Indonesia may tighten POME oil export rules: Ministry

Spanish Market: Agriculture, Biofuels, Electricity, Emissions
21/08/24

Indonesian exports of palm oil wastes and residues including palm oil mill effluent (Pome) oil may soon be subjected to stricter export regulations, according to a draft document from its trade ministry.

The ministry released the draft after a meeting with biofuel feedstock exporters on 20 August. The timeline for a decision on finalising the regulation is still unclear, although some market participants said it could be made by this month.

Exports of Pome oil, high acid palm oil residue (Hapor) and empty fruit bunches (EFB) oil under the HS code 2306.60.90 are expected to require export permits, a change from the previous requirement of only export rights. While more details were not disclosed, meeting domestic market obligations (DMO) is usually a prerequisite to get export permits, suppliers said. This means that companies will need to sell a certain amount of cooking oil within Indonesia — or buy export quotas or credits from palm oil refineries around $15-$20/t — before they are able to export these products. This has led to expectations of potentially tightened feedstock exports.

Refineries who sell cooking oil volumes to remote areas of Indonesia will also receive higher export quotas. As of January 2023, only crude palm oil (CPO), refined, bleached and deodorised (RBD) palm oil, RBD palm olein and used cooking oil (UCO) were subject to the DMO requirements.

The previously-set domestic Highest Retail Price (Harga Eceran Tertinggi or HET) for cooking oil sold to consumers at 14,000 rupiah/l is now Rp15,700/l. This is likely because of higher CPO prices and packaging costs, a Indonesia-based supplier said. But market participants said they were also anticipating this increase previously.

The higher HET implies that companies' cost of acquiring export permits in the medium to long term could fall, having sold cooking oil at higher prices domestically, market participants said.

DMO for cooking oil

Indonesia's Ministry of Trade also issued a regulation on 16 August stating that the DMO scheme for cooking oil will move fully from bulk to packaged palm olein – in 500ml, 1 litre (l), 2l and 5l volumes. This is likely to help maintain stable cooking oil prices and control inflation, as packaged olein is easier to monitor than bulk, a supplier said. The deadline for moving from bulk to packaged volumes is 12 November.

Refineries under the DMO must also supply cooking oil volumes domestically of around 250,000 t/month, compared with approximately 300,000 t/month previously. But actual volumes will also depend on factors like how much palm oil wastes and residues exporters want to ship in a particular month too, a supplier said.

The draft document did not include updates to long-awaited changes to export duties and levies to POME oil, UCO and other products, market participants said. They were expecting these changes in September or October when the new government is sworn in, although the actual timeline is difficult to determine. Current combined export duties and levies on POME for August is only $10/t, considering a CPO reference price of $820.11/t. UCO is not subject to duties, but have levies of $35/t.

By Sarah Giam

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10/03/25

Brazil ignores fossil fuel phase-out in Cop 30 letter

Sao Paulo, 10 March (Argus) — Climate activists praised Brazil's stance of making UN Cop 30 a "turning point" for real climate change commitments but criticized the presidency's letter for turning a blind eye to fossil fuels' leading role in global warming. The summit's president Andre Correa do Lago unveiled on Monday a letter addressing the event's goals and outlooks, which includes boosting climate financing to $1.3 trillion/yr from the target stipulated at Cop 29 of $300bn/yr. "Lago calls on foreign countries — especially the US — to leave individuality and irresponsibility behind in exchange for cooperation and our planet's future," scientist Karin Bruning — a graduate of the University of Heidelberg and the Massachusetts Institute of Technology — said. "However, the letter has no use if Brazil does not pull its own weight." Bruning recalled Brazilian president Luiz Inacio Lula da Silva's [public feud](http://direct.argusmedia.com/newsandanalysis/article/2657369 with the country's environmentalist watchdog Ibama regarding the exploration in Brazil's equatorial margin region. "A country with so much renewable energy available cannot look at past solutions such as exploring and pushing for fossil fuels," Bruning said. She also highlighted the importance of respecting technical and scientific decisions on matters such as oil exploration. Environmental concerns have always been at the center of the equatorial margin debate, as it stands near a freshwater barrier reef. State-controlled Petrobras has long been trying to explore the area's Foz do Amazonas basin — which holds an estimated 10bn bl of crude, according to energy research bureau Epe — but has struggled to receive the environment licenses to do so. Ibama last denied the company a request to drill in the area in May 2023. Brazilian climate think tank Observatorio do Clima called the letter "inspiring," but added that it "excludes the elephant in the room." It recognized the letter as a "relief for giving the Paris Agreement negotiations to professionals who understand the gravity of the moment" but bashed it for keeping fossil fuels' gradual stoppage out of Cop 30's priorities list. Still, Correa do Lago's letter was celebrated for recognizing "the scale of the challenge and the urgency of response," according to climate change think-tank E3G's associate director Kaysie Brown. Holding on to past pledges Previous Cop agreements and global stocktakes (GST) — a five-yearly checkpoint agreed upon in the 2015 Paris Agreement — were ignored and pushed back against in Baku's final text. Correa do Lago's letter focused on rolling back decisions regarding developing countries and increasing financing for them, which has long been one of the Brazilian government's priorities. This includes the climate financing target of $1.3 trillion. "We do have pending issues to solve at Cop 30, notably the UAE dialogue on implementing the GST outcomes and the just transition work programme," Correa do Lago said in his letter. "The GST is an invaluable legacy that unites us. We must all continue to subscribe to it as the ultimate benchmark for climate implementation." By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ontario adds fee for electricity exports to US: Update

10/03/25

Ontario adds fee for electricity exports to US: Update

Updates with comments from US utilities Calgary, 10 March (Argus) — Ontario is imposing a 25pc tariff on electricity exports to the US starting today, carrying through on its threatened retaliation for a trade war started by US president Donald Trump. "We will apply maximum pressure to maximize our leverage, that's why today we're moving forward with a 25pc surcharge on electricity exports for the 1.5mn American homes and business that Ontario powers," Ontario premier Doug Ford said today in Toronto. Ontario was the largest exporter of electricity to the US in 2023, sending 15.2 TWh to New York, Michigan and Minnesota. The neighbouring province of Quebec, which exported 13.4 TWh the same year to New York and New England, has said it is also considering its options amid the trade war. Ford said he feels "terrible" because average consumers will pay when it is really Trump who is responsible. The surcharge will cost the US up to $400,000/d, amounting to an increase of $100 for consumers each month, according to Ford. "I will not hesitate to increase this charge," said Ford. "If necessary, if the United States escalates, I will not hesitate to shut the electricity off completely." Trump on 4 March imposed a 10pc tax on Canadian energy imports, a 25pc tariff on non-energy imports from Canada and a 25pc tariff on all imports from Mexico. But executive orders that he signed on 6 March exempted North American trade covered by the US-Mexico-Canada (USMCA) free trade agreement from new tariffs after 12:01am eastern time on 7 March. Trump has said he is delaying the tariffs on Canada and Mexico until 2 April, but his executive orders make no mention of that restart date. Minnesota Power, a subsidiary of Allete, imports "a small portion" of its electricity from Ontario but expects the impact to be "negligible", the utility said. Minnesota Power receives 11pc of its of its energy supply from Manitoba Hydro, but Manitoba has not followed Ontario's lead and imposed a surcharge. Michigan's largest utility, Consumers Energy — which serves 6.8mn of the state's 10mn residents — does not purchase power from Ontario. Xcel Energy, which serves customers in Minnesota and Michigan, also said it did not buy power from Ontario. By Brett Holmes and Anna Harmon Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US SAF projects will be protected: United Airlines

10/03/25

US SAF projects will be protected: United Airlines

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France's energy plan to allow new fossil-fired plants

10/03/25

France's energy plan to allow new fossil-fired plants

London, 10 March (Argus) — A revised version of France's 10-year energy plan, released for final public consultation, cuts a pledge to no longer build any more fossil fuel-fired power plants, while the government is pushing a bill that allows coal-fired plants to be converted to gas firing rather than shut down. The PPE3 plan, which sets out a roadmap for how France will change its energy system out to 2035 in order to comply with the country's goals to reduce greenhouse gas emissions, is now in the last stage of public consultation, several years after it was due to be finalised. The latest version maintains a pledge to phase out coal, with France's last two remaining coal-fired power plants set to close by 2027. But the pledge included in the previous version to "not build new electricity generation sites based on fossil energy" has been removed. And a pledge to "launch studies or pilot projects" to convert existing or build greenfield thermal plants using 100pc decarbonised energy has been watered down. It now promises simply to "help" operators of such plants launch studies or projects, and on fuels that are "less emitting" rather than completely decarbonised. A bill is currently passing through the French parliament that allows the country's two remaining coal-fired plants to be converted to gas operation. Gazelenergie, operator of one of the plants, hailed the bill when it was announced last month. It has the backing of the government, as well as of parliamentarians from across the political spectrum in the Moselle region, where one of the coal-fired plants is located. The new version of the plan also cuts ambitions for solar power as revealed last month , in light of views that the previous aim was too high given France's extensive nuclear fleet. The government now aims for 65-90GW by 2035, down from 75-100GW in the previous plan. It hopes to achieve this aim by launching two tenders per year of 1GW each for ground-mounted solar and three tenders of 300MW each for roof-mounted solar. The roof-mounted tenders "may be adjusted" according to changes made to subsidies, the government said. And one technologically neutral 500MW tender per year will be held. In the past, these tenders typically have been dominated by solar projects. The government has not explicitly decided on a separate tender for agrivoltaic projects, as the solar sector had called for, but it may decide to hold them, deducting any capacity called for from other solar buckets. The trajectory for solar is set at 5GW of projects assigned per year, for 4GW constructed, assuming 20pc of projects do not advance. This then could be modified upwards from 2028-29, to a maximum of 7 GW/yr, if increases in demand and flexibility justify it. On onshore wind, two tenders of 900MW each will be held every year in order to hold the trajectory of construction at roughly 1.5 GW/yr. France's electricity is already substantially decarbonised, thanks to its large nuclear fleet and renewables installations. Fossil fuel-fired plants will only be needed to cover demand spikes and ensure energy security, the government said in the consultation. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ontario adds 25pc tariff on electricity exports to US

10/03/25

Ontario adds 25pc tariff on electricity exports to US

Calgary, 10 March (Argus) — Ontario is imposing a 25pc tariff on electricity exports to the US starting today, carrying through on its threatened retaliation to a trade war started by US president Donald Trump. "We will apply maximum pressure to maximize our leverage, that's why today we're moving forward with a 25pc surcharge on electricity exports for the 1.5mn American homes and business that Ontario powers," Ontario premier Doug Ford said Monday in Toronto. Ontario was the largest exporter of electricity to the US in 2023, sending 15.2 TWh to New York, Michigan and Minnesota. The neighbouring province of Quebec, which exported 13.4 TWh the same year to New York and New England, has said it is also considering its options amid the trade war. Ford added he feels "terrible" because average consumers will pay when it is really Trump who is responsible. The surcharge will cost the US up to $400,000 each day, amounting to an increase of $100 for consumers each month, according to Ford. "I will not hesitate to increase this charge," said Ford. "If necessary, if the United States escalates, I will not hesitate to shut the electricity off completely." Trump on 4 March imposed a 10pc tax on Canadian energy imports, a 25pc tariff on non-energy imports from Canada and a 25pc tariff on all imports from Mexico. But executive orders that he signed on 6 March would exempt North American trade covered by the US-Mexico-Canada (USMCA) free trade agreement from new tariffs after 12:01am eastern time on 7 March. Trump has said he is delaying the tariffs on Canada and Mexico until 2 April, but his executive orders make no mention of that deadline. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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