EU biodiesel industry concerned on import labelling

Spanish Market: Biofuels
27/03/23

European producers and traders of biodiesel say Chinese product entering the EU is being wrongly labelled as an 'advanced' biofuel, and sold into Germany where it is counted twice towards emissions savings targets in transport. This, they say, is having multiple effects on supply-demand balances and prices.

Advanced liquid or gaseous biofuels — those produced from feedstock listed in Annex IX Part A of the EU Renewable Energy Directive (RED II) — are mandated in Germany and are permitted to count twice towards the country's greenhouse gas (GHG) reduction target for transport fuels, once a baseline target of 0.3pc by energy content has been met. The domestic advanced biofuels target will rise to 2.6pc by 2030.

Suppliers of biodiesel to Germany told Argus they are seeing offers for advanced biodiesel made from feedstocks such as sludge from food production waste, acid oils from soap stocks and palm oil mill effluent (Pome). They say the amount being shipped in bulk from China is far in excess of what can reasonably be available for export.

A European producer said that between 130,000-150,000t of such product is being sent to Europe each month.

"This has a brutal effect on the whole market," the producer said. "Advanced product counted against the [German] quota allows blenders to use smaller amounts of biodiesel to reach their targets. This destroys our market here and makes it impossible to produce and trade."

Chinese customs data, which groups all fatty acid methyl ester (Fame) biodiesels together, show a significant rise in exports destined for Europe. Biodiesel exports more than doubled on the year to 455,000t in January-February and the vast majority this made its way to the Netherlands from where it will be redistributed within Europe.

The European producer said that with most product recently offered out of China having a cold filter plugging point (CFPP) of +10°C — the sort of warmer weather grade now in favour ahead of the summer months — "there is little choice but to participate in the flow if [companies] want to stay afloat."

The European Waste-based & Advanced Biofuels Association (Ewaba) said it is treating reports relating to these concerns "as a matter of high priority" given they are "creating worrying conditions for our members."

"We are taking different steps involving certification schemes and customs authorities and if any dubious practice is identified we are confident it will stop shortly," it told Argus.

Germany's federal office for agriculture and food (BLE) told Argus that while it is responsible in Germany for the implementation of the sustainability criteria of RED II in sustainability regulations, the responsibility for monitoring and controlling cultivation, supply and production chain rested with independent certification systems and bodies, which are previously recognised and then monitored.

Knock-on price shocks hit EU producers

This influx of advanced biofuels has weighed on German greenhouse gas (GHG) emission reduction certificate prices. These are used by companies that bring liquid or gaseous fossil fuels into general circulation and are obligated to pay excise duty or energy tax on those fuels. Also known as tickets, the tradeable certificates are primarily generated by blending renewable fuels into fossil fuels.

The Argus price for advanced double-counting GHG certificates, which are generated by blending advanced biofuels excluding Pome, fell by 51pc from the end of 2022 to €430/t CO2e on 24 March. Tickets generated by blending biofuels made from Pome declined in that time by the same value share, to €218/t CO2e.

In physical terms, losses to spot prices for biodiesel produced from used cooking oil (Ucome) since the start of the year have led to reduced runs in Europe, as producers contend with negative margins given higher supply of competitively priced advanced grades from outside the EU.

The Argus Ucome fob ARA range spot price declined by close to 30pc from the last trading day of 2022 to a near 29-month low of $1,176/t on 22 March, before rebounding slightly. Suppliers to Germany have sold Ucome stocks into other European markets given the lack of domestic demand.

Rising targets rely on feedstock availability

There no confirmed release date for 2022 data for German biofuels consumption, BLE told Argus. In 2021, the most common source of advanced biofuels was the biomass fraction of industrial waste typically used to produce biomethane, followed by Pome used to produce biodiesel or hydrotreated vegetable oil (HVO).

Pome is excluded from the double-counting incentive but its use is not capped. Argus estimates global availability of Pome at just over 760,000t in 2023, with more than 680,000t of this from Asia-Pacific.

Argus estimates availability of acid oils from soap stock at a little more than 2mn t in 2023, with just over 900,000t in Asia-Pacific. These are based on assumptions about vegetable oil production, chemical refining shares and free fatty acid (FFA) content.

Estimated global used cooking oil (UCO) availability is 9.4.mn t, of which Asia-Pacific represents close to 5.7mn t. UCO falls under Annex IX Part B of RED II, as do waste animal fats (Tallow categories 1 and 2), for which estimated availability is just under 700,000t in Europe this year. Germany caps the energetic share of biodiesel from Part B feedstocks at 1.9pc to 2030 and there is no double counting.

Germany recently revisited a potential ban on crop-biofuels. The environment ministry plans to submit a draft law to ban the use of biofuels from crop and feed "as soon as possible", minister Steffi Lemke said in January. The cap on crop-based biofuels used to fulfil Germany's GHG quota is 4.4pc in energy terms.

German biofuels association VDB has said ethanol producers mostly use grain that is unsuitable for the food sector, and biodiesel producers have already cut back output in favour of food production.

Germany's greenhouse gas (GHG) reduction target for 2023 is 8pc.

By John Houghton-Brown

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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.

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.

New tariffs could upend US tallow imports

03/04/25

New tariffs could upend US tallow imports

New York, 3 April (Argus) — New US tariffs on nearly all foreign products could deter further imports of beef tallow, a fast-rising biofuel feedstock and food ingredient that had until now largely evaded President Donald Trump's efforts to reshape global trade. Tallow was the most used feedstock for US biomass-based diesel production in January for the first month ever, with consumption by pound rising month to month despite sharp declines in actual biorefining and in use of competing feedstocks. The beef byproduct benefits from US policies, including a new federal tax credit known as "45Z", that offer greater subsidies to fuel derived from waste than fuel derived from first-generation crops. Much of that tallow is sourced domestically, but the US also imported more than 880,000t of tallow last year, up 29pc from just two years earlier. The majority of those imports last year came from Brazil, which until now has faced a small 0.43¢/kg (19.5¢/lb) tariff, and from Australia, which was exempt from any tallow-specific tariffs under a free trade agreement with US. But starting on 5 April, both countries will be subject to at least the new 10pc charge on foreign imports. There are some carveouts from tariffs for certain energy products, but animal fats are not included. Some other major suppliers — like Argentina, Uruguay, and New Zealand — will soon have new tariffs in place too, although tallow from Canada is for now unaffected because it is covered by the US-Mexico-Canada free trade agreement. Brazil tallow shipments to the US totaled around 300,000t in 2024, marking an all-time high, but tallow shipments during the fourth quarter of 2024 fell under the 2023 levels as uncertainty about future tax policy slowed buying interest. Feedstock demand in general in the US has remained muted to start this year because of poor biofuel production margins, and that has extended to global tallow flows. Tallow suppliers in Brazil for instance were already experiencing decreased interest from US producers before tariffs. Brazil tallow prices for export last closed at $1,080/t on 28 March, rising about 4pc year-to-date amid support from the 45Z guidance and aid from Brazil's growing biodiesel industry, which is paying a hefty premium for tallow compared to exports. While the large majority of Brazilian tallow exports end up in the US, Australian suppliers have more flexibility and could send more volume to Singapore instead if tariffs deter US buyers. Export prices out of Australia peaked this year at $1,185/t on 4 March but have since trended lower to last close at $1,050/t on 1 April. In general, market participants say international tallow suppliers would have to drop offers to keep trade flows intact. Other policy shifts affect flows Even as US farm groups clamored for more muscular foreign feedstock limits over much of the last year, tallow had until now largely dodged any significant restrictions. Recent US guidance around 45Z treats all tallow, whether produced in the US or shipped long distances to reach the US, the same. Other foreign feedstocks were treated more harshly, with the same guidance providing no pathway at all for road fuels from foreign used cooking oil and also pinning the carbon intensity of canola oil — largely from Canada — as generally too high to claim any subsidy. But tariffs on major suppliers of tallow to the US, and the threat of additional charges if countries retaliate, could give refiners pause. Demand could rise for domestic animal fats or alternatively for domestic vegetable oils that can also be refined into fuel, especially if retaliatory tariffs cut off global markets for US farm products like soybean oil. There is also risk if Republicans in the Trump administration or Congress reshape rules around 45Z to penalize foreign feedstocks. At the same time, a minimum 10pc charge for tallow outside North America is a more manageable price to pay compared to other feedstocks — including a collection of charges amounting to a possible 69.5pc tax on Chinese used cooking oil. And if the US sets biofuel blend mandates as high as some oil and farm groups are pushing , strong demand could leave producers with little choice but to continue importing at least some feedstock from abroad to continue making fuel. Not all US renewable diesel producers will be equally impacted by tariffs either. Diamond Green Diesel operates Gulf Coast biorefineries in foreign-trade zones, which allow companies to avoid tariffs on foreign inputs for products that are ultimately exported. Biofuel producers in these zones could theoretically refine foreign tallow, claim a 45Z subsidy, and avoid feedstock tariffs as long as they ship the fuel abroad. Jurisdictions like the EU and UK, where sustainable aviation fuel mandates took effect this year, are attractive destinations. And there is still strong demand from the US food sector, with edible tallow prices in Chicago up 18pc so far this year. Trump allies, including his top health official, have pushed tallow as an alternative to seed oils. By Cole Martin and Jamuna Gautam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Funding cuts could delay US river lock renovations

03/04/25

Funding cuts could delay US river lock renovations

Houston, 3 April (Argus) — The US Army Corps of Engineers (Corps) will have to choose between various lock reconstruction and waterway projects for its annual construction plan after its funding was cut earlier this year. Last year Congress allowed the Corps to use $800mn from unspent infrastructure funds for other waterways projects. But when Congress passed a continuing resolutions for this year's budget they effectively removed that $800mn from what was a $2.6bn annual budget for lock reconstruction and waterways projects. This means a construction plan that must be sent to Congress by 14 May can only include $1.8bn in spending. No specific projects were allocated funding by Congress, allowing the Corps the final say on what projects it pursues under the new budget. River industry trade group Waterways Council said its top priority is for the Corps to provide a combined $205mn for work at the Montgomery lock in Pennsylvania on the Ohio River and Chickamauga lock in Tennesee on the Tennessee River since they are the nearest to completion and could become more expensive if further delayed. There are seven active navigation construction projects expected to take precedent, including the following: the Chickamauga and Kentucky Locks on the Tennessee River; Locks 2-4 on the Monongahela River; the Three Rivers project on the Arkansas River; the LaGrange Lock and Lock 25 on the Illinois River; and the Montgomery Lock on the Ohio River. There are three other locks in Texas, Pennsylvania and Illinois that are in the active design phase (see map) . By Meghan Yoyotte Corps active construction projects 2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Prio supplies B100 for bunkering in Portugal

03/04/25

Prio supplies B100 for bunkering in Portugal

Sao Paulo, 3 April (Argus) — Portuguese biodiesel supplier Prio has supplied B100 marine biodiesel and fixed contracts for the supply pure hydrotreated vegetable oil (HVO) into marine for the first time in Portugal. The bunker fuel delivery comprising 30t of 100pc used cooking oil methyl ester (Ucome) biodiesel took place in the Portuguese port of Viana do Castelo to the ferry Lobo Marinho and the containership Funchalense V , both owned by Grupo Sousa. Prio said the B100 supply achieved an emission intensity value of about 11.4 gCO2e/MJ, reflecting greenhouse gas (GHG) savings of about 88pc against a default fossil bunker value. The company also fixed summer-season March-July contracts with a cruise liner for the supply of 175t of Class II HVO at the port of Lisbon. This fuel is produced from used cooking oil (UCO). The B100 and HVO supplies are done on an ex-truck delivery basis. Marine biodiesel is seen as an alternative to conventional bunker fuels since the introduction of FuelEU Maritime regulations starting this year, which require ships traveling in, out, and within EU territorial waters to reduce GHG emissions by 2pc on a lifecycle basis and increasing up to 80pc by 2050. Argus assessed the price of Class II HVO fob ARA at an average of $1,795.13/t in the first quarter of this year, compared with $1,431.46/t for Ucome fob ARA in the same time in 2024. Both biofuels were marked well above conventional bunker fuel prices. Very-low sulphur fuel oil (VLSFO) dob ARA averaged $515.56/t and marine gasoil (MGO) dob ARA was $655.37/t during January-March this year. By Hussein Al-Khalisy and Natália Coelho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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