Cepsa to build Spanish HVO plant with Apical

: Biofuels, Hydrogen
23/04/14

Abu Dhabi-owned Cepsa said it plans to build a 500,000 t/yr second-generation hydrotreated vegetable oil (HVO) plant in southern Spain in partnership with Bio Oils, the Spanish subsidiary of Singapore-based palm oil producer Apical.

The plant will be located near the city of Huelva, where Cepsa operates a 220,000 b/d refinery and Bio Oils runs a 500,000 t/yr fatty acid methyl ester (Fame) biodiesel facility. Cepsa is Bio Oils' main customer and the pair share port installations and vessels in Huelva. Cepsa announced plans for an HVO facility at Huelva last month, putting the cost of the project at €1bn ($1.05bn). That investment will now be shared with Bio Oils.

Feedstock supply for the new plant has been secured through a long-term contract with Apical, which operates eight palm oil refineries, four biodiesel facilities and two palm kernel crushing facilities worldwide. Apical sold over 11mn t of palm oil products in 2021. Cepsa said it will source "organic waste such as agricultural residue" and used cooking oil (UCO) from Apical and this will make up most of the plant's feedstock.

Cepsa expects the HVO plant to come on stream in the first half of 2026, taking the firm towards its target to produce 2.5mn t/yr of biofuels by 2030, including 800,000 t/yr of sustainable aviation fuel (SAF). Cepsa's existing biofuels production capacity at Huelva and its other Spanish refinery — the 244,000 b/d Algeciras complex — had increased to 705,000 t/yr by the end of 2022 from 578,000 t/yr a year earlier.

Cepsa is focusing on biofuels and renewable hydrogen to achieve a target to reduce its scope 1 and 2 CO2 emissions by 55pc in 2030 and to become carbon neutral by 2050. The firm recently announced an acceleration of its renewable hydrogen capacity rollout in Huelva, where it now expects to have 400MW of electrolyser capacity on line in 2026, up from 200MW previously. This will be in time to supply the new HVO plant with renewable hydrogen for the hydrotreatment process.

Cepsa, which is controlled by Abu Dhabi sovereign wealth investor Mubadala, has said that the 1GW of hydrogen electrolysis capacity it expects to have on line at Huelva in 2030 should be enough to decarbonise its own fuels and petrochemicals business as well as the fertilizer business of Fertiberia, one of its partners in Huelva.

By Jonathan Gleave

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25/03/28

ISCC aware EU mulling certification recognition: Update

Adds comment from the European Commission London, 28 March (Argus) — The ISCC, an international certification system for sustainability, said today that it is aware of discussions in an EU committee about future recognition of its certification for waste-based biofuels. It said there is no legal basis for any planned measures. Industry participants said yesterday that the EU Committee on Sustainability of Biofuels, Bioliquids, and Biomass Fuels is drafting implementing regulations that would include a two-and-a-half year pause to obligatory acceptance of ISCC EU certification for waste-based biofuels. "This action is said to be subject to further legal scrutiny and will need approval by member states," the ISCC said. Currently, member states accept EU-recognised voluntary scheme certification as proof that fuel or feedstocks are compliant with the bloc's Renewable Energy Directive (RED) sustainability criteria. Market participants told Argus that discussions have centred around giving individual countries more choice. "Other voluntary schemes would not be able to fill the gap. The measure would be a severe blow to the entire market for waste-based biofuels and would seriously jeopardise the ability of the obligated parties to comply with blending mandates," the ISCC said. The ISCC has been singled out in a discriminatory way and has supported European Commission and member states' investigations into alleged fraud, it said. "We are more than surprised by this step […and] are unable to see the rationale of the planned measure, which seems ad hoc and baseless," it added. Secretary-general of the European Biodiesel Board (EBB) Xavier Noyon told Argus that, if confirmed, the suspension would affect thousands of operators. "At this time, member states are refusing to comment, and we call on the commission to urgently clarify any decisions of this nature that are on the table," he said. The EBB published its own proposed revision to the RED implementing legislation last month, which expanded the supervisory power of member states over voluntary schemes and certification bodies. The European Commission confirmed that the committee met on 26 March to discuss sustainable certification, promotion of biofuels, avoidance of double counting, and alleged fraud. "We are still working on our examination of this alleged fraud in biodiesel imports from China," said commission energy spokesperson Anna-Kaisa Itkonen. But the commission has not taken any decision yet and cannot allude to "possible" scenarios, she said. By John Houghton-Brown, Simone Burgin and Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US H2 projects stall, incentives fall short: Technip

25/03/28

US H2 projects stall, incentives fall short: Technip

London, 28 March (Argus) — Many US hydrogen project developers have paused or cancelled plans after finding costs were too high and government incentives were insufficient, even before President Donald Trump's return to the White House added uncertainty, Paris-listed contractor Technip Energies has said. Developers rushed to hire contractors for project studies in 2022-23 in a wave of optimism after the US announced tax credits for hydrogen production , but many projects were shelved or suspended between the end of 2023 and mid-2024. This came as companies realised the true cost of many items not limited to CO2 capture, hydrogen storage, and hydrogen liquefaction, Technip Energies' director Randy Kessler said. Multiple developers hired Technip for feasibility studies and engineering designs so it witnessed the drop-off in project plans first hand, Kessler said. Renewable hydrogen projects faced the most challenges, but gas-based projects with carbon capture and storage (CCS) "did not fare too well either", Kessler said. "Nearly all" renewable hydrogen projects were suspended when true capital and operating costs became known, especially compared with conventional 'grey' hydrogen, Kessler said. "Economics generally prevail in the long run, and at 5-8 times the cost of grey H2 production, most big players and project developers found out the incentives did not cover the gap," he said. Most of Technip Energies' clients pursuing CCS-enabled projects eventually asked for estimates for conventional grey hydrogen plants, with "pre-investment" to add CO2 capture units in the future, Kessler said. Washington made matters worse for developers with "confusing" incentives and delays in finalising eligibility rules for the tax credits, which it only settled on in early 2025 , just weeks before the change in administration. "The people who made money were the consultants who told people what it all meant," Kessler said. The late-2024 US election became both an "issue" and an "an excuse" for developers to explain the lack of progress, Kessler said. Many US firms complained that political uncertainty during the election period hampered their business decisions. Politically powerful energy companies lobbying Washington for "appropriate levels of incentives to cover the gap" or relaxing tax credit rules to lower project costs would be the most likely way to revive the sector, Kessler said. The US could consider setting mandates, but this is unlikely unless there is "more global buy-in", he said. Few regions, aside from the EU, have proposed mandates, and even there they have not been firmly implemented. But US firms and industrial groups are focusing lobbying efforts on protecting the hydrogen tax credits rather than quibbling over the rules, US sources said. The return of Trump to the White House made the future of the tax credits less certain because of his preference for boosting US fossil fuel output over investing in clean energy. Another contracting firm, Black & Veatch, recently said it was unsurprised to see many speculative projects fall by the wayside, and that the best route forward is better quality and modestly-sized projects with clear offtakers. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

ISCC aware of EU talks on certification recognition

25/03/28

ISCC aware of EU talks on certification recognition

London, 28 March (Argus) — The ISCC, an international certification system for sustainability, said today that it is aware of discussions in an EU committee about future recognition of its certification for waste-based biofuels. It said there is no legal basis for any planned measures. Industry participants said yesterday that the EU Committee on Sustainability of Biofuels, Bioliquids, and Biomass Fuels is drafting implementing regulations that would include a two-and-a-half year pause to obligatory acceptance of ISCC EU certification for waste-based biofuels. "This action is said to be subject to further legal scrutiny and will need approval by member states," the ISCC said. Currently, member states accept EU-recognised voluntary scheme certification as proof that fuel or feedstocks are compliant with the bloc's Renewable Energy Directive (RED) sustainability criteria. There has been no official statement from the European Commission but market participants told Argus that discussions have centred around giving individual countries more choice. "Other voluntary schemes would not be able to fill the gap. The measure would be a severe blow to the entire market for waste-based biofuels and would seriously jeopardise the ability of the obligated parties to comply with blending mandates," the ISCC said. The ISCC has been singled out in a discriminatory way and has supported European Commission and member states' investigations into alleged fraud, it said. "We are more than surprised by this step […and] are unable to see the rationale of the planned measure, which seems ad hoc and baseless," it added. Secretary-general of the European Biodiesel Board (EBB) Xavier Noyon told Argus that, if confirmed, the suspension would affect thousands of operators. "At this time, member states are refusing to comment, and we call on the commission to urgently clarify any decisions of this nature that are on the table," he said. The EBB published its own proposed revision to the RED implementing legislation last month, which expanded the supervisory power of member states over voluntary schemes and certification bodies. By John Houghton-Brown and Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil, biofuel groups meet to align on RFS policy

25/03/27

Oil, biofuel groups meet to align on RFS policy

New York, 27 March (Argus) — Energy and farm groups met last week at the American Petroleum Institute to negotiate a joint request for President Donald Trump's administration as it develops new biofuel blend mandates, according to five people familiar with the matter. The private meeting involved groups from across the supply chain, including representatives of feedstock suppliers, biofuel producers, fuel marketers, and oil refiners with Renewable Fuel Standard (RFS) obligations. The groups coordinated earlier this year around a letter to the Trump administration on the need to update the RFS and are now seeking agreement on other program elements. According to the people familiar with the matter, the groups agree on pushing the Environmental Protection Agency (EPA) to set higher blend mandates under the program's D4 biomass-based diesel and D5 advanced biofuel categories. Groups support slightly different volume targets that are nevertheless all in "a rounding number of each other" in the D4 category, according to one lobbyist. But there is still disagreement about whether to ramp up mandates quickly in 2026 or provide a longer runway to higher volumes. Clean Fuels Alliance America and farm groups have publicly supported a biomass-based diesel mandate of at least 5.25bn USG starting next year, which could justify a broader advanced biofuel mandate above 9bn USG, according to the people familiar, though others worry about fuel cost impacts if mandates spike so quickly. The current mandate for 2025 is 7.33bn USG in the advanced biofuels category, including a 3.35bn USG mandate for the biomass-based diesel subcategory, so the volumes being pushed for future years would be a steep increase. The RFS, highly influential for fuel and commodity crop prices, requires oil refiners and importers to blend annual amounts of biofuels into the conventional fuel supply or buy Renewable Identification Number (RIN) credits from those who do. The idea behind the groups' coordination is that the Trump administration might more quickly finalize RFS updates if lobbyists with a history of sparring over biofuel policy can articulate a shared vision of the program's future. One person familiar said the effort comes after the Trump administration directed industry to align biofuel policy goals, though others said they understood the coordination as largely voluntary. EPA did not provide comment. There is less agreement around the program's D6 conventional biofuel category, which is mostly met by corn ethanol. Oil groups have in the past criticized EPA for setting the implied D6 mandate at 15bn USG, above the amount of ethanol that can feasibly be blended into gasoline, though excess biofuels from lower-carbon categories can be used to meet conventional obligations. Ethanol interests support setting the D6 mandate even higher than 15bn USG, which could be a tough sell. The discussions to date have not involved targets for D3 cellulosic biofuels, a relatively small part of the program. A proposal to lower 2024 volumes has hurt D3 credit prices, signaling that future mandates are effectively optional, according to frustrated biogas executives , and has reduced the salience of the issue for other groups. A proposal from President Joe Biden's administration to create a new category called "eRINs" to credit biogas used to power electric vehicles has similarly not come up. "We're not expecting to see any attempt to include eRINs in this next [RFS] proposal," Renewable Fuels Association president Geoff Cooper told Argus earlier this month. The meeting last week was largely oriented around the RFS, though a National Association of Truck Stop Operators representative raised the issue of tax policy too. The group has been frustrated by the expiration of a long-running blenders credit and the introduction this year of a less generous credit for refiners, which is only partially implemented and has spurred a sharp decline in biomass-based diesel production. But others involved in negotiations, while they acknowledge tax uncertainty could hurt their case for strong mandates, are trying to avoid contentious topics and focus mostly on volumes. Republican lawmakers are separately weighing whether to keep, repeal, or adjust that credit to help out fuel from domestic crops, and there is no telling how long that debate might take to resolve. Another thorny issue discussed at the meeting is RFS exemptions for small refineries. Biofuel producers strongly oppose such waivers and say that exempted volumes should at least be reallocated among facilities that still have obligations. Oil groups have their own views, though it is unclear how involved the American Fuel and Petrochemical Manufacturers — which represents some small refiners and has generally been more critical of the RFS than the American Petroleum Institute — are in discussions. EPA is aiming to finalize new volume mandates by the end of this year , people familiar with the administration's thinking have said, though timing for a proposal is still unclear. Future conversations among energy and farm groups to solidify points of unity — and strategize around how to downplay disagreements — are likely, lobbyists said. RIN prices rally Speculation over the trajectory of the RFS, and the potential for higher future volumes, supported soybean oil futures and widened the bean oil-heating oil (BOHO) spread. The BOHO spread maintains a positive correlation with D4 RIN prices as a widening value raises demand for D4 credits as biofuel producers look to offset higher production costs. Thursday's session ended with current-year ethanol D6 credits valued between 79¢/RIN and 82¢/RIN, while their D4 counterparts held at a premium and closed with a range of 84¢/RIN to 89¢/RIN. These gains each measured more than 5.5pc growth relative to Wednesday's values. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US mulls cutting funds to H2 hubs outside of GOP states

25/03/27

US mulls cutting funds to H2 hubs outside of GOP states

Houston, 27 March (Argus) — The US Department of Energy (DOE) is considering cutting funding to hydrogen hubs that are located in primarily Democratic states, while sparing those mostly spread across Republican states, according to a list shared with Argus . A table circulating among officials shows hubs that are to receive federal funding labeled as either "cut" or "keep." Out of the seven hubs, only three are set to "keep": HyVelocity, in Texas and Louisiana, the Appalachian hub spanning Ohio, Kentucky and West Virginia and the Heartland hub spread across Minnesota, South Dakota and North Dakota. The hubs that may lose federal support include California's ARCHES; the Pacific Northwest Hydrogen Association (PNWH2) spanning Oregon, Washington and Montana; the Midwest hub encompassing Illinois, Indiana and Michigan, and the Mid-Atlantic hub in Pennsylvania, Delaware, and New Jersey. With the exception of the Midwest hub, most of the hubs facing potential cuts would use renewable and nuclear power to produce hydrogen. Most of the projects in the hubs on the "keep" list would be powered by natural gas and use carbon capture and storage (CCS) facilities to reduce emissions. The DOE did not immediately respond to requests for comment. Fuel Cell and Hydrogen Energy Association (FCHEA) chief executive Frank Wolak said the list came from DOE but cautioned the department's plans are still unclear."We're aware a list has been created that shows four of seven hubs being cut," said Wolak. "We haven't seen anything formal and don't understand exactly what is the DOE intention." Hydrogen hub funding advanced by the administration of former president Joe Biden was expected to come under scrutiny after President Donald Trump paused disbursements and ordered a review of clean-energy initiatives. Federal funding for the hubs grew out of the bipartisan Inflation Reduction Act and the Infrastructure and Investment Jobs Act, which together dedicated $8bn to jump start domestic hydrogen production in industrial clusters from the east to west coasts. The funding was structured to pay out to the hubs over four phases spanning a decade, with disbursements dependent upon projects meeting defined objectives related to operational progress and private-investment commitments. The first tranches to the seven hubs, totaling over $20mn, have been delivered but the list of potential cuts puts the fate of the second phase into doubt. "So far the Trump administration hasn't attempted to claw back that phase-one funding," said Sara Gersen, senior attorney for Earthjustice. "The question is, what happens in 2026 when they try to renew contracts for phase 2?" ARCHES chief executive Angelina Galiteva said the California hub "remains committed to working with our partners to establish a secure, reliable and competitive hydrogen ecosystem". Spokespeople for the others hubs vulnerable to losing federal funds did not immediately respond to requests for comment. However, at least one of the hubs put out a public statement highlighting how its goals align with the administration's objectives. "Many of these opportunities will support rural communities" and "advance American energy independence", the Pacific Northwest hub said in a social media post. Environmental advocates argue that the climate benefits from hydrogen originating from natural gas with CCS, the technology proposed for projects on the "keep" list, evaporate when net emissions are taken into account and do not justify the potentially billions of dollars in federal support they may receive when compared to other decarbonization techniques. "Spending billions of dollars on untested carbon capture technology in applications with no net-climate benefit is a waste of taxpayer money," said Anika Juhn, IEEFA energy data analyst and co-author of the report Blue Hydrogen's Carbon Capture Boondogle . "Building out renewable power infrastructure, improving energy efficiency, and reducing methane leakage from the natural gas system are more cost-effective and proven approaches to a clean energy transition." For now, both fossil-fuel based and renewable energy companies have been lobbying the Trump administration to keep clean energy incentives enacted by the IRA without differentiating how the hydrogen is produced. The potential cut to federal funding is not expected to affect industry support for the most lucrative incentives that come in the form of tax cuts, such as the support that has coalesced around protecting the 45V hydrogen production credit, said Wolak. "I don't see any change to the agenda of 45V, that effort is primary," said Wolak. "I see an effort perhaps arising to define the hubs and the merit of the hubs rising parallel to the 45V effort." FCHEA is advising its members that may be affected by hub funding cuts to contact their congressional representatives, Wolak said. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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