EPA probes US biofuel producers' UCO supplies
The US Environmental Protection Agency is auditing used cooking oil (UCO) supply chains of domestic renewable fuel producers to verify whether the feedstock qualifies under the Renewable Fuel Standard (RFS).
Under the RFS, EPA requires renewable fuel producers to submit UCO collection points that are used for biofuels production. Among other inspections, EPA is evaluating those UCO collection locations, the agency said on Wednesday.
After the EPA announcement, current-year biomass-based diesel D4 RINs traded as high as 60.5¢/RIN, which was 5.75¢/RIN higher than Tuesday's closing. Activity on renewable feedstocks was minimal on Wednesday, making it harder to gauge market reaction.
"These inspections and any follow-up investigations are part of EPA's routine evaluation of compliance with RFS under the Clean Air Act and reflect the agency's commitment to a stable RFS program that strengthens the nation's energy independence, advances low-carbon fuels, and supports agricultural communities," EPA spokesperson Tim Carroll said. The agency could not discuss the number of inspections, facility identities, and dates of the inspections, he said.
A coalition of US farm groups recently called on the Biden administration to restrict biofuels produced with foreign feedstocks from qualifying for a new tax credit as US imports of UCO continue to increase. The group argued that the imports are displacing US feedstocks.
US lawmakers also asked the administration to provide more visibility on the UCO supply chain and requested clarity from EPA on how they are ensuring that UCO imports are not blended with palm oil.
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Agunsa offers biodiesel bunkers in Argentina
Agunsa offers biodiesel bunkers in Argentina
New York, 15 August (Argus) — Chile-based marine fuel supplier Agunsa, which also sells marine fuels in Argentina, is now offering biodiesel for bunkering in Argentina. Agunsa's subsidiary Total Bunkering — not affiliated with France's TotalEnergies — entered into a partnership with an unnamed local Argentinian supplier to procure used cooking oil methyl ester (Ucome), which it can blend with either very low-sulphur fuel oil (VLSFO) or with marine gasoil. The fuel is International Certification in Sustainability and Carbon (ISCC)-certified. It can be supplied via truck to the ports of San Nicolas, Campana, San Pedtro, Rosario and the Ternium-Siderar terminal. Globally, one of the most popular biodiesel blends is B30, a blend of 30pc Ucome and 70pc VLSFO. An Argentinean B30 biodiesel bunker blend could command a premium of about 80pc to the price of VLSFO, Agunsa told Argus . Buenos Aires, Argentina, VLSFO was assessed at an average of $599/t on 1-14 August, which would place B30 at around $1,078/t. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK to exclude SAF from China biodiesel investigation
UK to exclude SAF from China biodiesel investigation
London, 15 August (Argus) — The UK has proposed revising the scope of its an anti-dumping investigation into China-origin biodiesel and hydrotreated vegetable oil (HVO) to explicitly exclude sustainable aviation fuel (SAF). The investigation, which was launched on 5 June, was never intended to include SAF, but the UK's Trade Remedies Authority (TRA) subsequently asked interested parties for feedback on whether it should be included after it was brought to its attention that SAF could be considered to fit the description in the initial notice. That notice stated that the inquiry would cover "fatty-acid mono-alkylesters or paraffinic gasoils obtained from synthesis or hydrotreatment of non-fossil origin, in pure form or as included in a blend" in the period from 1 April 2023 to 31 March 2024. The TRA has now proposed amending the description to explicitly exclude "sustainable aviation fuel, in pure form or as included in a blend". But there will be no change to the commodity codes as a result of the revision. The written scope of the investigation is the primary focus at this stage, with the commodity codes serving merely as reference points and not binding criteria, according to the TRA. SAF should be excluded from the investigation because it has distinct production processes and raw materials compared to HVO and fatty acid methyl esters (Fame), limited interchangeability with road transport fuels, a higher selling price and a different regulatory framework under the UK's SAF mandate starting in January 2025 , the TRA said. SAF also benefits from a tax rebate for aviation use, making it economically unviable for road transport use, and has a different customer base, it said. Interested parties have until 21 August to submit any comments, after which the TRA will make a final decision on the scope of the investigation. The investigation follows an application by the Renewable Transport Fuel Association (RTFA) on behalf of UK biofuels producers Argent Energy and Olleco, which alleged that exports from China to the UK were below market value, adversely affecting the UK biofuels industry. The RTFA advocated for including SAF, HVO and Fame in the investigation, citing their potential interchangeability and the minimal amount of investment needed to increase production of HVO and SAF in the UK. But Chinese biofuels producer Ecoceres argued that SAF should be excluded, arguing that it is not interchangeable with Fame and there is limited supply-side substitutability. Ecoceres also pointed out that the UK did not have a domestic SAF industry during the period under investigation, which means that imports from China could not have caused injury. The airline group IAG also supported excluding SAF, emphasising the aviation industry's reliance on imports due to limited global production capacity. The UK government officially confirmed last month that subject to parliamentary approval it will introduce a SAF mandate starting next year. Obligated suppliers will have to deliver a 2pc share of SAF in 2025, increasing to 10pc in 2030, 15pc in 2035 and 22pc in 2040. The obligation will remain at 22pc from 2040 "until there is greater certainty regarding SAF supply", the government said. Under the mandate, hydrotreated esters and fatty acids (HEFA) SAF can be used to meet 100pc of SAF demand in 2025 and 2026, but it will be capped at 71pc in 2030 and 35pc in 2040. HEFA is the most common type of SAF today, and is expected to account for over 70pc of global production by the end of the decade, according to Argus data. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Latin America urged to unite on carbon market efforts
Latin America urged to unite on carbon market efforts
Mexico City, 15 August (Argus) — Latin American countries must unite efforts in carbon market development and leverage shared experiences, delegates heard at an industry event. Carbon markets in Latin America have not reached full stages of development and trail behind those in Europe and California, but they are making progress, addressing unique challenges and opportunities in building their carbon market frameworks. Latin American countries need a unified voice in global carbon market talks, Alejandra Camara, director of Argentinian climate change consulting firm Genesis, said during the Mexico Carbon Forum in Leon, Guanajuato. "We must make ourselves heard, our problems are not the same as those in developed nations," she added. Renewable energy projects in some countries, such as Argentina, are still heavily dependent on external support or carbon credits to be viable, Camara said. She criticized the UN's Clean Development Mechanism (CDM) for no longer recognizing these projects as additional in certain countries. An additional project is one that would not have occurred without the incentive provided by carbon credit revenues. Mexico launched a pilot emissions trading system (ETS) in 2020 to cap greenhouse gas emissions (GHG) from major industries, but the project has stalled for almost two years. Chile implemented a carbon tax in 2017 targeting large emitters in the power and industrial sectors. The country is developing a more comprehensive ETS to meet its climate goals, particularly through Article 6 of the Paris Agreement, which allows for international cooperation in reducing GHG emissions. Every region faces unique challenges and "even within our own countries, the situation varies," said Cristian Mosella, director of Chilean firm EnergyLab, emphasizing the need for tailored project strategies that reflect local realities. Meanwhile, Ecuador is focusing on carbon offset projects to reduce deforestation. The country is a relatively new player in the carbon market, Jackson Torres, director of Ecuadorean agency Soft Landing said. Last year, Ecuador hosted its first Carbon Forum, marking a significant step toward engaging the private sector in carbon offset projects, he added. Frequent changes in direction after elections and turnover among government officials also make consistent policy implementation on carbon markets difficult, Andres Pascuas from Colombian firm Ambiente & Comunicaciones said. Colombia introduced a carbon tax on fossil-fuel emissions in 2017 and is developing a broader ETS as part of its Nationally Determined Contributions (NDCs) under the Paris Agreement. By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Mexico’s Queretaro state readies carbon offset program
Mexico’s Queretaro state readies carbon offset program
Mexico City, 15 August (Argus) — Mexico's central Queretaro state said it will launch a new compensation mechanism to provide a structured framework for carbon reduction projects. The joint initiative between the state government and MexiCO2, a subsidiary of Mexico's stock exchange, "aims to support all sectors in reducing emissions through frameworks tailored to Mexico's needs and at the lowest possible cost," said Eduardo Piquero, chief executive of MexiCO2 during the Mexico Carbon Forum in Leon, Guanajuato. The mechanism will also track emission reductions used for state-level carbon tax payments, voluntary offsets and other purposes, contributing to Mexico's commitments under the Paris Agreement. The compensation mechanism registers and certifies emission reduction projects within the country, integrating standards and eligibility criteria designed to ensure the initiative achieve real, verifiable, and transparent benefits, Ricardo Torres, Queretaro's deputy environment ministry told Argus on the sidelines of the event. Queretaro leads Mexico in carbon reduction efforts, as it is the only state currently allowing a combination of carbon taxes with utilization of carbon offsets to meet state-level carbon tax compliance obligations. The compensation mechanism is expected to launch in 2025, with plans by MexiCO2 to expand it to other states, including Guanajuato and Tamaulipas, Ricardo Torres, Piquero told Argus . By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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