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EU imports of Chinese UCO, Ucome at record in August

  • Market: Biofuels
  • 18/10/18

The EU imported record levels of used cooking oil (Uco) and biodiesel made from Uco (Ucome) in August, as appetite from European blenders and distributors showed no sign of slowing.

UCO imports were above 50,000t, up from 10,000t a year earlier, and were more than 235,000t in the first eight months of this year — up from just 20,000t in the same period a year earlier and over four times the 56,000t imported in all of 2017, according to customs data (see chart).

The Netherlands took a record 30,000t in August, and Spain took 15,000t. Around 145,000t of UCO arrived in the Netherlands in January-August — before January no cargoes of any scale unloaded there. Spain received 70,000t.

Demand from Spanish producers — 140,000 t/yr Biocom Energia and 100,000 t/yr BioArag — could increase if, as is likely, Spain begins double-counting biodiesel made from waste oils against state mandates in the first quarter of 2019.

Volumes of UCO needed in Spain could jump next year — the 85,000 t/yr Linares Biodiesel facility in the south of the country has begun production of Ucome, after several years idle. Spain's dominant palm oil biodiesel (PME) producer, the 1.1mn t/yr Musim Mas, is considering converting its 200,000 t/yr plant at Cartagena to run waste oils and fats in 2019.

Some concerns from traders and brokers over variable levels of sulphur and nitrogen in Chinese imports do not appear to be dampening demand.

The highest level of Chinese Ucome cargoes yet recorded arrived in the EU in August. Close to 40,000t was delivered, all to the Netherlands, up from 15,000t in July and just ahead of the previous record in May.

Chinese Ucome export volumes to the EU have been erratic this year. Larger cargoes were moved in February, May and August, but only 300t in April. Volumes were up by 52pc year on year, at 170,000t, in the first eight months of the year.

Many factors are influencing the amount of Chinese exports to Europe. Volumes are highly dependent on freight costs and seasonal conditions. Shipments of biodiesel from Argentina, made from soya oil (SME), have washed across Europe this year, cutting some demand for Chinese Ucome. Large quantities of PME have arrived in the EU from Indonesia. While Europe remains well supplied with biodiesel, demand for Chinese Ucome will fluctuate. There have also been some concerns from European customers over free fatty-acid levels in Chinese Ucome rising above EU standards.

China also has a growing internal market for biodiesel. Domestic producers could be encouraged to save supply to sate internal demand if forward prices decline in the Amsterdam-Rotterdam-Antwerp (ARA) region.

Chinese UCO and Ucome exports to EU '000t

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Study calls for e-fuels bunker subsidies, GHG tax

Study calls for e-fuels bunker subsidies, GHG tax

New York, 30 January (Argus) — E-fuel subsidies and a greenhouse gas (GHG) emissions tax is needed for e-fuels to compete as a bunkering fuel before 2044, said a study by maritime consultancy University Maritime Advisory Services (Umas) and the UCL Energy Institute. The study found that adding a multiplier of the GHG intensity credit given to e-fuels could help to make e-fuel use financially competitive, but it would have to be set at high levels at the start. Using a multiplier of two, where one ship running on zero emissions e-fuel could generate credits to offset three other similar ships operating on conventional fossil fuels, was not able to make e-fuels more competitive before 2041. The multiplier would have to be set initially at 15 in 2030, falling to 10 by 2035, to enable the competitiveness of e-fuels, concludes the study. Additionally, levying a GHG tax or fee of $150-$300/t of CO2-equivalent would also make e-fuels more competitive. A tax of $30-$120/t CO2e is close to the aggregate level of subsidies, and would not create a sustained promotion of e-fuels. Under the current marine fuel standards, a combination of fossil fuels, including LNG, biofuels and carbon capture and storage systems would be most competitive up until 2036. After, blue ammonia dual fuel ships would be the lowest-cost solution until 2044. Ships that were more competitive from 2027-2035 would have at least 25pc higher operating cost from 2040 onwards. Thus, if ship owners order newbuild vessels to maximize short-term competitiveness, the sector is at a "major risk of technology lock-in" and will not be as cost-effective for reaching net zero by 2050. The study models a 2027-build, 14,000 twenty-foot equivalent unit container ship. The vessel sails between Asia and Latin America using different marine fuels such as bio-methanol, e-methanol, LNG, bio-LNG, e-LNG, bio-marine gasoil (MGO), e-MGO and very low-sulphur fuel oil. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Marine biodiesel sales drop in Rotterdam port 4Q 2024


30/01/25
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30/01/25

Marine biodiesel sales drop in Rotterdam port 4Q 2024

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Montana biofuel loan delayed by White House: Calumet


29/01/25
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29/01/25

Montana biofuel loan delayed by White House: Calumet

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Brazil biofuels venture to add complex in Alagoas


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28/01/25

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Lootah Biofuels to collect UCO from UAE households


28/01/25
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28/01/25

Lootah Biofuels to collect UCO from UAE households

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