Air Liquide, Asda team up on biogas operation in UK

Market: Biofuels
22/12/20

French industrial gas firm Air Liquide will install and operate six biomethane distribution stations in the UK for retail group Asda, part of the latter's aim to move its fleet of 1,000 trucks from diesel to gas by 2024.

Asda plans to commission more than 300 new trucks that run on biomethane in 2021, to reduce the environmental footprint of its transport activities. This month it took delivery of 202 gas-powered trucks from Swedish manufacturer Volvo.

Air Liquide's filling stations will be operational by the first quarter of 2021. It will install a biomethane production plant near Nottingham, in central England, by the summer of 2021 with a production capacity of 90 GWh. This will be its 10th biogas plant in the UK, and will raise its biomethane production capacity in the country to 650 GWh.

UK suppliers of biomethane produced from wastes and residues can claim 3.8 renewable transport fuel certificates (RTFC) per kilogram of biogas supplied, according to the country's renewable transport fuel obligation (RTFO) that outlines the domestic biofuels blending mandate.

Compressed biogas (bio-CNG) and liquified biogas (bio-LNG) have comparable energy efficiencies to diesel, but produce significantly lower CO2 emissions. The European Biogas Association (EBA) estimated earlier this year that a rising share of renewable gas in the road fuel mix has the potential to reduce greenhouse gas (GHG) emissions by up to 55pc by 2030 compared with conventional fuels, and said that consumption of biogas in Europe's transport sector could grow 30-fold by the same year.

By Sophie Barthel

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28/03/25

ISCC aware of EU talks on certification recognition

London, 28 March (Argus) — The ISCC, an international certification system for sustainability, said today that it is aware of discussions in an EU committee about future recognition of its certification for waste-based biofuels. It said there is no legal basis for any planned measures. Industry participants said yesterday that the EU Committee on Sustainability of Biofuels, Bioliquids, and Biomass Fuels is drafting implementing regulations that would include a two-and-a-half year pause to obligatory acceptance of ISCC EU certification for waste-based biofuels. "This action is said to be subject to further legal scrutiny and will need approval by member states," the ISCC said. Currently, member states accept EU-recognised voluntary scheme certification as proof that fuel or feedstocks are compliant with the bloc's Renewable Energy Directive (RED) sustainability criteria. There has been no official statement from the European Commission but market particpants told Argus that discussions have centred around giving individual countries more choice. "Other voluntary schemes would not be able to fill the gap. The measure would be a severe blow to the entire market for waste-based biofuels and would seriously jeopardise the ability of the obligated parties to comply with blending mandates," the ISCC said. The ISCC has been singled out in a discriminatory way and has supported European Commission and member states' investigations into alleged fraud, it said. "We are more than surprised by this step […and] are unable to see the rationale of the planned measure, which seems ad hoc and baseless," it added. Secretary-general of the European Biodiesel Board (EBB) Xavier Noyon told Argus that, if confirmed, the suspension would affect thousands of operators. "At this time, member states are refusing to comment, and we call on the commission to urgently clarify any decisions of this nature that are on the table," he said. The EBB published its own proposed revision to the RED implementing legislation last month, which expanded the supervisory power of member states over voluntary schemes and certification bodies. By John Houghton-Brown and Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Oil, biofuel groups meet to align on RFS policy

27/03/25

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27/03/25

Oil, biofuel groups meet to align on RFS policy

New York, 27 March (Argus) — Energy and farm groups met last week at the American Petroleum Institute to negotiate a joint request for President Donald Trump's administration as it develops new biofuel blend mandates, according to five people familiar with the matter. The private meeting involved groups from across the supply chain, including representatives of feedstock suppliers, biofuel producers, fuel marketers, and oil refiners with Renewable Fuel Standard (RFS) obligations. The groups coordinated earlier this year around a letter to the Trump administration on the need to update the RFS and are now seeking agreement on other program elements. According to the people familiar with the matter, the groups agree on pushing the Environmental Protection Agency (EPA) to set higher blend mandates under the program's D4 biomass-based diesel and D5 advanced biofuel categories. Groups support slightly different volume targets that are nevertheless all in "a rounding number of each other" in the D4 category, according to one lobbyist. But there is still disagreement about whether to ramp up mandates quickly in 2026 or provide a longer runway to higher volumes. Clean Fuels Alliance America and farm groups have publicly supported a biomass-based diesel mandate of at least 5.25bn USG starting next year, which could justify a broader advanced biofuel mandate above 9bn USG, according to the people familiar, though others worry about fuel cost impacts if mandates spike so quickly. The current mandate for 2025 is 7.33bn USG in the advanced biofuels category, including a 3.35bn USG mandate for the biomass-based diesel subcategory, so the volumes being pushed for future years would be a steep increase. The RFS, highly influential for fuel and commodity crop prices, requires oil refiners and importers to blend annual amounts of biofuels into the conventional fuel supply or buy Renewable Identification Number (RIN) credits from those who do. The idea behind the groups' coordination is that the Trump administration might more quickly finalize RFS updates if lobbyists with a history of sparring over biofuel policy can articulate a shared vision of the program's future. One person familiar said the effort comes after the Trump administration directed industry to align biofuel policy goals, though others said they understood the coordination as largely voluntary. EPA did not provide comment. There is less agreement around the program's D6 conventional biofuel category, which is mostly met by corn ethanol. Oil groups have in the past criticized EPA for setting the implied D6 mandate at 15bn USG, above the amount of ethanol that can feasibly be blended into gasoline, though excess biofuels from lower-carbon categories can be used to meet conventional obligations. Ethanol interests support setting the D6 mandate even higher than 15bn USG, which could be a tough sell. The discussions to date have not involved targets for D3 cellulosic biofuels, a relatively small part of the program. A proposal to lower 2024 volumes has hurt D3 credit prices, signaling that future mandates are effectively optional, according to frustrated biogas executives , and has reduced the salience of the issue for other groups. A proposal from President Joe Biden's administration to create a new category called "eRINs" to credit biogas used to power electric vehicles has similarly not come up. "We're not expecting to see any attempt to include eRINs in this next [RFS] proposal," Renewable Fuels Association president Geoff Cooper told Argus earlier this month. The meeting last week was largely oriented around the RFS, though a National Association of Truck Stop Operators representative raised the issue of tax policy too. The group has been frustrated by the expiration of a long-running blenders credit and the introduction this year of a less generous credit for refiners, which is only partially implemented and has spurred a sharp decline in biomass-based diesel production. But others involved in negotiations, while they acknowledge tax uncertainty could hurt their case for strong mandates, are trying to avoid contentious topics and focus mostly on volumes. Republican lawmakers are separately weighing whether to keep, repeal, or adjust that credit to help out fuel from domestic crops, and there is no telling how long that debate might take to resolve. Another thorny issue discussed at the meeting is RFS exemptions for small refineries. Biofuel producers strongly oppose such waivers and say that exempted volumes should at least be reallocated among facilities that still have obligations. Oil groups have their own views, though it is unclear how involved the American Fuel and Petrochemical Manufacturers — which represents some small refiners and has generally been more critical of the RFS than the American Petroleum Institute — are in discussions. EPA is aiming to finalize new volume mandates by the end of this year , people familiar with the administration's thinking have said, though timing for a proposal is still unclear. Future conversations among energy and farm groups to solidify points of unity — and strategize around how to downplay disagreements — are likely, lobbyists said. RIN prices rally Speculation over the trajectory of the RFS, and the potential for higher future volumes, supported soybean oil futures and widened the bean oil-heating oil (BOHO) spread. The BOHO spread maintains a positive correlation with D4 RIN prices as a widening value raises demand for D4 credits as biofuel producers look to offset higher production costs. Thursday's session ended with current-year ethanol D6 credits valued between 79¢/RIN and 82¢/RIN, while their D4 counterparts held at a premium and closed with a range of 84¢/RIN to 89¢/RIN. These gains each measured more than 5.5pc growth relative to Wednesday's values. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Virgin, Qatar airlines partner on Australia SAF project

27/03/25

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27/03/25

Virgin, Qatar airlines partner on Australia SAF project

Singapore, 27 March (Argus) — Privately-held airline Virgin Australia and state-owned carrier Qatar Airways will partner with bioenergy firm Renewable Developments Australia (RDA) on a sustainable aviation fuel (SAF) project near the city of Charters Towers in northern Queensland state. The project seeks to build an alcohol-to-jet (AtJ) facility with a nameplate capacity of 96mn litres/yr of SAF to be supplied to nearby airports, most likely to terminals at Townsville and Cairns city. The refinery is in the pre-final investment decision stage and is aiming to reach first output in early 2029, according to RDA. "Our SAF facility will be a fully integrated production site, generating sustainable fuel from bioethanol derived from locally grown sugarcane," RDA managing director Tony D'Alessandro said on 27 March. SAF by-products will be used to generate renewable power on-site and increase sustainability credentials, RDA said. Qatar last year agreed to buy a 25pc stake in Virgin , Australia's second-largest airline, with plans to increase international flights to Australia using Qatar planes wet leased by Virgin approved last month. The development comes after Virgin last week agreed to a deal with Australian refiner Viva Energy to operate services from the town of Proserpine in north Queensland using a SAF blend for several months this year . North Queensland's sugar industry has attracted interest from other developers of AtJ plants, including Australian bioenergy developer Jet Zero's 113mn l/yr Project Ulysses at Townsville, which has attracted funding from investors including Australian carrier Qantas, Airbus and Japanese energy conglomerate Idemitsu Kosan. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UK eyes 80pc maritime emissions cuts by 2040

26/03/25

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26/03/25

UK eyes 80pc maritime emissions cuts by 2040

London, 26 March (Argus) — The UK is aiming to reduce fuel lifecycle greenhouse gas (GHG) emissions in its domestic shipping by 30pc by 2030 and 80pc by 2040 compared with 2008 levels, reaching zero by 2050. The goals are "intentionally ambitious", the UK government said, and will be supported by both domestic and international policy measures as set out in its new maritime decarbonisation strategy. The first phase of the strategy "will rely on existing IMO regulation" to improve vessel efficiency this decade, the government said. The second phase will centre on larger vessels. One key policy in the strategy is pricing maritime emissions, which the government expects to do through a combination of pushing for the IMO to introduce a global shipping GHG levy from 2027, and the government's existing plan to extend the UK emissions trading scheme (ETS) to domestic maritime emissions from next year. The government will "work to understand how these schemes interact, and to avoid any double charging of emissions", it said. It is still to consider the feedback to its recent consultation on technical elements of the sector's inclusion in the UK ETS, it added. The government also intends to regulate maritime fuel use, both by pushing for IMO-level standards this year on the GHG intensity of fuels, and implementing domestic UK fuel regulations on which it plans to consult in 2026. Calls for evidence were also published alongside the strategy on both potential requirements for zero or near-zero at-berth emissions, with a formal consultation on this planned next year, and on measures to support the decarbonisation of small vessels and targeted maritime sub-sectors. For the latter, the government expects to focus on vessels "with a clear route to decarbonisation". "Measures for harder-to-decarbonise vessels may not be required until the mid-to-late 2030s," it said. Maritime emissions accounted for 8pc of the UK's transport emissions in 2022, despite having declined by 30pc compared with 1990 levels, government data show. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Lula visits Japan to talk ethanol, Cop 30, beef

25/03/25

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25/03/25

Lula visits Japan to talk ethanol, Cop 30, beef

Sao Paulo, 25 March (Argus) — Brazilian president Luiz Inacio Lula da Silva traveled to Japan on Tuesday in search of energy transition agreements and new market opportunities to improve trade relations between the countries. Bilateral Japan-Brazil trade fell to around $11bn in 2024, down from $17bn in 2011, the Brazilian government said. Brazil exported $730mn in goods to Japan in January-February, while importing $995mn from the Asian country in the period, according to Brazil trade ministry data. Exports dropped by almost 13.5pc from a year before in the two-month period, while imports grew by nearly 25pc. "Firstly, we have [a shortfall] to turn around," Lula said. Brazil will also ask Japan to join its growth acceleration plan . He is accompanied by 11 ministers and four members of congress, including senate president Davi Alcolumbre and lower house president Hugo Motta. Ethanol market Brazil aims to sell more ethanol to Japan, as the Asian country expects to increase its ethanol blend to 10pc from 3pc by 2030. "If Japan blends 10pc of ethanol into gasoline, it will be an extraordinary step not only for us to export to them but for them to be able to produce in Brazil," Lula said. Japan received 3.4pc of Brazil's ethanol exports in 2024, according to Brazil's development and trade ministry. Cop 30 and energy transition Lula's visit also seeks to attract investment in renewable energy, forest revamps and new donations to the Amazon Fund, as well as a "strong commitment" from Japan at the Cop 30 summit, to be held in Brazil later this year. Brazil aims to export clean fuels to generate power to Japan, as power imports account for more than 80pc of all Japanese power demand and "a large share of it comes from fossil sources," according to the Brazilian foreign relations ministry's Asia and Pacific secretary Eduardo Saboia. Brazilian and Japanese companies announced earlier this year plans to produce biomethane in Brazil . The renewable fuel would supply both countries. Brazil and Japan should also sign a deal to help recover the Cerrado biome, which is the second largest biome in Brazil and the second most endangered. It comprises of savanah grasslands and forest and makes up about 25pc of the nation's territory. The Cerrado lost 9.7mn hectares to wildfires in 2024, up by almost 92pc from 2023, according to environmental network MapBiomas' fire monitor researching program. Deforestation is one of Brazil's flagship issues for Cop 30 this year. The country has been pushing for forest protection and recovery initiatives as most of Brazil's past Cop pledges cannot be met with only its remaining forests. Japan and Brazil should talk about the Amazon Fund as well because Brazil "wants more", Saboia said. Japan was the first Asian country to donate to the fund with $14mn, which Saboia said was "too little." Where's the beef? Lula is also targeting opening Japan's beef market to Brazilian exports, as the Asian country imports over 70pc of all its beef. Lula met with members of the beef exporters association Abiec in his first day in Japan to discuss the matter. The bulk of Japan's beef imports — 80pc — come from the US, the Brazilian government said. Brazil does not currently export beef to Japan. "Brazil has the logistic capacity to increase exports and double beef exports every four years," transport ministry Renan Filho said. Brazil has been trying to enter Japan's beef market for over two decades. This time, Lula expects to achieve a technical visit from Japan to inspect Brazil's beef producing conditions as a first step toward accessing the Japanese market. Lula will depart to Vietnam on 28 March to debate a plan to turn the country into one of Brazil's strategic partners. Only Indonesia is considered a Brazil strategic partner in southeast Asia. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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