Exxon Baton Rouge shuts refining, petchem units: Update
ExxonMobil is shutting down units today at its 500,000 b/d refinery and petrochemical plant in Baton Rouge, Louisiana, in the face of widespread power outages and supply chain disruptions.
"Once we confirm we have access to needed feedstocks and third-party utilities to stabilize our systems, we will begin the process of returning to normal operations," the company said today.
The facility also has 1.023mn t/y of ethylene capacity and 1.597mn t/yr of polyethylene capacity.
The company previously said it was shutting "some units and equipment" as it worked to stabilize operations throughout the hurricane, which has left the greater New Orleans and Baton Rouge areas without power today.
ExxonMobil is working with independent distributors and wholesale fuels customers to satisfy fuel demand, with refined products being rerouted from unaffected regions into the US Gulf coast.
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South Korea to require use of SAF for flights from 2027
South Korea to require use of SAF for flights from 2027
Singapore, 30 August (Argus) — South Korea said it plans to require all international flights departing from its airports to use a mix of 1pc sustainable aviation fuel (SAF) from 2027. This comes as more countries are adopting SAF mandates in accordance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Singapore earlier this year announced a 1pc SAF blending mandate from 2026 , with plans to increase to 3-5pc by 2030, subject to global developments and wider SAF availability and adoption. The Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport announced the 'SAF Expansion Strategy' on 30 August, which includes a target for South Korea to capture 30pc of the global blended SAF export market. While not explicitly stated in the statement, some South Korean refineries expect co-processed SAF to be allowed to meet the country's mandate, sources said. This is important as the country already produces small quantities of SAF via co-processing at existing refining facilities, with three of South Korea's four domestic refineries planning to produce SAF through co-processing by the end of this year . Key strategies The ministries outlined three key strategies to achieve the SAF consumption target — gradual expansion of domestic SAF demand, ensuring a stable domestic supply capacity, and establishing a SAF-friendly legal and institutional environment. Airlines can already refuel with SAF at Korean airports, making South Korea the 20th country to do so as part of their plan to increase domestic SAF demand. The country had tested six flights using 2-4pc imported blended SAF between South Korea and Los Angeles since August 2023. An incentive system is being developed to encourage public and private adoption of SAF, with benefits such as preferential allocation of transport rights, reduced airport facility usage fees and the introduction of airline carbon mileage system for passengers and other benefits. A mid- to long-term roadmap for the gradual expansion of domestic SAF demand will be prepared in early 2025, the ministries said. The country's strategy to secure stable domestic supply capabilities includes considering investment support for domestic SAF production such as tax credits. South Korea's four domestic refineries already plan to invest 4 trillion won ($3bn) in renewable fuels, including SAF by 2030, the ministries said. The government estimates a Hydrotreated Esters and Fatty Acids (HEFA) SAF plant with a production capacity of up to 250,000 t/yr will require an investment of approximately W1 trillion. The supply-side strategy also aims to ease regulations on waste recycling to increase the availability of domestic feedstocks for SAF production. Another strategy is to diversify feedstock and SAF production technology options, with pre-testing expected later this year. The government plans to explore alternative feedstock like microalgae and production pathways such as e-SAF, with a view to developing supply chains. South Korea plans to establish a national standard, certification and testing method for SAF with preparation planned for December 2024. By Deborah Sun Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia's Qantas records higher fuel costs in 2023-24
Australia's Qantas records higher fuel costs in 2023-24
Singapore, 30 August (Argus) — Australian airline Qantas Airways recorded a higher fuel bill in the 2023-24 fiscal year to 30 June, as more flights, sustainable aviation fuel (SAF) expenses and carbon offset programmes weighed on costs. Qantas saw its fuel costs rise by 17pc from a year earlier to A$5.32bn ($3.62bn) in 2023-24, according to the company's full-year financial results released on 29 August. The airline group's passenger carrying capacity was up by 21pc on the previous year, with growth in domestic and international capaicty. This saw the group's overall fuel consumption grow to 29mn bl (79,000 b/d), or 18pc up on the previous year. Qantas expects fuel costs in the first half of 2024-25 to remain stable from a year earlier at about A$2.7bn, including hedging and gross carbon costs, with the group forecasting to consume 15.6mn bl of fuel, including SAF. Qantas forecasts domestic group capacity to rise to 104pc of pre-Covid 19 pandemic capacity in the first half of 2024-25. Its international capacity guidance, excluding Jetstar Asia, is expected to rise by about 16pc from the previous year to achieve 102pc of pre-Covid levels in the first half. The group's passenger carrying capacity, measured by available seat kilometres (ASKs), was up on a year earlier by 21pc to 141mn ASK by 2023-24, although this was still about 93pc of pre-Covid levels. Qantas has agreements to offtake SAF, renewing its agreement to buy SAF for flights out of London Heathrow and doubling the size of its corporate customer SAF programme in 2023-24. But the group saw its 2023-24 profit fall, with underlying profit before tax down by 16pc on the previous year to A$2.08bn. By Cara Wong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India lifts curbs on use of sugarcane juice for ethanol
India lifts curbs on use of sugarcane juice for ethanol
Mumbai, 30 August (Argus) — The Indian government is allowing sugar mills and distilleries to use sugarcane juice and sugar syrup to produce ethanol during the November 2024-October 2025 supply year. The government in December last year halted the use of sugarcane juice and sugar syrup for ethanol production in the 2023-24 supply year, as insufficient rainfall in key growing regions led to a surge in domestic sugar prices and a shortage of the sweetener. Sugar mills and distilleries can also produce ethanol from B-heavy and C-heavy molasses. The food ministry's order added that it will, in co-ordination with the oil ministry, periodically review the diversion of sugar to ethanol production in relation to the production of sugar in the country to ensure the availability of sugar for domestic consumption throughout the year. The government also allowed the Food Corporation of India to sell rice to distilleries for ethanol production during August-October but capped the limit at 2.3mn t of rice. India had suspended supplies of excess rice to distilleries for ethanol production in July 2023 because of food availability and concerns about rising prices. Distilleries will be allowed to load rice during August-October subject to allocation of ethanol to the distilleries by oil marketing companies, the government order said. Of the total ethanol used for blending in gasoline in India, around 61pc comes from B-heavy molasses, 20pc from sugar syrup, 11pc from surplus rice, 6pc from damaged food grains and maize and 2pc from C-heavy molasses. India has a set a goal to increase ethanol blending in gasoline to 20pc by 2025, as part of efforts to reduce its dependence on crude imports. Ethanol blending in gasoline was 13.3pc during November 2023-July 2024 and 15.8pc during July 2024, oil ministry data show. Oil marketing companies buy ethanol from ethanol producers like sugar mills and distilleries to blend with gasoline. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Sweden to up biofuel mandates again after slashing them
Sweden to up biofuel mandates again after slashing them
London, 28 August (Argus) — Sweden's government announced that the country will raise its greenhouse gas (GHG) reduction obligations to 10pc for gasoline and diesel from 6pc, with changes due to come into effect on 1 July next year according to Swedish bioenergy association Svebio. The country announced in May last year that it was planning to lower GHG reduction mandates for 2024-2026 to 6pc for both diesel and gasoline, from 30.5pc for diesel and 7.8pc for gasoline in 2023. The government at the time said this was because higher GHG reduction targets in Sweden, compared with the rest of the EU, were pushing diesel prices up at the pump. The biofuels industry in Sweden welcomed the new 10pc mandate, as it will support domestic demand for its fuels. The drop in Sweden's mandates to 6pc had a significant effect on domestic biofuels usage and wider biofuel prices in Europe, particularly hydrotreated vegetable oil (HVO). Because fatty acid methyl ester (Fame) biodiesel has a 7pc physical blend wall into diesel under the EU Fuel Quality Directive, Sweden relied on drop-in HVO to meet its high diesel mandates. As a result of the 2024 mandate cuts, HVO deliveries were down by 95pc on the year in June and total biofuels deliveries were down by 79pc in the same period, according to data from government data provider Statistics Sweden . Lower mandates in Sweden cut domestic HVO demand, redirecting supplies to the wider European market, pushing values down as a result. Prices for HVO Class II fob ARA range, made from used cooking oil, were down by $715.42/t year on year, or 31.5pc, on 27 August. Tomas Ekbom, programme director at Svebio, told Argus that Sweden's government understood it could not rely mainly on the electrification of the transport sector to meet targets and that biofuels had a larger role to play. He added that the government likely also considered that it would be too costly to pay for credits if, in the end, EU targets were missed. Sweden's government estimates that the country will meet its Effort Sharing Regulation commitments for 2030 — a binding emissions reduction target for domestic transport (excluding aviation), buildings, agriculture, small industry and waste of 50pc compared with 2005 levels — by implementing this new 10pc reduction obligation, as well as a new climate action plan. But the parliament previously abolished GHG reduction levels for 2027-2030, taking a wait and see approach. And ministers did not include any plans to scale up the mandated levels from 10pc. The re-cast Renewable Energy Directive requires a 14.5pc GHG reduction target, or 29pc share of renewables by energy content, for transport fuels by 2030. Sweden's new obligation will allow fuel suppliers to credit electricity from public charging stations towards meeting their emissions reduction obligations, but how this will work in practice remains unclear. Last year, battery electric vehicles were 5.75pc of Sweden's total passenger car fleet and plug-in hybrid electric vehicles were 5.37pc of the fleet, based on data from the EU's alternative fuels observatory. Sweden will also include a proposal in its 2025 budget to reduce fuel taxes to reduce impact on fuel prices at the pump. The gasoline tax will be reduced by 0.75 krona/litre ($0.07) next year while the diesel tax will be increased by 0.11 krona/litre ($0.01) — the EU minimum. By Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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