City gas distribution companies may soon face competition from third parties, with the Petroleum and Natural Gas Regulatory Board (PNGRB) set to notify regulations to allow competition for these companies, which have thus far enjoyed exclusive marketing rights in their respective geographies. Indraprastha Gas Ltd. in Delhi, Mahanagar Gas Ltd. in Mumbai and Gujarat Gas Ltd. are three city gas distribution companies set to be affected by the opening up of these markets and their pipeline infrastructure to third parties.

What is the proposed change?

Under the proposal by the PNGRB, distribution companies would have to provide access to third-party companies to pay to use their infrastructure to market CNG and PNG based on a transportation tariff set by the incumbent players but regulated by the PNGRB in case of disputes. The PNGRB has sought comments from stakeholders on how the tariff for use of the pipeline network of the city gas distribution companies should be decided. According to experts, the end of marketing exclusivity may lead to some competition and lower prices for CNG. City gas distribution companies market CNG at the retail pump sites of state-run oil marketing companies. CNG sales are the most profitable market segment for city gas distribution companies with margins at around 30% of the retail price of the fuel, according to experts. OMCs which currently receive a commission on the sale of CNG sold through their retail points may seek to take some market share in the CNG distribution business by using the distribution network of the city gas distribution companies to retail CNG directly to customers. An expert noted that the CGD companies and OMCs may decide to increase the commissions provided to OMCs once gas distribution companies lose marketing and infrastructure exclusivity.

According to the experts, the profitability of city gas distribution companies would be affected significantly if their market share is taken up by competitors and it may even reduce their ability to invest further in expanding gas distribution infrastructure. The CGD companies have opposed the opening up of CGD infrastructure for use by third parties. IGL has challenged the proposal by the PNGRB to end marketing exclusivity in the Delhi High Court and have argued that any reduction in market share in any of its marketing segments including CNG and PNG would impair their ability to invest in infrastructure to expand its PNG network to supply natural gas to a larger number of households. DK Sarraf, chairperson of the PNGRB recently noted that the regulator would notify regulations for the opening up of competition in CGD areas as there had not been any stay issued by the high court in the case.

https://indianexpress.com/article/explained/gas-distribution-infrastructure-regulations-pngrb-6538568/[Edited]

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latest statistics released by Mahanagar Gas Limited (MGL) show. The total number of vehicles registered in 2019-20 was 7.52 lakh as against 6.9 lakh in the same period last year — an increase of 62,000. A look at the data between 2016-17 to 2019-20 shows that the number of vehicles in the Mumbai metro region has gone up by 2.10 lakh over four years. Of these, the fourth year alone (2019-20) has seen a growth of more than 60,000 vehicles a welcome development at a time when the economy has not witnessed a very robust growth but has seen quality of air improve.

The proportion of CNG-fuelled automobiles in the city has reached a considerable number and is likely to impact on air pollution due to vehicular exhaust. This is a heartening trend and must be backed by tax breaks on new purchases. If private owners are provided incentives and supply of gas at fuel outlets increases, the trend will be reinforced. Statistics further show that the number of private cars using the green fuel had gone up by 23,000 in the past one year, taking the total CNG car population in the metro region to 3.23 lakh. At the same time, 34,000 new autos were launched on CNG while just 1,000 more taxis were plying on it in 2019-20. Data shows the number of CNG autos grew by over 1.5 lakh in the past 3-4 years. This has increased the auto population to 3.52 lakh in the region today. The total taxis plying on CNG is over 66,000, statistics say. In comparison, buses and trucks on CNG had a slow growth rate, numbering around 5,000. MGL managing director Sanjib Datta said: “MGL is committed to provide uninterrupted supply of CNG across the region and to add to our network of 250 CNG stations.” He further said petrol price was much higher than the CNG price, and so the latter was the most affordable fuel. The price of CNG was Rs 48.95 per kg while that of petrol was Rs 87.19 a litre on Thursday. Besides, mileage in a CNG-driven vehicle is 60% to 70% more than a petrol-run car. Also, sources in MGL said that with tax concessions on CNG, several citizens preferred to purchase duo variants petrol with CNG fuel especially for hatchback cars. This has pushed the use of CNG among motorists. Many have also got CNG kits retrofitted in existing cars for Rs 40,000 to Rs 45,000 per kit, the sources added. Transport experts said that the Mumbai metro region should have more CNG and electric vehicles to ensure reduction in emission levels.

https://timesofindia.indiatimes.com/city/mumbai/cng-vehicles-up-9-in-mumbai-region-in-a-year-most-are-cars-and-autos/articleshowprint/77312822.cms

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Standalone net profit of Rs 255.51 crore, or Rs 0.57 per share, in April-June, was 80.1 per cent lower than Rs 1,287.53 crore, or Rs 2.85 a share, net profit in the same period a year back, the company said in a regulatory filing. “The sharp decline in financial performance is mainly attributable to a significant impact in physical performance due to nation-wide lockdown during the earlier part of the quarter coupled with lower price realization in petrochemicals, liquid hydrocarbons, and natural gas,” it later said in a statement. The company suffered a pre-tax loss of Rs 545.46 crore on the marketing of natural gas in the first quarter of 2020-21 fiscal, as compared to a pre-tax profit of Rs 850.48 crore last year. Revenues from natural gas marketing too dipped 39 per cent to Rs 9,443.72 crore as the shutdown of industries led to lower offtake of the fuel. While pre-tax profit on gas transmission business fell 16 per cent, loss on petrochemical business came at Rs 154.43 crore. Total revenue from operations at Rs 12,087.46 crore was lower than Rs 18,311.46 crore revenue in Q1 of 2019-20. “During the quarter, natural gas transmission and marketing volume stood at 90.22 MMSCMD and 81.16 MMSCMD, as against 105.41 MMSCMD and 96.55 MMSCMD respectively in Q1 FY20,” GAIL said. During the quarter, the consolidated group turnover stood at Rs 12,180.62 crore, as against Rs 18,481.56 crore in Q1 FY20 while the group’s Profit after tax (PAT) came at Rs 642.97 crore, as against Rs 1,503.67 crore in Q1 FY20. Manoj Jain, chairman and managing director, GAIL, said that with the gradual relaxation of lockdown and increase in economic activities, the physical performance of the company has picked up significantly in all segments and the company is presently operating at near pre-lockdown levels. He further added that though the capex during the first quarter was affected due to lockdown, GAIL expects to significantly improve capex during the remaining quarters.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gail-q1-net-profit-tanks-80-pc-to-rs-255-51-cr/77525682

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However the restrictions imposed on those entering Kasargod, following Covid-19 scare, has posed a major hurdle for the commissioning of the project. On the other hand, horizontal directional drilling (HDD) to lay the pipelines underwater is struck at River Chandragiri in Kasargod. Now, a heavy duty pulling machine had been deployed at the site at Chandragiri and the work is on progress, sources told DH. “Getting an online pass to daily commute between Kasargod and Mangaluru has become a herculean task. The mandatory Covid test every week is further aggravating the situation. It is posing a hurdle for GAIL’s project. More than 40 to 50 officers and staff of GAIL (India) Limited have to commute daily between Kasargod and Mangaluru for the commissioning of project and operate the project on a daily basis,” highly placed sources told DH. The issue has already been drawn to the notice of Union Minister for Chemical and Fertilisers D V Sadananda Gowda. Sources said heavy rain in the region for the past five to six days too had affected the work. The authorities were planning to get LNG via tanker and commission a 60-km pipeline at Ichalampady in Kasargod and later complete the work on HDD at River Chandragiri. The GAIL is also looking into the possibility of getting LNG tanks and commissioning gas supply from the receiving station at MCF.

“The GAIL staff had applied for a six-month pass to travel to Kasargod. However, it was denied and issued 28-day pass,” sources added.  It may be recalled that LNG terminal of Petronet LNG was commissioned in Kochi six years ago. GAIL (India) Ltd was entrusted with the responsibility of laying the pipeline from Kochi to Mangaluru. Already, the work on laying the pipeline at Malavoor, Adyapadi, Kandavara, Mulooru, Addooru, Malluru, Arkula, Pavoor, Kenjar, Thokooru in Mangaluru taluk, Meramajalu, Ammunje, Pajeer, Kairangala, Balepunti and Kunrand villages has been completed.

https://www.udayavani.com/english-news/kochi-mluru-gas-pipeline-delayed-again-due-to-technical-issue

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This coincides with domestic natural gas consumption falling 14.3% y-o-y to 13,536 MMSCM in Q1FY21 when the lockdown to contain the spread of the coronavirus pandemic was implemented. Domestic production fell 15.5% annually to 6,785 MMSCM while imports dropped 12.5% to 7,003 MMSCM in the three-month period. According to Care Ratings, the gross production of domestic natural gas will fall by 10.6% during FY21 as “no company would aggressively want to increase production or get into high risk projects with such a low gas price”. The current price for gas produced from local fields has been revised to an all-time low of $2.39/MMBtu by the government, which is even below the breakeven point for most fields, the agency noted. Indigenous natural gas production caters about only 51% of the country’s requirements.

Demand for natural gas in the domestic market is largely dependent on the fertiliser (28%), power (23%), city gas distribution entities (16%), refineries (12%) and petrochemicals (8%) industries. Consumption of natural gas is seen to fall by 3.2% by the end of FY21 as demand is likely to be subdued on account of a steep decline in the sale of compressed natural gas (CNG), weaker demand from gas-based power plants and a cut in refinery throughput by oil refiners. Petroleum minister Dharmendra Pradhan recently attended a virtual conference with the CEO of Europe’s leading gas utility company SNAM. The minister has welcomed SNAM’s keenness for collaborations in the areas of LNG, gas storage and hydrogen fuel. Over 31% of SNAM’s shares are held by holding company CDP Reti. The State Grid Corporation of China holds 35% of CDP Reti. An online meeting with Fatih Birol, executive director, International Energy Agency, was also held to discuss the country’s expanding gas infrastructure and the efforts being taken towards free market pricing of natural gas.

https://www.financialexpress.com/industry/domestic-natural-gas-output-falls-10-in-july/2050891/

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Petronet imports natural gas in its liquid form (LNG) from countries such as Qatar and Australia and pipes it to users such as power plants and fertiliser units after re-converting it into its gaseous state. Petronet invoked the force majeure on eight liquefied natural gas (LNG) cargoes of Qatar and one from Exxon for loading from March to May. “Due to a nationwide lockdown imposed by the Government of India from the last week of March 2020, the offtake of regasified-LNG (RLNG) from the Dahej terminal (in Gujarat) was reduced. “This decline in throughput was due to partial/full shutdown of a number of industries, refineries, power plants, etc, which reduced their offtake of natural gas as the demand of their respective products decreased,” Petronet said in a regulatory filing. Average gas send-out from the Dahej terminal fell to less than 60% of the capacity in April, down from over 88% in the previous month. “Post first week of June when the lockdown was relaxed, the demand of RLNG has seen gradual recovery and since then, PLL’s Dahej terminal is operating at its full capacity of 17.5 MMTPA (63 million standard cubic meters per day),

” it said. Before COVID 19, average send-out during January-February was around 58 MMSCMD (92 per cent of the capacity) at the Dahej terminal and 3.57 MMSCMD (20 per cent) at 5 MMTPA at the Kochi terminal in Kerala. “Owing to the COVID-19 pandemic and a consequent reduced RLNG demand during the lockdown period, PLL was constrained to invoke the force majeure for nine long-term cargoes with its suppliers and discussion on the same are ongoing,” the company said without giving details. During the said period, PLL also received requests under regasification contracts for deferment of third-party cargoes to subsequent months, it added.

Source: Economic Times

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The sharp decline makes its harder for Gazprom to reach its target of more 166.6 bcm in exports this year, as gas demand has been depressed due the fallout from the coronavirus pandemic. Gazprom also faces rivalry from other sources of gas, such as sea-borne liquefied natural gas. Last year, Gazprom’s gas exports to Europe, where it accounts for around 35% of the gas market, reached 199.2 bcm. The company has said it expected European gas demand to start recovering from the third quarter. Gazprom said on Thursday in its report under Russian Accounting Standards, that its gas supplies to China, started in December 2019, reached 1.57 bcm in January-June.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/russias-gazprom-says-h1-gas-exports-to-europe-fell-18-per-cent/77536508

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EIA’s Short-Term Energy Outlook (STEO) projected dry gas production will drop to 88.65 billion cubic feet per day (bcfd) in 2020 and 84.02 bcfd in 2021 from the all-time high of 92.21 bcfd in 2019. It also projected gas consumption would fall to 82.42 bcfd in 2020 and 78.71 bcfd in 2021, from a record 84.97 bcfd in 2019. That would be the first annual decline in consumption since 2017 and the first time demand has fallen for two consecutive years since 2006. EIA’s gas supply projection for 2020 in August was lower than its July forecast of 89.24 bcfd, while its latest demand outlook for 2020 was higher than its July forecast of 82.35 bcfd.

The agency forecast US liquefied natural gas exports would reach 5.54 bcfd in 2020 and 7.28 bcfd in 2021, up from a record 4.98 bcfd in 2019. That is higher than its July forecasts of 5.35 bcfd in 2020 and 7.28 bcfd in 2021. S coal production is expected to fall 29% to 502 million short tons in 2020, which would be its lowest level since 1963, before rising to 564 million short tons in 2021 when power plants are expected to burn more coal due to a forecast increase in gas prices, EIA said. It projected carbon emissions from burning fossil fuels will fall to 4.543 billion tonnes in 2020, the lowest since 1983, from 5.130 billion tonnes in 2019, the lowest since 1992, before rising to 4.798 billion tonnes in 2021 as coal use increases.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/us-natural-gas-output-demand-to-fall-due-to-coronavirus-lockdowns-agency-says/77498980

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If consummated, the all-stock merger will boost Chevron’s U.S. shale oil holdings and give it vast natural gas assets off the coast of Israel. Noble’s Leviathan, one of the world’s biggest offshore gas discoveries of the last decade, already is supplying gas to Israel, Egypt and Jordan. Last year, Noble sought a partner to help finance the multibillion-dollar investment required for Leviathan, according to Tuesday’s Securities and Exchange Commission filing. The company denied Chevron an opportunity to visit the Leviathan facility in February, but weeks later agreed to a confidentiality agreement to begin discussing their operations in the region, according to the filing. As global energy markets collapsed that month and Noble reported a first-quarter loss of nearly $4 billion, its board opted for a sale of the company rather than a regional partnership, according to the filing. It contacted eight companies to gauge interest in a stake in its Eastern Mediterranean holdings and held talks with six potential buyers.

The alternatives to Chevron were either “high risk” or “did not result in any material benefit,” according to the filing. Chevron’s bid valued Noble at $10.38 a share, a 7.5% premium to its closing price before the deal was disclosed. Including assumption of debt, the price tag for the purchase is roughly $13 billion. During their talks, Chevron agreed to raise its exchange ratio while Noble dropped a force-the-vote provision and agreed to pay a higher termination fee if the deal did not close. The purchase still faces a vote by Noble shareholders, who are expected to approve it. Chevron shares on Tuesday were off 6 cents at $89.67 while Noble’s lost 4 cents at $10.65. The proxy filing came after 4 p.m.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/chevrons-interest-in-giant-gas-field-led-to-5-bln-bid-for-noble-energy/77496331

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The $848 million import facility located on Zhoushan Island in eastern China’s Zhejiang province started operations in 2018 but the delay in the pipeline’s launch, meant to take place last year, has limited its use. An ENN official on Tuesday (Aug 11) confirmed its completion. Gas has started to flow through the pipeline in small volumes, a source familiar with the matter said, asking not to be named. State-owned Zhejiang Energy Group said last week that the 81-kilometre pipeline will start from ENN’s 3 MMTPA Zhoushan terminal and will pass through islands, terminating at Zhenhai in Ningbo. It will have a total transmission capacity of 8 billion cubic metres (bCM) per annum and will connect to Hang Yong Line’s provincial pipeline. The pipeline’s completion will provide Zhejiang’s provincial pipeline with its eighth gas source and improve gas supply capacity in the region, Zhejiang Energy Group said in a statement. ENN’s Zhoushan terminal is expected to be expanded to 5 mtpa in the first half of 2021. ENN has signed long-term sales and purchase agreements with Chevron Corp and Australia’s Origin Energy and also has an agreement to buy LNG from Total. It has resold some of those cargoes because of the lack of the pipeline and land-based access to markets, several traders familiar with the market have said on condition of anonymity.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gas-pipeline-to-chinas-first-major-independent-lng-terminal-complete/77495974

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With this grant, the JTA will take eight diesel buses that have met FTA’s Useful Life standards out of service, and replace them with eight new CNG buses. Not only does this assist in JTA’s bus replacement schedule, but it directly supports JTA’s sustainability effort by eliminating diesel buses that emit higher CO2 emissions, and replacing with cleaner NGVs.

The new buses are also part of a larger project that proposes to rehabilitate and upgrade some of the most pressing state of good repair needs at the JTA’s Myrtle Avenue Operations Campus. “Our congressional delegation fought hard on behalf of the JTA in seeking this grant funding,” said JTA CEO Nathaniel P. Ford Sr. “Thank you to Congressman John Rutherford, Congressman Al Lawson, Sen. Marco Rubio, Sen. Rick Scott, FTA Acting Administrator K. Jane Williams and U.S. Transportation Secretary Elaine Chao for your continued investment in Jacksonville and the JTA.” These replacement and rehabilitating projects will improve service reliability, enhance access and mobility for customers, and supports the JTA’s initiative of a safe, reliable and sustainable infrastructure for their employees.

https://www.ngvjournal.com/s1-news/c3-vehicles/transport-authority-in-florida-gets-us-doe-grant-to-switch-diesel-buses-to-cng/ 

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The estimated total value of the order is over USD 8.0 million. Delivery of the systems is scheduled from mid-Q3 to mid-Q4, 2020. In 2014 and 2015, Anheuser-Busch converted 160 diesel-fueled trucks in Houston and St. Louis to fleets powered by CNG engines. As the next step to achieve their sustainability goal of reducing carbon emissions across their value chain by 25% by 2025, the brewer will be expanding this fleet and investing in technology to transition to cleaner-burning renewable natural gas.

The two fleets are expected to travel more than 8.5 million miles each year. By transitioning the trucks within these fleets to renewable natural gas, the brewer expects to reduce their emissions by more than 70% compared to conventional diesel – the equivalent of taking more than 66,000 passenger cars off the road or planting more than 8 million new trees. “Biomethane is a pipeline quality gas fully interchangeable with CNG and it’s one of the cleanest burning fuels available. We are pleased to see that our systems continue to enable Anheuser-Busch to opt for lower emission solutions in their fleet,” commented Seung Baik, President of Agility Fuel Solutions. “The performance, durability, and price stability of natural gas-powered trucks make it a great value for distribution fleets like Anheuser-Busch.” 

https://www.ngvjournal.com/s1-news/c3-vehicles/united-states-anheuser-busch-cng-fleet-expands-with-new-180-vehicles/

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with CNG and LNG versions for the South American region. For these new products, developments and new approvals were made in Europe. The process complied with and passed the audit, in which the fundamental aspects for marketing in the country were considered. The new Stralis Cursor 13 CNG -in its two configurations AS440S46T/P 4×2 tractor and AS460S46 T/P 6×2- enlarges the family of the “Natural Power” range with the most powerful alternative fuel engine in the Argentine market. With a new cab and ample space for greater comfort on long-distance missions, the vehicle is designed for the demanding working conditions of South America. It offers an FPT Industrial Cursor 13 engine, designed and developed to be propelled with natural gas, with a power of 460 HP and 2,000 Nm of torque, complying with Euro VI regulations and with a Piek noise emission certification of 71 Db.

The truck has eight tanks of 115 liters of CNG each, offering a total of 920 liters of CNG, allowing an approximate range of 600 kilometers. Regarding LNG option, IVECO approved its first Stralis versions in Argentina, being a commitment to the future in terms of alternative energies. Sharing the same technical features of CNG, the LNG-powered truck has two tanks of 540 liters each, offering a range of up to 1,600 kilometers depending on the mission of the carrier, making it the option of choice for long-distance journeys. This figure allowed IVECO the world record of kilometers of autonomy with trucks propelled by alternative fuel in a test developed in Europe. “With vehicles 100% manufactured and developed to run on CNG and LNG as well as with bio-CNG and bio-LNG, we confirm once again our leadership in alternative and sustainable fuels at a global level. With a history already established in Argentina, where we were pioneers in CNG, we will continue working for the needs of our customers and caring for the environment. These vehicles are the ideal option for our medium and long distance carriers, offering the same performance as the equivalent diesel version, with great savings in the fuel costs,” said Francisco Spasaro, Commercial Director of IVECO in Argentina. Likewise, the development of the homologation completed the requirements of ENARGAS (National Gas Regulatory Entity) in Argentina. “The new certification is endorsed with regard to Active and Passive Safety by the Undersecretary of Industry, under the Ministry of Productive Development, and in terms of polluting emissions by the Secretary of Environmental Control and Monitoring under the Ministry of Environment and Sustainable Development,” added Emanuel Bouson, responsible for Approvals and Technical Regulations at IVECO in Argentina.

https://www.ngvjournal.com/s1-news/c3-vehicles/iveco-obtains-approval-for-the-first-lng-powered-stralis-in-argentina/

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which has allowed the installation of an Ultra-compact Gas Station. The service station is located in only 310m2, being completely passable by vehicles on 95% of its surface, thus eliminating any impact on vehicle circulation flows and reducing the aesthetic impact. It has an 80,000 liter LNG tank, which works at low pressures (3 bars). The tank, which does not occupy space for the service station, has a submerged pump and the capacity to supply up to 12,000kg/h, and 10,000 kilos of CNG per day. The facility has an buried coldbox, an “on the fly” conditioning system and allows the installation of up to 2 double dispenser (4 hoses) of LNG for trucks and heavy vehicles, and 1 double dispenser (2 hoses) of CNG for passenger cars, light vehicles and trucks. Safer and with fewer necessary safety distances, the station is monitored remotely, guaranteeing its perfect operation and allowing any incident to be quickly resolved. The Yellow Project has been developed by HAM Criogénica and our R&D department, which in constant contact with our customers, suppliers and manufacturers, works to develop high quality and reliable advances in improving infrastructure and logistics service. CNG-LNG, taking respect for the environment as a starting point. The tank has been manufactured by Vakuum, a HAM Group company, specialized in the design, production of semi-trailers and mobile units for the transportation of LNG and gases from the Air, following the latest innovations and quality and design regulations from the EU and ASME. The rest of the equipment has been designed and manufactured at HAM facilities.

https://www.ngvjournal.com/s1-news/c4-stations/yellow-project-first-european-natural-gas-station-with-a-buried-tank/

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which runs parallel to the Mediterranean coast, beginning its journey in Algeciras and ending in Abrera, passing through towns such as Marbella, Almería, Murcia, Elche, Alicante, Valencia, Castellón and Tarragona, among others. HAM’s new natural gas mobile unit has a tank of 20m3 and has a dispenser with a hose for refilling LNG to trucks and heavy vehicles, and a CNG hose for refueling passenger cars and light vehicles. It is a public filling station, where customers can access 24/7. HAM Group continues to innovate with its portable solutions for the supply of natural gas, such as their mobile stations HAM Benavente LNG-CNG, HAM Murcia LNG, HAM Riba-roja CNG-LNG and Lidl Suiza LNG, becoming a benchmark in the sector and ensuring customers can enjoy the advantages of CNG and LNG quickly, efficiently, safely and economically. With this new refueling mobile unit in Alicante, HAM expands its network to 71 service stations, between fixed and mobile, spread across Spain and strategic points on the main European road transport routes.

https://www.ngvjournal.com/s1-news/c4-stations/spain-ham-launches-cng-lng-mobile-refueling-station-in-alicante/

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Britain’s National Grid said on Thursday that biomethane has been connected to the transmission system for the first time, as part of efforts to decarbonise the gas network. The renewable gas biomethane has been produced by Biocow Ltd’s Murrow anaerobic digestion plant in Cambridgeshire from cattle manure and straw. The pipeline will support flows of up to 15,000 cubic metres of biomethane per hour, enough for the annual gas consumption of 10 average households each hour. “Alongside hydrogen, biomethane will play a critical role in the journey to Britain achieving net zero,” said Ian Radley, head of gas systems operation at National Grid. Britain has a goal of reaching net zero greenhouse gas emissions by 2050 which will require a huge increase in renewable energy and investment to increase the stability of its energy networks.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/biomethane-connected-to-uk-gas-network-for-first-time-national-grid/77536716

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the research center mining Mining3. It will develop hybrid powertrain modules for Chilean mining, replacing conventional diesel ones with units made up of state-of-the-art batteries and hydrogen fuel cells. With this initiative, in the future it will be possible to reduce 100% of greenhouse gas emissions from mining vehicles, extending to the entire mobility sector (pickup trucks to CAEX mining trucks) and enabling the development of a new economic pole based on green hydrogen. The project, one of the winners of the 2020 version of CORFO’s Innova Alta Tecnología Program, will seek to generate a versatile prototype, with multiple uses in mining and the ability to enable and generate new uses of this clean fuel in the country. “We are convinced that sustainable reactivation is essential to create a more resilient and robust economy for the future. In this sense, promoting the development of a new industry such as green hydrogen, respectful of the environment and which will also inject more competition and generate thousands of jobs in our country, is key. We hope that the project led by CSIRO Chile, which joins two other projects supported by Corfo and that promote the use of green hydrogen in mining, will be a great contribution in this regard,” stated Pablo Terrazas, Executive Vice-President of CORFO. The objectives of the project include the design and manufacture of a prototype of this hybrid powertrain that will be trialed on a test bench where the mining conditions will be replicated, including its operational use profile, under different loads, routes and altitude conditions. In turn, the optimal combination of cells/batteries will be obtained, it will solve the connection problems between these sources, it will study different hydrogen refueling strategies, in addition to collaborating in the adaptation and creation of protocols/regulations that guarantee safety in large scale operations.

“Thanks to the support of CORFO and our alliance with ENGIE and Mining3, we are taking concrete steps to transform Chile into a producer and exporter of green hydrogen. With almost 10 years in Chile and more than 100 in Australia, the CSIRO model based on collaboration, puts the Hydra project as a concrete example in this sense,” said Dr. Orlando Jiménez, Executive Director of CSIRO Chile. “We are happy to have CORFO’s support for the Hydra project. We believe that renewable hydrogen is key to decarbonizing the mining industry. We look forward to joining forces with CSIRO Chile and Mining3 to contribute to Chile’s energy transition and help boost the country’s hydrogen economy,” added Michèle Azalbert, CEO of ENGIE’s Hydrogen Business Unit.

https://www.ngvjournal.com/s1-news/c7-lng-h2-blends/chile-supports-green-hydrogen-project-to-decarbonize-mining-vehicles/

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