Air New Zealand abandons 2030 emissions target
State-controlled carrier Air New Zealand has announced its withdrawal from the Science Based Targets initiative, saying its 2030 emissions reduction goal is unachievable because of issues outside the airline's control.
It cited factors including affordability and availability of alternative jet fuels, as well as a lack of global and domestic regulatory and policy support.
"In recent months, and more so in the last few weeks, it has also become apparent that potential delays to our fleet renewal plan pose an additional risk to the target's achievability," chief executive Greg Foran said on 30 July.
Air New Zealand said it will develop a new short-term carbon emissions reduction target while working to transition away from fossil fuels and reach net zero emissions by 2050.
The company was aiming to cut its carbon intensity by 28.9pc before 2030 from a 2019 baseline, or an absolute reduction in emissions by 16.3pc over the same period, pledging to consider electric, hybrid and green hydrogen aircraft as part of its decarbonisation strategy.
It expected sustainable aviation fuel (SAF) would comprise 10pc of jet fuel use in the 2029-30 fiscal year as part of the target. But New Zealand's previous Labour party government cancelled a planned biofuels mandate early last year in a blow to the sector's domestic manufacturing hopes.
Air New Zealand took delivery of a 500,000 litre SAF shipment last month and has a deal with Finnish producer Neste for 7,200t for use at Los Angeles airport, as no SAF is currently produced in New Zealand.
But Air New Zealand said it was paying a fourfold premium on the price of jet fuel for the imports, advocating for a SAF-specific mandate to spur domestic production in its 2023 sustainability report.
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Marine biodiesel demand slips in Rotterdam 2Q sales
Marine biodiesel demand slips in Rotterdam 2Q sales
London, 30 July (Argus) — Sales of fossil bunker fuels and marine biodiesel blends at the port of Rotterdam inched higher in the second quarter of the year, but were below levels of a year earlier, according to official port data. Marine biodiesel blend sales retracted by about 10.5pc quarter-on-quarter ( see table ). Market participants pointed to muted spot demand as a consequence of limited regulatory incentives and cheaper marine biodiesel prices east of Suez. The premium held by B30 used cooking oil methyl ester (Ucome) dob ARA to B24 Ucome dob Singapore averaged $93.17/t in the April-June period, compared with $40.98/t in the two months prior to April. But blend sales were 26.5pc above April-June 2023, with stable voluntary demand from cargo owners seeking scope 3 emissions rights and shipowners conducting trials ahead of the introduction of FuelEU Maritime regulations next year. High-sulphur fuel oil (HSFO) sales rose slightly on the quarter and fell from the second quarter of last year. Chronic traffic disruption in the Red Sea has continued to redirect vessels on a longer journey around the Cape of Good Hope. Market participants told Argus this has lent support to HSFO demand in Rotterdam, with the high-sulphur product a lucrative option for scrubber-fitted vessels embarking on the east-west route. Sales of very-low sulphur fuel oil (VLSFO) and ultra-low sulphur fuel oil (ULSFO) rose by 7pc compared with the first three months of the year, but tumbled from the second quarter of 2023. Market participants reported limited VLSFO demand and steady production during the quarter. Combined sales for marine gasoil (MGO) and marine diesel oil (MDO) fell on the quarter and on the year in April-June with mostly lacklustre demand. LNG bunker fuel sales continued to rise, further complimented by 2,200m³ of bio-LNG sold, the highest since official records for bio-LNG sales began. By Hussein Al-Khalisy Rotterdam bunker sales t Fuel 2Q24 1Q24 2Q23 q-o-q% y-o-y% VLSFO & ULSFO 917,253 857,579 1,127,145 7 -18.6 HSFO 825,125 818,028 847,189 0.9 -2.6 MGO & MDO 369,267 383,409 404,872 -3.7 -8.8 Biofuel blends 235,043 262,634 185,824 -10.5 26.5 Total 2,346,688 2,321,650 2,565,030 1.1 -8.5 LNG (m³) 148,932 131,960 110,231 12.9 35.1 bio-LNG (m³) 2,200 0 0 - - Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Fortescue, Cosco eye iron ore on ammonia-fuelled ships
Fortescue, Cosco eye iron ore on ammonia-fuelled ships
Singapore, 30 July (Argus) — Australian iron ore producer Fortescue and China-based firm Cosco Shipping will explore building green ammonia-powered ships to transport iron ore from Australia to China. The two companies signed an initial agreement to collaborate on decarbonising shipping, Fortescue said today. The collaboration will include building and deploying Cosco vessels, or co-owning vessels, which would be fuelled by green ammonia. The vessels will ship iron ore and other mineral products through the Australia-China iron ore green shipping corridor, with aims to lower the corridor's carbon emissions. "This collaboration marks a significant step in decarbonising the shipping industry and establishing a green fuel supply chain," said Fortescue Metals chief executive officer Dino Otranto. This comes after the Fortescue Green Pioneer in March received the world's first certification to use ammonia with marine gasoil (MGO) as a marine fuel. The trial was conducted in the port of Singapore . By Mahua Chakravarty Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
China’s total carbon credit trade hits 465mn t, $3.7bn
China’s total carbon credit trade hits 465mn t, $3.7bn
Singapore, 30 July (Argus) — Cumulative trading volumes on China's national carbon market — which its environment ministry (MEE) described as the world's largest — hit 465mn t as of the end of June, with a transaction value of about 27bn yuan ($3.72bn). Overall carbon prices have also climbed steadily from Yn48/t when the carbon market first started in July 2021 to close at Yn91.60/t on 26 July, marking a 91pc increase, said MEE spokesperson Pei Xiaofei on 29 July. Average monthly carbon trading volumes hit 3.67mn t during January-June this year, almost trebling from a year earlier, according to a carbon market progress report that MEE released last week. China Emissions Allowance trade volumes were 263mn t with a transaction value of Yn17.26bn during the emissions trading scheme's second compliance cycle from 1 January 2022 to 31 December 2023, the report showed. These rose by 47pc and 125pc respectively from the first compliance cycle . Participating companies also increased by almost 50pc from the first cycle, with the number of participating key emitting entities also climbing by 32pc. China's national carbon market consists of a compliance market and a voluntary market, with the latter relaunching in January after a seven-year suspension . The market currently includes 2,257 key emitting entities in the power generation industry, which covers about 5.1bn t/yr of carbon dioxide (CO2) emissions and accounts for over 40pc of China's total emissions, according to MEE. Indonesia Carbon trading has also picked up in other Asia-Pacific countries. Indonesia's carbon transactions in the power generation sector in 2023 totalled 84.17bn rupiah ($5.2mn) and represented 7.1mn t of CO2 equivalent (CO2e), announced the secretary-general of the ministry of energy and mineral resources (ESDM) Dadan Kusdiana last week. Indonesia's carbon trading roadmap prepared by the ESDM consists of three phases and has the potential to reduce greenhouse gas emissions by at least 100mn t of CO2e by 2030, said Dadan. The three phases will "gradually increase CO2 emission standards for power plants, especially steam-powered and coal-powered plants," he said. Carbon trading will gradually be applied to all fossil fuel power plants, including those under state-owned power utility PLN. Indonesia launched its carbon exchange in September 2023 . By Tng Yong Li and Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Ampol, Graincorp, IFM to study Australia SAF production
Ampol, Graincorp, IFM to study Australia SAF production
Sydney, 30 July (Argus) — London-based fund manager IFM Investors and major east coast Australian grain aggregator GrainCorp will partner with Australian refiner and retailer Ampol to explore establishing an integrated renewable fuels business. Ampol and IFM plan to assess the feasibility of producing sustainable aviation fuel (SAF) and renewable diesel at the site of Ampol's 109,000 b/d Lytton refinery at the port of Brisbane, in Queensland state, Ampol said on 30 July. The firms will work with GrainCorp on the supply of feedstocks, including additional crushing capacity to supply canola oil, to the potential plant. The collaboration builds on an IFM-GrainCorp initial agreement signed last year, where the firms pledged to begin developmental plans for a 720,000 t/yr SAF facility. With domestic feedstock potential for about 5bn litres/yr of SAF, Australia could become a major producer, the nation's federal science agency CSIRO has said. GrainCorp is a significant exporter of canola oil, tallow and used cooking oil for biofuel production. Canberra has allocated funds for a low-carbon liquid fuel industry development plan in recent months, agreeing to develop a certification scheme to help establish domestic output. Australia's aviation white paper which is due for release mid-year is expected to provide further strategic direction on the role of SAF and other emerging technologies in the sector. Australia's jet fuel imports in 2024 have averaged 127,000 b/d, according to Australian Petroleum Statistics (APS), with Australia's domestic refineries producing 26,000 b/d of jet fuel during the same period. APS data shows diesel imports of 514,000 b/d for the first five months of 2024, with refineries producing 73,000 b/d. 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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