Total eyes first biojet output from Grandpuits in 2024

  • Market: Biofuels, Oil products
  • 24/09/20

Total is planning to produce up to 170,000 t/yr of sustainable aviation fuel (SAF) — also known as biojet — at its Grandpuits refinery near Paris once it has converted the facility into a biorefinery. The supplies will help meet growing demand as European countries legislate to reduce emissions in the aviation sector.

Earlier today Total announced plans to convert Grandpuits into a 400,000 t/yr biorefinery by 2024. Grandpuits will be the first biorefinery to produce biojet in France. Total's focus on biojet follows earlier calls by the French government to increase the country's SAF blending target to 2pc by 2025, 5pc by 2030 and 50pc by in 2050. Grandpuits currently produces 500,000 t/yr of fossil jet fuel, although the refinery has only been running at 70pc capacity because of long-standing problems with a pipeline that delivers around 90pc of its feedstock.

"The main lever to decarbonise the aviation sector is to blend biojet. And Grandpuits is well placed because it serves the Paris airports," Total's refining and chemicals president Bernard Pinatel said today.

The biorefinery will also produce 120,000 t/yr of hydrotreated vegetable oil (HVO) — also known as renewable diesel — and 50,000 t/yr of green naphtha that will be used to make bioplastics. "We will produce HVO like in La Mede, but we want to be able to output biojet in Grandpuits so the process will be different," Pinatel said.

Total will use the hydrotreated esters and fatty acids (HEFA) technology in its new biorefinery. Feedstock for Grandpuits will comprise around 70pc of animal fats (tallow) and used cooking oil (UCO), supplemented with around 30pc of vegetable oils such as rapeseed oil (RSO) but excluding palm oil. As well as the biorefinery, the Grandpuits conversion will include a bioplastics plant and a plastics recycling plant. It is expected to cost more than €500mn ($574mn) overall, but Total declined to break down the spending. France's CGT union said investment on the biorefinery will amount to €238mn.

Total has already converted its 160,000 b/d La Mede refinery into a 500,000 t/yr HVO plant for an initial investment of €275mn. The firm said last year that La Mede has the capacity to produce up to 100,000 t/yr of SAF but it has so far focused on road fuels production. "La Mede is dedicated to road fuels, we process mostly vegetable oils there, we are limited in our capacity to process waste feedstocks," Pinatel said.

Total is the latest European biofuels producer eyeing biojet production. An EU proposal to introduce a 1-2pc EU-wide blending quota for SAF — possibly from 2021 — has resulted in an increase in biojet production across Europe. UK company Velocys is developing Europe's first waste-to-SAF facility, while Netherlands-based biojet producer SkyNRG is developing a 100,000 t/yr aviation fuel plant at Delfzijl, and Finland's St1 is set to commission a new 200,000 t/yr biorefinery in Gothenburg producing HVO and biojet at the end of 2021.

Finnish firm Neste is currently the largest SAF producer in Europe, with output of 100,000 t/yr of biojet at its Porvoo refinery. The company plans to produce 1mn t/yr at a refinery in Singapore, which is under construction, from 2022, and 450,000 t/yr at a proposed facility in Rotterdam from 2023.

SAF benefits from a 1.2x multiplier towards countries' blending targets under the EU's recast Renewable Energy Directive set to come into effect next year. Increased availability of biojet in Europe could reduce prices, which are currently significantly higher than fossil jet fuel values. Argus assessed UCO-based SAF (HEFA-SPK) at $2,121.47/t at the end of last week, a $1,804.22/t premium to conventional jet fuel as of 23 September.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
03/05/24

Dutch FincoEnergies supplies B100 biodiesel to HAL

Dutch FincoEnergies supplies B100 biodiesel to HAL

London, 3 May (Argus) — Dutch supplier FincoEnergies has supplied shipowner Holland America Line (HAL)with B100 marine biodiesel at the port of Rotterdam for a pilot test. This follows a collaboration between HAL, FincoEnergies' subsidiary GoodFuels, and engine manufacturer Wartsila to trial blends of B30 and B100 marine biodiesel . HAL's vessel the Rotterdam bunkered with B100 on 27 April before embarking on a journey through the Norwegian heritage fjords to test the use of the biofuel. The vessel will utilise one of its four engines to combust B100, which will reportedly cut greenhouse gas (GHG) emissions by 86pc on a well-to-wake basis compared with conventional fossil fuel marine gasoil (MGO), according to GoodFuels. There is no engine or fuel structure modification required for the combustion of B100, confirmed HAL. The B100 marine biodiesel blend comprised of sustainable feedstock such as waste fats and oils. The firms did not disclose how much B100 was supplied, or whether this is the beginning of a longer-term supply agreement. Argus assessed the price of B100 advanced fatty acid methyl ester (Fame) 0°C cold filter plugging point dob ARA — a calculated price which includes a deduction of the value of Dutch HBE-G renewable fuel tickets — at an average of $1,177.32/t in April. This is a premium of $410.20/t to MGO dob ARA prices for the same month, which narrows to $321.68/t with the inclusion of EU emissions trading system (ETS) costs for the same time period. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more
News

US job growth nearly halved in April: Update


03/05/24
News
03/05/24

US job growth nearly halved in April: Update

Adds services PMI in first, fifth paragraphs, factory PMI reference in sixth paragraph. Houston, 3 May (Argus) — The US added fewer jobs in April as the unemployment rate ticked up and average earnings growth slowed, signs of gradually weakening labor market conditions. A separate survey showed the services sector contracted last month. The US added 175,000 jobs in April, the Labor Department reported today, fewer than the 238,000 analysts anticipated. That compared with an upwardly revised 315,000 jobs in March and a downwardly revised 236,000 jobs in February. The unemployment rate ticked up to 3.9pc from 3.8pc. The unemployment rate has ranged from 3.7-3.9pc since August 2023, near the five-decade low of 3.4pc. The latest employment report comes after the Federal Reserve on Wednesday held its target lending rate unchanged for a sixth time and signaled it would be slower in cutting rates from two-decade highs as the labor market has remained "strong" and inflation, even while easing, is "still too high". US stocks opened more than 1pc higher today after the jobs report and the yield on the 10-year Treasury note fell to 4.47pc. Futures markets showed odds of a September rate cut rose by about 10 percentage points to about 70pc after the report. Services weakness Another report today showed the biggest segment of the economy contracted last month. The Institute for Supply Management's (ISM) services purchasing managers index (PMI) fell to 49.4 in April from 51.4 in March, ending 15 months of expansion. The services PMI employment index fell to 45.9, the fourth contraction in five months, in today's report. Readings below 50 signal contraction. On 1 May, ISM reported that the manufacturing PMI fell to 49.2 in April, after one month of growth following 16 months of contraction. In today's employment report from the Labor Department, average hourly earnings grew by 3.9pc over the 12 month period, down from 4.1pc in the period ended in March. Job gains in the 12 months through March averaged 242,000. Gains, including revisions, averaged 276,000 in the prior three-month period. Job gains occurred in health care, social services and transportation and warehousing. Health care added 56,000 jobs, in line with the gains over the prior 12 months. Transportation and warehousing added 22,000, also near the 12-month average. Retail trade added 20,000. Construction added 9,000 following 40,000 in March. Government added 8,000, slowing from an average of 55,000 in the prior 12 months. Manufacturing added 9,000 jobs after posting 4,000 jobs the prior month. Mining and logging lost 3,000 jobs. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

US biofuel groups challenge EU SAF regulation


03/05/24
News
03/05/24

US biofuel groups challenge EU SAF regulation

London, 3 May (Argus) — US biofuel groups Renewable Fuels Association, Growth Energy and US Grains Council and ethanol-to-jet producer LanzaJet have joined European renewable ethanol producers in their challenge to the ReFuelEU aviation regulation. The legal challenge, launched by ePure and Pannonia Bio in February, demands an annulment of the sections that exclude crop-based biofuels from the definition of sustainable aviation fuel (SAF). The regulation allows for SAF produced from biofuels, referring to point 33 in Article 2 of the bloc's recast Renewable Energy Directive (RED III) which includes "liquid fuel for transport produced from biomass". But it excludes biofuels produced from "food and feed crops". The US groups have filed an "application for leave to intervene" before the General Court of the EU, arguing that the regulation would "have a detrimental effect on the US ethanol industry". "The contested provisions give rise to a de facto ban on the supply of crop-based biofuels to the aviation sector in the EU" the associations said. Earlier this year ePure also challenged the bloc's FuelEU maritime regulation, which aims to boost the use of green bunker fuels, for excluding food and feed crop-based fuels from its certification process. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

US job growth nearly halved in April


03/05/24
News
03/05/24

US job growth nearly halved in April

Houston, 3 May (Argus) — The US added fewer jobs in April as the unemployment rate ticked up and average earnings growth fell, signs of gradually weakening labor market conditions. The US added 175,000 jobs in April, the Labor Department reported today, fewer than the 238,000 analysts anticipated. That compared with an upwardly revised 315,000 jobs in March and a downwardly revised 236,000 jobs in February. The unemployment rate ticked up to 3.9pc from 3.8pc. The unemployment rate has ranged from 3.7-3.9pc since August 2023, near the five-decade low of 3.4pc. The latest employment report comes after the Federal Reserve on Wednesday held its target lending rate unchanged for a sixth time and signaled it would be slower in cutting rates from two-decade highs as the labor market has remained "strong" and inflation, even while easing, is "still too high". US stocks opened more than 1pc higher today after the jobs report and the yield on the 10-year Treasury note fell to 4.47pc. Futures markets showed odds of a September rate cut rose by about 10 percentage points to about 70pc after the report. Average hourly earnings grew by 3.9pc over the 12 month period, down from 4.1pc in the period ended in March. Job gains in the 12 months through March averaged 242,000. Gains, including revisions, averaged 276,000 in the prior three-month period. Job gains occurred in health care, social services and transportation and warehousing. Health care added 56,000 jobs, in line with the gains over the prior 12 months. Transportation and warehousing added 22,000, also near the 12-month average. Retail trade added 20,000. Construction added 9,000 following 40,000 in March. Government added 8,000, slowing from an average of 55,000 in the prior 12 months. Manufacturing added 9,000 jobs after posting 4,000 jobs the prior month. Mining and logging lost 3,000 jobs. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Oregon renewable diesel pours into CFP bank


02/05/24
News
02/05/24

Oregon renewable diesel pours into CFP bank

Houston, 2 May (Argus) — Rising renewable diesel deliveries helped grow the volume of Oregon Clean Fuels Program (CFP) credits available for future compliance by a record 30pc in the fourth quarter of 2023, according to state data released today. The roughly 253,000 metric tonne (t) increase in available credits from the previous quarter — bringing the total to 1.1mn t — illustrates the spreading influence of US renewable diesel capacity on markets offering the most incentives for their output. California and Oregon low-carbon fuel standard (LCFS) credit prices have tumbled as renewable diesel deliveries generate a surge of credits in excess of immediate deficit needs. LCFS credits do not expire. LCFS programs require yearly reductions to transportation fuel carbon intensity. Higher-carbon fuels that exceed the annual limits incur deficits that suppliers must offset with credits generated from the distribution to the market of approved, lower-carbon alternatives. Renewable diesel volumes in Oregon increased by 12pc from the previous quarter to about 37,000 b/d — more than double the volume reported in the fourth quarter of 2022. The fuel represented 24pc of the Oregon liquid diesel pool for the period, while petroleum diesel fell to 75pc. Renewable diesel generated 46pc of all new credits for the quarter, compared to the 14pc from the next-highest contributor, biodiesel. Deficit generation meanwhile shrank from the previous quarter. Gasoline deficits fell by 6.6pc from the third quarter as consumption fell by roughly the same amount. Gasoline use trailed the fourth quarter of 2022 by 7.1pc. Diesel deficits also shrank as renewable alternatives push it out of the Oregon market. Petroleum diesel deficits fell by 19pc from the previous quarter and consumption was 27pc lower than the fourth quarter of 2022. Spot Oregon credits have fallen by half since late September, when state data offered the first indications that renewable diesel that was already inundating the California market had found its way to the smaller Oregon pool. The quarter marks the first time Oregon credits available for future compliance have exceeded 1mn t. Oregon in 2022 approved program targets extending into next decade that target a 20pc reduction by 2030 and a 37pc reduction by 2035. An ongoing rulemaking process this year will consider changes to how the state calculates the carbon intensity of fuels and verifies the activity of participants, but will not touch annual targets. By Elliott Blackburn 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