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Harris selects Minnesota's Walz as running mate

  • Market: Biofuels, Coal, Crude oil, Emissions, Natural gas, Oil products
  • 06/08/24

Democratic presidential candidate Kamala Harris has picked Minnesota governor Tim Walz (D) as her running mate, elevating a Midwestern voice who has championed ambitious policies on climate change and clean energy during his two terms as governor.

Walz, who was a schoolteacher before serving in the US Congress and then as governor, only recently emerged on the national stage as a favorite of progressives who could take on Republicans. Harris said she chose Walz as her running mate based partly on his "convictions on fighting for middle class families" and his efforts to deliver for "working families like his own."

Harris will appear with Walz today at a rally in Philadelphia, Pennsylvania, in the first event the campaign says will be a "five-day barnstorm" to introduce the Democratic ticket to voters in battleground states. The Harris campaign today touted Walz's service in the military and election in a conservative-leaning district as a sign of his broader political appeal.

In 2021, Walz made Minnesota the first state in the Midwest to adopt California's tailpipe standards, and last year he signed a law requiring Minnesota utilities to switch entirely to wind, solar and other carbon-free electricity sources by 2040. Walz signed a separate law in June that would expedite the state's permitting process for renewable power projects.

The campaign for Republican nominee Donald Trump today said Walz was a "West Coast wannabe" who as governor replicated California's policies on the environment. "From proposing his own carbon-free agenda, to suggesting stricter emission standards for gas-powered cars and embracing policies to allow convicted felons to vote, Walz is obsessed with spreading California's dangerously liberal agenda," Trump campaign press secretary Karoline Leavitt said.

Minnesota does not produce any crude or natural gas and has no coal mines. As of 2022, coal-fired power plants represented 27pc of Minneosta's in-state electricity generation, nuclear generated 24pc of electricity and renewable resources supplied 31pc of electricity. Minnesota is the fifth-largest ethanol producer in the US and has a production capacity of 1,400mn USG/yr.

Environmentalists applauded Walz's selection as a running mate who has sought ambitious policies related to climate change and clean energy, in addition to signing a law last year providing $2bn for environment, climate and energy. The Harris-Walz ticket "isn't afraid to tackle climate change head-on," Sierra Club executive director Ben Jealous said.

Harris' vice presidential selection meant passing over Pennsylvania governor Josh Shapiro (D), who was also being vetted as someone who could help Harris win the battleground state. Democrats hope the selection of Walz will offer a contrast to Republican vice presidential nominee JD Vance, who Walz has criticized as "just weird" for positions such as faulting women for not having children.


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06/08/24

US ethanol exports rise to record in 1H

US ethanol exports rise to record in 1H

Houston, 6 August (Argus) — US ethanol exports climbed to a record high in the first half of the year, driven by strong domestic production and foreign demand. US ethanol exports averaged 125,600 b/d in January-June, up by a third from the same period last year and 2.2pc higher than the previous first-half record set in 2018, according to US Department of Agriculture (USDA) data going back to 2012. Exports would set a full-year record if the pace is maintained through the end of 2024. US ethanol producers like Green Plains and ADM have said they are confident that robust exports will extend through the end of the year. Robust domestic production has fed the rise in US exports, with output averaging 1.03mn b/d through June, the third highest rate through the first six months behind 2018 and 2019, according to EIA data dating to 2010. January-June output would also rank third on an annualized basis. Low prices for corn, the main feedstock for US ethanol, have incentivized higher production by boosting margins. Front month CBOT corn futures this year have averaged 439¢/bushel, down by nearly a third from 2023, as prices near pre-2021 levels when they averaged less than $4/bushel for six consecutive years. Participants are expecting a record or near-record US corn yield this year, pressuring the domestic corn market. Canada and the UK consistently combine for nearly half of US ethanol exports, with Asian markets emerging as key destinations for US ethanol. Asian markets combined for a 19pc share of US exports in the first half, compared with a 10pc share in the same period a year earlier. US exports to Asia-Pacific in the first half more than doubled from the same period last year to around 24,000 b/d as countries in the region raise ethanol fuel blend rates. India is steadily increasing its fuel ethanol blends, with a goal of 20pc by 2025 , helping nearly double first-half receipts of US ethanol to 13,100 b/d. Exports to the UK have also nearly doubled to 16,300 b/d, as the country can take advantage of favorable trade economics into the rest of Europe in addition to meeting demand from its own fuel blending mandates. US ethanol imports remain relatively small, averaging 183 b/d in the first half, up from 19 b/d in the same period last year. Nearly all undenatured ethanol imports for fuel use arrive from Brazil, with the country's sugarcane-based ethanol used as feedstock at LanzaJet's sustainable aviation fuel (SAF) plant in Georgia. US ethanol exports may continue to rise in the coming months and years as the growing SAF market provides new demand pathways for ethanol. By Payne Williams Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Delek idles three biodiesel plants


06/08/24
News
06/08/24

Delek idles three biodiesel plants

Houston, 6 August (Argus) — US independent refiner Delek is temporarily idling three biodiesel plants in Texas, Arkansas and Mississippi as it explores alternative uses for the sites. The refiner's Crossett, Arkansas, Cleburne, Texas, and New Albany, Mississippi, plants produce a combined 2,600 b/d of biodiesel from feedstocks such as cooking oil, fats, greases and vegetable oils such as soybean and canola oil. The company reported a $22mn impairment in its second quarter earnings released today as it temporarily idles the plants and explores "viable and sustainable alternatives". Delek did not disclose when the facilities were idled, but noted the decision was driven by a "decline in the overall biodiesel market". US biodiesel producers are facing worsening production economics , as evidenced by a deteriorating correlation between the soybean oil-heating oil (BOHO) spread and biomass-based diesel D4 renewable information number (RIN) credits. Although a relatively small amount of production, Delek idling its biodiesel plants follows several refiners pivoting away from prior investments in renewable fuels. Chevron said earlier this year it was closing indefinitely two biodiesel plants in Wisconsin and Iowa due to market conditions. US specialty refiner Vertex plans to pause renewable fuels production at its 88,000 b/d Mobile, Alabama, refinery by the end of the year, returning a converted hydrocracker predominantly making renewable diesel to produce what it says are wider-margin fossil fuel products. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Renewable energy carbon credits not eligible for CCP


06/08/24
News
06/08/24

Renewable energy carbon credits not eligible for CCP

London, 6 August (Argus) — The integrity council for the voluntary carbon market (ICVCM), a non-profit governance body, said carbon credits from renewable energy projects will not be eligible for its core carbon principles (CCPs). Renewable energy credits issued under eight current carbon methodologies "fail to meet the CCP Assessment Framework requirements on additionality because they are insufficiently rigorous in assessing whether the projects would have gone ahead without the incentive of carbon credit revenues," the ICVCM said. This move automatically excludes 236mn unretired credits or around a third of the supply within the voluntary carbon market. The ICVCM also rejected a methodology for projects reducing the release of sulphur hexafluoride (SF6), also because of weak additionality components. This refers to the methodology AM0065 under Verra's carbon crediting programme, which currently only covers one project in the US for a total of 2.64mn credits issued, of which just 185,000 are unretired. ICVCM's decision only covers current renewable energy methodologies and does not exclude the possibility of reviewing more rigorous approaches. "Renewable energy projects financed by carbon credits still have a role to play in the decarbonisation of energy grids... more robust methodologies would unlock finance for a new wave of renewable energy projects in places where they are most needed ," ICVCM chair Annette Nazareth said. This refers to renewable energy projects set up in countries with financial and legislative barriers, probably including most of the UN least developed countries (LDCs). The ICVCM has also approved a new methodology — Verra's AM0023 — covering methane leaks, mainly in Bangladesh and Uzbekistan, which accounts for 19mn unretired credits, taking the total of unretired credits eligible for CCPs to 27mn or 3.6pc of the supply in the voluntary carbon market. Assessments of key carbon methodologies such as improved forest management (IFM) or afforestation, reforestation and revegetation (ARR) are now concluded and the council's board is expected to make final decisions "soon", the ICVCM said. Assessments of other popular credits such as reducing emissions from deforestation and forest degradation (REDD+) or clean cookstoves are due within the coming months. By Nicola De Sanctis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Indonesia’s Geo Energy to build new coal infrastructure


06/08/24
News
06/08/24

Indonesia’s Geo Energy to build new coal infrastructure

Singapore, 6 August (Argus) — Indonesian coal producer Geo Energy has signed a $150mn t contract for the construction and development of a 92km coal hauling road and loading jetty in south Sumatra's Jambi province. The infrastructure will have a capacity of 40mn-50mn t yr with a planned completion in late 2025 or early 2026. Of this, 25mn t will be reserved for Geo Energy's Triaryani (TRA) mine, with the remaining capacity to be leased to neighbouring mines, Geo Energy said. The development will carried out by state-owned Chinese enterprises First Harbor Consultants and Norinco International. The new infrastructure will be instrumental in TRA aiming to boost production up to 25mn t, Geo Energy said. Geo Energy produces low-calorific value coal. Its January-March coal sales totalled 1.8mn t, down by 5.3pc from 1.9mn t a year earlier. Its output fell by over 16pc to 1.5mn t over the same period. The output drop was because of seasonal and weather conditions, the company said in May . It acquired stakes in domestic mining firm Golden Eagle Energy and logistics firm Marga Bara Jaya in July 2023. The deal gives it access to proven and probable coal reserves of more than 300mn t in south Sumatra. The company said it is on track to achieve sales of 10mn-11mn t this year because it expects higher year-on-year output in the second half of the year. It has obtained a production quota of 10.5mn t for 2024. This includes 8mn t at its SDJ and TBR mines and another 2.5mn t for TRA. By Andrew Jones Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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India to tweak law to ease doing upstream business


06/08/24
News
06/08/24

India to tweak law to ease doing upstream business

Mumbai, 6 August (Argus) — India has introduced legislation in the upper house of parliament to amend an existing law to enhance the ease of doing business in the exploration and production sector. The oil and gas ministry has proposed a "petroleum lease" for exploration and production of mineral oils. It has also expanded the definition of mineral oils to include crude, natural gas, petroleum, condensate, coal-bed methane, oil shale, shale gas, shale oil, tight gas, tight oil and gas hydrate. The legislation proposes to separate mining operations from petroleum operations, which were originally regulated together. It also proposes to grant the petroleum lease on stable terms where its terms will not be altered to the disadvantage of the lessee during the period of the lease, while allows sharing of production facilities and infrastructure. The proposed amendments also include effective dispute resolution, decriminalising some provisions by replacing imprisonment with financial penalties and allowing appeals against the orders of the ruling authority. It also aims to ease energy transition by enabling development of comprehensive energy projects for harnessing wind and solar energy, along with mineral oils at oil fields. It has provisions to use oil fields for production of hydrogen, carbon capture utilisation and storage or coal gasification. The bill has to be passed by both houses of parliament to become law. India has been trying to attract domestic and international investors in the exploration sector by working to promote the ease of doing business in the sector. It also wants to increase domestic output of oil and gas to meet the country's increasing energy demand and reduce dependence on imports. India's crude production during April-June fell by 2pc from a year earlier to 538,000 b/d, oil ministry data show. Its dependence on crude imports for this period eased to 88.3pc from 88.8pc a year earlier. India will offer 25 oil and gas blocks in the tenth upstream bidding round in August or September. It has extended the deadline for the ninth round three times, with the latest to 31 August. Foreign participants have raised key issues with the oil ministry, including those related to indemnity and compensation that are likely to be addressed in the new legislation. Hydrocarbon exploration has been lacking because of the slow implementation of policies. India's upstream licensing has largely been dominated by domestic participants. Indian state-controlled upstream firm ONGC in January won seven of the 10 areas in exploration blocks offered in the eighth upstream bidding round. A private-sector consortium of Reliance Industries and BP, state-controlled upstream firm Oil India and private-sector Sun Petrochemicals received one block each. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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