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Indonesia's Pertamina to produce SAF at Cilacap in 2Q

  • : Biofuels
  • 25/03/20

Indonesian state-owned refinery Pertamina will trial the production of sustainable aviation fuel (SAF) at its Cilacap refinery from the second quarter of 2025, the firm said in a press release on 18 March.

Pertamina will produce 9,000 b/d of SAF at Cilacap using 3pc, or 270 b/d, of used cooking oil (UCO) as feedstock in its initial stages. Cilacap can process 9,000 b/d of UCO, according to Pertamina president director Taufik Aditiyawarman. The firm has partnered with UCO collectors to ensure the availability of supplies, he added. The partnership with local UCO suppliers likely started in December 2024 when the firm sought 500t of UCO to trial production of co-processed SAF. Pertamina was aiming to start trial SAF production from the first quarter of 2025, it said at the time.

Indonesian domestic airline Pelita Air will be the first airline to use the co-processed SAF, according to Pertamina. The refiner is also considering other options for co-processed SAF production at its Plaju and Dumai refineries using UCO as a feedstock.

Pertamina previously conducted similar tests using 2.4pc of refined, bleached, and deodorised palm kernel oil (RBDPKO) as feedstock for co-processed SAF.

International flights departing Indonesia will be required to use 1pc SAF in their fuel mix in 2027, rising to 2.5pc by 2030 and 50pc by 2060.


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Brazil central bank raises target rate to 14.25pc


25/03/20
25/03/20

Brazil central bank raises target rate to 14.25pc

Sao Paulo, 20 March (Argus) — Brazil's central bank raised its target interest rate by 1 percentage point to 14.25pc amid accelerating inflation in a decelerating — but still heated — economy. The hike in the target rate, announced Wednesday, was the fifth in a row from a cyclical low of 10.5pc at the end of September last year, partly prompted by accelerating depreciation of the currency, the real, to the US dollar. Brazil's annualized inflation hit 5.06pc in February and is poised to keep accelerating. The bank's Focus economic report increased its inflation forecast to 5.7pc for the end-of-year 2025 from 5.5pc in January, when the bank's policy-making committee last met. Brazil's current government has an inflation ceiling goal of 3pc with tolerance of 1.5 percentage point above or below. The bank has recently changed the way it tracks the inflation goal. Instead of tracking inflation on a calendar year basis, it now monitors the goal on a rolling 12-month basis. The bank cited heated economic activity and a strong labor market as factors that have contributed to rising inflation. But the bank forecasts "modest GDP growth" for Brazil of almost 2pc in 2025, down from 3.4pc growth last year. Further tightening will also be linked to global economic uncertainty prompted by US president Donald Trump's aggressive trade and other policies and the monetary policies of the US Federal Reserve , according to the bank. Brazil's target interest rate is expected to keep rising at the bank's next meeting in 6-7 May, albeit to "a lesser extent" as the contributing factors are set to moderate, according to the committee. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

TotalEnergies delays, cuts size of Grandpuits HVO


25/03/20
25/03/20

TotalEnergies delays, cuts size of Grandpuits HVO

Barcelona, 20 March (Argus) — TotalEnergies is delaying the start up of its Grandpuits hydrotreated vegetable oil (HVO) plant, and is planning to reduce the plant's proposed capacity. TotalEnergies confirmed the planned 400,000 t/yr HVO and HVO jet fuel (SAF) plant, near Paris, will not start in 2025 as previously outlined. Instead, a first phase of 210,000t of SAF output is slated to begin operations "early in 2026." TotalEnergies said there will then be a second phase of 75,000t, which will start at an unspecified point in 2027, giving 285,000 t/yr. If all production is SAF this would be equivalent to around 6,155 b/d. The CGT union said its members at Grandpuits downed tools for 24 hours yesterday, 19 March, as a result of the company's announcement. Workers say they have been promised a meeting with management in mid-April, and there does not appear to be industrial action at the site today. TotalEnergies halted crude distillation at the 93,000 b/d Grandpuits four years ago . The transformation includes a 10,000 t/yr plastics recycling unit. It said 1,200 workers are on site to undertake the conversion and this will result in 250 full time posts on completion. This is consistent with previous plans . The delay and reduction in size at Grandpuits does appear to confound targets for TotalEnergies' HVO and SAF output previously laid out by chief executive Patrick Pouyanne . The company operates a 500,000 t/yr HVO and SAF plant at La Mede, near the port of Fos-Lavera. A Grandpuits worker said management has indicated the company will look to purchase HVO and SAF, in order to honour contractual obligations. By Adam Porter Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK study sets out Grangemouth's post-refining future


25/03/19
25/03/19

UK study sets out Grangemouth's post-refining future

Edinburgh, 19 March (Argus) — A government-funded study has identified nine potential low-carbon and renewable options for the Grangemouth site in Scotland following the planned closure of its 150,000 b/d refinery in the second quarter this year. The nine possible projects outlined in the Project Willow study centre around waste, bio-feedstocks and industries supporting the development of offshore wind. They could benefit each other through synergies and create up to 800 direct jobs, but their success "will require significant contributions from both the public and private sector", with an initial £3.5bn ($4.5bn) in capital investments needed, the study said. The £1.5mn report, paid for by the UK and Scottish governments, was commissioned by Grangemouth refinery operator Petroineos, which announced in November 2023 that it was going to close the plant and convert it into a fuel import terminal. The UK and Scottish governments have since set aside £25mn and £200mn for Grangemouth, along with other initiatives such as Scotland's £100mn Falkirk and Grangemouth Growth Deal package. The study's 'waste' pathway comprises a hydrothermal plastic recycling project, a dissolution plastic recycling facility and a bio-refining project relying on bacterial fermentation (ABE). Under the 'bio-feedstock' pathway, the study envisages a second-generation bioethanol plant on Scottish timber feedstock and an anaerobic digestion facility using organic waste to produce biomethane. Second-generation bioethanol refers to ethanol made from non-edible resources such as biomass. This pathway also suggests a sustainable aviation fuel (SAF) plant, with production made from hydroprocessed esters and fatty acids (HEFA). UK trade union Unite has been supportive of this option , but Petroineos deemed it unviable "under current regulatory conditions". The third pathway — called conduit for offshore wind — is mostly focused on hydrogen. It includes fuel switching, producing jet from e-methanol and methanol as well as producing low-carbon ammonia for the shipping and chemicals industry. The second-generation ethanol plant and the HEFA facility, as well as the e-methanol and e-ammonia projects, would have a longer 2030-40 timeline, against a 2028-30 timeline for the other projects. The projects would benefit from existing infrastructure such as Grangemouth's port, which includes container, bulk and liquid fuel terminals. "There are also opportunities to reuse existing tank storage, ethanol facilities, and other ancillary assets at the site," the study said. Unite has criticised the study's project timelines, pointing out most would start years after the refinery had closed, by which time jobs would have been lost. Many of the projects "could be fast tracked and implemented now", including converting the refinery to SAF production, the union said. "Project Willow was created by Petroineos as a fig leaf to justify its act of industrial vandalism of shutting the refinery and axing jobs. It asked the wrong questions and then failed to provide the answers that Grangemouth refinery workers need," Unite general secretary Sharon Graham said. "There are projects like SAF production which can be swiftly enacted to protect jobs and those opportunities must not be lost. This would pave the way for the UK to become a world leader in green aviation." By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

LowLands signs biomethanol deals with shipping firms


25/03/18
25/03/18

LowLands signs biomethanol deals with shipping firms

London, 18 March (Argus) — Dutch renewable methanol producer LowLands has signed several bio- and low carbon-methanol supply agreements with shipping firms, its chief executive Gijs Bakker said. The value of these agreements surpasses €1bn and is "rising fast", Bakker said. The supply will come from LowLands' 120,000 t/yr biomethanol facility in Moerdijk, Netherlands, which will use waste wood and municipal waste as feedstock. Bakker highlighted that the location at Moerdijk will offer "logistical advantages" to clients in Rotterdam and Antwerp. He said that the product price is very competitive compared with e-methanol, with a discount rate of 40-50pc. Production at the plant was initially scheduled to begin in 2024, but has been delayed until end of 2027 or early 2028, because of "war and its consequences on utility pricing", LowLands told Argus . "[Northwest Europe] has excellent infrastructure for collecting bio-wastes", Bakker said. "This makes [it] a preferred location for biomethanol production units." He noted that the slower-than-expected development of green hydrogen capacity means biomethanol from biogenic carbon will remain competitive for longer. International offtake agreements for renewable methanol are on the rise with the January rollout of the FuelEU maritime regulation, which could increase demand for biomethanol in shipping. Ship operators traveling to, out of, and within EU territorial waters must reduce their greenhouse gas (GHG) intensity on a lifecycle basis by 2pc. The cuts will reach 6pc from 2030 and gradually reach 80pc by 2050. Shipping firm Maersk has signed several letters of intent for procurement of biomethanol and e-methanol from producers including Norway's Equinor , Switzerland's Proman and Dutch-based chemical company OCI Global , and has an agreement with Chinese wind turbine manufacturer Goldwind for 500,000 t/yr from 2024. Maersk sees biomethanol and e-methanol as likely the most competitive and scalable pathways to decarbonisation this decade. While relatively small, Maersk's "green marine" fuel consumption, which includes biomethanol, increased by 38pc in 2024 to 3,034 GWh. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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