Neste to diversify its feedstock pool beyond wastes

: Biofuels
22/03/07

Finnish biofuels producer Neste said it will focus on developing new sources of renewable raw materials while growing its existing pool, and will strengthen its feedstock sourcing and pre-treatment capability.

The company will continue to focus on waste and residue raw materials in the short term, while in the longer term it expects to expand the types of feedstocks it uses, including novel vegetable oils — which do not create additional demand for agricultural land — agricultural and forest harvesting waste and residues, algae, municipal solid waste and Power-to-X for Co2 conversion.

Neste said it used 3.7mn t of renewable feedstocks last year, with waste and residues accounting for 92pc of the total and vegetable oils, mainly palm oil, making up the rest. The company aims to stop using palm oil by the end of 2023.

Animal fat from food industry waste, used cooking oil (UCO) and various wastes and residues from vegetable oils processing represent the top three waste feedstocks used, the company said. Other waste and residue raw material in Neste's portfolio include fish fat from fish processing waste, tall oil-based raw materials, technical corn oil (TCO) and acid oils. The company expects global waste and residue oils and fats availability to grow to 40mn t/yr by 2030.

All of Neste's plants are technically capable of running on 100pc waste and residues and the company is able to pre-treat low-quality raw materials to remove impurities, it said. To expand its feedstock sourcing and pre-treatment capability, Neste has acquired US renewable waste and residue fat and oil trader Agri Trading and Bunge Loders Croklaan's biorefinery in Rotterdam, Netherlands.

By Giulia Squadrin

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25/04/10

US absence unlikely to derail IMO talks

London, 10 April (Argus) — The US delegation's absence from the 83rd International Maritime Organisation's (IMO) Marine Environment Protection Committee (MEPC) meeting is unlikely to derail the outcome of discussions on a greenhouse gas (GHG) economic pricing mechanism, market participants told Argus . This comes after the US sent a statement to foreign embassies of countries partaking in the IMO GHG economic pricing mechanism talks, confirming the US' absence from the negotiations. The statement says: "President Trump has made it clear that the US will not accept any international environmental agreement that unduly or unfairly burdens the US or the interests of the American people," according to a document seen by Argus . It adds: "Should such a blatantly unfair measure go forward, our government will consider reciprocal measures so as to offset any fees charged to US ships and compensate the American people for any other economic harm from any adopted GHG emissions measures". The statement ends: "The US will engage with partners on energy and investment issues of common interest. We stand ready to work with you to advance our shared commitment to energy security and economic growth". "The US will not be engaging in negotiations at the IMO's 83rd Marine Environment Protection Committee. Consistent with President Trump's executive orders on international environmental agreements and on energy dominance, it is the administration's policy to put the interests of the US and the American people first in the development and negotiation of any international agreements", the US State Department told Argus . IMO member countries are voting this week on the economic pricing mechanism for marine GHG emissions, for which the structure is expected to be agreed by 11 April, according to IMO secretary-general Arsenio Dominguez. Even if the US does not engage in the GHG talks, it cannot unilaterally block decisions at the IMO, a spokesperson told Argus . Many of the GHG measures remain under discussion, with final approvals from the working group expected by 11 April. "The US doesn't have a huge share of the global ocean-going fleet, so their absence or opposition probably won't change the broader [IMO members] consensus", a Chile-based ship owner told Argus . US imposing "reciprocal" costs on foreign ships calling at US ports will almost certainly get passed on to [US] consumers, which could lead to higher prices for goods in the US, the owner said. If the measures are ratified by IMO member nations, US-flagged ships will probably not adhere to IMO's regulations when they call into ports of member countries, a Singapore-based shipbroker said. "We are not expecting any impacting on Asia-Pacific region yet, and it's subject to what is agreed at the MEPC and how levies are calculated," the shipbroker added. Despite not having veto power, the US remains the largest financial contributor to the UN, a Greece-based shipowner told Argus . If international shipbuilding credit lines begin to tighten under US influence, other countries may align with Washington's stance, it added. The IMO has 176 member countries. Greece, China and Japan account for the largest shares of the global ocean-going fleet. During the ongoing session, member states have approved interim guidance on the carriage of biofuel blends. The guidance allows conventional bunker ships certified for carriage of oil fuels under Marpol Annex I to transport blends of not more than 30pc by volume of biofuel , as long as all residues or tank washings are discharged ashore, unless the oil discharge monitoring equipment is approved for the biofuel blends being shipped. By Hussein Al-Khalisy, Madeleine Jenkins, Stefka Wechsler, Mahua Mitra, Natália Coelho, and Gabriel Tassi Lara Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Bunker Industry seeks universal alternative fuels rules

25/04/08

Bunker Industry seeks universal alternative fuels rules

Fujairah, 8 April (Argus) — Bunker market participants urged the adoption of universal standards for alternative bunker fuels, warning that fragmented regulations are hampering the maritime sector's shift to lower-carbon options. Speaking at the S&P Global Commodity Insights FUJCON 2025, held in Fujairah, UAE, stakeholders highlighted inconsistencies and divergent regional policies, governing biofuels, methanol, ammonia and hydrogen as a key obstacle to scaling up adoption. The lack of harmonised standards on fuel certification, safety protocols and emissions accounting is creating uncertainty for operators and suppliers navigating a complex global market. "Shipping companies like us face an unfair situation, falling behind the policies, that are changing every day," Jens Maul Jorgensen, director of bunkering at Oldendorff Carriers said. The EU's emissions trading system (ETS) was extended to cover the maritime sector last year, and this year FuelEU Maritime came into effect, while the International Maritime Organisation (IMO) is lagging with global regulations, Jorgensen said. FuelEU Maritime, which came into effect this year, sets greenhouse gas (GHG) emissions reduction targets for vessels travelling in or out of Europe. Panel participants at FUJCON called for the replacement of "too many regulations" with universal, clear and policed rules. "If we do not ensure the proper policing of these rules, people will keep finding loopholes, and we do not need loopholes," according to chair of the International Bunker Industry Association Constantinos Capetanakis. The bunker market is under pressure to decarbonise as the IMO targets a 50pc cut in shipping emissions by 2050 from 2008 levels. Alternative fuels are central to this goal, but regulatory disparities complicate investment decisions, industry players said. Market participants warned that prolonged regulatory fragmentation could delay infrastructure investments and inflate costs for end-users. By Elshan Aliyev Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Flooding on US rivers mires barge transit

25/04/07

Flooding on US rivers mires barge transit

Houston, 7 April (Argus) — Barge transit slowed across the Arkansas, Ohio and lower Mississippi rivers over the weekend because of flooding, which prompted the US Army Corps of Engineers (Corps) to close locks and issue transit restrictions along the waterways. The Corps advised all small craft to limit or halt transit on the McClellan-Kerr Arkansas River Navigation System (MCKARNS) in Arkansas because flows reached above 200,000 cubic feet per second (cfs), nearly three times the high-water flow. The heavy flow is expected to persist throughout the week, posing risks to those transiting the river system, said the Corps. Some barges have halted movement on the river, temporarily miring fertilizer resupply efforts in Arkansas and Oklahoma in the middle of the urea application season. The Corps forecasts high flows to continue into Friday, and the National Weather Service predicts several locations along the MCKARNS will maintain a moderate to minor flood stage into Friday as well. Both the Arthur V Ormond Lock and the Toad Suck Ferry Lock, upriver from Little Rock, Arkansas, shut on 6 April because of the high flows. Flows along the Little Rock Corps district reached 271,600cfs on 7 April. The Corps forecasts high flows to continue into Friday. Ohio and lower Mississippi rivers The Corps restricted barge transit between Cincinnati, Ohio, and Cairo, Illinois, on the Ohio River to mitigate barge transportation risks, with the Corps closing two locks on the Ohio River on 6 April and potentially four more in the coming days. Major barge carrier American Commercial Barge Line (ACBL) anticipates dock and fleeting operations will be suspended at certain locations along the Mississippi and Ohio rivers as a result of the flooding. NWS forecasters anticipate major flooding levels to persist through the following week. Barge carriers also expect a backlog of up to two weeks in the region. To alleviate flooding at Cairo, Illinois, where the Ohio and Mississippi Rivers meet, the Corps increased water releases at the Barkley Dam on the Cumberland River and the Kentucky Dam on the Tennessee River. The Markland Lock, downriver from Cincinnati, Ohio, and the Newburgh lock near Owensboro, Kentucky, closed on 6 April. The Corps expects the full closure to remain until each location reaches its crest of nearly 57ft, which could occur on 8 or 9 April, according to the National Weather Service (NWS). Around 50 vessels or more are waiting to transit each lock, according to the Lock Status Report published by the Corps on 7 April. The Corps also shut a chamber at both Cannelton and McAlpine locks. The John T Myers and Smithland locks may close on 7 April as well, the Corps said. The Olmsted Lock, the final lock before the Ohio and Mississippi rivers, will require a 3mph limit for any traffic passing through. The NWS expects roughly 10-15 inches of precipitation fell along the Ohio and Mississippi River valleys earlier this month, inducing severe flooding across the Ohio and Mississippi River valleys. A preliminary estimate from AccuWeather stated an estimated loss of $80-90bn in damages from the extreme flooding. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

GHG pricing mechanism to be finalised this week: IMO

25/04/07

GHG pricing mechanism to be finalised this week: IMO

London, 7 April (Argus) — The structure of the International Maritime Organisation's (IMO) economic pricing mechanism — aiming to reduce the cost gap between conventional marine fuels and zero/near-zero emission alternatives — will be agreed on by the end of the week, including details on the cost of carbon emissions and whether remedial units will be included, IMO secretary general Arsenio Dominguez said today. Dominguez said the focus of the economic pricing mechanism is not just to raise revenue, but also to support fuel transition. By the end of this week, Dominguez said he is confident that we will see the architecture of what the proposal looks like, including if a remedial unit will be included in the pricing mechanism and what the numbers will look like. Dominguez also said that non-compliant penalties, once agreed on as part of the proposal, will be implemented via a guideline which will be developed after this week. This will be in place by the "entry into force" in 2027, and will cover vessels above 5,000 gross tonnage (GT). Dominguez confirmed that the latest discussions between member states have favoured a "crediting" system for alternative marine fuels as opposed to a "flat carbon levy", although these details are set to be finalised by 11 April. He highlighted three main points being discussed — the definition of "znz" (zero and near-zero emission fuels and technologies), the pricing mechanism itself, and the approach of governance when it comes to implementing the mid-term measures. One of the main concerns raised by market participants on IMO's efforts has been potential regulatory conflicts, such as in the EU where the emissions trading system (ETS) was extended into maritime in 2024 and FuelEU Maritime came into effect in 2025. The concern could be that clashes between IMO global regulations and EU regulations could lead to uncertainty and confusion in the market, potentially weighing on fundamentals for alternative marine fuels. Dominguez said this topic has not yet been explored, but he expects EU member states to look into the respective legal clauses and there could be potential for a unified regulatory approach in line with the global regulation. IMO had also been looking at raising the limit on biofuel content onboard a Type I barge to 30pc from the current limit of 25pc. The proposal for this was submitted to MEPC 83, with a view to approval. "The guidance allows conventional bunker ships certified for carriage of oil fuels under Marpol Annex I to transport blends of not more than 30pc by volume of biofuel, as long as all residues or tank washings are discharged ashore, unless the oil discharge monitoring equipment is approved for the biofuel blend(s) being shipped.", IMO said. The MEPC circular on interim guidance on the carriage of blends of biofuels and Marpol Annex I cargoes by conventional ships was approved today, subject to final editorial review and then to be released as a circular. Dominguez addressed questions regarding the IMO carbon intensity indicator (CII) system, for which a review is expected. IMO's CII regulation, which came into force in January 2023, requires vessels over 5,000GT to report their carbon intensity, which is then scored from A to E. A and B vessel scores are regarded as superior energy efficiency, while C, D and E are considered moderate to inferior scores. Dominguez said the review is likely to take place in 2027, in which IMO will assess the positive aspects of CII so far and identify any further improvements needed. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

USDA to release paused funds for higher biofuel blends

25/04/04

USDA to release paused funds for higher biofuel blends

New York, 4 April (Argus) — The US Department of Agriculture (USDA) said this week that the agency would release $537mn for 543 projects meant to expand infrastructure for higher biofuel blends, reviving many projects that were funded by former US president Joe Biden and then paused by the new administration. The grants will help support the installation of biofuel storage tanks and dispensers of higher ethanol blends, including E15 and E85, and higher biodiesel blends, including B20 and B99. They come from the Higher Blends Infrastructure Incentive Program, which started during US president Donald Trump's first term to help reduce the cost of installing biofuel infrastructure but was more recently expanded in scope with new funds from the Inflation Reduction Act. Project funding had been stalled after Trump pressed federal agencies to pause the disbursement of funds appropriated by that 2022 climate law. That directive affected projects due for funding under the higher blends program, including some approved in the final days of the Biden administration. Trump's efforts to freeze legislatively-approved funding is the subject of multiple court cases. USDA said that of the 543 projects approved for support, 188 projects — amounting to nearly $260mn of spending — were new commitments under the Trump administration. The largest of the new projects is a $14.3mn grant for QuikTrip to install E15 and B20 dispensers at 75 fueling stations across 13 states. More projects received funds in California than in any other state. USDA said releasing the funds — at the same time as various other government programs remain on hold — is part of its commitment to "aggressively exploring ways to unleash American energy and incentivize the production and use of homegrown US biofuels." Biofuel groups see potential for supportive policy under the Trump administration and lobbied US officials at a meeting this week for a steep increase in biomass-based diesel blend mandates. Ethanol lobbyists are privately optimistic too that the administration will soon start issuing emergency waivers to bypass typical summertime limits on nationwide E15 access. Support for biofuels is one way the Trump administration could reduce the toll on US farmers from an increasingly volatile trade war that threatens to cut off export markets for US corn and soy. USDA noted that the higher blends program, by allowing for more ethanol and biodiesel consumption, "protects American farmers from retaliatory trade practices." 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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