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Brasil Biofuels expands Amazon power generation

  • Market: Biofuels, Electricity, Oil products
  • 21/07/20

Biodiesel and power generation company Brasil Biofuels (BBF) was authorized to begin commercial operations at its 18th biodiesel-fired thermoelectric plant, further reducing the carbon footprint of power generation in the Amazon basin.

The company has been a pioneer in integrating biodiesel production and power generation in a region of the country that is highly dependent on diesel transported in from a long distance.

"It took over a decade to overcome the challenges of investing in the Amazon, but these projects prove that sustainable development in the Amazon is possible," BBF chief executive Milton Steagall tells Argus.

The company is one of only a handful of Brazilian biodiesel producers that uses palm oil as feedstock.

The palm oil used in its plants is produced on company-owned plantations, all of which are located in areas of the Amazon region that are classified as degraded, BBF says.

Because of a 2010 law, palm cannot be planted on areas that were deforested after 2007. Furthermore, because of the 2008 forestry code, properties in the Amazon biome are required to hold 80pc of their total area in reserve.

BBF was one of the winners of last year's generation auction for power purchase agreements in Roraima state, which used to rely on neighboring Venezuela for supply. The company will invest R635mn ($122mn) in two power stations with combined capacity of 74MW. The larger plant, with 56MW of capacity, will be located in the capital of Roraima and will have both biodiesel and solar generation capacity.

The second power plant will be in Sao Joao da Baliza, where the company's biodiesel and 72 t/d palm oil plant are located.

The two power plants will begin operating in early 2021.

According to Steagall, the plants will reduce conventional diesel consumption in the region by 130,000 l/y, once fully operational.

"Not only does this reduce pollution, but it also reduces generation costs," Steagall added.

The company plans to participate in future auctions to supply isolated systems. Steagall added that the government is expected to hold auctions for these regions in 2021.

In addition to its biodiesel business, the company announced a joint venture with US ethanol plant producers ICM to build a corn ethanol plant in Roraima. With initial investment of R220mn, the company plans to produce 400mn l/yr of ethanol.

Part of the corn ethanol plant's production will be used as catalyst for biodiesel production, but the bulk of the ethanol supply will be sold in Roraima.

"Roraima is the state with the highest gasoline prices, which means our ethanol will be competing with the most expensive gasoline in Brazil," Steagall said, adding that the company plans to take advantage of new legislation that will allow it to sell ethanol directly to the service stations.


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07/04/25

Colombia's renewables grow, but gap looms

Colombia's renewables grow, but gap looms

Bogota, 7 April (Argus) — Development of non-conventional renewable (NCRE) generation has picked up in Colombia, but the pace is still not fast enough to cover a projected generation shortage by 2027-2028. Colombia will likely reach 2.55GW in installed NCRE such as solar and wind — excluding large hydropower — by the end of 2025, up from 1.88GW at the end of 2024, Colombian renewable association SER director Alexandra Hernandez told Argus at the Colombia Genera conference held last week in Cartagena. About 670MW from 19 medium and large NCRE plants worth $500mn will likely come online in 2025, Hernandez noted. Of that total, 30MW in two projects came online in January, and the balance of 640MW are under construction, according to Hernandez. The plants will reduce emissions by 1.1mn metric tonnes (t) CO2/yr compared with conventional generation. For 2026, 419MW in NCRE could come online. NCRE will comprise a 12pc share of Colombia's generation capacity in 2025, up from 10pc in 2024. Despite that, Colombia will fail to meet its target of 6GW in NCRE by August 2026, when the administration of President Gustavo Petro ends, former minister of mines and energy Amylkar Acosta said. Colombia will likely will end 2026 with 3GW, Hernandez noted. This comes despite Petro's support for renewable energy and attempts to phase out hydrocarbons use. Much of this development is focused on the dry, windswept department of La Guajira that borders Venezuela and juts into the Caribbean. US firm AES' will start building the first 259MW phase of its 1.1GW Jemeiwaa Ka'I wind complex there later this year, AES's general manager Federico Echavarria said at the Colombia Genera conference. "Our biggest bet is La Guajira," Echavarria said. Last year, Colombia's environmental regulator Anla approved a transmission line connecting 648MW of planned wind capacity in the La Guajira area to the national grid. The 500kV Casa Electrica-Colectora transmission line and substation will connect with Grupo de Energia de Bogota's 500kV Colectora transmission line. Colectora has begun construction and should come online in 2026, a delay from its original 2022 start date. La Guajira has Colombia's greatest renewable power potential, including 21GW of wind power potential, according to state planning agency UPME. But delays to key transmission projects and lengthy community consultations impeded development. Italian power company Enel suspended indefinitely construction of a 205MW wind farm in the Windpeschi region, but state-controlled oil company Ecopetrol is seeking authorization to buy it. Projects advancing in other departments include the 200MW Orquidea solar project in the Caribbean province of Bolivar, which recently earned an environmental permit that clears the way for construction. Running out of time But this new generation capacity will not cover an expected supply shortfall. Colombia is forecast to have a gap of around 2,000MW by 2027-2028 assuming baseline consumption, and 3,000MW-6,000MW if demand rises further, several electricity associations have said. Renewables could help fill this gap, as the construction is fairly quick once permits as security, the renewables group SER said. But 47pc of renewable power companies were unable to complete their planned investments in 2024, with permitting delays among the top reason, the group found in a member survey. Permits from the government's mining and planning unit UPME takes nine months, compared with the two months stipulated by the law. Regional entities take twice as long to issue a permit than the legal limit. The government will push to do more, energy and mines minister Edwin Palma said in Cartagena. "We are convinced and committed to ensuring that expansion projects are carried out," he said. "We will work with the ministry of the interior to expedite licenses." By Diana Delgado Colombia's power generation mix % Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Tariffs and their impact larger than expected: Powell


04/04/25
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04/04/25

Tariffs and their impact larger than expected: Powell

New York, 4 April (Argus) — Federal Reserve chairman Jerome Powell said today tariff increases unveiled by US president Donald Trump will be "significantly larger" than expected, as will the expected economic fallout. "The same is likely to be true of the economic effects, which will include higher inflation and slower growth," Powell said today at the Society for Advancing Business Editing and Writing's annual conference in Arlington, Virginia. The central bank will continue to carefully monitor incoming data to assess the outlook and the balance of risks, he said. "We're well positioned to wait for greater clarity before considering any adjustments to our policy stance," Powell added. "It is too soon to say what will be the appropriate path for monetary policy." As of 1pm ET today, Fed funds futures markets are pricing in 29pc odds of a quarter point cut by the Federal Reserve at its next meeting in May and 99pc odds of at least a quarter point rate cut in June. Earlier in the day the June odds were at 100pc. The Fed chairman spoke after trillions of dollars in value were wiped off stock markets around the world and crude prices plummeted following Trump's rollout of across-the-board tariffs earlier in the week. Just before his appearance, Trump pressed Powell in a post on his social media platform to "STOP PLAYING POLITICS!" and cut interest rates without delay. A closely-watched government report showed the US added a greater-than-expected 228,000 jobs in March , showing hiring was picking up last month. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UK considers import tariffs on US oil products


04/04/25
News
04/04/25

UK considers import tariffs on US oil products

London, 4 April (Argus) — The UK government has included refined oil products from the US in a list of goods that could be subject to retaliatory tariffs. The government said it was considering "potential tariff measures on US goods, should this be deemed necessary" in response to a 10pc US import tariff on UK goods and services — excluding energy — due to take effect on 5 April. The consultation will last until 1 May. Light oils, gasoils, jet fuel, fuel oils, lubricants and bitumen all feature in the list of products possibly subject to retaliatory tariffs. The UK could be particularly exposed to any tariff impact on US middle distillate imports in the event of retaliation. The UK sourced over a quarter of its 14.37mn t of 10ppm diesel and gasoil from the US last year, according to Vortexa, while 3pc of its 10.15mn t of jet and kerosine imports were sourced from the US. It is not clear what tariff rate the UK is targeting in its potential retaliation. For other oil products, any potential import tariff impact would become more muted as US refined product imports become less significant. The UK received just 6pc of its 1.92mn t total fuel oil imports from the US last year, while the UK was the fourth largest gasoline supplier to the US and received none of the product from its trade partner. European refined product values have collapsed as a result of the escalating trade war which saw China retaliate today against the US' latest tariff action. Eurobob non-oxy gasoline barge prices dropped by 4pc to $700.75/t on 3 April at a time when trading activity typically picks up ahead of the US summer driving season. Indicated non-oxy barge values were set to drop further in the trading session today. The EU is similarly preparing countermeasures against US import tariffs, which Washington set at 20pc from 9 April in addition to existing rates. Ice gasoil futures had dropped by 10pc since President Trump announced the new tariff regime on 2 April to $615.75/t by the close today. Ice gasoil futures are used as the pricing basis against which diesel, gasoil and jet fuel grades are assessed in the European middle distillates markets. European refined products market participants have pointed to a darker global economic outlook triggered by the US import tariffs as the driving force behind the drop-off in European product values. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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South Africa Natref to end bitumen production from Sep


04/04/25
News
04/04/25

South Africa Natref to end bitumen production from Sep

London, 4 April (Argus) — Bitumen production at Natref's 107,000 b/d Sasolburg refinery in South Africa will cease from September, ending all the country's output of the heavy oil product. Several South African bitumen market participants, including buyers from the refinery and suppliers of imported bitumen into the domestic and regional southern African markets, said officials from majority Natref shareholder Sasol had been informing customers of the planned move over the past week. Customers were told that final bitumen supply from stocks held at the refinery would be supplied to them into October, with all supplies ending thereafter. Market participants said the Natref plan is linked to a wider move of switching to sweeter crudes aimed at maximising output of light and middle distillates, which would also hit output of heavy products other than bitumen, notably high-sulphur fuel oil (HSFO). Officials at Sasol, which owns 63.3pc of Natref alongside UK energy firm Prax with 36.4pc, have so far not responded to Argus' requests for comment. South African market participant said the move had been under consideration for some time, even before Prax agreed to buy TotalEnergies' Natref stake in December 2023. South Africa turned from a major net exporter of bitumen, mainly to its southern African neighbours, to becoming increasingly dependent on imports after several of the country's refineries were either shut down or ended their bitumen production since 2020. South African cargo imports in bitumen tankers surged to nearly 200,000t in 2024, according to Vortexa data, mostly into Durban and some into Cape Town. Mediterranean supplies, mainly from Greece and Turkey, made up just over half of these, with Rubis and Continental supplying most. Mideast Gulf storage points, along with Bahraini state-owned Bapco's refinery and export terminal at Sitra, supplied around a third, while emerging exporter Pakistan shipped 8pc. According to a South African bitumen supplier, the Natref refinery's bitumen production fell last year to 45,000-50,000t — from an Argus estimate of 140,000t in 2023 — because of numerous plant halts and interruptions. The market effect of Natref ending its bitumen output will therefore be limited, with another leading South African participant saying truck flows from the inland refinery had become increasingly unreliable. The halt will nevertheless trigger more South African import requirements that are anyway likely to rise sharply in the coming years because of much-enhanced government infrastructure budgets. The Natref refinery was forced to stop all production for about two months following a fire in early January this year. French construction and bitumen supply firm Colas recently became the latest company to take a South African import asset position, agreeing a long-term deal with local firm FFS Refiners to operate four of five new bitumen tanks at an existing Durban facility once an FFS expansion there is completed, likely in the second half of this year. By Keyvan Hedvat and Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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New tariffs could upend US tallow imports


03/04/25
News
03/04/25

New tariffs could upend US tallow imports

New York, 3 April (Argus) — New US tariffs on nearly all foreign products could deter further imports of beef tallow, a fast-rising biofuel feedstock and food ingredient that had until now largely evaded President Donald Trump's efforts to reshape global trade. Tallow was the most used feedstock for US biomass-based diesel production in January for the first month ever, with consumption by pound rising month to month despite sharp declines in actual biorefining and in use of competing feedstocks. The beef byproduct benefits from US policies, including a new federal tax credit known as "45Z", that offer greater subsidies to fuel derived from waste than fuel derived from first-generation crops. Much of that tallow is sourced domestically, but the US also imported more than 880,000t of tallow last year, up 29pc from just two years earlier. The majority of those imports last year came from Brazil, which until now has faced a small 0.43¢/kg (19.5¢/lb) tariff, and from Australia, which was exempt from any tallow-specific tariffs under a free trade agreement with US. But starting on 5 April, both countries will be subject to at least the new 10pc charge on foreign imports. There are some carveouts from tariffs for certain energy products, but animal fats are not included. Some other major suppliers — like Argentina, Uruguay, and New Zealand — will soon have new tariffs in place too, although tallow from Canada is for now unaffected because it is covered by the US-Mexico-Canada free trade agreement. Brazil tallow shipments to the US totaled around 300,000t in 2024, marking an all-time high, but tallow shipments during the fourth quarter of 2024 fell under the 2023 levels as uncertainty about future tax policy slowed buying interest. Feedstock demand in general in the US has remained muted to start this year because of poor biofuel production margins, and that has extended to global tallow flows. Tallow suppliers in Brazil for instance were already experiencing decreased interest from US producers before tariffs. Brazil tallow prices for export last closed at $1,080/t on 28 March, rising about 4pc year-to-date amid support from the 45Z guidance and aid from Brazil's growing biodiesel industry, which is paying a hefty premium for tallow compared to exports. While the large majority of Brazilian tallow exports end up in the US, Australian suppliers have more flexibility and could send more volume to Singapore instead if tariffs deter US buyers. Export prices out of Australia peaked this year at $1,185/t on 4 March but have since trended lower to last close at $1,050/t on 1 April. In general, market participants say international tallow suppliers would have to drop offers to keep trade flows intact. Other policy shifts affect flows Even as US farm groups clamored for more muscular foreign feedstock limits over much of the last year, tallow had until now largely dodged any significant restrictions. Recent US guidance around 45Z treats all tallow, whether produced in the US or shipped long distances to reach the US, the same. Other foreign feedstocks were treated more harshly, with the same guidance providing no pathway at all for road fuels from foreign used cooking oil and also pinning the carbon intensity of canola oil — largely from Canada — as generally too high to claim any subsidy. But tariffs on major suppliers of tallow to the US, and the threat of additional charges if countries retaliate, could give refiners pause. Demand could rise for domestic animal fats or alternatively for domestic vegetable oils that can also be refined into fuel, especially if retaliatory tariffs cut off global markets for US farm products like soybean oil. There is also risk if Republicans in the Trump administration or Congress reshape rules around 45Z to penalize foreign feedstocks. At the same time, a minimum 10pc charge for tallow outside North America is a more manageable price to pay compared to other feedstocks — including a collection of charges amounting to a possible 69.5pc tax on Chinese used cooking oil. And if the US sets biofuel blend mandates as high as some oil and farm groups are pushing , strong demand could leave producers with little choice but to continue importing at least some feedstock from abroad to continue making fuel. Not all US renewable diesel producers will be equally impacted by tariffs either. Diamond Green Diesel operates Gulf Coast biorefineries in foreign-trade zones, which allow companies to avoid tariffs on foreign inputs for products that are ultimately exported. Biofuel producers in these zones could theoretically refine foreign tallow, claim a 45Z subsidy, and avoid feedstock tariffs as long as they ship the fuel abroad. Jurisdictions like the EU and UK, where sustainable aviation fuel mandates took effect this year, are attractive destinations. And there is still strong demand from the US food sector, with edible tallow prices in Chicago up 18pc so far this year. Trump allies, including his top health official, have pushed tallow as an alternative to seed oils. By Cole Martin and Jamuna Gautam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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