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German industry against multipliers in biofuels law

  • : Biofuels
  • 20/11/19

The planned introduction of multipliers for electricity and hydrogen in a draft law for the use of renewables in transport published by the German environment ministry (BMU) will remove first generation biofuels from the market by 2025, according to a joint statement of eight agricultural and biofuel industry associations.

The German government outlined its plans to toughen the country's biofuels legislation in a draft law at the end of September, which aims to implement the EU's revised Renewable Energy Directive (RED II). It proposes lowering the cap of the energy share of crop-based biofuels to 2.7pc by 2026 from 6.5pc in 2020, and wants to lift Germany's domestic greenhouse gas (GHG) emissions reduction obligation to 7.25pc by 2026. It also plans to introduce multipliers for hydrogen and electricity used in transport with the GHG savings generated by selling electricity to charge electric vehicles to be counted four-fold towards the country's GHG emissions reduction quota.

The government's plans will start a process of displacement at the expense of established sustainable biofuels that are indispensable for climate protection as the introduction of multipliers will disadvantage crop and even waste-based biofuels, the industry alliance said.

It urged the government to exclude multipliers from the draft legislation to ensure an even contribution of all instruments available to reduce domestic GHG emissions. The industry associations further demanded a step-by-step increase of the GHG quota from 6pc in 2020 to 16pc in 2030 and highlighted that a concrete outline for the next 10 years is a prerequisite for necessary investments in e-mobility, hydrogen-mobility and advanced biofuels. The statement adds that the contribution of conventional biofuels to climate targets needs to stay stable until 2030, while the government's target for the use of advanced biofuels needs to become more ambitious.

The joint statement was signed by the German farmers association DBV, bioenergy association BBE, the German biogas association, the waste-based fuels association MvaK, the oilseed growers and processing industry associations Ufop and Ovid and the German biofuels association VDB.


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24/12/03

Treasury eyes 45Z guidance before Biden exit

Treasury eyes 45Z guidance before Biden exit

New York, 3 December (Argus) — The US Department of Treasury said it still plans to issue guidance before president Joe Biden leaves office next year clarifying how refiners can qualify for a new tax credit for clean fuels. The agency "anticipates issuing guidance" around the Inflation Reduction Act's 45Z credit before 20 January to "enable producers to claim the 45Z credit for 2025", disputing a report today that the Biden administration planned on punting implementation to president-elect Donald Trump. The credit, set to kick off regardless on 1 January, will differ from some prior federal incentives by offering greater subsidies to fuels that produce fewer greenhouse gas emissions. Treasury did not commit to any definitive timeline for releasing guidance, and it did not immediately clarify how thorough any eventual rule would be. Companies in the biofuel supply chain say the current lack of clarity from Treasury — particularly on how it will calculate carbon intensities for various fuels and feedstocks — has slowed first quarter dealmaking. Government guidance could make or break the economics of certain plants, particularly for relatively higher-carbon fuels like soy biodiesel or jet fuel derived from corn ethanol. The US Department of Agriculture's timing for releasing a complementary rule to quantify the climate benefits of certain agricultural practices, envisioned as a way to reward refineries sourcing feedstocks from farms taking steps to reduce their emissions, is unclear. The agency said today that a "rulemaking process" in response to its request for information on climate-smart farm practices is "under consideration" but did not elaborate. Agriculture secretary Tom Vilsack had insisted earlier this year that his department would release some package before the end of Biden's term. Some industry groups remain pessimistic that the Biden administration will answer all of the thorny questions still lingering around the 45Z credit, especially given signals earlier this year that other Inflation Reduction Act programs would take priority. The Renewable Fuels Association, which represents ethanol producers, says final regulations around 45Z "seem highly unlikely" before the end of Biden's term but that it hopes Treasury releases at least some "basic information" or safe harbor provisions. Delays getting credit guidance could prod Congress to extend expiring biofuel incentives for another year, including a $1/USG credit for blenders of biomass-based diesel. Some formerly skeptical lobbying groups have recently come on board in support of an extension, fearing that biofuel production could slump next year given the lack of 45Z guidance and uncertainty about how Trump will implement clean energy tax credits. But four lobbyists speaking on background told Argus today that the proposal still faces long odds. Congress has various other priorities for its relatively brief lame duck session, including government funding and disaster aid, that take precedence over biofuels. A staffer with the Democratic-controlled US Senate Finance Committee said last month that Republicans have been reluctant to negotiate tax policy in a divided Congress this year when they are planning a far-reaching tax package under unified Republican control next year. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Hapag-Lloyd buys bio, e-methanol from China's Goldwind


24/11/29
24/11/29

Hapag-Lloyd buys bio, e-methanol from China's Goldwind

London, 29 November (Argus) — Germany-based containership owner Hapag-Lloyd has struck a long-term deal to buy 250,000 t/yr of blended biomethanol and e-methanol from Chinese wind turbine maker and project developer Goldwind. The deal lasts for more than 10 years and is legally binding, Hapag-Lloyd told Argus . Goldwind will supply Hapag-Lloyd with a smaller volume initially in 2026 and ramp up to 250,000 t/yr in late 2027. Hapag-Lloyd expects the initial volumes to largely fulfil demand from the five dual-fuel methanol ships it will operate from 2026, it said. Goldwind earlier this year started building a 500,000 t/yr plant in Hinggan League, northeast China. The so-called "hybrid" plants will make biomethanol and e-methanol, and Goldwind plans to add a second 500,000 t/yr plant in 2027, the shipowner said. Hapag-Lloyd's deal is for volume from the second plant, it added. The ratio of e-methanol in the deal is 30pc but could be raised to 50pc in the plant's lifetime, Hapag-Lloyd said. The fuel ensures greenhouse gas (GHG) emissions reductions of at least 70pc to comply with current sustainability certification requirements, Hapag-Lloyd said. This is likely to refer to the FuelEU Maritime definition of low-carbon fuels as cutting GHG emissions by 70pc compared with fossil benchmarks. Goldwind previously struck a deal to supply 500,000 t/yr of the sustainable methanol mix to Danish shipping and logistics firm Maersk from 2026. While methanol appears to be gaining momentum, shipowners are pursuing a range of fuels for future fleets. Hapag-Lloyd last month ordered 24 dual-fuelled LNG containerships for a combined $4bn. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Sweden extends EU ETS 2 application


24/11/28
24/11/28

Sweden extends EU ETS 2 application

London, 28 November (Argus) — The European Commission has approved the application of the new emissions trading system for road transport and buildings (EU ETS 2) to additional sectors in Sweden. Sweden will unilaterally apply the new system to emissions from freight and passenger railway transport, non-commercial leisure boats, airport and harbour off-road machinery, and fuel combustion in agriculture, forestry and fishing. The extension means additional carbon allowances will be issued to the country in 2027, on the basis of emissions from the activities listed calculated at 1.68mn t of CO2 equivalent. Sweden must monitor and report emissions from the additional sectors from 1 January. The EU ETS 2 is due to launch fully in 2027, and will apply in its basic form to fuel combustion in buildings, road transport and small industry not covered by the existing EU ETS, in all the bloc's member states plus Norway, Iceland and Liechtenstein. The commission approved similar unilateral extensions of the system's scope in the Netherlands and Austria in September. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Q&A: AtJ learnings, mandate critical for Australian SAF


24/11/27
24/11/27

Q&A: AtJ learnings, mandate critical for Australian SAF

Sydney, 27 November (Argus) — Australian bioenergy developer Jet Zero has received strong government backing for its proposed Project Ulysses, an alcohol-to-jet sustainable aviation fuel (SAF) project in the northern Queensland state city of Townsville. Argus spoke to chief executive Ed Mason on the sidelines of the Townsville Summit on 27 November about the project's initial engineering. Edited highlights follow: Regarding the proposed 113mn l/yr refinery here in Townsville, what are some of the initial engineering study findings? So with front-end engineering and design (FEED), what we're doing is value engineering, which you typically do at the end of FEED, we're doing it at the front because we've seen so many opportunities to improve on the reference project design in Georgia, US — they're just basically lessons learned from what LanzaJet have seen, as well as what we've identified as opportunities to eliminate, reduce, simplify costs. We've got hydroprocessed esters and fatty acids (HEFA), that's the kind of space rocket that can get you to the moon, we've now got alcohol-to-jet commercialised, which is like the space shuttle — slightly better, which can do more. But we really need to see a SpaceX type of system where you can go up and down and make it more efficient, so it's making those technologies far more capital efficient and better, so that's what we're focused on. Where are negotiations at with refiners Wilmar and Manildra, the two main producers of ethanol in Australia? We basically have constructive discussions in particular with Wilmar, they have surplus capacity, they're vocal supporters of development of the ethanol market, as you know, for many years. We've got ample supply (183mn l/yr) and confidence about what we need for SAF and importantly, assisting that supplier getting that feedstock RSB and Corsia certified. Looking at the regulatory situation at the moment, a low-carbon fuel standard. How critical is that to building a project like yours to final investment? We made a submission on the low-carbon liquid fuel paper . We're advocating both supply and demand measures and were fairly aligned with the wider industry submission. We believe a modest mandate, 1-2pc, supports and is ahead of what the project pipeline is, so you're not putting a mandate that can't be achieved by the projects at our stage but that sends a strong signal, like other countries have already sent. Secondly, supply measures around financing like other types of mechanisms you've seen with Hydrogen Headstart , just to get the industry going. How tight is the window for Australia to catch up with the rest of the world? It's very tight. I think we've got to move in the next two years — there is a wall of demand from 2030 and these projects take five years to develop from start to finish. If we don't move in this in the next few years, we'll end up seeing the feedstock develop that market, but not the production of SAF and we'll lose out on those jobs. A standard size plant has been proposed in Townsville, how much room do you have to grow that capacity in Townsville? We'd very much like to be bigger if the market was there for ethanol. We've sized it at the minimum size that we feel can deliver commercial volumes of SAF at a price that's in line with benchmark, but the bigger you go, the bigger economies of scale you get. These are modules, we can increase and add another train to Townsville quite easily, so a huge opportunity to grow that. The actual plant construction timeframe, what does that look like? The longest lead item is 14 months, but I'd assume two years. So if we are at final investment decision in the second half of next year, we could conceivably see this project start producing SAF by the second half of 2027. Is sugarcane going to be sufficient for growing AtJ SAF, or will we need other feedstock in the future? The sugarcane industry has theoretically got the biggest contributing opportunity, particularly short to medium term with this industry. But you've got agave, you've got other types of crops that can produce like sorghum and other types of sources of ethanol that can be used, and they are a potentially medium-to-long-term supply opportunity. [Farming lobby] Canegrowers ran a fairly extensive campaign around the potential of biofuels in the last Queensland state election, and we've seen other bodies in the sugar industry run similar campaigns so the industry, from grower to miller, is supportive of developing the industry. We've only seen sugar mills close in north Queensland over the last decade, I think ultimately the rest of the world's sugar industry has already moved on [biofuels]. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Norden agrees marine biodiesel deal with Meta


24/11/26
24/11/26

Norden agrees marine biodiesel deal with Meta

London, 26 November (Argus) — Danish shipping company Norden has agreed with tech giant Meta to utilise marine biodiesel blends on operated vessels. The deal is based on Norden's book-and-claim, a system that can be used to deliver proof of sustainability (PoS) documentation to customers to offset the latter's scope 3 emissions and fulfil their voluntary demand. The PoS can be obtained on a mass-balance system, allowing shipowners flexibility with regards to the port at which a blend can be bunkered. Norden did not specify which marine biodiesel blends it will use as part of this agreement, but said the biofuel will be ISCC-certified and will have an 80-90pc greenhouse gas (GHG) emissions reduction potential. The agreement follows recent drops in Argus assessments for marine biodiesel blends comprising Advanced Fatty acid methyl ester (Fame) 0 in the ARA trading and refining hub. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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