EU mulls exemption for aviation biofuel feedstocks

Market: Biofuels
11/03/24

The European commission is pushing to extend the 'advanced' technology definition for biofuel feedstocks from intermediate and cover crops — used to cover the soil between crops. But European waste-based and advanced biofuels association (Ewaba) deplores the proposed change only applying to the aviation sector.

Under a new text circulating among member state experts, feedstock from intermediate and cover crops used in other sectors — such as maritime or road — would fall under the existing 1.7pc cap for transport fuels and electricity from feedstocks defined as a 'mature' under part B of the EU's renewable directive's annex IX.

The text refers to "crops grown on severely degraded land, except food and feed crops" and defines such feedstocks as advanced "where used for the production of biofuel for the aviation sector" and as mature "where not used for the production of biofuel for the aviation sector".

The same differentiation is made for intermediate crops, such as catch crops and cover crops grown in single harvest areas, if their use does not trigger additional land demand and provided the "soil organic matter content is maintained". Cyanobacteria — an algae used to produce some biofuels — would also be advanced.

Ewaba welcomed the expansion as it said that it will alleviate pressure on certain feedstocks, but added that it is concerned at an "unexpected and unjustified" changed that singles out aviation.

"The stronger policy support granted to cover crops for aviation interferes with the level-playing field across sectors and challenges the principle of technology neutrality, a crucial pillar for investment certainty," said Ewaba secretary general Angel Alvarez Alberdi.

Alvarez fears extra incentives for aviation use of the same intermediate and cover crops will direct them towards the aviation industry to the detriment of use in other hard-to-decarbonise sectors, including for heavy-duty vehicles and ships.

But Alvarez told Argus that the commission may delete the reference to aviation due to significant opposition from EU states so as to a avoid a veto after formally proposing the draft directive.

Officials are aiming to formally propose the directive as a first feedstock review before the end of March. Under the 2018 renewables directive, but, the commission should have reviewed feedstocks every two years from June 2019.

By Dafydd ab Iago

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12/11/25

Enhanced FT tech could drop SAF cost below HEFA: Aether

Singapore, 12 November (Argus) — US-based climate technology firm Aether Fuels aims to produce sustainable aviation fuel (SAF) using its enhanced Fischer-Tropsch (FT) technology at prices comparable to or lower than hydrotreated esters and fatty acids (HEFA) product by 2030, founder and chief executive Conor Madigan told Argus in an interview. Madigan was speaking on the sidelines of an agreement signing ceremony on 11 November between Aether and Singapore-based energy and infrastructure provider Aster. This was to develop a next-generation SAF facility at Aster's refining and petrochemical complex on Singapore's Pulau Bukom. Named as Project Beacon, the plant will use Aether's Aurora™ technology to convert industrial waste gas and biomethane into Corsia-certified SAF, which achieves over 70pc reduction in greenhouse gas (GHG) emissions compared to conventional jet fuel. The capital investment amount will be shared later. Construction at the plant is expected to begin in 2026. It will then be commissioned in 2027 and begin commercial operations in 2028, employing 24 full-time staff. Project Beacon is expected to produce up to 50 b/d of fuel — or 2,000t/year — by 2028, comprising 1,600t of SAF and 400t bio-naphtha. Aether had previously signed Memorandums of Understanding (MoUs) with Singapore Airlines in February and with US' JetBlue in September, for the airlines to potentially procure SAF produced. Other airlines have expressed interest as well, Madigan told reporters at a media briefing yesterday. Discussions with bio-naphtha buyers are still in early stages, but local demand for the product is expected. Aether also has plans for another SAF plant which can produce at least 1,000 b/d of fuel by 2030, Madigan added. The location is still being confirmed, but more details will likely be available in second-half of 2026 after Project Beacon is operational. With this larger plant, Aether expects to supply product at HEFA-SPK prices or below it and steadily bring the price down with subsequent plant development, Madigan said. "We expect to eventually get prices quite close to fossil fuel, although that also depends on factors slightly out of our control, including hydrogen and renewable power prices." The Argus fob Singapore SAF (class 2) price, netted back from ARA values, was at $2,892/t as of 11 November. This was over 3.5 times the fob Singapore jet/kerosine price at $745/t. Capex reduction, yield increases Madigan said that Aether's Aurora technology brings around a 50pc reduction in capital expenditure (capex) and a 20pc increase in yield, compared to existing FT SAF production technology. Capex is reduced through a few ways — one of which is reducing the amount of equipment from three to one via Aether's tri-converter. The syngas produced — comprising carbon monoxide, CO2 and hydrogen — is then input to the FT reactor. The reactor also runs on electricity rather than fuel combustion, which allows further cost reductions. Aether also has some "novel catalysts" whose robustness removes the need to get rid of certain feedstock contaminants like carbon monoxide, which contribute to cost savings too, Madigan told Argus . Actual reductions in monetary terms would vary depending on the exact feedstock used, he said. Madigan also sees an expansion in scale of FT plants from 2030 onwards, citing other plants at similar scale to Project Beacon in the US and Europe. FT likely essential with upcoming HEFA feedstock crunch "As the world electrifies and switches to more sustainable [energy] sources, industrial waste gas can become stranded and become waste streams that we can use," Madigan said. This will be essential, especially as HEFA feedstock supply tightens and prices rise, there also being less opportunities for HEFA technology costs to be reduced through innovation, as capex is less of a major driver for such plants. Regarding cover crops, Madigan noted immense challenges to change agricultural practices en-masse at existing agricultural lands, where cover crops are grown in rotation with — and generally insufficient capacity to meet the industry's full demand. Madigan also mentioned challenges around scaling up low-cost green hydrogen supply to produce SAF through the power-to-liquid pathway, also known as e-fuels. In comparison, feedstocks like biogas, industrial waste gas, or agricultural waste — which they can use— are much more abundant. And while biofuel plants running on the FT process generally need to be built near the producers of industrial waste gas or agricultural waste, this could support job creation for local communities associated with the additional collection and aggregation of such waste. "This is therefore a solution that can be one of the major long-term sources of sustainable fuel," Madigan said. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: IMO pushes forward with carbon pricing

10/11/25

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10/11/25

Cop: IMO pushes forward with carbon pricing

Belem, 10 November (Argus) — External politics rather than any failure of the International Maritime Organization (IMO) led to the delay in adopting a greenhouse gas (GHG) emissions pricing mechanism for global shipping, proposal supporters said on Monday. IMO members last month voted to delay the adoption of the Net-Zero Framework (NZF) by a year, despite some of those backing the delay previously supporting the carbon pricing system. The October gathering was "not a typical IMO" meeting, IMO secretary general Arsenio Dominguez said during a side event at the UN Cop 30 climate talks in Belem, Brazil. "We were affected by the global geopolitics that we all face right now. We're not immune to it," he said. Dominguez also sought to assure critics of the vote that the IMO is not backing down from the proposal, citing ongoing work to address some questions that member states raised during last month's meeting. "My message to you is very clear, don't judge IMO for what happened last October. Don't think that IMO stops there because we don't," he said. Dutch climate envoy Jaime de Bourbon Parme struck a similar tone, telling the audience that while the delay may give supporters a "sense of failure" very few countries last month argued the NZF should not be adopted. "I know the Netherlands and many other countries were ready to sign, however, the meeting went a very different direction," he said. While Dominguez and the Dutch prince did not single out any country for causing the delay, many NZF supporters have put the blame on the US. In the days leading up to the vote, the administration of US president Donald Trump threatened to retaliate against countries that back the proposal with measures such as visa restrictions, new port fees or sanctions on officials that sponsor "activist-driven" climate policies. The Trump administration "went outside the rules of engagement," said Andrew Forrest, non-executive chairman of Australian mining company Fortescue, calling US actions before the vote a form of "thuggery." By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EPA does not update court on biofuel timing: Correction

10/11/25

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10/11/25

EPA does not update court on biofuel timing: Correction

Corrects government shutdown's impact on court deadlines, and updates with new information throughout. New York, 10 November (Argus) — President Donald Trump's administration did not update a court on its timeline for finalizing new biofuel blend mandates, as a partial government shutdown slows down court cases and regulatory work. Biofuel groups Clean Fuels Alliance America and Growth Energy have repeatedly sued the administration over its delays, hoping that a court will require the Environmental Protection Agency (EPA) to set new biofuel quotas before year-end. Judge Timothy Kelly of the US District Court for the District of Columbia ordered the administration to provide an update on its timeline by 7 November. But in a filing that evening, the biofuel groups said they had not heard back from government lawyers. No timing update was provided. "It is the understanding of Clean Fuels and Growth Energy that counsel for defendants may currently be furloughed," they told the court. Kelly ordered the update before the ongoing partial government shutdown began. The DC district court later said in a general order that it would give the government more time to respond across all civil cases because of the funding lapse. Government lawyers had previously warned courts that the shutdown would sideline critical officials and make it hard to meet deadlines. But the government's lack of response to biofuel groups in the case is still raising fears of more prolonged delays updating a program that is important for producers of ethanol, renewable diesel and other biofuels and is popular among powerful farm-state Trump allies in Congress. EPA told Argus it was reviewing comments on its plan to make oil companies offset past program exemptions and "continues to work on final regulations" to establish new blend mandates. In past cases over biofuel program deadlines, biofuel groups and federal officials have negotiated new timelines or judges have ordered EPA to act by a set date. Clean Fuels said it would continue to ask the DC court to expedite the case and require the agency to publish a final regulation by year-end. Under the Renewable Fuel Standard, EPA requires oil refiners and importers to annually blend different types of biofuels or buy credits from those that do. The program is crucial for the production margins of ethanol, renewable diesel and other biofuels and is popular among powerful farm-state Trump allies in Congress. EPA — required by law to set new mandates 14 months in advance of a new year — is late setting new quotas for 2026 and 2027. Even before the shutdown, the Trump administration told the DC court that developing a complicated plan to offset the impact of small refinery exemptions meant it might not be able to finalize new blend mandates until next year . Biofuel advocates fear that further delays would mean less ambitious final quotas, another hurdle for biorefineries that have cut run rates this year and for farmers hurting from this year's tariff fights. EPA has indeed been more cautious in the past when finalizing retroactive mandates since oil companies have less notice on volumes they must bring to market. Lawyers and lobbyists who closely track the program have also told Argus that delays raise the chance that major program updates — like a plan to halve program credits for fuels made abroad or from foreign feedstocks — are at least pushed back. Oil refiners have argued the half-credit idea is illegal and questioned how EPA could roll out a new feedstock tracking system in a matter of weeks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US EPA grants more waivers from biofuel quotas

07/11/25

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07/11/25

US EPA grants more waivers from biofuel quotas

New York, 7 November (Argus) — President Donald Trump's administration today granted small refiners even more exemptions from federal biofuel blend mandates, raising the stakes of a debate about whether larger oil companies should shoulder more of the burden. The US Environmental Protection Agency (EPA) granted two full exemptions from the program's annual blend requirements, halved obligations in response to 12 petitions, and denied two others. The agency requires oil refiners and importers to annually blend biofuels or buy credits from those who do, though small facilities that process 75,000 b/d or less can request program waivers that can save them tens of millions of dollars. The agency used the same methodology as its sweeping August decision , which responded to a historic backlog of petitions and granted most refiners some relief from years of mandates. New petitions poured in afterwards, including from refiners that had not requested waivers in years. And more decisions could come soon, with EPA committing Friday to "address new petitions as quickly as possible" and to try to meet a legal requirement to decide requests within 90 days. Farm and biofuel groups fear that widespread waivers curb demand for their products and have lobbied the Trump administration to follow through on a plan to make oil companies without exemptions blend more biofuels in future years to offset past exemptions for their smaller rivals. Particularly for higher-cost products like renewable diesel and biogas, any dip in demand can prompt biorefineries to slash output. The debate has intensified in recent weeks after a refiner granted generous exemptions in August announced plans to convert a renewable diesel unit back to crude. "The impact on biofuel and agriculture markets will be devastating" without compensating for these exemptions in future biofuel quotas, said Geoff Cooper, president of the ethanol lobby Renewable Fuels Association. EPA already planned on estimating future exemptions from 2026-2027 requirements when finalizing biofuel mandates those years. But the agency has added more work to its plate with a subsequent plan to force large oil refiners to compensate for either all or half of the biofuel volumes lost to actual and expected exemptions from 2023-2025 requirements. The impact of older exemptions is less significant since the credits are expired. The challenge for EPA is that small refiners can submit new or revised petitions at any time, including for years-old mandates. That makes it hard for EPA to accurately forecast future exemptions, and biofuel groups have feared that the agency could muddle the effects of its "reallocation" plan by underestimating volumes ultimately lost to program waivers. Indeed, EPA with its Friday decisions has already waived more requirements than it predicted earlier this year. The agency last forecast that exemptions from 2023 and 2024 mandates would amount to around 1.4bn Renewable Identification Number credits (RINs) of lost demand — but now, the waivers have already reduced obligations those years by 1.92bn RINs, according to program data. If EPA sticks to its plans, that means large refiners will have to blend an even greater share in future years than expected. But if the Trump administration waters down its reallocation idea, biofuel demand could sink more than previously forecast too. There is also the risk that EPA underestimates exemptions for the 2025 compliance year. EPA last forecast that exemptions from those requirements will amount to 780mn RINs of lost demand but has not yet decided any of the 12 pending petitions for that year. Many more requests are likely. Small refiners add to their winnings The August exemptions were a windfall for some oil companies. HF Sinclair, which owns multiple small refineries, last week reported $115mn from lower compliance costs as well as a $56mn indirect benefit from "commercial optimization" of its RIN credit position. And HF Sinclair won more Friday, winning full waivers from 2023 and 2024 biofuel mandates for the "east" section of a larger 125,000 b/d complex in Tulsa, Oklahoma that before September had not previously requested relief in at least three years. The company also won partial relief for two other units from 2021 mandates. Phillips 66 won four years of partial relief for its 66,000 b/d Montana facility, as did Big West Oil for its 35,000 b/d Utah plant. Silver Eagle won exemptions from 2023 blend mandates for two smaller units it owns in Wyoming and Utah. The only Friday denials were for Chevron's 45,000 b/d Utah refinery, which applied for the first time in years just last month. But the increasingly generous relief for small refiners is likely to provoke further backlash from larger oil companies, which argue that making them blend more biofuels is anticompetitive and illegal. EPA is months behind schedule on setting biofuel mandates for 2026 and 2027 and has a deadline Friday to tell a court more about how its reallocation plan affects its timeline. Biofuel groups have asked the court to force the agency to finalize program updates by year-end. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: 15 nations join sustainable fuels pledge: Update

07/11/25

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07/11/25

Cop: 15 nations join sustainable fuels pledge: Update

Updates with new membership announcement Belem, 7 November (Argus) — A global effort to quadruple the global output and use of sustainable fuels by 2035 will eventually gain significantly greater international backing and provide a boost to energy transition efforts, Engie chairman Jean-Pierre Clamadieu said on Friday. A total of 15 countries joined the "Belem 4x" pledge during a world leaders' summit held on 6-7 November just ahead of the UN Cop 30 climate talks, the Brazilian government said, bringing the total backing to date to 19 nations. The "Belem 4x" pledge, which Brazil proposed in September , launched with support from three other countries — Italy, Japan and India. Clamadieu said he believes total support could grow to around 25-35 countries, if not more. "I think everyone will wait a bit before signing, because people want to study to make sure that all the aspects have been taken into account. But again, I think this pledge will have a big success," Clamadieu told reporters today on the sidelines of the summit. The Brazilian government has said global collaboration is needed to meet the Belem 4x goal and will help lower existing barriers, such as high costs, the lack of clear demand signals and the need for investment in new infrastructure. The pledge's goal is to use sustainable fuels and other technologies to help reduce greenhouse gas (GHG) emissions from electricity generation and from hard-to-abate sectors such as aviation, maritime transport and the cement and steel sectors. "We won't be able to decarbonise if we don't have green molecules that can be used as fuel," Clamadieu. The focus on sustainable fuels is a natural complement to the pledge to triple renewable energy by 2030 that 118 countries signed on to at Cop 28 in Dubai in 2023, according to Clamadieu. "I think it's really it's a bit of a missing piece today, when you look at energy transition," he said. "What was really missing in this Dubai commitment was this issue of green molecules." The countries joining Belem 4x are Armenia, Belarus, Canada, Chile, Guatemala, Guinea, Maldives, Mexico, Mozambique, Myanmar, Netherlands, Panama, South Korea, Sudan, and Zambia. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU mulls exemption for aviation biofuel feedstocks

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Enhanced FT tech could drop SAF cost below HEFA: Aether

Enhanced FT tech could drop SAF cost below HEFA: Aether

Cop: IMO pushes forward with carbon pricing

Cop: IMO pushes forward with carbon pricing

EPA does not update court on biofuel timing: Correction

EPA does not update court on biofuel timing: Correction

US EPA grants more waivers from biofuel quotas

US EPA grants more waivers from biofuel quotas

Cop: 15 nations join sustainable fuels pledge: Update

Cop: 15 nations join sustainable fuels pledge: Update

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