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Japan’s Idemitsu to produce HEFA-based SAF by 2028-29

  • : Biofuels
  • 24/08/02

Japanese refiner Idemitsu plans to begin commercial production of sustainable aviation fuel (SAF) at its Tokuyama plant, in western prefecture Yamaguchi, by the April 2028-March 2029 fiscal year.

Idemitsu aims to use the hydro-processed esters and fatty acids (HEFA)-method to generate 250,000 kilolitre (kl)/yr of SAF. The HEFA method involves hydrogeneration of feedstocks such as used cooking oil (UCO) as well as plant and animal oil residue and oil plants like pongamia pinnata in the future.

The firm will proceed to begin initial engineering within this month, as it recently completed a feasibility study for the project. Idemitsu did not disclose potential investment values.

Idemitsu is considering procuring 270,000-280,000 t/yr of feedstocks from Japan and overseas markets to produce the HEFA-based SAF, and will supply the produced SAF mainly to domestic users.

Idemitsu is considering building a new HEFA-based SAF production facility at its Tokuyama complex to fulfil its aim of generating 250,000 kl/yr of HEFA-based SAF. The firm is also mulling converting a former refining unit at the same complex into a HEFA-based SAF unit to meet the same aim. Idemitsu in 2014 scrapped the refining unit and permanently closed its former 120,000 b/d Tokuyama refinery, to turn the Tokuyama complex into a petrochemical production site.

Byproduct naphtha from manufacturing the 250,000 kl/yr of HEFA-based SAF may be used to produce ethylene at Idemitsu's 623,000 t/yr Tokuyama cracker. But the company is unsure how much byproduct naphtha can be generated.

Other SAF plans

Idemitsu also has plans to produce 100,000 kl/yr of SAF through the alcohol-to-jet (ATJ) production method, which involves the use of bioethanol as a feedstock, at its Chiba plant by 2028-29. The refiner also aims to purchase 150,000 kl/yr of SAF from overseas projects, including Australia, by 2030, to achieve the goal of supplying 500,000 kl/yr of SAF to domestic consumers.

Japan's SAF demand is expected to increase as the government plans to mandate that SAF must make up at least 10pc of total jet fuel consumption volume by 2030. Idemitsu considers feedstock procurement to be one of the major challenges in building the SAF supply chain.

Japan's SAF supplier, airplane-related firms and distributors – including refiner Eneos, trading house Itochu, domestic airline company Japan Airline, airport operator Narita International Airport and distribution company Nippon Express – and financial firm Mizuho as well as its research and consulting subsidiary Mizuho Research and Technologies on 2 August announced an agreement to conduct demonstrations of a system that will match sellers and buyers of emission reduction certificates. The platform is designed to facilitate the trading of such certificates between SAF suppliers and SAF users, in an effort to promote SAF consumption.


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24/08/02

Australia’s NSW may revise renewable fuels strategy

Australia’s NSW may revise renewable fuels strategy

Sydney, 2 August (Argus) — Australia's New South Wales (NSW) state could revise its renewable fuels strategy, in a move to help the state achieve its emission reduction goals and reach net zero by 2050. The Labor party-led state government has released a discussion paper, seeking input on whether it should set or redesign existing mandates for using fuels like renewable diesel, sustainable aviation fuel and green hydrogen and its derivatives. Currently, the ethanol and biodiesel mandates state that volume fuel retailers must ensure that 6pc and 2pc of the total volume of petrol and diesel sold is ethanol and biodiesel, respectively. Renewable fuels will be used in hard-to-abate sectors like aviation, manufacturing and heavy road transport as a replacement for fossil fuels. The government has opened the consultation with industry participants until 30 August, it said in a press release. Renewable fuel producers have long argued that the poor enforcement of the mandates, coupled with poor loopholes, has hindered the sector's growth in both NSW and Queensland states. The renewable fuels strategy will build on the existing NSW hydrogen strategy, the government said, to maintain support for hydrogen as a long-term abatement option while "expanding consideration to other renewable fuels for short and medium-term abatement." Expanding the renewable fuel scheme (RFS)beyond green hydrogen may further boost the sector, by creating a market-based certificate scheme for other fuels that require liable parties to purchase certificates representing each gigajoule of fuel produced. At present, the RFS legislates annual targets beginning at 7,417 t/yr in 2026, rising to 66,667 t/yr of green hydrogen by 2030. Gas retailers and large gas users that buy directly from producers must procure and surrender certificates to meet their share of the RFS's target or pay a penalty for a certificate shortfall, according to government policy. Mandates for green ammonia use in mining operations and biodiesel blending for the transport sector may also form part of the renewable fuels strategy, the paper said, while the government could set requirements for renewable fuel purchases by its own departments. NSW has ambitious plans for its green hydrogen industry, aiming for 2GW of electrolyser capacity by 2030 , backed by electricity network charge concessions to decarbonise its ammonia, heavy transport and the agricultural sectors initially. The government accepted planning applications for Australian utility Origin Energy's planned a 55MW Hunter Valley hydrogen hub near the city of Newcastle , which would sell 80pc of its output to Australian chemical and explosives firm Orica's nearby ammonium nitrate plant. Origin plans to make a final investment decision on the project by late 2024. The federal government is also funding studies into assisting the low-carbon liquid fuel industry , including options for production incentives and other measures to help its growth. The NSW government plans to reduce emissions by 50pc of 2005 levels by 2030, 70pc by 2035 and net zero by 2050. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Marine biodiesel demand slips in Rotterdam 2Q sales


24/07/30
24/07/30

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.

Air New Zealand abandons 2030 emissions target


24/07/30
24/07/30

Air New Zealand abandons 2030 emissions target

Sydney, 30 July (Argus) — 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. By Tom Major 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


24/07/30
24/07/30

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.

European marine biodiesel: Prices fall


24/07/29
24/07/29

European marine biodiesel: Prices fall

London, 29 July (Argus) — European marine biodiesel prices fell under pressure from limited demand and lower values in the underlying markets in the week's opening session. In northwest Europe, participants pointed to lacklustre spot marine biodiesel demand. Shipowners with scrubber-fitted vessels were looking to purchase high-sulphur fuel oil (HSFO)-based marine biodiesel blends in recent sessions. In the Mediterranean, suppliers told Argus that the bulk of enquiries received was for very-low sulphur fuel oil (VLSFO) blends. But overall spot demand was limited in the region. The east-west marine biodiesel spread — the premium held by B30 used cooking oil methyl ester (Ucome) dob ARA to B24 Ucome dob Singapore — narrowed by $4/t to $101/t at the close, a two-week low. In the underlying fossil markets, the front-month Ice Brent crude and Ice gasoil futures contracts eased at 16:30 BST. In the underlying biodiesel markets, Argus assessments for Advanced fatty acid methyl ester (Fame) 0 barges fell while the price of Dutch renewable tickets (HBE-Gs) remained firm to weigh on marine biodiesel blend prices in the Netherlands. EU emissions trading system (ETS) prices increased to $73.20/t from $72.25/t. But ETS-inclusive premiums held by marine biodiesel blends against their fossil counterparts diverged. B24 dob Algeciras-Gibraltar prices fell by $5/t to $790/t, but its premium against VLSFO with the inclusion of ETS costs widened by $4.71/t to $199.86/t. B30 used cooking oil methyl ester (Ucome) dob ARA values decreased by $4/t to $817/t but the blend's ETS-inclusive premium against VLSFO dob ARA gained $4.14/t to $242.82/t. Calculated B30 Advanced Fame 0°C CFPP dob ARA prices — which include a deduction of the value of Dutch HBE-G renewable fuel tickets — slipped by $10.93/t to $752.39/t, and the blend's ETS-incorporated premium against VLSFO decreased by $2.79/t to $178.22/t. Calculated B100 Advanced Fame 0 dob ARA values declined by $16.58/t to $1,141.98/t, and its premium against MGO narrowed by $19.30/t to $338.11/t when ETS costs were accounted for, the narrowest premium since 12 June. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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