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Japanese car makers to develop new engines for HEVs

  • Market: Battery materials, Biofuels, Metals
  • 28/05/24

Japanese auto producers Toyota, Mazda, and Subaru plan to develop new internal combustion engines (ICE) that can combine with electrical motors, to produce next-generation hybrid electric vehicles (HEVs).

These future HEVs must have more efficient electric motor-driven engines, said Toyota's chief executive officer Koji Sato on 28 May. Conventional HEVs are primarily powered by ICEs and electric motors have been regarded as a secondary source, Sato reiterated, "But electric motors should also be seen as a primary power source and potential cruising distance powered by electrical motor should be extended."

New engines will be able to utilise a variety of carbon-neutral fuels such as synthetic fuels and biofuel, Sato added. Toyota and other Japanese firms agreed to jointly carry out a feasibility study by discussing scenarios, roadmaps and necessary regulations to introduce the clean fuels around 2030.

But the joint announcement did not disclose the extent of the firms' collaboration in developing the new engine. The three car makers stressed the importance of "co-creation" without further details, but each manufacturer separately introduced their own concept of the new ICE.

This collaboration would be less compelling if the announcement was made by only one company, said Mazda's chief executive officer Masahiro Moro. This comment deepened market speculation that the

firms might be seeking further alliance opportunities, which would involve larger co-operations. This is especially since fellow Japanese car producers Nissan and Honda recently agreed in March to start discussing a possible collaboration on the electrification of automobiles.

It was also unclear if the announcement would mean that the firms will prioritise developing HEVs over the battery EVs (BEVs), with market growth of the latter having slowed over the past several months.

But Sato emphasised that Toyota is committed to BEVs and ICEs, in line with its multi-pathway principle. This means the company will continue producing multiple types of EVs, including plug-in hybrid vehicles and HEVs along with BEVs to give customers a variety of choices.


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21/02/25

Republicans target US energy rules for disapproval

Republicans target US energy rules for disapproval

Washington, 21 February (Argus) — Republican leaders in the US House of Representatives hope to disapprove at least seven energy-related measures issued under former president Joe Biden using a filibuster-proof process created under the Congressional Review Act. House majority leader Steve Scalise (R-Louisiana) on Thursday released a list of 10 rules that his party has prioritized as "potential targets" for disapproval votes, which require only a simple majority to pass in each chamber. Republicans previously used the law in 2017 to successfully unwind more than a dozen rules, and they hope to do so again to repeal Biden-era rules they say will unnecessarily raise costs on businesses and consumers. A US Environmental Protection Agency (EPA) regulation that implements a $900/t charge on oil and gas sector methane leaks is among the rules that Republicans want to disapprove. If those implementing rules are scrapped, it would provide a temporary reprieve from a 31 August deadline for operators having to pay billions of dollars in potential fees on methane emitted in 2024. Republicans hope to vote later this year to permanently end the methane charge, which was created by the Inflation Reduction Act. House Republicans also hope to disapprove an offshore oil and gas safety rule for drilling in deepwater "high pressure, high temperature" environments that Scalise's office says will increase "burdens on energy operations". Other rules that Republicans will target for disapproval are energy conservation for gas water heaters, energy efficiency labeling standards and air pollution restrictions on rubber tire manufactures. Two of the energy measures House Republicans say they plan to target might not qualify for disapproval under the Congressional Review Act, which can only be used on a "rule". The first is a waiver that would allow California to boost in-state sales of electric vehicles and plug-in hybrids, and that President Donald Trump's administration has tried to make eligible for repeal. The second is the US Commodity Futures Trading Commission's decision to release voluntary guidance for exchanges that allow trading of carbon offset futures. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Global HRC quota could be workable: Eurofer


21/02/25
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21/02/25

Global HRC quota could be workable: Eurofer

London, 21 February (Argus) — A global hot-rolled coil (HRC) quota managed on a monthly basis could be a viable measure adopted by the EU steel safeguard review, according to steel association Eurofer. The idea of a global quota was proposed to the European Commission by Hyundai Steel and the Korean Iron and Steel Association, according to documents obtained by Argus . In a 13 January submission to the commission Hyundai Steel said a global quota allocated monthly would "help ensure smoother trade flows and better supply chain management, preventing distortions that could arise from uneven utilisation of the quota". The fact some countries quickly exhaust their 15pc of the other countries quota risks a "sudden influx" that can flood the EU market, Hyundai said. South Korean mills have their own quota, which typically only fills or goes critical towards the end of the quota period; it went critical earlier in this quarter, however, going critical in the second half of February. The Korean Iron and Steel institute echoed the views of its member Hyundai, suggesting there should be monthly restrictions or increasing tariffs on volumes above the quota level. In a submission to the commission earlier this month, Eurofer said this solution could be workable and prevent "gaming" of the system if accompanied by a first in-first out duty regime — meaning no pro-rata of duties on the first days of a quota — and if its earlier adjustments were adopted. In a 10 January submission Eurofer requested that the flat steel quota should be cut by 50pc to better align quotas with current demand, and that if this was not possible other measures could be taken to reduce import penetration. These measures included the introduction of individual quotas for China and a melt-and-pour rule that means any steel produced using Chinese substrate could come under this quota; this would have most impact on cold-rolled and hot-dip galvanised coil imports produced using Chinese HRC. Eurofer also asked for an increase in the 25pc duty where quotas have been filled; the introduction of first-in first-out, meaning all material pays the fully duty where quotas have been filled; the expansion of 15pc caps to other residual quotas, and the reduction of the HRC residual quota cap to 7.5pc. It also said there should be no carryover of leftover quota between quarters, that more country-specific quotas should be introduced, with a corresponding reduction in residual quotas, and that liberalisation of the quota should be removed. While Eurofer and some importers seem to see eye-to-eye on the idea of a global quota, it is likely that they hold varying views on how much tonnage should be included duty-free. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Atoba to offtake SAF from Haffner Energy in France


21/02/25
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21/02/25

Atoba to offtake SAF from Haffner Energy in France

London, 21 February (Argus) — French renewable fuel producer Haffner Energy announced a new sustainable aviation fuel (SAF) long-term offtake agreement with SAF aggregator Atoba Energy. The two companies will also collaborate on SAF production, although Haffner is yet to disclose further details of the partnership. Atoba will offtake "a good proportion" of SAF from Haffner's 60,000 t/yr production facility at Paris-Vatry airport, Haffner global chief marketing officer Marcella Franchi told Argus . "[The partnership with Atoba] will facilitate the financing of our SAF projects, starting with Paris-Vatry", chief executive Philippe Haffner said. The Paris-Vatry project is a collaboration between the French firm and production pathway developer LanzaJet. The plant, which is due to begin operations in 2028, will use an alcohol-to-jet production pathway. To meet EU SAF regulations, the feedstock will be advanced, drawn from Annex 9 list A of the EU Renewable Energy Directive (RED II). The ATJ pathway will convert syngas, produced from the feedstock's initial treatment, into ethanol, which will then be turned into SAF using LanzaJet's processes. Last year, Haffner revealed it is creating a SAF spin-off entity called SAF Zero. Haffner will license its SAF production technology to the entity and "aims to remain a shareholder" in SAF Zero. The latter will license Haffner's technology for an upfront fee and royalty agreement. In addition, Haffner has undisclosed SAF projects for biogenic SAF and e-SAF in the US, Europe, Africa and Asia-Pacific. EU-wide SAF mandates kicked in at 2pc this year, rising to 6pc by 2030. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Chinese biomethanol producers target marine fuel market


21/02/25
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21/02/25

Chinese biomethanol producers target marine fuel market

Singapore, 21 February (Argus) — Chinese green energy firms have been developing biomethanol plants to supply the maritime sector, and view green methanol as an attractive option to decarbonise shipping, said speakers at the Argus Green Marine Fuels Asia conference in Singapore on 18-19 February. Used cooking oil (UCO) methyl ester (Ucome)-based marine biodiesel and green methanol are expected to be the main alternative marine fuels in the next decade, according to founder of biofuel brokerage Motion Eco, Shutong Liu. But biomethanol is likely to grow in importance because of the limited supply of feedstock UCO, which will need to be shared across bio-bunkering, on-road and aviation fuel demand. Chinese green methanol suppliers have announced more than 100 projects to produce over 30mn t/yr of green methanol, according to Liu. The planned projects comprise 12mn t/yr of biomethanol and 18mn t/yr of e-methanol capacity. Energy, chemical engineering and food equipment firm CIMC Enric, for example, is constructing a biomethanol plant to produce 50,000 t/yr by the fourth quarter of 2025 in Zhanjiang in Guangdong with a planned capacity increase to 200,000 t/yr by 2027, said the company's director David Wang. The factory has 20,000t of storage capacity for biomethanol, Wang added. Chinese wind turbine supplier and biomethanol producer GoldWind will start up two 250,000 t/yr biomethanol plants , with one unit starting up by the end of 2025 and the other in late 2026, said the company's vice-president Chen Shi. Biomethanol is produced by converting biomass into syngas through gasification, often with the addition of green hydrogen, before reacting with a catalyst to produce methanol. E-methanol is produced by combining captured CO2 with green hydrogen, but is considered far less commercially viable than biomethanol because of higher production costs and less established technology. Both alternatives can be blended with fossil methanol for marine fuel usage because of their identical molecular properties to the conventional fuel. Money matters Panellists said a slowing Chinese economy and high investment costs remain a barrier for suppliers to ramp up biomethanol production. Securing long-term offtake agreements with reputable end-users is often needed to progress green fuel production projects at scale, said Swire's shipping and bulk chief sustainability officer, Susana Germino. Chinese biomethanol producers have also sought long-term offtake agreements with shipowners to move to final investment decisions (FID) on their projects, Chen said. GoldWind signed a long-term offtake agreement for biomethanol with Danish container shipper Maersk in 2023, and reached an FID on its biomethanol unit in Inner Mongolia the following year. But pricing these contracts remains a challenge. Green methanol must benchmark against its main rival marine biodiesel to attract buyers, Liu said, despite its higher production costs. Even then, marine biofuels are often more attractive as they are operationally easier to bunker, he added. By Malcolm Goh and Lauren Moffitt Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Oil, biofuel lobbies unite for ‘robust’ RFS: Update


20/02/25
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20/02/25

Oil, biofuel lobbies unite for ‘robust’ RFS: Update

Updates with comments from trade groups, details throughout. New York, 20 February (Argus) — Oil and biofuel groups, at loggerheads years ago over the federal Renewable Fuel Standard (RFS), have united around a call for US regulators to set "robust" biofuel blend mandates for future years. A diverse coalition of 11 trade associations — including the American Petroleum Institute, Clean Fuels Alliance America, farm groups, and fuel marketers — said in a Wednesday letter to the Environmental Protection Agency (EPA) that the RFS is a way to "advance liquid fuels" and "ensure consumers have a choice of how they fuel their vehicles". They want EPA, which is behind schedule on setting volume mandates for 2026, to set multiyear standards that better reflect recent growth in feedstock availability and production capacity than past RFS regulations. "We're trying to send a signal to the administration: hey, we're in more agreement than we used to be," American Petroleum Institute vice president of downstream policy Will Hupman told Argus . "We want to work constructively with you on this. We understand we're going to need all energy sources and supplies." The letter reflects the increasingly aligning interests of groups that formerly split over biofuels. Many oil companies that opposed the RFS in its early years have since invested heavily in fuels like renewable diesel, making strong government biofuel mandates crucial for their businesses, too. And producers of petroleum and biofuel products alike fear that rising electric vehicle adoption, aided by policies during the administration of President Joe Biden, could curb liquid fuel demand. It is unclear how durable any coalition of oil, biofuel, and farm groups will prove, especially for more divisive issues like RFS exemptions for small refineries. The oil industry is not united either, since small merchant refiners with less ability to blend biofuels have generally been more hostile to the RFS than larger integrated companies. The American Fuel and Petrochemical Manufacturers, which did not sign the letter, said that it looks forward "to engaging with EPA and other stakeholders to set realistic and achievable RFS standards anchored in the law". Still, the letter reflects some attempt among the signatories to downplay disagreements that surfaced around past RFS rules, signaling to President Donald Trump's administration that it need not delay program updates. The groups say they support, for instance, "strong, steady volumes" of not just biomass-based diesel and advanced biofuels but conventional biofuels too. While refiners can meet conventional obligations by blending excess amounts of lower-carbon fuels from other program categories, oil interests have previously criticized EPA for setting conventional requirements above expected corn ethanol consumption. The prior US administration set a plan for proposing new RFS volumes next month and finalizing them by the end of 2025 , though it is unclear whether Trump officials plan to meet that timeline. Two biofuel groups have sued EPA over its delays setting new mandates, a process which in the past has resulted in the government and industry coming to a negotiated agreement around a new timeline. Under the RFS program, EPA sets annual mandates for blending different types of biofuels into the conventional fuel supply. Refiners comply by blending biofuels themselves or buying credits from those who do. 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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