Malaysia targets B30 mandate for heavy vehicles by 2030
Malaysia will target 30pc biodiesel blending (B30) in heavy land vehicles by 2030 when palm oil-gasoil spreads are projected to be economically viable, according to the country's national energy transition roadmap (NETR) released on 29 August.
Putrajaya, the government's administrative centre south of the capital Kuala Lumpur, seeks to do a "comprehensive review" of the biodiesel blending programme to ensure the blending rate is achievable with a B30 mandate by 2030, while aiming to increase biorefinery capacity to 3.5bn litres and biomass and biogas power generation capacity to 1.4GW by 2050, the roadmap document said.
The NETR will focus on two key segments of Malaysia's bioenergy potential — agriculture-based bioenergy and waste-based bioenergy such as used cooking oil (UCO).
Malaysia will explore bamboo as a bioenergy feedstock while also supporting research for agriculture-based bioenergy, while developing third-generation bioenergy from algae.
The world's second largest palm oil producer will also strive to improve acceptance of palm derivatives such as crude palm oil and palm oil mill effluent (Pome) oil. The combined bioenergy generation potential of palm oil related residue is at 2,850 MW, the report said.
The country would target scaling up UCO collection by increasing collection facilities, with state-owned energy firm Petronas already having started a UCO collection pilot at its gasoline stations.
Malaysia is expected to produce 240,000 t/yr of UCO by 2030, according to the roadmap document.
SAF blending mandate
Malaysia will also first seek to establish a 1pc sustainable aviation fuel (SAF) blending mandate while obtaining SAF certification from international bodies, with the mandate rising to 47pc by 2050.
Putrajaya has identified hydroprocessed esters and fatty acids (HEFA) as the frontrunner technical pathway for SAF output in the near term, with Petronas signing an agreement with the Malaysia Palm Oil Board on 14 August to study all types of palm wastes for SAF and hydrotreated vegetable oil (HVO) production.
The state-owned refiner's upcoming biorefinery at the Pengerang integrated complex will be able to produce SAF, with completion targeted by 2026.
Malaysia also expects alcohol-to-jet (AtJ) and gasification-integrated Fischer-Tropsch (GFT) technologies to play a big role in long-term SAF production, the roadmap document said.
Neighbouring country Indonesia's state-owned energy firm Pertamina has also begun trialling the utilisation of SAF in its jet engines.
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Brazil narrows lower biofuel mix mandate in south
Brazil narrows lower biofuel mix mandate in south
Sao Paulo, 10 May (Argus) — Brazil's oil regulator ANP dialed back the reduced biofuels mandatory blend in Rio Grande do Sul state to four cities amid the recent flooding in the region. Low blending areas now apply only to the cities of Canoas, Esteio, Rio Grande and Santa Maria. The measure will still last for 30 days, starting on 4 May. ANP lowered the anhydrous ethanol blend on gasoline to 21pc from the current 27pc in the entire state earlier this week , while pushing the mandatory biodiesel mix for 10ppm (S10) diesel down to 2pc, from the usual 14pc. The agency also temporarily suspended the blending mandate for diesel with 500ppm of sulfur (S500). ANP said it decreased the exemption's coverage as it identified "that the supply situation in the rest of the state had stabilized." Rainfall in Rio Grande do Sul blocked railways and highways where biofuels are transported to retail hubs. Floods in the state have left at least 116 dead and 143 missing, according to the local government. By Laura Guedes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil reports more off-spec biodiesel March-April
Brazil reports more off-spec biodiesel March-April
Sao Paulo, 10 May (Argus) — The rate of Brazilian biodiesel falling below required blending limits nearly tripled in March and April after the mandate was increased to 14pc, according to a government analysis. Hydrocarbons regulator ANP's Fuel Quality Monitoring Program (PMQC) found 271 instances of biodiesel below the required level between 1 March — when the blending mandate was increased from 12pc to 14pc — and 30 April. In January and February the PMQC found 97 instances of blends that did not meet the 12pc level. An increase in missed blending targets is common during transitions to higher blending levels, according to the agency, mainly due to difficulties in depleting inventories of the lower-level blend. Several plants claim that a slowdown in biodiesel withdrawals in the first four months of the year also contributed to challenges in complying with the new blending level. Some retailers' loss of market share has also been cited as an aggravating factor. In March, 154 recorded instances of non-compliance covered blending levels between 12.3pc and 13.9pc, according to ANP data. In April, there were 101 occurrences within the 12.3pc and 13.9pc range. Another eight instances of non-compliance were also recorded in each of March and April. The PMQC is a monitoring program and does not have the same effect on market behavior as inspections, according to ANP. "It is used as one of the intelligence vectors for the planning of ANP's inspection actions," the agency said. Only irregularities identified in the context of inspectios can result in fines levied against fuel distributors. By Alexandre Melo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil to import rice due to southern floods
Brazil to import rice due to southern floods
Sao Paulo, 10 May (Argus) — Brazil's federal government signed a provisional measure that authorizes national supply company Conab to import up to 1mn metric tonnes of rice, following floods in the country's main rice producing state of Rio Grande do Sul. The measure aims to replenish public stocks, while avoiding price speculation and maintaining the grain's price levels in the domestic market, amid the current logistical difficulties for supply, according to Brazil's agriculture minister Carlos Favaro. Conab will hold public auctions and the acquired volumes will be sent to small retailers in metropolitan regions. "It is important to highlight that we will not import everything at once to not compete with our local production," Conab's president Edegar Pretto said. "We must protect our farmers, but remain on alert for prices to not become too high for consumers." Rio Grande do Sul's 2023-24 rice crop expected to account for almost 70pc of national output during the cycle. Alongside crop damage caused by the heavy rainfall, the floods are hampering the product's transportation. The rice purchases are one of many government measures being taken to address the historic floods. The country has also unlocked relief spending and launched a R50.9bn ($9.9bn) program to aid victims . Development bank Bndes will also suspend the debts of companies and farmers hurt by the extreme weather. The floods in the state have left at least 113 dead, 146 people missing and more than 165,000 people displaced, according to the civil defense. By Nathalia Giannetti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Floods delay, damage Brazil’s Rio Grande do Sul crops
Floods delay, damage Brazil’s Rio Grande do Sul crops
Sao Paulo, 10 May (Argus) — The unprecedented floods that have hit Brazil's Rio Grande do Sul starting on 29 April challenged the state's harvest progress and caused concerns related to crops conditions. The state leads Brazil's rice and summer corn production and is expected to be the second-largest soybean producer in the 2023-24 crop. Harvesting works for oilseed, corn and rice were approaching their final stretches when rainfall intensified. Rains have halted and in some cases completely paralyze d activities, while also ruining some crops. Soybeans Rio Grande do Sul's 2023-24 soybean crop is estimated at 22.2mn metric tonnes (t) by regional rural agency Emater-RS, while national supply company Conab expects 21.9mn t. Both forecasts would be a record for the state, which would become the season's second-largest oilseed producer. Rio Grande do Sul would account for approximately 15pc of Brazil's soybean production. The 2023-24 crop was 78pc harvested as of 9 May, advancing by 2 percentage points from a week prior, according to Emater-RS. Activities were suspended in almost the entire state since the rainfall period began, with few exceptions. Farmers managed to advance works in the northwest and in the southern region known as Campanha — bordering Argentina and Uruguay — on 29-30 April, but reported problems because of the high moisture levels. Works in Campanha have resumed since 3 May. Rio Grande do Sul's soybean harvest had maintained a weekly progress of at least 10 percentage points throughout April, while yields remained within a range of peaks of 5,400 kg/hectare (ha) in areas considered to produce excellent results and an average of approximately 3,000 kg/ha. But the remaining 24pc of areas that had yet to be harvested when the flood began is set to register heavy losses, Emater-RS estimates. Storage units were also damaged, which may lead to cuts in a portion of production already counted as safe. Farmers say that grain quality in the latest harvested areas is unsuitable and they have given up harvesting other remaining crops, as that has become economically unfeasible. The high humidity levels of these soybeans reduce their profitability considerably, hardly covering their production costs. For the remaining 22pc still on fields, Emater-RS projects losses of 20-100pc. The agency has yet to officially revise downwards its 3,329 kg/ha yield estimate, but expects its outlook to decrease. Rice Rio Grande do Sul is Brazil's largest rice producer and should account for over 70pc of the national output this season, according to Conab data. The progress of rice harvesting was severely compromised by the heavy rainfall, with Conab estimating that works remain halted at 83pc since 28 April. The location of remaining areas is another factor weighing on the delay. Rice is sowed in floodplains, which are difficult to access and now coincide with major flooding points in the state. Crops in the Bage region — where activities were the most advanced — report losses of up to 30pc in some areas, but further damages are possible because of another flood forecast caused by the Uruguay River's elevated levels. Farmers also report problems related to the process of drying the grains — resulting in further quality and yield losses — caused by power outages and road blockages that hamper transportation to storage facilities. The 2023-24 rice crop in Rio Grande do Sul was initially set to yield over 8,300 kg/ha and produce almost 7.5mn t, according to Emater-RS and Conab. But the local agency now expects to revise these figures down. Summer corn Emater-RS expects the state to produce 5.2mn t in its 2023-24 first corn crop, 100,000t below Conab's estimate. Rio Grande do Sul is Brazil's top summer corn producer, with 20pc of the national production. The 2023-24 first corn crop harvest advanced by 3 percentage point to 86pc of Rio Grande do Sul's planted area in the week ended 9 May. Producers have so far prioritized advancing works and observing the damage for soybeans, which is the state's main crop. Damages in most summer corn areas have yet to be accounted for, but farmers are reporting losses of up to 100pc in crops in the northern regions of Lajeado and Caxias do Sul. The remaining areas in Santa Maria city — where harvest is 72pc complete — are also expected to register losses close to 100pc. Looking ahead Brazil's national meteorological institute Inmet expects more heavy rainfalls in Rio Grande do Sul this weekend, with volumes may surpassing 100mm (4 inches) on 10-12 May. The state's center-north and west will be the most affected areas, alongside the northern coastal areas and the south portion of neighboring Santa Catarina state. The rains and floods in the state have left at least 113 dead, 146 people missing and more than 165,000 people displaced, according to the civil defense. By Nathalia Giannetti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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