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Avril shuts biodiesel plants as profits evaporate

  • : Biofuels, Oil products
  • 20/04/20

Leading French biodiesel (RME) producer Groupe Avril has temporarily shut in an unspecified amount of its production as demand and profits dive, a result of the Covid-19 pandemic and resulting movement restrictions.

Avril chief executive Jean-Philippe Puig said the firm has "only three plants currently in operation" out of six. Avril has yet to respond to questions over which plants have been shut. The firm has units at Bassens, Sete, two at Rouen, Lezoux and Le Meriot. Capacity is around 1.4mn t/yr.

Puig cited a fall of 60pc in diesel-powered vehicles on the roads this month, which has cut demand for biodiesel blending. The drop in the price of biodiesel has been sharp, but this has not been matched by a corresponding fall in the price of rapeseed oil, making biodiesel production uneconomic. "The prices are catastrophic and are at a level where we should stop everything. We have had prices drop below zero," he said.

Puig says biodiesel orders for April into May have also declined sharply.

Avril is also a major rapeseed crusher and vegetable oil producer, but its volumes of rapeseed oil destined for production of biodiesel are now lying spare. "We are trying to find outlets to export the oil," said Puig. The company has looked at trying to export cargoes to China, according to Puig.

Avril has already said that a 250,000 t/yr biodiesel train at its plant in Rouen — one of two similar-sized units at the plant — would not be brought back on stream yet, following a fire in March.

The rise in imports of biodiesel in France has been a long term issue for the company. It prompted Avril to look to either offload plants or attract partners into its domestic biodiesel production last year. In November it said it had posted losses of €133mn ($145mn) in three years at its biodiesel division.


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25/03/18

NWE HVO paper trade at record high on mandates, policy

NWE HVO paper trade at record high on mandates, policy

London, 18 March (Argus) — Higher mandates and policy changes are poised to continue to support Northwest Europe HVO paper market liquidity, after a record high of 42,000t of hydrotreated vegetable oil (HVO) Class II Ice futures contracts was traded on 14 March. HVO Class II fob ARA trading activity on the Intercontinental Exchange (Ice) rose as European fuel suppliers increasingly seek renewable diesel made from used cooking oil (UCO) to meet higher mandates and overcome the 7pc restriction for blending conventional methyl ester biodiesel into diesel. The total traded volume for the first two weeks of March (1-14) was 120,000t, close to the previous full-month high in January of 138,000t (see chart). The Ice contract — a cash-settled future that settles based on Argus spot price assessments — launched in 2022 as both a differential to Ice low sulphur gasoil and outright, with the former most commonly traded. Physical HVO interest has been more measured through the beginning of 2025, although spot trade rose year on year. Changes to key biofuels policies in Germany and the Netherlands are expected to support overall demand and anticipation of this has supported HVO paper liquidity. Germany has paused the carryover of surplus tickets that would otherwise go towards meeting its greenhouse gas (GHG) savings quota, meaning obligated parties will have to use more physical biofuels to meet mandates, while the Netherlands has limited the amount of tickets allowed to be carried from year to year, driving a similar dynamic. The start of the year is often a slower physical trading period in northwest Europe as market participants look to finish off compliance submissions for the previous year. Anticipating changes to ticket carryover policies, some physical biofuels were stored in tank to be used at the start of the year, particularly in Germany, suppressing prompt demand. Class II HVO has also been affected by high feedstock prices, which have pressured production margins, and strong imports from east of Suez. Ticket values in Germany and the Netherlands have been below the equivalent cost of blending physical Class II HVO, further limiting demand. In the Dutch market HBE-IXB prices have been pressured by supply of UCO-based sustainable aviation fuel (SAF) blends, which generate 2.4 HBEs per GJ as per the biofuel portion, while German ticket prices have been affected by lower diesel demand and a focus on finishing off 2024 balances. The prompt/front-month price spread for Class II, which gives an indication of the prompt market's strength or weakness, has been volatile for the past month according to Argus assessments (see chart). The spread flipped into contango for the first week of March following a supply surge which weighed on European prices , then returned to backwardation as HVO prices tracked UCO and UCO-based biodiesel prices higher. Prompt UCO prices have in turn been supported by tighter global supply following a protracted export ban from Indonesia, which is still expected to be temporary, contributing to the forward curve backwardation. HVO paper trading on 14 March focused on the upcoming three months. An April/May spread traded at $10/t ($1,055/t, $1,045/t) for 5,000t/month, or 10,000t total, a May/June spread traded at $5/t ($1,045/t, $1,040/t) for 13,000t/month, or 26,000t total, and a second quarter contract traded at $1,065/t for 2,000t/month, or 6,000t total. All of the trades were as premiums to front-month Ice gasoil. By Simone Burgin HVO Class II AOM and Ice monthly totals t HVO Class II fob ARA range prompt and month 1 t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India's base oil imports rise in 2024


25/03/18
25/03/18

India's base oil imports rise in 2024

Singapore, 18 March (Argus) — India's base oil imports rose by 15pc on the year to 2.71mn t in 2024, data from GTT show. Lower domestic production, because of plant maintenance, and higher finished lubricant consumption boosted imports in 2024. Consumption of lubricant and grease increased by 8pc on the year to 4.44mn t in 2024, oil ministry data show. India's base oil imports fell by 19pc on the year to 201,734t in December 2024. Lower-than-expected demand at the end of the year, owing to slowing economic growth in India, likely caused the decline. Base oil imports in December were largely stable as compared with the previous month. South Korea remains the top supplier to India, with imports exceeding 1.15mn t in 2024, a 27pc increase from the previous year. But imports from South Korea dropped by 28pc on the year to 82,989t in December because of reduced supply, with a key refiner having maintenance in the fourth quarter of 2024. Imports from Singapore and Taiwan increased by 25pc and 28pc respectively in 2024. Asian suppliers are diverting supply to other markets with falling demand from China. The Mideast Gulf remains a key supply region, supplying close to a quarter of India's imports in 2024. Saudi Arabia and the UAE are among top suppliers. By Chng Li Li India base oils imports unit Dec'24 m-o-m ± % y-o-y ± % Jan-Dec 24 y-o-y ± % South Korea 82,989 -9.7 -27.5 1,150,234 27.1 Singapore 41,656 129.7 69.4 399,599 25.1 Saudi Arabia 25,738 18.7 20.1 251,387 -9.0 UAE 17,198 -38.2 -30.3 266,178 18.1 Taiwan 14,221 9.4 213.7 115,877 28.0 Monthly total 201,734 -0.4 -18.8 2,713,623 14.6 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan's JAL, Airbus join Japanese biofuel joint venture


25/03/18
25/03/18

Japan's JAL, Airbus join Japanese biofuel joint venture

Tokyo, 18 March (Argus) — Japan Airlines (JAL) and European aircraft manufacturer Airbus have joined a Japanese joint venture to produce bioethanol from domestic woody material, for use as a feedstock for sustainable aviation fuel (SAF). Joining the project will help JAL meet its target of replacing 10pc of its conventional jet fuel with SAF by 2030, JAL announced on 17 March. It will also help Airbus to achieve its net zero emissions goal by 2050. JAL will build supply chains of biofuel to support the project, and Airbus will help obtain international certification for the woody material-based fuel as SAF. The project was originally proposed in February 2023 by Japanese paper producer Nippon Paper Industries, trading house Sumitomo and domestic biorefinery venture Green Earth Institute. The companies agreed in February 2025 to set up a joint venture, Morisora Bio Refinery , to push forward with a plan to develop domestic SAF supply chains. The companies plan to launch the joint venture in March and start producing bioethanol from local wood chips at Nippon Paper's Iwanuma Mill in the country's northeastern Miyagi prefecture in 2027. Commercial operations are scheduled to begin by around 2030. Morisora will supply bioethanol mainly for SAF production, with expectations that it will be also used in gasoline blending, fuel cells, cosmetics and chemical feedstock. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump set to meet with oil, gas executives


25/03/17
25/03/17

Trump set to meet with oil, gas executives

Washington, 17 March (Argus) — President Donald Trump is scheduled to meet this week with US oil and gas executives to discuss policies that would help achieve "energy dominance", according to an industry group participating in the meeting. Trump and his team are scheduled to meet on Wednesday with executives that serve on the leadership committee of the American Petroleum Institute (API) and staff from the influential industry group, API said. Trump has enjoyed close ties with many oil executives, who have supported his regulatory initiatives and tax cuts, even as his tariff policies have raised concerns among some industry officials. "We appreciate the opportunity to discuss how American oil and natural gas are driving economic growth, strengthening our national security and supporting consumers with the President and his team," API said. The White House did not respond to a request for comment. The upcoming meeting is set to broadly focus on how to achieve Trump's goal for "energy dominance". API last year released a detailed policy roadmap, with plans to scrap regulations that would require more electric vehicles, restart licensing of US LNG export facilities, expand offshore oil and gas leasing, repeal a new $900/t fee on methane leaks, expedite permitting and e retain corporate tax cuts from 2017. The Trump administration has already accomplished some of those policies, and is starting work on others. The White House sees cutting energy prices through deregulation and expanded leasing as part of its strategy to ease inflation. Trump last week said he was "very happy" with oil prices at $65/bl, while US treasury secretary Scott Bessent has set a target of $50/bl. But producers would have to crimp production in the Permian basin at that price, former Pioneer Natural Resources chief executive Scott Sheffield said last week. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK launches anti-dumping probe into US-origin HVO


25/03/17
25/03/17

UK launches anti-dumping probe into US-origin HVO

London, 17 March (Argus) — The UK today began an anti-dumping investigation into hydrotreated vegetable oil (HVO) from the US. An application for the investigation was lodged by the UK Renewable Transport Fuel Association (RTFA) and UK-based biofuels producers Greenergy, Argent Energy and Olleco. The goods subject to investigation are "biodiesel obtained from synthesis or hydrotreatment of oils and fats of non-fossil origin, in pure form or as included in a blend". The UK trade remedies authority (TRA) specified that sustainable aviation fuel (SAF) is excluded from this definition. The investigation period spans from 1 January 2024 to 31 December 2024. During this time, the applicants allege HVO was imported into the UK at prices below the "normal value". They say this alleged dumping led to an actual and potential decline in production, domestic sales, and profitability. The UK removed transposed EU anti-dumping and countervailing duties on imports of HVO from the US and Canada in 2022. The EU first imposed anti-dumping duties for US-origin HVO in 2009 , and the current duties are in place until August 2026. Those in the market said the effect of the UK investigation is being mitigated by proposed guidance on the US 45Z clean fuel production credits released earlier this year. This has already slowed discussions around new imports of US-origin HVO into T1 duty markets. The guidance does not allow US producers to claim the tax credit using imported used cooking oil (UCO), meaning US supply of UCO-based HVO could decrease or be reserved for the domestic market, participants said. HVO, or renewable diesel, is a drop-in biofuel that can go well beyond the European 7pc blend wall for biodiesel. UK HVO consumption increased by 38pc on the year in 2024 to 699mn l, according to the latest provisional release of UK Renewable Transport Fuel Obligation statistics . This was mostly due to increased imports of US-origin HVO, according to market participants. Interested parties must register by 1 April, after which they will be able to submit comments. The TRA aims to make a final recommendation in March 2026. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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