Thai ethanol plants cleared to sell to medical sector
Thai ethanol producers are now allowed to sell alcohol to hand sanitiser and cleaning agent manufacturers without seeking government permission.
The energy ministry announced the change as part of measures in response to the Covid-19 outbreak. Only a small number of plants previously could sell their product to companies outside the fuel industry, but the Thai government is seeking to reassure the public that enough ethanol is available for medical purposes.
The association of Thai sugar mills does not expect producers to significantly adjust the volume of ethanol they sell to the medical industry, currently around 2mn litres/d. But with Thai sales of ethanol-blended gasoline, or gasohol, down to around 4.1mn l/d from an average of 4.4mn l/d in the months before the coronavirus outbreak, plants are likely to have some surplus ethanol available should it be required.
There are also unconfirmed reports of plans to delay ending sales of lower ratio ethanol blended gasoline until September this year. The government initially intended to discontinue 91 octane E10 gasohol after 1 January 2018, a measure keenly anticipated by ethanol producers as it would lead to increased sales of higher ratio gasohol grades E20 and E85 and push up overall ethanol consumption. The energy ministry expected E20 sales to double following the rollback of E10.
But the cut-off was postponed until June 2020 among uncertainty as to whether current supply volumes can support the higher blends. To ensure plentiful supplies during the current coronavirus crisis, E10 may now still be available to consumers until September this year.
Thailand has no legal mandate for gasoline blending but relies on various consumer incentives to promote uptake. Its E20 and E85 compatible vehicles enjoy excise tax reductions and subsidies ensure gasohol sells at a discount at the pump, although the latter will gradually reduce until 2022 under the State Oil Fund Act. Thailand's 95 octane gasoline retailed at an average price of 24.65 baht/l ($0.76/l) on 15 April, while 91 octane E10 gasohol sold at Bt16.78/l and E20 gasohol at Bt15.24/l, according to data from the oil ministry.
Thailand currently has 26 plants producing around 6.3mn l/d of ethanol, of which 4.4mn l goes to fuel blending, according to the energy ministry.
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EU’s centre-right EPP mulls Green Deal tweaks
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South Africa could be regional SAF leader: Iata
South Africa could be regional SAF leader: Iata
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Washington advances carbon market linkage plans
Washington advances carbon market linkage plans
Houston, 2 July (Argus) — Washington regulators are moving forward with plans to further align the state's cap-and-trade program with the California-Quebec carbon market. The state Department of Ecology has released for public comment two draft rules related to holding limits, biofuel emissions and electricity imports that are intended to smooth the way for linkage ahead of formal discussions with California and Quebec regulators that could kick-off next year. The first draft rule, issued on Monday, would revise general cap-and-trade program mechanics, such as raising the holding limit for allowances issued each year for general market participants to 25pc from 10pc should the programs link. It would also revise emissions exemption for biofuels, recently authorized by state lawmakers, of 30pc lower greenhouse gas (GHG) emissions than comparable petroleum fuels and allow Ecology to add an exemption standard used by a linked program, for a two-part standard. Washington set the ball rolling on its ambition to link with the Western Climate Initiative (WCI) partners California and Quebec last year in hopes that creating a larger North American carbon market will help reduce compliance costs. The state legislature authorized Ecology to make the changes in legislation adopted earlier this year . The program costs became a significant issue last year, when Washington Carbon Allowances (WCAs) rose as high as $70/metric tonne (t) in the secondary market. California and Quebec agreed in March to explore adding Washington to the WCI, but progress is unlikely to happen this year as California regulators first focus on updating the state's cap-and-trade program. In the interim, Ecology said it is still considering other amendments that could help with linkage, including moving the state's compliance periods, which run on a four-year cycle, to the three-year cycle used in the linked market. But California and Quebec are considering shifting their compliance periods to either four years or two years for 2026-2030, and then to either five years or alternating between three-year and two-year periods after 2030 to align with their respective statutory targets, which Ecology will have to take into account. Washington has set a target to cut GHG emissions by 45pc by 2030 compared with 1990 levels, and reach net-zero emissions by 2050. The program cap-and-trade program covers industrial facilities, power plants, natural gas suppliers, and other fuel suppliers with emissions of at least 25,000 t/yr. Ecology is accepting feedback on its linkage rulemaking through 27 September, with a public meeting set for 10 July. Imports and reports In a separate rulemaking announced last week, the state is considering expanding reporting requirements and covered emissions under the program to included imported electricity from centralized electricity markets (CEM). The state is required under its Climate Commitment Act to adopt a methodology for imported electricity by 1 October 2026. The proposed amendments would come into play in 2027, allowing regulators to assign GHG emissions to imports of electricity from CEM and for the state to better understand how the imports may affect its climate goals. Under the proposed amendments, regulators would increase allocations of no-cost allowances to electric utilities. The state issues no-cost allowances to electric and natural gas utilities, and industrial entities, to mitigate the cost of decarbonization. Electric utilities must consign an increasing portion of these allowances to state auction starting in 2027 and must use this revenue for projects to benefit customers through projects like energy transition billing credits. Regulators estimate that bringing CEM importers under the cap-and-trade program will result in an aggregated annual compliance cost of around $7mn-$119mn, depending on allowance prices, which regulators expect will fall as emissions declines outweigh imports over time, according to a preliminary regulatory analysis released last month. The proposed changes reflect estimates last year by the state Department of Commerce that 43pc of the state's electricity supply by 2050 will come from imports, driven by Washington moving its electricity away from fossil fuels to renewables sourced from within and outside the state to meet the goal of decarbonizing the state's grid by 2045. Ecology will accept feedback on its proposed rules for imported electricity through 20 August, with final adoption planned in December. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EPA defends 2023-2025 renewable fuel volumes
EPA defends 2023-2025 renewable fuel volumes
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