Malaysia postpones B20 biodiesel until December 2021

Spanish Market: Biofuels
11/01/21

Malaysia is delaying the rolling out of it 20pc biodiesel mandate (B20) in transport by six months as Covid-19 cases continue to hit record highs in the country.

B20 will now likely be introduced in Sabah state in June and the rest of the country in December, according to Malaysian Palm Oil Board director-general Ahmad Parveez Ghulam Kadir speaking at the virtual Palm Oil Economic Review and Outlook Conference 2021.

This is the second postponement to Kuala Lumpur's programme to lift the mandate from B10 because of the pandemic having pushed back the implementation in May to 1 January from 15 August in Sabah, although it still then planned to stick to its original June date for peninsular Malaysia.

The B20 mandate is expected to double domestic biodiesel consumption to around 1.06mn t/yr once fully realised.

By Amandeep Parmar

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19/03/25

UK study sets out Grangemouth's post-refining future

Edinburgh, 19 March (Argus) — A government-funded study has identified nine potential low-carbon and renewable options for the Grangemouth site in Scotland following the planned closure of its 150,000 b/d refinery in the second quarter this year. The nine possible projects outlined in the Project Willow study centre around waste, bio-feedstocks and industries supporting the development of offshore wind. They could benefit each other through synergies and create up to 800 direct jobs, but their success "will require significant contributions from both the public and private sector", with an initial £3.5bn ($4.5bn) in capital investments needed, the study said. The £1.5mn report, paid for by the UK and Scottish governments, was commissioned by Grangemouth refinery operator Petroineos, which announced in November 2023 that it was going to close the plant and convert it into a fuel import terminal. The UK and Scottish governments have since set aside £25mn and £200mn for Grangemouth, along with other initiatives such as Scotland's £100mn Falkirk and Grangemouth Growth Deal package. The study's 'waste' pathway comprises a hydrothermal plastic recycling project, a dissolution plastic recycling facility and a bio-refining project relying on bacterial fermentation (ABE). Under the 'bio-feedstock' pathway, the study envisages a second-generation bioethanol plant on Scottish timber feedstock and an anaerobic digestion facility using organic waste to produce biomethane. Second-generation bioethanol refers to ethanol made from non-edible resources such as biomass. This pathway also suggests a sustainable aviation fuel (SAF) plant, with production made from hydroprocessed esters and fatty acids (HEFA). UK trade union Unite has been supportive of this option , but Petroineos deemed it unviable "under current regulatory conditions". The third pathway — called conduit for offshore wind — is mostly focused on hydrogen. It includes fuel switching, producing jet from e-methanol and methanol as well as producing low-carbon ammonia for the shipping and chemicals industry. The second-generation ethanol plant and the HEFA facility, as well as the e-methanol and e-ammonia projects, would have a longer 2030-40 timeline, against a 2028-30 timeline for the other projects. The projects would benefit from existing infrastructure such as Grangemouth's port, which includes container, bulk and liquid fuel terminals. "There are also opportunities to reuse existing tank storage, ethanol facilities, and other ancillary assets at the site," the study said. Unite has criticised the study's project timelines, pointing out most would start years after the refinery had closed, by which time jobs would have been lost. Many of the projects "could be fast tracked and implemented now", including converting the refinery to SAF production, the union said. "Project Willow was created by Petroineos as a fig leaf to justify its act of industrial vandalism of shutting the refinery and axing jobs. It asked the wrong questions and then failed to provide the answers that Grangemouth refinery workers need," Unite general secretary Sharon Graham said. "There are projects like SAF production which can be swiftly enacted to protect jobs and those opportunities must not be lost. This would pave the way for the UK to become a world leader in green aviation." By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

NWE HVO paper trade at record high on mandates, policy

18/03/25

NWE HVO paper trade at record high on mandates, policy

London, 18 March (Argus) — Higher mandates and policy changes are poised to continue to support Northwest Europe HVO paper market liquidity, after a record high of 42,000t of hydrotreated vegetable oil (HVO) Class II Ice futures contracts was traded on 14 March. HVO Class II fob ARA trading activity on the Intercontinental Exchange (Ice) rose as European fuel suppliers increasingly seek renewable diesel made from used cooking oil (UCO) to meet higher mandates and overcome the 7pc restriction for blending conventional methyl ester biodiesel into diesel. The total traded volume for the first two weeks of March (1-14) was 120,000t, close to the previous full-month high in January of 138,000t (see chart). The Ice contract — a cash-settled future that settles based on Argus spot price assessments — launched in 2022 as both a differential to Ice low sulphur gasoil and outright, with the former most commonly traded. Physical HVO interest has been more measured through the beginning of 2025, although spot trade rose year on year. Changes to key biofuels policies in Germany and the Netherlands are expected to support overall demand and anticipation of this has supported HVO paper liquidity. Germany has paused the carryover of surplus tickets that would otherwise go towards meeting its greenhouse gas (GHG) savings quota, meaning obligated parties will have to use more physical biofuels to meet mandates, while the Netherlands has limited the amount of tickets allowed to be carried from year to year, driving a similar dynamic. The start of the year is often a slower physical trading period in northwest Europe as market participants look to finish off compliance submissions for the previous year. Anticipating changes to ticket carryover policies, some physical biofuels were stored in tank to be used at the start of the year, particularly in Germany, suppressing prompt demand. Class II HVO has also been affected by high feedstock prices, which have pressured production margins, and strong imports from east of Suez. Ticket values in Germany and the Netherlands have been below the equivalent cost of blending physical Class II HVO, further limiting demand. In the Dutch market HBE-IXB prices have been pressured by supply of UCO-based sustainable aviation fuel (SAF) blends, which generate 2.4 HBEs per GJ as per the biofuel portion, while German ticket prices have been affected by lower diesel demand and a focus on finishing off 2024 balances. The prompt/front-month price spread for Class II, which gives an indication of the prompt market's strength or weakness, has been volatile for the past month according to Argus assessments (see chart). The spread flipped into contango for the first week of March following a supply surge which weighed on European prices , then returned to backwardation as HVO prices tracked UCO and UCO-based biodiesel prices higher. Prompt UCO prices have in turn been supported by tighter global supply following a protracted export ban from Indonesia, which is still expected to be temporary, contributing to the forward curve backwardation. HVO paper trading on 14 March focused on the upcoming three months. An April/May spread traded at $10/t ($1,055/t, $1,045/t) for 5,000t/month, or 10,000t total, a May/June spread traded at $5/t ($1,045/t, $1,040/t) for 13,000t/month, or 26,000t total, and a second quarter contract traded at $1,065/t for 2,000t/month, or 6,000t total. All of the trades were as premiums to front-month Ice gasoil. By Simone Burgin HVO Class II AOM and Ice monthly totals t HVO Class II fob ARA range prompt and month 1 t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan's JAL, Airbus join Japanese biofuel joint venture

18/03/25

Japan's JAL, Airbus join Japanese biofuel joint venture

Tokyo, 18 March (Argus) — Japan Airlines (JAL) and European aircraft manufacturer Airbus have joined a Japanese joint venture to produce bioethanol from domestic woody material, for use as a feedstock for sustainable aviation fuel (SAF). Joining the project will help JAL meet its target of replacing 10pc of its conventional jet fuel with SAF by 2030, JAL announced on 17 March. It will also help Airbus to achieve its net zero emissions goal by 2050. JAL will build supply chains of biofuel to support the project, and Airbus will help obtain international certification for the woody material-based fuel as SAF. The project was originally proposed in February 2023 by Japanese paper producer Nippon Paper Industries, trading house Sumitomo and domestic biorefinery venture Green Earth Institute. The companies agreed in February 2025 to set up a joint venture, Morisora Bio Refinery , to push forward with a plan to develop domestic SAF supply chains. The companies plan to launch the joint venture in March and start producing bioethanol from local wood chips at Nippon Paper's Iwanuma Mill in the country's northeastern Miyagi prefecture in 2027. Commercial operations are scheduled to begin by around 2030. Morisora will supply bioethanol mainly for SAF production, with expectations that it will be also used in gasoline blending, fuel cells, cosmetics and chemical feedstock. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK launches anti-dumping probe into US-origin HVO

17/03/25

UK launches anti-dumping probe into US-origin HVO

London, 17 March (Argus) — The UK today began an anti-dumping investigation into hydrotreated vegetable oil (HVO) from the US. An application for the investigation was lodged by the UK Renewable Transport Fuel Association (RTFA) and UK-based biofuels producers Greenergy, Argent Energy and Olleco. The goods subject to investigation are "biodiesel obtained from synthesis or hydrotreatment of oils and fats of non-fossil origin, in pure form or as included in a blend". The UK trade remedies authority (TRA) specified that sustainable aviation fuel (SAF) is excluded from this definition. The investigation period spans from 1 January 2024 to 31 December 2024. During this time, the applicants allege HVO was imported into the UK at prices below the "normal value". They say this alleged dumping led to an actual and potential decline in production, domestic sales, and profitability. The UK removed transposed EU anti-dumping and countervailing duties on imports of HVO from the US and Canada in 2022. The EU first imposed anti-dumping duties for US-origin HVO in 2009 , and the current duties are in place until August 2026. Those in the market said the effect of the UK investigation is being mitigated by proposed guidance on the US 45Z clean fuel production credits released earlier this year. This has already slowed discussions around new imports of US-origin HVO into T1 duty markets. The guidance does not allow US producers to claim the tax credit using imported used cooking oil (UCO), meaning US supply of UCO-based HVO could decrease or be reserved for the domestic market, participants said. HVO, or renewable diesel, is a drop-in biofuel that can go well beyond the European 7pc blend wall for biodiesel. UK HVO consumption increased by 38pc on the year in 2024 to 699mn l, according to the latest provisional release of UK Renewable Transport Fuel Obligation statistics . This was mostly due to increased imports of US-origin HVO, according to market participants. Interested parties must register by 1 April, after which they will be able to submit comments. The TRA aims to make a final recommendation in March 2026. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Açúcar: Mudança tributária abre espaço diplomático

13/03/25

Açúcar: Mudança tributária abre espaço diplomático

Sao Paulo, 13 March (Argus) — A isenção das importações de açúcar no Brasil é avaliada como uma tentativa de demonstrar aos Estados Unidos disposição em realizar acordos comerciais com o país, após o governo norte-americano sinalizar a possibilidade de aumentar as tarifas sobre alguns produtos brasileiros . Ao retirar as tarifas sobre o açúcar, o Brasil abre espaço para negociar a possibilidade de manutenção das tarifas de etanol, de acordo com Renato Cunha, presidente da Associação dos Produtores de Açúcar, Etanol e Bioenergia das regiões Norte e Nordeste (NovaBio). Etanol e açúcar são mercados correlatos no Brasil e as negociações dos dois costumam estar interligadas. Ambos são derivados da cana-de-açúcar e a produção de um produto ocorre em detrimento do outro. O governo brasileiro anunciou em 6 de março a eliminação dos impostos para importações de itens considerados essenciais, como o açúcar, milho, azeite, café e óleo de soja, com o intuito de reduzir os preços dos alimentos, em meio à aceleração da inflação. No caso do açúcar, o efeito sobre a inflação tende a ser limitado. O Brasil – maior produtor e exportador mundial de açúcar – é autossuficiente na produção do adoçante e as importações representam volumes mínimos no mercado. O Brasil exportou cerca de 33,5 milhões de t em 2024, alta de 23,8pc em comparação com 2023, a partir de uma produção de 42,4 milhões de t na safra 2023-24, de acordo com a Unica. Vantagens competitivas do açúcar brasileiro Mesmo que a isenção de tarifas para importar açúcar – que antes eram de até 14pc – facilite a abertura de novos mercados e crie eventuais oportunidades para os consumidores brasileiros, o produto nacional ainda é mais barato, pelos custos de produção mais baixos em relação a outros países. Os custos para produzir açúcar no Brasil são de aproximadamente 15¢/lb (equivalente a R$1,92/kg), enquanto na Tailândia – segundo maior exportador de açúcar – eles estão próximos de 21,5¢/lb, segundo participantes de mercado. Na Índia e Austrália, terceiro e quarto maiores exportadores, os custos são de aproximadamente 22,4¢/lb e 18,3¢/lb, respectivamente. Para que haja uma redução efetiva dos preços do açúcar, é necessária uma revisão nos custos de toda a cadeia produtiva até as gôndolas do mercado, disse José Guilherme Nogueira, presidente da Organização de Associações de Produtores de Cana do Brasil (Orplana). Para Nogueira, é importante se atentar a fatores além da produção, como custos de frete e seguro, áreas passíveis de atuação do governo. Como a produção é suficiente para o consumo nacional e há um grande volume excedente, o açúcar brasileiro acaba sendo majoritariamente exportado, sem o mercado externo representar efetivamente uma concorrência para o consumidor brasileiro. O preço do açúcar cristal branco registrou uma média de R$155,3/ saca de 50kg em janeiro - ou $24,9/sc na paridade de exportação, com a cotação média do dólar norte-americano a R$6,02 – segundo o indicador do Centro de Estudos Avançados em Economia Aplicada (CEPEA/Esalq). Em janeiro de 2024, os preços no mercado nacional estavam R$145,04/sc, em média, e $29,5/sc, considerando uma taxa cambial média de R$4,91. Isso mostra que mesmo com o dólar mais alto neste ano, o mercado doméstico de açúcar segue remunerando mais que o mercado externo, em comparação com o mesmo período no ano passado. Por Maria Albuquerque Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2025. Argus Media group . Todos os direitos reservados.

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