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New E15 push expected from White House: Update

  • : Biofuels, Oil products
  • 18/09/24

Adds RIN price context.

President Donald Trump's administration will within weeks renew efforts to allow the year-round sale of higher-ethanol gasoline blends, according to multiple sources in biofuels and refining industries.

The administration will announce changes to allow the year-round sale of 15pc ethanol gasoline in October, according to sources familiar with the plan but not authorized to discuss it publicly. Exactly what they would offer US refiners and importers to support the change remained unclear and under discussion today. Strategies for quick approval of the change risk an almost certain court challenge.

Neither the White House nor the Environmental Protection Agency (EPA), which administers the fuel regulations, responded to questions about the plan.

US air quality laws restrict gasoline's Reid Vapor Pressure (RVP) — a measure of how easily the fuel evaporates — in certain markets during high-demand summer months. The law included a specific waiver for gasoline with up to 10pc blends of ethanol.

Ethanol groups seeking greater market share have demanded EPA expand that waiver to 15pc blends.

Approving the waiver could ease some of the farm-country displeasure with Trump administration trade actions ahead of fall elections. Battles with China have cut off major soy and corn markets for US farmers. Agribusiness and renewable fuels companies have pushed the administration, rather than Congress, to make the change.

Refiners have said they would support a change — as a package with changes that reduce their costs or obligations under the program.

But industry representatives have repeatedly warned that any unilateral change to the waiver would head to court. Critics of the environmental consequences of the change, including US senators Peter Welch (D-Vermont) and Tom Udall (D-New Mexico) also warned that the EPA could not make such a change.

"Previously, EPA has publicly concluded that it does not have the statutory authority to issue such a waiver, and the reported decision to reverse this conclusion appears to be driven by political considerations, rather than scientific or legal analysis," the senators said in July. "The plain reading of the Clean Air Act and EPA's long-standing interpretation strongly suggest that EPA lacks authority to unilaterally allow year-round sales of E15."

Agriculture supporters carefully targeted Pruitt, not Trump, in this year's push for the waiver. Senators and trade groups singled out the increasingly embattled administrator, casting him as interfering with presidential directions drawn from occasional Trump comments in support of the policy this year. But acting administrator Andrew Wheeler has not moved on the proposal since assuming EPA leadership in July. Agriculture secretary Sonny Perdue told farmers in Iowa last month that Trump supported the change as part of a larger fuel sector bargain.

Increasing fuel blending would increase the number of available renewable identification numbers (RINs) needed to comply with federal fuel blending mandates called the Renewable Fuel Standard. The risk of more RINs has helped to pressure already-low prices for the credits lower. RINs associated with ethanol blending fell by 8pc to 14.5¢/RIN today, the lowest settlement since late January 2013, based on Argus assessments.


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25/02/21

Republicans target US energy rules for disapproval

Republicans target US energy rules for disapproval

Washington, 21 February (Argus) — Republican leaders in the US House of Representatives hope to disapprove at least seven energy-related measures issued under former president Joe Biden using a filibuster-proof process created under the Congressional Review Act. House majority leader Steve Scalise (R-Louisiana) on Thursday released a list of 10 rules that his party has prioritized as "potential targets" for disapproval votes, which require only a simple majority to pass in each chamber. Republicans previously used the law in 2017 to successfully unwind more than a dozen rules, and they hope to do so again to repeal Biden-era rules they say will unnecessarily raise costs on businesses and consumers. A US Environmental Protection Agency (EPA) regulation that implements a $900/t charge on oil and gas sector methane leaks is among the rules that Republicans want to disapprove. If those implementing rules are scrapped, it would provide a temporary reprieve from a 31 August deadline for operators having to pay billions of dollars in potential fees on methane emitted in 2024. Republicans hope to vote later this year to permanently end the methane charge, which was created by the Inflation Reduction Act. House Republicans also hope to disapprove an offshore oil and gas safety rule for drilling in deepwater "high pressure, high temperature" environments that Scalise's office says will increase "burdens on energy operations". Other rules that Republicans will target for disapproval are energy conservation for gas water heaters, energy efficiency labeling standards and air pollution restrictions on rubber tire manufactures. Two of the energy measures House Republicans say they plan to target might not qualify for disapproval under the Congressional Review Act, which can only be used on a "rule". The first is a waiver that would allow California to boost in-state sales of electric vehicles and plug-in hybrids, and that President Donald Trump's administration has tried to make eligible for repeal. The second is the US Commodity Futures Trading Commission's decision to release voluntary guidance for exchanges that allow trading of carbon offset futures. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Atoba to offtake SAF from Haffner Energy in France


25/02/21
25/02/21

Atoba to offtake SAF from Haffner Energy in France

London, 21 February (Argus) — French renewable fuel producer Haffner Energy announced a new sustainable aviation fuel (SAF) long-term offtake agreement with SAF aggregator Atoba Energy. The two companies will also collaborate on SAF production, although Haffner is yet to disclose further details of the partnership. Atoba will offtake "a good proportion" of SAF from Haffner's 60,000 t/yr production facility at Paris-Vatry airport, Haffner global chief marketing officer Marcella Franchi told Argus . "[The partnership with Atoba] will facilitate the financing of our SAF projects, starting with Paris-Vatry", chief executive Philippe Haffner said. The Paris-Vatry project is a collaboration between the French firm and production pathway developer LanzaJet. The plant, which is due to begin operations in 2028, will use an alcohol-to-jet production pathway. To meet EU SAF regulations, the feedstock will be advanced, drawn from Annex 9 list A of the EU Renewable Energy Directive (RED II). The ATJ pathway will convert syngas, produced from the feedstock's initial treatment, into ethanol, which will then be turned into SAF using LanzaJet's processes. Last year, Haffner revealed it is creating a SAF spin-off entity called SAF Zero. Haffner will license its SAF production technology to the entity and "aims to remain a shareholder" in SAF Zero. The latter will license Haffner's technology for an upfront fee and royalty agreement. In addition, Haffner has undisclosed SAF projects for biogenic SAF and e-SAF in the US, Europe, Africa and Asia-Pacific. EU-wide SAF mandates kicked in at 2pc this year, rising to 6pc by 2030. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Chinese biomethanol producers target marine fuel market


25/02/21
25/02/21

Chinese biomethanol producers target marine fuel market

Singapore, 21 February (Argus) — Chinese green energy firms have been developing biomethanol plants to supply the maritime sector, and view green methanol as an attractive option to decarbonise shipping, said speakers at the Argus Green Marine Fuels Asia conference in Singapore on 18-19 February. Used cooking oil (UCO) methyl ester (Ucome)-based marine biodiesel and green methanol are expected to be the main alternative marine fuels in the next decade, according to founder of biofuel brokerage Motion Eco, Shutong Liu. But biomethanol is likely to grow in importance because of the limited supply of feedstock UCO, which will need to be shared across bio-bunkering, on-road and aviation fuel demand. Chinese green methanol suppliers have announced more than 100 projects to produce over 30mn t/yr of green methanol, according to Liu. The planned projects comprise 12mn t/yr of biomethanol and 18mn t/yr of e-methanol capacity. Energy, chemical engineering and food equipment firm CIMC Enric, for example, is constructing a biomethanol plant to produce 50,000 t/yr by the fourth quarter of 2025 in Zhanjiang in Guangdong with a planned capacity increase to 200,000 t/yr by 2027, said the company's director David Wang. The factory has 20,000t of storage capacity for biomethanol, Wang added. Chinese wind turbine supplier and biomethanol producer GoldWind will start up two 250,000 t/yr biomethanol plants , with one unit starting up by the end of 2025 and the other in late 2026, said the company's vice-president Chen Shi. Biomethanol is produced by converting biomass into syngas through gasification, often with the addition of green hydrogen, before reacting with a catalyst to produce methanol. E-methanol is produced by combining captured CO2 with green hydrogen, but is considered far less commercially viable than biomethanol because of higher production costs and less established technology. Both alternatives can be blended with fossil methanol for marine fuel usage because of their identical molecular properties to the conventional fuel. Money matters Panellists said a slowing Chinese economy and high investment costs remain a barrier for suppliers to ramp up biomethanol production. Securing long-term offtake agreements with reputable end-users is often needed to progress green fuel production projects at scale, said Swire's shipping and bulk chief sustainability officer, Susana Germino. Chinese biomethanol producers have also sought long-term offtake agreements with shipowners to move to final investment decisions (FID) on their projects, Chen said. GoldWind signed a long-term offtake agreement for biomethanol with Danish container shipper Maersk in 2023, and reached an FID on its biomethanol unit in Inner Mongolia the following year. But pricing these contracts remains a challenge. Green methanol must benchmark against its main rival marine biodiesel to attract buyers, Liu said, despite its higher production costs. Even then, marine biofuels are often more attractive as they are operationally easier to bunker, he added. By Malcolm Goh and Lauren Moffitt Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil, biofuel lobbies unite for ‘robust’ RFS: Update


25/02/20
25/02/20

Oil, biofuel lobbies unite for ‘robust’ RFS: Update

Updates with comments from trade groups, details throughout. New York, 20 February (Argus) — Oil and biofuel groups, at loggerheads years ago over the federal Renewable Fuel Standard (RFS), have united around a call for US regulators to set "robust" biofuel blend mandates for future years. A diverse coalition of 11 trade associations — including the American Petroleum Institute, Clean Fuels Alliance America, farm groups, and fuel marketers — said in a Wednesday letter to the Environmental Protection Agency (EPA) that the RFS is a way to "advance liquid fuels" and "ensure consumers have a choice of how they fuel their vehicles". They want EPA, which is behind schedule on setting volume mandates for 2026, to set multiyear standards that better reflect recent growth in feedstock availability and production capacity than past RFS regulations. "We're trying to send a signal to the administration: hey, we're in more agreement than we used to be," American Petroleum Institute vice president of downstream policy Will Hupman told Argus . "We want to work constructively with you on this. We understand we're going to need all energy sources and supplies." The letter reflects the increasingly aligning interests of groups that formerly split over biofuels. Many oil companies that opposed the RFS in its early years have since invested heavily in fuels like renewable diesel, making strong government biofuel mandates crucial for their businesses, too. And producers of petroleum and biofuel products alike fear that rising electric vehicle adoption, aided by policies during the administration of President Joe Biden, could curb liquid fuel demand. It is unclear how durable any coalition of oil, biofuel, and farm groups will prove, especially for more divisive issues like RFS exemptions for small refineries. The oil industry is not united either, since small merchant refiners with less ability to blend biofuels have generally been more hostile to the RFS than larger integrated companies. The American Fuel and Petrochemical Manufacturers, which did not sign the letter, said that it looks forward "to engaging with EPA and other stakeholders to set realistic and achievable RFS standards anchored in the law". Still, the letter reflects some attempt among the signatories to downplay disagreements that surfaced around past RFS rules, signaling to President Donald Trump's administration that it need not delay program updates. The groups say they support, for instance, "strong, steady volumes" of not just biomass-based diesel and advanced biofuels but conventional biofuels too. While refiners can meet conventional obligations by blending excess amounts of lower-carbon fuels from other program categories, oil interests have previously criticized EPA for setting conventional requirements above expected corn ethanol consumption. The prior US administration set a plan for proposing new RFS volumes next month and finalizing them by the end of 2025 , though it is unclear whether Trump officials plan to meet that timeline. Two biofuel groups have sued EPA over its delays setting new mandates, a process which in the past has resulted in the government and industry coming to a negotiated agreement around a new timeline. Under the RFS program, EPA sets annual mandates for blending different types of biofuels into the conventional fuel supply. Refiners comply by blending biofuels themselves or buying credits from those who do. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US cites 'energy emergency' to expedite water permits


25/02/20
25/02/20

US cites 'energy emergency' to expedite water permits

Washington, 20 February (Argus) — President Donald Trump's administration is citing an "energy emergency" as the basis to fast-track nearly 700 water permits, including those tied to a tunnel for Enbridge's Line 5 pipeline, LNG infrastructure projects, solar farms and electric transmission lines. Trump declared a national energy emergency on his first day in office, unlocking permitting powers that are typically used in response to natural disasters. The US Army Corps of Engineers has subsequently reclassified hundreds of permit applications for review under expedited emergency procedures, in a move that environmentalists say they plan to challenge in court based on violations of the Clean Water Act and Endangered Species Act. "The Trump administration is planning to skirt legally-required review processes in order to fast-track permits for dirty energy projects under the guise of an energy ‘emergency'", Sierra Club policy director Mahyar Sorour said. The Corps is responsible for issuing water permits for projects that cross streams, rivers, wetlands and other water bodies. Issuing permits sometimes requires the agency to prepare a detailed environmental review that is open to comment and can take years to finish. The water permits classified for emergency treatment include a repair project for Sabine Pass LNG in Louisiana, dredging for Elba Island LNG in Georgia, temporary construction related to Port Arthur LNG in Texas, solar projects in dozens of states, and pipeline projects ExxonMobil is pursuing in Texas. Enbridge delayed construction of a protective tunnel for its Line 5 pipeline to 2026 because of water permitting delays . But environmentalists say the administration cannot cite an energy emergency — which they say does not exist — as justification to bypass permitting rules prescribed by the US Congress. The Corps has also provided emergency treatment to projects with no apparent connection to energy production, such as a housing project in southern California and a gold mine in Idaho, according to an online database. The Corps did not respond to detailed questions but said it was "in the process of reviewing active permit applications relative to the executive order." Congress is continuing to lay groundwork for a bipartisan permitting bill that supporters say could make it faster and cheaper to build pipelines, power plants, electric transmission lines, renewable energy projects and transportation infrastructure. But Democratic leaders are threatening to vote against such a bill so long as Trump continues to "pause" billions of dollars in funding for clean energy projects provided by the Inflation Reduction Act and other laws. "Until the administration shows it will honor its oath to faithfully and impartially execute the laws, we can have zero confidence that any legislative compromise on permitting reform will be executed lawfully," US senator Sheldon Whitehouse (D-Rhode Island) said at a permitting hearing on 19 February. Oil industry and renewable groups are continuing to push for a comprehensive permitting bill, which they say would bring down project costs and help the US meet surging electricity demand from data centers and manufacturers. Permitting changes are "needed for all technologies, and they are needed to meet our energy demand in the future," Business Council for Sustainable Energy president Lisa Jacobson said. "You can't walk away from those facts or that imperative." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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