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European biogas production could double by 2030: EBA

  • Market: Biofuels, Natural gas
  • 28/01/21

Biogas and biomethane production in Europe could double by 2030 and more than quadruple by 2050, according to the European Biogas Association (EBA).

Around 19,000 biogas plants and 725 biomethane plants are already in use in Europe, producing around 167TWh of biogas and 26TWh of biomethane. The EBA projects overall production to increase to up to 467TWh by 2030, of which around 117TWh will be available for the road transport sector. This will allow for an increase in the share of biomethane used to fuel Europe's natural-gas vehicle fleet, which it said will comprise around 13.2mn vehicles by that date.

In comparison, only around 3.9TWh of biomethane was used to fuel natural-gas vehicles on European roads in 2020.

Biomethane, which is purified biogas that can be used as a substitute for natural gas, will primarily play a role in those sectors in transport that are difficult or impossible to electrify, such as heavy-duty truck operations, according to participants of the recent virtual Fuels of the Future conference.

Compressed biogas (bio-CNG) has an advantage, in that much of the supply chain and infrastructure is in place. This year, most of the around 850 CNG filling stations in Germany have switched to biomethane, Eon Biogas' head of portfolio management Claus Bonsen said during the conference. The premium of bio-CNG to fossil CNG of around 5¢/kWh can be compensated by participating in the German greenhouse gas (GHG) emission reduction certificate market.

But additional investment is needed to increase the market share of liquefied biogas (bio-LNG), because suppliers will have to change their supply chain and the number of gas liquefaction plants is limited. The LNG market in Germany will therefore remain mainly fossil in the near future, but the bio-LNG sector will grow in the mid- and long term, Bonsen said.

The feedstock used for biomethane production was mainly energy crops, but since 2017 producers have moved towards agricultural residues, bio- and municipal waste and sewage sludge, according to the EBA.


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07/04/25

Flooding on US rivers mires barge transit

Flooding on US rivers mires barge transit

Houston, 7 April (Argus) — Barge transit slowed across the Arkansas, Ohio and lower Mississippi rivers over the weekend because of flooding, which prompted the US Army Corps of Engineers (Corps) to close locks and issue transit restrictions along the waterways. The Corps advised all small craft to limit or halt transit on the McClellan-Kerr Arkansas River Navigation System (MCKARNS) in Arkansas because flows reached above 200,000 cubic feet per second (cfs), nearly three times the high-water flow. The heavy flow is expected to persist throughout the week, posing risks to those transiting the river system, said the Corps. Some barges have halted movement on the river, temporarily miring fertilizer resupply efforts in Arkansas and Oklahoma in the middle of the urea application season. The Corps forecasts high flows to continue into Friday, and the National Weather Service predicts several locations along the MCKARNS will maintain a moderate to minor flood stage into Friday as well. Both the Arthur V Ormond Lock and the Toad Suck Ferry Lock, upriver from Little Rock, Arkansas, shut on 6 April because of the high flows. Flows along the Little Rock Corps district reached 271,600cfs on 7 April. The Corps forecasts high flows to continue into Friday. Ohio and lower Mississippi rivers The Corps restricted barge transit between Cincinnati, Ohio, and Cairo, Illinois, on the Ohio River to mitigate barge transportation risks, with the Corps closing two locks on the Ohio River on 6 April and potentially four more in the coming days. Major barge carrier American Commercial Barge Line (ACBL) anticipates dock and fleeting operations will be suspended at certain locations along the Mississippi and Ohio rivers as a result of the flooding. NWS forecasters anticipate major flooding levels to persist through the following week. Barge carriers also expect a backlog of up to two weeks in the region. To alleviate flooding at Cairo, Illinois, where the Ohio and Mississippi Rivers meet, the Corps increased water releases at the Barkley Dam on the Cumberland River and the Kentucky Dam on the Tennessee River. The Markland Lock, downriver from Cincinnati, Ohio, and the Newburgh lock near Owensboro, Kentucky, closed on 6 April. The Corps expects the full closure to remain until each location reaches its crest of nearly 57ft, which could occur on 8 or 9 April, according to the National Weather Service (NWS). Around 50 vessels or more are waiting to transit each lock, according to the Lock Status Report published by the Corps on 7 April. The Corps also shut a chamber at both Cannelton and McAlpine locks. The John T Myers and Smithland locks may close on 7 April as well, the Corps said. The Olmsted Lock, the final lock before the Ohio and Mississippi rivers, will require a 3mph limit for any traffic passing through. The NWS expects roughly 10-15 inches of precipitation fell along the Ohio and Mississippi River valleys earlier this month, inducing severe flooding across the Ohio and Mississippi River valleys. A preliminary estimate from AccuWeather stated an estimated loss of $80-90bn in damages from the extreme flooding. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US producers look overseas as shale stalls


07/04/25
News
07/04/25

US producers look overseas as shale stalls

New York, 7 April (Argus) — US shale producers are seeking to deploy their expertise around hydraulic fracturing in international markets, in a marked departure from their recent strategy and one that is set to accelerate as domestic output slows. Continental Resources — whose billionaire founder and executive chairman Harold Hamm was one of the driving forces behind the shale revolution after figuring out how to unlock the vast resources of North Dakota's Bakken basin with horizontal drilling — recently announced plans to explore for unconventional resources in Turkey. And EOG Resources aims to kick-start a drilling campaign in Bahrain. Early successes could prompt a scramble by peers to follow suit, which would be a reversal of the trend seen in the early days of the shale boom when the industry largely retrenched from overseas investments to concentrate on exploiting domestic plays. And while decisions to venture abroad have been mainly based on individual company strategies up until now — and investors have been lukewarm at best — forecasts for shale to start plateauing in the coming years could lend them greater impetus. "Maybe, as they have success, that will draw others in," energy investment firm Bison Interests chief investment officer and founder Josh Young says. "It could be the start of something big." The caveat is that a potential international push at scale is unlikely to happen overnight, and companies such as Murphy Oil and APA — which already have exploration campaigns under way from Vietnam to Ivory Coast and Suriname — have underperformed compared with their rivals. "You are not seeing that market acceptance or market credit for international projects," Young says. That perception may shift if international exploration yields above-average returns for shareholders, boosting the case for producers to seek to build out their inventory further afield as growth in the shale patch slowly grinds to a halt. International exploration may have its own risks, given shale's success story has largely been confined to the US and Argentina to date. But the "cost of entry is relatively low compared to a North American landscape with little room for exploration and high premiums for solid assets in the Permian", consultancy Rystad Energy vice-president for North America oil and gas Matthew Bernstein says. Hamm, who took Continental private more than two years ago after tiring of public markets, recently warned that US shale is beginning to plateau . "What we really need to concentrate on is where we go as we crest right here in America, what the downside looks like," he told the CERAWeek by S&P Global conference in Houston. He also signalled a greater openness to drill outside North America. Talking Turkey Continental recently announced a joint venture with Turkey's national oil company and US-based TransAtlantic Petroleum to develop oil and gas resources in southeast and northwest Turkey. State-owned Turkish Petroleum has pegged initial estimates from the Diyarbakir basin in the southeast that could reach 6bn bl of oil and 12 trillion-20 trillion ft³ (340bn-570bn m³) of gas. The Thrace basin in northwest Turkey may hold up to 20 trillion-45 trillion ft³. "We see immense potential in Turkey's untapped resources," Continental's chief executive, Doug Lawler, says. And in February, EOG Resources announced a tie-in with state-owned Bapco Energies to evaluate a gas prospect in Bahrain. EOG will take on the role of operator, and the venture is awaiting further government approvals. "The formation has previously been tested using horizontal technology, delivering positive results," EOG chief executive Ezra Yacob says. By deploying its existing skillset around horizontal drilling and completions, EOG is confident of achieving results that are competitive with projects in its domestic portfolio. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Tariffs and their impact larger than expected: Powell


04/04/25
News
04/04/25

Tariffs and their impact larger than expected: Powell

New York, 4 April (Argus) — Federal Reserve chairman Jerome Powell said today tariff increases unveiled by US president Donald Trump will be "significantly larger" than expected, as will the expected economic fallout. "The same is likely to be true of the economic effects, which will include higher inflation and slower growth," Powell said today at the Society for Advancing Business Editing and Writing's annual conference in Arlington, Virginia. The central bank will continue to carefully monitor incoming data to assess the outlook and the balance of risks, he said. "We're well positioned to wait for greater clarity before considering any adjustments to our policy stance," Powell added. "It is too soon to say what will be the appropriate path for monetary policy." As of 1pm ET today, Fed funds futures markets are pricing in 29pc odds of a quarter point cut by the Federal Reserve at its next meeting in May and 99pc odds of at least a quarter point rate cut in June. Earlier in the day the June odds were at 100pc. The Fed chairman spoke after trillions of dollars in value were wiped off stock markets around the world and crude prices plummeted following Trump's rollout of across-the-board tariffs earlier in the week. Just before his appearance, Trump pressed Powell in a post on his social media platform to "STOP PLAYING POLITICS!" and cut interest rates without delay. A closely-watched government report showed the US added a greater-than-expected 228,000 jobs in March , showing hiring was picking up last month. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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New tariffs could upend US tallow imports


03/04/25
News
03/04/25

New tariffs could upend US tallow imports

New York, 3 April (Argus) — New US tariffs on nearly all foreign products could deter further imports of beef tallow, a fast-rising biofuel feedstock and food ingredient that had until now largely evaded President Donald Trump's efforts to reshape global trade. Tallow was the most used feedstock for US biomass-based diesel production in January for the first month ever, with consumption by pound rising month to month despite sharp declines in actual biorefining and in use of competing feedstocks. The beef byproduct benefits from US policies, including a new federal tax credit known as "45Z", that offer greater subsidies to fuel derived from waste than fuel derived from first-generation crops. Much of that tallow is sourced domestically, but the US also imported more than 880,000t of tallow last year, up 29pc from just two years earlier. The majority of those imports last year came from Brazil, which until now has faced a small 0.43¢/kg (19.5¢/lb) tariff, and from Australia, which was exempt from any tallow-specific tariffs under a free trade agreement with US. But starting on 5 April, both countries will be subject to at least the new 10pc charge on foreign imports. There are some carveouts from tariffs for certain energy products, but animal fats are not included. Some other major suppliers — like Argentina, Uruguay, and New Zealand — will soon have new tariffs in place too, although tallow from Canada is for now unaffected because it is covered by the US-Mexico-Canada free trade agreement. Brazil tallow shipments to the US totaled around 300,000t in 2024, marking an all-time high, but tallow shipments during the fourth quarter of 2024 fell under the 2023 levels as uncertainty about future tax policy slowed buying interest. Feedstock demand in general in the US has remained muted to start this year because of poor biofuel production margins, and that has extended to global tallow flows. Tallow suppliers in Brazil for instance were already experiencing decreased interest from US producers before tariffs. Brazil tallow prices for export last closed at $1,080/t on 28 March, rising about 4pc year-to-date amid support from the 45Z guidance and aid from Brazil's growing biodiesel industry, which is paying a hefty premium for tallow compared to exports. While the large majority of Brazilian tallow exports end up in the US, Australian suppliers have more flexibility and could send more volume to Singapore instead if tariffs deter US buyers. Export prices out of Australia peaked this year at $1,185/t on 4 March but have since trended lower to last close at $1,050/t on 1 April. In general, market participants say international tallow suppliers would have to drop offers to keep trade flows intact. Other policy shifts affect flows Even as US farm groups clamored for more muscular foreign feedstock limits over much of the last year, tallow had until now largely dodged any significant restrictions. Recent US guidance around 45Z treats all tallow, whether produced in the US or shipped long distances to reach the US, the same. Other foreign feedstocks were treated more harshly, with the same guidance providing no pathway at all for road fuels from foreign used cooking oil and also pinning the carbon intensity of canola oil — largely from Canada — as generally too high to claim any subsidy. But tariffs on major suppliers of tallow to the US, and the threat of additional charges if countries retaliate, could give refiners pause. Demand could rise for domestic animal fats or alternatively for domestic vegetable oils that can also be refined into fuel, especially if retaliatory tariffs cut off global markets for US farm products like soybean oil. There is also risk if Republicans in the Trump administration or Congress reshape rules around 45Z to penalize foreign feedstocks. At the same time, a minimum 10pc charge for tallow outside North America is a more manageable price to pay compared to other feedstocks — including a collection of charges amounting to a possible 69.5pc tax on Chinese used cooking oil. And if the US sets biofuel blend mandates as high as some oil and farm groups are pushing , strong demand could leave producers with little choice but to continue importing at least some feedstock from abroad to continue making fuel. Not all US renewable diesel producers will be equally impacted by tariffs either. Diamond Green Diesel operates Gulf Coast biorefineries in foreign-trade zones, which allow companies to avoid tariffs on foreign inputs for products that are ultimately exported. Biofuel producers in these zones could theoretically refine foreign tallow, claim a 45Z subsidy, and avoid feedstock tariffs as long as they ship the fuel abroad. Jurisdictions like the EU and UK, where sustainable aviation fuel mandates took effect this year, are attractive destinations. And there is still strong demand from the US food sector, with edible tallow prices in Chicago up 18pc so far this year. Trump allies, including his top health official, have pushed tallow as an alternative to seed oils. By Cole Martin and Jamuna Gautam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Funding cuts could delay US river lock renovations


03/04/25
News
03/04/25

Funding cuts could delay US river lock renovations

Houston, 3 April (Argus) — The US Army Corps of Engineers (Corps) will have to choose between various lock reconstruction and waterway projects for its annual construction plan after its funding was cut earlier this year. Last year Congress allowed the Corps to use $800mn from unspent infrastructure funds for other waterways projects. But when Congress passed a continuing resolutions for this year's budget they effectively removed that $800mn from what was a $2.6bn annual budget for lock reconstruction and waterways projects. This means a construction plan that must be sent to Congress by 14 May can only include $1.8bn in spending. No specific projects were allocated funding by Congress, allowing the Corps the final say on what projects it pursues under the new budget. River industry trade group Waterways Council said its top priority is for the Corps to provide a combined $205mn for work at the Montgomery lock in Pennsylvania on the Ohio River and Chickamauga lock in Tennesee on the Tennessee River since they are the nearest to completion and could become more expensive if further delayed. There are seven active navigation construction projects expected to take precedent, including the following: the Chickamauga and Kentucky Locks on the Tennessee River; Locks 2-4 on the Monongahela River; the Three Rivers project on the Arkansas River; the LaGrange Lock and Lock 25 on the Illinois River; and the Montgomery Lock on the Ohio River. There are three other locks in Texas, Pennsylvania and Illinois that are in the active design phase (see map) . By Meghan Yoyotte Corps active construction projects 2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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