Svitzer to field test MAN methanol engine
Danish tugboat operator and Maersk subsidiary Svitzer will conduct a field test on the dual-fuel methanol MAN 175D engine on a newbuild tugboat under an initial agreement.
Svitzer had opted for the MAN 175D diesel engines to be installed on newbuild tugboats last year, and is now working with German manufacturer MAN Energy Solutions on the development and use of a dual-fuel version of the engine — which will be methanol compatible.
Svitzer's parent shipping firm Maersk currently has two methanol-fuelled vessels — the Laura Maersk and the Ane Maersk — and has another 23 on order, along with offtake agreements for green methanol.
Argus assessed the price of grey methanol on a dob Rotterdam basis at an average of $722.26/t very-low sulphur fuel oil energy density equivalent (VLSFOe) in March, a discount of just under $48/t to marine gasoil (MGO) — which is typically the fuel of choice for tugboats operating in northwest Europe. But the price of biomethanol on the energy density equivalent was at $2,256.22/t, a premium of over $1,486/t to MGO. Maersk expects biomethanol to reduce lifecycle greenhouse gas emissions by about 65pc.
Related news posts
Australia to explore biofuels mandate, incentives
Australia to explore biofuels mandate, incentives
Sydney, 15 May (Argus) — Australia's federal budget is funding mandate studies and pursuing certification schemes, given the increasing likelihood biofuels will play a significant role in the nation's energy transition. The federal government has pledged A$18.5mn ($12.3mn) in the four years from 2024-25 to develop a certification scheme for low-carbon liquid fuels, including SAF and renewable diesel, by expanding its guarantee of origin programme for long-term demand by the industry . An extra A$1.5mn over two years from 2024-25 will go to analysis of the regulatory impact of the costs and benefits of introducing mandates for low-carbon liquid fuels, while the government has promised consultation on possible production incentives for domestic project developers. Money from the A$1.7bn Future Made in Australia innovation fund will also be made available for liquid fuels research, to be administered by the Australian Renewable Energy Agency to commercialise net zero technology. "The package of announcements is dealing with crucial areas essential for deployment, including certification to ensure Australia develops a sustainable liquid fuels industry, resourcing to support key demand side interventions such as a low carbon fuels standard and consultation on additional supply-side measures such as production credits," Bioenergy Australia chief executive Shahana McKenzie said on 15 May. The funding pales in comparison to the $9bn hydrogen investment promised by the government, although much of that is deferred to the decade from the 2027-28 fiscal year. About 45pc of Australia's energy use is supplied by liquid fuels but the nations lags behind many countries on decarbonising its transport sector. Australia's Commonwealth Scientific and Industrial Research Organisation forecasts demand for jet fuel will grow 75pc by 2050. But no domestic production facility has yet reached a financial close, despite major airlines committing to increasing their SAF use. Domestic feedstocks including agricultural residues could meet 60pc of Australian jet fuel demand initially, growing to 90pc by 2050, Bioenergy Australia has said, while pursuing renewable fuels could cut the country's dependence on oil product imports from 90pc to 61pc by 2040. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
CVR expects normal Oklahoma refinery ops by end 2Q
CVR expects normal Oklahoma refinery ops by end 2Q
Houston, 14 May (Argus) — US independent refiner CVR has restarted several key units at its 75,000 b/d Wynnewood, Oklahoma, refinery and expects a return to normal operations by the end of the second quarter after a 28 April fire . The refiner has restarted a crude distillation unit (CDU), fluid catalytic cracking unit (FCC) and alkylation unit at the plant, while a reformer is restarting, CVR said in an operational update today. The April fire damaged pipe racks and pumps associated with the plant's naphtha processing units, the company said. CVR expects throughputs of 170,000-190,000 b/d in the second quarter, information it did not report during earnings released on 29 April as it assessed the impact of the fire. CVR reported throughputs of 201,000 b/d in the second quarter of 2023. The refiner expects its renewable diesel unit co-located at the Wynnewood plant to run throughputs of 1,800-2,600 b/d in the second quarter, down from 4,700 b/d in the prior year period. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US court upholds RFS blending targets for 2020-22
US court upholds RFS blending targets for 2020-22
Washington, 14 May (Argus) — A federal appeals court has affirmed biofuel blending requirements for 2020-22 under the Renewable Fuel Standard (RFS), rejecting lawsuits from refineries and renewable fuel producers challenging the standards. The US Environmental Protection Agency (EPA) acted within its authority in the rule when it revised the biofuel blending targets to account for small refinery exemptions it expected it would award in the future, the US Court of Appeals for the DC Circuit said today in a 2-1 ruling. The court rejected a complaint by refineries that argued EPA could only revise the annual biofuel blending targets based on exemptions it had already approved in the past. "The statute does not confine EPA to the Refiner Petitioners' preferred method of accounting for small refinery exemptions," DC Circuit judge Cornelia Pillard wrote on behalf of the majority. "EPA's choice to account for them both retrospectively and prospectively is not arbitrary or capricious." The ruling leaves intact a 2022 rule that required renewable fuel blending to increase to 20.63bn USG by 2022, up from 17.13bn USG in 2020. For the first time under the RFS, the rule used a new formula that tried to avoid a recurrent issue under which EPA failed to account for upcoming requests from small refineries for exemptions from the RFS. EPA has subsequently decided to start denying all small refinery exemptions, under a new argument that small refiners do not face a disproportionate hardship from complying with the RFS. But if the courts throw out that finding in a pending lawsuit , the formula at issue in today's court ruling could take on a greater relevance for how EPA accounts for small refinery exemptions when setting biofuel blending targets. The DC Circuit rejected a separate lawsuit by cellulosic ethanol producers that said EPA should have required increased blending of cellulosic ethanol, based in part on the availability of carryover compliance credits. The court found EPA had adequate authority to waive volumetric targets set by the US Congress in 2007 based on its finding there were inadequate domestic supplies of the fuel, which is produced from plant fibers. Judge Gregory Katsas, who dissented from the ruling, said he believed the biofuel blending requirements for 2022 were set "arbitrarily high." Katsas cited EPA's finding that those standards would impose an estimated $5.7bn in additional costs for fuel but only deliver $160mn in energy security benefits. Katsas also faulted EPA for increasing the biofuel blending targets by 250mn USG in 2022 to "cancel out a legal error" from biofuel blending targets in 2016. Katsas said there was no authority to transfer volume requirements from one year to another. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Saras sees diesel margin improvement later in the year
Saras sees diesel margin improvement later in the year
Barcelona, 14 May (Argus) — Italian independent refiner Saras said today it expects diesel margins to rise later in the year, boosting profits at its 300,000 b/d Sarroch refinery. The comapny said there has been a "drastic decline" in regional diesel margins since the first quarter of the year, caused by cargoes from the US arriving at the same time as supplies from east of Suez that had been delayed by taking the longer Cape of Good Hope route. This is not necessarily bad for Saras' profits, said the firm's chief operating officer Marco Schiavetti. "All these logistic de-optimisations are supporting diesel cracks in particular, volatility in the market is supportive for the business in general," he said. The company expects diesel margins to rise later in the year. Saras said today that some maintenance works on Sarroch's crude distillation units (CDU) would take place in the second quarter and again in the fourth quarter. There will also be works in both periods on the firm's adjacent IGCC power plant. Saras' prospective purchase by trading firm Vitol could close within a couple of months. Saras' chairman Massimo Moratti said there are "no obstacles" to the deal from Italian authorities, with the firm waiting on EU approval including regulations on antitrust law. Deputy chief executive Franco Balsamo said: "We do not have any disclosure on the expected end of the process, but in my point of view in a couple of months we should receive a green light from the EU." There has not yet been co-operation between Saras and Vitol regarding refinery operations, said Balsamo. "Vitol is one of the largest broker in this market so we have regular business with them when there are mutual economic conditions," he said. "But as far as any formal co-operation it is not the right time. We are waiting for all the necessary procedures." The company made a profit of €77.4mn ($83.5mn) in the January-March period, lower by 44pc from the first quarter of 2023. Profits were very similar to €76.6mn in the first quarter of 2022 when refining margins began rising following the Russian invasion of Ukraine at the start of February that year. Company crude throughput forecast has historically been changeable. But 2024 guidance remains the same as previous statements at 265,000-275,000 b/d. The firm said its first quarter crude gravity was 32.5°API almost identical to Argus ' assessment of the refinery slate . By Adam Porter 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