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Shell delivers inaugural SAF batch in Singapore

  • : Biofuels, Oil products
  • 22/02/17

Shell has successfully distributed its first batch of sustainable aviation fuel (SAF) in Singapore and developed blending capability in the country.

The initial batch of waste-based SAF was blended with jet fuel in Europe before being used to test its Asian supply chain, and was delivered to Singapore Airlines Engineering and the Republic of Singapore Air Force.

Subsequent batches will be delivered from its new blending facility on the island but the company did not disclose the capacity or further details about the site.

"We see encouraging demand in Asia for SAF, and there are ongoing discussions happening to cater to this demand," Shell said.

Shell last year announced its ambitions to produce 2mn t/yr of SAF globally by 2025, incorporating a 550,000 t/yr low-carbon fuels site at its Energy and Chemicals Park in Singapore.

The southeast Asian country is also aiming to ramp up its SAF usage, having called on producers to supply Changi Airport in a year-long pilot scheme beginning this year.

ExxonMobil has already agreed to join the scheme by providing 1.25mn litres of SAF supplied by Finnish refiner Neste, which has 1mn t/yr of SAF capacity due to come on line in Singapore next year.


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25/05/05

California refinery closures panic politicians

California refinery closures panic politicians

Houston, 5 May (Argus) — California could lose up to 17pc of its refining capacity within a year, triggering major concerns about its tightly supplied and frequently volatile products market. US independent Valero announced on 16 April that it will shut or repurpose its 145,000 b/d Benicia refinery near San Francisco by April 2026. The firm is also evaluating strategic alternatives for its 85,000 b/d Wilmington refinery in Los Angeles. And independent Phillips 66 said in October that it would shut its 139,000 b/d Los Angeles refinery in the fourth quarter of this year. Valero's Benicia announcement brought a quick reaction from state officials. Governor Gavin Newsom on 21 April urged regulators at the California Energy Commission (CEC) to work closely with refiners through "high-level, immediate engagement" to make sure Californians have access to transport fuels. He has ordered them to recommend by 1 July any changes to California's approach that are needed to ensure adequate fuel supply during its energy transition. The message appears to have hit home. The CEC delayed a vote on new refinery resupply rules to provide time for additional feedback and consultation with stakeholders after the Valero announcement. The CEC also plans to introduce a rule this year for minimum inventory requirements at refineries in the state as well as possible rules on setting a refiner margin cap. The new rules are part of an effort by Newsom to mitigate fuel price volatility in California, including the signing of two pieces of legislation known as AB X2-1 and SB X1-2. Refiners have been unhappy with the state's regulatory and enforcement environment for some time. It is "the most stringent and difficult" in North America owing to 20 years of policies pursuing a move away from fossil fuels, Valero chief executive Lane Riggs says. The long and short of it Refinery closures are fuelling long and short-term supply concerns in California. The most immediate is an anticipated supply crunch at the end of this summer. Phillips 66's plan to shut the Los Angeles refinery by October will deal a significant blow to the state's refining capacity and is likely to occur at a time when Californian gasoline prices are most prone to volatility. The US west coast is an isolated market, many weeks sailing time from alternative supply sources in east Asia or the US Gulf coast. California's strict product specifications further limit who can step in when refinery output falls. The state sometimes sees price spikes in late summer and early autumn because the switch from summer gasoline blends leaves local inventories low while in-state refineries adjust to producing winter grades. California gasoline prices spiked in September 2022 when stocks fell to a nine-year low on the west coast. Spot deliveries hit a record $2.45/USG premium to Nymex Rbob futures in the Los Angeles market at the time (see graph). Production problems at several refineries in southern California led to another spot price surge in September 2023. The California Air Resources Board (Carb) permitted an earlier switch to cheaper winter gasoline production in response to both events. Refinery closures will force California to rely on imports in the longer term, leaving the state exposed to stretched supply lines. State regulators' proposed solutions have raised eyebrows. The CEC's Transportation Fuels Assessment report in August last year included a policy option in which California would buy and own refineries, which the state is not pursuing. Another option involves state-owned products reserves to allow rapid deployment of fuel when needed. The CEC and Carb regulators will also release a draft transportation fuels transition plan later this year. By Eunice Bridges and Jasmine Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

WEF, GenZero launch Asia-Pacific SAF initiative


25/05/05
25/05/05

WEF, GenZero launch Asia-Pacific SAF initiative

Singapore, 5 May (Argus) — The World Economic Forum (WEF) and Singaporean investment platform GenZero have jointly launched the Green Fuel Forward initiative to encourage demand for sustainable aviation fuel (SAF) in the Asia-Pacific region. WEF and GenZero — a subsidiary of state-owned investment firm Temasek — announced the launch during the GenZero Climate Summit 2025 in Singapore on 5 May. The initiative aims to scale the region's aviation decarbonisation infrastructure and demand for SAF. It plans to do this through initiatives such as workshops and practical guidance tools to help organisations navigate key topics like environmental integrity, book-and-claim systems, and reporting practices for SAF and SAF certificates. The initiative is expected to bring together airlines, logistics providers, and corporates operating in the region. Organisations including Air New Zealand, Boeing, DHL, the International Energy Agency (IEA), Neste, Qantas, Roundtable on Sustainable Biomaterials (RSBO) and Singapore Airlines have already agreed to participate. Airlines and organisations based in Asia-Pacific which are interested in procuring SAF and SAF certificates can participate in the initiative, said GenZero. By "mobilising corporates and airlines, we can create the certainty needed to spur innovation, scale production, and make lower-emission flights a reality", said GenZero's chief executive Frederick Teo. Finnish SAF producer Neste said it is "committed to contributing our expertise and resources to help scale SAF demand and production," while Singapore Airlines said it is a "useful platform to unite airlines and corporates in building shared demand". By Deborah Sun Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s election gives LNG, fuels sector certainty


25/05/05
25/05/05

Australia’s election gives LNG, fuels sector certainty

Sydney, 5 May (Argus) — Australia's governing Labor party's second majority term could mean that changes to the offshore permitting regime promised last year are signed into law, while east coast LNG businesses will avoid a planned reservation system proposed by the opposition. Labor's victory at the 3 May election combined with the election of fewer members from the Greens party and climate-focused independents, could mean it faces less pressure to cancel fossil fuel projects. But it will remain reliant on the Greens to pass laws through the nation's upper house — the senate — meaning Labor may need to negotiate the passage of bills with the leftist party if the Liberal-National-based coalition opposes its measures. The Greens ran on a promise to ban new coal, oil and gas projects but won fewer seats than in 2022 because of preference flows. A federal decision on the lifetime extension of the Woodside Energy-operated 14.4mn t/yr North West Shelf (NWS) LNG delayed by Labor, is now looking more positive for the firm. The firm sees approval as vital to progressing its Browse gas development offshore northwestern Australia. Voters' rejection of the opposition Coalition on the nation's east coast means its policy to reserve a further 50-100PJ (1.34bn-2.68bn m³/yr) from the Gladstone-based LNG exporters will not proceed. The result provides an opportunity for certainty and stability for the energy sector, upstream lobby Australian Energy Producers said. The group urged the government to focus on new supply as Australia's gas reserves for domestic use rapidly deplete. The government will need to specify exactly how it aims to secure supplies to ensure stable supply, once coal-fired generators retire at the end of the 2020s and into the 2030s. This is because the nation's integrated system plan is based on Labor's policy of reaching 82pc renewable energy in the power grid, backed up by about 15GW of gas-fired power. Industry will await further direction stemming from the Future Gas Strategy which canvassed solutions to Australia's declining gas supply including new pipelines, storage and seasonal LNG imports. Permitting concerns In the government's previous three-year term, a series of court-ordered requirements to consult with affected Aboriginal groups briefly disrupted multi-billion dollar LNG developments. Labor promised to specify through new laws exactly which groups must be consulted before approvals could be granted. But these were dropped from the agenda in early 2024 following opposition by the Greens. Labor's resources minister Madeleine King blamed the Greens for obstructionist manoeuvres on this legislation, but it remains unclear if and when Labor might introduce such laws. Conversely, the Coalition promised to end government support for anti-gas lobbies such as law group the Environmental Defenders Office — set to continue under Labor. In liquid fuels, Labor's victory should boost Australia's electric vehicle (EV) sales, with emissions standards laws set to remain enforced. The Coalition had said it would soften the laws because of concern over cost of living pressures. Plans to temporarily cut the fuel excise will also not progress. Australia's EV take-up has stalled, and industry has blamed this on poor investment in recharging infrastructure and other policy settings, including the removal of the fringe benefits tax exemption for plug-in hybrid car models. A re-elected Labor government is likely to further policy towards a mandate for sustainable aviation fuel or renewable diesel, given the growing share of Australia's emissions projected to come from the transport industry. It pledged A$250mn ($162mn) for low-carbon liquid fuels development in March , for low-carbon liquid fuels development in March, as part of its commitment to the nascent sector. Local market participants are optimistic that further biofuels support will be provided as urgency to meet net zero ambitions builds, including a 2030 target of 43pc lower emissions based on 2005 levels. About A$6bn/yr of feedstocks like canola, tallow and used cooking oil are exported from Australia, while existing ethanol and biodiesel producers are running underutilised plants, making about 175mn litres/yr at present, because of poorly-enforced blending mandates. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia re-elects renewable-focused Labor party


25/05/05
25/05/05

Australia re-elects renewable-focused Labor party

Sydney, 5 May (Argus) — Australia's Labor party has been voted in for another term in a landslide majority, reaffirming the party's targets on renewable energy and emissions reduction. The election held on 3 May saw overwhelming support for the incumbent Labor government led by prime minister Anthony Albanese, which prioritised renewable energy, compared to the opposition's plans to install nuclear plants to replace coal-fired power . Labor now face pressure to meet key energy policy targets, including 82pc renewable energy in electricity grids by 2030 and a 43pc reduction in greenhouse gas emissions on 2005 levels by 2030. The government said late last year that Australia was on track to reduce emissions by 42.6pc by 2030 , nearly within the target and rising from previous estimates of 37pc in 2023 and 32pc in 2022. This was mostly because of the reformed safeguard mechanism , the expanded Capacity Investment Scheme (CIS) and the fuel efficiency standards for new passenger and light commercial vehicles. Lobby groups now expect the government to set a strong 2035 emissions reduction target , within the range of 65-75pc below 2005 levels indicated last year by the Climate Change Authority (CCA). The CCA is yet to formally recommend a target, and the government will then need to make a decision and submit Australia's next Nationally Determined Contribution (NDC) under the Paris Agreement later this year. In metals, a plan to buy critical minerals from commercial projects and keep stockpiles to steady prices by withholding or releasing stock will now be pursued by the re-elected government. The previous Albanese government was not forthcoming in meeting calls for a biofuels mandate or production incentives but it announced it would allocate A$250mn ($162mn) of its A$1.7bn Future Made in Australia innovation fund to low-carbon fuels (LCLF) research and development in March. In agriculture, a planned ban on live sheep exports will go ahead by 1 May 2028 under laws passed last year. The coalition campaigned heavily to revoke the laws, but the re-election of Labor has raised concerns in the live export sector. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Chevron 'not surprised' Calif refineries shutting


25/05/02
25/05/02

Chevron 'not surprised' Calif refineries shutting

Houston, 2 May (Argus) — Chevron's chief executive said today he is not surprised that refineries in California are shutting down, because the state has made it "nearly impossible" to invest going forward. Independent refiner Valero on 16 April said it is planning to shut or re-purpose its 145,000 b/d refinery in Benicia, California, by April 2026. This comes as Phillips 66 is planning to shut its 139,000 b/d Los Angeles refinery later this year. "I'm not surprised to see the announcements that have come out," chief executive Mike Wirth said Friday on Chevron's first-quarter earnings call. Policies coming out of the state "make it nearly impossible to invest in California going forward", he said. The state inserting itself into operational matters like planning turnarounds is "an unwise move", Wirth said. Chevron operates two large refineries in the state — the 269,000 b/d El Segundo, refinery and the 245,000 b/d Richmond refinery. "We do not have any announcements on our refineries at this time," Wirth said. California governor Gavin Newsom last year signed into law AB X2-1, legislation authorizing the state's energy regulator to require refiners to maintain minimum gasoline inventories. The bill is part of a multi-year effort by Newsom to mitigate price spikes at the pump, authorizing the California Energy Commission (CEC) to regulate, develop and impose requirements for in-state refiners to maintain minimum stocks of gasoline and gasoline blending components. The agency is in the rule-making process for some of the regulations, but a vote on a refinery resupply rule was postponed last month to allow for more engagement with stakeholders. The closures of Valero's Benicia refinery and Phillips 66's Los Angeles refinery will eliminate 17pc of the state's crude refining capacity. PBF Energy, which also operates refineries in California, said Thursday that the shutdowns will cause a 250,000 b/d shortfall in gasoline in the state and lead to growing reliance on more expensive imports. Valero chief executive Lane Riggs said last week that California's regulatory and enforcement environment is "the most stringent and difficult" in North America due to 20 years of policies pursuing a move away from fossil fuels. California will require 100pc of in-state sales of new cars and trucks to be electric, plug-in hybrid or hydrogen models by 2035. Five days after Valero's announcement to shut Benicia, Newsom urged state regulators to work closely with refiners on short-term and long-term planning, including through "high-level, immediate engagement" to make sure Californians have access to transportation fuels, according to a letter sent to CEC vice chair Siva Gunda. Newsom ordered the CEC to work with a cross-agency task force to recommend by 1 July any changes in the state's approach that are needed to ensure adequate fuel supply during the state's energy transition. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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