ISCC clears Brazil's FS corn ethanol for SAF
Brazilian corn-based ethanol producer FS has received certification that its corn-based ethanol complies with international requirements to produce sustainable aviation fuel (SAF).
The International Sustainability Carbon Certification (ISCC) Corsia applies to its Lucas do Rio Verde unit, in Mato Grosso state. ISCC is the leading international biomass and bioenergy certification scheme, focusing on land use sustainability along with greenhouse gas (GHG) traceability and verification.
Besides the general ISCC Corsia, FS was also granted an add-on certification of low use change (LUC) risk thanks to its ongoing partnership with second-crop corn supplier GF group. It certifies that the biofuel does not generate GHG emissions related to indirect land use change (ILUC), which can occur when pasture or agricultural land previously destined for food and feed markets is diverted to biofuel production.
FS is Brazil's first corn biofuel producer to receive the recognition and is now part of the SAF supply chain in all International Civil Aviation Organization member states. It allows the firm to ensure the traceability of the renewable fuel, a key part of the airline industry's search to reach net zero emissions by 2050.
The certification shows that Brazilian ethanol made from second-crop corn, much like its sugarcane alternative, can be a low-carbon feedsotck to produce biofuel for sectors that are difficult to decarbonize, such as aviation, according to FS' chief executive Rafael Abud. "Airlines will now be able to count on our ethanol as a competitive and highly scalable source to serve this market globally," he said.
Brazilian corn-ethanol producers will likely face an even harder challenge to penetrate the global SAF market, particularly in the EU, which favors biofuels obtained from recycled waste and, on a smaller scale, synthesized from hydrogen or e-fuels produced from renewable energy sources.
"Our task is to explain the carbon intensity calculations, clarify what second-crop corn is and stress the differences between the ethanol produced from corn in Brazil to that of the US," the firm's commercial director Paulo Trucco told Arguson the sidelines of an industry conference last year.
FS firm was the first ethanol group in Brazil to use only second-crop corn as a feedstock for ethanol production. Today, it has capacity to produce around 2.2bn l/yr (38,000 b/d) of ethanol, with an estimate of increasing this total up to 5bn l/yr after ongoing expansion works are concluded.
Obtaining the certificate is part of FS' larger strategy of diversifying its business and studying possible avenues for expanding into global markets, sources with knowledge of the matter said. The company has captured export flows for countries do not require certifications or impose barriers on the grain-based biofuel, which were previously supplied by the US.
On the domestic market, FS has relied on a network of expanding multimodal connections to get its product delivered across the country — including rail transport, coastal shipping operations and pipeline deliveries.
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Brazil ups 2023-24 crop forecast to 295.4mn t
Brazil ups 2023-24 crop forecast to 295.4mn t
Sao Paulo, 14 May (Argus) — Brazil's national supply company Conab increased its outlook for the 2023-24 grain and oilseed crops for the first time since the initial outlook in October, amid upward revisions in expected area for the season. Conab now expects 2023-24 output at 295.4mn metric tonnes (t), up from 294.1mn t a month ago. That is 7.6pc — or 24.4mn t — lower than the previous cycle's record of 319.8mn t because of the negative effects of the El Nino weather phenomenon over main producing states. The cycle is projected to yield 3,734 kg/hectare (ha), 8.3pc below the 4,072 kg/ha in 2022-23. That also compares with the 3,744 kg/ha forecast a month ago. Estimated sowed area expanded 590,100ha to 79.1mn ha this month, which is 578,000ha down from the prior season's acreage. Soybean output rises Brazil's 2023-24 soybean crop is now set to reach 147.7mn t, up by 1.2mn t from the 146.5mn t a month ago. That is a 4.5pc drop from the 2022-23 crop's record of 154.6mn t, but is still the second largest crop in the country's history. The monthly output increase follows a higher sowed area projection of 45.7mn ha, compared with 45.2mn ha in April. That is also a 3.8pc rise on the year. The expansion more than offset the downward revision in the outlook of Rio Grande do Sul state, which was recently hit by an unprecedented flood . But Conab said that further cuts may come in the following months, when farmers begin to count losses. Conab predicts average yields to total 3,229 kg/ha, down from 3,239 kg/ha estimated a month prior and 3,507 kg/ha in the prior cycle. Corn crop also up Conab expects Brazil to produce over 111.6mn t of corn in 2023-24, including the country's first, second and third crops. That is above the previous estimate of nearly 111mn t, but down by 15.4pc — or 20.3mn t — from 2022-23 record volumes. The forecast for the grain's planted area is at 20.6mn ha, approximately 236,100ha above the prior month's estimate. This represents a 7.4pc drop from the 22.3mn ha sowed in the prior cycle. Projected yields are at 5,414 kg/ha, down from March's estimate of 5,444 kg/ha and 8.6pc below the previous crop. Winter corn — also known as the second corn crop —accounted for most of the increase. The production forecast rose to 86.2mn t from 85.6mn t, below the 2022-23 crop's 102.4mn t record. Expected yields fell to 5,388 kg/ha from 5,427 kg/ha a month ago. That is also 9.5pc below the prior cycle's yields. Meanwhile, expected acreage was revised up from the prior month by 214,000ha to almost 16mn 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 23.4mn t, up by 133,800t from a month prior. The estimate for acreage rose by around 22,100ha to approximately 4mn ha, while yields remain projected at 5,879 kg/ha. Brazil's 2022-23 first corn crop produced 27.4mn t, yielding 6,160 kg/ha in a sowed area of over 4.4mn ha. Wheat down, cotton lint up Conab now expects Brazil's 2024 wheat production to total 9.1mn t, down by 647,300t from a month earlier. The decrease follows a 223,000ha drop in the sowed area projection to 3.1mn ha. That is 11pc below the prior season. Estimated yields remained roughly stable in May at 2,942 kg/ha, up by 26pc from a year earlier. Brazil's 2023 wheat output totaled approximately 8.1mn t, with heavy rainfall volumes in the south dropping yields to 2,331 kg/ha and acreage reaching almost 3.5mn ha. The forecast for 2023-24 cotton lint production rose by 43,500t to 3.6mn t, which is 470,200t — or 14.8pc — above the prior season's output. That reflects favorable weather in Mato Grosso do Sul and Minas Gerais states. 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 rose to 1,876 kg/ha from 1,860 kg/ha in April, which is 1.6pc below the prior season. Soybean exports slightly up Conab expects 2023-24 soybean exports to total 92.5mn t, up by 200,000ha from last month's projection driven by a higher expected production this month. That compares with almost 101.9mn t of soybeans exported in the 2022-23 season. Corn exports remains set to reach 31mn t, flat from April but a drop from the 54.6mn t shipped in the prior cycle. By Nathalia Giannetti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Ukraine soybeans feel destination markets squeeze
Ukraine soybeans feel destination markets squeeze
Kyiv, 14 May (Argus) — Ukraine's soybean exporters could find it difficult to maintain the pace of shipments to their traditional markets in the last four months of the 2023-24 season, as abundant global soybean supplies pressure prices. Argus has forecast that Ukraine will export 3mn t of soybeans in the 2023-24 marketing year (September-August), with the US Department of Agriculture's (USDA) projection 100,000t higher. Ukraine's cumulative soybean exports had reached 2.54mn t at the end of April, customs data show. This means that about 500,000t of soybeans remains to be exported in May-August to hit the full-year projections. For comparison, Ukraine exported nearly 574,000t in the same four months of last year. But abundant global soybean supply this season has pressured prices, including in some traditional destinations for Ukrainian-origin soybeans such as Egypt and Turkey. Many buyers are choosing US and Brazilian soybeans over Ukrainian, as their products are being offered at a discount of $10-15/t on a cif Egypt basis, a trader told Argus . As of 14 May, Ukrainian sellers were offering soybeans at $515/t cif Egypt, compared with bids of $505/t cif Egypt. Egypt and Turkey Ukraine exported about 95,400t of soybeans to Egypt in March, while April shipments were 30,500t. The USDA projects Egypt soybean imports at 2.8mn t this season, with about 1.55mn t already imported by the end of April, Global Trade Tracker (GTT) data show. The US and Brazil supplied more than 800,000t of that, while Ukraine delivered about 700,000t in September-April. Ukraine exported 51,000t of soybeans to Turkey in March, but only 4,300t in April, according to customs data. For the whole 2023-24 season, the USDA expects Turkey to import 3.1mn t of soybeans. In September-March, the country imported 1.47mn t, with volumes from Ukraine significantly down in March from the previous month, and arrivals from Brazil and the US offsetting this drop, according to GTT. In total, Ukraine supplied about 580,000t of soybeans to Turkey in September-March, GTT figures show. Ukrainian soybeans are likely to continue to be less competitive on the Egyptian and Turkish markets until the end of this season, because of large supplies from the US and Brazil. Higher local prices Ukrainian soybean prices remain firm, with buyers ready to pay $430-435/t cpt Reni/Izmail for the oilseed in the past seven days. Such prices — once transshipment costs and freight rates are added — make Ukrainian soybeans less competitive on a cif Egypt and cif Turkey basis. As a result, exporters have to look to other markets, such as Germany and the Netherlands. But deliveries by train and truck through Ukraine's western borders remain logistically complicated, leaving sea shipments the only viable option for traders. That said, with only about 500,000t of soybeans left for Ukraine to export to reach the 2023-24 projections, the available selling opportunities may be enough to hit the target. Even with decreased Ukrainian shipments to Egypt and Turkey, Ukraine April's exports of the product — at 134,000t — were in line with the five-year average of about 133,000t. By Kristin Yavorska Ukraine monthly raeseed exports 000't Ukraine cummulative soybean exports mn t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Rains persist in Brazil's Rio Grande do Sul
Rains persist in Brazil's Rio Grande do Sul
Sao Paulo, 13 May (Argus) — Downpours that began flooding Brazil's heavily agricultural Rio Grande do Sul in late April persisted over the weekend, continuing to wreak havoc in the state. Rains reached an accumulated 123mm (4.8 inches) on 10-12 May in state capital Porto Alegre, according to Brazil's national meteorological institute Inmet. Some areas experienced around 80mm of rain on 12 May alone, according to US National Oceanic and Atmospheric Administration. Showers in Porto Alegre have reached an accumulated 502mm in May already, according to Brazilian meteorological firm Climatempo. The monthly average is of 111mm. River and lake levels also kept rising. The Guaiba lake, in the state's capital, reached 4.9m (16ft) on Monday morning — up from 4.8m on 10 May, according to the state government. It is considered in a flood stage once it reaches 3m. Most rivers in the state, such as the Gravatai, Taquari and Uruguai, are also above flood levels. A bridge over the Cai River, which links Nova Petropolis and Caxias do Sul cities, broke partially on Sunday. As a result, a stretch of the BR-116 highway is closed, according to the national department of transport infrastructure. The river's levels are 6m above normal. Brazil's national center for natural disaster monitoring and alerts still considers the risk of "new hydrological occurrences" to be "very high" in Rio Grande do Sul and neighboring Santa Catarina state. The extreme weather has left 147 dead and 127 missing, according to the civil defense. Over 538,000 people are displaced. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Daio Paper to explore biorefinery
Japan’s Daio Paper to explore biorefinery
Tokyo, 13 May (Argus) — Japanese paper manufacturer Daio Paper is planning a trial biorefinery, aiming to begin commercial production of sustainable aviation fuel (SAF), second-generation bioethanol and biodegradable plastic feedstock by the April 2032-March 2033 fiscal year. Daio, in partnership with domestic biorefinery venture Green Earth Institute (GEI), plans to develop technology to demonstrate manufacturing the bioproducts by 2030. Daio Paper plans to use wooden biomass, waste paper and paper sludge as feedstock. The company declined to disclose any planned commercial output capacity, as well as location of the biorefinery. The project is financed by Japan's state-owned research institute Nedo. Daio Paper is attempting to achieve decarbonisation, while weakening paper demand has forced the industry to seek new business opportunities. Fellow Japanese paper producer Nippon Paper has also tried to develop biorefinery technology with GEI, targeting to begin commercial production of bioethanol for SAF and petrochemical feedstock by 2027-28. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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