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NewBase Energy News 04 June 2021 - Issue No. 1435 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E:Bee’ah ties up with UK group for waste-to-hydrogen project
TradeArabia + NewBase + http://www.chinooksciences.com/
Bee'ah, a UAE-based leader in integrated environment and waste management, said it has
collaborated with UK-based Chinook Sciences to set up the region’s first waste-to-hydrogen
project in the UAE, which will also boast a green hydrogen generation plant and a hydrogen
vehicle fuelling station.
The waste-to-hydrogen project is an evolution of Bee’ah and Chinook Sciences’ $180 million
waste gasification to energy project and addresses the increased market demand in the region for
new sources of renewable energy such as green hydrogen.
Chinook Sciences Chairman and CEO Dr. Rifat Chalabi, who is on a visit to the UAE, signed the
agreement in the presence of Salim Al Owais, Chairman of Bee'ah, and a delegation of senior
officials from both entities.
The project is envisioned to be the first of many such facilities, established through the long-
standing collaboration between the two sides. With an innovative approach of having the waste-to-
hydrogen plant adjacent to the fuelling station, this project will overcome the challenges of costly
transportation of hydrogen, said the statement from Beeah.
The fuelling station will use green hydrogen generated from the waste-to-hydrogen plant from
non-recyclable plastic waste and waste wood. The green hydrogen will be fed into the fuelling
station to power hydrogen vehicles, it added.
On the deal, Al Owais said: "Green hydrogen will be a vital pillar of our future energy landscape
and Bee’ah has been looking into this market for some time now and Chinook in alignment with
our long-term strategy to develop new, sustainable energy solutions."
Cinook's award winning RODECS® technology is
the worlds only universal thermal treatment
system, and uses our multi-patented Active
Pyrolysis® process.
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"As a sustainability leader, Bee’ah is keen to further support the UAE in its hydrogen economy
ambitions, energy diversification and decarbonisation efforts," he stated.
Dr Chalabi said: "We are very excited to use Chinook Sciences’ patented Rodecs gasification and
pyrolysis technology in the UAE, which breaks down hydrocarbons from waste through advanced
thermal treatment to release and recover green hydrogen."
"When the green hydrogen is used in vehicles, it emits only water and no carbon emissions," he
noted. Dr Chalabi said through the use of Chinook’s Rodecs technology, the cost of green
hydrogen from the plant shall be very competitive and has the potential to be equal to or even less
than the cost of diesel and gasoline."
"At maximum production capacity, the plant shall be capable of fuelling 1,000 hydrogen-powered
large vehicles per day," he added.
Khaled Al Huraimel, Group CEO of Bee'ah, which is operational in the UAE, KSA and Egypt, said:
"As a waste management leader in the Middle East, we are proud to pursue the first waste-to-
hydrogen solution in the region. This project will showcase the potential of waste-to-hydrogen."
The UAE has previously announced its aim to become a major hydrogen producer, and to reduce
carbon emissions by 24 per cent by 2030.
Plans include investment in green hydrogen, which is produced using renewable energy, like solar
power as well as using carbon-capture technologies to create what is known as blue hydrogen.
Chinook Technologies
Thermal treatment technology uses an intelligent automated process that results in processing feedstock to generate
high performance activated carbon, control the property of the generated AC, and synchronize it with high production
of high purity hydrogen (a fuel-quality gas that is used in industrial and transportation applications). Chinook has over
200 patents granted over time, which are core to the unique fingerprint of our technology.
The control and optimization algorithms which provide a dynamic control system which can react and adjust the
processing parameters automatically during the process batch. This fine degree of control ensures optimum thermal
processing and optimal processing of the feedstock for the desired output application. "Bee’ah has always
recognised the value of energy recovery from waste and through this new project, we aim to
support a circular economy across multiple fronts throughout the region," he added.
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Saudi's Prince Abdulaziz calls IEA's net-zero road map 'La La Land sequel'
Trade Arabia + NewBase
Saudi Energy Minister Prince Abdulaziz Bin Salman has read the International Energy Agency's
(IEA) recent blockbuster report outlining a road map for the world to achieve net-zero carbon
emissions by 2050 and is not impressed.
"I would have to express my view that I believe it is a sequel of [the] La La Land movie," Prince
Abdulaziz told reporters after Opec+ ministers met to affirm production levels through July. "Why
should I take it seriously?"
The IEA's road map concluded that if the world
were to slash carbon emissions to net-zero over
the next three decades, global oil supplies would
need to shrink more than 8% annually, down to
24 million bpd in 2050, from pre-pandemic levels
of just above 100 million bpd, a Saudi
Gazette report said. That would mean no new oil
and gas upstream projects should be developed.
But it is not only the IEA that has roiled the oil
industry. IOCs are scaling back major swaths of
their oil and gas portfolios under environmental
pressure from regulators, climate change activists
and investors.
Within a span of two days in late May, shareholders at ExxonMobil and Chevron delivered sharp
rebukes to the companies over their sustainability plans, while a court in the Netherlands dealt a
landmark ruling ordering Shell to cut its emissions.
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For Saudi Arabia, the largest exporter of crude and owner of the world's most valuable company in
oil giant Aramco, there is no existential angst, Prince Abdulaziz said.
In April 2020, as the global oil market cratered from the pandemic and Saudi Arabia launched a
price war against Opec+ ally Russia in a dispute over production policy, Prince Abdulaziz directed
Aramco to boost its crude production capacity to 13 million bpd from its current 12 million bpd, not
including the Neutral Zone the Kingdom shares with Kuwait.
Aramco, holder of the exclusive rights to pump crude within Saudi Arabia, is currently conducting
engineering studies on how to achieve the target, which would come at a cost of several hundred
millions of dollars.
"Don't be surprised if we come back with additional announcements" of further expansions, Prince
Abdulaziz said, though he declined to elaborate.
OVERLY AMBITIOUS
Opec, of which Saudi Arabia is the largest producer, has warned that if governments heed the
report and follow its recommendations, the oil market would be destabilised and fossil fuel
investment jeopardised, endangering the economies of its members.
"The claim that no new oil and gas investments are needed post-2021 stands in stark contrast
with conclusions often expressed in other IEA reports and could be the source of potential
instability in oil markets if followed by some investors," Opec said in a report to members seen by
S&P Global Platts.
Opec added that "while the [net zero] scenario seems overly ambitious in terms of assumptions
and results, it will certainly influence investment decisions, which may curb demand (growth) for
fossil fuels, such as oil and gas, as many policymakers and oil and gas companies use the IEA's
scenarios for their strategic planning."
Saudi officials, including Aramco CEO Amin Nasser, have repeatedly said they expect oil to
remain a dominant energy source for decades to come, and the company's cost of production
rank among the industry's lowest, owing to the country's vast and relatively easily accessible
crude reserves.
That makes Saudi Arabia a likely survivor, even if peak demand scenarios come to pass and
global oil demand shrinks. The country still has some 300 billion barrels of proven oil reserves,
according to BP's latest statistical review, well ahead of Russia and the US. Based on average
2019 production of close to 9.8 million bpd, Saudi oil reserves would last more than 82 years.
By contrast, most European energy majors are already planning to wind down their oil and gas
portfolios in the coming years and shift to renewables to help cut emissions.
With growing shareholder activism pressuring listed Western energy majors to ditch their fossil
fuel, state-run oil majors like Aramco less exposed to public pressure are well placed to pick up
the slack, market watchers believe.
LOW-COST OIL
Although Aramco has slashed cut its capex budget for 2021 due to the fiscal strains caused by the
pandemic, Saudi officials say production capacity expansion is still a strategic aim.
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Saudi Arabia is the market's primary swing producer, showing the most willingness among
producing nations to tighten its taps to prevent price crashes, while also unleashing its spare
capacity in times of supply tightness.
Saudi Arabia pumped 8.48 million bpd in May, Prince Abdulaziz said, rising to 9.49 million bpd in
July under the Opec+ supply accord.
But though oil makes up the vast majority of Saudi Arabia's revenue, it is also investing in other
forms of energy, he said, to forge a balance between monetising its hydrocarbon resources and
also being an environmentally conscious country.
The kingdom in recent years has announced several solar projects, including its first utility-scale
renewable development, the 300-MW Sakaka solar power plant, as well as billions of dollars in
investment in hydrogen facilities.
"Saudi Arabia is no longer an oil country, it's an energy-producing country," Prince Abdulaziz said.
"Not only we are an energy country, we are a very competitive energy country, and we are low-
cost in producing oil, low cost in producing gas and low-cost in producing renewables and will
definitely be the least-cost producer of hydrogen. I urge the world to accept this as a reality. We
are going to be winners of all these activities," he added. --
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U.S: Three Exxon refineries top the list of U.S. polluters
Reuters + NewBase
Exxon Mobil's U.S. oil refineries pump out far more lung-damaging soot than similarly-sized
facilities operated by rivals, according to regulatory documents and a Reuters analysis of pollution
test results.
The Texas-based firm's three largest refineries - two in Texas and one in Louisiana - are the
nation's top three emitters of small particulate matter, according to the analysis of the latest tests
submitted to regulators by the nation's 10 largest refineries.
The three Exxon refineries together averaged emissions of 80 pounds per hour, eight times the
average rate of the seven other refineries on the top-ten list, some of which are larger than
Exxon's plants, the analysis shows. The top polluter, Exxon's Baton Rouge refinery, averaged 138
pounds per hour. (See below graphic).
The performance reflects the firm's inadequate spending to cut emissions, said Wilma Subra, a
Louisiana-based scientist who formerly served on the Environmental Protection Agency's National
Environmental Justice Advisory Council.
"Exxon has all the resources in the world to lower its pollution rates dramatically," she said.
The company has taken heat for years for its environmental performance. This week, Exxon lost
at least two seats on its board of directors to an activist hedge fund seeking to force the firm to
reckon with climate change. read more
Exxon (XOM.N) said in a statement that it tries to comply with environmental laws and has
invested billions of dollars to reduce emissions over the last two decades.
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Oil-and-gas pollution has a disproportionate impact on poor and minority communities, which are
often located near industrial sites. Reuters interviewed nearly three dozen residents in the
predominantly Black neighborhoods near Exxon's Baton Rouge refinery. About a third said they
either had breathing problems or knew someone who did.
Small particulate matter is among the most harmful pollutants. Made up of particles 50 times
smaller than a grain of sand, it can bond with other toxins, infiltrate the blood stream, and damage
the heart, lungs and nervous system. A small increase in long-term exposure to small particulate
matter also leads to a large increase in COVID-19 death rates, according to a recent Harvard
University study.
"Particulate matter pollution is deadly, but you're not going to see it written on anyone's
tombstone," said Eric Schaeffer, executive director of the Environmental Integrity Project, a
Washington D.C.-based watchdog group.
The EPA requires plants to restrict small particulate matter emissions to 1 pound or less for every
1,000 pounds of coke burned in a refinery's catalytic cracking units.
But Exxon's Baton Rouge plant is
the only major U.S. refinery that
doesn't have to meet that standard
because of an EPA rule that
exempts "cat crackers" that were
built before 1976 and haven't been
modified since.
Refineries also have to meet state
standards for particulate-matter
pollution. But those limits can vary
widely among states - and among
different facilities within states -
based on the strictness of state
regulators and whether a refinery
has agreed to tighter limits to settle lawsuits. And Louisiana regulators allow much higher pollution
levels at Exxon's Baton Rouge plant than at other state refineries.
“There is a surprising amount of unevenness among states" in enforcing pollution limits, said
Philip Mattera, research director at Good Jobs First, a Washington-based watchdog group.
“People don’t realize how much the EPA delegates responsibility on big environmental laws to
state agencies.”
OLD POLLUTION SCRUBBERS
Exxon’s two big oil refineries in Texas – in Beaumont and Baytown – are also among the top three
polluters identified by Reuters. But Exxon's 517,000-barrel-per-day Baton Rouge plant produces
far more soot.
The plant's emissions of small particulate matter hit a peak of 350 pounds per hour during an
independent test conducted in January 2020 by an engineering firm Exxon hired to demonstrate
its regulatory compliance.
Emissions averaged 255 pounds per hour during the test. That exceeded a limit, imposed on the
refinery by the Louisiana Department of Environmental Quality (LDEQ), of 234 pounds per hour –
one of the highest limits in the country, according to regulatory documents. Other similarly-sized
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refineries in Louisiana and other states have state soot emissions limits closer to 50 pounds per
hour. The LDEQ declined to comment on the pollution limits it sets for Exxon's Baton Rouge plant.
Exxon officials blamed the refinery's high emissions on low water pressure in its 1970s-era wet
gas scrubber, according to company correspondence with the LDEQ. Exxon told the state it had
since resolved the issue.
Maintenance on such scrubbers, commonly used to control pollution, can lower emissions but
requires shutting down a cat cracker for several weeks, hurting profitability, according to Exxon
disclosures to the LDEQ. Completely new systems can cost more than $1 billion.
Because the Baton Rouge refinery's two catalytic crackers were built during World War Two –
among the first such units in the country – they are exempt from federal EPA standards.
'GIVE US GOOD AIR'
The Baton Rouge refinery, more than a century old, borders neighborhoods with sky-high rates of
childhood asthma.
Seabell Thomas, 77, whose home is separated from the refinery by Interstate 110, said her son's
asthma was so bad that he routinely visited the emergency room as a child. She has since been
campaigning to pressure Exxon to clean up.
"When I wake up each morning, I have to confront two demons: pollution from the highway and
the Exxon refinery," she said. "We, as Black people, ask, 'God, how long can you allow this?
Please, give us good air to breath.'"
In a group of census blocks that includes Thomas' home, childhood asthma rates were more than
double the statewide average, according to a 2019 report by the Louisiana Health Department.
Emergency-room visits for childhood asthma in the area also more than doubled the statewide
rate.
"I grew up thinking asthma was an African-American disease because so many kids in the
neighborhood had inhalers," said Sonyja Renee Thomas, the daughter of Seabell Thomas. "Only
later, as an adult, did I realize how much pollution factored into it."
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EXXON RIVALS RUN MUCH CLEANER
Big refineries run by Exxon's rivals are doing much better at controlling soot. Ironically, many of
them are using technology invented and licensed by Exxon, according to disclosures by Exxon
and environmental regulators.
Specialists in industrial pollution say the differences in performance can be attributed to any of a
number of factors: rivals' equipment could be newer; maintenance schedules may be more
frequent; and refining processes before wet gas scrubbing may also be optimized to reduce soot.
All of that takes money. In many cases, it also takes lawsuits.
Companies such as BP plc (BP.L), Marathon Petroleum (MPC.N), Phillips 66 (PSX.N) and Valero
Energy Corp (VLO.N) have made agreements with the EPA in recent years to slash emissions
below federal standards to help settle pollution-related litigation, regulatory disclosures show.
These more restrictive limits are laid out in so-called consent decrees, which cover the operations
of scores of U.S. refineries and influence permitted pollution levels set by states.
For example, Marathon's refinery in Garyville, Louisiana, operates an Exxon scrubber which has
undergone numerous upgrades since being installed in 1979, company spokesman Jamal Kheiry
said. The refinery's permit limit, set by the state, is 0.6 pounds per 1,000 pounds of burned coke,
well below the EPA limit of one pound. During its latest test, Garyville's small particulate matter
emissions were just 0.11 pounds. The plant is slightly larger than Exxon Baton Rouge.
"The low emissions numbers reflect robust emissions controls we have implemented," Marathon's
Kheiry said.
Exxon's three largest
refineries also operate
under a consent decree,
signed with the EPA in
2005 after the company
was sued by the EPA and
Justice Department for
alleged Clean Air Act
violations. But the
agreement includes only a
voluntary target for Exxon
to limit soot emissions to
half the EPA standard,
which it has not done.
For locals around the
Baton Rouge refinery,
pushing for Exxon to
reduce pollution can be
difficult given its economic
and political clout as a major Louisiana employer.
Sidney Poray, 60, has lived near the refinery for nearly 30 years and has worked with activist
groups to monitor the refinery's emissions. But he's not optimistic their work will make much
difference. "Of course, I care about pollution," Poray said. "But what am I going to do? We're
talking about Exxon."
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 10
NewBase June 04-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Climbs Near Highest Since 2018 With More Iran Talks Expected
Bloomberg - Elizabeth Low and Alex Longley
Oil crept higher with prices trading near their highest level since 2018. WTI for July delivery
rose 0.6% to $69.42 a barrel at 13.05 London time after falling as much as 0.7% earlier. Futures
are up 4.2% so far this week.
Brent for August settlement gained 0.58% to $71.90
Futures in New York erased earlier losses to trade above $69 a barrel. A significant draw
in American crude stockpiles added positive signs to a market buoyed this week by the
deferring of expectations of when a nuclear deal with Iran would be signed.
A U.S. State Department spokesman said on Thursday that there should be a sixth round of
negotiations to revive the nuclear deal and “there’s just about every expectation there will
be subsequent rounds beyond that.”
Oil price special
coverage
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The Iranian talks come against the backdrop of a market where demand is recovering
sharply in the west, but remains patchy in parts of Asia. OPEC+, which agreed to hike its
output in July this week, may need to keep adding barrels to the market in August or
September to meet the recovery, according to Gazprom Neft PJSC Chief Executive Officer
Alexander Dyukov.
“The market can easily absorb the incremental supply from OPEC+,” said Dominic
Schnider, head of commodities and Asia Pacific foreign exchange at UBS Global Wealth
Management. There’s still some risk due to the virus resurgence in Asia, but it’s unlikely to
derail the global recovery, he said.
The market has firmed in a bullish structure this week. The prompt timespread for Brent
was as much as 47 cents in backwardation -- where near-dated prices are more expensive
than later-dated ones. That compares with 9 cents at the start of last week.
Still financial flows into the oil market remain relatively depressed. Trading volumes have
remained light and speculative positioning in oil is relatively low, which could pave the
way for higher prices in the coming months, Citigroup analysts including Francesco
Martoccia wrote in a report.
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NewBase Special Coverage
The Energy world – June - 04- -2021
Racing for Hydrogen: How Gas Giants Are Vying to Stay Relevant
Bloomberg - Rachel Morison and Laura Hurst
The global gas industry is in an existential race: either find a way to be part of the next generation
of energy or risk getting supplanted by alternatives.
BP Plc, Sinopec, Equinor ASA and Royal Dutch Shell Plc are among the producers looking to
hydrogen to help secure demand that otherwise may falter as decarbonization speeds up. They
want to utilize existing pipelines, storage tankers and fuel supply to make blue hydrogen, a
process that uses natural gas but captures the carbon emissions and stores them.
The straightest route to net-zero emissions uses hydrogen produced by renewable electricity --
known in the industry as green hydrogen -- but the blue variety is expected to be cheaper until at
least 2030 as wind and solar power ramp up.
Gas companies aiming to lower emissions now and avoid obsolescence next decade are planning
to pour billions of dollars into building their blue businesses. At least 15 projects are scheduled to
go online through 2027 in the U.K., Germany, Norway, the Netherlands, Sweden and New
Zealand.
“Green is the destination, but we’ll get there on a blue highway,” said Al Cook, executive vice
president for development and production at Stavanger, Norway-based Equinor. “At some point,
green hydrogen might well be lower cost than blue, but that will likely not be for at least a decade.”
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Clean hydrogen could meet a quarter of the world’s energy needs by 2050, with annual sales
reaching 630 billion euros ($770 billion). Production of blue needs to be scaled up quickly because
projects that don’t come online by 2030 risk becoming uncompetitive, according to
BloombergNEF.
Green Wave
Green hydrogen is set to become cheaper than blue by 2030
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Right now, hydrogen is expensiv1..000000000000000000e+ to make without expelling
greenhouse gases, is difficult to store and is so highly combustible that NASA uses it to propel
rockets into space.
Still, demand is expected to increase six-fold by 2050 as the transportation, steel and chemicals
industries move to reduce pollution, the International Energy Agency said in its road map for net-
zero emissions published May 18.
Natural gas is used in almost all hydrogen production today. That earns the disdain of ESG
investors, environmental groups and governments trying to slow climate change because the most
common method, called steam-methane reforming, also produces large amounts of carbon
dioxide, which are dumped in the air.
The quickest way to remedy that is by capturing the carbon and storing it underground or reusing
it. The process has been around for decades, and it’s usually deployed in natural gas plants,
fertilizer manufacturing and ethanol production facilities.
Gas currently is cheaper than renewable electricity, giving blue hydrogen an advantage even with
the added costs of carbon capture and storage.
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Announced blue hydrogen projects
Bolting on carbon capture means blue hydrogen projects can be rolled out at scale from day one,
said Paul Bogers, vice president for hydrogen at Shell. The Netherlands-based company is
involved in several, including the U.K.’s Acorn Project and Net Zero Teesside, both scheduled to
go online in 2025.
“Industry by industry, you’ll see that the mix of where blue and green can be applied, and where
it’s affordable, will be different,” he said. “It’s not as simple as saying: ‘Well, here’s the crossover,
so from that point you only invest in one.”
Swapping gas for hydrogen is one way energy companies could advance their efforts to meet
increasingly strict mandates for lowering emissions. Shell previously pledged to reduce its
greenhouse gas emissions by 20% within a decade, but a court in The Hague ordered the
company on May 26 to slash them by 45% in the same time period.
Shell Only Has Hard Options to Meet Dutch Court’s Climate Order
China is the world’s largest producer of hydrogen, mostly by using fossil fuels. Spurred by the
nation’s target for carbon neutrality by 2060, China Petroleum & Chemical Corp., or Sinopec, said
it plans to have a 1 million-ton carbon capture project by 2025.
China also will cooperate with Saudi Aramco, the world’s biggest oil producer, on blue-hydrogen
projects.
The urgency for gas companies stems from the near-universal backing for green hydrogen, made
from water and renewable electricity. The cost of green hydrogen is expected to fall 80% by 2030
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and be cheaper than blue in all 28 markets analyzed by BNEF as renewable energy and the
electrolyzers using it to make hydrogen both come down in price.
Iberdrola SA, Europe’s biggest utility, is focusing on renewable power and green hydrogen,
bolstered by Spain’s commitment to spend 35 billion euros of EU stimulus on energy transition.
American industrial giant Cummins Inc. said May 24 it will partner with Iberdrola to build a factory
in central Spain for making electrolyzers.
“In the short term, there are opportunities in which you can apply blue, but in the midterm -- five to
10 years -- it’s going to be a stranded asset,” said Diego Diaz Pilas, head of new ventures at
Iberdrola.
Clean Growth
Global hydrogen production by type in net zero scenario
The European Commission wants to see as much as 470 billion euros of investment in the green
hydrogen industry, with the goal of making 10 million tons by 2030 to help reach net-zero by 2050.
Natural gas pipelines could be converted to carry hydrogen, with Belgium, the Netherlands and
Germany leading the way, EC gas official Bartlomiej Gurba said at a January conference.
“We are ready to grant subsidies for green hydrogen,” Germany’s deputy economy minister,
Elisabeth Winkelmeier Becker, said in an interview. “Other hydrogen will certainly continue to be
used, but its production will not be subsidized.”
At the moment, though, some companies will take whatever color hydrogen they can get. CF
Industries Holdings Inc. is one of the world’s biggest producers of ammonia used in fertilizers and
chemical manufacturing.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 17
The Deerfield, Illinois-based company uses gray hydrogen, made from natural gas but releasing
greenhouse gases. It now buys permits to cover emissions from U.K. production plants in Ince
and Billingham, but it’s preparing to implement carbon capture as permit prices keep rising, Chief
Executive Officer Tony Will said in an interview.
Such transitions are important for getting the clean hydrogen market off the ground, said Daryl
Wilson, executive director of the Hydrogen Council. The industry group’s members include gas
giants, automakers and Microsoft Corp.
“The marginal cost of converting gray hydrogen into blue hydrogen is much lower than jumping to
green hydrogen directly,” Wilson said. “As long as blue hydrogen is useful from an economic point
of view, there is no reason for it to go away.”
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 18
NewBase Energy News 01 June 2021 - Issue No. 1429 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 19
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil &
Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities &
gas compressor stations. Executed projects in the designing & constructing of gas
pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance
agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing
for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in
numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled
is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with more than
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management and environmental sustainability in different parts of the world. Khaled has
become a reference for many of the Oil & Gas Conferences and for many Energy program broadcasted
internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see contact details
above.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 20
Oil and Gas Upstream
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 21
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 22
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 23
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New base 04 june 2021 energy news issue 1435 by khaled al awadi

  • 1. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 04 June 2021 - Issue No. 1435 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE U.A.E:Bee’ah ties up with UK group for waste-to-hydrogen project TradeArabia + NewBase + http://www.chinooksciences.com/ Bee'ah, a UAE-based leader in integrated environment and waste management, said it has collaborated with UK-based Chinook Sciences to set up the region’s first waste-to-hydrogen project in the UAE, which will also boast a green hydrogen generation plant and a hydrogen vehicle fuelling station. The waste-to-hydrogen project is an evolution of Bee’ah and Chinook Sciences’ $180 million waste gasification to energy project and addresses the increased market demand in the region for new sources of renewable energy such as green hydrogen. Chinook Sciences Chairman and CEO Dr. Rifat Chalabi, who is on a visit to the UAE, signed the agreement in the presence of Salim Al Owais, Chairman of Bee'ah, and a delegation of senior officials from both entities. The project is envisioned to be the first of many such facilities, established through the long- standing collaboration between the two sides. With an innovative approach of having the waste-to- hydrogen plant adjacent to the fuelling station, this project will overcome the challenges of costly transportation of hydrogen, said the statement from Beeah. The fuelling station will use green hydrogen generated from the waste-to-hydrogen plant from non-recyclable plastic waste and waste wood. The green hydrogen will be fed into the fuelling station to power hydrogen vehicles, it added. On the deal, Al Owais said: "Green hydrogen will be a vital pillar of our future energy landscape and Bee’ah has been looking into this market for some time now and Chinook in alignment with our long-term strategy to develop new, sustainable energy solutions." Cinook's award winning RODECS® technology is the worlds only universal thermal treatment system, and uses our multi-patented Active Pyrolysis® process.
  • 2. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 "As a sustainability leader, Bee’ah is keen to further support the UAE in its hydrogen economy ambitions, energy diversification and decarbonisation efforts," he stated. Dr Chalabi said: "We are very excited to use Chinook Sciences’ patented Rodecs gasification and pyrolysis technology in the UAE, which breaks down hydrocarbons from waste through advanced thermal treatment to release and recover green hydrogen." "When the green hydrogen is used in vehicles, it emits only water and no carbon emissions," he noted. Dr Chalabi said through the use of Chinook’s Rodecs technology, the cost of green hydrogen from the plant shall be very competitive and has the potential to be equal to or even less than the cost of diesel and gasoline." "At maximum production capacity, the plant shall be capable of fuelling 1,000 hydrogen-powered large vehicles per day," he added. Khaled Al Huraimel, Group CEO of Bee'ah, which is operational in the UAE, KSA and Egypt, said: "As a waste management leader in the Middle East, we are proud to pursue the first waste-to- hydrogen solution in the region. This project will showcase the potential of waste-to-hydrogen." The UAE has previously announced its aim to become a major hydrogen producer, and to reduce carbon emissions by 24 per cent by 2030. Plans include investment in green hydrogen, which is produced using renewable energy, like solar power as well as using carbon-capture technologies to create what is known as blue hydrogen. Chinook Technologies Thermal treatment technology uses an intelligent automated process that results in processing feedstock to generate high performance activated carbon, control the property of the generated AC, and synchronize it with high production of high purity hydrogen (a fuel-quality gas that is used in industrial and transportation applications). Chinook has over 200 patents granted over time, which are core to the unique fingerprint of our technology. The control and optimization algorithms which provide a dynamic control system which can react and adjust the processing parameters automatically during the process batch. This fine degree of control ensures optimum thermal processing and optimal processing of the feedstock for the desired output application. "Bee’ah has always recognised the value of energy recovery from waste and through this new project, we aim to support a circular economy across multiple fronts throughout the region," he added.
  • 3. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 Saudi's Prince Abdulaziz calls IEA's net-zero road map 'La La Land sequel' Trade Arabia + NewBase Saudi Energy Minister Prince Abdulaziz Bin Salman has read the International Energy Agency's (IEA) recent blockbuster report outlining a road map for the world to achieve net-zero carbon emissions by 2050 and is not impressed. "I would have to express my view that I believe it is a sequel of [the] La La Land movie," Prince Abdulaziz told reporters after Opec+ ministers met to affirm production levels through July. "Why should I take it seriously?" The IEA's road map concluded that if the world were to slash carbon emissions to net-zero over the next three decades, global oil supplies would need to shrink more than 8% annually, down to 24 million bpd in 2050, from pre-pandemic levels of just above 100 million bpd, a Saudi Gazette report said. That would mean no new oil and gas upstream projects should be developed. But it is not only the IEA that has roiled the oil industry. IOCs are scaling back major swaths of their oil and gas portfolios under environmental pressure from regulators, climate change activists and investors. Within a span of two days in late May, shareholders at ExxonMobil and Chevron delivered sharp rebukes to the companies over their sustainability plans, while a court in the Netherlands dealt a landmark ruling ordering Shell to cut its emissions.
  • 4. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 For Saudi Arabia, the largest exporter of crude and owner of the world's most valuable company in oil giant Aramco, there is no existential angst, Prince Abdulaziz said. In April 2020, as the global oil market cratered from the pandemic and Saudi Arabia launched a price war against Opec+ ally Russia in a dispute over production policy, Prince Abdulaziz directed Aramco to boost its crude production capacity to 13 million bpd from its current 12 million bpd, not including the Neutral Zone the Kingdom shares with Kuwait. Aramco, holder of the exclusive rights to pump crude within Saudi Arabia, is currently conducting engineering studies on how to achieve the target, which would come at a cost of several hundred millions of dollars. "Don't be surprised if we come back with additional announcements" of further expansions, Prince Abdulaziz said, though he declined to elaborate. OVERLY AMBITIOUS Opec, of which Saudi Arabia is the largest producer, has warned that if governments heed the report and follow its recommendations, the oil market would be destabilised and fossil fuel investment jeopardised, endangering the economies of its members. "The claim that no new oil and gas investments are needed post-2021 stands in stark contrast with conclusions often expressed in other IEA reports and could be the source of potential instability in oil markets if followed by some investors," Opec said in a report to members seen by S&P Global Platts. Opec added that "while the [net zero] scenario seems overly ambitious in terms of assumptions and results, it will certainly influence investment decisions, which may curb demand (growth) for fossil fuels, such as oil and gas, as many policymakers and oil and gas companies use the IEA's scenarios for their strategic planning." Saudi officials, including Aramco CEO Amin Nasser, have repeatedly said they expect oil to remain a dominant energy source for decades to come, and the company's cost of production rank among the industry's lowest, owing to the country's vast and relatively easily accessible crude reserves. That makes Saudi Arabia a likely survivor, even if peak demand scenarios come to pass and global oil demand shrinks. The country still has some 300 billion barrels of proven oil reserves, according to BP's latest statistical review, well ahead of Russia and the US. Based on average 2019 production of close to 9.8 million bpd, Saudi oil reserves would last more than 82 years. By contrast, most European energy majors are already planning to wind down their oil and gas portfolios in the coming years and shift to renewables to help cut emissions. With growing shareholder activism pressuring listed Western energy majors to ditch their fossil fuel, state-run oil majors like Aramco less exposed to public pressure are well placed to pick up the slack, market watchers believe. LOW-COST OIL Although Aramco has slashed cut its capex budget for 2021 due to the fiscal strains caused by the pandemic, Saudi officials say production capacity expansion is still a strategic aim.
  • 5. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 Saudi Arabia is the market's primary swing producer, showing the most willingness among producing nations to tighten its taps to prevent price crashes, while also unleashing its spare capacity in times of supply tightness. Saudi Arabia pumped 8.48 million bpd in May, Prince Abdulaziz said, rising to 9.49 million bpd in July under the Opec+ supply accord. But though oil makes up the vast majority of Saudi Arabia's revenue, it is also investing in other forms of energy, he said, to forge a balance between monetising its hydrocarbon resources and also being an environmentally conscious country. The kingdom in recent years has announced several solar projects, including its first utility-scale renewable development, the 300-MW Sakaka solar power plant, as well as billions of dollars in investment in hydrogen facilities. "Saudi Arabia is no longer an oil country, it's an energy-producing country," Prince Abdulaziz said. "Not only we are an energy country, we are a very competitive energy country, and we are low- cost in producing oil, low cost in producing gas and low-cost in producing renewables and will definitely be the least-cost producer of hydrogen. I urge the world to accept this as a reality. We are going to be winners of all these activities," he added. --
  • 6. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 U.S: Three Exxon refineries top the list of U.S. polluters Reuters + NewBase Exxon Mobil's U.S. oil refineries pump out far more lung-damaging soot than similarly-sized facilities operated by rivals, according to regulatory documents and a Reuters analysis of pollution test results. The Texas-based firm's three largest refineries - two in Texas and one in Louisiana - are the nation's top three emitters of small particulate matter, according to the analysis of the latest tests submitted to regulators by the nation's 10 largest refineries. The three Exxon refineries together averaged emissions of 80 pounds per hour, eight times the average rate of the seven other refineries on the top-ten list, some of which are larger than Exxon's plants, the analysis shows. The top polluter, Exxon's Baton Rouge refinery, averaged 138 pounds per hour. (See below graphic). The performance reflects the firm's inadequate spending to cut emissions, said Wilma Subra, a Louisiana-based scientist who formerly served on the Environmental Protection Agency's National Environmental Justice Advisory Council. "Exxon has all the resources in the world to lower its pollution rates dramatically," she said. The company has taken heat for years for its environmental performance. This week, Exxon lost at least two seats on its board of directors to an activist hedge fund seeking to force the firm to reckon with climate change. read more Exxon (XOM.N) said in a statement that it tries to comply with environmental laws and has invested billions of dollars to reduce emissions over the last two decades.
  • 7. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 Oil-and-gas pollution has a disproportionate impact on poor and minority communities, which are often located near industrial sites. Reuters interviewed nearly three dozen residents in the predominantly Black neighborhoods near Exxon's Baton Rouge refinery. About a third said they either had breathing problems or knew someone who did. Small particulate matter is among the most harmful pollutants. Made up of particles 50 times smaller than a grain of sand, it can bond with other toxins, infiltrate the blood stream, and damage the heart, lungs and nervous system. A small increase in long-term exposure to small particulate matter also leads to a large increase in COVID-19 death rates, according to a recent Harvard University study. "Particulate matter pollution is deadly, but you're not going to see it written on anyone's tombstone," said Eric Schaeffer, executive director of the Environmental Integrity Project, a Washington D.C.-based watchdog group. The EPA requires plants to restrict small particulate matter emissions to 1 pound or less for every 1,000 pounds of coke burned in a refinery's catalytic cracking units. But Exxon's Baton Rouge plant is the only major U.S. refinery that doesn't have to meet that standard because of an EPA rule that exempts "cat crackers" that were built before 1976 and haven't been modified since. Refineries also have to meet state standards for particulate-matter pollution. But those limits can vary widely among states - and among different facilities within states - based on the strictness of state regulators and whether a refinery has agreed to tighter limits to settle lawsuits. And Louisiana regulators allow much higher pollution levels at Exxon's Baton Rouge plant than at other state refineries. “There is a surprising amount of unevenness among states" in enforcing pollution limits, said Philip Mattera, research director at Good Jobs First, a Washington-based watchdog group. “People don’t realize how much the EPA delegates responsibility on big environmental laws to state agencies.” OLD POLLUTION SCRUBBERS Exxon’s two big oil refineries in Texas – in Beaumont and Baytown – are also among the top three polluters identified by Reuters. But Exxon's 517,000-barrel-per-day Baton Rouge plant produces far more soot. The plant's emissions of small particulate matter hit a peak of 350 pounds per hour during an independent test conducted in January 2020 by an engineering firm Exxon hired to demonstrate its regulatory compliance. Emissions averaged 255 pounds per hour during the test. That exceeded a limit, imposed on the refinery by the Louisiana Department of Environmental Quality (LDEQ), of 234 pounds per hour – one of the highest limits in the country, according to regulatory documents. Other similarly-sized
  • 8. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 refineries in Louisiana and other states have state soot emissions limits closer to 50 pounds per hour. The LDEQ declined to comment on the pollution limits it sets for Exxon's Baton Rouge plant. Exxon officials blamed the refinery's high emissions on low water pressure in its 1970s-era wet gas scrubber, according to company correspondence with the LDEQ. Exxon told the state it had since resolved the issue. Maintenance on such scrubbers, commonly used to control pollution, can lower emissions but requires shutting down a cat cracker for several weeks, hurting profitability, according to Exxon disclosures to the LDEQ. Completely new systems can cost more than $1 billion. Because the Baton Rouge refinery's two catalytic crackers were built during World War Two – among the first such units in the country – they are exempt from federal EPA standards. 'GIVE US GOOD AIR' The Baton Rouge refinery, more than a century old, borders neighborhoods with sky-high rates of childhood asthma. Seabell Thomas, 77, whose home is separated from the refinery by Interstate 110, said her son's asthma was so bad that he routinely visited the emergency room as a child. She has since been campaigning to pressure Exxon to clean up. "When I wake up each morning, I have to confront two demons: pollution from the highway and the Exxon refinery," she said. "We, as Black people, ask, 'God, how long can you allow this? Please, give us good air to breath.'" In a group of census blocks that includes Thomas' home, childhood asthma rates were more than double the statewide average, according to a 2019 report by the Louisiana Health Department. Emergency-room visits for childhood asthma in the area also more than doubled the statewide rate. "I grew up thinking asthma was an African-American disease because so many kids in the neighborhood had inhalers," said Sonyja Renee Thomas, the daughter of Seabell Thomas. "Only later, as an adult, did I realize how much pollution factored into it."
  • 9. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 EXXON RIVALS RUN MUCH CLEANER Big refineries run by Exxon's rivals are doing much better at controlling soot. Ironically, many of them are using technology invented and licensed by Exxon, according to disclosures by Exxon and environmental regulators. Specialists in industrial pollution say the differences in performance can be attributed to any of a number of factors: rivals' equipment could be newer; maintenance schedules may be more frequent; and refining processes before wet gas scrubbing may also be optimized to reduce soot. All of that takes money. In many cases, it also takes lawsuits. Companies such as BP plc (BP.L), Marathon Petroleum (MPC.N), Phillips 66 (PSX.N) and Valero Energy Corp (VLO.N) have made agreements with the EPA in recent years to slash emissions below federal standards to help settle pollution-related litigation, regulatory disclosures show. These more restrictive limits are laid out in so-called consent decrees, which cover the operations of scores of U.S. refineries and influence permitted pollution levels set by states. For example, Marathon's refinery in Garyville, Louisiana, operates an Exxon scrubber which has undergone numerous upgrades since being installed in 1979, company spokesman Jamal Kheiry said. The refinery's permit limit, set by the state, is 0.6 pounds per 1,000 pounds of burned coke, well below the EPA limit of one pound. During its latest test, Garyville's small particulate matter emissions were just 0.11 pounds. The plant is slightly larger than Exxon Baton Rouge. "The low emissions numbers reflect robust emissions controls we have implemented," Marathon's Kheiry said. Exxon's three largest refineries also operate under a consent decree, signed with the EPA in 2005 after the company was sued by the EPA and Justice Department for alleged Clean Air Act violations. But the agreement includes only a voluntary target for Exxon to limit soot emissions to half the EPA standard, which it has not done. For locals around the Baton Rouge refinery, pushing for Exxon to reduce pollution can be difficult given its economic and political clout as a major Louisiana employer. Sidney Poray, 60, has lived near the refinery for nearly 30 years and has worked with activist groups to monitor the refinery's emissions. But he's not optimistic their work will make much difference. "Of course, I care about pollution," Poray said. "But what am I going to do? We're talking about Exxon."
  • 10. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 NewBase June 04-2021 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil Climbs Near Highest Since 2018 With More Iran Talks Expected Bloomberg - Elizabeth Low and Alex Longley Oil crept higher with prices trading near their highest level since 2018. WTI for July delivery rose 0.6% to $69.42 a barrel at 13.05 London time after falling as much as 0.7% earlier. Futures are up 4.2% so far this week. Brent for August settlement gained 0.58% to $71.90 Futures in New York erased earlier losses to trade above $69 a barrel. A significant draw in American crude stockpiles added positive signs to a market buoyed this week by the deferring of expectations of when a nuclear deal with Iran would be signed. A U.S. State Department spokesman said on Thursday that there should be a sixth round of negotiations to revive the nuclear deal and “there’s just about every expectation there will be subsequent rounds beyond that.” Oil price special coverage
  • 11. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 The Iranian talks come against the backdrop of a market where demand is recovering sharply in the west, but remains patchy in parts of Asia. OPEC+, which agreed to hike its output in July this week, may need to keep adding barrels to the market in August or September to meet the recovery, according to Gazprom Neft PJSC Chief Executive Officer Alexander Dyukov. “The market can easily absorb the incremental supply from OPEC+,” said Dominic Schnider, head of commodities and Asia Pacific foreign exchange at UBS Global Wealth Management. There’s still some risk due to the virus resurgence in Asia, but it’s unlikely to derail the global recovery, he said. The market has firmed in a bullish structure this week. The prompt timespread for Brent was as much as 47 cents in backwardation -- where near-dated prices are more expensive than later-dated ones. That compares with 9 cents at the start of last week. Still financial flows into the oil market remain relatively depressed. Trading volumes have remained light and speculative positioning in oil is relatively low, which could pave the way for higher prices in the coming months, Citigroup analysts including Francesco Martoccia wrote in a report.
  • 12. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 NewBase Special Coverage The Energy world – June - 04- -2021 Racing for Hydrogen: How Gas Giants Are Vying to Stay Relevant Bloomberg - Rachel Morison and Laura Hurst The global gas industry is in an existential race: either find a way to be part of the next generation of energy or risk getting supplanted by alternatives. BP Plc, Sinopec, Equinor ASA and Royal Dutch Shell Plc are among the producers looking to hydrogen to help secure demand that otherwise may falter as decarbonization speeds up. They want to utilize existing pipelines, storage tankers and fuel supply to make blue hydrogen, a process that uses natural gas but captures the carbon emissions and stores them. The straightest route to net-zero emissions uses hydrogen produced by renewable electricity -- known in the industry as green hydrogen -- but the blue variety is expected to be cheaper until at least 2030 as wind and solar power ramp up. Gas companies aiming to lower emissions now and avoid obsolescence next decade are planning to pour billions of dollars into building their blue businesses. At least 15 projects are scheduled to go online through 2027 in the U.K., Germany, Norway, the Netherlands, Sweden and New Zealand. “Green is the destination, but we’ll get there on a blue highway,” said Al Cook, executive vice president for development and production at Stavanger, Norway-based Equinor. “At some point, green hydrogen might well be lower cost than blue, but that will likely not be for at least a decade.”
  • 13. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 Clean hydrogen could meet a quarter of the world’s energy needs by 2050, with annual sales reaching 630 billion euros ($770 billion). Production of blue needs to be scaled up quickly because projects that don’t come online by 2030 risk becoming uncompetitive, according to BloombergNEF. Green Wave Green hydrogen is set to become cheaper than blue by 2030
  • 14. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 Right now, hydrogen is expensiv1..000000000000000000e+ to make without expelling greenhouse gases, is difficult to store and is so highly combustible that NASA uses it to propel rockets into space. Still, demand is expected to increase six-fold by 2050 as the transportation, steel and chemicals industries move to reduce pollution, the International Energy Agency said in its road map for net- zero emissions published May 18. Natural gas is used in almost all hydrogen production today. That earns the disdain of ESG investors, environmental groups and governments trying to slow climate change because the most common method, called steam-methane reforming, also produces large amounts of carbon dioxide, which are dumped in the air. The quickest way to remedy that is by capturing the carbon and storing it underground or reusing it. The process has been around for decades, and it’s usually deployed in natural gas plants, fertilizer manufacturing and ethanol production facilities. Gas currently is cheaper than renewable electricity, giving blue hydrogen an advantage even with the added costs of carbon capture and storage.
  • 15. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 Announced blue hydrogen projects Bolting on carbon capture means blue hydrogen projects can be rolled out at scale from day one, said Paul Bogers, vice president for hydrogen at Shell. The Netherlands-based company is involved in several, including the U.K.’s Acorn Project and Net Zero Teesside, both scheduled to go online in 2025. “Industry by industry, you’ll see that the mix of where blue and green can be applied, and where it’s affordable, will be different,” he said. “It’s not as simple as saying: ‘Well, here’s the crossover, so from that point you only invest in one.” Swapping gas for hydrogen is one way energy companies could advance their efforts to meet increasingly strict mandates for lowering emissions. Shell previously pledged to reduce its greenhouse gas emissions by 20% within a decade, but a court in The Hague ordered the company on May 26 to slash them by 45% in the same time period. Shell Only Has Hard Options to Meet Dutch Court’s Climate Order China is the world’s largest producer of hydrogen, mostly by using fossil fuels. Spurred by the nation’s target for carbon neutrality by 2060, China Petroleum & Chemical Corp., or Sinopec, said it plans to have a 1 million-ton carbon capture project by 2025. China also will cooperate with Saudi Aramco, the world’s biggest oil producer, on blue-hydrogen projects. The urgency for gas companies stems from the near-universal backing for green hydrogen, made from water and renewable electricity. The cost of green hydrogen is expected to fall 80% by 2030
  • 16. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 and be cheaper than blue in all 28 markets analyzed by BNEF as renewable energy and the electrolyzers using it to make hydrogen both come down in price. Iberdrola SA, Europe’s biggest utility, is focusing on renewable power and green hydrogen, bolstered by Spain’s commitment to spend 35 billion euros of EU stimulus on energy transition. American industrial giant Cummins Inc. said May 24 it will partner with Iberdrola to build a factory in central Spain for making electrolyzers. “In the short term, there are opportunities in which you can apply blue, but in the midterm -- five to 10 years -- it’s going to be a stranded asset,” said Diego Diaz Pilas, head of new ventures at Iberdrola. Clean Growth Global hydrogen production by type in net zero scenario The European Commission wants to see as much as 470 billion euros of investment in the green hydrogen industry, with the goal of making 10 million tons by 2030 to help reach net-zero by 2050. Natural gas pipelines could be converted to carry hydrogen, with Belgium, the Netherlands and Germany leading the way, EC gas official Bartlomiej Gurba said at a January conference. “We are ready to grant subsidies for green hydrogen,” Germany’s deputy economy minister, Elisabeth Winkelmeier Becker, said in an interview. “Other hydrogen will certainly continue to be used, but its production will not be subsidized.” At the moment, though, some companies will take whatever color hydrogen they can get. CF Industries Holdings Inc. is one of the world’s biggest producers of ammonia used in fertilizers and chemical manufacturing.
  • 17. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17 The Deerfield, Illinois-based company uses gray hydrogen, made from natural gas but releasing greenhouse gases. It now buys permits to cover emissions from U.K. production plants in Ince and Billingham, but it’s preparing to implement carbon capture as permit prices keep rising, Chief Executive Officer Tony Will said in an interview. Such transitions are important for getting the clean hydrogen market off the ground, said Daryl Wilson, executive director of the Hydrogen Council. The industry group’s members include gas giants, automakers and Microsoft Corp. “The marginal cost of converting gray hydrogen into blue hydrogen is much lower than jumping to green hydrogen directly,” Wilson said. “As long as blue hydrogen is useful from an economic point of view, there is no reason for it to go away.”
  • 18. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 18 NewBase Energy News 01 June 2021 - Issue No. 1429 call on +971504822502, UAE The Editor:” Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscriptions, please email us. About: Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995
  • 19. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 19 Hawk Energy member 2010 www.linkedin.com/in/khaled-al-awadi-38b995b Mobile: +971504822502 khdmohd@hawkenergy.net or khdmohd@hotmail.com Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S. Universities. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder of NewBase Energy news articles issues, an international consultant, advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa and Asia. Khaled has successfully accomplished a wide range of projects in the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted & finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management and environmental sustainability in different parts of the world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see contact details above.
  • 20. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 20 Oil and Gas Upstream
  • 21. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 21
  • 22. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 22
  • 23. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 23 For Your Recruitments needs and Top Talents, please seek our approved agents below