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EU parliament votes to up renewables, energy efficiency

  • : Biofuels, Electricity, Emissions
  • 22/07/13

The European Parliament's energy committee today voted to increase the share of renewables in the bloc's energy mix to a 45pc target and to increase energy savings, reducing usage by at least 40pc in final energy consumption, both by 2030.

A large majority of the committee adopted legislation revising the 2018 Renewable Energy Directive (RED). This second recast of the directive, known as RED III, classifies soy as a feedstock with high risk of causing indirect land use change and confirms a 16pc cut in transport fuels' greenhouse gas (GHG) intensity compared with current figures. It also sets out details prioritising non-energy uses of biomass ahead of bioenergy.

Other targets were confirmed. The share of advanced biofuels and biogas in the transport sector should rise to at least 0.5pc by 2025 and 2.2pc by 2030 and the share of renewable fuels of non-biological origin (RFNBOs), including hydrogen, should increase to at least 2.6pc in 2028 and at least 5.7pc in 2030 in the transport sector. But the committee rejected a legal report that aimed to set aside forthcoming technical legislation establishing stricter conditions for the definition of renewable hydrogen.

German centre-right lawmaker Markus Pieper, parliament's lead negotiator on RED III, said there was a large majority behind the 45pc renewables target share for final energy consumption by 2030.

"We have adopted many pragmatic solutions that are much more ambitious and innovative than the initial European Commission proposal," he said. The commission in July 2021 called for a 40pc renewables share by 2030. This was revised in May to 45pc in proposals aimed at cutting dependence on Russian fossil fuels.

The committee further agreed on a separate legislative report confirming cross-party support for a 40pc cut in final energy consumption or 42.5pc for primary energy consumption compared to projections made in 2007 for 2030. This equates to a 14.5pc final energy consumption cut by 2030 compared to present figures. German green politician Jutta Paulus welcomed the committee's vote for an EU efficiency target of 14.5 percent as well as national savings commitments.

"Voluntary and low targets will not bring about the changes that are urgently needed," she said, noting further pressure could lead to an end of subsidies for "climate-damaging" fossil gas boilers as an efficiency measure. The committee also agreed to mandate firms to obtain annual energy savings obligations from end-consumers of 2pc in 2024-2030. Public buildings must obtain annual savings of 2pc.

Parliament is scheduled to vote on the renewables and energy efficiency reforms in September, and negotiations will then begin with EU member states over a final legal text. EU energy ministers have already reached a common position on energy efficiency and reform of the renewables directive.


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24/12/18

US funding bill to allow year-round E15 sales

US funding bill to allow year-round E15 sales

Washington, 17 December (Argus) — A stopgap government funding measure that leaders in the US House of Representatives unveiled late Tuesday would authorize year-round nationwide sales of 15pc ethanol gasoline (E15) and offer short-term biofuel blending relief to some small refiners. The 1,547-page bill, which is set for a vote in the coming days, is needed to avoid a government shutdown that would otherwise begin on Saturday. The bill would fund the government through 14 March and extend key expiring programs, such as agricultural support from the farm bill. It would also provide billions of dollars in disaster relief and pay the full cost of rebuilding the Francis Scott Key bridge in Maryland, which collapsed earlier this year after being hit by a containership. The inclusion of the E15 language, based on a bill by US senator Deb Fischer (R-Nebraska), marks a major win for ethanol producers and farm state lawmakers who have spent years lobbying to permanently allow year-round E15 sales. The bill would also provide short-term relief to some small refiners under the Renewable Fuel Standard that retired renewable identification numbers (RINs) in 2016-18 in cases when their requests for "hardship" waivers remained pending for years. The bill would return some of those RINs to the small refiners and make them eligible for compliance in future years. E15 was historically unavailable year-round because of language in the Clean Air Act that imposes more stringent fuel volatility requirements during summer months. In president-elect Donald Trump's first term, regulators began to allow year-round E15 sales by extending a waiver available for 10pc ethanol gasoline (E10), but a federal court in 2021 struck that down . Federal regulators have issued emergency waivers retaining year-round E15 sales over the last three summers. Enacting the stopgap funding bill would also make it unnecessary for eight states to follow through with a costly gasoline blendstock reformulation — set to begin as early as next summer — they had requested as a way to retain year-round E15 sales in the midcontinent . Oil industry groups last month petitioned EPA to delay the fuel reformulation until after the 2025 summer driving season, citing concerns about inadequate fuel supply and the prospects that a legislative fix would make required infrastructure changes unnecessary. Ethanol groups say the E15 legislative change could pave the way for retailers to more widely offer the high-ethanol fuel blend, which is currently available at 3,400 retail stations and last summer was about 10-30¢/USG cheaper than 10pc ethanol gasoline (E10). Offering the fuel year-round would be "an early Christmas present to American drivers," ethanol industry group Growth Energy chief executive Emily Skor said. House speaker Mike Johnson (R-Louisiana) has faced blowback from many Republicans in his caucus for negotiating such a sprawling bill that has tens of billions of dollars in new spending, after vowing to buck a practice of preparing a "Christmas tree bill" that forces lawmakers to vote on a must-pass bill right before the holidays. Johnson said today the bill remains a "small" funding bill, but that it needed to expand because of "things that were out of our control" such as hurricanes and economic aid for farmers. The Republican backlash could make it more difficult for Johnson to pass the bill, but Democrats are expected to provide broad support. By Payne Williams and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Danish fund buys 90pc of Canadian H2 project


24/12/17
24/12/17

Danish fund buys 90pc of Canadian H2 project

Houston, 17 December (Argus) — Danish renewable fund Copenhagen Infrastructure Partners (CIP) has acquired a majority stake in German developer ABO Energy's hydrogen project in Newfoundland, Canada. CIP bought a 90pc stake in ABO's Toqlukuti'k project, which is expected to use wind to produce hydrogen and ammonia, the companies said on Tuesday. ABO will hold the remaining 10pc. Financial terms of the transaction were not disclosed. The multiphased project would produce hydrogen to decarbonize production at the nearby Braya Renewable Fuels refinery in Come-by-Chance as well as ammonia for export, ABO has said. Construction was to begin in 2026, the company said in March. However, Braya announced 9 December that it is weighing whether to idle its 18,000 b/d biorefinery before the end of year because of poor margins and uncertainty about US biofuels policy. ABO and CIP did not comment on Toqlukuti'k project plans, other than noting the site has the capacity to develop up to 5GW of onshore wind. Capitalizing on ample wind and its proximity to northern Europe, Newfoundland has been at the center of Canadian ambitions to build hydrogen capacity and export derivative products. In 2022, Canada signed an agreement to supply Germany with clean hydrogen and foresaw exports by 2025. However, exports are unlikely by next year as project timelines have slipped and northern European demand has failed to takeoff. Last month, another would-be Newfoundland hydrogen developer said it was exploring options to co-locate its project with a data center or steel manufacturing because export markets were taking longer than expected to develop. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Alabama lock to remain closed until spring


24/12/17
24/12/17

Alabama lock to remain closed until spring

Houston, 17 December (Argus) — The US Army Corps of Engineers (Corps) has determined that the main chamber of the Wilson Lock on the Tennessee River near Florence, Alabama, will remain closed until spring 2025 as repairs continue. The Wilson Lock, the first lock on the Tennessee River, closed on 25 September after cracks in the lock gates on both the land and river sides were discovered. The main lock was closed to prevent further damage in the main chamber, although the auxiliary chamber was kept open for navigation. The Corps had been eyeing an earlier opening date for the main chamber since the start of November. Although months of repairs have taken place, the Corps resolved to keep the main chamber closed to preserve the lock and maintain personnel safety. The Corps, in partnership with the Tennessee Valley Authority (TVA), is still assessing the root cause of the cracking. A second de-watering of the gate is scheduled for the first three months of 2025 to repairs. No official date has been set for the lock reopening, although some barge carriers have heard of a late April opening date. A regular 15 barge tow has endured 5-6 days of delay through the lock on average, according to carriers. The Corps' Lock Status Report on the Wilson Lock reported a nearly two-week delay for tows navigating through the lock. This has been costly for shippers by forcing them to pay delay fees. Wilson Lock is the second lock in Alabama to undergo a lengthy closure this year. Most lock and dams along the US river system are over 70 years old, likely resulting in more closures in the coming year. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Viewpoint: European UCO to react to policy shifts


24/12/17
24/12/17

Viewpoint: European UCO to react to policy shifts

Amsterdam, 17 December (Argus) — European demand for waste feedstock used cooking oil (UCO) is likely to rise in 2025, but supply could tighten with policy shifts in Asia and the US affecting global trade flows. Sustainable aviation fuel (SAF) mandates in the EU and in the UK , which enter into force from 2025, position waste feedstocks such as UCO as crucial inputs. Biofuels derived from food and feed crops, palm fatty acid distillate, palm and soy-derived materials, soap stock, and their derivatives, unless included in Annex IX of the EU's Renewable Energy Directive (RED), are excluded from both mandates. Biodiesel from waste-based feedstocks — UCO-based Ucome in particular — will be a key compliance option for ship owners in reaching the FuelEU Maritime mandate in 2025. Supply uncertainties to linger China's removal of a 13pc tax rebate on UCO exports in December has meant uncertainty about UCO supply to Europe, with expectations of resulting higher prices for Chinese products in 2025. A good share of Chinese UCO will be retained for domestic use, particularly for production of SAF, which may offer a high-value alternative outlet and can still be exported to Europe without the application of anti-dumping duties , unlike biodiesel and hydrotreated vegetable oil (HVO). European imports of UCO from China had already declined by around 70,000t on the year in the January-September 2024 period. This was primarily driven by the closure of arbitrage, after attacks on shipping through the Red Sea led to elevated freight costs. UCO exports from key supplier Indonesia to Europe fell by around 36pc on the year to 89,000t in January-September due to increased domestic consumption driven by inland mandates, export duties , and domestic obligations . There may be some relief for European buyers that look for Chinese UCO in 2025, but the outlook is murky. Trade flows shifted away from Europe in 2024 with significant amounts of Chinese UCO moving to US HVO buyers at the expense of flows elsewhere. US buyers are waiting for clarity on the Inflation Reduction Act's carbon-intensity-based 45Z credit and this, coupled with Donald Trump's victory in the US presidential election and the potential for trade tariffs, has hit commerce on the route. Additionally, a potential reduction in the carbon intensity of soybean oil for use in the US biofuels complex may decrease demand for Chinese UCO. This could free up supply for European buyers once more, somewhat balancing the likelihood of increased domestic UCO demand in China. New suppliers step in European trade with suppliers from Latin America, the Middle East and some southeast Asian countries picked up in 2024. Imports from Chile, for example, increased fourfold in January-September 2024 compared with the same period of 2023 and should grow further now trading relationships are established. But it is unlikely that collectively these regions can fully compensate for a decline in Chinese product. UCO imports from China and major southeast Asian markets such as Indonesia and Malaysia remain a critical component in Europe's supply-demand balance, particularly in the face of rising domestic mandates and new policy ambitions such as the most recent iteration of the Renewable Energy Directive (RED III) and aviation and maritime targets. Tight supply and robust demand sent the Argus UCO fob ARA range spot price assessment to a more than two-year high of $1,210/t in early December 2024. Trade of cash-settled futures linked to this benchmark is tentative, with contracts changing hands out to the end of the first quarter of 2025, but market participants are more tentative into the second quarter. By Anna Prokhorova Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia to invest $9mn in biofuel production projects


24/12/17
24/12/17

Australia to invest $9mn in biofuel production projects

Sydney, 17 December (Argus) — The federal Australian Renewable Energy Agency (Arena) has allocated A$14.1mn ($9mn) toward two studies for separate biofuel production projects. Australian refiner and marketer Ampol's proposed Brisbane Renewable Fuels project will receive A$8mn toward its A$30.2mn pre-engineering study, Arena said on 17 December, while A$6.1mn will go to grains aggregator GrainCorp's sustainable aviation fuel (SAF) Oilseed Crushing Facility pre-deployment study. Ampol's study will focus on developing more than 450mn litres/yr production capacity for SAF and renewable diesel at the company's 109,000 b/d Lytton refinery near the city of Brisbane. GrainCorp's plans for an oilseed crushing facility will produce 330,000 t/yr of canola seed oil, or about 12pc of the nation's 6.13mn t canola exports in the 12 months to 30 September, for use as SAF feedstock, Arena said. Both Ampol and GrainCorp recently entered an initial agreement with London-based fund manager IFM Investors to explore options for building a renewable fuels business. While Australia is a major exporter of feedstocks for biofuels such as canola and tallow, it imports most of its liquid fuels, with diesel and jet fuel imports averaging 520,000 b/d and 129,000 b/d respectively in the first nine months of 2024. Fellow SAF aspirant Jet Zero received A$9mn from Arena in September, bringing the total outlay from the agency's A$30mn SAF funding initiative to just over A$23mn. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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