Generic Hero BannerGeneric Hero Banner
Latest market news

SGP plans 2024 FID for Panama biorefinery

  • Market: Biofuels, Hydrogen
  • 06/10/23

Final investment decision (FID) for the development of a $7.7bn biorefinery project in Panama to produce advanced biofuels is scheduled for the fourth quarter of next year.

The Golden City biorefinery project will operate on a zero-waste ecosystem strategy, chief executive of US integrated bioenergy products development company SGP Bioenergy, Randy Delbert Letang, told Argus.

The biorefinery will use non-narcotic industrial hemp oil as feedstock as well as other fats and greases to produce advanced biofuels using a process technology from Danish company Topsoe.

The plant is expected to have a capacity of 180,000 b/d and will mostly produce sustainable aviation fuels (SAF), renewable diesel and green marine diesel.

Some by-products produced at the plant will include green naphtha, which will then be used to produce secondary products such as green hydrogen. The company is targeting around 405,000 t/yr of the fuel once the project is completed.

Green hydrogen could be used at a later stage to produce tertiary products such as e-kerosene or green ammonia, but the company's decision to go ahead with the production of these fuels will depend on demand from the market, according to Letang.

The main objective of the project is to reuse every by-product produced as much as possible to minimize waste. "We'll utilize the by-product of each product we'll be making until we expire as much of the CO2 in the product as possible," Letang said. "You are going to have some sort of carbon waste but our goal is to use that [carbon] waste as much as possible with existing technologies to produce other products. This is the closest path to net zero," he added.

The plant will be developed in three phases of 60,000 b/d of capacity each. The first phase is estimated to be completed in the first quarter of 2027. The following phases will be completed within 15-18 months each.

The total cost of the project is $7.7bn but the company is focusing on attracting financing for the first phase that will cost around $3.1bn. The firm recently announced a $250mn equity commitment from Global Emerging Markets (GEM), a European private alternative investment group. SGP hopes to secure more investment from private capital, private equity funds and standard development institutions.

Although SGP has not yet signed any supply agreement with customers for the fuels, it has received interest from prospective clients, Letang said. Sovereigns and large original equipment manufacturers are the main target.

"Under the Paris Climate Agreement, and more recently, the Global Biofuels Alliance promoted by India, it is the sovereigns who have made the commitments to the energy transition," he said. "They also possess the creditworthiness and ability to uptake significantly larger volumes than individual companies for their industries."

On the feedstock side, SGP most recently signed an agreement with the Latino Farmers and Ranchers International (LFRI) organization to grow and supply 10mn acres of industrial hemp in 10 years.

Financial viability

The ability that the company has to obtain revenue through the entire supply chain, combined with the leverage of existing infrastructure, makes the project economically viable, according to Letang.

"Our goal is to drive down the cost of [sustainable] fuels for the end customers as close to parity as possible to their potential conventional petroleum counterpart," he said. "We are looking to accelerate the velocity of adoption [of sustainable fuels] in the market place."

On top of that, political and economic stability, combined with the use of the US dollar and the ability to operate within existing logistics and infrastructure with access to over 1,900 ports, will allow the firm to reach the global market for exports.

"Having the advantage of the Panama Canal, ports and channels, allows us to execute the logistics more efficiently," he said.

SGP Golden City biorefinery project
PhaseCapacity b/dCommissioning date
160,0002027
260,000To be determined
360,000To be determined

Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
19/02/25

China's GoldWind offers first biomethanol spot cargo

China's GoldWind offers first biomethanol spot cargo

Singapore, 19 February (Argus) — Major Chinese private-sector wind turbine supplier GoldWind has started offering biomethanol spot cargoes, it announced today at the Argus Green Marine Fuels Conference. The producer is currently offering a spot price of $820/t dob northeast Asia for its biomethanol, GoldWind vice president Chen Shi said at the conference, held in Singapore from 18-19 February. GoldWind is offering a total of around 120,000t of biomethanol with 70pc greenhouse gas (GHG) savings for bunkering from the fourth quarter of 2025 to the second quarter of 2026. The company plans to start up its first biomethanol unit with 250,000t/yr capacity in Xinganmeng, Inner Mongolia, by the end of 2025. The plant will feed on wind power-based green hydrogen and corn straw-based biomass. GoldWind aims to start up its second 250,000t/yr biomethanol unit in late 2026. GoldWind signed a long-term offtake agreement with Danish shipping and logistics firm Maersk in November 2023 to supply 250,000t/yr of biomethanol once it achieves full operations, likely from 2027 onwards. The company secured a second long-term offtake agreement in November 2024 with rival container liner Hapag-Lloyd, also to supply 250,000t/yr of biomethanol from 2027 onwards. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

European industry body wants e-SAF auction mechanism


19/02/25
News
19/02/25

European industry body wants e-SAF auction mechanism

London, 19 February (Argus) — A group of firms from Europe's aviation and hydrogen sectors has proposed a "double-sided" auction mechanism to unlock up to 300,000 t/yr of renewable hydrogen-based sustainable aviation fuel (e-SAF) supply in a bid to meet EU targets. In a letter to European Commission officials, the Project SkyPower group has proposed five "critical policy interventions" to boost e-SAF production and consumption. The letter was signed by more than 70 organisations, including aircraft makers Airbus and Boeing, airlines Air France-KLM, SAS and easyJet, project developers Norsk E-fuel, HIF and CIP, financing bodies ING and KGAL and industry groups Hydrogen Europe and Transport and Environment. The requests include a proposed auction mechanism similar to the German government-backed H2Global system for renewable hydrogen and derivatives that could be run by the same intermediary, Hintco, or another body. The intermediary body would hold 10-15 year purchase contract auctions for producers and then separate 3-5 year sale agreement auctions with buyers. The difference between production costs and buying prices would be bridged by revenues from the EU's Emissions Trading System (ETS), with a "short-term funding" pot of €3bn ($3.1bn) able to support between 100,000-300,000 t/yr of e-SAF production capacity, or between 2-6 50,000 t/yr plants, the Project SkyPower group said. This could be sufficient to cover roughly half the supply needed to meet the EU's binding target for e-SAF to constitute 1.2pc of all jet fuel consumed by 2030-31, the group said. The €3bn funding "would be equal to 20pc of total cumulative ETS revenues expected from aviation in the period 2030-39," Project SkyPower said. A first pilot round of the H2Global mechanism had included a specific pot for e-SAF production, but this was not allocated because of a lack of bidders . As the launch of a double-sided mechanism would take time to take effect, the EU should also establish a "bridging mechanism" that would guarantee priority access in the auctions for "the first few pioneering large-scale e-SAF projects" — which aim to reach a final investment decision by 2025-27 — Project SkyPower said. The group has urged clarity on the e-SAF mandates, saying a review of the ReFuelEU Aviation rules, scheduled for 2027, is creating uncertainty. EU member states should "be urged to publish transparent and harmonised penalty systems" this quarter, it said. More broadly, Project SkyPower wants the commission to make e-SAF a "strategic priority" in the bloc's Clean Industrial Deal. Argus is tracking 38 e-SAF projects in the EU that are planned or operational. These could together provide over 2mn t/yr of e-SAF if built as planned. But the vast majority are in very early development stages and no large-scale plant has yet reached a FID. By Jethro Robathan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Singapore adds $3.7bn clean energy funds, mulls nuclear


19/02/25
News
19/02/25

Singapore adds $3.7bn clean energy funds, mulls nuclear

Singapore, 19 February (Argus) — Singapore will add a further S$5bn ($3.7bn) to its clean energy fund, and is also studying the potential for nuclear deployment, said the country's prime minister Lawrence Wong on 18 February. Singapore's Future Energy Fund was set up in 2024 with an initial injection of S$5bn to develop clean energy options. Expanding access to clean energy is a major national imperative as "the industries of the future," such as artificial intelligence and semiconductors, are highly energy intensive, said Wong at the unveiling of the country's budget for 2025. "Be it electricity imports, hydrogen or nuclear, we need to make major investments in new infrastructure," said Wong. A short-term solution is to import low-carbon electricity from the region. Singapore expects about a third of its projected electricity demand in 2035 to be met through electricity imports, according to Wong. The country aims to import 6GW of low-carbon electricity by 2035 , and has signed supply agreements with Malaysia , as well as granted conditional approvals to projects in Indonesia. But Singapore needs to have its own domestic sources of clean power, said Wong. Singapore has been evaluating the use of low-carbon hydrogen for power, "but there are inherent challenges in the production, storage and transportation of hydrogen, which make it hard to scale up in a commercially viable manner," Wong added. Nuclear power could be another option. Singapore had considered the possibility of developing nuclear power in 2010, but assessed that conventional nuclear technologies were not suitable. Since then, there have been significant advancements in nuclear technologies such as small modular reactors (SMRs), which have better safety features than conventional reactors, said Wong. Interest in nuclear energy is also rising in the region, with several countries planning to include it in their energy mixes, such as Indonesia and the Philippines. Singapore has signed agreements with the US on civil nuclear co-operation, and is working on similar collaborations with other countries that have capabilities and experience, especially with SMRs, said Wong. Singapore submitted its new emissions reduction target on 10 February, aiming to reduce emissions to 45mn-50mn of CO2 equivalent (CO2e) in 2035 as part of its nationally determined contribution. Singapore aims to decarbonise its transport sector, which currently accounts for about 15pc of total emissions, in line with its emissions reduction goals. Singapore will introduce a new heavy vehicle zero emission scheme and a heavy electric vehicle (EV) charger grant to accelerate the adoption of cleaner heavy vehicles. The grant will provide incentives for the purchase of heavy EVs and co-funding of charging infrastructure, said Wong. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US court pauses refiner's biofuel case after EPA shift


18/02/25
News
18/02/25

US court pauses refiner's biofuel case after EPA shift

New York, 18 February (Argus) — A US federal appeals court has paused the Environmental Protection Agency (EPA)'s rejection of a refiner's request for exemptions from federal biofuel blend mandates, with relief possible for two more refiners as the US reassesses policy under a new administration. A three-judge panel on the US 5th Circuit Court of Appeals last week granted a request from Calumet's 57,000 b/d refinery in Shreveport, Louisiana, to pause a recent EPA action denying the refinery relief from its 2023 obligations under the federal Renewable Fuel Standard. The stay will remain as the court continues reviewing the legality of EPA's rejection, issued in the waning days of President Joe Biden's administration. Under the program, EPA sets annual mandates for blending biofuels into the conventional fuel supply but allows oil refineries that process 75,000 b/d or less to apply for exemptions if they can prove they would suffer "disproportionate" economic hardship. The Biden administration denied these petitions en masse, though most of these rejections were struck down by courts concerned with the government's reasoning. During his first term, President Donald Trump was more generous with refinery relief, which in turn weighed on biofuel demand and the prices of Renewable Identification Number (RIN) credits at the time. Though the 5th Circuit did not explain its decision, EPA had shifted course after the presidential transition, telling the court earlier in the week that it did not oppose Calumet's request for a stay and that it was reconsidering the refiner's earlier exemption petition. The agency said in other court cases that it would not oppose similar pauses on recently issued waiver rejections affecting Calumet's 15,000 b/d oil refinery in Great Falls, Montana, and CVR Energy's 75,000 b/d refinery in Wynnewood, Oklahoma. EPA's ambivalence makes stays more likely, leaving those refiners with little reason for now to enter the market for RIN credits. The agency still says it "takes no position on the merits" as its review of small refinery exemptions continues but the filings at least suggest the possibility of reversing prior rejections. EPA has not yet signaled a more substantive policy around how it will handle similar small refinery requests, which have piled up in recent months. There were 139 pending petitions covering ten compliance years according to the latest program data. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Omani H2 resources ‘phenomenal’: InterContinental


18/02/25
News
18/02/25

Omani H2 resources ‘phenomenal’: InterContinental

Abu Dhabi, 18 February (Argus) — Perth-headquartered InterContinental Energy is planning three large projects for producing renewable hydrogen and derivatives — Australian Renewable Energy Hub (AREH), Western Green Energy Hub (WGEH), also in Australia, and Green Energy Oman (GEO). InterContinental Energy is developing all three alongside major partners and plans to build them in several stages. The projects could together produce nearly 7mn t/yr when fully developed — although this is expected to take several decades. Argus spoke to InterContinental chief executive Alexander Tancock about the firm's approach to scaling up, the need for government support, and why Oman is a prime location for major projects. Edited highlights follow: How are your projects progressing? We have the AREH project in Australia, with BP as the operator. That is in an area called the Pilbara, which is the world's largest iron ore exporter. So it just made so much sense to make that project about green steel. A domestic green steel project means you don't have to worry about exporting losses, conversions… you use the hydrogen right there to make green steel. At our second Australian project, WGEH, with support from the government we can now achieve somewhere around $3/kg of hydrogen, which is really cost effective. That project will probably be focused on methanol and ammonia exports. Then in the Middle East, we are in Oman, where the government is really strongly behind hydrogen. It is probably one of the most — if not the most — forward-looking hydrogen governments on the planet. And the resources that we have in Oman are phenomenal. The only issue now in Oman is that the domestic play is a bit harder. The resources are there, but there are not many people. What we need to figure out is where that cheap green hydrogen goes — to find a domestic market or work with points overseas in a strategic manner. The Omani government is taking a huge role there, and we are fortunate with our project in Oman as Shell and OQ are co-investors. With OQ being the domestic energy company and Shell being the largest foreign investor — if anybody can figure this out, it would be them. When it comes to Oman — are things on track? We're on track, broadly speaking. With these large projects, time will tell if there will be slippage. But if I look at the discussions we're having with our partners and offtakers, I'd still see these projects reaching a final investment decision (FID) towards the end of this decade. What time lag do you expect between FID and construction or start-up? With our projects, the timelines are going to be a few years from FID to product, because of their scale. And then full construction will take decades. If you take our largest project, WGEH — that's 30 nodes. A node a year would be a good run rate. So WGEH will grow with the offtake market to 2050 and beyond. What exactly do you mean by ‘nodes'? The onus has to be on government to help the sector along. But the onus also has to be on us as an industry to drive our costs down, as the government is not there to just shell out money. There are a few ways of achieving that. One is to make the equipment better and cheaper, and there are good companies doing that. Then on the project side, you have to go to scale and develop architecture that allows you to make the entire project more efficient — i.e. less capital expenditure (capex) and less equipment, but the same or higher output. If you have these huge projects that are the size of small European countries, you can't build them in one go. They are just too big and no one will finance them. So you have to build them in stages. So what our team did, a couple of years ago, is to say that if we eliminate all of the high-voltage equipment, we save a lot of money and time. But that means that you have to put all your wind and solar within a certain distance of the hydrogen production. So the team optimised that, and what you end up with is this nodal unit, where you have 1-2GW of electrolysers surrounded by twice as much upstream generation capacity. And all of that wind and solar connects to this hub in the middle, where you have your electrolysers, and so all of that electricity stays at distribution voltage. With this, you save a lot of capex. Hydrogen generation takes place there and connects by pipeline to your downstream use — methanol, ammonia, green steel. Then you build a second node that has its own pipeline, and so on, like building blocks. And just like in a natural gas network, that pipeline network becomes a battery. So rather than having to pay for additional batteries, your battery comes with the pipelines you're building anyway. So for us, we think in units of nodes. That's how we develop our projects. And each node can be a standalone phase. We're working with our project partners and others, using this as the baseline. If you look at Oman's entire process, it has adopted the node as the base unit. Are you interested in participating in Oman's upcoming bid round for land? We don't need to because our first-round project is a legacy project. It is the only project that was given expansion rights, because we were a legacy player. The GEO project can go up to 25GW. Beyond Oman, I think Saudi Arabia was on your radar at some point? We had been looking over the past few years at different markets beyond our three projects, and we continue to look at other projects. But we have three incredible projects that are very, very large. So the need to deliver and focus is more where we are today, rather than expansion. Having said that, if the right project and the right partners were to come along, we would be open-minded. But we have a lot to deliver, so our focus is on that. Oman's model of auctioning off land through bidding rounds is somewhat unique. What makes the approach suitable for Oman, but not others? The Oman approach is better suited to markets where the government has more control over land. It would be difficult to implement that model in places that are full of freehold land. The Middle Eastern approach in general is one of looking for master planning and delivery, and that is something the region has done so well. You look at the infrastructure projects they've delivered across this region. Does anybody do it better? No. So that model is really well suited to environments like this. In terms of infrastructure, what do you think is most needed today? Pipelines? Import-export facilities? Storage? None of the above. The most important factor is government policy and support, because the market will not solve everything. If you can help bridge the gap between where we are now and what people are wiling to pay, the solutions are all there already. None of this really requires new technology. It just requires architecture that is optimised. So that's all solvable. Government legislation and support — that's the critical piece of the puzzle I think we're missing in most markets at this point in the industry's development cycle. InterContinental Energy H2 projects Project AREH WEGH GEO Location Pilbara, Australia Goldfields, Australia Al Wusta, Oman InterContinental Energy share % 26.39 46 21.16 Other partners (shares %) BP (63.57), CWP Global (10.04) CWP Global (44), Mirning Green Energy (10) Shell (35), OQ (25), EnerTech (18.84) Planned H2 output mn t/yr* 1.6 3.5 1.8 Planned renewables capacity GW* 26 50 25 *at final development stage - InterContinental Energy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more