Energy Transition, Renewables, Emissions, Carbon
April 22, 2026
ET Highlights: EU eSAF projects stall, carbon market soul searching, shipping companies study on-board carbon capture
Energy Transition Highlights: Our editors and analysts bring together the biggest stories in the industry this week, from renewables to storage to carbon prices.
Top story
EU eSAF projects stall as price forecasts fall and rules in question
High capex, a steeply falling cost curve and uncertainty over EU mandates and offtake terms are delaying investment decisions, leaving dozens of synthetic sustainable aviation fuel (eSAF) projects without final approval.
The eSAF or power-to-liquid cost curve sits very high today but has one of the steepest downward cost trajectories over time, S&P Global Energy consultant Rahul Malik said April 16.
The challenge this creates for investors is timing risk; early, first-of-a-kind projects enter the market at very high production costs, while later projects benefit from rapid cost reductions driven by technology learning, scale up, and declining renewable power and electrolyzer costs, Malik said.
"This means early movers are structurally exposed to higher costs and the risk that their production becomes uncompetitive relatively quickly," Malik said. That, in turn, makes long-term price formation difficult and creates uncertainty around future margins, he added.
Benchmark of the Week
$2,641/mt
Platts SAF assessments CIF Northwest Europe on April 15, compared with $1,550/mt for conventional jet fuel and eSAF levelized production cost estimates of $7,470/mt.
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INTERVIEW: War and energy crisis spur EU carbon market soul-searching: IETA chief
Geopolitical shocks and an energy crisis spurred by the war in the Middle East are compelling European policymakers to reconsider how carbon pricing fits alongside energy security and industrial competitiveness, Dirk Forrister, president and CEO of the International Emissions Trading Association, said April 14. Speaking to Platts in an interview, Forrister explained how these events were forcing a fundamental reassessment of how climate policy, global trade and energy security intersect in the EU Emissions Trading System and in global carbon pricing.
Surrenders rise 58% in Australia’s Safeguard Mechanism for 2024-25, SMC use up
Australia's Safeguard Mechanism saw a sharp increase in carbon credit surrenders for the 2024-25 compliance period, with total units surrendered rising 58% year over year to 13.4 million, according to Clean Energy Regulator data. The increase was driven by higher use of Australian Carbon Credit Units and Safeguard Mechanism Credits, as facilities adjusted to stricter baselines and a growing compliance burden.
INTERVIEW: Mexico’s new carbon market must move carefully to build confidence
Successfully implementing an emissions trading system in Mexico means more education and market engagement, an environmental regulations expert said, as the country's carbon market takes its first steps. Implementing an emissions trading system in Mexico in 2026 will require navigating complex legal frameworks and community governance to guarantee the program's success, Estuardo Anaya, environmental and regulatory specialist at Mirai Abogados, told Platts.
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Amogy, GS E&C form JV to advance renewable ammonia-based power plant in South Korea
US' Amogy and South Korea's GS Engineering & Construction have signed a joint venture agreement to establish and operate ammonia-based power generation, with renewable ammonia being used to supply clean electricity, the companies said. The venture will combine Amogy's ammonia cracking technology and GS E&C's global engineering, procurement, and construction capabilities to deploy an ammonia-based power generation system of up to 40 MW at the Yeongilman Industrial Complex in South Korea, Amogy said.
NYK, Hokkaido Electric to study onboard carbon capture
NYK and Hokkaido Electric Power Co. have signed a memorandum of understanding to study onboard carbon capture and storage (OCCS) technology, targeting decarbonization of international maritime transport, NYK said. The companies will conduct a three-year demonstration through fiscal 2028 in Tomakomai, focusing on the design and operation of carbon capture equipment to be installed on the NYK-owned coal carrier Pirika Moshiri Maru, which operates for Hokkaido Electric, the companies said.
Doubts raised about California’s ability to meet decarbonization target
Industry stakeholders expressed doubt that California can meet its goal of fully decarbonizing its power grid by 2045, citing constraints on new resource procurements and the high cost of clean generation as contributing factors. Tim Belden, principal at analytics and consulting firm Energy GPS, told Infocast’s California Clean Energy Summit in San Diego on April 16 that the state would likely need to rely on gas past 2045 to meet its power needs.