Michigan milk-to-ethanol plant breaks ground
A Canada-based milk-to-alcohol provider has begun construction on a Michigan plant designed to produced 2.2mn USG/yr of ethanol using milk byproduct sourced from dairy farms.
Through a joint venture with the Michigan Milk Producers Association, Ontario-based Dairy Distillery will produce the biofuel using 14,000 metric tonnes/yr of milk permeate at the plant in Constantine, Michigan, which broke ground on 6 August.
The $41mn project was announced last year and is expected to begin ethanol production in early 2025. The plant received $2.5mn in funding from the state of Michigan.
Dairy Distillery uses milk permeate to produce vodka in Ontario, marketed at Vodkow. The Michigan plant will be its first to produce ethanol for fuel-use.
The company's new footprint in the US will allow it to take advantage of various federal tax credits for biofuels producers laid out in the Inflation Reduction Act.
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Agunsa offers biodiesel bunkers in Argentina
Agunsa offers biodiesel bunkers in Argentina
New York, 15 August (Argus) — Chile-based marine fuel supplier Agunsa, which also sells marine fuels in Argentina, is now offering biodiesel for bunkering in Argentina. Agunsa's subsidiary Total Bunkering — not affiliated with France's TotalEnergies — entered into a partnership with an unnamed local Argentinian supplier to procure used cooking oil methyl ester (Ucome), which it can blend with either very low-sulphur fuel oil (VLSFO) or with marine gasoil. The fuel is International Certification in Sustainability and Carbon (ISCC)-certified. It can be supplied via truck to the ports of San Nicolas, Campana, San Pedtro, Rosario and the Ternium-Siderar terminal. Globally, one of the most popular biodiesel blends is B30, a blend of 30pc Ucome and 70pc VLSFO. An Argentinean B30 biodiesel bunker blend could command a premium of about 80pc to the price of VLSFO, Agunsa told Argus . Buenos Aires, Argentina, VLSFO was assessed at an average of $599/t on 1-14 August, which would place B30 at around $1,078/t. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK to exclude SAF from China biodiesel investigation
UK to exclude SAF from China biodiesel investigation
London, 15 August (Argus) — The UK has proposed revising the scope of its an anti-dumping investigation into China-origin biodiesel and hydrotreated vegetable oil (HVO) to explicitly exclude sustainable aviation fuel (SAF). The investigation, which was launched on 5 June, was never intended to include SAF, but the UK's Trade Remedies Authority (TRA) subsequently asked interested parties for feedback on whether it should be included after it was brought to its attention that SAF could be considered to fit the description in the initial notice. That notice stated that the inquiry would cover "fatty-acid mono-alkylesters or paraffinic gasoils obtained from synthesis or hydrotreatment of non-fossil origin, in pure form or as included in a blend" in the period from 1 April 2023 to 31 March 2024. The TRA has now proposed amending the description to explicitly exclude "sustainable aviation fuel, in pure form or as included in a blend". But there will be no change to the commodity codes as a result of the revision. The written scope of the investigation is the primary focus at this stage, with the commodity codes serving merely as reference points and not binding criteria, according to the TRA. SAF should be excluded from the investigation because it has distinct production processes and raw materials compared to HVO and fatty acid methyl esters (Fame), limited interchangeability with road transport fuels, a higher selling price and a different regulatory framework under the UK's SAF mandate starting in January 2025 , the TRA said. SAF also benefits from a tax rebate for aviation use, making it economically unviable for road transport use, and has a different customer base, it said. Interested parties have until 21 August to submit any comments, after which the TRA will make a final decision on the scope of the investigation. The investigation follows an application by the Renewable Transport Fuel Association (RTFA) on behalf of UK biofuels producers Argent Energy and Olleco, which alleged that exports from China to the UK were below market value, adversely affecting the UK biofuels industry. The RTFA advocated for including SAF, HVO and Fame in the investigation, citing their potential interchangeability and the minimal amount of investment needed to increase production of HVO and SAF in the UK. But Chinese biofuels producer Ecoceres argued that SAF should be excluded, arguing that it is not interchangeable with Fame and there is limited supply-side substitutability. Ecoceres also pointed out that the UK did not have a domestic SAF industry during the period under investigation, which means that imports from China could not have caused injury. The airline group IAG also supported excluding SAF, emphasising the aviation industry's reliance on imports due to limited global production capacity. The UK government officially confirmed last month that subject to parliamentary approval it will introduce a SAF mandate starting next year. Obligated suppliers will have to deliver a 2pc share of SAF in 2025, increasing to 10pc in 2030, 15pc in 2035 and 22pc in 2040. The obligation will remain at 22pc from 2040 "until there is greater certainty regarding SAF supply", the government said. Under the mandate, hydrotreated esters and fatty acids (HEFA) SAF can be used to meet 100pc of SAF demand in 2025 and 2026, but it will be capped at 71pc in 2030 and 35pc in 2040. HEFA is the most common type of SAF today, and is expected to account for over 70pc of global production by the end of the decade, according to Argus data. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Capacity available at Australian grain ports in 2024-25
Capacity available at Australian grain ports in 2024-25
Sydney, 14 August (Argus) — Australia's largest bulk grain handlers have millions in tonnes of unallocated loading capacity at their port terminals in the October 2024-September 2025 marketing year. Bulk handlers GrainCorp, Viterra and CBH record at least 3.7mn t of available capacity across 17 port terminals on Australia's east and west coast in 2024-25. Shipping capacity has been stretched in past years, because of record bumper harvests. This led to the expansion of mobile shiploaders to ease bottlenecks at export terminals. Viterra — which covers the southern states of South Australia and Victoria — indicates available capacity of almost 2.5mn t in 2024-25, of which 540,000t is at its Port Adelaide outer harbour. Available capacity is lower at GrainCorp and CBH, at 400,000t and 870,000t respectively. Additional capacity is available at GrainCorp's Fisherman Islands, Carrington and Port Kembla and Geelong terminals in New South Wales, although exact quantities are not provided. Spare capacity at CBH terminals in Western Australia (WA) represents just 4pc of the 19.5mn t in total port shipping capacity for 2024-25 and 2pc of total capacity at the Kwinana facility. The Kwinana port has a maximum outloading capacity of 5000 t/hr and ships more than half of WA's total grain production on average each year, according to company data. Australia is forecast to export 23mn t of wheat and 5.6mn t of barley in the 2024-25 marketing year, according to the US Department of Agriculture. But wheat exports will have to pick up from current levels to meet this target. Australia exported an average of 1.79mn t/month of wheat in the current marketing year to June, according to the Australia Bureau of Statistics. It will have to export at least 1.92mn t/month in 2024-25 to meet the USDA target. Further difficulty may arise if shipments to China, Australia's primary wheat export destination, slow in 2024-25. Current demand from China has been notably absent compared with the same time last year, according to market participants. Australia grain port available capacity in 2024-25 000t Grain Handler Port Capacity GrainCorp Mackay 1.95 Gladstone 2.05 Fisherman Islands Available Carrington Available Port Kembla Available Geelong Available Portland None Viterra Pt Adelaide (Outer Harbor) 5.40 Pt Adelaide (Inner Harbour) 3.09 Pt Giles 3.00 Pt Lincoln 3.89 Wallaroo 3.89 Thevenard 5.40 CBH Geraldton 2.70 Kwinana 1.55 Albany 1.05 Esperance 3.40 Total 37.37 Source: Company Data Capacity of GrainCorp as at 13 August, Viterra as at 12 August and CBH as at 25 July. Viterra capacity subject to restrictions. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
California pares LCFS goals to tougher targets: Update
California pares LCFS goals to tougher targets: Update
Updates trade discussion, adds links to other coverage. Houston, 13 August (Argus) — California will pursue transportation fuel carbon reduction targets in 2025 nearly twice as tough as originally proposed under final Low Carbon Fuel Standard (LCFS) rulemaking language released late Monday. The California Air Resources Board (CARB) will consider a one-time tightening of annual targets for gasoline and diesel by 9pc in 2025, compared with the usual 1.25pc annual reduction and a 5pc stepdown first proposed in December 2023. Staff maintained a 30pc reduction target for 2030, compared to the current 20pc target. Final rulemaking language introduced a new 20pc/yr cap on a company's credit generation from soybean- and canola-oil-based biodiesel or renewable diesel to begin in 2028. The updated rule also dropped proposals to require carbon reductions from jet fuel in addition to gasoline and diesel, a controversial proposal aligned with governor Gavin Newsom's (D) ambitions for lower-carbon air travel but which participants warned would not achieve its targets. The new proposal immediately jolted a lethargic credit market that earlier this year slumped to the lowest spot price in nearly a decade under the weight of growing credit supplies. Current quarter trade raced higher by $12.50 — 26pc — in rare after-hours activity less than two hours after CARB staff published the latest documents. Trade continued up to $65/t in the first half of Tuesday's session before retreating in later hours back below $60/t. Public comment on the proposals will continue to 27 August ahead of a planned 8 November public hearing and potential board vote. The program changes could be in place by the end of the first quarter of 2025, according to staff. LCFS programs require yearly reductions to transportation fuel carbon intensity. Higher-carbon fuels that exceed these annual limits incur deficits that suppliers must offset with credits generated from the distribution to the market of approved, lower-carbon alternatives. Surging use of renewable diesel and outsized credit generation from renewable natural gas have overwhelmed deficit generation to create a glut of credits available for future compliance. LCFS credits do not expire, and 26.1mn metric tonnes of credits — higher by 16pc than all the new deficits generated in 2023 — were available for future compliance by the end of March. Credits fell in May to trade at $40/t, the lowest level for current quarter credits since June 2015. California late last year formally proposed tougher annual targets, off-ramps for certain fuels and other changes to North America's largest and oldest LCFS program. Staff had initially targeted March to put ideas including a one-time, 5pc reduction to targets in 2025 and automatic mechanisms to match targets to credit and deficit generation before the board for formal approval, but they delayed that meeting after receiving hundreds of distinct comments on the original proposal. Staff shifted the 2025 target to at least 7pc after an April workshop discussion and another record-breaking quarter of increases in credits available for future compliance. The 9pc recommendation followed the continued growth of credit supplies in recent quarters. Previous modeling estimated that such a target could draw down the credit bank by 8.2mn t in its first year. Uncertainty over how fuel suppliers and consumers would respond to that target led staff to leave in place the proposed 30pc target by 2030. An outright cap on credits generated from soybean- or canola-oil derived biomass-based diesels augments initially proposed "guard rails" on crop-based credit generation through verification. The change would send a stronger market signal preferring waste-based feedstocks for diesel fuels that California expects to replace with zero-emission alternatives, staff said. And staff dropped a proposed obligation on jet fuel used in intrastate flights, estimated to make up 10pc of California's jet fuel consumption. Participants had warned the measure would stoke more credit purchases than renewable jet fuel buying, due to the structure of the aviation fuel market . By Elliott Blackburn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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