Brazil eyes sustainable shipping fuel market

: Biofuels
20/11/16

Brazil is looking to ride a wave of sustainable marine fuel as part of the shipping industry's effort to halve maritime carbon emissions by 2050.

Talks are still underway on which new fuels will dominate the international shipping industry in the coming decades, but Brazil's pioneering role in biofuels is expected to spill over into this emerging segment of the maritime fuels market, Lavinia Hollanda, founder of the local energy consultancy Escopo Energia, said during a recent webinar on the sustainable shipping fuels.

In the context of the Paris climate accord, the International Maritime Organization (IMO) aims to reduce CO2 emissions produced by international shipping by 70pc by 2050 and reduce overall greenhouse gas emissions by 50pc by 2050. The ambitious targets have spawned discussions about potential fuels that could replace heavy fuel oil, which accounts for about 80pc of the sector's emissions, and marine gas oil that represents about 20pc.

Hollanda said early talks have narrowed the potential candidate fuels to five finalists that they hope will be narrowed to two or three global trendsetters. Among the early candidates are Fischer–Tropsch diesel, hydrated vegetable oil (HVO) or green diesel, and straight vegetable oil (SVO) or biodiesel.

Brazil mainly uses soybeans to meet a current 12pc biodiesel blend that is scheduled to rise to 13pc in March 2021.

The other two potential sustainable maritime fuels are compressed biogas and hydrodiesel, a hydrogen-based diesel fuel. Brazil's biogas production is starting to take off with rising investment from the sugar and ethanol industry as well as landfill-based projects.

Brazil still needs to hash out regulatory details for these fuels, according to Heloisa Borges Esteves, director of oil, gas and biofuels at the Brazilian government's energy research company Epe. "Ninety percent of global trade is carried by ships, including food and fuel, which makes sustainable fuels for the maritime transport industry very complex," she said in the webinar, adding that each country will have different available feedstocks to use for sustainable maritime fuel production.

She added the drop-in fuels will be key in the market, adding that Brazil already expects to expand green diesel production over the next decade.

If the global shipping industry were a country, it would be the sixth biggest emitter of CO2 in the world, Borges said.

The discussions about sustainable marine fuels are taking place as Brazil works on legislation to incentivize coastal shipping as an alternative to trucking. The proposal includes increased access of foreign vessels and lower taxes on marine fuel.

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25/04/04

Indústria de SAF no Brasil deve decolar em 2027

Sao Paulo, 4 April (Argus) — A indústria de aviação brasileira está atenta às regulações para o combustível sustentável de aviação (SAF, na sigla em inglês), enquanto o mercado doméstico aguarda o início da produção local para cumprir com o plano de mandato de mescla e com o potencial de exportação. A Lei do Combustível do Futuro visa aumentar as mesclas obrigatórias de biocombustíveis para reduzir as emissões de gases de efeito estufa (GEEs) em voos domésticos no período de dez anos, a começar por 2027. O Brasil se comprometeu a aplicar um mandato de 10pc de SAF até 2037. Os esforços do país para implementar o mandato de SAF estão alinhados às diretrizes do Esquema para Compensação e Redução de Carbono para a Aviação Internacional (Corsia, na sigla em inglês), da Organização da Aviação Civil Internacional (ICAO, na sigla em inglês), que prevê a redução de emissões de GEEs em voos internacionais. O programa determina duas fases até a implementação integral das metas de redução, pensando em uma adaptação mais eficiente das companhias aéreas e dos produtores. As companhias aéreas podem aderir voluntariamente ao programa entre 2024-26. As metas compulsórias globais são implementadas entre 2027-2035, o que incentiva o uso de SAF e a compensação de créditos de carbono. A fase obrigatória abrange todos os voos internacionais, incluindo aqueles com embarque e desembarque em países não-voluntários, exceto os considerados menos desenvolvidos e os de baixa participação no tráfego aéreo global. O SAF brasileiro é uma indústria recém-nascida com potencial para oferta de insumos , principalmente as rotas de produção envolvendo óleo de soja, etanol de milho e de cana-de-açúcar, bem como largas terras agrícolas destinadas à produção de biomassa sem a prática de mudança do uso da terra (MUT). Essa variabilidade também abre espaço para novos projetos que reutilizam terras degradadas e áreas agrícolas existentes em conformidade com os critérios de sustentabilidade da ICAO relacionados ao uso de terra e ao aprimoramento do solo. A inserção do SAF no Brasil enfrenta obstáculos econômicos à medida que a alta volatilidade do mercado pesa sobre os investimentos de longo prazo, disse o consultor da A&M Infra, Filipe Bonaldo. Segundo o consultor, a agenda política não afetará a transição energética no país como aconteceu nos Estados Unidos sob o governo do presidente Donald Trump, uma vez que a economia do Brasil depende fortemente da agricultura e as regulações do mercado são otimistas. Como uma potência agrícola, o Brasil oferece produção de baixo custo e múltiplas fontes para suprir as demandas internas e externas. O Brasil é o terceiro maior exportador global nos mercados agrícola e pecuário, liderando os segmentos da soja, suco de laranja e de carne, de acordo com a Confederação da Agricultura e Pecuária do Brasil (CAN). Estreia no Rio A Vibra foi a primeira distribuidora a oferecer SAF no Brasil, antes da mescla obrigatória entrar em vigor. A empresa importou 550m³ de SAF produzido a partir de óleo de cozinha usado (UCO, na sigla em inglês), a partir da Bélgica, em janeiro. O biocombustível está disponível para venda nas instalações da Vibra no aeroporto internacional do Rio de Janeiro após dez meses de operações logísticas. A Certificação Internacional de Sustentabilidade e Carbono (ISCC, na sigla em inglês) assegurou a validade de todas as etapas, desde a cadeia de suprimento do produto até a distribuição. A Vibra opera em mais de 90 aeroportos no território brasileiro e representa 60pc da participação de mercado da aviação nacional através da subsidiária BR Aviation, disse o vice-presidente executivo de operações, Marcelo Bragança. Por que tanta demora? Por muito tempo, o setor teve dúvidas quanto à viabilidade técnica do uso de biocombustíveis na aviação, especialmente quanto à segurança, disse a gerente de meio-ambiente e transição energética da Agência Nacional de Aviação Civil (Anac), Marcela Anselmi. A Anac e a Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) seguem as regulações internacionais para o SAF ao exigirem que o biocombustível apresente semelhanças físico-químicas com o combustível fóssil de aviação para garantir a segurança das operações aéreas. Ainda não é possível usar 100pc de SAF nos motores de aeronaves, disse Anselmi. Há um limite de 50pc de mescla que inibe a adesão ao redor do mundo, considerando as restrições técnicas que ainda precisam ser superadas. O compromisso recente com as pautas de transição energética está incentivando a oferta de biomassa para a aviação, bem como aos modais rodoviário e marítimo, o que exige novas rotas de produção. Por exemplo, a rota alcohol-to-jet (ATJ) converte etanol em SAF, o que pode ser caro para instalar e implica alto investimento em bens de capitais. No contexto global, o Brasil está na vanguarda da pauta SAF, considerando que a Europa e os EUA publicaram legislações relacionadas à produção e ao consumo somente nos últimos dois anos, apontou Anselmi. Enquanto isso, a capacidade projetada de produção de SAF na América do Sul pode chegar a 1.100 m³/ano em 2030, de acordo com a Empresa de Pesquisa Energética (EPE). Por João Curi Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2025. Argus Media group . Todos os direitos reservados.

Funding cuts could delay US river lock renovations

25/04/03

Funding cuts could delay US river lock renovations

Houston, 3 April (Argus) — The US Army Corps of Engineers (Corps) will have to choose between various lock reconstruction and waterway projects for its annual construction plan after its funding was cut earlier this year. Last year Congress allowed the Corps to use $800mn from unspent infrastructure funds for other waterways projects. But when Congress passed a continuing resolutions for this year's budget they effectively removed that $800mn from what was a $2.6bn annual budget for lock reconstruction and waterways projects. This means a construction plan that must be sent to Congress by 14 May can only include $1.8bn in spending. No specific projects were allocated funding by Congress, allowing the Corps the final say on what projects it pursues under the new budget. River industry trade group Waterways Council said its top priority is for the Corps to provide a combined $205mn for work at the Montgomery lock in Pennsylvania on the Ohio River and Chickamauga lock in Tennesee on the Tennessee River since they are the nearest to completion and could become more expensive if further delayed. There are seven active navigation construction projects expected to take precedent, including the following: the Chickamauga and Kentucky Locks on the Tennessee River; Locks 2-4 on the Monongahela River; the Three Rivers project on the Arkansas River; the LaGrange Lock and Lock 25 on the Illinois River; and the Montgomery Lock on the Ohio River. There are three other locks in Texas, Pennsylvania and Illinois that are in the active design phase (see map) . By Meghan Yoyotte Corps active construction projects 2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Prio supplies B100 for bunkering in Portugal

25/04/03

Prio supplies B100 for bunkering in Portugal

Sao Paulo, 3 April (Argus) — Portuguese biodiesel supplier Prio has supplied B100 marine biodiesel and fixed contracts for the supply pure hydrotreated vegetable oil (HVO) into marine for the first time in Portugal. The bunker fuel delivery comprising 30t of 100pc used cooking oil methyl ester (Ucome) biodiesel took place in the Portuguese port of Viana do Castelo to the ferry Lobo Marinho and the containership Funchalense V , both owned by Grupo Sousa. Prio said the B100 supply achieved an emission intensity value of about 11.4 gCO2e/MJ, reflecting greenhouse gas (GHG) savings of about 88pc against a default fossil bunker value. The company also fixed summer-season March-July contracts with a cruise liner for the supply of 175t of Class II HVO at the port of Lisbon. This fuel is produced from used cooking oil (UCO). The B100 and HVO supplies are done on an ex-truck delivery basis. Marine biodiesel is seen as an alternative to conventional bunker fuels since the introduction of FuelEU Maritime regulations starting this year, which require ships traveling in, out, and within EU territorial waters to reduce GHG emissions by 2pc on a lifecycle basis and increasing up to 80pc by 2050. Argus assessed the price of Class II HVO fob ARA at an average of $1,795.13/t in the first quarter of this year, compared with $1,431.46/t for Ucome fob ARA in the same time in 2024. Both biofuels were marked well above conventional bunker fuel prices. Very-low sulphur fuel oil (VLSFO) dob ARA averaged $515.56/t and marine gasoil (MGO) dob ARA was $655.37/t during January-March this year. By Hussein Al-Khalisy and Natália Coelho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil SAF industry set to take off in 2027

25/04/02

Brazil SAF industry set to take off in 2027

Sao Paulo, 2 April (Argus) — Brazil's aviation industry is keeping an eye on sustainable aviation fuel (SAF) regulations as the domestic market awaits the kickoff of local production to comply with the planned blend mandate and with potential for exports. The fuels of the future law envisages raising biofuel mix standards to lower greenhouse gas (GHG) emissions in domestic flights over a 10-year period starting in 2027, as Brazil has committed to applying a 10pc SAF mandate by 2037. The country's efforts to implement a SAF mandate runs in tandem with the guidelines from UN's International Civil Aviation Organization (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) program, which oversees GHG reduction in international flights. The program set up two phases until reduction targets are fully implemented, so airlines and producers adapt to changes efficiently. Airlines can voluntarily adhere between 2024-2026, followed by global compulsory targets from 2027-2035, prompting SAF usage or carbon credits compensation. The mandatory phase embraces all international flights, including those from and to non-voluntary countries, except for so-called underdeveloped countries and those with a low share of global air traffic flows. Brazil's SAF is a newborn industry that holds potential for feedstock supply , mostly for its traditional production pathways using soybean oil, corn and sugarcane ethanol, as well as widespread agricultural lands engaged in biomass production without practicing land-use change. Its variability also allows new projects to reuse degraded lands and existing agricultural assets to comply with International Civil Aviation Organization (ICAO) sustainability criteria related to land-use and soil health enhancement. SAF input in Brazil faces economic hurdles as high market volatility weighs on long-term investments, says A&M Infra's management consultant Filipe Bonaldo. But he also says that the political agenda will not hinder the energy transition as has happened in the US under President Donald Trump, since Brazil's economy is heavily based on agriculture and its regulatory processes spur optimism. As an agricultural powerhouse, Brazil offers low-cost production and multiple sources to provide demand, both internally and offshore. Brazil is the third largest global exporter in agriculture and livestock markets, leading soy, orange juice and beef markets globally, according to agriculture and livestock confederation CAN. Debut in Rio Brazilian fuel distributor Vibra is the first to offer SAF in Brazil, before the blend mandate comes into effect. The company imported 550,000l (16,000bl) of SAF produced with used-cooking oil (UCO) from the port of Antwerp, in Belgium, in January. The biofuel is available for customers at Vibra's facility at the Rio de Janeiro international airport after a 10-month logistics plan was concluded. International Sustainability & Carbon Certification (ISCC) has secured all processes of the plan, from the supply chain of the product to distribution. Vibra operates in more than 90 airports in Brazil and accounts for 60pc of national aviation market share through its sector subsidiary BR Aviation, said executive vice-president of operations Marcelo Bragança. Why it took so long? The sector has long had doubts over the technical feasibility of admitting the use of biofuels in aviation , especially from a security point of view, said Anac's head of the environment and energy transition Marcela Anselmi. The agency, along with oil and biofuels regulator ANP, follow international regulations for SAF as it requires a physical and chemical resemblance to current fossil aviation fuels to ensure flight operations security. It is still not possible to use 100pc of SAF in aircraft motors, said Anselmi. There is a 50pc mix limit that inhibits worldwide adherence as there are technical restrictions yet to overcome. Recent engagement in the energy transition agenda is promoting biomass supply for aviation, as well as road and marine modalities, requiring new production pathways. For example, ATJ uses ethanol to convert it into SAF, which can be expensive to install and implies high capital expenditure. In a global context, Brazil stands in the vanguard of the SAF agenda as Europe and the US have only deployed legislation related to output and consumption over the past two years, Anselmi pointed out. Meanwhile, South America's planned SAF production capacity may reach 1.1mn l/yr in 2030, according to EPE. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US oil, farm groups push EPA for steep biofuel mandate

25/04/01

US oil, farm groups push EPA for steep biofuel mandate

New York, 1 April (Argus) — The American Petroleum Institute and biofuel-supporting groups told Environmental Protection Agency (EPA) officials at a meeting today that the agency should sharply raise advanced biofuel blend mandates for 2026. The coalition told EPA that it supported a biomass-based diesel mandate next year of 5.25bn USG, up from 3.35bn USG this year, and a broader advanced biofuel mandate, including the cellulosic category, at 10bn Renewable Identification Number (RIN) credits, up from 7.33bn RINs this year, according to three different groups that attended the meeting. Both mandates would be record highs for the Renewable Fuel Standard (RFS) program. Soybean oil futures and RIN credit prices have risen sharply over the past week on optimism that oil and biofuel interests were working to coordinate volume mandate requests for consideration by President Donald Trump's administration. The coalition is also pushing the agency to set a total conventional volume requirement at 25bn RINs, which would keep an implied mandate for corn ethanol flat at 15bn USG. Ethanol groups had previously eyed a mandate even higher, but limits on the amount of ethanol that can be blended into gasoline make much more-stringent requirements a tough sell to oil refiners. The coalition provided no specific request for the cellulosic biofuel subcategory, where most credit generation comes from biogas. Credits in that category are more expensive, but price concerns have been less potent recently given an EPA proposal to lower previously set cellulosic obligations, signaling that future volume requirements can be cut, too. EPA is aiming to finalize new RFS volume mandates by the end of the year if not earlier, people familiar with the administration's thinking have said. EPA officials signaled at the meeting they were working urgently on the rulemaking. "The agency is intent on getting the RFS program back on the statutory timeline for issuing renewable volume obligation rules," EPA said, declining to comment further on its plans for the rule. The RFS program requires oil refiners and importers to blend biofuels into the conventional fuel supply or buy credits from those who do. Under the program's unique nesting structure, credits from blending lower-carbon biofuels can be used to meet obligations for other program categories. One gallon of corn ethanol generates 1 RIN, but more energy-dense fuels earn more RIN credits per gallon. Some disagreements persist While groups at the meeting were aligned around high-level mandates, how administration officials and courts treat small refinery requests for exemptions from RFS requirements could undercut those targets. Groups present were broadly aligned on asking EPA not to grant widespread exemptions, though there is still disagreement in the industry about how best to account for exempted volumes when deciding requirements for other refiners. Groups present at the meeting today included the American Petroleum Institute and representatives of biofuel producers and crop feedstock suppliers. Some groups that previously engaged with the coalition's efforts to project unity to the Trump administration were not present. And some groups more historically skeptical of the RFS and more supportive of small refinery exemptions — including the American Fuel and Petrochemical Manufacturers — have not been closely involved. Fuel marketer groups notably did not attend the meeting after a representative sparred with others in the coalition at an American Petroleum Institute meeting last month. Some retail groups, including the National Association of Convenience Stores and the National Association of Truck Stop Operators, instead sent a letter to EPA today arguing that the groups pushing steep volumes are discounting potential headwinds to the sector from new tax credit policy. Some of the groups advocating for higher biofuel volumes have pointed to high production capacity and feedstock availability, but have preferred to ignore thornier issues like tax credits, lobbyists say. "An overly aggressive increase in advanced biofuel blending mandates under the RFS will be punitive for American consumers" without extending a long-running $1/USG tax credit for biomass-based diesel blenders, the retailers' letter said. That incentive expired last year and was replaced by the Inflation Reduction Act's "45Z" credit, which offers subsidies to producers instead of blenders and throttles benefits based on carbon intensity. Generally lower credit values for biomass-based diesel — coupled with the US government's delays setting final regulations on qualifying for the credit — have spurred a sharp drop in biofuel production to start the year. Without a blenders credit, the RFS volume mandates pushed by some groups could increase retail diesel prices by 30¢/USG, the fuel marketers estimate, a potential political headache for a president that ran on curbing consumer costs. Other biofuel groups say that extending the credit would be an uphill battle this year, with some lawmakers and lobbyists instead focused on legislatively tweaking the 45Z incentive's rules to benefit crop feedstocks instead of reverting wholesale to the prior tax policy. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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