U.S. energy company HIF Global, Japan's Eneos to explore cooperation in e-fuels

Houston-based e-fuel producer HIF Global and Japanese oil refiner Eneos Holdings will explore cooperating on e-fuels production and distribution, the companies said, in HIF's second such deal in the Japanese market, said Hydrocarbonprocessing.

E-fuels producers such as HIF are betting on e-gasoline as a low-carbon bridge fuel for internal combustion cars, and are also looking to develop similar e-fuels for aviation and other hard-to-electrify industries. Many global airlines, for example, are counting on such products to decarbonize their flights.

HIF intends to supply Eneos with carbon-neutral e-fuels produced in the United States, Chile and Australia, the companies said in a statement. They have not yet signed a contract. HIF Executive Director Meg Gentle told Reuters the focus of talks was for HIF-made e-gasoline, which Eneos can distribute in Japan.

Also under consideration is using HIF-produced e-methanol in Japan as marine fuel, with Eneos further processing the e-fuel at its refinery in Japan to make e?gasoline and carbon neutral aviation fuel, Gentle said. Markets around the world are shifting to electric vehicles, with some such as China making a rapid shift as governments mandate sales of EVs to cut carbon dioxide (CO2) emissions.

But existing gasoline-powered vehicles, including hybrids from companies such as Toyota and Ford, will likely be on the road for several decades to come. That requires a different solution to make transport carbon-neutral. "We need a way to decarbonize existing engines to have any chance of reaching net zero," Gentle said.

Sceptics argue, however, that e-fuels, typically made from captured CO2 emissions and hydrogen produced with renewable energy sources, are expensive and energy-intensive. Synthetic fuel does release CO2 into the atmosphere when burned, but the emissions can be equal to the CO2 captured to produce the fuel, making it carbon-neutral overall.

HIF signed an almost identical agreement with Idemitsu Kosan in April. The agreements are consistent with Tokyo's willingness to provide policy support for e-fuels, Gentle said, and part of its efforts to achieve carbon neutrality by 2050.

We remind, TotalEnergies ENEOS and PTT Global Chemical (GC) celebrated the official launching of a total capacity of 6.7 megawatt-peak (MWp) solar photovoltaic (PV) system for GC's 5 production facilities in Thailand. GC is Thailand's largest integrated petrochemical and refining business and a leading corporation in the Asia-Pacific region, with a target to reduce greenhouse gas emissions for 20 percent by 2030 on its journey towards achieving Net Zero emissions by 2050.

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Honeywell announced that its Board of Directors has approved an increase in the company's regular annual cash dividend from $4.12 to $4.32 per share, said the company.

The increase will be effective starting with the fourth-quarter dividend of $1.08 per share, which was declared today, and is payable on December 1, 2023 , out of surplus to holders of record at the close of business on November 10, 2023 .

"For the 14 th time in 13 consecutive years, Honeywell is increasing its dividend," said Vimal Kapur, chief executive officer of Honeywell. "As we align our portfolio with the megatrends of the future – automation, the future of aviation and energy transition – underpinned by the Honeywell Accelerator operating system as the foundation for profitable growth, we will continue driving value for our shareholders."

Honeywell is a technology company that delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit Honeywell | Newsroom.

We remind, Chemours Company (Chemours) and Advanced Performance Materials, and Honeywell announced they have engaged with the Interagency for Market Control of the Hellenic Ministry of Development (DIMEA), the Hellenic Police, and Hellenic Customs to stop illegal fluorinated gas (F-gas) refrigerants from entering the European Union (EU) at the Greek border.

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The Russian government is ready to ease a ban on diesel exports in coming days, said Reuters.

Separately, TASS news agency cited Energy Minister Nikolai Shulginov as saying that the government "at all levels" had been discussing partial permission for fuel exports. He said further decisions on fuel market regulation would be published in the near future.

Despite being one of the world's top oil producers, Russia has suffered shortages of gasoline and diesel in recent months as high export prices made it advantageous for refiners to sell their products abroad.

Kommersant reported that the ban would be lifted only on pipeline exports of diesel, and that volumes may be subject to quotas to avoid surges in wholesale prices. The ban on gasoline exports will remain in force for now, it said.

Diesel is Russia's biggest oil product export, at almost 35 million tons last year. It exported 4.8 million tons of gasoline. The newspaper said Deputy Prime Minister Alexander Novak was due to hold a weekly meeting later on Wednesday with oil companies to discuss the possible easing of the ban.

Novak's office did not immediately reply to a request for comment. Novak said last week that Russia may introduce quotas on fuel exports if a complete ban on cross-border supplies imposed on Sept. 21 does not succeed in bringing down high gasoline and diesel prices.

Prices have fallen on the local exchange since the ban was introduced; gasoline by almost 10%, and diesel by 23%. The oil pipeline monopoly Transneft's storage facilities are nearly full and it is proving almost impossible to redirect all incoming volumes to the domestic market, Kommersant said.

On Tuesday, Novak said the government was not setting any time frame for the fuel export ban. Analysts' expectations vary on how long the measures will be in effect. JP Morgan said it could last a couple of weeks until harvest season concludes in October, while FGE Energy said replenishing Russia's gasoline stocks could take up to two months.

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Chevron USA's New Energies division has entered into an agreement with Haddington Ventures to acquire Magnum Development, a company that holds a controlling interest in the Advanced Clean Energy Storage (ACES) joint venture, along with Mitsubishi Power Americas, said Chemanalyst.

This strategic move underscores Chevron's commitment to advancing its presence in the renewable energy sector and contributing to the development of sustainable solutions.

The ACES project, situated in Delta, Utah, within the United States, is the primary focus of the joint venture. It aims to harness surplus wind and solar energy during off-peak periods for the purpose of electrolysis, thereby generating green hydrogen and oxygen.

Chevron has highlighted the significance of the ACES hub, noting that it is poised to substantially augment the global installed capacity for electrolysis. The initial project, currently under construction, is designed to convert and store up to 100 metric tons per day of hydrogen. It is projected to commence full-scale commercial operations by mid-2025. The unique aspect of this endeavor lies in its use of salt caverns for the seasonal storage of the hydrogen produced, providing a reliable and efficient storage solution.

The ACES hub's immediate objective is to support the Intermountain Power Project's initiative, which involves the replacement of a coal-fired power plant with gas turbines capable of utilizing a blend of natural gas and 30% hydrogen. By the year 2045, the ultimate goal is to have the Intermountain plant entirely powered by hydrogen. This transition is a significant step towards reducing greenhouse gas emissions and embracing cleaner energy sources.

Michael Ducker, Senior Vice President of Hydrogen Infrastructure for Mitsubishi Power, expressed optimism regarding the accelerated expansion of hydrogen supply as a result of Chevron New Energies' participation in the venture. He highlighted the shared commitment to investing in the future of hydrogen and fostering a competitive market for emerging lower-carbon solutions.

Chevron's strategic approach to this acquisition aligns with its broader mission to stimulate demand for lower-carbon intensity hydrogen. The company recognizes the importance of hydrogen as a viable, cost-competitive alternative in sectors such as transportation, power generation, and industrial processes, where reducing greenhouse gas emissions presents significant challenges. By actively engaging in projects like ACES, Chevron aims to play a pivotal role in driving forward sustainable energy solutions and facilitating the transition to a more environmentally friendly future.

We remind, Chevron Phillips Chemical, Technip Energies and LyondellBasell are collaborating on the design, construction and operation of a demonstration unit for Technip Energies’ electric steam cracking furnace technology, designed to reduce the greenhouse gas emissions associated with the olefins production process.

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North American chemical rail traffic rose for a seventh consecutive week, with railcar loadings for the week ended 30 September up 3.6% year on year to 45,804, according to the Association of American Railroads.

A 7.3% increase in the US more than offset declines in Canada and Mexico.

For the first 39 weeks of 2023 ended 30 September, North American chemical rail traffic was down 1.3% year on year to 1,768,929 loadings - with the US down 2.6% to 1,215,546.

In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

We remind, North American chemical rail traffic rose for a sixth consecutive week, with railcar loadings for the week ended 23 September up 8.8% year on year to 46,175 tonnes. For the first 38 weeks of 2023 ended 23 September, North American chemical rail traffic was down 1.5% year on year to 1,723,125 loadings - with the US down 2.8% to 1,183,796.

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