Hi, I am Caroline Doyle, an associate editor at Horizon Engage. This week, we’re covering:
- Japan will begin accepting applications for a hydrogen subsidy, including for clean hydrogen already subsidized elsewhere.
- Azerbaijan has found its seventh European customer for gas in Slovenia, encroaching on Russia’s old turf.
- Cyprus’s president is in hot water over the ongoing LNG terminal turmoil and has vowed to punish those responsible for its mishandling.
This week’s Quote of the Week comes from Argentina’s former president this time, Mauricio Macri, who reminded Milei that he’d like to be wooed before pledging his party’s alliance for next year’s midterm elections. Read more below.
Japan Doubles Up Hydrogen Subsidies
This month, Japan’s Ministry of Economy, Trade and Industry (METI) will begin accepting applications from hydrogen producers for the contract-for-difference (CfD) subsidy. METI also said it is willing to subsidize imported hydrogen that other countries have already subsidized, allowing developers to “double up.”
The CfD subsidy will not be proportional to emission levels, remaining the same as long as producers stay under a certain threshold. As such, most developers will likely produce blue hydrogen because it is cheaper. METI plans to award the subsidy to at least one applicant by the end of the year — whoever wins must start production by 2030.
Slovenia Becomes Azerbaijan’s Latest Customer
Following Russia’s invasion of Ukraine in 2022, Azerbaijan has slowly been working to fill the gap it left in Europe’s gas supply. As of 1 August, Slovenia became the seventh country sourcing gas from Azerbaijan; previously, 40% of its gas consumption came from Gazprom.
Azerbaijan’s role in Europe’s gas landscape has grown with little consequences — so far. Although Russia has not yet visibly pushed back to defend its turf, the more constrained it becomes, the more attractive pushing back against Azerbaijan looks. As Baku expands its growing regional energy power, its position becomes slightly more precarious.
Cypriot President Vows Consequences for LNG Fiasco
Cypriot President Nikos Christodoulides has vowed to punish those responsible for the ongoing fiasco around Cyprus’s LNG import terminal, which has the Chinese-led consortium, CMC, pull out of the project. Cyprus, however, has a long track record of doing the opposite and overlooking transgressions.
However, with the European Public Prosecutor’s Office investigating alleged irregularities in the project and the initial tender, Christodoulides cannot look the other way. Furthermore, the project has already cost $590mn, and the EU is demanding Cyprus return the $75mn it has already disbursed. Though Christodoulides is undoubtedly in hot water, many doubt he—or anyone else—will be held accountable.
Quote of the Week
Former Argentine President Mauricio Macri is trying to win his party some influence in the Milei administration. Knowing Milei needs his party’s alliance for next year’s midterm elections, Macri is confidently using his leverage: “Nobody in the 21st Century gets married before first living together.” It looks like Milei will have to show his commitment before locking down his midterm nuptials.
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