ACT to partner with LR, Wartsila, and UECC on CNSL
Dutch supplier ACT Group is collaborating with classification society Lloyd's Register, Finnish engine manufacturer Wartsila, and Norwegian shipping firm United European Car Carriers (UECC) on the development and evaluation of cashew nut shell liquid (CNSL) as a biofuel in marine biodiesel blends.
ACT confirmed the launch of a CNSL-based biofuel called "FSI.100", which has gone through extensive engine testing with various blend combinations. The CNSL-based biofuel has now received approval from engine manufactures to be blended as a 30pc component with marine gasoil (MGO) to form a marine biodiesel blend for the purpose of further sea trials. ACT confirmed that the FSI.100 product will benefit from lower acidity, and there is potential for the product to be compatible for blending with fuel oil. CNSL is an advanced biodiesel feedstock, making it a more appealing and price competitive option to buyers compared with other biodiesel feedstocks.
The development follows a report by Lloyd's Register fuel oil bunkering analysis and advisory service (FOBAS) that pointed to a correlation between engine fuel pump and injector-related damage in vessels and the presence of "unestablished" CNSL in the utilised marine fuels.
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Singapore’s bunker sales hit 10-month low in April
Singapore’s bunker sales hit 10-month low in April
Singapore, 15 May (Argus) — Singapore's April bunker sales fell to a 10-month low on weak very-low sulphur fuel oil (VLSFO) demand. But consumption of high-sulphur fuel oil (HSFO) and B24 biofuel bunkers remained firm. Singapore VLSFO bunker sales fell to at least a 15-month low of 2.25mn t in April, according to data from the Maritime and Port Authority of Singapore. This came because of slower demand as more buyers turned to lower-priced HSFO. Singapore HSFO sales accounted for a 42pc share of total fuel oil sales in April, up from a 31pc share a year earlier. Disruptions in the Red Sea led to increased fuel usage by ocean-going vessels with higher rates of scrubber technology adoption, raising demand for HSFO by a greater extent than for VLSFO. Consumption of bio-blended VLSFO, or B24, climbed by 61pc on the year because buying interest gained traction, but slipped by 10pc from strong consumption in March . LNG bunker sales rose by over sixfold on the year but edged down from a record high in March . By Cassia Teo and Asill Bardh Singapore bunker sales 000t Apr-24 m-o-m ± % y-o-y ± % Jan-Apr 2024 ± % Low-sulphur fuel oil (LSFO) 2,252 -6.9 -16 10,088 -2.2 Marine fuel oil (MFO) 1,600 0.0 31 6,466 32 Low-sulphur MGO (LSMGO) 277 -11.0 -11 1,201 -3.0 Bio-blended LSFO 60 -10.0 61 186 53 Liquified natural gas (LNG) 36 -7.9 582 111 N/A MGO 9.7 88.0 -37 43 -9.2 Marine diesel oil (MDO) 0.0 N/A N/A 0.0 N/A Bio-blended MDO 0.0 N/A N/A 0.0 N/A Bio-blended marine gasoil (MGO) 0.0 N/A N/A 0.0 N/A Bio-blended LSMGO 0.0 N/A N/A 0.0 N/A Bio-blended MFO 0.0 N/A -100 0.0 -100 Ultra low sulphur fuel oil (ULSFO) 0.0 N/A N/A 0.0 N/A Bio-blended ULSFO 0.0 N/A N/A 0.0 N/A Methanol 0.0 N/A N/A 0.0 N/A Total 4,235 -4.7 -0.6 18,096 8.9 Source: MPA Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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.
Falling D4 RIN values alter RD strategy
Falling D4 RIN values alter RD strategy
Houston, 14 May (Argus) — Soaring US renewable diesel production is cutting renewable fuel credit prices and pressuring biofuel production margins, potentially curbing industry growth. Renewable diesel (RD) production in North America last year jumped by 36pc to a record 3.45bn USG, and output this year is expected to climb by another 28pc to 4.43bn USG, according to Argus estimates. Rising production has cut the value of biomass-based diesel D4 credits, or renewable identification numbers (RINs), by 75pc over the past year, as credit generation from renewable diesel production has outpaced the the US Environmental Protection Agency's (EPA) biofuel blending targets. D4 RINs credits reflect compliance costs of biofuel that has been blended with diesel, used by fuel suppliers in accordance with the EPA's annual Renewable Fuel Standard (RFS) mandates. They also act as an incentive for renewable fuel production, as producers can sell RINs once their biofuels are blended with conventional road fuels. Lower prices on D4 RINs generate less revenue for the biofuels industry and also reduce compliance costs for obligated parties. Some refiners have shifted their strategic focus to compensate for lower RIN values, with some cutting back on renewable fuels production. Vertex Energy plans to idle renewable diesel production at its Mobile, Alabama, facility as the company anticipates generating wider margins by returning a converted hydrocracker back to fossil fuel production. Vertex remains open to restarting its renewable diesel production if market conditions improve. CVR Energy is considering changing feedstocks to improve its renewable diesel margins, possibly substituting corn oil for soybean oil. Chevron has shared similar sentiments, saying feedstock flexibility can be a major advantage across its operations. The company recently closed two biodiesel facilities in the US midcontinent as attention shifts to more profitable renewable diesel in the long term. Valero is nearly finished converting its renewable diesel unit to sustainable aviation fuel (SAF) at its Diamond Green Diesel joint venture facility in Port Arthur, Texas. The venture with Darling Ingredients is the largest producer of renewable diesel in North America and a major contributor to the increase in supply over the past two years. Valero views the D4 RIN market as in persistent oversupply due to the growth of renewable diesel, but the company remains optimistic due to other clean fuels incentives, including state-level low carbon fuel standard (LCFS) programs that provide incentives for reducing the carbon intensity of transportation fuels. "The long-term outlook of RD is still positive, because you look at the number of LCFS programs that are still being contemplated by legislation this year," Valero executive vice president Gary Simmons said. More renewable diesel capacity is expected to come online by the end of this year. Marathon Petroleum's Martinez, California, refinery is undergoing a full conversion from conventional petroleum refining to renewable fuels and is currently running at 50pc of capacity. Phillips 66 has taken a similar approach with the conversion of their Rodeo, California, plant, with 30,000 b/d of renewable diesel online. With EPA biofuel blending targets fixed through 2025, an aggregate decrease in renewable diesel production and subsequent lower generation of D4 RINs could counter the weakened RIN prices that are contributing to the industry's depressed production margins. By Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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