Biofuels and feedstocks
Overview
As governments continue their attempts to lower emissions in line with international targets, demand for biofuels is increasing significantly. Global biofuels output is expected to rise by more than 3mn b/d in the next five years, and such rapid growth means that new threats and opportunities are constantly emerging. Staying on top of the ever-changing biofuels landscape is becoming more challenging.
The Argus biofuels solution provides in-depth pricing and market analysis across the entire global renewable fuel supply chain, from original feedstock to finished fuel – with prices and key insights into regional biodiesel, ethanol and feedstock markets, and more.
Latest biofuels news
Browse the latest market moving news on the global biofuels industry.
Argus launches US low-carbon methanol pricing
Argus launches US low-carbon methanol pricing
Houston, 10 May (Argus) — Argus Media today launched pricing instruments for the US low-carbon methanol sector. Argus assessed US low-carbon methanol at $990.7/t fob USGC this week, down by $10.05/t from last week amid softening global markets. European bio-methanol prices slipped by $11/t to $1,080/t this week. The price had been as high as $1,100/t on 17 April. The calculated cost of USGC low-carbon methanol production stood at $1464.7/t, down by $16.55/t from last week. Weaker RINs cost offset higher natural gas prices this week. Low-carbon methanol is attracting widespread attention from multiple industrial sectors because it offers a decarbonization route both for the chemical industry's traditional end-uses and for reducing the sulphur content and carbon footprint of shipping, where it can be used as a bunker fuel. Rather than a specific bio-methanol, green methanol, blue methanol or an e-methanol price, the nomenclature of a comprehensive low-carbon methanol price was determined to be the best approach. In discussions with market participants, feedback indicated an initial wide approach was necessary in the emerging USGC low-carbon methanol market space. Developing technologies that are still in a nascent stage, if split, would segment the market and stifle price generation and transparency, said one trader. The all-encompassing approach allows the Argus US Low-Carbon Methanol price to develop as a standard price index. "It's the molecule that matters," the trader said. Moving forward, this would allow the price discovery process to progress as production volumes grow, and then, if necessary, adjust methodology to reflect the developing market. For more information about this new pricing service, please contact US methanol senior reporter Steven McGinn at steven.mcginn@argusmedia.com. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil narrows lower biofuel mix mandate in south
Brazil narrows lower biofuel mix mandate in south
Sao Paulo, 10 May (Argus) — Brazil's oil regulator ANP dialed back the reduced biofuels mandatory blend in Rio Grande do Sul state to four cities amid the recent flooding in the region. Low blending areas now apply only to the cities of Canoas, Esteio, Rio Grande and Santa Maria. The measure will still last for 30 days, starting on 4 May. ANP lowered the anhydrous ethanol blend on gasoline to 21pc from the current 27pc in the entire state earlier this week , while pushing the mandatory biodiesel mix for 10ppm (S10) diesel down to 2pc, from the usual 14pc. The agency also temporarily suspended the blending mandate for diesel with 500ppm of sulfur (S500). ANP said it decreased the exemption's coverage as it identified "that the supply situation in the rest of the state had stabilized." Rainfall in Rio Grande do Sul blocked railways and highways where biofuels are transported to retail hubs. Floods in the state have left at least 116 dead and 143 missing, according to the local government. By Laura Guedes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil reports more off-spec biodiesel March-April
Brazil reports more off-spec biodiesel March-April
Sao Paulo, 10 May (Argus) — The rate of Brazilian biodiesel falling below required blending limits nearly tripled in March and April after the mandate was increased to 14pc, according to a government analysis. Hydrocarbons regulator ANP's Fuel Quality Monitoring Program (PMQC) found 271 instances of biodiesel below the required level between 1 March — when the blending mandate was increased from 12pc to 14pc — and 30 April. In January and February the PMQC found 97 instances of blends that did not meet the 12pc level. An increase in missed blending targets is common during transitions to higher blending levels, according to the agency, mainly due to difficulties in depleting inventories of the lower-level blend. Several plants claim that a slowdown in biodiesel withdrawals in the first four months of the year also contributed to challenges in complying with the new blending level. Some retailers' loss of market share has also been cited as an aggravating factor. In March, 154 recorded instances of non-compliance covered blending levels between 12.3pc and 13.9pc, according to ANP data. In April, there were 101 occurrences within the 12.3pc and 13.9pc range. Another eight instances of non-compliance were also recorded in each of March and April. The PMQC is a monitoring program and does not have the same effect on market behavior as inspections, according to ANP. "It is used as one of the intelligence vectors for the planning of ANP's inspection actions," the agency said. Only irregularities identified in the context of inspectios can result in fines levied against fuel distributors. By Alexandre Melo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan Airport Terminal, Euglena eye SAF supply chain
Japan Airport Terminal, Euglena eye SAF supply chain
Tokyo, 10 May (Argus) — Japan's biofuel producer Euglena and airport operator Japan Airport Terminal (JAT) plan to explore commercial delivery of sustainable aviation fuel (SAF) to aircrafts at Haneda airport in Tokyo. Euglena and Japan Airport Terminal signed an initial agreement on 8 May to build a commercial SAF supply chain at Haneda airport, aiming to ship up to 50,000 kilolitre (kl)/yr. This will account for 23pc of the 220,000 kl/yr SAF that Haneda airport will require in the future to attain Japan's 2030 SAF supply goal. Japan aims to replace 10pc of conventional aviation fuel consumption with SAF within the country by 2030. Euglena plans to procure SAF from its 12,500 b/d biorefinery in Malaysia that is expected to begin commercial operations in 2025. Euglena has co-operated with Malaysian state-owned energy firm Petronas and Italian energy firm Eni to build the plant. Euglena also issued its first ¥1bn ($6.4mn) green bond to Japan Airport Terminal for building the commercial biofuel manufacturing plant. Euglena is a producer of biofuel called Susteo, which contains used cooking oil (UCO) as well as euglena oils and fats extracted from microalgae as raw materials. Susteo generates CO2 during the fuel combustion stage but the plants, which are the raw material for UCO, and euglena microalgae absorb CO2 during photosynthesis as they grow. The company in 2022 provided Susteo to government aircraft . Japan's SAF demand is estimated to reach 1.7mn kl/yr by 2030, comprising 880,000kl for domestic flights and 830,000kl for international flights, according to the ministry of land, infrastructure and transportation. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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