New base energy news 06 march 2019 issue no 1233 by khaled al awadi

Copyright © 2018 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 endeavours have been used to ensure the accuracy of the information contained in this
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NewBase Energy News 06 March 2019 - Issue No. 1233 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Dewa starts pre-bidding for 5th phase of mega solar park
The National - Dania Saadi
Dubai Electricity and Water Authority issued a request for qualification for the 900 Megawatt fifth
phase of the emirate’s mega solar park as it forges ahead with plans to source the majority of its
power from clean energy over the coming decades.
This phase of the solar park is being developed with photovoltaic solar panels based on the
independent power project (IPP) model and will begin operations in stages starting from the second
quarter of 2021, Dewa said in a statement, posted to the state-run news agency WAM on Saturday.
IPPs involve the participation of the private sector in financing and developing a power project.
"We are committed to completing the phases of the Mohammed bin Rashid Al Maktoum Solar Park
to the highest international standards with the latest solar power technologies,” said Saeed Al Tayer,
Dubai wants to generate 75 per cent of its power from clean sources by 2050

chief executive of Dewa. “This ensures energy supplies to meet growing demand in Dubai and
enhance the shift toward [a] green economy by increasing its share of clean energy.”
The solar park, which will become the world’s largest single site energy park once complete, is
expected to produce 5,000MW by 2030, with a total investment of Dh50 billion. It is part of Dubai’s
strategy to produce 75 per cent of its power from clean energy by 2050, which requires a capacity
of 42,000MW generated from these sources. Dewa is building the park amid plans to reduce
reliance on natural gas as the main source of energy for power and water generation.
The emirate is set to beat its 2020 clean energy target of 7 per cent and will be able to source 8 per
cent of its power from renewables by next year, Mr Al Tayer said in January.
Dewa will invest Dh8bn on energy projects this year and has no plans to tap the bond market to
finance its spending, Mr Al Tayer said at the time.
The fifth phase will be the third using the IPP model. The first 13MW PV phase which became
operational in 2013, was followed by three IPPs. The second 200MW PV phase, which cost Dh1.2bn
and was implemented in 2017, was developed by a consortium led by Saudi Arabia’s Acwa Power
and Spain’s TSK. The third 800 MW PV phase is being implemented by UAE clean energy firm
Masdar and will be complete by 2020.
The fourth 950 MW phase will be the world’s largest single-site investment in Concentrated Solar
Power based on the IPP model when complete and will cost Dh16bn. Unlike PV panels, CSP
technology can store energy when the sun goes down. The fourth phase is being built by a
partnership involving Dewa, Acwa Power and China’s Silk Road fund.

Oman: PetroTel gets $450m in funding for Musandam blocks
Oman Observer - Conrad Prabhu
PetroTel Energy, an exploration and production company headquartered in Texas, USA, has
secured around $300 million in financing for the development of oil and gas fields in Oman’s
Musandam peninsula.
The funding support is being provided by the Overseas Private Investment Corporation (OPIC), a
self-sustaining US government agency that helps American businesses invest in emerging markets.
In addition to $300 million in financial support, OPIC is also providing $150 million of insurance for
PetroTel’s activities.
PetroTel’s local subsidiaries PetroTel Oman LLC (PTO) and PetroTel Oman Offshore LLC (PTOO)
operate Block 17 and Block 40 respectively in Musandam. Both licenses are 100 per cent owned
by PetroTel Energy.
With funding support from OPIC,
PetroTel plans to build facilities, as
well as a three-kilometre offshore
pipeline that will carry
hydrocarbons to the existing
Musandam Gas Processing Plant
at Tibat.
While oil will be sold to international
markets via an offshore loading
terminal located off Tibat, the gas
will be supplied to the Musandam
Independent Power Project, a 120
MW power plant majority owned by
Oman Oil Company and brought
into operation in 2017.
Importantly, PetroTel’s investments
promise to fuel Musandam’s
economic development, while also
transforming the US-based energy
firm as a major producer of
hydrocarbons. Natural gas from the
onshore and offshore fields will
support investments in civil, economic, tourism and industrial infrastructure, while also opening up
opportunities for business development and job creation in this Omani enclave.
Dr Anil Chopra, Chairman and CEO of PetroTel, said: “PetroTel has been active on this project for
over a decade and was the first company ever to drill an onshore well in Musandam. We are bringing
state-of-the-art American technology to this project and look forward to contributing significantly to
the socio-economic growth and development in this Governorate.
We are thankful to the Government of Oman for this great opportunity. Now, with financing from
OPIC, we can build on the foundation we have laid over the last decade. This project will nurture
and strengthen the strong friendship between Oman and the United States of America.”

PetroTel has pledged to recruit hundreds of local Omanis from Musandam Governorate in its
operations. OPIC has forecast that the company’s activities will have a positive macroeconomic
impact on the local economy, notably via an estimated $60 million in contracts and services
procured locally. “PetroTel will also make contributions towards schools, medical clinics and other
facilities in the Governorate that will benefit the local community,” the Corporation noted.
Ray W Washburne, President and CEO of OPIC, commented: “The United States and Oman have
enjoyed a productive diplomatic relationship for over 200 years. By helping to create jobs and
maintain stability in the Governorate, this project will help advance that relationship.”
Covering a total area of around 2.1 million acres, the contiguous Blocks 17 and 40 are home to
some of “the most exciting plays in hydrocarbon exploration and production”, according to PetroTel.
Block 17 is mostly onshore while Block 40 is mostly offshore with shallow waters averaging 70
metres.
In the south of Oman, PetroTel Oman Onshore LLC is also the operator of Blocks 39 and 67 in
Dhofar Governorate with a 100 per cent working interest in the blocks.

Oman’s gas production to rise to 130 MMcmd by 2025.
Oman’s gas production levels are set to surpass oil by 2023 thanks to an impressive surge in the
development of gas fields in the sultanate, according to Rystad Energy, a global energy research
and business intelligence company.
“Gas is on the rise in Oman, and this transition is very timely. Oil output declines over the last two
years may indicate a point of no return for Omani oil, but the country’s sliding oil production is set
to be replaced by gas,” said Rystad Energy analyst Aditya Saraswat.
At peak production in 2016, Oman’s oil output reached 900,000 barrels per day (bpd), declining to
870,000 bpd by 2018. Norway-based Rystad Energy, which has offices across the globe, estimates
that by 2025 oil production will decrease by an additional 200,000 bpd, as output from older fields
continues to slump.
As new oilfield developments have failed to stabilize the country’s crude output, Oman has shifted
its focus to invest in gas developments. This will see gas production escalate to approximately
130,000 Cubic Meter per day by 2025) ,( 4.6 MMSCFD ) shifting Oman’s oil-gas production mix
from about 35 per cent gas in 2015 to over 50 per cent in 2025.
“This is a tremendous turnaround from the near-stagnant 80 MMcmd of gas output from 2008
through 2016,” Saraswat remarked. “Amidst rising global liquefied natural gas (LNG) demand and
the increasingly lucrative domestic gas market, international players are favouring gas
developments in Oman. The strengthened gas market will help gas production levels to outshine
Oman’s dwindling oil production, with gas output projected to overtake oil by 2023,” he added.

Japan:Nuclear reactor restarts displacing LNG imports in 2019
Source: U.S. Energy Information Administration, based on International Energy Agency
In 2018, Japan restarted five nuclear reactors that were shut down after the 2011 Fukushima
accident. As those reactors return to full operation, the resulting increase in nuclear generation is
likely to displace generation from fossil sources, in particular natural gas.
Because Japan imports all of its natural gas in the form of liquefied natural gas (LNG), increased
nuclear power production is likely to reduce Japanese imports of LNG in the electric power sector
by as much as 10% in 2019.
Japan now has nine operating nuclear units with a total electricity generation capacity of 8.7
gigawatts. Electricity generation produced by natural gas-fired plants in Japan has been declining
annually from its peak in 2014 and is likely to decline further in 2019, while generation from nuclear
units will likely increase.
In response to the 2011 Fukushima accident, Japan suspended operations at all nuclear reactors
for mandatory safety inspections and upgrades, leaving the country with no nuclear generation from
September 2013 to August 2015. Existing coal-fired power plants were already operating near full
load; therefore, utilities had to import large volumes of LNG to meet electricity demand.
As the five nuclear reactors were gradually restarted in 2018, they began to offset natural gas-fired
generation, and as a result, LNG imports decreased as the reactors reached full operation. In 2019,
their first full year of operation,
EIA estimates that the restarted nuclear reactors will further displace Japan’s LNG imports by about
5 million metric tons per year (MMmt/y), or 0.7 billion cubic feet per day (Bcf/d) of LNG. This amount
is equivalent to 10% of Japan's power sector natural gas consumption and 6% of Japan’s LNG
imports in 2018.

Consumption of crude oil and petroleum products by power plants also increased between 2011
and 2013, with utilities spending about $30 billion each year for additional fossil fuel imports in the
three years following the Fukushima accident. Generation from crude oil and petroleum products
returned to pre-Fukushima levels by 2014 mainly as a result of relatively high crude oil prices, and
it has since declined further.
Source: U.S. Energy Information Administration, Japan Ministry of Finance
Note: Other includes Angola, Egypt, Equatorial Guinea, France, Spain, Netherlands, Peru, South
Korea, Singapore, and Trinidad.
Japan relies on imported LNG to meet all of its natural gas demand and imports more LNG than
any country, averaging 11 Bcf/d in 2016 through 2018. Japan imports LNG from several
countries worldwide. LNG imports from Australia have grown in the past two years to account for
more than one-third of the total imports, and they have displaced imports primarily from Malaysia
and Qatar. In 2016 through 2018, these three suppliers accounted for 60% of Japan’s LNG imports.
LNG imports from the United States account for a small percentage of total imports, but they
increased from 0.16 Bcf/d in 2017 to 0.3 Bcf/d in 2018, according to data from Japan’s Ministry of
Finance. Japan’s LNG importers have signed long-term contracts with U.S. LNG export projects
such as Freeport, Cameron, and Cove Point. Most of Japan’s LNG imports are under long-term
contract with existing foreign suppliers, and these contracts are set to expire during the next decade.
The outlook for further LNG import displacement is largely dependent on the number of nuclear
restarts, assuming trends in other factors, such as electricity demand and energy efficiency, remain
constant. The pace of nuclear restarts has been slow, with the average reactor requiring nearly four
years to come back online.
Japan's long-term energy policy calls for the nuclear share of total electricity generation to reach
20% to 22% by 2030, which would require up to 30 reactors to be in operation. Out of the remaining
fleet of 35 operable reactors, 9 are currently operating, 6 have received initial approval from Japan’s
Nuclear Regulation Authority, 12 are under review, and 8 have yet to file a restart application.

Mauritania/Senegal: Golar LNG to supply FLNG unit to BP for
phase 1 of the Greater Tortue / Ahmeyim Project, West Africa
Source: BP
Golar LNG has announced that Gimi MS Corp, a newly incorporated subsidiary of the Company,
has entered into a 20-year Lease and Operate Agreement ('LOA') with BP for the charter of an
FLNG unit, Gimi, to service the Greater Tortue Ahmeyim project.
Expected to commence production in 2022, the FLNG Unit Gimi will liquefy gas as part of the first
phase of the Greater Tortue Ahmeyim project and be located at an innovative nearshore hub
located on the Mauritania and Senegal maritime border.
FLNG Gimi is designed to produce an average of approx. 2.5 million tonnes of LNG per annum,
using the Black & Veatch 'Prico' liquefaction process, with the total gas resources in the field
estimated to be around 15 trillion cubic feet.
Concurrent with its entry into the LOA, Gimi MS has entered into a Subscription Agreement (subject
to closing conditions) with First FLNG Holdings, an indirect wholly-owned subsidiary of Keppel
Capital, in respect of their participation in a 30% share of FLNG Gimi.
Gimi MS will construct, own and operate FLNG Gimi and First FLNG Holdings will subscribe for
30% of the total issued ordinary share capital of Gimi MS for a subscription price equivalent to 30%
of the project cost. LNG carrier Gimi has been relocated from layup to Keppel Shipyard in Singapore
where conversion works are expected to commence soon.
Construction of FLNG Gimi is expected to cost approx. $1.3 billion, excluding financing costs. Once
accepted under the contract, annual earnings before interest, tax, depreciation and amortization of
approximately $215 million with potential upside for over performance are expected. Golar is also

in the final stages of receiving an underwritten credit commitment for a $700 million long-term
financing facility from a syndicate of international banks that will be available during
construction. Golar's plan is that together with other financing facilities, by the end of the 4-year
construction period the anticipated maximum total equity contribution from the Company in respect
of its 70% stake will be approx. $300 million.
Commenting on the LOA, Golar CEO Iain Ross said:
'This landmark 20-year agreement with BP, which is Golar's second FLNG tolling agreement, is the
culmination of a lot of hard work and commitment from the project and commercial teams that
commenced late 2017.
The potential of Golar's floating LNG solution was reinforced by FLNG Hilli Episeyo's proof of
concept, Heads of Terms were agreed with BP and its partners in April 2018 and work has been
ongoing via the previously reported Limited Notice to Proceed.
Golar is delighted to have the opportunity to demonstrate the safe and reliable operation, quality
and value of its FLNG offering to such a world class energy company as BP and looks forward to
safely delivering and building on this long-term relationship over the decades ahead'.

NewBase 06 March 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil falls slight on U.S. inventory build, shale oil output forecasts
Reuters + NewBase
Oil prices fell on Wednesday as bullish output forecasts by two big U.S. producers and a build in
weekly U.S. crude stockpiles outweighed OPEC-led production cuts.
International Brent crude futures were at $65.61 per barrel at 0945 GMT, down 25 cents, or 0.38
percent, from their last settlement. Brent had dropped to as low as $65.22 earlier in the session on
Wednesday.
U.S. West Texas Intermediate (WTI) crude oil futures were down 0.81 percent, or 46 cents, at
$56.10 per barrel.
Oil price special
coverage

“Crude oil futures continue to demonstrate whippy trades as markets balance between OPEC-led
cuts and the effects of rising U.S. production levels,” said Benjamin Lu, commodities analyst at
Singapore-based brokerage firm Phillip Futures.
Increasingly event-driven trading was adding to market volatility, he said. Chevron Corp and Exxon
Mobil Corp released rival Permian Basin projections on Tuesday pointing to increased shale oil
production.
If realized, the increases would cement the pair as the dominant players in the West Texas and
New Mexico field, with one-third of Permian production potentially under their control within five
years. Data from the American Petroleum Institute (API), an industry group, also showed larger-
than-expected gains in U.S. crude stockpiles.
U.S. crude inventories rose by 7.3 million barrels in the week ending March 1 to 451.5 million,
compared with analysts’ expectations for an increase of 1.2 million barrels, API said. Crude stocks
at the Cushing, Oklahoma, delivery hub rose by 1.1 million barrels.
“An increase in U.S. crude inventories is weighing on oil prices and in the long term, concerns over
rising oil production in the Permian region is keeping a lid on prices,” said Kim Kwang-rae,
commodity analyst at Samsung Futures in Seoul.
Official data from the U.S. Department of Energy’s Energy Information Administration is due later
on Wednesday. The rise in North American production undermines the ongoing supply cut efforts
led by the Organization of Petroleum Exporting Countries (OPEC).
OPEC and its allies pledged to curb output by 1.2 million barrels per day, and they are likely to push
back their decision whether or not to extend the output cut agreement to June from April, according
to sources. Meanwhile, the market is looking for further signs that the United States and China are
making progress in talks to resolve their trade conflict.

Exxon and Chevron just announced big plans to surge oil and gas
output from top US field …By:Tom DiChristopher - cnbc
 Exxon Mobil and Chevron announce plans for big increases in oil and natural gas production
from the Permian Basin, the top U.S. shale field.
 Exxon aims to produce 1 million barrels a day from the Permian by 2024, while Chevron is
targeting 900,000 bpd over the next five years.
Exxon Mobil and Chevron on Tuesday said they both plan to surge oil and natural gas output from
America's top shale field in the coming years, a strategy that the energy giants say will yield
significant returns.
As early as 2024, Exxon believes it can increase output from the Permian Basin to 1 million barrels
per day of oil equivalent, a measure that blends crude oil and gas production. That represents an
80 -percent increase, the company said in a news release a day ahead of its meeting with investors.
Meanwhile, Chevron aims to more than double its oil and gas output to 900,000 boepd by the end
of 2023. Chevron sees Permian production hitting 600,000 boepd by the end of next year, the
company said at its meeting with analysts on Tuesday.
The Permian is the epicenter of the U.S. shale boom, which has made the nation the world's top
producer of oil and natural gas. Drillers in the region underlying western Texas and southeastern
New Mexico use advanced techniques like hydraulic fracturing to coax oil and gas from shale rock
formations.
Once the domain of independent frackers, the shale drilling process is being industrialized by large
international oil companies. The oil majors are stitching together large swaths of land and drilling
multiple horizontal wells from a single location, making the expensive method more efficient.
"The big thing that I think has changed is the shale game has become a scale game, and so people
that can do things at large scale and bring the capabilities to bear that a company like Chevron has

are the ones that really can take this to the next level," Chevron Chairman and CEO Michael Wirth
told CNBC's "Closing Bell" on Tuesday.
Chevron's output from the Permian hit 377,000 boepd last quarter, an 84 percent increase from a
year ago. The company says it plans $19 to $22 billion in capital spending per year from 2021 to
2023.
"Our message to our investors was it's a good time to be Chevron. Our portfolio is stronger than it's
ever been, and you don't have to look any further than the Permian to see that," Wirth said. "We're
delivering strong production with low risk and disciplined spending, which leaves plenty of money
to be returned to shareholders."
Exxon's Permian production surged 93 percent in the final quarter of 2018 from the year-ago period.
"We're increasingly confident about our Permian growth strategy due to our unique development
plans," Neil Chapman, senior vice president at Exxon, said in a statement. "We will leverage our
large, contiguous acreage position, our improved understanding of the resource and the full range
of ExxonMobil's capabilities in executing major projects."
Exxon says its Permian assets can produce healthy returns even during times of low oil prices. If crude
futures fall to $35 a barrel, Exxon says returns from its Permian assets will still average 10 percent.
Permian Basin oil production is expected to top 4 million barrels per day this month. That is about a third of
total U.S. output, which is sitting at a record just above 12 million bpd, according to preliminary government
figures.
Output from the region has been constrained by a lack of pipelines needed to carry crude from oil fields to
refineries and export terminals. Analysts expect the industry to bring new infrastructure online and clear the
bottlenecks by the end of the year.
Exxon is investing heavily in the Permian and U.S. Gulf Coast, with construction planned or under way at 30
sites to account for growth in oil and gas processing and water handling and to assure there's enough
infrastructure to move fossil fuel around the region. Earlier this year, Chevron announced it would buy
Pasadena Refining System from Brazil's Petrobras for $350 million. The deal will give Chevron control of a
Pasadena, Texas, refinery, its first processing facility in the Houston area and a means of processing its
growing Permian output.

Despite recent supply reductions, global liquid fuels production
to outpace demand ….U.S. Energy Information Administration, Short-Term Energy Outlook, February 2019
Despite relatively lower supply from a number of major crude oil-producing countries, including
Saudi Arabia, Libya, Venezuela, and Canada, global liquid fuels production was forecast to exceed
global consumption through 2020 in EIA’s February Short-Term Energy Outlook (STEO).
In the February 2019 update of its STEO, EIA forecasts that Brent crude oil prices will average $61
per barrel (b) in 2019 and $62/b in 2020. EIA forecasts that higher U.S. crude oil production growth
and slightly lower global oil consumption will offset the short-term supply reductions. As a result, in
the STEO forecast, global petroleum liquids stocks increase and prices remain relatively flat.
The agreement among members of the Organization of the Petroleum Exporting Countries (OPEC)
and several non-OPEC countries (collectively OPEC+) to reduce production by 1.2 million barrels
per day (b/d) began in January.

Global crude oil supply decreased because of additional production cuts by Saudi Arabia, beyond
what it agreed to in the OPEC+ agreement. An increase in unplanned supply outages in Libya and
U.S. sanctions on Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA),
have also affected OPEC output.
As a result, in the February STEO, 2019 OPEC production was revised down by nearly 150,000
b/d, and 2020 OPEC production was revised down by more than 400,000 b/d relative to the January
forecast. The Canadian province of Alberta also instituted its own production restraints, which EIA
estimates contributed to a decline in Canada’s supply of about 420,000 b/d from December to
January, adding further tightness to global oil supply.
The February STEO forecast for U.S. crude oil production was revised higher by about 340,000 b/d
in both 2019 and 2020 compared with the January STEO, mostly because of increased production
in the U.S. Gulf of Mexico and the Permian Region. Historical production data in the Gulf of Mexico
for November 2018 was higher than previously forecast and set a record high production level of
1.9 million b/d.
Forecast crude oil production from the Permian Region of western Texas and eastern New Mexico
was revised up in the February STEO based on higher-than-anticipated production and a tightening
of the price spread between Midland, Texas, and Cushing, Oklahoma. For most of 2018, the price
for West Texas Intermediate at Midland (representative of Permian Region crude oil prices) traded
lower than crude oil priced in Cushing, Oklahoma, a major storage and trading hub for crude oil.
This price difference decreased at the end of 2018, and EIA’s expectation of higher relative prices
in Midland contribute to increased U.S. production later in the STEO forecast.
Although recent economic data from the United States has been positive, EIA’s forecast for global
oil-weighted GDP growth, based on data from Oxford Economics, was revised down slightly from
the January STEO. This revision, along with revisions to past consumption estimates that carried
through to the forecast, contributed to a slight downward revision in the global oil consumption
forecast. Because of these changes to global supply and demand, EIA expects global petroleum
stocks will build through 2019 and 2020 at a rate of 440,000 b/d and 630,000 b/d, respectively.

NewBase Special Coverage
News Agencies News Release 06 March 2019
Elon Musk says… hydrogen cars may yet threaten Tesla
Joe D'Allegro | @joeofhappiness + NewBase
 Tesla CEO Elon Musk has said of hydrogen fuel cell vehicles, 'Success is simply not possible.'
 A 2017 survey of 1,000 global auto executives concluded hydrogen fuel cell technology will ultimately
outperform battery-powered electric vehicles.
Tesla and its competitors in the battery-powered electric vehicle market dominate debate over who
will control the future of cars, but there's another kind of green transportation technology making
inroads in the United States, and it is based on the most abundant resource in the universe.
Fuel cell electric vehicles (FCEVs) combine hydrogen stored in a tank with oxygen from the air to
produce electricity, with water vapor as the by-product. Unlike more common battery-powered
electric vehicles, fuel cell vehicles don't need to be plugged in, and current models all exceed 300
miles of range on a full tank.
They're filled up with a nozzle almost as quickly as traditional gas and diesel vehicles. While fuel
cell vehicles themselves only emit water vapor from their tailpipes, the Union of Concerned
Scientists notes that producing
hydrogen can lead to pollution.
Though renewable sources of
hydrogen, such as agricultural
and waste sites, are increasing,
the majority of the hydrogen
sourced for fuel comes from
traditional natural gas
extraction. Still, the impact is still
less thangasoline-powered
counterparts.
Hydrogen power has been on
the market for years but in an
extremely limited capacity.
There are currently 39 public
hydrogen fueling stations in
California (with another 25 in

development), along with a couple in Hawaii. Now the East Coast is getting its own infrastructure.
A handful of stations are up and running, and more are in the works in New York, New Jersey,
Massachusetts, Connecticut and Rhode Island.
Commercial success, consumer challenges
Hydrogen is more established in the commercial market. There are more than 23,000 fuel cell-
powered forklifts in operation at warehouses and distribution centers across the U.S. in more than
40 states, including at Amazon and Walmart facilities. There are dozens of fuel cell buses in use or
planned in Ohio, Michigan, Illinois and Massachusetts, as well as California.
Consumer hydrogen refueling stations are increasing throughout the world. Toyota and Honda are
teaming up with the government in Quebec to build hydrogen infrastructure in Montreal this year,
and even oil-rich Saudi Arabia is getting its first station.
Toyota, the world's second-largest automaker, is the largest player in the U.S. consumer market for
hydrogen fuel cell cars. Its Mirai – a hydrogen fuel cell family car – has found 5,000 buyers since it
was introduced in the fall of 2015. Russ Koble, a spokesman in Toyota's environmental and
advanced technology group, said the company expects sales to increase as more fueling stations
open.
"Toyota has long maintained that hydrogen fuel cell technology could be a zero-emission solution
across a broad spectrum of vehicle types," he said.

Toyota says the scalability of hydrogen fuel cell technology also has led to two applications for
California feasibility studies in another area of interest to Tesla: semi-trailer trucks.
Honda also has made a big commitment to hydrogen. There are currently nearly 1,100 Honda
Clarity Fuel Cell vehicles on the road in the U.S., said Natalie Kumaratne, a Honda spokeswoman.
Honda only offers the Clarity Fuel Cell in California for lease — it offers battery electric power and
hybrid versions of the car for lease or sale. Out of the 20,174 total Claritys sold or leased in 2018,
624 were fuel cell variants, 948 were battery-electrics, and 18,602 were the plug-in hybrid.
Honda and Toyota have teamed up with a subsidiary of Shell Oil to build new hydrogen fueling
stations in California. Two have been built thus far, and five are in the works, Kumaratne said. The
company is advocating for stations in the Northeastern United States, with several in development.
"Partnering with other hydrogen fuel cell manufacturers and industry influencers makes sense. We
all have skin in the game," she said.
Hyundai, which currently has 220 hydrogen fuel cell
vehicles on the road in the U.S., also sees sales
increasing. "We expect the Northeast to be the next big
region of hydrogen infrastructure growth," said Derek
Joyce, spokesman for the Korean manufacturer's product
and advanced powertrain group. The company just
introduced the Nexo to the U.S. The EPA rates the
midsize crossover's range up to 380 miles, longer than any battery-powered EV on the market.
As of Feb.1, just over 6,000 fuel cell electric vehicles had been sold and leased in the U.S., double
Japan, the next biggest market.
Musk on hydrogen 'fool cells'
Tesla co-founder and CEO Elon Musk has dismissed hydrogen fuel cells as "mind-bogglingly
stupid," and that is not the only negative thing he has had to say about the technology. He has called
them "fool cells," a "load of rubbish," and told Tesla shareholders at an annual meeting years ago
that "success is simply not possible."
Musk found a surprising source of support in 2017, when Yoshikazu Tanaka, chief engineer in
charge of the Mirai, told Reuters,
"Elon Musk is right — it's better to
charge the electric car directly by
plugging in." But the Toyota
executive added that hydrogen is a
viable alternative to gasoline.
Toyota chairman Takeshi
Uchiyamada told Reuters at the
same Tokyo auto show in 2017,
"We don't really see an adversary
'zero-sum' relationship between the
EV (battery powered electric
vehicle) and the hydrogen car.
We're not about to give up on
hydrogen electric fuel-cell
technology at all."
The auto industry as a whole has
not embraced Musk's battery-or-

bust vision of the future. A 2017 survey of 1,000 senior auto executives conducted by KPMG found
they believe hydrogen fuel cells have a better long-term future than electric cars and will represent
"the real breakthrough" (78 percent), with the auto executives citing the short refueling time of just
a few minutes as a major advantage. Sixty-two percent told KPMG that infrastructure challenges
will result in the battery-powered electric vehicle market's undoing.
In California, debate continues over whether the subsidies offered by the state to jump-start the fuel
cell market have paid back the investment as judged by the limited use of refueling stations and
lack of profits. California is committed to the effort begun under former Gov. Jerry Brown to fund
renewable energy initiatives, which included a $900 million zero-emissions vehicles plan and
funding for electric vehicle charging infrastructure, including 200 hydrogen stations by 2025.
"We could see hydrogen fuel cell systems that cost four times less than lithium-ion batteries, as well
as providing a much longer range."-David Antonelli, chair of physical chemistry at Lancaster
University
GM has not released a fuel cell vehicle for the consumer market, but it has a joint venture with
Honda to produce fuel cell stacks at a Michigan plant, a deal that started in 2013 and expanded in
2017, when both companies said the Michigan plant where the fuel stacks are being made could
produce vehicles starting in 2020.
Ford has experimented with fuel cell variants of its Focus and Fusion cars, as well as the Edge
crossover, but does not offer any such vehicles for sale.
"With a steadily growing share of renewable energies, hydrogen fuel cells could play a role in the
future," said a Ford spokesman. "In terms of a widespread market launch, however, the battery is
currently in a superior position to the fuel cell – not least because of the cost situation and the
available infrastructure. Our work will continue to focus on electrification as we monitor hydrogen's
progress. We have no current plans to offer hydrogen fuel cell vehicles."
Fiat Chrysler does not have a fuel cell vehicle on sale in the U.S., but for 15 years it has supported
research led by Professor David Antonelli, the chair of physical chemistry at Lancaster University in
the U.K., that could bring costs down for the technology. His team is working with a material that
enables fuel tanks to be smaller, cheaper and more energy-dense than existing hydrogen fuel
technologies as well as battery-powered vehicles.

"The cost of manufacturing our material is so low, and the energy density it can store is so much
higher than a lithium-ion battery, that we could see hydrogen fuel cell systems that cost four times
less than lithium-ion batteries, as well as providing a much longer range," said Antonelli. The
technology has been licensed to a for-profit company called Kubagen, set up by Antonelli.
Car model and refueling prices remain big issues
Safety is a concern, as hydrogen is flammable, but so is gasoline and lithium-ion batteries. The
transportation of hydrogen for use at refueling
stations poses additional safety risks —
stations use sensors to monitor for leaks.
There have not been serious incidents
reported in California, and the industrial
sector has been transporting hydrogen for
decades.
According to the National Fire Protection
Association, alternative-fueled vehicles, a
category that includes both hydrogen fuel cell
and battery-powered electric, are not more
hazardous than traditional internal
combustion engines. The NFPA's statistics
reveal that approximately every 3 minutes
there is a car fire in the U.S. from an internal
combustion engine vehicle.
The biggest hurdle, however, may be cost.
The average price for hydrogen fuel in California is about $16/kg — gasoline is sold by the gallon
(volume) and hydrogen by the kilogram (weight). To put that in perspective, 1 gal of gasoline has
about the same amount of energy as 1 kg of hydrogen. Most fuel cell electric cars carry about 5 kg
to 6 kg of hydrogen but go twice the distance of a modern internal combustion engine car with
equivalent gas in the tank, which works out to a gasoline-per-gallon equivalent between $5 and $6.
Hydrogen fuel cell cars now average
between 312 miles and 380 miles in
range, according to the EPA. They
will cost about $80 to refuel from
empty (most drivers don't let the tank
run down to empty before they refuel,
so end up refueling at a cost of $55 to
$65). That cost is currently being paid
for by automakers, who provide
lessees with prepaid cards for three
years of fueling, up to $15,000. In
California, which has the nation's
highest gas prices, filling up a conventional car with a large gas tank can cost $40 or more.
Kelley Blue Book estimates annual fuel costs for the Toyota Mirai, Honda Clarity Fuel Cell and
Hyundai Nexo at $4,495, which is three to four times the cost of gas-powered alternatives.
"We recognize the automakers can't keep paying for fuel, and we see the line of sight to get there,
but it is a volume game and we need to hit a critical mass," said Shane Stephens, principal and
chief development officer at FirstElement Fuel, which runs 19 of the 39 hydrogen refueling stations

in California and is developing 12 of the 25 additional stations for the state. His company's near-
term target is $10/kg, which would equate to roughly $4/gal of gas. "That is a good near-term
acceptable number to hit in the next three to five years and get people off automaker-subsidized
fuel," Stephens said.
The biggest problem: The cars remain expensive. Nexo, for instance, is the most expensive Hyundai
on sale in the U.S., with a starting price of $59,345 (starting prices for the brand's comparably-sized
Santa Fe start at $24,250). The Toyota Mirai and Honda Clarity fuel cell models have a similar
MSRP in the $59,000 range. These car purchases are eligible for government rebates — in
California there is a $5,000 tax rebate available.
Leasing has been a popular consumer choice for fuel cell and battery electric cars because the
technology is new and early adopters don't want to be tied into a current model for a long time as
the technology advances and efficiency improves.
As with any new technology, fuel cell costs should come down if the market grows and achieves
economies of scale in manufacturing and infrastructure. "Honda has a long-term commitment to
hydrogen, but you can't sell vehicles without infrastructure," Kumaratne said.
Stephens said if the market can reach "a few hundred thousand cars" in California, it can be cost-
competitive with gasoline. That represents a big jump from the 6,000 cars sold so far, but most new
auto markets start with limited production runs. Toyota has said it plans to increase production from
3,000 Mirai units per year to 30,000 cars by 2021. "That is a tenfold magnitude increase."
"A few hundred thousand cars in California is not that far off. And that is just Toyota," Stephens
said. "This is not about subsidizing the entire growth of the infrastructure but just helping us get over
the hump, and that is on the horizon. If we get to a few hundred thousand cars, we can really start
to sunset government subsidies and be self-sustaining."

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
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For additional free subscription emails please contact Hawk
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Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 28 years of experience in
the Oil & Gas sector. 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 a UAE operations
base , Most of the experience were spent as the Gas Operations Manager in
Emarat , responsible for Emarat Gas Pipeline Network Facility & gas
compressor stations . Through the years, he has developed great experiences
in the designing & constructing of gas pipelines, gas metering & regulating
stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas
transportation, operation & maintenance agreements along with many MOUs for the local
authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE
and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 2019 K. Al Awadi

New base energy news 06 march 2019 issue no 1233 by khaled al awadi

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New base energy news 06 march 2019 issue no 1233 by khaled al awadi