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Indonesia’s Pertamina gets ISCC certification for SAF

  • : Biofuels, Emissions
  • 24/08/23

Indonesia's state-owned Pertamina has obtained International Sustainability and Carbon Certification (ISCC) Corsia and ISCC EU RED-compliant certification for sustainable aviation fuel (SAF).

Pertamina's downstream arm Pertamina Patra Niaga obtained the certification as it is powering a domestic flight with SAF during the Bali International Air Show next month, said company sources. Following the air show, Pertamina also plans to encourage SAF adoption among its aviation customers, starting with those at the Ngurah Rai International Airport in Bali because of its high volumes of international flights. The Ngurah Rai aviation fuel terminal in Bali and Soekarno-Hatta Aviation Fuel Terminal and Hydrant Installation in Jakarta were the first locations to receive the certification.

Pertamina's customers will be able to claim reduced carbon emissions resulting from the use of SAF, hydrotreated vegetable oil and used cooking oil (UCO) purchased from the refiner, its director of central marketing and commerce Maya Kusmaya said. He added that Pertamina is the first operator in southeast Asia to market ISCC Corsia certified SAF.

But Pertamina's actual SAF production from palm and waste-based feedstocks such as UCO and palm oil mill effluent oil is likely to still start around 2026, when the second phase of its Cilacap "green refinery" is commissioned and comes on line, said a company source. It previously produced SAF and renewable diesel at its Cilacap and Dumai refineries but using refined, bleached and deodorised palm oil.

Pertamina awarded in July its first SAF import tender seeking 3,500 kilolitres of blended SAF for end-August delivery. The volumes will likely be used at the Bali International Air Show. The tender stated the blended SAF has a 30-40pc neat SAF component and the cargo must be Roundtable on Sustainable Biomaterials, ISCC Corsia or EU certified.

Indonesia's government had expressed at the end of May hopes to finalise a national roadmap and action plan for the industrial development of SAF by June. But there have been no updates so far, sources from Pertamina and another trader said. The country previously shared plans to announce a SAF roadmap-related presidential regulation on the sidelines of September's air show with no further details disclosed.


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Viewpoint: EU, UK mandates will drive global SAF demand


24/12/20
24/12/20

Viewpoint: EU, UK mandates will drive global SAF demand

London, 20 December (Argus) — Europe will be a primary consumption hub for sustainable aviation fuel (SAF) in 2025, driven by EU and UK mandates that come into effect in January. The mandates could push European SAF demand above 1.5mn t next year, according to Argus Consulting estimates. There should be more than enough global SAF supply to meet mandated demand in Europe in the early stages of obligations. If all announced projects are completed on time, global capacity could surpass 10mn t/yr in 2025, according to Argus Consulting, with hydrotreated esters and fatty acids synthetic paraffinic kerosene (HEFA-SPK) still the dominant SAF production pathway. But several projects have been hit with delays in the past, and some European majors have scaled back or paused their capacity plans. Actual production is likely to be far lower than nameplate capacity, with the International Air Transport Association (Iata) forecasting global output of 2.1mn t next year . European suppliers may also opt to maximise hydrotreated vegetable oil (HVO) production over HEFA-SPK. In most HEFA-SPK plants, the production process relies on first hydrotreating vegetable oils and fats, a process aligned with standard HVO production. Renewable diesel demand should increase with higher mandates for renewables in road transport and changes to German and Dutch carryover rules on renewable fuel tickets next year. At the same time, European HVO imports face barriers. Definitive EU anti-dumping duties (ADDs) on Chinese biodiesel and HVO are expected to be imposed by February . And anti-dumping and anti-subsidy duties are in place on HVO and biodiesel of US and Canadian origin . SAF is excluded from ADDs on Chinese biofuels. SAF supply has grown at a faster pace than demand this year, pushing the northwest European HEFA-SPK premium to jet fuel to record lows . The European benchmark HEFA-SPK fob ARA range assessment averaged around $2,203/t over 1 January-12 December, down from around $3,016/t in the same period last year. Ready, set, mandate Fuel suppliers will need to incorporate a 2pc share of SAF in their annual EU jet fuel deliveries from next year, with the share rising to 70pc by 2050. Synthetic aviation fuels, such as e-kerosine and hydrogen, must reach a total share of 1.2pc from 2030, rising to 35pc in 2050. The UK's mandate also requires aviation fuel suppliers to hit a 2pc SAF share in 2025, increasing linearly to reach 22pc in 2040. A UK obligation for power-to-liquid SAF will be introduced from 2028 at 0.2pc of total jet fuel demand, rising to 3.5pc in 2040. Separately, London's Heathrow airport aims to increase the share of SAF used to 3pc in 2025 as part of an incentive scheme that helps airlines cover extra costs. Beyond Europe Progress to introduce SAF blending obligations or legislate consumption targets is slower outside of Europe. In China, a pilot programme was launched earlier this year to support domestic SAF uptake. A consumption target of 50,000t was set in the country's five-year plan for 2021-25. Other initiatives in the Asia-Pacific region include South Korea's plan to require all international flights departing from its airports to use a mix of 1pc SAF from 2027 and Singapore's 1pc SAF target by 2026 for flights departing the country. Indonesia plans to require 1pc SAF from 2027, while Malaysia and Hong Kong are also expected to set targets. In the US, the level of priority to be given to renewable aviation fuels is less clear following Donald Trump's election victory. Guidance around a new producers' tax credit, set to come into effect next year, is still pending . The growth of the US SAF market has so far been driven mainly by federal and state financial incentives. By Giulia Squadrin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Cleanaway, LMS to produce landfill gas


24/12/20
24/12/20

Australia’s Cleanaway, LMS to produce landfill gas

Sydney, 20 December (Argus) — Australian waste management operator Cleanaway and bioenergy firm LMS Energy will partner on a 22MW landfill gas-fired power station at Cleanaway's Lucas Heights facility near the city of Sydney. Cleanaway, Australia's largest publicly listed waste management firm, will receive exclusive rights to landfill gas produced at Lucas Heights for 20 years, the company said on 20 December. LMS will invest A$46mn ($29mn) in new bioelectricity assets, including a 22MW generator. Tightening gas markets owing to underinvestment in new supply has led to speculation that more waste-to-energy plants could be brought on line in coming years, especially in the southern regions. Landfill gas projects receive Australian Carbon Credit Units (ACCUs) by avoiding methane releases, with the total ACCU quantity calculated after a default baseline of 30pc is deducted for projects beginning after 2015. A total of 42.6mn ACCUs were issued to landfill gas projects since the start of the ACCU scheme in 2011, 27pc of the total 155.7mn and the second-largest volume after human-induced regeneration (HIR) methods at 46.68mn. Canberra is reviewing ACCU issuance for these projects, and wants most projects to directly measure methane levels in captured landfill gas to avoid overestimation. Landfill gas operations which generate electricity from the captured gases can also receive large-scale generation certificates (LGCs). LMS has 70 projects currently registered at the Clean Energy Regulator (CER) and has received 24.57mn ACCUs since the start of the scheme. This is the largest volume for any single project proponent, just ahead of Australian environmental market investor GreenCollar's subsidiary Terra Carbon with 23.57mn units. Cleanaway received almost 1mn ACCUs from two projects and has four other projects that have yet to earn ACCUs. By Tom Major and Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Trump backs new deal to avoid shutdown: Update


24/12/19
24/12/19

Trump backs new deal to avoid shutdown: Update

Adds updates throughout Washington, 19 December (Argus) — US president-elect Donald Trump is offering his support for a rewritten spending bill that would avoid a government shutdown but leave out a provision authorizing year-round 15pc ethanol gasoline (E15) sales. The bill — which Republicans rewrote today after Trump attacked an earlier bipartisan agreement — would avoid a government shutdown starting Saturday, deliver agricultural aid and provide disaster relief. Trump said the bill was a "very good deal" that would also include a two-year suspension of the "very unnecessary" ceiling on federal debt, until 30 January 2027. "All Republicans, and even the Democrats, should do what is best for our Country, and vote 'YES' for this Bill, TONIGHT!" Trump wrote in a social media post. Passing the bill would require support from Democrats, who are still reeling after Trump and his allies — including Tesla chief executive Elon Musk — upended a spending deal they had spent weeks negotiating with US House speaker Mike Johnson (R-Louisiana). Democrats have not yet said if they would vote against the new agreement. "We are prepared to move forward with the bipartisan agreement that we thought was negotiated in good faith with House Republicans," House minority leader Hakeem Jeffries (D-New York) said earlier today. That earlier deal would have kept the government funded through 14 March, in addition to providing a one-year extension to the farm bill, $100bn in disaster relief and $10bn in aid for farmers. The bill would also provide a waiver that would avoid a looming ban on summertime sales of E15 across much of the US. Ethanol industry officials said they would urge lawmakers to vote against any package without the E15 provision. "Pulling E15 out of the bill makes absolutely no sense and is an insult to America's farmers and renewable fuel producers," Renewable Fuels Association chief executive Geoff Cooper said. If no agreement is reached by Friday at 11:59pm ET, federal agencies would have to furlough millions of workers and curtail services, although some agencies are able to continue operations in the event of a short-term funding lapse. Air travel is unlikely to face immediate interruptions because key federal workers are considered "essential," but some work on permits, agricultural and import data, and regulations could be curtailed. The US Federal Energy Regulatory Commission has funding to get through a "short-term" shutdown but could be affected by a longer shutdown, chairman Willie Phillips said. The US Department of Energy expects "no disruptions" if funding lapses for 1-5 days, according to its shutdown plan. The US Environmental Protection Agency would furlough about 90pc of its nearly 17,000 staff in the event of a shutdown, according to a plan it updated earlier this year. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Power supply crisis to lift Ecuador’s GHG emissions


24/12/19
24/12/19

Power supply crisis to lift Ecuador’s GHG emissions

Quito, 19 December (Argus) — Ecuador's greenhouse gas emissions have likely risen in 2024 as the country grappled with an ongoing power supply crisis because of severe droughts, interim energy minister Ines Manzano told Argus . Although the government has yet to calculate the exact percentage increase in GHG emissions, Manzano confirmed the increase after six months of droughts that led to a significant decline in hydropower output and extensive daily power outages of 3-14 hours from 23 September-20 December. Thermoelectric plants consumed an average of 26,560 b/d of diesel, fuel oil, natural gas and crude residue from January-October 2024, a 35pc year-on-year increase, Petroecuador data show. This trend is expected to continue through the end of the year as Ecuador will have installed and rented an additional 400 MW of thermoelectric capacity, including land-based plants and power barges by December. This expansion represents a 5pc increase in the country's total installed power capacity. In 2023, thermoelectric power plants emitted 3.7mn t of CO2 equivalent (CO2e), marking a year-on-year increase of 48pc, data from the energy ministry show. Drought-related challenges also led to 35 days of blackouts from October-December 2023, increasing reliance on thermoelectric power. That year, emissions from thermoelectric plants accounted for 9pc of the 43mn t of CO2e emitted by the energy sector, up from 6pc in 2022. The outlook for 2025 suggests little relief from the current trend. By April 2025 the government plans to bring online an additional 1.3GW of thermoelectric capacity, compared with April 2024, while adding only one new hydroelectric plant — the 204MW Toachi-Pilaton. By Alberto Araujo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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