'Groundbreaking' biofuels bill enters final stages: VDB

Spanish Market: Biofuels, Oil products
19/05/21

The environment committee of the German parliament, the Bundestag, agreed today on a final draft law aimed to transpose the recast of the Renewable Energy Directive (RED II), the country's biofuels industry association VDB said today.

The bill, which will be submitted in tomorrow's concluding proceedings in parliament, sees the German greenhouse gas (GHG) emission reduction quota increase to 7pc in 2022, from currently 6pc. It will then continuously rise between 1pc and 1.5pc until 2027, when blending mandate reaches 14.5pc. In 2028, the quota is planned to increase to 17.5pc, before rising to 25pc in 2030, according to VDB.

The new bill is a "groundbreaking decision for more climate protection in traffic" and "strengthens industry and agriculture in Germany", VDB managing director Elmar Baumann said today.

The draft law incorporates a more even rise of the emission reduction requirements for fuel suppliers than the original bill submitted by the German government. It takes into account the latest ruling of Germany's federal constitutional court, which called the country's climate protection law partly unconstitutional.

VDB said that under the new draft law, obligated parties shall not be able to count palm oil-based biodiesel towards the GHG quota from 2023 onwards with palm oil considered as a biofuel feedstock with a high risk of indirect land use change (ILUC). Biodiesel made from advanced feedstock palm oil mill effluent (POME) shall only be single- instead of double-counted.

The draft further introduces the possibility to co-processing - the simultaneous conversion of renewable and fossil feedstock – of advanced feedstocks listed in Annex IX part A of RED II.

The use of upstream emission reduction (UER) projects which generate GHG savings in the stages before feedstock reaches a refinery or storage facility shall continue until 2026, according to the association.

The bill does not allow denatured ethanol to be counted towards the blending mandate to avoid weakening the domestic ethanol industry and to reduce import pressure from countries such as the US and Brazil, VDB said.

The possibility of green hydrogen produced from biogenic feedstock to be counted towards the quota shall be revisited from 2026 onwards. The current draft only allows green hydrogen made from non-biogenic sources to be counted towards Germany's GHG quota.

By Sophie Barthel

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12/03/25

Northwest European renewable fuel ticket prices rise

London, 12 March (Argus) — The price of renewable fuel tickets in the UK and the Netherlands has firmed in recent trading sessions, but tickets remain a more competitive option to comply with domestic renewable fuel mandates than physical biofuels blending. Tickets are tradeable credits primarily generated by the sale of biofuel-blended fuels and are used to help obligated parties meet mandates for the use of renewable energy in transport. In the Netherlands, "other" and advanced renewable fuel units (HBE-Os and HBE-Gs) hit a more than three-week high of €11.10/GJ on 6 March, while in the UK, non-crop renewable transport fuel certificates (RTFCs) reached 26.25 pence/RTFC on 5 March, the highest level since 29 January. Despite the increase, RTFCs are at a discount to the like-for-like blend value of used cooking oil methyl esther (Ucome) biodiesel and hydrotreated vegetable oil (HVO) Class II ( see graph ). And in the Netherlands, HBE-Gs remain well below the like-for-like blend value of palm oil mill effluent (Pome) oil-based HVO (Class IV). This typically discourages obligated parties to physically blend biofuels. Biodiesel and HVO prices increased on higher feedstock costs, market participants said. The premiums of HVO Class II and IV against the HVO-escalated 7-28 day Ice gasoil price reached $800/m³ and $785/m³, respectively, on 7 March, the highest since 12 February. Meanwhile, the Argus Ucome biodiesel fob ARA price rose to $1,453.24/t on 4 March, its highest since 3 December. And last week, the Argus UCO fob ARA assessment hit its highest level since October 2022, driven by low supply in the ARA region and a stronger euro against the US dollar. A closed arbitrage with China, Europe's biggest importer of UCO, is putting further pressure on supply in the region, market participants said. UCO trade flows shifted away from Europe last year as significant amounts of Chinese product moved to the US at the expense of flows elsewhere. But there may be some relief for European buyers in 2025 as US buyers wait for clarity on the Inflation Reduction Act's carbon intensity-based 45Z credit. President Donald Trump's doubling of pre-existing tariffs on Chinese imports to the US to 20pc is yet to have an impact on the European market, although participants said it could put a ceiling on further price gains. SAF blending pressures HBE-IXBs HBE-IXB tickets — generated by blending biofuels made from feedstocks listed in Annex IX part B of the EU's Renewable Energy Directive — have been moving in the opposite direction. The Argus Netherlands HBE-IXB price softened to its lowest since October last year on 13 February, at €9.50/GJ (see graph) . It has since risen slightly, reaching €9.75/GJ on 11 March. The tickets are under pressure from stronger supply as some are being offered by sustainable aviation fuel (SAF) blenders, market participants said. Biofuels in aviation benefit from a 1.2x multiplier, in addition to the double counting rule for waste feedstocks. An EU-wide SAF mandate — ReFuelEU — came into effect on 1 January, replacing national obligations. Under the mandate, fuel suppliers will need to include 2pc SAF in their jet fuel deliveries in 2025, rising to 6pc in 2030. UCO-based hydrotreated esters and fatty acids synthesised paraffinic kerosine (HEFA-SPK) is the most common type of SAF available today. In the Netherlands, blending HEFA-SPK SAF into jet fuel can generate HBE-IXBs. But the Dutch ministry of infrastructure is consulting on its second draft to transpose the recast RED III . If the current draft is implemented, the Netherlands will introduce greenhouse gas (GHG) emissions reduction mandates from 2026 for land, inland shipping and maritime shipping. The first draft also included an aviation subcategory, but it was removed in February . GHG-quota by blending less lucrative in Germany The increase in biodiesel and HVO prices in the ARA region has not had an impact on German GHG certificates. Buying GHG certificates remains more cost effective than physical blending for fuel suppliers. But market participants anticipate prices rising from the end of March, which could reverse this trend. Overall blending in Germany is expected to increase this year to generate new GHG tickets, after carry-over was frozen, forcing producers to build their GHG balance from scratch in order to fulfil their 2025 quotas. Many market participants remain focused on their 2024 balance for now, and demand for advanced biofuels and HVO in Germany has been slow so far this year. By Evelina Lungu Ucome and HVO Class II versus RTFCs p/litre Advanced FAME 0 versus German €/t CO2e Ucome and HVO Class II versus HBE-IXB €/GJ HVO Class IV versus HBE-G €/GJ Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Chevron to produce Group III+ base oils in US

12/03/25

Chevron to produce Group III+ base oils in US

London, 12 March (Argus) — Chevron said it will begin Group III+ base oils production in the US, becoming the first domestic producer of these grades in North America. The Group III+, named NEXBASE 4 XP, will be produced at Chevron's 25,000 b/d base oils plant in Pascagoula, Mississippi, from the fourth quarter of 2026. Chevron will join Malaysian state-owned Petronas and South Korean Producer SK Enmove as the only global producers of Group III+, and could compete with these for market share in North America. "NEXBASE 4 XP will be globally available, starting with hubs across Europe, which will help customers optimise supply logistics and costs," said Chevron base oils general manager Alicia Logan. Use of Group III+ base oils in premium grade lubricants is rising as equipment manufacturers seek to meet the latest engine approvals. The new production will add to Chevron's portfolio of Group II, Group II+ and Group III base oils. Chevron in 2022 acquired Finish refiner Neste's Group III business , including 250,000 t/yr of Group III nameplate capacity from Finland's 197,000 b/d Porvoo refinery and 180,000 t/yr or 45pc of base oil nameplate capacity from Bahrain's 262,000 b/d Sitra refinery through a joint-venture agreement with Bapco. By Gabriella Twining Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil refinery to produce fuel from eucalypt

11/03/25

Brazil refinery to produce fuel from eucalypt

Sao Paulo, 11 March (Argus) — Petrobras-controlled Riograndense refinery successfully conclude tests to produce fuels from eucalyptus biomass in Brazil's southern Rio Grande do Sul state. The refinery used a bio-oil from eucalyptus biomass and converted it in fractions of fuel gas, LPG, components to produce gasoline and marine fuel with renewable content and others. The bio-oil came from industrial company Vallourec's forest unit in southeastern Minas Gerais state. The test reveals the possibility of using wood and other forestry residues as feedstocks for products usually coming from a fossil origin, said Petrobras's technology, engineer and innovation director Renata Baruzzi. Petrobras intends to transform Riograndense refinery into the first oil plant to produce 100pc renewable fuels in the world, according to Petrobras' chief executive Magda Chambriard. The efforts are part of Petrobras' BioRefino program, which will invest almost $1.5bn to generate sustainable fuels as of 2029. Riograndense refinery is also controlled by Brazilian companies Ultra Group and Braskem petrochemical. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU consults on decarbonisation, clean tech aid

11/03/25

EU consults on decarbonisation, clean tech aid

Brussels, 11 March (Argus) — The European Commission has opened a consultation on updates to its state aid rules, which aim to take into account the bloc's proposed clean industrial deal — designed to simplify and speed decarbonisation. The commission is aiming to publish the rules in June, following input from EU states. The updated state aid rules would then apply to how the commission decides on EU states' financing of projects up until the end of 2030. The draft provides for member states' simplified tender procedures for renewables and energy storage. The commission specifically notes the possibility of granting aid without tender for less mature technologies, such as renewable hydrogen. There would also be more flexibility for EU states aiding industrial decarbonisation, with a choice of tender-based schemes, direct support and new limits for very large projects. The commission lists batteries, solar panels, wind turbines, heat-pumps, electrolysers and carbon capture usage and storage among clean technologies that can be supported, as well as their key components and critical raw materials. Officials note the possibility of EU countries de-risking private investment. The rules, when adopted, would also allow for investment in storage for renewable fuels of non-biological origin (RFNBOs), biofuels, bioliquids, biogas, biomethane, and biomass fuels as long as they obtain at least 75pc of their content from a directly connected and related production facility. Aid can only be granted for biofuels, biogas, and biomass fuel production if compliant with the bloc's renewables directive. While the rules for biofuels are not new, they do reflect the wider scope of aid now foreseen by the commission. And officials say the rules allow for projects in the EU to receive aid from a member state if a comparably project would receive aid in a third country. The commission released its proposed clean industrial deal in late February . The deal targets a simplification of rules, to allow EU member states to aid industrial decarbonisation, renewables rollout, clean tech manufacturing and de-risking private investments. Today's consultation runs until 25 April. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to declare power 'emergency' in some states

11/03/25

Trump to declare power 'emergency' in some states

Washington, 11 March (Argus) — President Donald Trump said today he intends to declare a "National Emergency on Electricity" in states that could be affected by Ontario's imposition of a 25pc surcharge on electricity exports and further threat to cut off exports entirely. The emergency declaration will allow the US to alleviate the "abusive threat" from losing electricity imports from Canada, Trump wrote in a post on social media. Trump said in response to the surcharge, he would double existing tariffs on Canadian steel and aluminum , and warned Canada that it would pay a high cost if Ontario cuts off the flow of electricity to the US. "Can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat?" Trump wrote. "They will pay a financial price for this so big that it will be read about in History Books for many years to come!" On Monday, Ontario put a 25pc fee on its electricity exports to New York, Michigan and Minnesota in response to Trump's tariffs on Canada. Ontario premier Doug Ford said he was applying "maximum pressure" on the US over its tariff war, and threatened to cut off exports entirely if Trump increased tariffs further. Ontario was the largest exporter of electricity to the US in 2023, sending 15.2 TWh to the US. Trump already declared a national energy emergency on 20 January, unlocking emergency authorities to fast-track permitting and seek to retain production of baseload power plants. Trump has yet to offer more details on the electricity emergency, but the US Department of Energy (DOE) can issue emergency orders that would allow power plants to run at maximum capacity or waive some environmental regulations. DOE did not immediately respond to a request for comment. The New York Independent System Operator, which runs the state's electric grid, said it was analyzing the effects of Ontario's orders and expects to have "adequate reserves to meet reliability criteria and forecast demand for New York." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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