Japan’s Daio Paper to explore biorefinery
Japanese paper manufacturer Daio Paper is planning a trial biorefinery, aiming to begin commercial production of sustainable aviation fuel (SAF), second-generation bioethanol and biodegradable plastic feedstock by the April 2032-March 2033 fiscal year.
Daio, in partnership with domestic biorefinery venture Green Earth Institute (GEI), plans to develop technology to demonstrate manufacturing the bioproducts by 2030. Daio Paper plans to use wooden biomass, waste paper and paper sludge as feedstock. The company declined to disclose any planned commercial output capacity, as well as location of the biorefinery. The project is financed by Japan's state-owned research institute Nedo.
Daio Paper is attempting to achieve decarbonisation, while weakening paper demand has forced the industry to seek new business opportunities.
Fellow Japanese paper producer Nippon Paper has also tried to develop biorefinery technology with GEI, targeting to begin commercial production of bioethanol for SAF and petrochemical feedstock by 2027-28.
Related news posts
Low-CO2 biofuel feedstock imports to rise: USDA
Low-CO2 biofuel feedstock imports to rise: USDA
New York, 13 June (Argus) — A new US tax credit kicking off next year that is more generous for fuels that produce fewer greenhouse gas emissions will likely spur more imports of low-carbon feedstocks, the US Department of Agriculture (USDA) said in a report this week. A raft of government incentives, including the federal renewable fuel standard and low-carbon fuel standards (LCFS) in states like California, has already spurred a boom in renewable diesel production, upping demand for feedstocks that can be used to make the fuel. The US was a net soybean oil importer for the first time ever in 2023 because of strong demand from domestic refineries, and the value of US imports of animal fats and vegetable oils more than doubled from 2020 to 2023 according to the report. That trend could become even more pronounced next year as the Inflation Reduction Act's 45Z tax credit, which offers up to $1.75/USG for sustainable aviation fuel and up to $1/USG for other fuels like renewable diesel, comes into force. The credit can only be claimed for fuel produced in the US, likely cutting biofuel imports and sending more feedstocks that would have been refined abroad to the US instead, the report says. The 45Z credit will also be more generous to fuels with lower carbon intensity, upping demand for waste feedstocks like used cooking oil that already fetch greater discounts in LCFS programs. Fast-rising imports of China-origin used cooking oil have already frustrated some agricultural groups, which lose out if there are more ample supplies of waste feedstocks. The report says that while soybean oil was the "crucial feedstock" allowing for the recent growth in US renewable diesel, its share of the feedstock mix has been trending downwards because of competition from lower-carbon feedstocks and lower-cost canola oil from Canada. While soybean oil exports have plunged because of the renewable diesel boom, they could recover slightly if refineries increasingly turning to waste feedstocks cuts into US soybean oil's current premium over global vegetable oils. The report adds that soybean oil's role in renewable diesel production is also at risk from rising supplies of soybean meal, which is produced alongside oil at crush plants and where the global demand picture is less clear. "Based on global demand for soybean meal, soybean oil cannot continue to fuel renewable diesel production growth at current rates during the next few years without major changes to global soybean meal demand, shifts in exporter market shares, or lower supplies in other exporting countries," the report says. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Neste supplies SAF to Emirates at Changi airport
Neste supplies SAF to Emirates at Changi airport
Singapore, 13 June (Argus) — Dubai-owned airline Emirates has started using blended sustainable aviation fuel (SAF) supplied by Finnish biofuels producer Neste on flights departing from Changi airport from Neste's Singapore refinery. The two companies had signed a partnership in October 2023 for 3mn USG (8,600t) of blended SAF in 2024 and 2025, with Neste supplying over 6,000t of blended SAF to Emirates at Amsterdam's Schiphol airport this year. Neste has since supplied more than 2,600t of blended SAF into Changi's fuelling system over the past few weeks, with Emirates' deputy president and chief operating officer Adel Al Redha indicating a move towards "longer term agreements to help scale up a steady supply of SAF for operations". Emirates said it is the first international visiting airline using SAF supplied at Changi from Neste's Singapore refinery. By Deborah Sun Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Competing US farm bill drafts boost SAF
Competing US farm bill drafts boost SAF
New York, 12 June (Argus) — Republicans and Democrats say they still have work to do to negotiate a final agreement around this year's US farm bill, although proposals from both parties include provisions to boost production of sustainable aviation fuel (SAF). Senator John Boozman (R-Arkansas) released the latest proposal on Tuesday, which represents the view of the minority Republicans on the Senate Committee on Agriculture, Nutrition, and Forestry. The bill clarifies that SAF is an eligible technology under a federal program that offers loan guarantees for the construction and retrofitting of biorefineries. Similar language appeared in the Republican-backed farm bill draft that passed the House Committee on Agriculture last month and in Senate committee chair Debbie Stabenow's (D-Michigan) Democratic-backed farm bill framework. The Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program currently offers support to producers of "advanced biofuels," a category that does not explicitly include alternative jet fuels and specifically limits fuels derived from corn starch. A revised definition of "advanced biofuels" could also allow SAF to benefit from other US Department of Agriculture (USDA) programs, including one that pays companies to expand production of renewable fuels. Corn growers and ethanol producers, which could benefit from Inflation Reduction Act tax credits for low-carbon fuels, are among the groups calling for the farm bill to include such SAF provisions. The White House has set a 2030 goal for US SAF production to reach at least 3bn USG/yr (200,000 b/d), although the types of fuels that can qualify for federal support are still up in the air. Some environmentalists have backed restrictions around crop-based feedstocks while biofuel and airline groups support more flexibility. The similar SAF language in the three proposals is notable given rifts between Democrats and Republicans over other elements of the farm bill, a major five-year agriculture policy package set to expire after September this year. While a handful of Democrats crossed party lines to advance the House proposal out of committee, others have criticized it for cutting food assistance and removing "climate-smart" requirements included in the Inflation Reduction Act for USDA conservation programs. Stabenow said that key differences remain between her proposal and Republican bills but that she was looking forward to working with lawmakers to "finish our work by the end of the year." Full legislative text is not yet available for the Stabenow and Boozman proposals, and it is unclear when the Senate committee will mark up a final bill. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Ineos Styrolution to close Sarnia SM plant
Ineos Styrolution to close Sarnia SM plant
Houston, 11 June (Argus) — Global styrenics producer Ineos Styrolution plans to permanently close its430,000 metric tonne (t)/yr styrene monomer (SM) production site in Sarnia, Ontario, by June 2026. "The long-term prospects for the Sarnia site have worsened to the point that it is no longer an economically viable operating asset," Ineos Styrolution chief executive Steve Harrington said on Tuesday. The Sarnia site was shut down on 20 April to address issues related to benzene (BZ) emissions after the Canadian government issued a BZ emissions control order on 18 April. The company said it continues to assess what would be required to restart the plant, a process that will require about six months. Ineos said complying with the BZ emissions control order was unrelated to the decision to permanently close the plant. Ineos said it has made several investments to ensure safe and reliable operations and that additional large investments unrelated to plant startup were necessary for site operations moving forward, which the company considers economically impractical. Ineos declined to comment further. Sources close to the company said Ineos has been fulfilling Sarnia's customer orders with products from Texas units in Baytown and Texas City. By Jake Caldwell Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more