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Malaysia targets B30 mandate for heavy vehicles by 2030

  • Market: Agriculture, Biofuels, Biomass, Chemicals
  • 30/08/23

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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11/07/24

Port Houston fully reopens, others to follow

Port Houston fully reopens, others to follow

New York, 11 July (Argus) — Port Houston fully reopened today in the wake of Hurricane Beryl after the US Army Corps of Engineers and US Coast Guard gave the all-clear, with other Texas ports soon to follow, according to the Greater Houston Port Bureau. "As of this morning, we are lifting all restrictions for the Houston ship channel — no more draft restrictions," port bureau president Captain Eric Carrero said. Draft restrictions remain in place at 35ft for the port of Galveston, at 30ft for Texas City, and at 36ft for Freeport, according to Carrero. Freeport is also restricted to daylight operating hours. "We are reviewing the surveys for Texas City, Galveston, and Freeport and we are hoping to lift those restrictions as well," Carrero said. The return of Port Houston to full capacity three days after Hurricane Beryl made landfall on 8 July will likely assuage concerns that damage to Texas ports would cut the supply of refined product shipments from the region at a time when refineries along the US Gulf coast hit 97pc utilization in the week ended 5 July, the highest rate since June 2023, according to US Energy Information Administration data. Any vessel glut that had built up outside of Port Houston is likely to clear quickly now that full operating conditions have been restored, according to vessel piloting services in the region. The port of Freeport was the closest of the Houston-area ports to Hurricane Beryl's landfall, which could explain additional caution given to the port in maintaining its daylight hours, given the larger potential for the storm to have blown obstructions into the port's waters. The reopening of Port Houston will likely help to shift additional Army Corps and Coast Guard personnel to the other Texas ports to help complete the necessary surveys and ensure that critical aids to navigation are where they should be before giving the all-clear. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Brazil ups outlook for 2023-24 crop to 299mn t


11/07/24
News
11/07/24

Brazil ups outlook for 2023-24 crop to 299mn t

Sao Paulo, 11 July (Argus) — Brazil raised the outlook for its 2023-24 grain and oilseed crops for the third consecutive month in July, driven by favorable weather supporting the second corn crop. National supply company Conab now expects 2023-24 output at 299.3mn metric tonnes (t), up by 1.7mn t from a month ago. But the projection for the current cycle is 6.4pc — or 20.5mn t — below the record 319.8mn t in 2022-23, following the negative effects of the El Nino weather phenomenon over main producing states earlier in the season. The 2023-24 crop is set to yield 3,752 kg/hectare (ha), 7.9pc below the 4,072 kg/ha in the last cycle. That also compares with the 3,739 kg/ha forecast in June. Estimated sowed area expanded by 170,200ha to 79.8mn ha this month, which is a 1mn ha tumble from the prior season's acreage. Corn crop leads monthly gain Conab expects Brazil to produce over 115.9mn t of corn in 2023-24, including the country's first, second and third crops. Estimated volumes rose by 1.8mn t from the previous estimate of 114.1mn t, as the average yield outlook increased to 5,553 kg/ha from 5,478 kg/ha and the projection for planted area was up by 25,000ha to 20.9mn ha. The 2022-23 corn crop produced a record 131.9mn t, with 22.3mn ha sowed and average yields of 5,923 kg/ha. The 2023-24 second corn crop — also known as the winter crop — accounted for most of the upwards revision this month. The production forecast rose to 90mn t from 88.1mn t, but remained below the 2022-23 crop's 102.4mn t record. Expected yields rose to 5,556 kg/ha from 5,478 kg/ha in June. That is also 6.7pc below the prior cycle's yields. As for planted area, the forecast increased by 47,000ha and was maintained at almost 16.2mn ha. The 2022-23 second corn crop was sowed in 17.2mn ha. The summer corn cycle — also known as the first crop — is set to reach almost 23.4mn t, down by nearly 180,000t from a month prior and 3.9mn t below the last season. The estimate for acreage decreased by 23,900ha, but remains at around 4mn ha, approximately 438,000ha below the 2022-23 planted area. Projected yields dropped to 5,852 kg/ha from 5,862 kg/ha, also down from last season's 6,160 kg/ha. The outlook for the third corn crop — sowed exclusively in northern and northeastern states — continues at 2.4mn t, surpassing the prior cycle by 254,800t. Planted area is now set to reach 657,800ha, up by 2,800ha from the prior month's estimate and 632,500ha in 2022-23. The outlook for yields was down to 3,663 kg/ha from 3,670 kg/ha but is 7.5pc up on the year. Soybean output decreases slightly Brazil's 2023-24 soybean crop is set to total approximately 147.3mn t, following a 16,900t reduction from a month ago. That is a 4.7pc drop from the 2022-23 season's record of 154.6mn t, but the cycle remains on track to be the second largest crop in the country's history. The monthly output decrease reflects damage caused by floods in the Rio Grande do Sul state, which reduced its outlook by 540,000t to 19.7mn t. Losses were then mostly offset by an upwards revision in Para state, where higher yields and an increase in expected area rose the output forecast to almost 4.1mn t. National average yields are now estimated at 3,202 kg/ha, down from 3,205 kg/ha in June and 3,507 kg/ha in 2022-23. Conab projects that the 2023-24 soybean crop was sowed at a record of 46mn ha, compared with 44.1mn ha in the prior cycle. Wheat, cotton down Brazil's 2024 wheat production is now set to total almost 9mn t, down by 109,500t on the month and 859,000t above last year's output. Yields are down to 2,917 kg/ha from 2,945 kg/ha, while the expected planted area continues at approximately 3.1mn ha. That compares with 2,331 kg/ha and almost 3.5mn ha in 2023. The monthly downwards revision was driven by a lower outlook in Goias state, which struggled with excessive rainfall in the beginning of the cycle, fungal diseases and most recently water stress during the grain filling stage of crops. The forecast for 2023-24 cotton lint fell by 20,900t and is now at 3.6mn t, which is 462,900t — or 14.6pc — above the prior season's output. The yearly increase is driven by a higher expected acreage of 1.9mn ha, almost 17pc above the 2022-23 season and roughly stable from a month ago. Yields were down to 1,870kg/ha from 1,881kg/ha in June, which is 2pc below the prior season. Corn, soybean exports stable Conab continues to project 2023-24 corn exports to total 33.5mn t, despite an increase in expected production. Volumes remain below the 54.6mn t shipped in the prior cycle. But the outlook of domestic consumption rose to 84.3mn t from almost 84.2mn t a month ago — about 5.7pc above the prior season — led by a record demand from the corn ethanol and animal feed sectors. Soybean exports also continue set to reach 92.4mn t, down from almost 101.9mn t of soybeans exported in the 2022-23 season. 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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Australia’s Commodity Ag to start WA grain exports


11/07/24
News
11/07/24

Australia’s Commodity Ag to start WA grain exports

Sydney, 11 July (Argus) — Australian agribusiness Commodity Ag will export its first cargo from its Albany port terminal facility this week, boosting export competition in Western Australia against established grain handlers CBH and Bunge. The company intends to export 600,000 t/yr from its Albany port facility, but said its capacity would be constrained by other users of the general-purpose berth. The loading capacity of the mobile shiploader indicated in its ACCC application would be a quarter of CBH's total loading capacity at Albany, according to Southern Ports. Western Australia's bulk grain exports are dominated by CBH — which has port terminals at Geraldton, Kwinana, Esperance and Albany — and Bunge, which has a port terminal at Bunbury. But barriers to entry for smaller port terminal service providers such as Commodity Ag have been reduced by the availability of mobile shiploaders , which allow trucks to unload grain directly in the port and onto a vessel. Commodity Ag's Albany facility will use a 400 t/hr mobile shiploader to load cargoes onto Handymax-sized vessels that are approximately 50,000 deadweight tonnes, according to its March 2023 application to the Australian Competition & Consumer Commission (ACCC) to be an exempt service provider of port terminal services. Commodity Ag has no other cargoes for loading on its shipping stem accessed on 11 July. It became an exempt service provider of port terminal services in May 2023, which means the company is not required to comply with parts 3 to 6 of the Port Terminal Access (Bulk Wheat) Code of Conduct. Part 3 of the code requires a port terminal service provider to not discriminate in favour their own trading business or an exporter that is an associated entity, and not hinder access for another exporter when providing bulk grain port terminal services. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Olin declares Freeport chlor-alkali FM from hurricane


10/07/24
News
10/07/24

Olin declares Freeport chlor-alkali FM from hurricane

Houston, 10 July (Argus) — US-based chlor-alkali producer Olin declared a force majeure (FM) on 10 July for its Freeport, Texas, plant after Hurricane Beryl caused significant damage. The company said the force majeure was for all its chlor-alkali and derivative vinyl products produced at the site. Olin said it was having difficulty accessing power, raw materials, feedstocks, and other crucial services which made managing logistics and production challenging. The company was conducting a comprehensive inspection and assessment of its facility, but there was no timeline for an end to the outage. In addition to caustic soda and chlorine, the site produces several other derivative products. The company sells spot ethylene dichloride (EDC) from Freeport to overseas vinyl producers, epoxy resin, and vinyl chloride monomer (VCM) that it supplies to Shintech by direct pipeline. Shintech buys VCM from Olin under contract to support its own polyvinyl chloride (PVC) plant in Freeport, which produces roughly 1.45mn tons of PVC per year. Shintech indicated earlier in the week it did not see any significant damage to its facility after the storm and was intending to restart its operations in short order. The Olin force majeure could hinder Shintech's Freeport operations, but Shintech has not provided a timeline for its own restart and did not respond to a request for comment. Olin also supplies Dow Chemical with chlorine by direct pipeline to run Dow's isocyanate plant in Freeport. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Texas ports could fully reopen Thursday: Pilots


10/07/24
News
10/07/24

Texas ports could fully reopen Thursday: Pilots

New York, 10 July (Argus) — Major Texas ports are likely to rescind draft restrictions and begin operating at full capacity Thursday with port facility damage limited and shipping channels free of significant blockages following Hurricane Beryl, according to vessel piloting services. The US Coast Guard authorized most Texas ports to open for daylight hours only starting today , with 30 ft draft restrictions in the port of Houston and 35 ft in the ports of Galveston and Texas City. But with "no major obstructions" being found in the channels and final surveys by the US Army Corps of Engineers and the US Coast Guard expected soon, those restrictions may be lifted by the end of day Wednesday, according to Galtex Pilots director of operations Erik Stramblad. The restrictions slowed vessels traffic in and out of the port of Houston to about 66pc of the "typical count of 55-60 vessels daily", according to Houston Pilots Association chief operating officer JJ Plunkett. "We're working with the Coast Guard and the Army Corps of Engineers to get their final surveys," Plunkett said. "Tomorrow [the port of Houston] will probably have a deeper draft." The resulting buildup of vessels around Texas ports is likely to clear quickly once normal operations resume, according to Stramblad. "The number of vessels waiting is about the same [as usual]," Stramblad said. "It's only been a couple of days [of downtime]. It tends to clear itself up quickly once we have the full draft back." Some private terminals within the ports of Texas City and Galveston need to provide their own status assessments before operations can fully resume, Stramblad said. "Nobody wants to hit something that shouldn't be there," Stramblad said. Ship-to-ship transfers of crude, refined products and other commodities resumed off the Texas coast on Tuesday. At least two charterers today sought Suezmax tankers for crude lighterings in the US Gulf coast from 12 July. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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