Fire hits Vance Bioenergy's Pasir Gudang facility

Market: Agriculture, Biofuels
06/05/24

A fire broke out at Malaysian biodiesel producer Vance Bioenergy's Pasir Gudang facility in southern Johor today, but did not affect biodiesel production, said sources close to the company.

Some auxiliary products were affected, a source said but declined to name them because of commercial sensitivity. The cause of the fire is still under investigation.

Vance Bioenergy produces biodiesel for the Malaysian and European markets, but there has been limited market reaction to the news so far. The company has a total biodiesel production capacity of 450,000 t/yr, with 300,000 t/yr at Tanjung Langsat and 150,000 t/yr at Pasir Gudang.

By Sarah Giam

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

02/10/24

California eyes more oilseed limits as LCFS vote nears

Houston, 2 October (Argus) — California regulators proposed late Tuesday expanding limits on the Low Carbon Fuel Standard (LCFS) credits certain oilseeds may generate while keeping the program's tougher targets and adoption schedule unchanged. The latest proposed California Air Resources Board (CARB) revisions add sunflower oil — a feedstock with no current approved users or previous indicated use in the program — to restrictions first proposed in August on canola and soybean oil feedstocks for biomass-based diesel. The new language maintained a proposal to make the program's annual targets 9pc tougher in 2025 and to achieve by 2030 a 30pc reduction from 2010 transportation fuel carbon intensity levels. CARB staff's latest proposals, published a little before midnight ET on 1 October, offer comparatively minor adjustments to the shock August revisions that spurred a nearly $20 after-hours rally in LCFS prompt prices. Prompt credits early in Wednesday's session traded higher by $3 than they closed the previous trading day. LCFS programs require yearly reductions in transportation fuel carbon intensity. Higher-carbon fuels that exceed these annual limits incur deficits that suppliers must offset with credits generated from the distribution to the market of approved, lower-carbon alternatives. California's program has helped spur a rush of new US renewable diesel production capacity, swamping west coast fuel markets and inundating the state's LCFS program with compliance credits. CARB reported more than 26mn metric tonnes of credits on hand by April this year — more than double the number of new program deficits generated in all of 2023. Staff have sought through this year's rulemaking to restore incentives to more deeply decarbonize state transportation than thought possible during revisions last made in 2019. California formally began this rulemaking process in early January after publishing draft proposals in late December. Regulators initially proposed adjusting 2025 targets lower by 5pc for 2025 — a one-time decrease called a stepdown — to work toward a 30pc reduction target for 2030. CARB set its sights on 21 March for adoption. But staff pulled that proposal in February as hundreds of comments in response poured in. Updated language released on 12 August proposed a steeper stepdown for 2025 of 9pc while keeping the 30pc target for 2030. The proposal also added a limit on credit generation from certain crop-based feedstocks, to 20pc of the associated volume delivered to California in certain cases. Respondents generally supported the tougher targets, though fuel suppliers warned of higher prices and some credit generators argued that the state should be even more ambitious. No one praised the proposed limits on credit generation. Environmental advocates said the proposal fell short of the protections they sought against crop conversion and other risks; agribusiness warned that the concept distorted the LCFS and could spark lawsuits. By Elliott Blackburn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more

News

Clean fuel credit not on Treasury priority list

01/10/24

News

01/10/24

Clean fuel credit not on Treasury priority list

New York, 1 October (Argus) — The US Department of Treasury says it will prioritize issuing final guidance around qualifying for a handful of Inflation Reduction Act clean energy tax credits before the end of President Joe Biden's administration, though guidance around a new credit for low-carbon fuels will likely take longer. The agency's new timeline suggests that granular rules around how to qualify for the 2022 climate law's clean fuels incentive will ultimately be decided by the winner of this year's presidential election. Kicking off in January and lasting through 2027, the 45Z tax credit will replace a suite of expiring fuel-specific credits and offer up to $1/USG for low-carbon road fuels and up to $1.75/USG for low-carbon aviation fuels. Treasury is still "actively" working on guidance around the 45Z incentive, Treasury acting assistant secretary for tax policy Aviva Aron-Dine told reporters today. But unlike for other credits, officials have not provided any timeline for proposing or finalizing that guidance or any signal of whether they could issue any safe harbor assurances before final guidance is available. The Biden administration has not yet clarified how it will calculate greenhouse gas emissions or account for the benefits of "climate-smart" agricultural practices for fuels derived from crop feedstocks, potentially deterring investments until final guidance is available. The 45Z credit requires fuel to meet an initial carbon intensity threshold and then increases the subsidy as a fuel's greenhouse gas emissions fall. Policy clarity is essential, biofuel groups say, since fuel and feedstock offtake contracts are hashed out months in advance and the credit is relatively short-lived compared to other Inflation Reduction Act incentives. Some farm state lawmakers have also pushed for final guidance to bar refiners using foreign feedstocks — such as used cooking oil from China — from being able to claim the credit. The Biden administration still expects to finalize guidance for the 45V clean hydrogen tax credit by year-end out of recognition that the industry "needs certainty" to invest, Aron-Dine said. The final guidance will provide "appropriate adjustments and additional flexibilities" to help projects move forward, she said, while adhering to requirements to consider indirect greenhouse gas emissions caused by the production of clean hydrogen. Treasury also expects to issue final guidance by the end of the administration on the 45Y clean electricity production credit and clean electricity investment credit, a technology-neutral tax credit it proposed earlier this year. The final guidance will continue the "explosive growth" of wind and solar and also provide tax credits to emerging technologies that produce no net greenhouse gas emissions, Aron-Dine said. Other tax credits set to be finalized by the end of the administration include the section 48 investment tax credit and the 45X advanced manufacturing production credit that is supporting the buildout of domestic supply chains, Aron-Dine said. By Cole Martin and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Brazil's Parana 2024-25 soy works ahead on year

01/10/24

News

01/10/24

Brazil's Parana 2024-25 soy works ahead on year

Sao Paulo, 1 October (Argus) — Planting for the 2024-25 soybean crop in Brazil's southern Parana state advanced quickly this past week and surpassed last season's progress at the same time in 2023. Activities advanced by 12 percentage points to 22pc of the expected sowed area in the week ended 30 September, as recent rainfalls in the state favored soybean field works, according to the state's department of rural economics Deral. The pace now is 2 percentage points ahead of the 2023-24 cycle a year ago. Crop conditions remained stable between 23-30 September, with 100pc of areas considered in good conditions. Summer corn Sowing for the 2024-25 first corn crop reached 74pc of expected area as of 30 September. That is an increase of 14 percentage points from the prior week. Works remain behind the 2023-24 crop, which was 82pc sowed at the same time last year. Summer corn crop conditions were also unaltered this week. Areas rated in good quality account for 96pc, while the 4pc remaining is evaluated in medium conditions. Wheat The 2024 wheat crop harvest advanced by 14 percentage points to 62pc of Parana's planted area in the week ended 30 September. That is still behind the 2023 season's pace at the same time last year by 7 percentage points. Wheat crop conditions improved further this week for the third consecutive week. Areas considered in good conditions rose by 6 percentage points to 40pc, following the decreases of 2 and 4 percentage points in those evaluated in medium and bad conditions, to 39pc and 21pc, respectively. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Ukraine's agri-exports fall on the month

01/10/24

News

01/10/24

Ukraine's agri-exports fall on the month

Kyiv, 1 October (Argus) — Agricultural exports from Ukraine continued to fall in September, as rising shipments of wheat and sunflower oil (SFO) failed to offset lower exports of corn, barley and rapeseed. At the same time, exports of grains, oilseeds and by-products were still higher than a year ago, customs data show. Ukraine exported about 4.62mn t of grains, oilseeds and by-products in September, down from 4.73mn t in August but up from 3.64mn t in September 2023. Shipments from the deep-sea ports of Pivdennyi-Odesa-Chornomorsk totalled 3.56mn t in the reporting month, or about 77pc of Ukraine's total agricultural exports, down from 3.65mn t in August. Agricultural exports from river Danube ports continued to decline, falling to 432,839t in September, below the 464,932t exported in August and well below the 2.28mn t in September 2023. Grains Ukraine shipped 3.07mn t of grains in September, down from 3.36mn t in August but up from 2.02mn t in September 2023 ( see chart ). Corn exports fell to 525,883t last month, from 645,853t in August and 627,608t a year ago. Italy was the largest buyer of Ukrainian corn in September, followed by the Netherlands, Greece and Libya, according to statistics based on export declarations. Barley exports fell to 228,358t last month, from 469,495t in August, but were above the 120,198t a year earlier. China and Saudi Arabia were the main recipients of Ukrainian barley, together buying about 65pc of the barley declared for export in September. In contrast, wheat exports rose to 2.31mn t in September, from 2.24mn t in August, and were higher than the 1.27mn t exported a year earlier. Spain remained the largest buyer of Ukrainian wheat in September. Indonesia, Thailand, Vietnam and Italy ranked in the top five. Oilseeds Ukraine exported 1.55mn t of oilseeds, vegetable oils and meals in September, up from 1.4mn t in August but down from 1.61mn t a year earlier. Soybean exports rose to 246,112t in September, from 145,593t in August, because of the arrival of the new crop, and were higher than the 210,399t in September last year ( see chart ). Ukraine's rapeseed exports totalled 705,371t last month, down from 794,206t in August but above the 649,820t shipped a year earlier. Belgium was the largest buyer of Ukrainian rapeseed, followed by Germany and the UK. Exports of sunflower seed (SFS) fell to just 563t in September, almost half the level of the previous month and well below 6,488t a year earlier. SFO exports rose to 348,717t, from 199,101t in August but were slightly below the 359,964t in September 2023. India was the main destination for Ukrainian SFO in September, followed by the Netherlands, Bulgaria and Spain. Exports of sunflower meal (SFM) fell slightly to 233,978t in September, from 237,696t in the previous month and 376,586t a year earlier. China was the largest buyer of Ukrainian SFM, taking around one-third of the product declared for export in September. By Alexey Yeromin Ukraine grain exports mn t Ukraine oilseed, vegoil and meal exports t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

US corn stocks lowered on increased demand

30/09/24

News

30/09/24

US corn stocks lowered on increased demand

New York, 30 September (Argus) — US corn ending stocks estimates were decreased 2.9pc compared with the US Department of Agriculture's (USDA) prior estimate, following an increase in US corn demand. The USDA decreased 1 September 2024 corn ending stocks to 1.76bn bu, down 52mn bu from the prior report. Market expectations were for a 32mn bu gain, which would have put stock levels at 1.844bn bu. US corn production for the 2023-24 marketing year was revised slightly lower, down 2mn bu, to 15.34bn. This combined with a more substantial 50mn bu increase in demand for ethanol production and corn exports, ultimately resulted in the ending stock reduction. The September Grain Stocks report is significant because its data aligns with the end of the September to August corn and soybeans marketing year. The ending stocks number reported will most likely be used in the USDA's 11 October World Agricultural Supply and Demand Estimates (Wasde) report. Despite the reduction, the US corn stock-to-use ratio is likely to remain above 13pc in for the 2024-25 MY in the October update. Soybeans Soybean ending stocks were estimated at 342mn bu as of 1 September in the Grain Stocks report, compared with the USDA's prior estimate of 340mn bu and market expectations of 351mn bu. Market participants attributed strong crushing demand as the main reason between expectations and the reported USDA ending stocks. Soybean production for the 2023-24 marketing year was revised down to 4.162bn bu compared with the USDA's prior estimate of 4.165bn bu. Production was revised lower due to harvested acres projected at 82.2mn acres compared with 82.4mn acres for the prior USDA estimate. Wheat Forecast US wheat production for the 2024-25 marketing year was lowered to 1.971bn bu compared with the prior estimate of 1.982bn bu and market expectations of 1.966bn bu. The decrease in production was because of a decrease in projected yields, though harvested acres were forecast to increase. Yields for the 2024-25 year were forecast at 51.2bu/acre with 38.5mn acres projected at harvest. The USDA's prior estimates were 52.2bu/acre on 37.9mn harvested acres. By Eduardo Gonzalez Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more