UAE's Fujairah port allocates land for biofuel plant
The Fujairah Oil Industry Zone (FOIZ) has allocated 54,000m² of land for the construction of a biofuel processing plant as part of the expansion of the Mena terminal in Fujairah, the world's third largest bunkering and oil storage hub, in the UAE.
FOIZ signed an agreement with the terminal owner, Bahrain-headquartered trading firm Mercantile and Maritime Group, to support "FOIZ's strategy to attract and establish low carbon and green fuel production".
The Mena terminal is a bulk liquid storage terminal, comprising 14 tanks and storing 352,000m³ of clean and dirty refined petroleum products.
Fujairah has been lagging Singapore and Europe in the transition to alternative marine fuels. The first delivery of B24 bunker fuel, a blend of 24pc fatty acid methyl ester (Fame) and 0.5pc sulphur marine fuel, was carried out in late 2023, with just two in the following weeks and one in the neighbouring port of Khor Fakkan in January.
The maritime industry has been looking at B24 blends as one of the main ways to meet the International Maritime Organisation's (IMO) decarbonisation targets that were agreed in 2023. Use of B24 biofuel could reduce CO2 emissions by 15-20pc compared with conventional bunker fuel, to comply with Carbon Intensity Indicator targets and ratings set by the IMO from 2024. This requires all ships to calculate their Energy Efficiency Existing Ship Index to improve energy efficiency.
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Air New Zealand abandons 2030 emissions target
Air New Zealand abandons 2030 emissions target
Sydney, 30 July (Argus) — State-controlled carrier Air New Zealand has announced its withdrawal from the Science Based Targets initiative, saying its 2030 emissions reduction goal is unachievable because of issues outside the airline's control. It cited factors including affordability and availability of alternative jet fuels, as well as a lack of global and domestic regulatory and policy support. "In recent months, and more so in the last few weeks, it has also become apparent that potential delays to our fleet renewal plan pose an additional risk to the target's achievability," chief executive Greg Foran said on 30 July. Air New Zealand said it will develop a new short-term carbon emissions reduction target while working to transition away from fossil fuels and reach net zero emissions by 2050. The company was aiming to cut its carbon intensity by 28.9pc before 2030 from a 2019 baseline, or an absolute reduction in emissions by 16.3pc over the same period, pledging to consider electric, hybrid and green hydrogen aircraft as part of its decarbonisation strategy. It expected sustainable aviation fuel (SAF) would comprise 10pc of jet fuel use in the 2029-30 fiscal year as part of the target. But New Zealand's previous Labour party government cancelled a planned biofuels mandate early last year in a blow to the sector's domestic manufacturing hopes. Air New Zealand took delivery of a 500,000 litre SAF shipment last month and has a deal with Finnish producer Neste for 7,200t for use at Los Angeles airport , as no SAF is currently produced in New Zealand. But Air New Zealand said it was paying a fourfold premium on the price of jet fuel for the imports, advocating for a SAF-specific mandate to spur domestic production in its 2023 sustainability report. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Ampol, Graincorp, IFM to study Australia SAF production
Ampol, Graincorp, IFM to study Australia SAF production
Sydney, 30 July (Argus) — London-based fund manager IFM Investors and major east coast Australian grain aggregator GrainCorp will partner with Australian refiner and retailer Ampol to explore establishing an integrated renewable fuels business. Ampol and IFM plan to assess the feasibility of producing sustainable aviation fuel (SAF) and renewable diesel at the site of Ampol's 109,000 b/d Lytton refinery at the port of Brisbane, in Queensland state, Ampol said on 30 July. The firms will work with GrainCorp on the supply of feedstocks, including additional crushing capacity to supply canola oil, to the potential plant. The collaboration builds on an IFM-GrainCorp initial agreement signed last year, where the firms pledged to begin developmental plans for a 720,000 t/yr SAF facility. With domestic feedstock potential for about 5bn litres/yr of SAF, Australia could become a major producer, the nation's federal science agency CSIRO has said. GrainCorp is a significant exporter of canola oil, tallow and used cooking oil for biofuel production. Canberra has allocated funds for a low-carbon liquid fuel industry development plan in recent months, agreeing to develop a certification scheme to help establish domestic output. Australia's aviation white paper which is due for release mid-year is expected to provide further strategic direction on the role of SAF and other emerging technologies in the sector. Australia's jet fuel imports in 2024 have averaged 127,000 b/d, according to Australian Petroleum Statistics (APS), with Australia's domestic refineries producing 26,000 b/d of jet fuel during the same period. APS data shows diesel imports of 514,000 b/d for the first five months of 2024, with refineries producing 73,000 b/d. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
European marine biodiesel: Prices fall
European marine biodiesel: Prices fall
London, 29 July (Argus) — European marine biodiesel prices fell under pressure from limited demand and lower values in the underlying markets in the week's opening session. In northwest Europe, participants pointed to lacklustre spot marine biodiesel demand. Shipowners with scrubber-fitted vessels were looking to purchase high-sulphur fuel oil (HSFO)-based marine biodiesel blends in recent sessions. In the Mediterranean, suppliers told Argus that the bulk of enquiries received was for very-low sulphur fuel oil (VLSFO) blends. But overall spot demand was limited in the region. The east-west marine biodiesel spread — the premium held by B30 used cooking oil methyl ester (Ucome) dob ARA to B24 Ucome dob Singapore — narrowed by $4/t to $101/t at the close, a two-week low. In the underlying fossil markets, the front-month Ice Brent crude and Ice gasoil futures contracts eased at 16:30 BST. In the underlying biodiesel markets, Argus assessments for Advanced fatty acid methyl ester (Fame) 0 barges fell while the price of Dutch renewable tickets (HBE-Gs) remained firm to weigh on marine biodiesel blend prices in the Netherlands. EU emissions trading system (ETS) prices increased to $73.20/t from $72.25/t. But ETS-inclusive premiums held by marine biodiesel blends against their fossil counterparts diverged. B24 dob Algeciras-Gibraltar prices fell by $5/t to $790/t, but its premium against VLSFO with the inclusion of ETS costs widened by $4.71/t to $199.86/t. B30 used cooking oil methyl ester (Ucome) dob ARA values decreased by $4/t to $817/t but the blend's ETS-inclusive premium against VLSFO dob ARA gained $4.14/t to $242.82/t. Calculated B30 Advanced Fame 0°C CFPP dob ARA prices — which include a deduction of the value of Dutch HBE-G renewable fuel tickets — slipped by $10.93/t to $752.39/t, and the blend's ETS-incorporated premium against VLSFO decreased by $2.79/t to $178.22/t. Calculated B100 Advanced Fame 0 dob ARA values declined by $16.58/t to $1,141.98/t, and its premium against MGO narrowed by $19.30/t to $338.11/t when ETS costs were accounted for, the narrowest premium since 12 June. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
TFG to lease 4 new methanol carriage-ready tankers
TFG to lease 4 new methanol carriage-ready tankers
New York, 29 July (Argus) — Singapore-based marine fuel supplier TFG Marine signed a long-term charter deal with Singapore-based marine fuel supplier Consort Bunkers for four newbuild methanol carriage-ready bunker tankers. The 6,500t deadweight tankers will be able to carry high-sulphur fuel oil, very low-sulphur fuel oil, marine gasoil and biodiesel up to B100. As methanol carriage-ready vessels, TFG can easily retrofit them to also carry methanol in the future. The vessels are classified as IMO type 2 chemical tankers. The tankers are under construction in Merchants Jinling shipyard in Nanjing, China, and will be delivered starting the end of this year through 2025. They will be operated by Consort for TFG. In 2023, the Maritime & Port Authority of Singapore (MPA) ranked TFG as the second biggest marine fuel supplier by volume of fuel supplied and Consort Bunkers the 23rd biggest, out of 42 registered suppliers. The ranking includes conventional bunkers and biofuels. Separately, MPA ranked TFG as the eighth biggest biofuel-for-bunkering supplier in Singapore, out of 14 biofuel suppliers there. For the month of May, MPA reported 1,626t of methanol-for-bunkering sales in Singapore. Prior to that there were no methanol bunker sales until July 2023 — 300t. By comparison, biodiesel bunker blend sales rose by 49pc to 288,269t in the first half of 2024, from 193,800t during the same period last year. TFG Marine is a joined venture by Trafigura, Frontline and Golden Ocean. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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