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UK increases RTFO target

  • Market: Biofuels
  • 19/07/22

The UK government will amend and increase the main target in its Renewable Transport Fuel Obligation (RTFO) scheme, with the aim to increase carbon savings from land, air and sea transport.

Following a consultation launched in March last year, the UK will increase the RTFO main target by 5 percentage points by 2032, to 14.6pc, which it said will lead to greenhouse gas (GHG) emissions savings of 23.6mn t of CO2 equivalent between 2022 and 2032. The government will increase the target by 1.5 percentage points in 2022 with an additional 3.5 percentage points spread over the 2023-32 period.

The consultation proposed to support uptake of recycled carbon fuels (RCFs), which are produced from fossil wastes that cannot be avoided, reused or recycled and that have the potential to reduce GHG emissions relative to gasoline or diesel. But supporting RCFs in the RTFO requires an amendment to primary legislation, and the government said it will look to make this as soon as possible.

The government also proposed to expand the scope of the RTFO to make the use of renewable fuels of non-biological origin (RFNBO) in maritime, rail and non-road vehicles eligible for support. It will expand support for RFNBOs, but said primary legislation changes may be needed to expand support to loading and construction vehicles.

Regarding proposals to promote improvements in sustainability criteria of fuels supported under the RTFO, the government will establish criteria to address the specific impacts of biofuels made from forest biomass and introduce criteria to manage the soil carbon impacts associated with the use of agricultural residues. It will improve the accuracy of reported GHG emissions and secure and increase the minimum GHG savings delivered by eligible fuels.

The government said it intends to make the legislative changes, so the new policies and increased targets apply from the start of the next RTFO obligation period, which began on 1 January 2022.


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UK parliament approves SAF mandate from 2025

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London, 6 November (Argus) — The UK parliament has approved the proposed sustainable aviation fuel (SAF) mandate that will come into effect on 1 January, 2025. Obligated suppliers will have to deliver a 2pc share of SAF in 2025, increasing to 10pc in 2030, 15pc in 2035 and 22pc in 2040. The obligation will remain at 22pc from 2040 "until there is greater certainty regarding SAF supply". The obligation arises at the point at which a supplier's jet fuel can be supplied only to UK aviation. Hydrotreated esters and fatty acids (HEFA) SAF can be used to meet 100pc of SAF demand in 2025 and 2026, but will be capped at 71pc in 2030 and 35pc in 2040. An obligation for Power-to-Liquid (PtL) SAF will be introduced from 2028 at 0.2pc of total jet fuel demand, rising to 0.5pc in 2030 and 3.5pc in 2040. Buy-out mechanisms will be set at the equivalent of £4.70/l ($6.10/l) and £5.00/l ($6.50/l) for the main and PtL obligations, respectively. "It is projected that, between 2025 and 2040, the SAF mandate could deliver up to 25mn t of SAF, securing a saving of up to 54mn t of carbon dioxide", said transport minister John Hendy. The UK confirmed on 17 July it will introduce the Sustainable Aviation Fuel (Revenue Support Mechanism) bill to support SAF production. The government previously said it aims to introduce the mechanism, which will be industry funded, by the end of 2026 . "Together with the SAF mandate, [the mechanism] will give the investment community confidence to invest in these novel and innovative technologies", Hendy said. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Asia marine biodiesel: B24 prices drop $3.50/t


05/11/24
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05/11/24

Asia marine biodiesel: B24 prices drop $3.50/t

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US railroad-labor contract talks heat up


04/11/24
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04/11/24

US railroad-labor contract talks heat up

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European marine biodiesel: Prices mostly ease


04/11/24
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04/11/24

European marine biodiesel: Prices mostly ease

London, 4 November (Argus) — European marine biodiesel prices mostly eased under pressure from muted demand in ARA. In the ARA trading and refining hub, market participants pointed to lacklustre spot marine biodiesel demand. Values for Advanced Fame 0 blends in ARA — which include a deduction of the value of Dutch HBE-G renewable fuel tickets — were also dampened by firmer HBE-G prices in recent sessions. Higher hydrotreated vegetable oil (HVO) prices combined with tightening supply due to less HBE-Gs issued from shipping have lent support to the ticket prices. Shipowners looking to bunker marine biodiesel to deliver proof of sustainability (PoS) documentation to their customers, to offset the latter's scope 3 emissions, shifted their marine biodiesel demand to Singapore in recent months due to more competitive prices east of Suez. In the west Mediterranean, market participants pointed to an uptick in small-volume tenders for HVO delivery by truck at Spanish ports. Participants added that this demand was mainly attributed to smaller-sized vessels conducting trials ahead of the introduction of FuelEU Maritime regulations at the turn of next year. EU emissions trading system (ETS) prices increased to $70.65/t from $69/t. As a result, ETS-inclusive premiums held by marine biodiesel blends against their fossil counterparts mostly narrowed. B30 Ucome dob ARA values eased by $7.50/t to $812.50/t, and the blend's ETS-inclusive premium against VLSFO dob ARA slipped by $9.63/t to $272.79/t. Calculated B30 Advanced Fame 0 dob ARA prices edged lower by $1.59/t to $710.01/t, and the blend's ETS-incorporated premium against VLSFO lost $3.72/t to $170.30/t. Calculated B100 Advanced Fame 0 dob ARA values shed $8.80/t to $1,078.86/t and its premium against MGO lost $40.17/t to $317.51/t when ETS costs were accounted for. B24 dob Algeciras-Gibraltar prices edged up by $1.50/t to $781.50/t, and its premium against VLSFO with the inclusion of ETS costs widened by $19.50/t to $227.13/t. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Chevron Louisiana RD plant back online after fire


04/11/24
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04/11/24

Chevron Louisiana RD plant back online after fire

New York, 4 November (Argus) — Chevron's renewable diesel (RD) plant in Geismar, Louisiana, has resumed output after a fire halted production six weeks ago. Chevron confirmed today that its 5,000 b/d Geismar renewable fuels plant "has safely resumed operations" after the 19 September fire . The company does not "anticipate any impact" from the fire on a project to expand the facility's output to 22,000 b/d of renewable diesel, renewable propane and renewable naphtha. Chevron did not provide an updated timeline for finishing the project, which was initially set for completion this year. US biofuel producers have confronted challenging economics over the last year, as ample supply of renewable fuels used to comply with government blending requirements has helped depress prices of environmental credits and narrowed margins. Chevron in March said it was indefinitely idling biodiesel plants in Wisconsin and Iowa, citing "market conditions." There is also uncertainty around an Inflation Reduction Act tax credit kicking off in January, which will offer greater federal subsidies to fuels that produce fewer greenhouse gas emissions. But the federal government has yet to clarify how it will calculate the carbon intensities of various fuel production pathways, leaving many biorefineries unsure whether they can economically produce fuel next year. More biodiesel plants, especially those without access to lower-carbon waste feedstocks, could be idled , according to market participants. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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