. Brent... Read more Oil prices were broadly steady on Thursday, as investors weighed U.S. sanctions on Venezuela and Iran, and robust U.S. jobs data against the wider backdrop of demand concerns and easing Middle East tensions that had pushed prices 3% lower on Wednesday.
  Brent futures were up 10 cents, or 0.11%, to $87.39 a barrel at 1358 GMT, while U.S. crude futures were 26 cents higher, or 0.31%, at $82.95 a barrel.
  Both benchmarks had dropped over $1 at their intra-day lows, touching their weakest in around three weeks.
  Venezuela lost a key U.S. license that allowed it to export oil to markets around the world, which would hit the volume and quality of its crude and fuel sales.
  The market is "finally starting to metabolize the fact that Venezuelan sanctions are back," said Kpler's lead crude analyst Viktor Katona.
  "Venezuela being sanctioned back happens simultaneously to Mexico cutting its crude exports, meaning the U.S. Gulf Coast is headed into the summer season with limited options on the supply of heavy crudes," Katona added.
  The U.S. also announced sanctions on Iran targeting the country's unarmed aerial vehicle production after its drone strike on Israel last weekend.
  But additional sanctions avoided Iran's oil industry. Iran is the third largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), according to Reuters data.
  Earlier in the day, Iran had said it could review its "nuclear doctrine" in response to retaliatory Israeli threats, which could have provided some support to oil prices, according to PVM analyst Tamas Varga.
  The news comes after investors had been largely unwinding the geopolitical risk premium in oil prices in the last three sessions - during which Brent lost around 3.5% - on the perception that any Israeli retaliation to Iran's attack on April 13 will be moderated by international pressure.
  Meanwhile, U.S. jobless claims were unchanged at low levels last week, pointing to continued labor market strength which is driving the economy and postponing the prospect of U.S. rate cuts until September.
  Surging U.S. crude inventories also pressured prices on Wednesday. Oil inventories rose by 2.7 million barrels to 460 million barrels in the week ending April 12, the Energy Information Administration said, nearly double analysts' expectations in a Reuters poll for a 1.4 million-barrel build. [EIA/S]
  Stockpiles built up as refinery utilization declined at a time when processing typically rises ahead of summer driving demand in the U.S. Source: Reuters/Investing.com
- 2024-04-18
  GLOBAL: WALLENIUS WILHELMSEN JOINS THE FIRST MOVERS COALITION
  Norway’s Wallenius Wilhelmsen has announced it has joined the First Movers Coalition. As previously reported, the Coalition was announced by US Special Presidential Envoy for Climate, John Kerry, at the World Economic Forum in 2021. The platform enables... Read more
- 2024-04-18
  GLOBAL: ABS: DECARBONISATION IS A ‘ONCE IN A GENERATION OPPORTUNITY TO RESET AND REVITALISE NATIONAL MARITIME STRATEGIES’
  ABS Chairman and Chief Executive Christopher J. Wiernicki has made the case that the energy transition at sea is a ‘once in a generation opportunity’ for the shipping industry and governments to revitalise national maritime strategies and build the infrastructure... Read more
- 2024-04-18
  EUROPE: GERMAN FINANCIAL SUPPORT CRUCIAL TO ELECTRIFICATION PROJECT, SAYS SCANDLINES
  Scandlines has highlighted the importance of financial support from the German Ministry of Transport for the electrification of two of its passenger ferries. As previously reported, the Copenhagen-headquartered ferry company announced in December that... Read more
- 2024-04-18
  EUROPE: METHANOL INSTITUTE AND SEA-LNG TAKE ISSUE WITH EC’S STANCE ON MASS BALANCING IN BIOFUEL SUPPLY
  The Methanol Institute (MI) and SEA-LNG have voiced their joint ‘deep concerns’ over the European Commission’s (EC) intention to exclude the automatic certification of biomethane and biomethanol-fuels produced in third party countries outside EU gas grids... Read more
- 2024-04-18
  GLOBAL: WORLD SHIPPING COUNCIL APPOINTS JOE KRAMEK PRESIDENT AND CEO
  The Board of the World Shipping Council (WSC) has appointed Joe Kramek as its new President and CEO. Kramek will officially assume his new role on 1 August, following John Butler’s retirement at the end of July. Kramek has been serving as the WSC’s... Read more
- 2024-04-18
  MABUX: Bunker Weekly Outlook, Week 16, 2024.
  During Week 16, the MABUX global bunker indices showed mixed dynamics with no a clear trend. The 380 HSFO index rose by 2.83 USD: from 549.31 USD/MT last week to 552.14 USD/MT. The VLSFO index fell by 1.88 USD (694.83 USD/MT versus 696.71 USD/MT last... Read more During Week 16, the MABUX global bunker indices showed mixed dynamics with no a clear trend. The 380 HSFO index rose by 2.83 USD: from 549.31 USD/MT last week to 552.14 USD/MT. The VLSFO index fell by 1.88 USD (694.83 USD/MT versus 696.71 USD/MT last week), consistently staying below the $700 mark. The MGO index decreased by 11.06 USD (from 906.48 USD/MT last week to 895.42 USD/MT), falling below the 900 USD mark. At the time of writing, there are signs of a downward trend in the global bunker market.
  
  MABUX Global Scrubber Spread (SS) – the price difference between 380 HSFO and VLSFO - decreased by $4.71 ($142.59 vs. $147.40 last week). At the same time, the weekly average showed a symbolic decrease of $0.26. In Rotterdam, SS Spread increased by $6.00 (from $119.00 last week to 125.00), maintaining above the $100.00 mark (SS Breakeven), with the weekly average up by $4.50. Conversely, in Singapore, the difference in the price of 380 HSFO/VLSFO, reduced by $7.00 ($138.00 versus $145.00 last week), with the weekly average down by $1.66. We expect continued uncertainty in the SS Spread dynamics for the upcoming week. More information is available in the "Differentials" section of mabux.com.
  
  European natural gas prices surged last week due to Russia's escalation of attacks on Ukrainian energy infrastructure. This retaliation followed a series of Ukrainian strikes on Russian oil refineries. Reuters estimates that these attacks have disrupted approximately 14% of Russia's total refining capacity. Washington has criticized these energy-focused attacks, expressing concerns that they could further elevate global oil prices. Additionally impacting European natural gas futures were reports of significantly reduced natural gas flows into the Freeport LNG export plant in Texas, attributed to problems with a liquefaction train.
  
  On April 15, the price of LNG as bunker fuel in the port of Sines, Portugal, rose to 730 USD/MT, marking an increase of 89 USD from the previous week. Concurrently, the price gap between LNG and conventional fuel narrowed to 165 USD in favor of LNG, down from 285 USD the previous week. On the same day, MGO LS was priced at 895 USD/MT in the port of Sines. For further details, refer to the LNG Bunkering section on mabux.com.
  
  In Week 16, the MDI index (the ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index)) highlighted the following trends across the major world hubs: Rotterdam, Singapore, Fujairah and Houston:
  
  In the 380 HSFO segment, all selected ports registered undercharging. Weekly averages rose by 7 points in Rotterdam and Houston, while decreasing by 4 points in Singapore and a significant 41 points in Fujairah, where the MDI index dropped below the $100 mark.
  
  In the VLSFO segment, all ports remained undervalued according to the MDI. Weekly averages rose by 1 point in Rotterdam and 8 points in Houston, but declined by 1 point in Singapore and 5 points in Fujairah.
  
  In the MGO LS segment, Houston shifted to the overcharge zone, with the average weekly ratio increasing by 8 points. All other ports remained undervalued, with weekly levels declining by 21 points in Rotterdam and 25 points in Singapore. In Fujairah, the underprice rate rose by 17 points. Both Rotterdam and Singapore MDI indices fell below the $100 mark.
  
  By week's end, the balance between overvalued and undervalued ports in the 380 HSFO and VLSFO segments remained unchanged, while in the MGO LS segment, Houston emerged as the sole overpriced port amid overall undervaluation. We foresee minimal shifts in the MDI port index next week, with the prevailing trend of fuel underestimation persisting.
  
  More information on the correlation between market prices and the MABUX digital benchmark is available in the “Digital Bunker Prices” section of mabux.com.
  
  Danish Shipping has announced its intention to comply with a ban on scrubber water discharge and has urged for strict enforcement. Following an agreement reached by a wide political consensus, ships navigating through Danish waters will no longer be permitted to discharge exhaust gas system wash water. This ban on scrubber water discharge will be enforced within Denmark's territorial sea, extending up to 12 nautical miles (approximately 22 km) from the coastline. The agreement also commits Denmark to advocate for similar bans in the Baltic Sea and North Sea through regional sea conventions HELCOM and OSPAR. The ban will be implemented in two phases: from 1 July 2025, for ships using scrubbers in open operation that discharge wash water directly into the sea, and from 1 July 2029, for ships employing scrubbers in closed operation.
  
  The Panama Canal Authority anticipates a return to normal transit capacity by next year, following a period of reduced capacity due to low water levels. This decrease in transits has been notable after Panama recorded its third-driest year on record in 2023. According to the authority, the canal has averaged 27 transits per day this year, a decline from the usual 36 transits per day during the rainy season.
  
  Next week, we anticipate continued market volatility with irregular shifts in bunker indices.
  Source: MABUX
- 2024-04-18
  LNG Bunkering Sales Off to a Strong Start in 2024
  Liquefied natural gas (LNG) remains the fuel of choice for lower-carbon shipping, despite the rise in orders for vessels equipped with dual-fuel methanol and ammonia engines, according to Rystad Energy analysis. While question marks remain around just... Read more Liquefied natural gas (LNG) remains the fuel of choice for lower-carbon shipping, despite the rise in orders for vessels equipped with dual-fuel methanol and ammonia engines, according to Rystad Energy analysis. While question marks remain around just how environmentally friendly LNG is as a shipping fuel, its price competitiveness, abundant supply and well-developed infrastructure give it an advantage over the alternatives. This is particularly evident with LNG bunkering; fueling ships with LNG.
  
  More than 2,400 vessels are equipped to operate on LNG globally, with another 1,000 vessels ordered, yet to be delivered. It's worth noting that half of the operational LNG-fueled vessels are LNG carriers. These ships use boil-off gas as fuel, reducing their reliance on external LNG bunkering. Even excluding LNG carriers, the fuel remains the most common choice for dual-fuel ships in the global fleet.
  
  Car carriers have emerged as a significant driver of LNG adoption in the shipping industry, alongside container ships and LNG carriers. More than 75% of new car carrier orders in 2023 were for dual-fuel LNG engines. Many of these new ships can be adapted to use alternative clean fuels, such as ammonia or methanol, outling a commitment to long-term sustainability.
  
  Despite the growth in LNG-fueled fleets and bunkering, methane slip (gaseous methane emissions) is still a significant challenge for the maritime sector. Methane slip occurs when unburned methane escapes into the atmosphere. It is a critical concern for the industry and needs to be addressed if the environmental benefits of LNG are to be fully realized.
  
  Methane slip can occur not only during the combustion process in ship engines but also during the bunkering process. This is heavily influenced by the quality of infrastructure and the efficiency of the technology employed. The industry must work closely with regulators and policymakers to establish strict standards and best practices for bunkering operations. Implementing effective monitoring and reporting mechanisms to track and mitigate methane emissions across the supply chain is paramount
  
  LNG bunkering showing no signs of a slowdown
  
  LNG bunkering is usually done via three main methods: truck-to-ship (TTS), pipeline-to-ship (PTS) and ship-to-ship (STS). In 2023, LNG bunkering hit a record high with 4.7 million cubic meters delivered globally, up 62% compared to 2022. This surge was primarily driven by a strong uptick in STS deliveries which doubled in 2022.
  
  Several factors are fueling the surge in LNG bunkering demand, including stricter regulations, economic benefits and expanding infrastructure. Based on data for the end of March, LNG bunkering sales in 2024 are off to a strong start, with 1.9 million cubic meters already sold. This is close to the total volume sold in 2022, suggesting the potential for a significant increase by year-end. If so, total LNG bunker sales could surpass 7 million cubic meters by end-2024, highlighting the importance of LNG to maritime business and trade.
  
  Burgeoning activity represents promising growth for LNG bunkering in 2024 with the growing number of LNG-powered vessels in the global fleet, attractive pricing relative to conventional marine fuels such as very low-sulfur fuel oil (VLSFO) and the continued push for cleaner fuel alternatives from various regulatory bodies expected to drive further growth.
  
  Ship-to-ship (STS) operations clearly favored
  
  Despite a significant surge in LNG prices in 2022, STS transfers accounted for 2.9 million cubic meters, driven primarily by a strong uptick in STS deliveries in Europe and other markets such as mainland China. By contrast, PTS and TTS volumes maintained modest year-on-year growth in 2022, with these modes continuing to serve critical segments such as passenger and roll-on-roll-off (Ro-Ro) vessels.
  
  STS bunkering is expected to accelerate, particularly in Europe, given its position as a major maritime hub with 85 LNG bunkering ports and the fact that a rising number of ports are offering STS capabilities. In Asia, 26 ports offer LNG bunkering, led by China, Japan and South Korea. While LNG bunkering facilities exist in Africa and South America, these regions have not yet seen significant activity.
  
  Ro-Ro/passenger vessels and container ships have consistently held the top two positions in STS LNG bunkering. In 2023, passenger vessels saw 632 STS LNG bunker operations, closely followed by containerships with 201 operations. This dominance can be attributed to their regular refueling needs and the growing presence of LNG-powered vessels within their fleets. For example, in 2023, a Ro-Ro/passenger vessel operating between Finland and Sweden led with 240 bunkering events. Source: Oilprice.com
- 2024-04-18
  EU Sanctions on Russia Face Legal Challenges
  It is fair to say that the European Union's sanctions regime against Russia has had a bit of a wobble in recent weeks, particularly with regard to the list of entities and people that the bloc has imposed asset freezes and visa bans on since the full-scale... Read more It is fair to say that the European Union's sanctions regime against Russia has had a bit of a wobble in recent weeks, particularly with regard to the list of entities and people that the bloc has imposed asset freezes and visa bans on since the full-scale invasion of Ukraine in 2022.
  
  As the European Union considers expanding the sanctions list, which currently includes 2,177 individuals and entities, three people were removed from the list in March during its routine biannual review, which requires the unanimous agreement of all 27 EU member states.
  
  While that is a relatively small number, the delisted individuals were notable -- Arkady Volozh, the co-founder of the Russian Internet giant Yandex; businessman Sergei Mndoiants; and Jozef Hambalek, a Slovak national and head of the Russian nationalist Night Wolves motorcycle club in Europe.
  
  Hambalek was the first EU national to be blacklisted in 2022. (Some of the other blacklisted individuals had EU passports in addition to their Russian citizenship.) When the entire list is up for renewal again in September, it's likely that more names will be removed, largely due to three recent rulings in the EU's Luxembourg-based General Court, a constituent part of the Court of Justice of the European Union.
  
  Deep Background: On March 20, the General Court ruled that Nikita Mazepin, a former Formula One driver and son of the Russian oligarch Dmitry Mazepin, should be removed from the list. The EU has maintained that Mazepin senior is a member of Russian President Vladimir Putin's inner circle and has supported actions undermining the territorial integrity of Ukraine. Last fall, an EU court backed Brussels' reasoning on this in a landmark verdict.
  
  When it comes to Mazepin junior, however, the General Court noted that the EU had failed to prove any link between father and son -- beyond the obvious family ties, that is -- and had insufficient evidence to apply restrictive measures on him.
  
  And then, on April 10, the Luxembourg court delivered another legal blow for Brussels when it ruled that Petr Aven and Mikhail Fridman, both major shareholders in one of Russia's biggest financial institutions, Alfa Bank, should also be delisted.
  
  The judges noted that there may very well be "a degree of proximity" between Aven and Fridman on one side and Putin or his entourage on the other, but that the EU had failed to demonstrate that the pair either supported actions and policies undermining Ukraine's independence or provided material or financial support to destabilize the country.
  
  Drilling Down
  
  It's important to remember that Mazepin junior, Aven, and Fridman do still remain under EU sanctions. How come? First of all, the EU can appeal the verdict within a period of two months and 10 days. Second, Brussels is also using something of a legal quirk in the sanctions regime to keep them blacklisted.
  The EU has argued that the three men's judgments only cover the period from their initial listings in February 2022 to March 2023. Since then, the EU has renewed the sanctions list, with the three men's names included, both in September 2023 and, most recently, last month. According to EU officials, these renewals are more than just a technicality; in fact, they produce new lists every six months as some names are added and some are removed.
  In this way, the EU is forcing the still-sanctioned individuals to file a new case at the European Court of Justice (ECJ) to challenge the most recent sanctions update. Legal proceedings are time-consuming, and when the time for renewal comes around every March and September, the wheels of justice are still turning, enabling the EU to stay ahead.
  This was how the EU managed to keep former Ukrainian President Viktor Yanukovych on a sanctions list until 2022, even though he won his first case in an EU court back in 2019 and then, over the next two years, won another two legal battles.
  The extra time that Brussels is buying itself could allow it to present additional evidence for the court to consider. This is what happened to Violetta Prigozhina, the mother of the now-deceased Russian oligarch and mercenary leader Yevgeny Prigozhin. In March 2023, she became the first person challenging the EU's Russia sanctions to win at the ECJ. But according to sources familiar with the file who don't have the authority to speak on the record, the EU then managed to present additional details. Prigozhina has remained sanctioned ever since.
  To date, 115 cases have been filed at the EU court requesting the delisting of people or companies. Many are filed by rich, sanctioned Russian businessmen who are able to spend vast sums on European lawyers to fight their cases. So far, the EU has won 33 cases and only lost eight -- a pretty decent scorecard for Brussels. The recent trio of losses could set a precedent, though, and mean more legal blows for the EU in the months ahead.
  Ultimately, it remains a political decision whether those three Russians and others remain listed come September. For pretty much every renewal so far, Hungary has attempted to leverage its veto by asking for some names to be dropped. Previously, the EU managed to secure another six-month rollover by offering to remove people that the EU's own legal service marked as "weak" due to insufficient evidence.
  For example, last fall, two lesser-known Russian businessmen, Aleksandr Shulgin and Farkhad Akhmedov, were removed from the list. But considering that Budapest had previously asked for Aven, Fridman, and Mazepin junior to be removed, they are likely to make a similar request soon enough, especially since they are now backed by the EU's own court on the matter.
  Looking Ahead
  
  EU leaders are gathering in Brussels for another summit on April 17-18. The meeting will mainly focus on economic issues and relations with Turkey, but attendees will also talk about Ukraine and how the EU can boost its defense industry in order to send more arms to Kyiv.
  
  A few days before the EU leaders meet, on April 16-17, the National Conservatism Conference (often referred to as "NatCon") will take place in the EU capital. The annual event, bringing together right-wing politicians and think tankers, will be headlined by Hungarian Prime Minister Viktor Orban and the pro-Brexit British politician Nigel Farage. Expect a lot of Brussels-bashing and talk of how Euroskeptic parties must win the upcoming European Parliament elections. Source: Oilprice.com
- 2024-04-18
  Europe Moves Forward with Major Hydrogen Projects
  The net-zero carbon hydrogen industry is moving forward from pilot-scale projects of 10-20 MW of electrolysis capacity to large-scale projects of 100-200 MW and larger. While the discrepancy between the number of announced projects and those reaching... Read more The net-zero carbon hydrogen industry is moving forward from pilot-scale projects of 10-20 MW of electrolysis capacity to large-scale projects of 100-200 MW and larger.
  
  While the discrepancy between the number of announced projects and those reaching financial close remains large, some of the more credible projects are getting financed and starting construction.
  
  Now investors and financiers are searching worldwide for optimal arrangements, locations offering the possibility of large-scale clean power production with high load factors, combined with strong public support to offset cost.
  
  Their most advanced projects are currently in Europe, where large-scale schemes are moving forward under clear EU directives and regulatory regimes.
  
  Meanwhile they are looking elsewhere, closely watching where the right combination of advantages will appear as they anticipate Europe’s inevitable need to import carbon-free hydrogen to meet its ambitious clean energy objectives. Australia, the Americas, and the Middle East and Africa (MEA) are all in their sights.
  
  Europe leads the way
  
  “We tend to put money where we see a case to work,” says Amir Sharifi, Chief Investment Officer of Hy24.
  
  “It’s not just about geography, it’s a matrix between the geography and a certain vertical within the hydrogen value chain.
  
  “In practice we’ve started with Europe, it’s the most advanced geography in terms of supporting regulations,” he adds.
  
  Hy24, a joint venture of the Paris-based private equity company Ardian and investment fund FiveT Hydrogen, manages the Clean Hydrogen Infrastructure Fund with €2 bn from more than 50 investors including major industrial companies.
  Related: Hedge Funds Dump U.S. Energy Stocks to Buy Crude Options
  
  The fund life is 12 years from its start in 2022 with expectation of asset sale. Its investments have gone into countries with strong state support programs, where ample wind and sunshine offer large amounts of low-cost power production in Europe’s northern and southern peripheries.
  
  It has invested in Everfuel, the Danish developer whose founder, a former Senior Vice President at Nel Hydrogen, is well known in the industry. Everfuel is working in the Nordic countries, the Netherlands and Germany, with a 20MW electrolyser to begin operation this year.
  
  It has also invested in start-up company H2 Green Steel, which is developing a fully integrated plant in Boden, Sweden, now under construction with 700MW electrolysis capacity. The project offers numerous advantages, with low cost hydropower, proximity of iron ore mines and ports, available land, and support from the Swedish government.
  
  “All of these factors made us comfortable investing in a new steel plant, the first new plant in Europe in 50 years,” says Sharifi.
  
  “We already have long-term offtakes, with €3.5bn debt to finance the construction, and €1.5bn equity, of which we have been the lead investor.”
  
  In Spain, Hy24 has taken an ownership position in Enagas Renovable, in partnership with gas transmission operator Enagas, with a large portfolio of renewable fuels projects. They have invested in a joint venture for green hydrogen production with offtake by Spanish oil and gas companies including Repsol and CEPSA.
  
  Sharifi emphasizes the importance of European regulations to make these investments feasible by creating industrial demand. These include the revised Renewable Energy Directive (RED III) with its binding targets for renewable fuels of non-biological origin in the transport and industry sectors, and the introduction of the carbon border adjustment mechanism (CBAM), which ensures that steel produced with green hydrogen will compete against imported steel produced by carbon-intensive methods.
  
  Large but limited
  
  Noé van Hulst, who is Special Advisor for Hydrogen to the International Energy Agency, points to another key piece of the European hydrogen landscape now coming into place. It is the Hydrogen Backbone, the repurposing of gas pipelines and development of new pipeline infrastructure to connect the Netherlands’ ports and main industrial clusters, now financed and under construction.
  
  The project, led by Dutch natural gas company Gasunie, was launched last year at Port of Rotterdam, where a dedicated 32-km hydrogen pipeline – HyTransPort – is being built. The Hydrogen Backbone will eventually link to Germany and to Belgium.
  
  The pipeline system under development is a key support for projects now planned and under construction on the Maasvlakte, the man-made westward extension of the Port of Rotterdam.
  
  Shell’s Hydrogen Holland I project on the Maasvlakte is now under construction. A 200MW electrolysis plant, powered by electricity generated by the Hollandse Kust (Noord) offshore wind farm, will produce hydrogen for the Shell Energy and Chemicals Park through the HyTransPort pipeline. Thyssenkrupp Uhde will fabricate the alkaline water electrolysis plant.
  
  The German state-owned energy company Uniper is pursuing its H2Maasvlakte project, with 100MW of electrolysis capacity to produce green hydrogen by 2026, and planned expansion to 500MW by 2030. US company Plug Power Inc. will provide PEM electrolyzer technology.
  
  Meanwhile in France, Air Liquide’s Normand’Hy project has received public funding for development of a 200 MW electrolysis plant to supply renewable and low-carbon hydrogen to a TotalEnergies refinery and other industrial users in the Normandy industrial basin, starting from the second half of 2026 according to news reports.
  
  While these large projects are impressive, van Hulst thinks the base of active projects in Europe is far too low.
  
  “Europe is advancing more slowly than expected,” he says. “There’s still too much uncertainty about the support schemes, too much uncertainty about national implementation of the European directives that have finally been concluded.”
  
  “We really need to accelerate to get closer to the EU targets.”
  
  Looking afield
  
  Despite his concerns, van Hulst does see hydrogen imports to Europe as inevitable before 2030. He refers to Germany’s H2Global auctioning system now underway for offtake agreements for green ammonia, methanol and e-fuels. The results of the first round of auctioning, with €900m in subsidies, are expected soon. The outcome will inform subsequent rounds of auctioning with the addition of €3.5bn to the program announced by the German government earlier this year.
  
  "The import volumes before 2030 will be relatively small, then hopefully ramp up by 2030 and after with higher volumes,” says van Hulst.
  
  An additional window will open with participation of The Netherlands in a €600m auction, the first Dutch/German joint auction through the H2Global mechanism that will take place before end of year.
  
  “We’re going to see who is really willing to sign contracts, which companies and export countries,” he says.
  
  Apart from the auctioning mechanisms, he expects the Netherlands, Germany, and Belgium to develop bilateral export-import corridors and projects with individual countries.
  
  Load factor
  
  Hy24 is looking beyond Europe, with approximately 50% of the fund devoted to projects in Europe, the Middle East and Africa (EMEA), and the other half to be split equally among the Americas and Asia-Pacific region.
  
  It has invested in Intercontinental Energy, with projects in Oman and Australia currently in pre-FID study phase. They are located in coastal desert regions with combined wind and solar production yielding a very competitive load factor of close to 70%.
  
  “The load factor is very important,” says Amir Sharifi. “There are not many locations in the world with the combination of a lot of available space and a high load factor.”
  
  “To be able to produce hydrogen at most competitive cost, it requires access to power that will be both very cheap on capex, which requires large scale, because balance of plant is usually a big element,” he says.
  
  “If you have more volumes of assets then you have less balance of plant as a percentage, so you have big economies of scale.”
  
  The fund also has a team in the US seeking investment opportunities in anticipation of new regulations and tax incentives for green hydrogen under the Inflation Reduction Act (IRA).
  
  Leading regs
  
  Hy24 has entered a strategic framework agreement with the Abu Dhabi-based clean energy company Masdar to pursue co-investment in large scale green hydrogen production projects worldwide.
  
  As they look to where production can occur at most competitive cost, they must remain quite flexible because of the changing regulatory environment in different regions.
  
  “Looking back 18 months ago, we thought the IRA in the US would be a trigger,” says Florian Merz, who is Masdar’s Associate Director of Business Development for Europe.
  
  “Now the US is working on its regs, apparently trying to get them close to European standards, and projects are delayed waiting for this.
  
  “Also, Japan-Northeast Asia is now deciding on regulation and relevant support schemes.
  
  “So, after initial delay, Europe is in the lead in terms of regulatory clarity,” he says. Source: Oilprice.com