Brasil Biofuels expands Amazon power generation

Market: Biofuels, Electricity, Oil products
21/07/20

Biodiesel and power generation company Brasil Biofuels (BBF) was authorized to begin commercial operations at its 18th biodiesel-fired thermoelectric plant, further reducing the carbon footprint of power generation in the Amazon basin.

The company has been a pioneer in integrating biodiesel production and power generation in a region of the country that is highly dependent on diesel transported in from a long distance.

"It took over a decade to overcome the challenges of investing in the Amazon, but these projects prove that sustainable development in the Amazon is possible," BBF chief executive Milton Steagall tells Argus.

The company is one of only a handful of Brazilian biodiesel producers that uses palm oil as feedstock.

The palm oil used in its plants is produced on company-owned plantations, all of which are located in areas of the Amazon region that are classified as degraded, BBF says.

Because of a 2010 law, palm cannot be planted on areas that were deforested after 2007. Furthermore, because of the 2008 forestry code, properties in the Amazon biome are required to hold 80pc of their total area in reserve.

BBF was one of the winners of last year's generation auction for power purchase agreements in Roraima state, which used to rely on neighboring Venezuela for supply. The company will invest R635mn ($122mn) in two power stations with combined capacity of 74MW. The larger plant, with 56MW of capacity, will be located in the capital of Roraima and will have both biodiesel and solar generation capacity.

The second power plant will be in Sao Joao da Baliza, where the company's biodiesel and 72 t/d palm oil plant are located.

The two power plants will begin operating in early 2021.

According to Steagall, the plants will reduce conventional diesel consumption in the region by 130,000 l/y, once fully operational.

"Not only does this reduce pollution, but it also reduces generation costs," Steagall added.

The company plans to participate in future auctions to supply isolated systems. Steagall added that the government is expected to hold auctions for these regions in 2021.

In addition to its biodiesel business, the company announced a joint venture with US ethanol plant producers ICM to build a corn ethanol plant in Roraima. With initial investment of R220mn, the company plans to produce 400mn l/yr of ethanol.

Part of the corn ethanol plant's production will be used as catalyst for biodiesel production, but the bulk of the ethanol supply will be sold in Roraima.

"Roraima is the state with the highest gasoline prices, which means our ethanol will be competing with the most expensive gasoline in Brazil," Steagall said, adding that the company plans to take advantage of new legislation that will allow it to sell ethanol directly to the service stations.

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24/03/25

Electricity drove surge in energy demand in 2024: IEA

London, 24 March (Argus) — Electricity demand drove a jump in overall global energy consumption growth in 2024, lifting it well above the average pace of increase in recent years, energy watchdog the IEA said today. Global energy demand rose by 2.2pc in 2024 — higher than the average annual demand increase of 1.3pc between 2013 and 2023 — according to the Paris-base agency's Global Energy Review . Global electricity consumption rose by 4.3pc, driven by record-high temperatures that led to increased cooling demand, growing industrial consumption, the electrification of transport and from data centres and artificial intelligence, the IEA said. Renewables and nuclear covered the majority of growth in electricity demand, at 80pc, while supply of gas-fired power generation "also increased steadily", it said. New renewable power capacity installations reached around 700GW in 2024 — a new high — while renewable power sources and nuclear together made up 40pc of total generation in 2024, it said. Global gas demand rose by 2.7pc in 2024, with an increase in "fast growing Asian markets", the IEA said. It noted growth of more than 7pc and 10pc in China and India, respectively. But "growth in global oil demand slowed markedly in 2024", the organisation said. Oil demand rose by 0.8pc — compared with 1.9pc in 2023 — and oil's share of total energy demand fell below 30pc last year "for the first time ever". A rise in electric vehicle (EV) purchases was a key contributor to the drop in oil demand for road transport, and this offset "a significant proportion" of the rise in oil consumption for aviation and petrochemicals, the IEA said. The rate of increase in coal demand slowed to 1.1pc in 2024, half the pace seen in 2023. "Intense heatwaves" in China and India "contributed more than 90pc of the total annual increase in coal consumption globally", for cooling needs, the IEA found. Renewables limit rise in emissions The IEA repeatedly noted the significant effect that extreme weather in 2024 had on energy systems and on demand patterns. Last year was the hottest ever recorded, beating the previous record set in 2023. "Weather effects contributed about 15pc of the overall increase in global energy demand", the IEA said. Global cooling degree days were 6pc higher in 2024 on the year, and 20pc higher than the 2000-20 average, it said. But the "continued rapid adoption of clean energy technologies" restricted the rise in energy-related CO2 emissions, which fell to 0.8pc in 2024 from 1.2pc in 2023, the IEA said. Energy-related CO2 emissions still hit a record high of 37.8bn t in 2024, but the rise in emissions was lower than global GDP growth, it said. "The majority of emissions growth in 2024 came from emerging and developing economies other than China," the IEA said. Emerging and developing economies accounted for more than 80pc of the increase in global energy demand last year, it said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Low snowpack, rain may lift Italian summer power prices

21/03/25

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21/03/25

Low snowpack, rain may lift Italian summer power prices

London, 21 March (Argus) — Low snowpack and hydro reserves in Italy may increase the call on gas-fired power plants this summer, likely supporting power prices in days when renewable generation is weakest. Hydro generation from run-of-river installations, pumped-storage plants and hydroelectric reserves accounted for almost 20pc of the power mix on average over 2020-24 in the third quarter — the second-highest share after the second quarter at 22.2pc — compared with gas-fired generation covering 45pc. But prevailing conditions suggest that without unusually wet weather this summer, Italian rivers could be drier than normal, limiting scope for hydro output and potentially opening more space for gas in the power mix, driving up electricity prices. Snow water equivalent — or the estimated water content of snow — moved back to a deficit to last year's levels on 23 February after showing signs of improvement over the first three weeks of the month, according to Italian meteorological association Cima. Snowpack was at a deficit of 57pc to the 2011-23 average as of 8 March, narrowing slightly compared with a 58pc deficit around the same time in February. The deficit in the Po basin, which accounts for almost half of Italy's snow water resource, is currently at a 44pc deficit to the seasonal norm, Cima data show. In the Apennines, the Tiber basin is at a 95pc deficit to the long-term average, marking the worst balance of the last 13 years. And hydro reserves have been at a consistent deficit to last year since January and moved to a deficit to the five-year norm in the middle of February. Rainfall in Malpensa and Paganella, in the north of the country, was at an average deficit of almost 2 mm/d and 1.6 mm/d, respectively, to the seasonal norm over November and December last year. While precipitation picked up in January and moved to a surplus to the norm of 1.9 mm/d in Malpensa and 1.4 mm/d in Paganella, minimum temperatures were 1.6°C above the long-term average in Milan, reducing snow accumulation. The latest data show that hydro reserves have picked up for the first time this year in week 11, reaching 2.1TWh and narrowing their deficit to the 2020-24 average to 0.8pc compared with 5.2pc a week earlier. Still, they remain 6.6pc below last year, with the deficit standing even wider at 9.1pc, when compared with the 2015-24 average. Looking ahead, forecasts indicate that minimum temperatures in Milan will hold around 2°C above the 10-year norm until the end of April, possibly leading some snowmelt to support run-of-river generation early in the second quarter, when power demand is typically at its lowest. But this would also leave less snow to melt later in the summer, when cooling demand peaks and drives up overall demand for electricity. While solar capacity increased steadily by over 500MW a month last year, the share of the power mix covered by solar output in the third quarter of 2024 remained almost unchanged from the same period in 2023. Assuming a similar monthly growth in photovoltaic (PV) capacity this year, the solar load factor is expected to increase by 1.8 percentage points to 17.8pc in the third quarter of 2025 on the year. This means that even if solar capacity and output continue growing, it may not be enough to offset a lack of hydro generation in the third quarter of this year, and thermal generation may still need to cover a significant amount of residual demand. The third quarter of 2025 has averaged €135.85/MWh ($146.83/MWh) so far this quarter, well above an average €91.60/MWh seen over the same period last year. Clean spark spreads for 55pc-efficient gas-fired units for the third quarter of 2025 have averaged around €19.60/MWh since the start of the year, compared with an average of €15.50/MWh over the same time last year. As solar and wind capacity is set to increase over the coming years to reach a national target of 110GW by 2030, renewable output will cover an increasing share of Italian electricity demand — estimated to reach 335TWh in 2028. Thermal plants may become less economically viable and will likely be decommissioned unless they are kept operating through ancillary services. But turning on gas-fired plants from cold and with a stop-start operation would lead to exaggerated costs and higher maintenance prices, Argus heard on the sidelines of the KEY25 Energy Transition Expo in Rimini earlier this month. This could lead to electricity prices spiking in periods of scarce hydro availability, as hydro-run-of river is Italy's largest single source of renewable generation, accounting for 17pc of the power mix last year compared with less than 5pc of hydro-pumped storage and reservoirs. By Ilenia Reale Italian hydro stocks TWh Gas and hydro output, hydro reserves GW, TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Shell ends direct bitumen sales to some German buyers

21/03/25

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21/03/25

Shell ends direct bitumen sales to some German buyers

London, 21 March (Argus) — Shell will stop directly supplying bitumen to some of its low-volume customers in Germany, with effect from 1 April. Shell told customers it has restructured its bitumen distribution channels and can no longer directly distribute to certain customers, according to an email from Shell's bitumen supply unit in Germany seen by Argus . It recommended they instead buy from German bitumen trading and supply firm Bitumina Handel. Neither Shell Germany nor Bitumina Handel have commented, but Argus understands the oil major, which is one of Europe's leading refinery bitumen producers, has concluded a deal with Bitumina to take over supply to its affected customers. The move is part of a wider switch by Shell to focus more on trading bitumen cargoes and less on directly supplying truck volumes to inland customers. The company ended a long-term throughput and supply arrangement into the French market through the Nantes and Bayonne terminals on the French Atlantic coast. Spain's Repsol and Moeve have taken over those operations . Shell last year ceased its South African bitumen retail and truck supply operations . Shell's European bitumen production is at its 187,000 b/d Godorf refinery in western Germany and at its 447,000 b/d Pernis refinery in Rotterdam. The firm recently stopped processing crude at the 147,000 b/d Wesseling section of its 334,000 b/d Rhineland refinery complex. The effect of that on bitumen production at Godorf, the other section of Rhineland, is unclear. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Airliner Virgin Australia to trial SAF blend

21/03/25

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21/03/25

Airliner Virgin Australia to trial SAF blend

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Phillips 66 weighs Louisiana refinery expansion

20/03/25

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20/03/25

Phillips 66 weighs Louisiana refinery expansion

Houston, 20 March (Argus) — US independent refiner Phillips 66 is seeking state tax incentives for a possible expansion of its 264,000 b/d refinery in Lake Charles, Louisiana. The expansion would increase production capacity and improve operational efficiency through upgrades and new specialized equipment, according to a summary of the project posted by the Louisiana Department of Economic Development. The agency, which administers state incentives, said that the Phillips 66 project is in review. Phillips 66 said today that it does not typically comment on refinery operations, regulatory filings or commercial activities. According to the Louisiana Department of Economic Development posting, the $99mn upgrade would include adding a 5MW steam turbine power generator, a boiler feedwater chemical system, LCR kerosene product rundown system upgrades, a reactor, a naptha fractionator, and other pieces of equipment. The budget includes $40mn for machinery and $59mn for labor and engineering. The project is estimated to be completed at the end of 2027. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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