Maersk fuel consumption down on vessel efficiency

Spanish Market: Biofuels, Oil products, Petrochemicals
27/02/24

Maersk's vessels burned about 6.5pc less residual fuel oil and marine gasoil in 2023 than the prior year, which the Danish ship owner attributed to improved vessel fuel efficiencies.

Maersk's vessels burned about 9.7mn t of residual fuel oil and marine gasoil in 2023, down from 10.4mn tin 2022, while the company's vessels emitted 34.1mn t of CO2-equivalent emissions last year, down by 1pc from 2022.

It reduced its vessels' carbon intensity by 4pc in 2023 compared with a 2020 base line. It aims to reduce it by 50pc by 2030. Some of its customers, including Volvo Cars, Nestle, BESTSELLER, Inditex and Novo Nordisk are moving their cargoes on Maersk vessels powered by low carbon fuels. "While many Maersk customers have shown a willingness to pay a premium to decarbonise their supply chains, rising interest rates threaten to push fuel costs to customer limits", the company cautioned in its sustainability report.

Maersk is diverting its vessels from the Red Sea and the Gulf of Aden around the Cape of Good Hope to avoid Yemen's Houthi militants' attacks on shipping. While this will increase its fuel consumption and emissions in 2024, the overall effect depends on the vessels' speed and duration of the Gaza conflict.

Maersk has two new methanol-fueled vessels: the 2,100 twenty-foot equivalent unit (TEU) container Laura Maersk delivered in September 2023 and the 16,000 TEU Ane Maersk delivered this month. The bio-methanol that Laura Maersk burns is procured in Rotterdam from Norway's methanol producer Equinor. The bio-methanol is produced from biogas from manure and is International Sustainability Carbon Certification (ISCC) EU certified in accordance with the EU Renewable Energy Directive. Long term, Laura Maersk will be fueled by e-methanol supplied by European Energy's plant in southern Denmark which is expected to come on line by mid-2024. Bio-methanol reduces lifecycle greenhouse gas emissions by 65pc and e-methanol by 70pc, says Maersk.

Maersk has another 23 new methanol-fueled vessels on order, 17 of these, with 16,000-17,000 TEU capacity that will be delivered from 2024-2025 and the last six vessels, with 9,000 TEU capacity, from 2026-2027. Maersk had signed a green methanol offtake agreement with Goldwind. Starting in 2026, Goldwind will supply it with 500,000t/year of green methanol from China, which it says will be "enough" for the first 12 of its methanol-capable vessels. In addition to ordering new methanol-enabled vessels, Maersk is also looking into converting an existing 14,000 TEU vessel from a traditional diesel engine to a dual-fuel methanol engine this year.

By Stefka Wechsler

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28/04/25

Power outage hits Spanish refineries: Update

Adds details on flight cancellations London, 28 April (Argus) — A massive power cut across the Iberian peninsula has disrupted operations at several refineries, chemical plants and airports in Spain and Portugal today. All five of Repsol's refineries have been forced to shut, a union representative for the company's workers said. This includes the 220,000 b/d Bilbao refinery, which is operated by Repsol's Petronor subsidiary. Crews are in place, securing units at the refineries. "There is sufficient autonomy in all of them to guarantee the safety of the facilities," the union representative said. Repsol has yet to respond to a request for comment. Fellow Spanish refiner Moeve said it also has halted activity at its refining and chemical plants in the country and is using back-up power generators "to guarantee the safety and control of the system". Moeve operates the 244,000 b/d Algeciras and 220,000 b/d Huelva refineries. Its 250,000 t/yr San Roque base oils plant is also shutting down. Chemicals firm Dow said all plants at its Tarragona industrial complex in Spain have been closed. The longer the power outage lasts, the longer it will take to restart integrated sites. Refineries affected by power outages normally require a 2- to 3-day restart period. It is unclear yet whether any plants have sustained damage. Airports in both countries have also been affected, with 29pc of flights cancelled at Lisbon, according to data from analytics firm Cirium. A total of 96 flights from Portuguese airports have been cancelled today, according to Cirium, while 45 have been cancelled in Spain. Spanish transmission system operator Red Electrica and relevant government bodies are investigating the cause of the blackout. Red Electrica said power has been restored "at substations in several areas in the north, south and west of the peninsula, and consumers in these areas are beginning to be supplied". By George Maher-Bonnett, Isabella Reimi, Alex Sands and Monicca Egoy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Power outage hits Spanish refineries: Update

28/04/25

Power outage hits Spanish refineries: Update

Adds new details throughout London, 28 April (Argus) — A massive power cut across the Iberian peninsula has disrupted operations at several refineries and chemical plants in Spain today. All five of Repsol's refineries have been forced to shut, a union representative for the company's workers said. This includes the 220,000 Bilbao refinery which is operated by Repsol's Petronor subsidiary. Crews are in place, securing units at the refineries. "There is sufficient autonomy in all of them to guarantee the safety of the facilities," the union representative said. Repsol has yet to respond to a request for comment. Fellow Spanish refiner Moeve said it has also halted activity at its refining and chemical plants in the country and is using back-up power generators "to guarantee the safety and control of the system". Moeve operates the 244,000 b/d Algeciras and 220,000 b/d Huelva refineries. Its 250,000 t/yr San Roque base oils plant is also shutting down. Chemicals firm Dow said all plants at its Tarragona industrial complex in Spain have been closed. The longer the power outage lasts, the longer it will take to restart integrated sites. Refineries affected by power outages normally require a 2-3 day restart period. It is unclear yet if any plants have sustained damage. Spanish transmission system operator (TSO) Red Electrica and relevant government bodies are investigating the cause of the blackout. Red Electrica said power has been restored "at substations in several areas in the north, south and west of the peninsula, and consumers in these areas are beginning to be supplied". By George Maher-Bonnett, Isabella Reimi, Alex Sands and Monicca Egoy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Power outage hits Spanish refineries

28/04/25

Power outage hits Spanish refineries

London, 28 April (Argus) — A massive power cut across the Iberian peninsula has disrupted operations at several refineries in Spain today, sources told Argus. Spanish firm Repsol's Petronor subsidiary halted all units at its 220,000 Bilbao refinery earlier because of the power cut, with black smoke released as part of the security stoppage, market participants said. Shutdowns are also under way at Moeve's 250,000 t/yr San Roque base oils plant and at Repsol's 135,000 b/d La Coruna refinery, sources said. Flaring has been seen at Repsol's 180,000 b/d Tarragona refinery as a result of a response system being activated at the site, according to petrochemical sources. Moeve and Repsol have yet to respond to a request for comment. "The refineries need to be brought to a safe state," a trade union representative for Repsol workers said. "The crews are in place, securing the units. There is sufficient autonomy in all of them to guarantee the safety of the facilities." Chemical sites will also be affected by the power outage. The longer the power outage lasts, the longer it will take to restart integrated sites. Refineries affected by power outages normally require a 2-3 day restart period. It is unclear yet if any plants have sustained damage. By George Maher-Bonnett, Isabella Reimi and Alex Sands Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump works to blunt renewables growth

28/04/25

Trump works to blunt renewables growth

Washington, 28 April (Argus) — US president Donald Trump has started to impede development of renewable energy projects he sees as boondoggles, but he is facing challenges to his attempts to halt government funding and tax credits for the sector. Trump has attacked wind turbines and solar projects as part of a "Green New Scam" that should not be built, based on his preference for the fossil fuel-fired and nuclear power plants he says are more reliable and affordable. Trump selected a cabinet of like-minded individuals who oppose renewables and see little urgency to address climate change. He was elected to end the "nonsense" of building renewable resources that are heavily subsidised, make the grid less reliable and raise costs, energy secretary Chris Wright said in an interview on Earth Day. Interior secretary Doug Burgum on 16 April ordered Norwegian state-controlled Equinor to "immediately halt" construction of the 810MW Empire Wind project off New York. Trump had already ordered a freeze on future offshore wind leases , and suspending Empire Wind's permits is likely to spook investors even outside the renewables sphere. To reverse course on a fully permitted project is "bad policy" that "sends a chilling signal to all energy investment", American Clean Power Association chief executive Jason Grumet says. The US last week separately said it would impose anti-dumping duties on solar components imported from four southeast Asian countries that will range from 15pc to 3,400pc. Those duties — in effect from June to support US solar manufacturers — will be in addition to a 10pc across-the-board tariff the US imposed this month on most imports. Solar industry groups have said that steep import duties will make new installations unaffordable, stunting the industry's ability to grow. Trump has had less success in his push to axe support for renewables approved under Joe Biden. On 15 April, a federal judge ordered the administration to unfreeze billions of dollars for clean energy projects provided by the Inflation Reduction Act (IRA) and 2021 infrastructure law. The administration lacks "unfettered power to hamstring in perpetuity two statutes", judge Mary McElroy wrote. In a separate ruling on 15 April, judge Tanya Chutkan prohibited the administration from suspending $14bn in grants distributed to nonprofits under the IRA for a greenhouse gas reduction programme. The administration is appealing both rulings. Targeting the windfall Trump could further undermine the growth of renewables by convincing Republicans in Congress to use an upcoming filibuster-proof budget package to repeal or narrow the IRA's tax credits for wind, solar and other clean energy projects. Critics of that law see the potential for $1 trillion in savings by repealing its tax credits, which could offset the costs of more than $5 trillion in planned tax cuts. But there appear to be enough votes in each chamber of Congress to spare at least some of the IRA's energy tax credits. In the Senate, where Republicans can only afford to lose three votes, Alaska's Lisa Murkowski and three other Republicans signed a joint letter this month saying "wholesale repeal" of the tax credits would fuel uncertainty and undermine job creation. In the House of Representatives, where Republicans have a similarly slim majority, 21 Republicans voiced concerns earlier this year about repealing all of the tax credits. Renewables are on track to overtake natural gas as the largest source of US electricity by 2030 — assuming the tax credits and climate rules enacted under Biden remain intact — the EIA stated this month in its Annual Energy Outlook . The amount of power from renewables under the EIA's existing policy baseline by 2035 will increase by 135pc to 2.8bn MWh, while gas-fired power will decline by 14pc to 1.6bn MWh over the same time period. By Chris Knight Baseline US net power generation Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Orbia focused on cost in face of weak PVC market

25/04/25

Orbia focused on cost in face of weak PVC market

Houston, 25 April (Argus) — Mexico-based chemicals producers Orbia is focusing on reducing future costs as the broader polyvinyl chloride (PVC) industry faces weakening market dynamics. Orbia said Friday it would focus on maintaining strict discipline on fixed costs, working capital, and capital investments to weather the turbulent global economic landscape. The company is targeting $250mn in savings by 2027, with cumulative savings of $160mn by the end of 2025. The company also expects $75mn of divestments by the end of the year in its building and infrastructure segment. Plants and related infrastructure in Europe were the primary targets of the optimization, according to company officials on the first-quarter earnings call. Orbia chief executive Sameer Bharadwaj said the company could revise capital expenditures lower from its initial $400mn target provided earlier this year should market conditions further deteriorate. Short-term operating costs currently face lower levels with falling ethane prices, a critical feedstock to manufacture ethylene for PVC production. The focus on cost management was spurred by sluggishness in the global PVC market. Chinese and US PVC producers drove export prices lower as a means of moving excess capacity, which Orbia expects to continue. "PVC pricing is as low as it gets" Bharadwaj said. He added producer margins would be squeezed further if product prices continue to decrease. Orbia posted a $41mn profit during the first quarter, down from the $106mn profit a year earlier. Orbia's polymer solutions segment, which includes PVC production, reported $6mn loss during the three-month period because of lower global prices for vinyls and a force majeure at its Coatzacoalcos, Veracruz, plant that was lifted in mid-April. Orbia made a $24mn profit during the same period a year ago. The building and infrastructure segment, inclusive of PVC products, posted a $3mn profit for the quarter compared to a $33mn profit a year earlier. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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