ET Highlights: California-Quebec Q3 carbon auction, India’s Article 6.2 deal with Japan and Dutch biobunkers demand

Energy transition highlights: Our editors and analysts bring together the biggest stories in the industry this week, from renewables to storage to carbon prices.

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California-Quebec carbon Q3 auction settles above expectations, fully sells out

The California-Quebec joint cap-and-trade program's third-quarter 2025 auction settled higher than expected after hitting the floor price in the previous quarter, California Air Resources Board data showed Aug. 27.

Auction 44 settled at $28.76 per allowance, up 11% from Auction 43 when the settlement cleared at the floor price for the first time since August 2020. Auction 44 took place Aug. 20, and results were released Aug. 27.

“This is definitely a welcome development for California and Quebec after Q2’s undersubscription,” S&P Global Commodity Insights analysts Aldo Muller and Matt Williams said Aug. 27. “Prices settled over a dollar above our expectations. Now, if the Q4 auction settles above the price floor, those unsold allowances from Q2 will be put back on offer.”

In the second quarter, just 43.8 million of the offered 51 million current-year vintage 2025 allowances sold in the May auction. Allowances owned by California that remain unsold for more than two years are transferred to the Allowance Price Containment Reserve for use when an auction settles at the price ceiling.

SPGlobal.com

Dutch regulatory change could drive up biobunker prices: trader

Shipping companies should procure more biobunker fuels in the coming months with the Dutch government's proposed regulatory change set to push up prices next year, bunker trader Dan-Bunkering said Aug. 26. "From now until year-end, the Dutch biofuels market could enter a perfect storm of rising costs and compliance pressure," Dan-Bunkering said, adding that advanced biofuel prices could increase due to more renewable demand and mature biofuel prices could rise because of reduced subsidies.

India, Japan agree to promote clean hydrogen/ammonia ecosystems

India and Japan have agreed to promote low-carbon and renewable hydrogen/ammonia ecosystems in both countries and other nations, according to a joint declaration of intent between India's Ministry of New and Renewable Energy and Japan's Ministry of Economy, Trade and Industry. The announcement coincides with Indian Prime Minister Narendra Modi's visit to Japan to strengthen economic ties across various sectors, including energy transition-related industries.

Platts Connect

India inks first Article 6.2 deal with Japan to boost carbon market framework

India signed its first agreement under Article 6 of the Paris Agreement with Japan, widening its scope in the international carbon market through a Memorandum of Cooperation aimed at establishing a Joint Crediting Mechanism for the sale and transfer of Internationally Transferred Mitigation Outcome credits, or Article 6.2 carbon credits. The JCM will encourage investment flow, technology transfer and capacity building support for projects involving low carbon technologies, besides enabling international trading of Carbon Credits.

BP awaits UK blue hydrogen plant decision as deadline reset

BP is awaiting a planning decision for its proposed 600-MW H2Teesside carbon capture-enabled blue hydrogen plant in the UK, as the deadline for a ruling on the development was pushed back amid a legal dispute over a rival data center project on the same site. The UK government is seeking further details from South Tees Group on its proposed artificial intelligence data center development on the Teesworks site, which Redcar and Cleveland Borough Council approved at the start of August.

INTERVIEW: Oman's Hydrom eyes Asia with roadshows for hydrogen offtake deals

Oman's hydrogen agency Hydrom is intensifying its push into Asia, planning roadshows as it seeks to secure the first commercial offtake agreements for the sultanate's low-carbon hydrogen projects, managing director Abdulaziz al-Shidhani told Platts, part of S&P Global Commodity Insights. Shidhani said Hydrom was seeking partnerships ahead of its third auction round, which opened with a Statement of Qualification deadline of Oct. 31, as it conducted the Oman-Korea Green Hydrogen Investment Forum in Seoul this month.