Communicator

Troll C

Date: February 9, 2025

Norwegian energy giant Equinor has announced a significant shift in its energy strategy, halving its planned investments in renewable energy over the next two years while ramping up oil and gas production.

The company will reduce its renewable energy spending to $5 billion, down from the $10 billion it previously committed, citing rising costs and slower-than-expected progress in low-carbon projects.

Equinor has also revised its 2030 renewable capacity target to 10-12 GW, a reduction from the earlier goal of 12-16 GW. This adjustment comes as the company focuses on "value creation" and shareholder returns.

CEO Anders Opedal emphasized that the decision aligns with market realities, noting that profitability in renewables has not met expectations. Despite these changes, Equinor maintains its commitment to achieving net-zero emissions by 2050.

It plans to continue investing in carbon capture and storage (CCS) and hydrogen technologies while reducing emissions from its oil and gas operations. However, the company will now prioritize increasing oil and gas output by 10% through 2027, leveraging its assets on the Norwegian continental shelf and other key projects like the Johan Sverdrup oil field to produce 2.2mn barrels of oil equivalent per day by 2030.

This strategic pivot reflects broader industry trends as major energy companies, including BP and Shell, scale back renewable ambitions amid economic pressures and geopolitical uncertainties.

While Equinor's move is expected to bolster cash flow and shareholder value, it raises questions about the pace of the global energy transition and the challenges of balancing profitability with sustainability goals.

#energytransition  #renewableenergy  #oilandgas  #equinor  #hydrogen #carbonecapture  #ccs  #greenhydrogen #Sustainability 

BPCL Mumbai Refinery

Bharat Petroleum Corporation Limited (BPCL) has unveiled plans for an ambitious $11 billion integrated refinery and petrochemical complex in Andhra Pradesh, marking a significant expansion of India's refining capabilities. The announcement comes as India positions itself to become a major global refining hub amid Western companies' shift toward energy transition.

In a recent interview, BPCL Chairman G. Krishnakumar highlighted the strategic importance of the project, stating, "We feel there is a big opportunity in the refining sector. India's primary energy demand itself is also going to increase three to four times as its economy expands." This expansion aligns with India's vision to become a developed nation by 2047, targeting a GDP growth from $3.8 trillion to $30 trillion.

The proposed facility in Andhra Pradesh will include a 9-million-metric-tons-per-year refinery and an ethylene cracker, with an estimated cost between 900-950 billion rupees ($10.56-11.14 billion). The complex will feature a 35% petrochemical intensity, and pre-project work, including land acquisition, has already begun.

The strategic location in South India is particularly significant, as approximately 80% of the complex's output will serve the southern region's petrochemical developers and automobile manufacturers. This new facility will complement BPCL's existing operations, which currently include three refineries with a combined capacity of 35.3 million metric tons per year, plus fuel purchases from the 3-million-metric-ton Numaligarh refinery in the northeast.

Beyond this major project, BPCL is diversifying its portfolio with renewable energy initiatives. The company aims to achieve 10 gigawatts of clean energy projects by 2035 and has formed a joint venture with Sembcorp to expand its current 300-megawatt renewable energy portfolio.

Additionally, Krishnakumar expressed optimism about the $20 billion Mozambique LNG project, led by France's TotalEnergies, in which BPCL holds a stake alongside other Indian companies. Operations are expected to commence in the first quarter of 2025, with gas monetization projected for 2028-2029.

The investment in the Andhra Pradesh complex will help BPCL reduce its dependence on external fuel purchases, which currently account for one-fifth of the 50 million metric tons of refined fuels sold through its retail stations.

#bpcl  #india  #refinery  #lng  #totalenergies  #grassrootrefinery  #steamcracker  #renewableenergy 

eni's GELA refinery description has been updated.

 

#eni #refinery  #sicilia  #italy  #renewables  #saf  #sustainableaviationfuel 

*Excludes non-cash finance leases of $43 MM in Refining, $30 MM in Midstream and $2 MM in Corporate and Other.
** Our share of joint ventures’ capital spending.

December 16, 2024 | Phillips 66 News Release

Phillips 66 announced a 2025 capital budget of $2.1 billion, including $998 million for sustaining capital and $1.1 billion for growth capital. The budget underscores Phillips 66 dedication to delivering value to shareholders by funding growth in the NGL wellhead-to-market value chain and further enhancing refining competitiveness.

▪️ In Midstream, the capital budget of $975 million comprises $429 million for sustaining projects and $546 million for growth projects. ▪️ The budget advances the integrated NGL wellhead-to-market value chain by strengthening the company’s position in key basins, including increasing gas processing capacity.
▪️ In Refining, Phillips 66 plans to invest $822 million, including $414 million for sustaining capital. Refining growth capital of $408 million supports the company’s commitment to high-return, low-capital projects.
▪️ The Marketing and Specialties capital budget reflects the continued enhancement of the company’s branded network.
The Renewable Fuels capital budget reflects investments at the Rodeo Renewable Energy Complex toward the optimization of feedstocks and logistics for renewable diesel and sustainable aviation fuel production.
Corporate and Other capital will primarily fund information technology projects.

Phillips 66’s proportionate share of capital spending by joint ventures Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP (WRB) is expected to total $877 million and be self-funded. Including Phillips 66’s proportionate share of capital spending associated with joint ventures CPChem and WRB, the company’s total 2025 capital program is projected to be $3 billion.

▪️ CPChem’s growth capital will continue to fund the construction of world-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar, through joint ventures. The facilities are expected to start up in 2026.
▪️ WRB’s capital spending will primarily be directed to sustaining projects.

#phillips  #chevron  #wrb  #refining  #renewablediesel  #saf  #aviationfuel  #ngl  #cpchem  #raslaffan  #quatar  #usgc  #goldentriangle  #rodeo 

Deoxygenation reactions (i.e., dehydration, decarboxylation, and decarbonylation) are important in the cracking process to remove Oxygen in vegetable oils (triglycerides) and replace it with hydrogen to form liquid renewable fuels.

#renewablediesel  #saf  #sustainableaviationfuel  #bionaphtha  #biofuels 

Sunset on a refinery

"Oil refineries across Europe will be forced to shut as the West abandons fossil fuels in the race to net zero," – said BP CEO Murray Okincloss, commenting on the company's financial statements, The Telegraph reports.

He believes that older and smaller refineries in the EU will close or switch to biofuels as conventional oil refining becomes unprofitable due to a combination of soaring fuel taxes and falling demand from drivers switching to electric cars.

“So I would expect the least efficient refineries, which are the smallest, oldest around the world, to gradually close down as the world transitions over the next 10 to 30 years.”

BP has four refineries in Europe, three of which are already planned for conversion to produce biofuels including sustainable aviation fuel (SAF). Grangemouth Refinery in Scotland, which is owned by Ineos, employs 500 people but is scheduled to shut early next year.

Data from Fuels Europe shows that refining capacity in the EU, as well as in the UK, Switzerland and Norway, is already declining. Capacity has fallen from 781 million tonnes a year in 2009 to 677 million tonnes now. This means that Europe accounts for about 15% of the world's refining capacity - well behind the US with 21% or  APAC with 36%.

Contradicting the statements reported above, BP said in June that it was scaling back this year’s plans for the development of new sustainable aviation fuel (SAF) and renewable diesel projects at its existing sites, pausing planning for two potential projects while continuing to assess three for progression, according to Oilprice.

“This is aligned with BP’s drive to simplify its portfolio, focusing on value and returns,” the UK-based supermajor said.

In June, BP declared to continue investing in deepwater fields in the Gulf of Mexico, and made a statement saying it was "scaling back" new biofuels projects.

The company has tempered its enthusiasm for its low-carbon program, and with it cut its climate commitments, adapting to an operating model that assumes continued high oil demand into the 2040s and beyond.

“Labour policy says oil and gas production in the North Sea will be with us for decades to come ... They launched a consultation process with the sector last night and we’ll be engaged deeply with them on that,” Okincloss said.

The oil giant's net profit for the second quarter of this year was higher than expected ($2.76 billion). The company's low-carbon and natural gas division, on the other hand, performed poorly, posting a loss of $0.1 billion.

#refining  #refinery  #crudeoil  #naturalgas  #oilandgas  #europe  #saf  #sustainableaviationfuel  #renewablediesel  #biofuels 

After halting work on biofuel plant in Rotterdam, 🇳🇱 The Netherlands, and booking a $1bn write down, Shell has also pulled out of e-SAF project planned with state-owned 🇸🇪 Swedish power utility company Vattenfall.

“Vattenfall and Shell have decided to pause their collaboration in the HySkies electrofuel project while Vattenfall continues the search for new partners,” said Vattenfall in a statement.

The joint project, with the planned capex of €780m ($845m), was launched in 2021 with initial plans to produce 82,000 tonnes of e-SAF and 9,000 tonnes of renewable diesel per annum. The project envisaged the use of hydrogen from 200MW electrolysis plant, biogenic CO2 captured from a waste-to-energy plant and sustainable ethanol as feedstocks at the site.

It was due to begin operations in March of 2027.

On the other hand, the company said that it will also not avail financial support via the EU Innovation Fund, considering it is infeasible for the project to succeed within the framework of that agreement and aiming to free up funds for others to use in their ambitions to decarbonise.

Vattenfall-Shell e-SAF project was awarded €80.2mn ($87mn) grant in January 2023.

#saf  #hefa  #hefa -spk #aviationfuel  #renewablediesel  #sustainableaviationfuel  #shell  #vattenfall  #electrolysis  #hydrogen  #greenhydrogen  #carboncapture  #ccu  #ethanol  #bioethanol 

Source: Fayaz Hussain, 8^th July 2024, SAF Investor

LONDON, UNITED KINGDOM, July 02, 2024:

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, is to temporarily pause on-site construction work at its 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in Pernis, 🇳🇱 the Netherlands, to address project delivery and ensure future competitiveness given current market conditions.

As a result, contractor numbers will reduce on site and activity will slow down, helping to control costs and optimise project sequencing.

“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.

Shell took a final investment decision for the planned biofuels facility  in September 2021. The facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel made from waste.

Additional information regarding project status and timelines will be communicated in future updates.

Follow ppPLUS news

#biofuel  #saf  #sustainableaviationfuel  #renewablediesel  #biorefinery  #shell 

British Petroleum (BP) appears poised to refocus on hydrocarbons, a move that could bolster the company's profitability. However, without a clear declaration of this shift, investors may not reap the benefits, potentially stagnating the share price, as indicated by active investor BP Bluebell Capital Partners, as reported by Bloomberg.

According to Bluebell Capital Partners co-founders Giuseppe Bivona and Marco Taricco, BP ought to ramp up investments in oil and gas while scaling back spending on costly renewable energy ventures to enhance returns for shareholders, as outlined in Bluebell's October communication.

The hedge fund observed indications of BP moving in this direction during its fourth-quarter presentation, the first since Murray Auchincloss assumed leadership of the company. Auchincloss emphasized a "pragmatic" and "flexible" approach to the energy transition, suggesting that BP's oil production could surpass the anticipated 2-3% target for 2027.

While holding only a minor stake in BP (the exact size undisclosed), activist investor Bluebell, through its co-founder Bivona, has engaged with numerous major shareholders, many of whom echo concerns about the company's underwhelming shareholder returns and endorse the fund's proposal for strategic change.

Bluebell's history of shareholder activism includes advocating for a leadership change at Danone in 2021, attempting to compel Glencore to divest its coal business that same year (though unsuccessfully), and calling for Bayer to divide its business into three segments in 2023.

#renewable  #renewableenergy  #oilandgas 

Total FAME biodiesel production in 2012 was almost 1 billion gallons and renewablediesel was just 52 million gallons. Fast-forwarding to 2022, total annual production of renewable diesel reached almost 1,483 million gallons, only 137 million gallons less than FAME. Consequently, renewable diesel accounted for 48 percent of total BBD production in 2022, when just one decade ago it accounted for only 5 percent of BBD production. #fame  #biodiesel  #renewablediesel 

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