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California LCFS gives options to claim EV credits

  • : Biofuels, Electricity, Emissions, Oil products
  • 19/03/27

California Low-Carbon Fuel Standard (LCFS) credits from electricity may get a boost this year, as regulators look to make it easier to document electric vehicle (EV) charging from clean energy sources.

Utilities, automakers and others can use meters or vehicle data to claim additional LCFS credits from residential EV charging that uses electricity with a low carbon intensity, the Air Resources Board (ARB) said in a 25 March guidance.

The ARB added "incremental" credits to the LCFS this year to encourage EV charging during periods of low demand on the grid, or from renewable sources. The entities supplying the electricity, or the manufacturer of the vehicle associated with the charging station, can claim a lower carbon intensity score and generate more LCFS credits.

The agency currently awards "base" credits for EV charging using the average carbon intensity score for California's electric grid, set at 93.75g CO2e/megajoule this year.

Electric utilities, or the "load serving entity," get first priority for the incremental credits, followed by the automakers, despite efforts from EV maker Tesla to move to the front of the line.

Those entities using meters to claim incremental LCFS credits must be able to measure the quantity of electricity dispensed to an EV over a quarter. Data from the vehicle must be able to differentiate between usage of home and public chargers, to prevent double counting.

The number of LCFS credits generated by electricity has risen steadily as EVs have grown in popularity. The alternative fuel trailed only ethanol and renewable diesel in the third quarter of 2018, with just over 370,000 metric tonnes of credits — an 82pc increase from the same period the year prior.

The California LCFS requires a 20pc reduction in the carbon intensity of transportation fuels by 2030.

The ARB will meet on 5 April to discuss the next round of updates to the program, including a possible hard price ceiling.


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24/09/26

Low Argentina rivers lift Brazil biodiesel

Low Argentina rivers lift Brazil biodiesel

Sao Paulo, 26 September (Argus) — A drop in river levels in Argentina's Parana upriver region amid a historical drought has snarled transport and inflated soybean oil and biodiesel prices in Brazil. The depth of the Parana River in Argentina's San Lorenzo city, a major hub for soybean oil shipments, dropped to 9.44m (30ft) on 20 September, the lowest level since January 2023, according to information provided by maritime agencies T&T and Antares. The lower river flow is forcing soybean oil traders to reduce how much product they load onto tankers that stop at Argentinian ports by between 5-12.5pc, according to Argentina market sources. A 12.5pc capacity reduction on a standard tanker would mean a loading 28,000 metric tonnes (t) instead of 32,000t. These restrictions have affected the Brazilian soybean oil and biodiesel market, as trading companies seek additional volumes in Brazilian seaports to complete shipments for export. A change in Chicago Board of Trade (CBOT) differentials at the port of Paranagua was first observed on 27 September, when the premium for selling soybean oil for shipment in October rose to 8¢/lb in relation to the future contract traded on the CBOT. Earlier in the week, offers were close to 1.8¢/lb. On 25 September, negotiations ranged between premiums of 2.5-5.5¢/lb in relation to the soybean oil future contract due in October, corresponding to prices between $1,034-1,100/t fob Paranagua. Last week, the Argus fob Paranagua indicator closed between $934-1,009/t. Soybean availability in the Brazilian market is reduced amid strong demand in the domestic market, driven by an increase in the biodiesel blending mandate to 14pc from 12pc in March. The rise in domestic demand has also reduced the competitiveness of Brazilian exports, contributing to a drop in soybean oil shipments to ports. Brazil's association of vegetable oil industries Abiove predicts that 2024 exports will total 1.15mn t, nearly half of the volumes dispatched in 2023. Lever effect The low availability of soybean oil in the Brazilian market was concerning market participants even before the deterioration of the situation in Argentina. The price of soybean oil for export is the main factor in the price equation for most supply contracts between biodiesel producers and distributors. Logistics problems associated with a lower Parana River contribute to the imbalance between increased demand for soybean oil in the biodiesel sector and a shortage of product in the market. Soybean oil is the main input for biodiesel production in Brazil, accounting for 72.5pc of all feedstocks used in national production in the first eight months of 2024, according to data from hydrocarbons regulator ANP. And rising soybean oil prices tend to boost prices of other raw materials, such as beef tallow, which represented 6.5pc of biodiesel inputs in the same period. Faced with the rising cost of inputs, Brazilian biodiesel plants have been prioritizing the delivery of volumes contracted for the September-October supply period and the delivery of overdue volumes for the previous bi-monthly period. That has limited the availability of spot market volumes. This sudden rise in the price of soybean oil in Paranagua has also reduced the domestic market premium in relation to the export market. This makes it more attractive for regional producers to sell product abroad. By Amance Boutin and Joao Marinho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Aug wildfires in Brazilian state surge eightfold


24/09/26
24/09/26

Aug wildfires in Brazilian state surge eightfold

Sao Paulo, 26 September (Argus) — Fires in Sao Paulo, Brazil's most populous state, increased eightfold in August from the same month last year, an "alarming rate" amid extreme climate conditions that harm the sugarcane industry, sector associations said. The state had 11,628 fire outbreaks last month, more than triple the historic average of 3,550. Nearly half of the fires took place on 23 August alone, according to data from industry association Canaoeste and fire monitoring network GMG Ambiental. Fires hit 658,600 hectares. The town of Pitangueira had the most blazes, at 354. Altinopolis and Sertaozinho came in second and third, with 252 and 296, respectively. Nearly all of the most affected towns have high production of sugarcane. The groups highlighted that 20-24 August fires happened as low humidity, high temperatures and strong winds put Sao Paulo in "extreme risk" for wildfires. The data was shown in a meeting with several industry representatives, such as Canoeste, Unica and Orplana. The groups added that sugarcane producers were not responsible for the fires nor were benefiting from them, defending themselves from accusations that they could be lighting fires to accelerate harvesting — an old common practice supposedly abolished. By Maria Ligia Barros Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

New York picks WCI for carbon market platform


24/09/26
24/09/26

New York picks WCI for carbon market platform

New York, 26 September (Argus) — New York state will use the Western Climate Initiative (WCI) platform when administering its economy-wide carbon market, the latest sign that regulators in the state are looking to align program elements with systems in other North American carbon markets. Regulators from Quebec and New York announced the agreement on Wednesday at the International Emissions Trading Association's North American Climate Summit, an event on the sidelines of the UN General Assembly and Climate Week NYC. After a competitive process to select a platform for its market, New York state reached a deal this week to lean on the WCI for its "market registry platform, the auction platform, and financial services", New York State Department of Environmental Conservation deputy commissioner Jon Binder said. The WCI nonprofit provides the market infrastructure for California and Quebec's linked carbon market, as well as for a similar program in Washington state where regulators are weighing a potential linkage with the other two. Any eventual linkage with New York's program, which could see compliance obligations start in 2026, would be made easier by all the jurisdictions utilizing the same system for administering their respective programs. The decision does not "necessarily mean these programs are linking," but New York is "happy to keep those conversations going in that regard," Binder said. Nova Scotia, which wound down its cap-and-trade program last year, used the WCI platform for auctions without linking its programs with any other jurisdictions. "It doesn't mean that New York will link with us," said Jean-Yves Benoit, chair of the WCI board and the director general of carbon regulation and emissions data at Quebec's environment ministry. "Although I would be very happy if we issue a joint press release next year saying that." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US trucking index at 18-month high in August: ATA


24/09/25
24/09/25

US trucking index at 18-month high in August: ATA

Houston, 25 September (Argus) — US trucking freight volumes rose in August to the highest level since February 2023, the American Trucking Association (ATA) said. The ATA's seasonally adjusted Truck Tonnage Index (TTI) rose in August by 1.8pc from a month earlier and by 0.7pc from a year earlier. The index has increased on a monthly and yearly basis only twice in the past 18 months, last doing so in May 2024 . August's "robust gain" indicates freight levels are rebounding from a bottom, according to ATA economist Bob Costello. The TTI's month-to-month movement so far this year also shows the freight market is "at an inflection point," Costello said. The US trucking industry contracted in 2023 and initially got off to a slow start this year. Last week, the Federal Reserve cut its target lending rates for the first time in four years , suggesting the worst inflationary pressures may be over. The TTI is calculated monthly using a survey of ATA membership to estimate seasonally-adjusted trends in the value of US truck freight. Trucking comprises roughly three-quarters of tonnage carried by all modes of transportation in the US, and so can serve as an indicator of the health of the transportation sector and the economy at large. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Vertex Energy files for bankruptcy, seeks sale


24/09/25
24/09/25

Vertex Energy files for bankruptcy, seeks sale

Houston, 25 September (Argus) — Specialty refiner Vertex Energy has filed for chapter 11 bankruptcy in a US court following a failed foray into renewable fuels production at its 88,000 b/d Mobile, Alabama, refinery. Vertex has entered into a restructuring support agreement with its lenders and secured $80mn of new funding to finance its day-to-day business operations, the company said late Tuesday. The refiner is also considering a "more value-maximizing sale transaction" and expects to confirm its chapter 11 bankruptcy plan by the end of the year, according to the 24 September press release. Vertex announced in May this year that it would "pause" renewable diesel production at its Alabama refinery and return the unit to producing fossil fuel products. The company later said it would use a third quarter turnaround to return the Alabama plant's converted hydrocracking unit to processing fossil fuel feedstocks and be back online in the fourth quarter. Vertex also operates a re-refinery near New Orleans, Louisiana, that produces low-sulfur vacuum gas oil (VGO) and multiple used motor oil (UMO) processing plants and collection facilities along the Gulf coast. Refiners have faced mixed fortunes in recent years with their investments in renewable fuels after a glut of new supply flooded markets and depressed renewable credit prices. US independent refiner Delek announced in August that it is temporarily idling three biodiesel plants in Texas, Arkansas and Mississippi as it explores alternative uses for the sites. Chevron said earlier this year it was indefinitely closing two biodiesel plants in Wisconsin and Iowa due to market conditions. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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