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EU publishes renewables, SAF blending mandates laws

  • Market: Battery materials, Biofuels, Biomass, E-fuels, Electricity, Emissions, Hydrogen, Natural gas, Oil products
  • 31/10/23

The EU today published laws establishing blending mandates for sustainable aviation fuels (SAFs), obliging EU states to bring national legislation in line with a revised renewables directive by 21 May 2025. Aviation blending mandates will begin from 2025 with a minimum share of 2pc of SAFs.

The revised renewables directive sets an overarching EU-level target share for renewable energy in final energy consumption of "at least" 42.5pc by 2030. It also stipulates that EU states shall "collectively" endeavour to increase renewables to 45pc by 2030 as well as strive to reach an installation rate of at least 5pc for innovative not fully commercialised renewable energy technology by 2030

EU states must also increase their renewables share to 29pc of road transport energy or reduce the sector's greenhouse gas (GHG) intensity by at least 14.5pc by 2030, compared with a baseline using a fossil fuel comparator of 94g CO2eq/MJ.

The SAF regulation sets out annual SAF mandate shares that rise to 2pc of an operator's aircraft fuels from reporting year 2025. They then rise to 6pc from 1 January 2030, 20pc from 1 January 2035, with a minimum share of 5pc of synthetic aviation fuels. The law defines synthetic aviation fuels as certified renewable fuels of non-biological origin (RFNBO) that includes renewable hydrogen and derivatives such as e-methanol, e-ammonia and e-kerosene.

From 1 January 2040, the regulation sets a minimum share of 34pc of SAF, with a minimum share of 10pc of synthetic aviation fuels, and at least 42pc SAFs from 1 January 2045, with at least 15pc synthetic aviation fuels. From 1 January 2050, the minimum SAF share is 70pc, of which a minimum 35pc should be synthetic aviation fuels.

Yearly reporting obligations, starting by 31 March 2025, require aircraft operators to report details such as flights, flight hours, total amount of aviation fuel uplifted at each EU airport, annual aviation fuel required, per EU airport, total amounts of SAF purchased from aviation fuel suppliers.

For each SAF purchase, the aviation fuel suppliers, the amounts purchased, the conversion process and the characteristics and origin of feedstocks used for production also need to be reported as well as lifecycle emissions of the biojet. While allowing for certified aviation biofuels meeting sustainability and lifecycle emissions criteria, the SAF regulation excludes biofuels produced from food and feed crops, intermediate crops, palm fatty acid distillate (PFAD), palm, soy-derived materials, soap stock and its derivatives.

The European parliament and EU states formally adopted and agreed the renewables directive and SAF regulation earlier in the year.


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Exxon sees 45V surviving, needs blue H2 offtake

Exxon sees 45V surviving, needs blue H2 offtake

Houston, 2 May (Argus) — ExxonMobil chief executive officer Darren Woods expects low-carbon hydrogen production incentives to survive a White House review, but he wants more sales commitments before making a final investment decision on a company project in Baytown, Texas. "Our expectation is that things that we need to drive low-carbon hydrogen will probably stay in place," Woods said during the company's first-quarter earnings call Friday. "But we have to see that manifested." Woods has said that the 45V hydrogen production tax credit is "critical" to establishing a market for the zero-emissions fuel that can stand on its own and compete against fossil fuels. The company is developing what it describes as the largest low-carbon hydrogen plant in the world in Baytown, designed to produce 1bn cf/d of hydrogen from natural gas with carbon capture. While the 45Q incentive is available for projects using carbon capture and sequestration to lower emissions, ExxonMobil has repeatedly indicated it is pursuing the more lucrative 45V for the massive hydrogen and ammonia production project planned on the Texas Gulf coast. In addition to certainty about federal incentives, Woods said the company also needs to secure more offtake agreements in order to make a final investment decision. "I'd say right now that's probably the long pole in the tent with respect to driving this," Woods said. "When those two things come together and we're confident that we have what we need to generate the returns that's going to be required to justify the investments, we'll move forward. Hopefully, that's later this year." Most of the project's production would be used to decarbonize operations at Exxon's 564,500 b/d Baytown refinery, while the remainder is being targeted for exports in the form of ammonia. In January, the company signed an agreement to sell ammonia to European trading firm Trammo. Japanese power producer Jera has said it is considering 500,000 t/yr of ammonia offtake as part of its plans to take an equity stake in the project. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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02/05/25

Mexico bets on new contract model to lift gas output

Mexico City, 2 May (Argus) — Mexico's push to raise domestic gas output to 5 Bcf/d by 2030 depends on a new shared participation model designed to attract private investment, with four strategic gas fields prioritized as tenders begin. State-owned Pemex this week released the detailed guidelines for the mixed production scheme, first introduced in February. The model guarantees Pemex at least a 40pc share of production and gives the company wide discretion to set contract terms and choose the bidding process — including no-bid awards. But interest in the new contracts is expected to center on Mexican firms with close ties to President Claudia Sheinbaum's administration, such as Carlos Slim's Grupo Carso, according to market sources. "With these guidelines, Pemex can finally pick and choose who they want, how they want," said Miriam Grunstein, a former adviser to energy regulator CRE and senior partner at Brilliant Energy Consulting. "The downside is they are likely to turn to Mexican firms that lack the technical experience for complex projects, rather than international companies with the know-how for deep-water or unconventional plays," Grunstein said. "This scheme isn't made for companies like BHP, Total, or Eni," added Eduardo Prud'homme, former technical director at Cenagas and co-partner at consultancy Gadex. "Pemex doesn't want operators as partners. Though it is perfect for Carso." A relative newcomer to the upstream sector, Carso is one of the government's most important contractors for infrastructure projects and stands to gain on future business whether or not the upstream partnerships succeed. Prud'homme doubts international majors looking for a one-off deal would be willing to take on the heavily regulated, high-risk projects when the maximum stake is 60pc. "If you fail, Pemex will not share the loss," said Prud'homme. "If you succeed, Pemex decides how much to share." Pemex management said it plans to launch 17 projects under the new scheme this year. It remains unclear how many of these will focus on gas development. Still, gas is a core focus. Pemex's 2025–2030 business plan allocates Ps238bn (US$12.1bn) to gas projects in pursuit of the 5 Bcf/d goal. Four key fields — Burgos, Quesqui, Ixachi and Bakte — are expected to provide 54pc of total projected output. Carso is already active, partnering with Pemex on the complex deep-water Lakach gas project, which is now expected to migrate from a service contract to the new mixed contract model. Slim began renegotiations in February after the model was announced. Carso has also expanded upstream, buying into the oil-rich Zama project in December. In March, Sheinbaum confirmed the government is in talks with Carso to partner on Ixachi. Turning the tide Still, gas output continues to decline. An analysis by Mexican think tank IMCO found that Pemex and its farmout partners this year posted their lowest first-quarter gas production in 15 years. In the first quarter, Pemex produced 4.408 Bcf/d of gas, down by 8pc from the same period in 2024 and 12pc lower compared with the same quarter 2023. The 367 MMcf/d annual decline marks the steepest first-quarter drop since 2018, when output fell by 536 MMcf/d year over year. On the positive side, Pemex's natural gas production in March ticked 0.3pc higher from the previous month to 4.39 Bcf/d – marking the second consecutive month of increases after February output was up 1.3pc from January. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Chevron 'not surprised' Calif refineries shutting


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Shell says can deliver solid returns below $50/bl


02/05/25
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02/05/25

Shell says can deliver solid returns below $50/bl

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UK warned of looming battery shortfall as demand surges


02/05/25
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02/05/25

UK warned of looming battery shortfall as demand surges

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