UK parliament approves SAF mandate from 2025

Spanish Market: Biofuels, E-fuels, Electricity, Hydrogen, Oil products
06/11/24

The UK parliament has approved the proposed sustainable aviation fuel (SAF) mandate that will come into effect on 1 January, 2025.

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 obligation arises at the point at which a supplier's jet fuel can be supplied only to UK aviation.

Hydrotreated esters and fatty acids (HEFA) SAF can be used to meet 100pc of SAF demand in 2025 and 2026, but will be capped at 71pc in 2030 and 35pc in 2040. An obligation for Power-to-Liquid (PtL) SAF will be introduced from 2028 at 0.2pc of total jet fuel demand, rising to 0.5pc in 2030 and 3.5pc in 2040.

Buy-out mechanisms will be set at the equivalent of £4.70/l ($6.10/l) and £5.00/l ($6.50/l) for the main and PtL obligations, respectively.

"It is projected that, between 2025 and 2040, the SAF mandate could deliver up to 25mn t of SAF, securing a saving of up to 54mn t of carbon dioxide", said transport minister John Hendy.

The UK confirmed on 17 July it will introduce the Sustainable Aviation Fuel (Revenue Support Mechanism) bill to support SAF production. The government previously said it aims to introduce the mechanism, which will be industry funded, by the end of 2026.

"Together with the SAF mandate, [the mechanism] will give the investment community confidence to invest in these novel and innovative technologies", Hendy said.

By Evelina Lungu

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03/12/24

EU finalisiert Zölle auf chinesische Biokraftstoffe

Hamburg, 3 December (Argus) — Die europäische Kommission wird ab Februar 2025 Zölle auf importierte chinesische Biokraftstoffe erheben. Dies geschieht in Reaktion auf ungewöhnlich große und teilweise falsch deklarierte Biokraftstoff-Importmengen aus China seit dem Frühjahr 2023. Die Zölle werden am 14. Februar 2025 in Kraft treten und fallen je nach betroffenem chinesischem Unternehmen unterschiedlich hoch aus. Je nachdem, wie kooperativ sich das jeweilige Unternehmen gegenüber der Europäischen Kommission bei den Ermittlungen zu etwaigen [Betrugsfällen mit fortschrittlichen Biokraftstoffen]( https://direct.argusmedia.com/newsandanalysis/article/2438906) gezeigt hat, liegt der Zollsatz zwischen 11,1 % und 36,6 %. Dies geht aus einem Dokument der Generaldirektion für Handel der Kommission hervor, das Argus vorliegt. Die [vorläufig erlassenen Zölle]( https://direct.argusmedia.com/newsandanalysis/article/2589515) wurden ursprünglich in einer Spanne von 12,8 % bis 36,4% festgelegt. Endgültig eingeführte Zölle gelten für gewöhnlich für eine Zeitspanne von fünf Jahren, allerdings kann eine Revision bereits nach dem ersten Jahr angefragt werden. Die Kommission bestätigt in dem Dokument außerdem, dass Nachhaltiger Flugzeugkraftstoff (SAF) von den Antidumping-Zöllen ausgeschlossen ist, da der Kraftstoff weder mit Biodiesel oder HVO austauschbar sei, noch mit diesen konkurriere. Verschiedene europäische Unternehmen und Verbände, darunter der finnische Produzent Neste und das European Biofuels Board (EBB) hatten zuvor gewarnt, dass durch den Ausschluss von SAF von den Zöllen der Flugzeugkraftstoff von verpflichteten Unternehmen zur Erfüllung von Dekarbonisierungsmandaten im Straßenverkehr genutzt werden könnte. Durch sogenannte Opt-Ins können Unternehmen in manchen EU-Staaten, zum Beispiel in den Niederlanden, nicht straßengebundene Kraftstoffe wie SAF auf die Erfüllung ihrer Mandate im Straßensektor anrechnen lassen. Als HVO jedoch Anfang November im Handelszentrum Amsterdam-Rotterdam-Antwerpen (ARA) teurer gehandelt wurde als SAF, gab es keine Anzeichen, dass der Flugzeugkraftstoff tatsächlich verstärkt im Straßenkraftstoffmarkt Einzug hielt. Seit Anfang 2023 erreichten große Mengen von meist als fortschrittlich deklariertem Biokraftstoff aus China den europäischen Markt. Das daraus resultierende Überangebot setzte europäische Produzenten unter Druck und senkte in Deutschland die Kosten zur Erfüllung der Treibhausgasminderungsquote . Von Simone Burgin & Max Steinhau Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2024. Argus Media group . Alle Rechte vorbehalten.

German 2030 coal phase-out called into question

03/12/24

German 2030 coal phase-out called into question

London, 3 December (Argus) — Germany's coal phase-out targets are being reassessed owing to the likelihood of further delays to the passing of the power plant security act (KWSG), as well as decisions already taken on the future design of the electricity market. Germany has pledged to phase out coal and lignite-fired generation by 2038 at the latest, but energy ministry BMWK said an earlier, market-driven phase-out by 2030 is possible . Grid regulator Bnetza said 21GW of new gas-fired capacity — which should in the future be hydrogen-ready — would be needed by 2031 for a complete coal phase-out. Utility Leag said it does not see the current government changing the legal phase-out deadline. But "any further delay" to adding controllable replacement capacities would create an "urgent" situation, it said. And utility EnBW told Argus that it remains committed to phasing out coal by 2038 at the latest, while adding that "security of supply must not be jeopardised". At a transmission system operators' (TSO) forum held in November, TSO Amprion's Peter Lopion said the KWSG is vital to encourage plant construction in the south, where more gas-fired capacity is crucial if coal is to be phased out. He also raised concerns about Germany's target to phase out gas-fired power by 2045 — the year in which the country aims to reach climate neutrality — given the lack of a hydrogen economy and hydrogen production. Earlier this month, the CDU/CSU opposition parties commissioned an investigation into the feasibility of reactivating decommissioned nuclear plants, seeing the shutdown of Germany's final nuclear plant in April 2023 as "ideologically wrong". EnBW has told Argus that the decommissioning of its 1.4GW GKN II plant — the dismantling of which began in May 2023 — is "virtually irreversible". By Bea Leverett and John Horstmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

German stakeholders doubt power plant strategy passing

03/12/24

German stakeholders doubt power plant strategy passing

London, 3 December (Argus) — The collapse of the German government on 6 November has led to uncertainty over the future of Germany's power market, particularly with regard to the passing of the power plant strategy (KWSG) before federal elections scheduled for 23 February. Under the power plant strategy, economic and climate ministry BMWK proposed tenders for the construction of 12.5GW of power plant capacity and 500MW of long-term storage over the next few years. This includes 10GW of hydrogen-ready gas-fired capacity, of which 5GW was planned to be offered next year, with the government aiming to hold tenders in early 2025 . Renewables association BEE announced on 26 November that BMWK had submitted a KWSG draft for industry consultation over 72 hours, indicating the minority government's urgent desire to enact the law before the elections. Incumbent energy minister Robert Habeck previously said politicians from the opposition CDU party had been "constantly" writing letters to ask when the power plant strategy would "finally" be passed. But the deputy head of the CDU/CSU, Jens Spahn, told an industry event last week that owing to the former coalition's sidelining of the opposition when drawing up the strategy, the CDU/CSU cannot be expected to support it. Utility EnBW told Argus in November that it expects the KWSG to be "supported" under the next government owing to a cross-party consensus on the need for more capacity. EnBW said it would be prepared to take part in the tenders "if the conditions allow it", whereas utility Leag told Argus that while "considerable progress" had been made in its preparations for the tenders, it is unable to do anything "concrete" until the regulatory framework has been clarified. But it voiced doubts over whether the KWSG will be passed before the elections. And utility RWE told Argus that while it would not "speculate" on the KWSG's passing, it will "not put planning efforts on hold" and will "proceed as usual" in its preparations. Vattenfall declined to comment, while Uniper was not immediately available. At an electricity market forum hosted by the country's four transmission system operators last month, grid regulator Bnetza's Tobias Lengner-Ludwig said that Bnetza and potential investors will need at least six months to prepare for the tenders, which could cause further delays. But in its position paper on the KWSG in response to BMWK's consultation, energy and water association BDEW said investing in the tenders in their current form is unattractive, as risks are too high owing to a potential lack of hydrogen supply, possible delays in the setting up of hydrogen infrastructure and short implementation timeframes. And while BEE told Argus that it does not expect the KWSG to be passed in this legislative period, it is not demanding its passage, as it views the proposal to invest in hydrogen-ready gas-fired plants unfavourably. Such a strong commitment to hydrogen risks fossil fuel lock-ins and high electricity prices, it said, particularly owing to the initially limited availability of green hydrogen. It said the government should focus on adding flexible renewable capacity by maximising the potential of existing sources, including hydropower, geothermal, battery storage and combined heat and power. German solar association BSW told Argus that alternatives to conventional generation — such as flexible bioenergy and storage systems — should be expanded to add dispatchable capacity. Even if the KWSG were passed in this legislative period, it would only have an impact in the early 2030s, it said. While clean spark spreads for lower-efficiency units for each year to 2027 have remained mostly negative this year, clean spark spreads for higher-efficiency units for 2025 turned negative in September after being in the money for most of 2024. And clean spark spreads for higher-efficiency units for 2026 and 2027 have averaged around €0.25/MWh and minus €1.40/MWh this year, despite the latter almost consistently being positive since the start of September. By Bea Leverett and John Horstmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

КМГ планирует производить SAF в Казахстане

03/12/24

КМГ планирует производить SAF в Казахстане

Riga, 3 December (Argus) — Госнефтехолдинг Казмунайгаз (КМГ) рассматривает возможность производства экологически чистого авиационного топлива SAF в Казахстане. Казмунайгаз — Аэро, дочерняя компания КМГ, заключила рамочное соглашение с казахстанской BioOperations о совместной реализации проекта по SAF, сообщил холдинг в ноябре. SAF в Казахстане планируется производить по технологии ATJ (Alcohol-to-Jet), учитывая наличие биоэтанола, производимого BioOperations на заводе в Северо-Казахстанской области. BioOperations экспортирует биоэтанол в европейские страны, доставляя около 3,5 тыс. т/месяц продукта по железной дороге из Казахстана в латвийский порт Лиепая. Начало выпуска SAF в Казахстане прогнозируется примерно в 2027 — 2030 гг., после того как крупные НПЗ перейдут на производство авиатоплива Jet A-1. Ежегодный объем выпуска SAF, как ожидается, превысит 50 тыс. т/год. Использование SAF возможно только при смешивании с авиатопливом Jet A-1. На сегодня все три крупных НПЗ готовы к производству авиакеросина Jet A-1. Для перехода на использование этого вида авиатоплива необходимо провести подготовку по международным стандартам всей авиационной инфраструктуры, от НПЗ до крыла самолета, включая хранение, транспортировку и процесс заправки. КМГ может в течение месяца перейти на выпуск Jet A-1 с нынешних РТ и ТС-1, — сообщил отраслевой источник. Потенциальное сотрудничество в производстве SAF в Казахстане обсуждается между лицензиарами технологий, производителями SAF и его потребителями, частным бизнесом и госкомпаниями. Ранее КМГ заключил меморандумы о сотрудничестве с LanzaJet — разработчиком технологии получения SAF из этанола и французской Axens. ________________ Больше ценовой информации и аналитических материалов о рынках нефти и нефтепродуктов стран Каспийского региона и Центральной Азии — в еженедельном отчете Argus Рынок Каспия . Вы можете присылать комментарии по адресу или запросить дополнительную информацию feedback@argusmedia.com Copyright © 2024. Группа Argus Media . Все права защищены.

French government faces no confidence vote

02/12/24

French government faces no confidence vote

London, 2 December (Argus) — The French government could be set to fall within days, leaving its energy programme up in the air, after far-right party Rassemblement National (RN) declared it would launch a vote of no confidence. Prime minister Michel Barnier today announced he would use a parliamentary manoeuvre to push through a budget for the social security system without a vote. Since his nomination in September, Barnier has been attempting to achieve consensus on state budgets for 2025, while lacking a majority in the parliament. Left-wing and right-wing groups responded to today's move by promising to launch motions of no confidence. The RN had previously tacitly supported Barnier, preserving him in office as he prepares the budget, which must be finished before the end of the year. A successful vote of no confidence on 4 December at the earliest would require 289 deputies, a majority of the national assembly, to vote in favour. A previous confidence vote on 8 October garnered 197 in favour, falling short. But the 121 RN deputies supported the government on that occasion, and their switch to the opposition could provide enough votes for the measure to pass. If the government falls, no new parliamentary elections can be held until June. President Emmanuel Macron could name a new prime minister, but this appointee would not have a majority either. And left- and right-wing groups have called on him to resign and trigger new presidential elections. If the budget does not pass, the government's energy programme could be delayed or ignored. A potential way forward out of the budget deadlock could be to pass a special budget law, which would carry forward measures already in place this year, extending them for a month at a time until a permanent budget can be voted through. Changes which could not go forward in this situation could include a mooted increase to the tax on electricity — taking it up to roughly €30/MWh from 1 February 2025, from current levels of €21-21.50/MWh. Others include changes planned to subsidies for domestic energy efficiency measures and electric vehicles. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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