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Hawaii refines LCFS ambitions

  • Spanish Market: Biofuels, Emissions, Oil products
  • 16/02/24

Hawaii would seek to slash the carbon intensity of the islands' road fuels by 50pc in 20 years under a proposed low-carbon fuel standard (LCFS) lawmakers advanced in the state legislature.

The proposal would establish by 2026 an LCFS cutting transportation fuel carbon intensity by 10pc by 2035 and 50pc by 2045 under a proposal approved by a state House of Representatives committee last week. Detailed language of the legislation became available late yesterday.

LCFS programs require yearly reductions in a jurisdiction's transportation fuel carbon intensity. Higher-carbon fuels that exceed these annual limits incur deficits suppliers must offset with credits generated from the distribution of approved, lower-carbon alternatives to the state's fuel market.

Hawaii's proposal focuses explicitly on gasoline and diesel. Language amended in the House Energy and Environmental Protection Committee last week expanded the alternative fuels qualified to generate credits. Speakers in an initial hearing on the House bill requested language more aligned with California's LCFS, which references broader fuel options, including electricity and forms of natural gas.

LCFS programs have advanced in numerous state legislatures this year. New Mexico lawmakers this week approved a standard requiring a 20pc reduction by 2030 that governor Michelle Lujan Grisham (D) said she will sign. Proposals filed in Illinois, New Jersey and New York have advanced to various stages of early consideration.

Hawaii's legislative session will continue through April.


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08/05/25

Bangchak tests runs at Thai SAF plant before 3Q launch

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. 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.

Last month was second-hottest April: EU's Copernicus


08/05/25
08/05/25

Last month was second-hottest April: EU's Copernicus

London, 8 May (Argus) — Last month was the second-hottest April on record globally, EU earth-monitoring service Copernicus said today. The global average surface air temperature in April was 14.96°C, 0.60°C higher than the 1991-2020 average for the month, Copernicus data show. The average temperature last month was 1.51°C above the estimated pre-industrial average, the organisation said. The Paris climate agreement seeks to limit the rise in global temperature to "well below" 2°C and preferably to 1.5°C, to avoid the worst effects of climate change. April 2025 was just 0.07°C cooler than April 2024, which was the hottest recorded , Copernicus found. It was the 21st month in the past 22 for which the global average surface air temperature exceeded 1.5°C above pre-industrial levels, according to Copernicus data — though data from other agencies may not confirm this as the margins are relatively small. The organisations typically concur on the broader trends. A group of six weather and science agencies said in January that 2024 was the hottest on record . Sea surface temperatures "remained unusually high in many ocean basins and seas", while "large areas in the northeast North Atlantic" experienced record-high sea surface temperatures for the month. Arctic and Antarctic sea ice extent was below average, Copernicus found. Around 40 leaders and ministers are meeting this week in Copenhagen, Denmark for a climate ministerial. The discussions will set the direction for climate negotiations taking place this year, including UN-convened technical halfway point talks in June and the UN Cop 30 climate summit in November. By Georgia Gratton 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
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.

India, Saudi Arabia plan two Indian refineries


07/05/25
07/05/25

India, Saudi Arabia plan two Indian refineries

Mumbai, 7 May (Argus) — India and Saudi Arabia are to collaborate on the development of two integrated refinery and petrochemical plants in India. The plan was announced after Indian prime minister Narendra Modi met Saudi counterpart Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 pledged to invest $100bn in India in several sectors including energy and petrochemicals. No further details have been provided but the projects could be Indian state-run BPCL's planned facility in Andhra Pradesh and oil firm ONGC's refinery project in Gujarat, according to industry participants. Plans for a 1.2mn b/d refinery in Ratnagiri alongside the UAE's Adnoc have been abandoned because of logistical and land acquisition challenges, industry participants say. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK, Norway pursue further ‘green industry’ co-operation


07/05/25
07/05/25

UK, Norway pursue further ‘green industry’ co-operation

London, 7 May (Argus) — The UK and Norway have signed an early-stage agreement for a "green industrial partnership", planning to work together on low-emissions technology such as offshore wind, carbon capture and storage (CCS) and hydrogen. The partnership will "strengthen energy security" and "support robust value chains for raw materials", the Norwegian government said. The collaboration also aims to "support the development of renewable energy sources, and further develop existing cooperation on the protection of subsea infrastructure in the North Sea", Norway's government added. Both Norwegian and UK representatives are in attendance at the Copenhagen climate ministerial this week — an event which often sets the direction for climate negotiations this year. The countries in December flagged their intent to partner on the energy transition, including developing an agreement on cross-border CO2 transport. Norway is a leader in Europe's developing CCS sector. The country's flagship Northern Lights CCS project is due to begin operating this summer. The project's partnership this week confirmed that all required permits are in place for the injection and storage of CO2. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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