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Japan's Idemitsu, J-Oil Mills partner to produce SAF

  • Market: Biofuels, Petrochemicals
  • 01/02/23

Japanese refiner Idemitsu and oil producer J-Oil Mills plan to co-operate in the production of sustainable aviation fuel (SAF), plastics recycling and the use of bio-petrochemical products after signing an initial agreement on 31 January.

They target to raise unspecified inedible plants as sources of raw oil, to manufacture and build a supply chain of SAF, as well as expand the use of recycled plastics and bio-petrochemical goods made from bio-naphtha. They will sort out detailed schedules but consider 2030 as their target for now.

Idemitsu plans to invest ¥290bn ($2.2bn) in its "carbon-neutral" businesses, including SAF, during the April 2023-March 2026 fiscal years. The firm set a goal to produce 100mn l/yr of SAF through an alcohol-to-jet production process at its Chiba refinery in east Japan's Chiba prefecture, targeting to begin supplies from 2026-27.

Idemitsu has also accelerated its efforts in chemical recycling and bio-petrochemical production. The refiner plans to incorporate a chemical recycling unit, which can convert 20,000 t/yr of used plastics into raw oils, at its Chiba plant. Commercial operations are targeted to start by 2025-26. Idemitsu will work with Finnish refiner Neste, Taiwanese chemicals firm Chimei and Japanese trading house Mitsubishi to set up a bio-plastic supply chain and to begin production in this year's first half.


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26/03/25

Singapore opens methanol bunkering licence applications

Singapore opens methanol bunkering licence applications

Singapore, 26 March (Argus) — Singapore's Maritime and Port Authority (MPA) today issued a notice seeking applications for methanol bunkering licences. Successful applicants would be able to supply methanol as a marine fuel in the port of Singapore between 1 January 2026 to 31 December 2030. The agreement includes end-to-end bunkering, which means supplying the fuel, barge operations, storage and safe bunkering onto vessels. Licensees would need to have trained manpower for safe handling of the fuel and have at least one IMO Type II barge. The licensees also need to ensure that the methanol they supply "meet the specified carbon intensity on a well-to-wake basis, demonstrate a transparent and accurate chain of custody methodology to track emissions from source to delivery." This implies the methanol supply needs to have reduced carbon emissions, and be produced via carbon capture (CC) technology or from biomass and renewable sources of energy. Methanol participants do not expect this announcement to significantly impact the current regional methanol market in the short term, as they expect initial volumes to be limited. Some methanol traders had hoped that the government would provide financial incentives for the uptake as a marine fuel. "The industry concern is….no financial support from the Singapore government," said a methanol trader. This announcement comes after MPA announced a new methanol bunkering standard earlier this month. Methanol is one of the early alternative marine fuels, with newbuild order books going past 300 as major container liners and other segments booked dual-fuelled methanol vessels, according to Norwegian classification society DNV's Alternative Fuels Insight . Maersk, among other vessel owners, has been leading the use of methanol as a marine fuel in its fleet. But limited supply of green methanol has slowed the process of its adoption in the past year or so, said market participants. By Mahua Mitra 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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US venue case crucial for future clean air fights


24/03/25
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24/03/25

US venue case crucial for future clean air fights

New York, 24 March (Argus) — The US Supreme Court on Tuesday will hear arguments about the proper court venue for Clean Air Act lawsuits, which could be pivotal for future enforcement of federal air pollution rules. The court is considering both a case involving the Environmental Protection Agency's (EPA) rejections of small refiners' requests for hardship exemptions from a biofuel blend mandate and the agency's separate denials of state plans for addressing ozone-forming NOx emissions. Judges are not expected to decide the legality of EPA's decisions, just the proper courts for settling the disputes. But the cases are still significant: legal uncertainty to date has affected both EPA programs implicated by the Supreme Court's review and could upend enforcement of future rules if the court does not provide sufficient clarity. Federal ozone season NOx allowance prices essentially flatlined last year as participants were hesitant to trade due to risks from so many court cases. And small refinery exemptions are crucial for biofuel demand, so biofuel producers are wary of empowering more lower courts to reconsider denied exemption requests. The Clean Air Act says that EPA actions that are "nationally applicable" or otherwise based on "nationwide scope or effect" should proceed before the US Court of Appeals for the District of Columbia Circuit, while "locally or regionally applicable" actions head to regional circuit courts instead. But judges have disagreed about how to apply those criteria, since many EPA rules have far-reaching effects but on their face target individual states or facilities. Regulated industry fears that EPA could say a broad set of regulations have nationwide scope, centralizing review in the DC Circuit, which is seen as friendlier to federal regulators and where a majority of judges are Democratic appointees. Local conditions — such as a small refinery in Indiana serving local farmers that cannot handle higher biodiesel blends — get short-changed when various companies' concerns are assembled together, they argue. But EPA under the prior administration and Democratic-led states argue that sending these cases to the DC Circuit, which is more experienced with the complexities of federal rulemaking, makes more sense than letting industry seek out favorable jurisdictions. And they highlight the possibility of courts leaving emitters in one part of the country with laxer rules. "The fundamental risk is that you'll end up with decisions on the same point of law coming out differently in different places — and not an expedient way to resolve that," said Brian Bunger, a Holland & Knight partner and the former chief counsel at the Bay Area Air Quality Management District. For instance, both the DC Circuit and the conservative-leaning 5th Circuit agreed that EPA erred when it denied some refiners exemptions from biofuel blend mandates — but they said so for slightly distinct reasons. The 5th Circuit, for instance, went further by saying refiners reasonably relied on past EPA practice and thus the agency incorporating new analysis into its review of waiver requests was unfair. As a result, EPA recently used different criteria when weighing a waiver request from one refiner in the 5th Circuit's jurisdiction than it used for another refiner, according to partially redacted decisions obtained by Argus through a Freedom of Information Act request. The agency said it could not consider at all whether CVR Energy's 75,000 b/d refinery in Wynnewood, Oklahoma, is able to pass on the costs of program compliance to consumers because of the 5th Circuit decision but could weigh such information when deciding a similar petition from Calumet's 15,000 b/d refinery in Great Falls, Montana. The agency issued those decisions in the waning days of former-president Joe Biden's term. While President Donald Trump has pledged a vastly different approach to environmental regulation, his administration for now has not signaled a different stance than the Biden administration on whether these types of disputes should proceed before the DC Circuit. Schrodinger's case It is still unclear whether the judges view the cases as a tricky technical dispute or part of a broader trend of federal agencies overstepping their authority. Tuesday's hearing could provide clues. Of the court's nine justices, four previously served on the DC Circuit and could see value in sending more complex regulatory cases to the expert court, Bunger said. But the court's conservative majority could also be wary of giving EPA too much authority to set venue. Refiners argue that the agency repackaged dozens of individual exemption denials into two larger regulatory actions as a strategy to get the cases before a friendlier court. The Supreme Court has looked skeptically at other EPA rulings and last year overturned a decades-old legal principle that gave agencies leeway when interpreting ambiguous laws. Final Supreme Court decisions usually arrive by late June. However the court rules, businesses say that it should provide a clear enough explanation to prevent similar venue disputes from reemerging. The US Chamber of Commerce told the court it takes no position beyond urging the court to "adopt an interpretation that provides clarity and predictability to all stakeholders." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Estonian climate ministry to push for EU ETS 2 repeal


24/03/25
News
24/03/25

Estonian climate ministry to push for EU ETS 2 repeal

London, 24 March (Argus) — Estonia's parliament has granted the country's climate ministry a mandate to push for the repeal or postponement of the EU's second emissions trading system (ETS 2) covering road transport and buildings, scheduled to launch in 2027. The Estonian parliament's EU affairs committee granted the ministry a mandate to begin consultations with the European Commission and EU member states on repealing the EU ETS 2 directive, because of the administrative burden and uncertainty posed by transposing the measure. If Estonia fails to garner sufficient support, it will join existing proposals by the Czech Republic and Poland to postpone the introduction of the new system for two years. This additional time could be used to find a way to limit the burden of imposing the measure, the committee said. These proposals would require a qualified majority of EU member states to pass. If not adopted, Estonia's climate ministry would instead start negotiations to postpone the launch of the system to 2028 or exclude road transport from its scope. The committee approved the mandate — which followed positions submitted by the government and subsequent amendments and opinions by the parliament's environment and economic affairs committees — "after a long and heated political debate", its chairman Peeter Tali said. The commission last year adopted a supply cap of 1.036bn carbon allowances in 2027 for the new system, which will cover upstream emissions from fuel combustion in buildings, road transport and small industry not covered by the existing EU ETS. For the first three years of operation, the system will have a price cap of €45/t of CO2 equivalent, adjusted for inflation, which if surpassed for a period of two months would trigger the release of 20mn allowances from its market stability reserve. 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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India amends, finalises e-PVC anti-dumping duties


24/03/25
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24/03/25

India amends, finalises e-PVC anti-dumping duties

Singapore, 24 March (Argus) — India's Ministry of Finance (MCI) has finalised anti-dumping duties (ADDs) on imports of paste polyvinyl chloride (e-PVC) from China, South Korea, Malaysia, Norway, Taiwan and Thailand. ADDs on the listed e-PVC export origins will be imposed for a period of five years from 13 June 2024, backdated to the imposition date of initial ADDs . These will be levied for e-PVC imports between 12 December 2024 and 20 March 2025, according to MCI in the Gazette of India on 21 March. As per the initial anti-dumping investigation, finalised ADDs will be excluded for PVC resin with a K-value below 60, PVC blending resins, co-polymers of PVC paste resin, battery separator resins and the brand "Biovyn" produced by European PVC producer Inovyn. Most e-PVC producers that were named under the initial anti-dumping investigation face higher finalised ADDs than their original value, except for South Korea's Hanwha Solutions, where ADDs remained at $0/t, and Malaysia's Kaneka Paste, for which ADDs dropped from $317/t to $0/t. In conjunction with this investigation, Indian authorities are also currently conducting an anti-dumping investigation on e-PVC imports from the EU and Japan . Argus last assessed e-PVC homopolymer import prices into India at $920-950/t cfr India on 21 March. By Michael Vitiello E-PVC anti-dumping duties (India) $/t Country of export Country of export Producer Initial duty Final duty China Any Formosa Industries (Ningbo) 546 595 China Any Shenyang Chemical 115 248 China Any Other Chinese producers except above 600 707 Any China Any 600 707 South Korea Any Hanwha Solutions 0 0 South Korea Any Other South Korean producers except above 41 89 Any South Korea Any 41 89 Malaysia Any Kaneka Paste 317 0 Malaysia Any Other Malaysian producers except above 375 516 Any Malaysia Any 375 516 Taiwan Any Formosa Plastics 118 247 Taiwan Any Other Taiwanese producers except above 168 373 Any Taiwan Any 168 373 Thailand Any TPC Paste Resin 195 343 Thailand Any Other Thai producers except above 252 421 Any Thailand Any 252 421 Norway Any Any 328 495 Any Norway Any 328 495 Source: India's Ministry of Finance Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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