Brazil biofuels venture to add complex in Alagoas

: Biofuels, Emissions, Fertilizers
25/01/28

Brazilian advanced biofuels firm GranBio, biofuels producer Impacto Bioenergia and two sugarcane plant operators will build a biofuels complex in northeastern Alagoas state, the companies said on Monday.

The biorefinery project, named Exygen I, will cost an estimated R1.5bn ($253mn) and produce carbon neutral ethanol, biomethane and biofertilizers. It will have production capacity of 160mn l/yr (2,760 b/d)by 2026 and use sugarcane byproducts as feedstock, according to GranBio.

Exygen I's estimated biomethane production capacity will be 50mn m³/yr. The complex will produce the renewable gas from vinasse, a by-product of sugarcane processing.

Future investments would include increasing Exygen I's storage capacity and biogas distribution. But the initial storage and biogas distribution capacities were not disclosed.

The project's next step includes producing biogenic CO2 — made from organic matter decomposition — biofertilizers and e-methanol, used in marine fuels.

The project is a joint effort between GranBio, Impacto Bioenergia, Alagoas-based producing unit Caete and sugar and ethanol firm Central Açucareira Santo Antonio.

Brazil's fuels of the future law, approved in October, increased incentives for the country's biofuels market.

By Maria Frazatto

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25/03/03

Mosaic aims to restore fertilizer output in '25

Houston, 3 March (Argus) — North American fertilizer producer Mosaic aims to complete maintenance at its assets in early 2025 and restore potash and phosphate production in line with historical levels following several disruptions to output in 2024. The producer forecasts its potash production to rise to a range of 8.7-9.1mn metric tonnes (t) in 2025, up from 8.7mn t in 2024. The company forecast phosphate production to rise to 7.4-7.6mn t in 2025 from 6.4mn t in 2024. The increased potash production will partly stem from the company's 400,000t Hydrofloat expansion at the Esterhazy mine in Canada's Saskatchewan province that Mosaic anticipates completing later this year. Mosaic also hopes to increase production following some maintenance work at its facilities, which will bring the company's capital expenditures for 2025 in line with 2024 levels at about $1.25bn. The producer has an ongoing turnaround at its sulfuric acid unit at its Bartow, Florida, phosphate processing plant that Mosaic expects to complete later this week. All sulfuric acid plants across Florida and Louisiana are back to doing turnarounds every three years, after the Covid-19 pandemic interrupted its maintenance schedule, the company said. The New Wales, Florida, plant brought forward some work at its phosphoric acid unit to address lingering reliability issues there that reduced output in 2024. The work at New Wales should increase Mosaic's production in the back half of the year, Mosaic said. Mosaic lost 700,000t of phosphate production and 250,000t of potash production in 2024 from operational and weather-related issues at its facilities, the company said. Back-to-back hurricanes impacting Florida in October contributed to the reduction in phosphate output. Electrical issues at the Esterhazy and Colonsay mines in Saskatchewan disrupted potash production in the third quarter. The company said it has recently operated both facilities at full capacity. Separately, Mosaic plans to finish the development of its 1mn t/yr blending plant in Palmeirante, Brazil, in 2025 as well. By Calder Jett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU promises flexibility for car CO2 standards: Update

25/03/03

EU promises flexibility for car CO2 standards: Update

Adds reaction quote from E-Mobility in new paragraph 5. Brussels, 3 March (Argus) — European Commission president Ursula von der Leyen today promised "more flexibility" on CO2 targets, balancing "predictability and fairness" for firms that have already introduced low or zero emission vehicles. Von der Leyen said the commission will stick to agreed CO2 emission reduction targets for fleets. But the commission will show "more pragmatism in these difficult times" and technology neutrality. She specifically promised a "focused" amendment to the bloc's CO2 standards regulation this month, to introduce "pragmatism" with respect to possible penalties for not complying with 2025 targets. The EU's CO2 standards for manufacturers lay down an EU-wide fleet greenhouse gas target for light passenger vehicles and vans of 93.6 g/km until 2029. That represents a 15pc reduction compared with a 2021 baseline for cars. This falls to 49.5 g/km for 2030-34, a 55pc reduction, and 0g/km from 2035. "Instead of annual compliance, companies will get three years," von der Leyen said, noting the principle of "banking and borrowing". "The targets stay the same; they have to fulfil the targets. It means more breathing space for industry and more clarity, and without changing the agreed targets," she said. The proposal for flexibility on CO2 standards will "significantly delay" Europe's electric vehicle roll-out over the next two years, industry association E-Mobility Europe secretary-general Chris Heron said. He estimated that half a million fewer electric cars could enter the EU market in 2025. "That uncertainty is bad news for investors in EU charging infrastructure, battery production, and e-mobility overall," Heron said, noting legal and competitive issues from changing the rules midway. The amendment would need to be agreed quickly by the European parliament and a qualified majority of EU member states. The EU biofuels and hydrogen industry last week expressed disappointment at a draft outline of the commission's forthcoming automotive industrial action plan, for not mentioning low and carbon neutral biofuels and hydrogen. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU promises flexibility for car CO2 standards

25/03/03

EU promises flexibility for car CO2 standards

Brussels, 3 March (Argus) — European Commission president Ursula von der Leyen today promised "more flexibility" on CO2 targets, balancing "predictability and fairness" for firms that have already introduced low or zero emission vehicles. Von der Leyen said the commission will stick to agreed CO2 emission reduction targets for fleets. But the commission will show "more pragmatism in these difficult times" and technology neutrality. She specifically promised a "focused" amendment to the bloc's CO2 standards regulation this month, to introduce "pragmatism" with respect to possible penalties for not complying with 2025 targets. The EU's CO2 standards for manufacturers lay down an EU-wide fleet greenhouse gas target for light passenger vehicles and vans of 93.6g/km until 2029. That represents a 15pc reduction compared with a 2021 baseline for cars. This falls to 49.5g/km for 2030-34, a 55pc reduction, and 0g/km from 2035. "Instead of annual compliance, companies will get three years," von der Leyen said, noting the principle of "banking and borrowing". "The targets stay the same; they have to fulfil the targets. It means more breathing space for industry and more clarity, and without changing the agreed targets," she said. The amendment would need to be agreed quickly by the European parliament and a qualified majority of EU member states. The EU biofuels and hydrogen industry last week expressed disappointment at a draft outline of the commission's forthcoming automotive industrial action plan, for not mentioning low and carbon neutral biofuels and hydrogen. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US refiners pin hopes on closures to boost margins

25/03/03

US refiners pin hopes on closures to boost margins

Houston, 3 March (Argus) — US independent refiners' fourth-quarter earnings dropped sharply as refining margins slumped, but upcoming refinery closures and a heavy spring maintenance season could bolster crack spreads later this year. The largest US refiner by capacity, Marathon Petroleum, reported a drop in its margins to $13/bl in the fourth quarter, from $18/bl in the same quarter of 2023. Its profits declined to $371mn in the quarter, from $1.5bn a year earlier. But Marathon expects margins to strengthen in the second half of this year, as announced refinery closures offset recent capacity additions, according to its chief executive Maryann Mannen. As much as 800,000 b/d of global refining capacity could be shut this year, helping to tighten the market and improve margins. Two large US refineries are scheduled to close down permanently — LyondellBasell's 264,000 b/d facility in Houston, Texas, is in the process of shutting and Phillips 66 plans to close its 139,000 b/d Los Angeles plant by the end of this year. Tightening supply is already helping to balance the market in the western US. Independent HF Sinclair says unplanned shutdowns and the start of maintenance in California are benefiting its refineries in neighbouring states that sell products to the region, including facilities in Anacortes, Washington, and Salt Lake City, Utah. California's supplies tightened after PBF Energy's 156,400 b/d Martinez refinery in the state was shut following a 1 February fire. And the market is bracing for a tighter market next year after the Phillips 66 plant closes. Phillips 66 reported a fourth-quarter loss in its refining businesses as margins narrowed. Crude refining margins fell to $6/bl in the fourth quarter, down from $14/bl a year earlier, it says. Narrower margins drove a $775mn fourth-quarter loss in its refining segment, compared with a profit of $859mn in the fourth quarter of 2023. The narrower margins partly reflected accelerated depreciation associated with the planned Los Angeles refinery shutdown. A burgeoning renewable fuels segment is offering some respite from the earnings downturn. Phillips 66's renewable fuels business made a $28mn profit in the fourth quarter, pushed up by higher margins at its Rodeo renewables plant in California and stronger international results. Valero's refining segment dropped sharply in the fourth quarter, as operating income fell to just under $440mn, from $1.6bn a year earlier. But its renewable diesel business, which includes a joint venture with Diamond Green Diesel, reported operating income of $170mn in the fourth quarter, up from $84mn in the same period a year earlier. Unclear outlook Despite the rapid growth in US renewables, the overall outlook is unclear. The prices of credits tied to US state and federal clean fuel programmes remain relatively low, cutting into margins for biofuels producers. A tax credit for biomass-based diesel blenders was replaced this year by a new subsidy that can exclusively be claimed by US producers. Companies that produce biofuels say they need more clarity from the US government on how the new tax credit works before they follow through on plans to increase production. Refiners in the US are worried about continuing to rely on government subsidies for renewables projects. US independent refiner CVR Energy intends to pause spending on its renewables business until there is more regulatory clarity in the country. "We've had all we can stand of exposure to government subsidies and it's going to take a shift change for us to really invest in it," CVR Energy chief executive David Lamp says. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US oil sector’s biofuel investments face uncertainty

25/03/03

US oil sector’s biofuel investments face uncertainty

New York, 3 March (Argus) — US renewable diesel production has surged in recent years, driven by climate policy and substantial investment from oil companies. But as the Republican administration of President Donald Trump settles into Washington, doubts about future policy are stalling investment in future growth. Renewable diesel seemed like a safe bet on green energy, allowing US refiners to avoid steep compliance costs from government mandates and produce a versatile, drop-in replacement for petroleum diesel. Companies including Valero, Phillips 66, and Marathon Petroleum — the country's largest producers — could also source the lowest-carbon feedstocks from around the world for US Gulf and west coast biorefineries, an advantage over landlocked competitors. Profitable renewables have offered some respite against lower US refining margins. The Inflation Reduction Act, which scrapped a tax credit that benefited biofuel imports and created a new one starting this year solely for domestic producers, provided another tailwind. Government agency the EIA early last year forecast that US renewable diesel production would hit an all-time high of 294,000 b/d in 2025, five times greater than domestic output four years ago. But the agency's forecast has since dropped by 21pc. Government data show fewer credits tied to biomass-based diesel were generated in January than in any month in more than two years despite recent capacity additions. US policy, which spurred refiners to produce renewable diesel, is now giving them pause. Former president Joe Biden's administration first missed a deadline for setting new biofuel blend mandates, a crucial demand signal, and then was late issuing guidance around the new tax credit. The climate law provided general rules around the clean fuel incentive, known as 45Z — saying, for instance, that lower-carbon fuels earn more subsidy but letting agencies hash out how to track emissions from various feedstocks, farm practices and production processes. More critically, Biden issued only preliminary instructions around 45Z, leaving it to Trump's administration to finalise regulations codifying credit rules. Tax lawyers say the new administration could shift course, as Biden's guidance is not binding, and that the mere threat of changes has stifled confidence in the sector. But refiners need answers to questions such as how to claim credit for fuels not included in current emissions modelling. "It's really impacting the ability for projects to get financing or for sales to occur," law firm Vinson & Elkins partner Lauren Collins says. "We're seeing that in real time, and I expect that's going to last." Live by the subsidy, die by the subsidy An ironic challenge for refiners dissatisfied with the halting roll-out of 45Z — many lawmakers agree that changes are needed. Republicans are developing legislation they can pass without Democratic support, and some House tax-writers express interest in using that process to modify 45Z. So Trump has little incentive to quickly finalise 45Z rules as Congress might reshape the credit anyway. Some farm-state Republicans have floated keeping 45Z but more aggressively limiting foreign feedstocks, while other lawmakers support scrapping the incentive altogether. Neither option would benefit refiners. And even if 45Z survives unaltered, Republicans' desire to curb spending makes the top priority of the biofuel lobby — extending the temporary incentive for longer — more challenging. Diversified refiners could be more able to weather the storm than pure-play biofuel producers. But new investments in expanded capacity are largely out of the question. CVR Energy has been weighing sustainable aviation fuel production at two refineries, but chief executive David Lamp says the company could not move forward without more policy certainty. "These subsidies are just scary," he says. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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