Pacific ethanol to shift focus from biofuels

Spanish Market: Biofuels
26/10/20

Biofuels producer Pacific Ethanol said it will focus on producing specialty alcohols for sanitizers, beverages and home products, pivoting away from fuel ethanol as the Covid-19 pandemic continues to sap fuel demand.

Between January and September, the company ramped up its specialty alcohol production from 15pc of total production to 50pc to meet demand for USP-grade alcohol, which has been in high demand for its use as a component in sanitizers. Fuel ethanol production fell from 85pc to making up 50pc of total company production during the first three quarters of the year.

Pacific ethanol said that although fuel ethanol will no longer be the company's primary product, it will still remain active in that market.

The company's Magic Valley, Stockton and Madera fuel ethanol facilities currently sit idle and will either be repurposed or sold.

Pacific Ethanol announced in August that it was aiming to expand its annual alcohol capacity to 140mn USG, or a quarter of total production capacity by year end.

Chief executive Mike Kandris previously cited better margins and a more predictable market environment as the main reasons for the company's focus on specialty products such as USP-grade alcohol. With the shift away from biofuels, the company said it will rename and rebrand to better reflect the market it seeks to serve.

Additional products the company is focusing on include spirits for alcoholic beverages and distillers grains for animal feeds.

The company also released "preliminary" third quarter results, reporting net sales of $204mn and a net income of approximately $15mn for the third quarter of 2020.

By Thom Dwyer

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

08/05/25

Bangchak tests runs at Thai SAF plant before 3Q launch

Singapore, 8 May (Argus) — Thai energy group Bangchak is conducting test runs at its sustainable aviation fuel (SAF) plant in Bangkok before likely starting regular production in the third quarter, sources close to the company said. The plant, which is also the country's first SAF plant, will have an initial production capacity of 1mn litres/d. It will mainly consume ISCC-certified used cooking oil (UCO) as feedstock for SAF production via the hydroprocessed esters and fatty acids (HEFA) pathway. Other feedstocks could also be explored in the future, company sources said. The plant will also produce byproducts such as bio-LPG and bionaphtha. Its SAF production process was developed in collaboration with Belgian biofuels processing technology company Desmet, which provided feedstock pre-treatment technologies, and US technology firm UOP Honeywell, a pioneer in hydroprocessing systems, according to Bangchak. Thailand is currently considering the introduction of a SAF mandate at a 1pc blend rate from 2026, with proposals to increase this to 3pc in 2030 and 8pc by 2037. But firm details on implementation mechanisms have yet to be announced. Thailand's board of investment in January approved corporate tax exemptions for SAF producers and investors in the country for a period ranging over 3-8 years. Bangchak has already secured offtake for some of its initial production volumes. The firm last year entered an agreement with oil major Shell's Singapore-based subsidiary to supply SAF from its plant. Bangchak also previously signed another supply agreement with Japanese refiner Cosmo Oil in December 2023, but volumes are still under discussion, a company source said. The Argus fob Singapore SAF netback price has been on a downtrend since late last year, reaching a record lows of $1,668/t on 5 March, and also marking the lowest since Argus ' assessments started in November 2020. The price was at $1,682/t on 7 May. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IMO GHG pricing falls short on green methanol, ammonia

07/05/25

IMO GHG pricing falls short on green methanol, ammonia

New York, 7 May (Argus) — The International Maritime Organization's (IMO) proposed global greenhouse gas (GHG) pricing mechanism might not drive significant uptake of green methanol and green ammonia by 2035, given current market prices. Despite introducing penalties on high-emission fuels use and tradable surplus credits for low-emission fuels, the mechanism does not sufficiently close the cost gap for green alternatives. Under the system, starting in 2028 ship operators will face a two-tier penalty: $100/t CO₂e for emissions between the base and direct GHG intensity limit, and $380/t CO₂e for those exceeding the looser base limit. These thresholds will tighten annually through 2035. Ship operators can earn tradable credits for overcompliance when their GHG emissions fall below the direct limit. Assuming a surplus CO₂e credit value of $72/t — mirroring April 2025's average EU emissions trading system price — green ammonia would earn about $215/t in surplus credits in 2028 (see chart) . This barely offsets its April spot price of $2,830/t VLSFO equivalent in northwest Europe. Bio-methanol would receive about $175/t in credits, offering minimal relief on its $2,318/t April spot price. Currently, unsubsidized northwest Europe bio-LNG sits mid-range among bunker fuel options under IMO's emissions framework. While more expensive than HSFO, grey LNG, and B30 bioblends, the bio-LNG is cheaper than B100 (pure used cooking oil methyl ester), green ammonia, and bio-methanol. To become cost-competitive with unsubsidized bio-LNG — priced at $1,185/t in April 2025 — green ammonia and bio-methanol prices would need to fall by 57pc and 49pc, respectively, to around $1,220/t VLSFOe and $1,180/t VLSFOe by 2028. Unless green fuel prices drop significantly or fossil fuel prices rise, the IMO's structure alone provides insufficient economic incentive to accelerate green ammonia and bio-methanol adoption at scale. By Stefka Wechsler NW Europe, fuel prices plus IMO penalties and credits Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Germany doubts suspended HVO producer exists

06/05/25

Germany doubts suspended HVO producer exists

London, 6 May (Argus) — German regulators have said a producer of hydrotreated vegetable oil (HVO) that has been using the country's Nabisy biomass registry may not exist. The federal office of agriculture and food (BLE) said an investigation begun in mid-April found that biofuels sustainability verification scheme ISCC withdrew the suspended user's certification on 8 January, excluding the operator from the scheme for 48 months because of "a lack of co-operation with the ISCC integrity programme". The BLE had suspended Nabisy access for the company, which had the ID EU-BM-13-SSt-10022652. The company was listed on its ISCC certificate as based in the UAE, and provided an address in Hong Kong for its audit, BLE said. Matching details provided by BLE with Argus research show the producer is likely to be EcoSolution, which said it was producing HVO from crude tall oil, used cooking oil (UCO) and spent bleaching earth oil. The company's audit was done by certification body Certi W Baltic on 5 September 2024, according to ISCC documentation. Argus could not locate a biofuels producer by the name of EcoSolution for comment. Argus asked Certi W Baltic and the ISCC for comment but did not receive responses by the time of publication. BLE said it was suspicious that the concerned producer booked all of its proof of sustainability (PoS) onto the Nabisy account of a supplier whose certification records show an address in the Netherlands. But that company's audit report shows the same Hong Kong address as EcoSolution. ISCC certification of the Dutch supplier remains active, but the BLE also has "considerable doubts" about that company's existence. ISCC audit records show AEY Trading received ISCC 'trader with storage' certification on the same day as EcoSolution, also from Certi W Baltic. Certi W's audit summary shows AEY received an on-site audit on 8 September from the same auditor as EcoSolution. Any PoS issued by the suspended producer, which had been temporarily frozen, have been unblocked and will remain valid based on the 'protection of confidence' principle laid out in the German biofuels sustainability ordinance, which protects buyers in the biofuels market. To delete affected PoS that have been sold to others, the BLE would need to prove the buyer was aware of any fraud in relation to the product purchased. In practice this is "almost impossible", according to German biofuels association VDB. "The protection of confidence principle has become a free pass for lack of due diligence and care," the association said. "Today, European biofuels market participants do not have to worry about any consequences if they buy cheap biofuels with dubious origin." VDB wants urgent reform of the corresponding part of legislation, to grant the BLE more power when it comes to revoking fraudulent sustainability paperwork. PoS that has been re-released into the market could comprise a large amount of HVO, possibly in the hundreds of thousands of tons, according to market participants. By Sophie Barthel and Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

WEF, GenZero launch Asia-Pacific SAF initiative

05/05/25

WEF, GenZero launch Asia-Pacific SAF initiative

Singapore, 5 May (Argus) — The World Economic Forum (WEF) and Singaporean investment platform GenZero have jointly launched the Green Fuel Forward initiative to encourage demand for sustainable aviation fuel (SAF) in the Asia-Pacific region. WEF and GenZero — a subsidiary of state-owned investment firm Temasek — announced the launch during the GenZero Climate Summit 2025 in Singapore on 5 May. The initiative aims to scale the region's aviation decarbonisation infrastructure and demand for SAF. It plans to do this through initiatives such as workshops and practical guidance tools to help organisations navigate key topics like environmental integrity, book-and-claim systems, and reporting practices for SAF and SAF certificates. The initiative is expected to bring together airlines, logistics providers, and corporates operating in the region. Organisations including Air New Zealand, Boeing, DHL, the International Energy Agency (IEA), Neste, Qantas, Roundtable on Sustainable Biomaterials (RSBO) and Singapore Airlines have already agreed to participate. Airlines and organisations based in Asia-Pacific which are interested in procuring SAF and SAF certificates can participate in the initiative, said GenZero. By "mobilising corporates and airlines, we can create the certainty needed to spur innovation, scale production, and make lower-emission flights a reality", said GenZero's chief executive Frederick Teo. Finnish SAF producer Neste said it is "committed to contributing our expertise and resources to help scale SAF demand and production," while Singapore Airlines said it is a "useful platform to unite airlines and corporates in building shared demand". By Deborah Sun Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s election gives LNG, fuels sector certainty

05/05/25

Australia’s election gives LNG, fuels sector certainty

Sydney, 5 May (Argus) — Australia's governing Labor party's second majority term could mean that changes to the offshore permitting regime promised last year are signed into law, while east coast LNG businesses will avoid a planned reservation system proposed by the opposition. Labor's victory at the 3 May election combined with the election of fewer members from the Greens party and climate-focused independents, could mean it faces less pressure to cancel fossil fuel projects. But it will remain reliant on the Greens to pass laws through the nation's upper house — the senate — meaning Labor may need to negotiate the passage of bills with the leftist party if the Liberal-National-based coalition opposes its measures. The Greens ran on a promise to ban new coal, oil and gas projects but won fewer seats than in 2022 because of preference flows. A federal decision on the lifetime extension of the Woodside Energy-operated 14.4mn t/yr North West Shelf (NWS) LNG delayed by Labor, is now looking more positive for the firm. The firm sees approval as vital to progressing its Browse gas development offshore northwestern Australia. Voters' rejection of the opposition Coalition on the nation's east coast means its policy to reserve a further 50-100PJ (1.34bn-2.68bn m³/yr) from the Gladstone-based LNG exporters will not proceed. The result provides an opportunity for certainty and stability for the energy sector, upstream lobby Australian Energy Producers said. The group urged the government to focus on new supply as Australia's gas reserves for domestic use rapidly deplete. The government will need to specify exactly how it aims to secure supplies to ensure stable supply, once coal-fired generators retire at the end of the 2020s and into the 2030s. This is because the nation's integrated system plan is based on Labor's policy of reaching 82pc renewable energy in the power grid, backed up by about 15GW of gas-fired power. Industry will await further direction stemming from the Future Gas Strategy which canvassed solutions to Australia's declining gas supply including new pipelines, storage and seasonal LNG imports. Permitting concerns In the government's previous three-year term, a series of court-ordered requirements to consult with affected Aboriginal groups briefly disrupted multi-billion dollar LNG developments. Labor promised to specify through new laws exactly which groups must be consulted before approvals could be granted. But these were dropped from the agenda in early 2024 following opposition by the Greens. Labor's resources minister Madeleine King blamed the Greens for obstructionist manoeuvres on this legislation, but it remains unclear if and when Labor might introduce such laws. Conversely, the Coalition promised to end government support for anti-gas lobbies such as law group the Environmental Defenders Office — set to continue under Labor. In liquid fuels, Labor's victory should boost Australia's electric vehicle (EV) sales, with emissions standards laws set to remain enforced. The Coalition had said it would soften the laws because of concern over cost of living pressures. Plans to temporarily cut the fuel excise will also not progress. Australia's EV take-up has stalled, and industry has blamed this on poor investment in recharging infrastructure and other policy settings, including the removal of the fringe benefits tax exemption for plug-in hybrid car models. A re-elected Labor government is likely to further policy towards a mandate for sustainable aviation fuel or renewable diesel, given the growing share of Australia's emissions projected to come from the transport industry. It pledged A$250mn ($162mn) for low-carbon liquid fuels development in March , for low-carbon liquid fuels development in March, as part of its commitment to the nascent sector. Local market participants are optimistic that further biofuels support will be provided as urgency to meet net zero ambitions builds, including a 2030 target of 43pc lower emissions based on 2005 levels. About A$6bn/yr of feedstocks like canola, tallow and used cooking oil are exported from Australia, while existing ethanol and biodiesel producers are running underutilised plants, making about 175mn litres/yr at present, because of poorly-enforced blending mandates. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more