Mar 27, 2020

Eni’s Badamsha wind farm commences production

Renewable Energy
Wind
Oil & Gas
William Girling
2 min
Italian oil and gas company Eni has announced that its Badamsha wind farm in Kazakhstan is ready to begin commercial operations
Italian oil and gas company

Italian oil and gas company Eni has announced that its Badamsha wind farm in Kazakhstan is ready to begin commercial operations.

Developed through Eni’s renewable energy subsidiary ArmWind LLP, the 48MW site is located in the Aktobe region in the northwest of the country. Capable of generating 198 GWh of energy, Badamsha will mitigate 172,000 tonnes of CO2 per year. 

Primarily known for its business involving fossil fuels, this project represents Eni’s first significant investment in renewable energy. 

However, it is certain not to be the last; the company has already secured an additional 48MW and 50MW developments - an extension to the Badamsha site and a solar plant in Turkestan respectively.

Finding a new focus

As well as continuing its oil operations in the Northern Caspian Sea, which is currently producing 180,000 barrels of oil per day, Eni is enthusiastically embracing new ways of generating energy.

“These initiatives are in coherence with Eni’s strategy that combines economic sustainability with environmental sustainability, allowing the company to be a leader in the market,” it said in a press release.

SEE ALSO:

Stating that its new goal was to diversify its portfolio through supplying ”decarbonized energy products and actively contributing to the energy transition process”, Eni plans to achieve 5GW of renewable energy by 2025.

Planning for the future

Whilst some companies remain unsure of how COVID-19 (coronavirus) will affect their business, Eni has revised its 2020-2021 business plan with “actions to maintain robust balance sheet and dividend,” said Claudio Descalzi, CEO.

Accordingly, the company will reduce capital expenditure by €2bn or 25% and operating expenses by €400mn for 2020, with capex expected to drop even further the following year to between 30 and 35%. 

Compounded by falling oil prices that have recently compromised the market, Eni will continue with this strategic thinking until the situation improves. Nevertheless, the company intends to maintain an output of 1.84mn barrels per day.

Although there’s clearly difficult time ahead, Descalzi remained stoic and confident in the company. “We are taking these actions in order to defend our robust balance sheet and the dividend while maintaining the highest standards of safety at work,” he concluded.

Share article

Jun 7, 2021

Trafigura and Yara International explore clean ammonia usage

Shipping
fuel
Decarbonisation
ammonia
Dominic Ellis
2 min
Commodity trading company Trafigura and Yara International sign MoU to explore developing ammonia as a clean fuel in shipping

Independent commodity trading company Trafigura and Yara International have signed an MoU to explore developing ammonia as a clean fuel in shipping and ammonia fuel infrastructure.

Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050. 

How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.

Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:

  • The supply of clean ammonia by Yara to Trafigura Group companies
  • Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
  • Development of new clean ammonia assets including marine fuel infrastructure and market opportunities

Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.  

There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.

Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.

Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.

Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.

It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.

Share article