Maersk enters agreements to boost green methanol output

Spanish Market: Biofuels, Hydrogen, Oil products, Petrochemicals
10/03/22

Shipping line Maersk is forming partnerships with six companies to boost global capacity of green methanol and source at least 730,000 t/yr of the fuel by the end of 2025.

The six partners include Hong Kong-based CIMC ENRIC, Chinese Green Technology Bank (GTB), renewable energy company European Energy, Danish utility Orsted, methanol producer Proman and US-based methanol producer WasteFuel.

CIMC ENRIC will develop biomethanol projects for Maersk in China, with the first phase of the project scheduled to produce 50,000 t/yr of biomethanol from 2024 and the second phase expected to produce 200,000 t/yr with the start date to be determined. The fuel will be produced from agricultural residues and Maersk said it intends to offtake the full volume produced.

GTB will also facilitate the development of biomethanol projects in China, with the first planned to produce 50,000 t/yr from 2024 and the second planned to have a capacity to produce 300,000 t/yr at a start date to be determined.

WasteFuel is developing a biomethanol project in South America that will produce over 30,000 t/yr starting in 2024, with Maersk planning to offtake the full volume produced.

And Proman will supply Maersk with 100,000-150,000 t/yr of green methanol form its development facility in North America. The project will be built by Proman with a target start of operations in 2025, producing biomethanol from non-recyclable forestry residues and municipal solid waste.

European Energy will develop e-methanol projects in Latin America and the US and will have a capacity to produce up to 200,000-300,000 t/yr of the fuel starting in 2025-26. Orsted will also develop an e-methanol project in the US that will have capacity to produce 300,000 t/yr from 2025. Maersk intends to offtake the full volume produced by both companies. E-methanol is produced by combining renewable hydrogen from electrolysis with CO2 captured from industrial processes.

"With this production capacity, by the end of 2025 at the latest, Maersk will reach well beyond the green methanol needed for the first 12 green container vessels currently on order," the company said.

Maersk last year ordered the first methanol-fuelled container ship for delivery in mid-2023 and eight larger methanol-fuelled container ships for delivery in 2024.

By Giulia Squadrin

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10/03/25

Brazil ignores fossil fuel phase-out in Cop 30 letter

Sao Paulo, 10 March (Argus) — Climate activists praised Brazil's stance of making UN Cop 30 a "turning point" for real climate change commitments but criticized the presidency's letter for turning a blind eye to fossil fuels' leading role in global warming. The summit's president Andre Correa do Lago unveiled on Monday a letter addressing the event's goals and outlooks, which includes boosting climate financing to $1.3 trillion/yr from the target stipulated at Cop 29 of $300bn/yr. "Lago calls on foreign countries — especially the US — to leave individuality and irresponsibility behind in exchange for cooperation and our planet's future," scientist Karin Bruning — a graduate of the University of Heidelberg and the Massachusetts Institute of Technology — said. "However, the letter has no use if Brazil does not pull its own weight." Bruning recalled Brazilian president Luiz Inacio Lula da Silva's [public feud](http://direct.argusmedia.com/newsandanalysis/article/2657369 with the country's environmentalist watchdog Ibama regarding the exploration in Brazil's equatorial margin region. "A country with so much renewable energy available cannot look at past solutions such as exploring and pushing for fossil fuels," Bruning said. She also highlighted the importance of respecting technical and scientific decisions on matters such as oil exploration. Environmental concerns have always been at the center of the equatorial margin debate, as it stands near a freshwater barrier reef. State-controlled Petrobras has long been trying to explore the area's Foz do Amazonas basin — which holds an estimated 10bn bl of crude, according to energy research bureau Epe — but has struggled to receive the environment licenses to do so. Ibama last denied the company a request to drill in the area in May 2023. Brazilian climate think tank Observatorio do Clima called the letter "inspiring," but added that it "excludes the elephant in the room." It recognized the letter as a "relief for giving the Paris Agreement negotiations to professionals who understand the gravity of the moment" but bashed it for keeping fossil fuels' gradual stoppage out of Cop 30's priorities list. Still, Correa do Lago's letter was celebrated for recognizing "the scale of the challenge and the urgency of response," according to climate change think-tank E3G's associate director Kaysie Brown. Holding on to past pledges Previous Cop agreements and global stocktakes (GST) — a five-yearly checkpoint agreed upon in the 2015 Paris Agreement — were ignored and pushed back against in Baku's final text. Correa do Lago's letter focused on rolling back decisions regarding developing countries and increasing financing for them, which has long been one of the Brazilian government's priorities. This includes the climate financing target of $1.3 trillion. "We do have pending issues to solve at Cop 30, notably the UAE dialogue on implementing the GST outcomes and the just transition work programme," Correa do Lago said in his letter. "The GST is an invaluable legacy that unites us. We must all continue to subscribe to it as the ultimate benchmark for climate implementation." By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Vitol's Sarroch refinery crude receipts at 6-year high

10/03/25

Vitol's Sarroch refinery crude receipts at 6-year high

Barcelona, 10 March (Argus) — Crude receipts at refiner Saras' 300,000 b/d Sarroch refinery in Italy rose to a six-year high in February, with the plant receiving a trio of new grades in February-March. Receipts were close to 320,000 b/d last month compared with 205,000 b/d in January, according to Argus tracking. Receipts averaged 245,000 b/d in 2024, slightly lower than around 250,000 b/d in 2023. Saras had aimed for 265,000-270,000 b/d last year, without success. In the past decade the unit has consistently underperformed targets, not achieving much more than 260,000 b/d in a year. Former workers said the plant is unable to distill crude in excess of 285,000 b/d. After repeated issues and "technical hiccups" it was unable to run at that pace for extended periods, a problem shared with the large majority of its Mediterranean peers. But Saras appears to have been making efforts to improve availability with a string of planned maintenance programmes in the past 18 months. New owners, trading firm Vitol, may be keen to test the unit's capabilities. Vitol purchased the unit last year in a €1.7bn ($1.84bn) deal and appear to be introducing new grades. Sarroch took receipt of a first cargo of 28°API Guyanese grade Payara Gold in February, having in December sampled Senegal's Sangomar crude for the first time. Receipts in February comprised 125,000 b/d of Libyan crude, split between Amna, Bouri and Zueitina grades, 70,000 b/d of Angolan crude split between Palanca and Pazflor, 50,000 b/d of Azeri BTC Blend, 30,000 b/d of US WTI, 25,000 b/d of Caspian CPC Blend and 20,000 b/d of the Payara Gold. Argus assessed these at a weighted average gravity of 35.4°API and 0.5pc sulphur content, compared with 32.2°API and 0.7pc sulphur in January. The slate averaged an estimated 33.3°API and 0.8pc sulphur last year, almost identical to 2023. The pace of delivery in March appears good, with around 600,000 bl of BTC Blend unloaded. Twi further new grades for Sarroch were received in the form of 1mn bl of heavy sweet Meleck from Niger, and 735,000 bl of the re-branded Kazakh Urals grade, Kebco. Sarroch was not a major buyer of Urals, prior to the imposition of sanctions following the Russia-Ukraine conflict, and received its last Baltic-loaded Urals in April 2022 . A further 1mn bl each of Brazilian Frade and Libyan Attifel are on route. By Adam Porter Sarroch crude receipts mn bl Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US SAF projects will be protected: United Airlines

10/03/25

US SAF projects will be protected: United Airlines

Houston, 10 March (Argus) — US sustainable aviation fuel (SAF) projects will move forward despite the US administration pushing back against earlier legislation that supports renewables, the head of United Airlines said today. SAF has bipartisan support in Congress and at the state level and is likely to be protected, United chief executive Scott Kirby said at the CERAWeek by S&P Global conference in Houston, Texas. Electrification is not practical in large scale aviation and hydrogen has a different set of problems, leaving SAF as the better option, Kirby said. The US has provided strong incentives to develop SAF under laws passed during the administration of former-president Joe Biden and will likely produce enough to export to Europe to help that continent meet aggressive targets. US president Donald Trump issued an executive order upon taking office which paused all disbursements of funds appropriated through the Inflation Reduction Act (IRA) passed in 2022 and a complementary infrastructure law passed in 2021. The order called for ending the "Green New Deal", echoing language he used on the campaign trail when criticizing the IRA. Trump said the funding should be held back until federal agencies "review their processes, policies and programs for issuing grants, loans, contracts or any other financial disbursements" to ensure they fit with policy objectives. United announced in December that it agreed to buy SAF from Phillips 66's Rodeo facility in northern California as soon as the product came online. The airline inked a similar deal with Neste last year for SAF as it continues to take advantage of the Illinois SAF buyers' tax credit in supplying its major hub at Chicago's O'Hare International Airport. Other US independent refiners have recently announced that SAF projects are advancing. Specialty refiner Calumet said last month that a project to expand SAF production in Montana is moving forward after it received an initial $782mn loan from the US Department of Energy (DOE). The funding is the first portion of a $1.44bn loan from the DOE that will allow Calumet subsidiary Montana Renewables to expand operations at its Great Falls, Montana, biofuel plant. The loan was paused temporarily earlier this year as the Trump administration conducted a review to confirm "alignment with White House priorities." Another US independent refiner, Par Pacific, said it is seeing strong interest in its planned renewable fuels facility at its 94,000 b/d Kapolei, Hawaii, refinery. The $90mn project, which will produce SAF and other products, is on schedule to start up in the second-half of 2025, Par Pacific said. Meanwhile, US independent refiner Valero said recently that its project to produce up to 15,000 b/d of SAF at its refinery in Port Arthur, Texas, is fully operational. The project allows the plant, jointly owned with Diamond Green Diesel (DGD), to upgrade up to 50pc of its 31,000 b/d renewable diesel refining capacity to SAF. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tanker and cargo vessel collide in North Sea: Update

10/03/25

Tanker and cargo vessel collide in North Sea: Update

Adds details from tanker management London, 10 March (Argus) — An oil tanker and a container vessel are on fire in the UK North Sea after colliding earlier today, the UK coastguard said. Shiptracking data appear to show the US-flagged Medium Range (MR) tanker Stena Immaculate was at anchor when it was hit by Portuguese-flagged container vessel Solong. The Stena Immaculate's manager, US-based logistics company Crowley, said the incident resulted in a ruptured cargo tank containing jet fuel. It said all its employees on board are safe and accounted for. Market sources told Argus that the tanker was likely carrying jet fuel and diesel. Vortexa data show the tanker was on route to the UK's port of Immingham on the east coast of England, from the Greek port of Agioi Theodoroi. The Solong was plying a route from the east coast of Scotland to Rotterdam, according to vessel tracking data. "The incident remains ongoing and an assessment of the likely counter pollution response required is being enacted," the coastguard said. By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

German gasoil prices fall to December lows

10/03/25

German gasoil prices fall to December lows

Hamburg, 10 March (Argus) — Heating oil sales in Germany rose in the week to 9 March as prices fell after the US government announced tariffs against trading partners. Low water levels and strikes significantly restrict barge traffic on the Rhine river and in the canal region. The US government's announcement of tariffs on imports from Canada, Mexico, and China in the week ending 9 March caused uncertainty in markets and fueled fears of a slowdown in international trade. Ice gasoil futures fell to their lowest since the end of December, and German domestic prices did likewise. Falling prices revived heating oil demand, despite carnival celebrations in western Germany. Rising temperatures had previously subdued demand. Traded spot volumes reported to Argus rose by 35pc week on week. Diesel sales are less susceptible to price fluctuations. Volumes fell by 2.5pc nationwide after increased agricultural requirements had already boosted demand the previous week. Barge supplies are significantly restricted. Low Rhine water levels now limit the permissible cargo volume upstream from the Kaub gauge to about 55pc. This is reflected in correspondingly rising freight rates. Public sector employees are striking from March 10-12 at various locks on the Rhine-Herne Canal and the Wesel-Datteln Canal. The strike will lead to significant delays in the delivery to many tank farms and subsequent backlogs, shipowners said. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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