The challenge over the next 10 years will be in scaling up SAF production. Green hydrogen production is relatively niche, as yet. “A lack of green power and electrolysis capacity, this will not make a dent” in the projected SAF demand.
“The combination of low fees and increasing costs mean we estimate unlevered internal rates of return (IRRs) as low as 5-6% for some projects. Based on these returns, some projects are finding it challenging to secure finance, particularly via equity raises,” said Harrison.
A rush by China to sign new long-term liquefied natural gas (LNG) deals promises to give the nation even more control over the global market at a time when competition for cargoes is booming.
More investments in liquefaction is needed to head off a supply-demand gap that the company sees emerging in the late 2020s. Last year, the company put this supply-demand gap opening up by mid-decade.
Chinese leader Xi Jinping pledged to deepen ties with Tehran after meeting Iran’s President Ebrahim Raisi in Beijing, weeks after the US said it would increase pressure on China to stop buying Iranian oil.
Russia blamed the US for explosions that damaged the Nord Stream pipelines and warned of a response from Moscow, after an American investigative journalist published an article alleging the Biden administration had attacked the gas transportation network.
China’s Coast Guard maintained near-daily patrols at key features across the disputed South China Sea last year, ramping up its presence as tensions over the waterway with Southeast Asian neighbours remain high, new tracking data shows.
The US said it will increase pressure on China to stop buying Iranian oil, as the White House seeks to enforce sanctions aimed at curbing the Islamic Republic’s nuclear activities.
“We’re not interested in a regulated asset model, not at a fixed 5% return,” he continued. Investors have to be able to cover failures through higher returns on their successes. “We’re looking at returns into the teens on returns.”
Woodside Energy has awarded a major contract to Air Liquide Engineering and Construction (Air Liquide) for the liquefaction equipment at its proposed H2OK hydrogen project in Ardmore, Oklahoma, US.
China and Saudi Arabia signed a number of agreements, including on energy and investments, after their leaders met in Riyadh on Thursday at a summit that showcased deep and growing ties beyond oil.
Woodside Energy’s (ASX:WDS) latest production guidance for 2023 has fallen short given delays at new oil projects in West Africa and the US, as well as a maintenance shutdown at the Pluto LNG export complex in Australia.
A massive $20 billion deal with the US and Japan will kick-start Indonesia’s drive to wean itself off coal power, though the country may still need trillions more to reach net-zero emissions while meeting growing demand for energy.
US President Joe Biden and Indonesian President Joko Widodo announced a climate finance deal providing $20 billion to help Indonesia pivot away from coal power.
International sanctions on Russian crude will reduce supply by 2 million barrels per day of crude, Windward AI CEO and co-founder Ami Daniel has predicted.
President Joe Biden criticised record energy company profits after Shell announced its second-highest earnings ever while raising its dividend and expanding buybacks.