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Spain to channel USD1.8B in EU rescue funds to 'green' hydrogen

November 20/2020

MOSCOW (MRC) -- Spain will spend 1.5 billion euros (USD1.8 billion) from a European economic recovery fund over the next three years in developing "green" hydrogen production, which will use renewable power, prime minister Pedro Sanchez said, said Hydrocarbonprocessing.

With its sunny plains, windy hillsides and gas infrastructure, Spain is keen to lead production of hydrogen using renewable resources, a process seen as key to meeting carbon emissions targets provided costs can be brought down.

Hydrogen, which is now mostly produced from fossil fuels, can be made from water using electrolysis but the process is expensive and only avoids emissions if renewable power is used.

Madrid has set a target to encourage 8.9 billion euros (USD10.5 billion) of investment, mainly from the private sector, to build electrolysers with a total 4 gigawatt capacity by 2030. This would give Spain 10% of the EU's hydrogen production target.

Spanish energy firm Iberdrola has applied for EU funds to expand a project spanning two sites in Spain it says will need investment worth 1.8 billion euros and could create 4,000 jobs.

Energy minister Teresa Ribera called for people working in green hydrogen supply chain, from researchers to potential end users, to submit details of their projects.

As MRC informed earlier, crude prices rose in mid-morning trade in Asia Nov. 16, as the market was comforted by the strong possibility that any new lockdowns in the US will be less severe than the nationwide lockdowns seen in spring, with the signing of the Regional Comprehensive Economic Partnership (RCEP) also providing a boost to sentiment.

As MRC informed previously, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

And in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, crude oil, neftegaz, petrochemistry, Spain.
Category:General News
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