Dubai biodiesel producer Neutral Fuels expands

Spanish Market: Biofuels
28/04/20

Dubai-based biofuels producer Neutral Fuels is expanding its waste-based biodiesel operations beyond the UAE in the Middle East, Africa and Asia-Pacific.

The company sources used cooking oil (UCO) feedstock from domestic suppliers and sells exclusively to the domestic market in each location.

A plant in South Africa with 4,700 t/yr of B100 production capacity will open later this year, following expansion into India's Delhi and Bahrain in 2019 with B100 plants of 4,700 t/yr and 2,400 t/yr respectively. Funds raised from green bonds listed on Germany's Frankfurt stock exchange in 2019 are partly financing the company's growth.

Pure B100 biodiesel production at its UAE operations will increase by 4,700t to 11,800t this year, said Neutral Fuels chief executive Karl Feilder. Blended B5 output will consequently rise to 237,000t in 2020 from just over 118,000t in 2019. This additional capacity will come from a plant launching in Abu Dhabi in the next few months to bolster total UAE production along with its existing Dubai plant.

Neutral Fuels does not intend to sell its product internationally, even with its B100 certified to Europe's EN14214 biodiesel standard. It instead seeks to enhance waste-based biodiesel consumption in the regions where it is located by replicating the localised supply chain model used in its Dubai operations. Supplies of UCO are obtained on term contracts from partners such as McDonald's, Nestle, Del Monte and Ikea, processed and blended at Neutral Fuels' own plants and sold directly to domestic consumers including school and corporate bus fleets.

Eurostat recorded 3,200t of UCO imports to the EU from the UAE during January-February and a total of 13,800t in 2019, which amounts to 90pc of total collections in the UAE, according to Feilder. The Dubai government is considering a ban on exports of valuable raw materials, including UCO, which would increase the percentage of waste feedstocks available for domestic processing.

Collecting and processing waste feedstocks locally is the "future of this industry", Feilder said, as it allows for greater emissions reductions and refined production processes tailored to domestic feedstock chemistry. Neutral Fuels' product is certified in Germany to meet the ISCC and Nabisy carbon footprint reduction verifications.

The UAE currently does not mandate diesel blending, with customers buying Neutral Fuels products entirely to meet company corporate social responsibility commitments. A localised model of waste feedstock biodiesel production is feasible and profitable without such government legislation, Feilder said, with its company revenues increasing by 25pc in March compared with February.

By Lauren Moffitt

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08/04/25

Bunker Industry seeks universal alternative fuels rules

Fujairah, 8 April (Argus) — Bunker market participants urged the adoption of universal standards for alternative bunker fuels, warning that fragmented regulations are hampering the maritime sector's shift to lower-carbon options. Speaking at the S&P Global Commodity Insights FUJCON 2025, held in Fujairah, UAE, stakeholders highlighted inconsistencies and divergent regional policies, governing biofuels, methanol, ammonia and hydrogen as a key obstacle to scaling up adoption. The lack of harmonised standards on fuel certification, safety protocols and emissions accounting is creating uncertainty for operators and suppliers navigating a complex global market. "Shipping companies like us face an unfair situation, falling behind the policies, that are changing every day," Jens Maul Jorgensen, director of bunkering at Oldendorff Carriers said. The EU's emissions trading system (ETS) was extended to cover the maritime sector last year, and this year FuelEU Maritime came into effect, while the International Maritime Organisation (IMO) is lagging with global regulations, Jorgensen said. FuelEU Maritime, which came into effect this year, sets greenhouse gas (GHG) emissions reduction targets for vessels travelling in or out of Europe. Panel participants at FUJCON called for the replacement of "too many regulations" with universal, clear and policed rules. "If we do not ensure the proper policing of these rules, people will keep finding loopholes, and we do not need loopholes," according to chair of the International Bunker Industry Association Constantinos Capetanakis. The bunker market is under pressure to decarbonise as the IMO targets a 50pc cut in shipping emissions by 2050 from 2008 levels. Alternative fuels are central to this goal, but regulatory disparities complicate investment decisions, industry players said. Market participants warned that prolonged regulatory fragmentation could delay infrastructure investments and inflate costs for end-users. By Elshan Aliyev Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Flooding on US rivers mires barge transit

07/04/25

Flooding on US rivers mires barge transit

Houston, 7 April (Argus) — Barge transit slowed across the Arkansas, Ohio and lower Mississippi rivers over the weekend because of flooding, which prompted the US Army Corps of Engineers (Corps) to close locks and issue transit restrictions along the waterways. The Corps advised all small craft to limit or halt transit on the McClellan-Kerr Arkansas River Navigation System (MCKARNS) in Arkansas because flows reached above 200,000 cubic feet per second (cfs), nearly three times the high-water flow. The heavy flow is expected to persist throughout the week, posing risks to those transiting the river system, said the Corps. Some barges have halted movement on the river, temporarily miring fertilizer resupply efforts in Arkansas and Oklahoma in the middle of the urea application season. The Corps forecasts high flows to continue into Friday, and the National Weather Service predicts several locations along the MCKARNS will maintain a moderate to minor flood stage into Friday as well. Both the Arthur V Ormond Lock and the Toad Suck Ferry Lock, upriver from Little Rock, Arkansas, shut on 6 April because of the high flows. Flows along the Little Rock Corps district reached 271,600cfs on 7 April. The Corps forecasts high flows to continue into Friday. Ohio and lower Mississippi rivers The Corps restricted barge transit between Cincinnati, Ohio, and Cairo, Illinois, on the Ohio River to mitigate barge transportation risks, with the Corps closing two locks on the Ohio River on 6 April and potentially four more in the coming days. Major barge carrier American Commercial Barge Line (ACBL) anticipates dock and fleeting operations will be suspended at certain locations along the Mississippi and Ohio rivers as a result of the flooding. NWS forecasters anticipate major flooding levels to persist through the following week. Barge carriers also expect a backlog of up to two weeks in the region. To alleviate flooding at Cairo, Illinois, where the Ohio and Mississippi Rivers meet, the Corps increased water releases at the Barkley Dam on the Cumberland River and the Kentucky Dam on the Tennessee River. The Markland Lock, downriver from Cincinnati, Ohio, and the Newburgh lock near Owensboro, Kentucky, closed on 6 April. The Corps expects the full closure to remain until each location reaches its crest of nearly 57ft, which could occur on 8 or 9 April, according to the National Weather Service (NWS). Around 50 vessels or more are waiting to transit each lock, according to the Lock Status Report published by the Corps on 7 April. The Corps also shut a chamber at both Cannelton and McAlpine locks. The John T Myers and Smithland locks may close on 7 April as well, the Corps said. The Olmsted Lock, the final lock before the Ohio and Mississippi rivers, will require a 3mph limit for any traffic passing through. The NWS expects roughly 10-15 inches of precipitation fell along the Ohio and Mississippi River valleys earlier this month, inducing severe flooding across the Ohio and Mississippi River valleys. A preliminary estimate from AccuWeather stated an estimated loss of $80-90bn in damages from the extreme flooding. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

GHG pricing mechanism to be finalised this week: IMO

07/04/25

GHG pricing mechanism to be finalised this week: IMO

London, 7 April (Argus) — The structure of the International Maritime Organisation's (IMO) economic pricing mechanism — aiming to reduce the cost gap between conventional marine fuels and zero/near-zero emission alternatives — will be agreed on by the end of the week, including details on the cost of carbon emissions and whether remedial units will be included, IMO secretary general Arsenio Dominguez said today. Dominguez said the focus of the economic pricing mechanism is not just to raise revenue, but also to support fuel transition. By the end of this week, Dominguez said he is confident that we will see the architecture of what the proposal looks like, including if a remedial unit will be included in the pricing mechanism and what the numbers will look like. Dominguez also said that non-compliant penalties, once agreed on as part of the proposal, will be implemented via a guideline which will be developed after this week. This will be in place by the "entry into force" in 2027, and will cover vessels above 5,000 gross tonnage (GT). Dominguez confirmed that the latest discussions between member states have favoured a "crediting" system for alternative marine fuels as opposed to a "flat carbon levy", although these details are set to be finalised by 11 April. He highlighted three main points being discussed — the definition of "znz" (zero and near-zero emission fuels and technologies), the pricing mechanism itself, and the approach of governance when it comes to implementing the mid-term measures. One of the main concerns raised by market participants on IMO's efforts has been potential regulatory conflicts, such as in the EU where the emissions trading system (ETS) was extended into maritime in 2024 and FuelEU Maritime came into effect in 2025. The concern could be that clashes between IMO global regulations and EU regulations could lead to uncertainty and confusion in the market, potentially weighing on fundamentals for alternative marine fuels. Dominguez said this topic has not yet been explored, but he expects EU member states to look into the respective legal clauses and there could be potential for a unified regulatory approach in line with the global regulation. IMO had also been looking at raising the limit on biofuel content onboard a Type I barge to 30pc from the current limit of 25pc. The proposal for this was submitted to MEPC 83, with a view to approval. "The guidance allows conventional bunker ships certified for carriage of oil fuels under Marpol Annex I to transport blends of not more than 30pc by volume of biofuel, as long as all residues or tank washings are discharged ashore, unless the oil discharge monitoring equipment is approved for the biofuel blend(s) being shipped.", IMO said. The MEPC circular on interim guidance on the carriage of blends of biofuels and Marpol Annex I cargoes by conventional ships was approved today, subject to final editorial review and then to be released as a circular. Dominguez addressed questions regarding the IMO carbon intensity indicator (CII) system, for which a review is expected. IMO's CII regulation, which came into force in January 2023, requires vessels over 5,000GT to report their carbon intensity, which is then scored from A to E. A and B vessel scores are regarded as superior energy efficiency, while C, D and E are considered moderate to inferior scores. Dominguez said the review is likely to take place in 2027, in which IMO will assess the positive aspects of CII so far and identify any further improvements needed. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

USDA to release paused funds for higher biofuel blends

04/04/25

USDA to release paused funds for higher biofuel blends

New York, 4 April (Argus) — The US Department of Agriculture (USDA) said this week that the agency would release $537mn for 543 projects meant to expand infrastructure for higher biofuel blends, reviving many projects that were funded by former US president Joe Biden and then paused by the new administration. The grants will help support the installation of biofuel storage tanks and dispensers of higher ethanol blends, including E15 and E85, and higher biodiesel blends, including B20 and B99. They come from the Higher Blends Infrastructure Incentive Program, which started during US president Donald Trump's first term to help reduce the cost of installing biofuel infrastructure but was more recently expanded in scope with new funds from the Inflation Reduction Act. Project funding had been stalled after Trump pressed federal agencies to pause the disbursement of funds appropriated by that 2022 climate law. That directive affected projects due for funding under the higher blends program, including some approved in the final days of the Biden administration. Trump's efforts to freeze legislatively-approved funding is the subject of multiple court cases. USDA said that of the 543 projects approved for support, 188 projects — amounting to nearly $260mn of spending — were new commitments under the Trump administration. The largest of the new projects is a $14.3mn grant for QuikTrip to install E15 and B20 dispensers at 75 fueling stations across 13 states. More projects received funds in California than in any other state. USDA said releasing the funds — at the same time as various other government programs remain on hold — is part of its commitment to "aggressively exploring ways to unleash American energy and incentivize the production and use of homegrown US biofuels." Biofuel groups see potential for supportive policy under the Trump administration and lobbied US officials at a meeting this week for a steep increase in biomass-based diesel blend mandates. Ethanol lobbyists are privately optimistic too that the administration will soon start issuing emergency waivers to bypass typical summertime limits on nationwide E15 access. Support for biofuels is one way the Trump administration could reduce the toll on US farmers from an increasingly volatile trade war that threatens to cut off export markets for US corn and soy. USDA noted that the higher blends program, by allowing for more ethanol and biodiesel consumption, "protects American farmers from retaliatory trade practices." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indústria de SAF no Brasil deve decolar em 2027

04/04/25

Indústria de SAF no Brasil deve decolar em 2027

Sao Paulo, 4 April (Argus) — A indústria de aviação brasileira está atenta às regulações para o combustível sustentável de aviação (SAF, na sigla em inglês), enquanto o mercado doméstico aguarda o início da produção local para cumprir com o plano de mandato de mescla e com o potencial de exportação. A Lei do Combustível do Futuro visa aumentar as mesclas obrigatórias de biocombustíveis para reduzir as emissões de gases de efeito estufa (GEEs) em voos domésticos no período de dez anos, a começar por 2027. O Brasil se comprometeu a aplicar um mandato de 10pc de SAF até 2037. Os esforços do país para implementar o mandato de SAF estão alinhados às diretrizes do Esquema para Compensação e Redução de Carbono para a Aviação Internacional (Corsia, na sigla em inglês), da Organização da Aviação Civil Internacional (ICAO, na sigla em inglês), que prevê a redução de emissões de GEEs em voos internacionais. O programa determina duas fases até a implementação integral das metas de redução, pensando em uma adaptação mais eficiente das companhias aéreas e dos produtores. As companhias aéreas podem aderir voluntariamente ao programa entre 2024-26. As metas compulsórias globais são implementadas entre 2027-2035, o que incentiva o uso de SAF e a compensação de créditos de carbono. A fase obrigatória abrange todos os voos internacionais, incluindo aqueles com embarque e desembarque em países não-voluntários, exceto os considerados menos desenvolvidos e os de baixa participação no tráfego aéreo global. O SAF brasileiro é uma indústria recém-nascida com potencial para oferta de insumos , principalmente as rotas de produção envolvendo óleo de soja, etanol de milho e de cana-de-açúcar, bem como largas terras agrícolas destinadas à produção de biomassa sem a prática de mudança do uso da terra (MUT). Essa variabilidade também abre espaço para novos projetos que reutilizam terras degradadas e áreas agrícolas existentes em conformidade com os critérios de sustentabilidade da ICAO relacionados ao uso de terra e ao aprimoramento do solo. A inserção do SAF no Brasil enfrenta obstáculos econômicos à medida que a alta volatilidade do mercado pesa sobre os investimentos de longo prazo, disse o consultor da A&M Infra, Filipe Bonaldo. Segundo o consultor, a agenda política não afetará a transição energética no país como aconteceu nos Estados Unidos sob o governo do presidente Donald Trump, uma vez que a economia do Brasil depende fortemente da agricultura e as regulações do mercado são otimistas. Como uma potência agrícola, o Brasil oferece produção de baixo custo e múltiplas fontes para suprir as demandas internas e externas. O Brasil é o terceiro maior exportador global nos mercados agrícola e pecuário, liderando os segmentos da soja, suco de laranja e de carne, de acordo com a Confederação da Agricultura e Pecuária do Brasil (CAN). Estreia no Rio A Vibra foi a primeira distribuidora a oferecer SAF no Brasil, antes da mescla obrigatória entrar em vigor. A empresa importou 550m³ de SAF produzido a partir de óleo de cozinha usado (UCO, na sigla em inglês), a partir da Bélgica, em janeiro. O biocombustível está disponível para venda nas instalações da Vibra no aeroporto internacional do Rio de Janeiro após dez meses de operações logísticas. A Certificação Internacional de Sustentabilidade e Carbono (ISCC, na sigla em inglês) assegurou a validade de todas as etapas, desde a cadeia de suprimento do produto até a distribuição. A Vibra opera em mais de 90 aeroportos no território brasileiro e representa 60pc da participação de mercado da aviação nacional através da subsidiária BR Aviation, disse o vice-presidente executivo de operações, Marcelo Bragança. Por que tanta demora? Por muito tempo, o setor teve dúvidas quanto à viabilidade técnica do uso de biocombustíveis na aviação, especialmente quanto à segurança, disse a gerente de meio-ambiente e transição energética da Agência Nacional de Aviação Civil (Anac), Marcela Anselmi. A Anac e a Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) seguem as regulações internacionais para o SAF ao exigirem que o biocombustível apresente semelhanças físico-químicas com o combustível fóssil de aviação para garantir a segurança das operações aéreas. Ainda não é possível usar 100pc de SAF nos motores de aeronaves, disse Anselmi. Há um limite de 50pc de mescla que inibe a adesão ao redor do mundo, considerando as restrições técnicas que ainda precisam ser superadas. O compromisso recente com as pautas de transição energética está incentivando a oferta de biomassa para a aviação, bem como aos modais rodoviário e marítimo, o que exige novas rotas de produção. Por exemplo, a rota alcohol-to-jet (ATJ) converte etanol em SAF, o que pode ser caro para instalar e implica alto investimento em bens de capitais. No contexto global, o Brasil está na vanguarda da pauta SAF, considerando que a Europa e os EUA publicaram legislações relacionadas à produção e ao consumo somente nos últimos dois anos, apontou Anselmi. Enquanto isso, a capacidade projetada de produção de SAF na América do Sul pode chegar a 1.100 m³/ano em 2030, de acordo com a Empresa de Pesquisa Energética (EPE). Por João Curi Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2025. Argus Media group . Todos os direitos reservados.

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