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Scale up EU biomethane: utilities, traders

  • Market: Biofuels
  • 08/12/21

Biomethane should be "scaled up rapidly across the EU", according to a group of 27 companies and associations — including utilities RWE and Engie, auto manufacturers Volvo and Scania, shipping firm NYK and trading firms STX and ACT.

The organisations are looking to partner with public stakeholders to ensure support for increased biomethane application in Europe and will "seek to mobilise the biomethane supply chain". The group wants to "optimise the role of biomethane in achieving climate targets and to remove regulatory barriers."

The declaration aligns with an industry event this week, where European commissioner for energy Kadri Simson told delegates that EU biomethane expansion requires legislative reform.

There is potential for European biomethane application of 350TWh by 2030, the organisations said. EU biomethane production was 32TWh in 2020, according to consultancy Guidehouse, with supply forecast to grow to 1,008-1,359TWh by 2050.

Biomethane has a "long-term role to play" to help EU countries meet the EU's target to reduce greenhouse gas emissions by 55pc by 2030, from 1990 levels, the organisations said.

Biomethane has potential uses in the power sector, for heating and for transport — particularly for heavy transport and maritime.


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07/10/24

Fossil fuel cars phase-out comes up again in Brussels

Fossil fuel cars phase-out comes up again in Brussels

Brussels, 7 October (Argus) — The European parliament will this week debate a "crisis" facing the EU's automotive industry which could lead to "potential" plant closures, putting discussions on already-decided CO2 standards for vehicles on the forefront. Members have faced increased efforts by industry arguing for or against speedy review of the EU's regulation on CO2 emission standards for cars and vans. The regulation sets a 2035 phase-out target for new fossil fuel cars. The European commission is expected to give a statement to parliament, but a spokesperson told Argus that any change to the EU CO2 standards for cars and light vehicles would require a legal proposal by the commission to both parliament and EU member states. The priority, the spokesperson said, is on meeting 2025 targets for fleet CO2 reductions, agreed in 2019, but the commission is aware of "different opinions" in industry. Automakers association Acea has been calling for a "substantive and holistic" review of the CO2 regulation. The transition to zero-emission vehicles must be made "more manageable", assessing real-world progress against the ambition level. On the other hand, European power industry association Eurelectric today told members of parliament that bringing forward a review of the EU's regulation on CO2 standards for cars and vans to the start of 2025 would only encourage carmakers to hold off on making lower-priced and smaller electric vehicles (EV). The next CO2 target for car fleets is set to take effect in 2025. It requires a 15pc cut in emissions for newly registered cars. Some member states view the CO2 target cuts, and phase-out of the internal combustion engine (ICE) by 2035, as contentious. The regulation was only approved after a delay to normally formal approval. And parliament's largest centre-right EPP group is calling for a revision of CO2 standards for new cars to allow for alternative zero-emission fuels beyond 2035. As a counterweight to such pressure, Austrian, Belgian, Dutch and Irish ministers today called on commission president Ursula von der Leyen to step up EU action to push decarbonisation of company vehicles, notably light duty vehicles. "We need to consider action on the demand side in order to push zero-emission vehicles sales. Corporate fleets are the EU's most important market segment," the four ministers told von der Leyen. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Global bio-bunker demand to pick up, US left behind


04/10/24
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04/10/24

Global bio-bunker demand to pick up, US left behind

New York, 4 October (Argus) — Tightening vessel carbon intensity indicator (CII) scores and looming 2025 FuelEU marine regulation are expected to raise biodiesel demand for bunkering, but non-competitive US prices should continue to weigh down on US bio-bunker demand. Houston B30, a blend of used cooking methyl ester (Ucome) and very low-sulphur fuel oil (VLSFO), in September averaged at $821/t, a $45/t premium to B30 sold in Amsterdam-Rotterdam-Antwerp, and a $55/t premium to B24 sold in the west Mediterranean hub of Gibraltar and Algeciras (see chart) . Houston B30 was also priced at $115/t and $61/t premium to B24 sold in Singapore and Guangzhou, China, respectively. The price premium would continue to incentivize ship owners with global, ocean-going fleets to pick Asia first for their biodiesel bunker purchases, followed by northwest Europe and western Mediterranean. US demand for biodiesel for bunkering would continue to stagnate unless the US passes a legislation allowing Renewable Identification Number (RIN) credit under the US Renewable Fuel Standard (RFS) program be used by ocean-going vessels fueling with biodiesel in US ports. The legislation could level US' price playing field. Two bipartisan bills were put forward in support of renewable fuel for ocean-going vessels, one in the US Senate this year and one in the US House of Representatives last year, but they are currently dead in the water. Conventional marine fuels are priced cheaper than biodiesel and green varieties of LNG, ammonia, methanol, and hydrogen. But tightening International Maritime Organization (IMO) and EU regulations are forcing the hand of ship operators to consider green fuels to avoid hefty penalties and having their vessels suspended from trading. Ship owners whose vessels are outfitted with LNG-burning engines, are poised to have the lowest marine fuel expense heading into 2025, as fossil LNG is currently ship owners' cheapest low-carbon fuel option. But retrofitting a vessel to burn LNG could range from $5-$35mn, depending on the size of the vessel. Biodiesel, a plug-and-play fuel that does not require a vessel retrofit, is the second cheapest low-carbon fuel option after fossil LNG. IMO's CII regulation came into force in January 2023 and requires vessels over 5,000 gt to report their carbon intensity, which is then scored from A to E. The scoring levels are lowered yearly by about 2pc, so even a vessel with no change in CII could drop from C to D in one year. If a vessel receives a D score three years in a row or E score in the previous year, the vessel owner must submit a corrective actions plan. E scoring vessels could be prohibited from entering some ports' territorial waters, but this penalty is yet to be imposed on any E vessels. In 2023, the IMO reported that 40pc of the vessels scored A or B, 27pc scored C, 19pc scored D or E and 14pc were unresponsive. The EU's FuelEU maritime regulation will require ship operators traveling in, out and within EU territorial waters to gradually reduce their greenhouse gas (GHG) intensity on a lifecycle basis, starting with a 2pc reduction in 2025, 6pc in 2030 and so on until getting to an 80pc drop, compared with 2020 base year levels. It imposes a penalty of €2,400/t ($2,629/t) of VLSFO equivalent energy for vessel fleets exceeding its GHG limits. By Stefka Wechsler Biodiesel blends* Houston less global ports $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Australian tallow prices fall in October tenders


04/10/24
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04/10/24

Australian tallow prices fall in October tenders

Sydney, 4 October (Argus) — Australian renderers have awarded their tallow tenders for October delivery to ports along the east coast at lower price levels compared to the previous month. Tenders for tallow with a maximum of 2pc free fatty acids (FFA) were awarded between A$1,320-1,350/t ($904-$924) dap for October supplies, down from around A$1,400/t in September. Argus assessed Australian east coast tallow between $939-960/t (A$1,370-1,400/t) on a fob basis. Australian renderers mostly offer their tallow in monthly tenders for delivery throughout the following month to shore tanks at Brisbane and Melbourne ports, with tenders awarded during the last week of each month. Buyers in Singapore and the US primarily import Australian tallow for use as a feedstock for biofuels production. The lower Australian tallow values are because of weaker tallow prices in the US Gulf, which have fallen by over $100/t from a peak in July, market participants said. Argus last assessed maximum 4pc FFA bleached fancy tallow delivered to the US Gulf coast at $1,009/t on 3 October. Australian tallow prices are also a function of international traders' logistics costs and vessel availability. Traders bid at elevated levels for September tenders because they had vessels on the way to Australia to collect volumes accumulated throughout the month. US renewable feedstock usage hovered close to all-time high levels in July . Tallow was the most-used waste feedstock for biofuel production in July, reaching 9,752 t/d, representing a year-on-year of 81.3pc. By Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US light vehicle sales surged in September


03/10/24
News
03/10/24

US light vehicle sales surged in September

Houston, 3 October (Argus) — Domestic sales of light vehicles rebounded in September, increasing to a seasonally adjusted rate of 15.8mn on the strength of greater truck purchases. Sales of light vehicles — trucks and cars — rose from a seasonally adjusted annual of rate 15.3mn in August, the Bureau of Economic Analysis reported today. Sales have whipsawed the previous four months, but September's rate largely was in line with the 15.7mn unit rate in September 2023. The US Federal Reserve last month cut its target rate for the first time since 2020, bringing it down by 50 basis points from its 23-year highs as inflation has been easing. Lower inflation and Fed easing, which ripples across credit markets, make it more affordable for people to purchase new vehicles. Fed policymakers have penciled in another 150 basis points worth of cuts through 2025, as they hope to head off any weakening in the labor market that could scuttle the wider economy. Higher overall sentiment about the US economy, fueled by a robust 3pc growth in gross domestic product (GDP) in the second quarter, healthy labor conditions and consumer spending also have encouraged consumers to spend. Sequentially, light truck sales increased by 3.1pc to a 12.8mn unit rate in September, while sales of cars rose by 4.4pc to a 3mn unit rate in the same time period. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Orlen starts sales of HVO100 in Germany


03/10/24
News
03/10/24

Orlen starts sales of HVO100 in Germany

London, 3 October (Argus) — Polish refiner Orlen has started selling pure hydrotreated vegetable oil (HVO100) at two service stations in Germany. Orlen plans to start HVO100 sales at other petrol stations in Germany and the Czech Republic. It will start selling the grade in the wholesale segment in the Czech Republic from the Paramo terminal in Pardubice in the first quarter of 2025. The Czech Republic has a lower excise duty on high-blend biofuels such as E85 and HVO30 as well as pure biofuels such as B100. Germany allowed the sale of HVO100 at service stations from 13 April this year . France recently approved the sale of transport fuels made from 100pc renewable raw materials such as pure hydrotreated vegetable oil, or HVO100, at fuel stations, according to Finnish biofuel producer Neste. Orlen said its work on a 300,000t HVO plant in Plock, Poland is "at an advanced stage", although it previously told Argus that it was targeting start-up in late 2023 or early 2024 at the latest. The plant will be able to convert feedstocks such as rapeseed oil and used cooking oil into HVO. It may also have infrastructure to process esters and fatty acids into sustainable aviation fuel, Orlen said. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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