India’s IOC plans 1pc SAF blending by Jul-Sep 2025

Market: Biofuels
24/10/24

Indian state-controlled refiner IOC plans to achieve at least 1pc sustainable aviation fuel (SAF) blending in jet fuel by July-September 2025, ahead of the government's aim of 2027.

IOC also plans to set up dedicated plants for SAF, IOC's director of research and development Alok Sharma said at the India Refining Summit on 23 October.

India aims to have 1pc SAF in jet fuel for international flights by 2027, which will double to 2pc in 2028. Delhi initially targeted to have 1pc SAF blending in jet fuel by 2025, saying it would need 140mn litres/yr of SAF to achieve this as part of the country's efforts to achieve net zero by 2070.

Refinery expansions will focus on expanding production of jet fuel on expectations of higher demand, Sharma said. He added that demand for other products will plateau, but that of jet fuel will increase.

The IEA sees global oil demand — excluding biofuels — falling to 93.1mn b/d in 2050. This compared with 97.4mn b/d in last year's World Energy Outlook, mainly because of lower-than-previously expected oil use in transportation, particularly in shipping.

Ethanol is likely to gain importance given that there are talks of blending 5pc ethanol in diesel, Sharma said, adding that India is likely to achieve its target of blending 20pc ethanol in gasoline by 2025.

India has a set a goal to increase ethanol blending in gasoline to 20pc by 2025, as part of efforts to reduce its dependence on crude imports. Ethanol blending in gasoline was 13.8pc during November 2023-September 2024 and 15.9pc during September 2024, oil ministry data show.

Most of the ethanol comes from first-generation plants, while second-generation plants are facing issues with feed handling which they hope to sort out soon, Sharma said. Second-generation bioethanol refers to ethanol made from non-edible resources such as biomass, while first-generation bioethanol is made from food resources such as sugarcane and corn.

By Roshni Devi

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Belem, 14 November (Argus) — A group of 10 countries led by Chile called for a global effort to cut energy demand from the transport sector by 25pc by 2035, aligning it with the Paris Agreement goal of limiting global warming to 1.5°C above pre-industrial levels. The coalition was formed at the UN Cop 30 climate summit, which is underway in Belem, northern Brazil. Brazil, Colombia, Costa Rica, the Dominican Republic, Honduras, Norway, Portugal, Slovenia and Spain are the other signatory countries so far. "We are committed to making transport a key pillar of climate action, agreeing a shared framework for resilient and low emissions transport systems", Chile's transport minister Carlos Abogabir told journalists at Cop 30. Cutting energy demand from transport — the second-largest emitting sector — allows for "a clear measurable direction towards a net zero scenario in the transport sector in 2050", he added. Chile is a natural leader for the coalition as it is a global leader in efforts to electrify its public transport fleet. The country's capital Santiago is the city with most electric buses outside of China, Abogabir said. It had around 3,000 electric buses in 2024, according to a report by Agora Verkehrswende, a non-governmental organisation focused on climate neutrality in transport. But it will have 4,400 by March, Abogabir added. The coalition will now work to create a roadmap to reach the pledge's goal and measure progress for future Cops, according to Slocat, a global partnership that promotes sustainable, low-carbon transport. Sustainable fuels, renewable sources Although the pledge will heavily rely on electrification, it also calls on countries to shift one-third of energy powering transport to sustainable biofuels and renewable sources. Brazil is the second-biggest biofuel producer globally, trailing only behind the US. But it will consider any route that both decarbonizes its fleet and drives national industry, Brazilian minister of cities Jader Barbalho Filho told Argus , mentioning specifically liquid nitrogen and biomethane. Including existing and expected projects, Brazil could have 2.4mn m³/d of biomethane capacity by 2027, data from hydrocarbons regulator ANP show. The shift to sustainable biofuels and renewables sources plays well into Brazil's Belem 4x pledge , which calls for a global effort to quadruple global output and use of sustainable fuels by 2035, Filho added. "The Chilean government looked for us [to present the transport pledge] exactly because we already have [Belem 4x]", he said. The Belem 4x pledge now has 23 country signatories, Cop 30 chief executive Ana Toni said today. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia’s Jet Zero, Townsville port sign biofuels MoU

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Sydney, 14 November (Argus) — Australian bioenergy developer Jet Zero and the Port of Townsville have signed an initial agreement to assess the feasibility of developing new biofuel storage and blending infrastructure at Queensland's third-largest port. The biofuels firm and port operator will explore design and construction options for a potential liquid storage facility to support the movement, blending, import and export of sustainable fuels from Jet Zero's nearby proposed Project Ulysses , Jet Zero said on 13 November. Project Ulysses will produce 113mn litres/yr sustainable aviation fuel (SAF) and renewable diesel (RD) using the alcohol-to-jet method at north Queensland's Townsville State Development Area, 2km south of the Port of Townsville. Jet Zero recently completed front-end engineering and design with alcohol-to-jet technology provider LanzaJet. The project could produce one-sixth of the domestic airline industry's 2030 SAF commitment, but a date for first output has not been disclosed. Project Ulysses aims to meet mandated and voluntary demand for SAF and RD in the aviation and marine sectors, and the Port of Townsville will play a critical role in facilitating trade and supporting regional industry growth, the companies said. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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API pitches revamp of biofuel exemptions: Update

13/11/25

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13/11/25

API pitches revamp of biofuel exemptions: Update

Updates throughout New York, 13 November (Argus) — The American Petroleum Institute (API) is pitching the White House and biofuel groups on a total revamp of how the US exempts oil companies from a program that requires biofuel blending, according to three people familiar with the lobbying group's work. API recently withdrew its support for a bill that would authorize 15pc ethanol gasoline (E15) year-round on its frustrations with changes to biofuel policy this year that oil companies see as too friendly to farmers and to some small refining competitors. The US for instance recently granted small oil refiners generous hardship waivers from a biofuel blend mandate and proposed requiring larger companies to blend more biofuels in future years as an offset. API's pitch — shared at a White House meeting this week — would require that companies seeking program exemptions must show that economic hardship stems directly from the biofuel program, a more stringent requirement than today, according to two of the people familiar with the group's work. Exemptions would also be restricted to companies with limited collective refining capacity, cutting off larger enterprises like Delek and Par Pacific that own multiple small units that qualify now. Smaller companies like Ergon and Kern Oil could still request waivers, but the total pool of potentially exempted gas and diesel volumes would be far lower. The oil group then wants the US to prohibit hiking other oil companies' blend requirements to offset those exemptions, a tougher sell to biofuel and crop groups that fear unchecked program waivers curb demand for their products. Larger merchant refiners that do not qualify for small refinery relief have also long pushed lawmakers for updates to the program and would not benefit from this proposal. API's idea is to pass legislation pairing updates to the small refinery exemption program with year-round authorization of E15, generally prohibited in the summer without emergency waivers because of summertime fuel volatility restrictions that do not apply to typical 10pc ethanol gasoline. That's a top priority for ethanol companies, otherwise at risk from an increasingly efficient and electric light-duty vehicle fleet. Congress last year nearly passed narrower E15 legislation, which API supported at the time but no longer does without more changes. Courts have struck down past attempts by federal officials to authorize E15 without emergency declarations and to drastically restrict biofuel exemption eligibility, likely limiting what President Donald Trump's administration can do without new legislation. API made the pitch to the White House this week, the sources familiar with API's work said. The White House is hosting other groups for meetings on fuel policy, including another one on Thursday on E15 that featured biofuel groups. Officials from across Trump's administration, including the US Department of Agriculture, have attended. "Administration officials hosted listening sessions with biofuel groups, agriculture and oil refiners to discuss their proposals on year-round E15", a source familiar with the matter said. It is not clear that biofuel advocates, insistent that the Trump administration entirely offset the impact of recent refinery exemptions, are open to the attempted compromise. The ethanol group Renewable Fuels Association declined to comment on E15 talks. Regulatory tweaks to boost ethanol supply would also do little on their own to help producers of other biofuels like renewable diesel. API declined to elaborate on what was discussed at any meetings with the Trump administration. "We appreciate the administration's leadership in bringing stakeholders together to advance a practical solution on E15 and small refinery exemption reform", API said. "We look forward to continuing to work together to advance a framework that supports fuel choice, strengthens the refining and agricultural sectors, and helps ensure a stable, reliable supply for American consumers." Under the Renewable Fuel Standard, the US requires oil refiners and importers to annually blend different types of biofuels or buy credits from those that do. The administration is late setting new biofuel quotas for 2026 but is expected to do so in the coming months, kicking off a flurry of last-minute lobbying about future volumes, exemptions and potential cuts to credits from foreign fuels and feedstocks. 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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API pitches revamp of small refinery biofuel waivers

13/11/25

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13/11/25

API pitches revamp of small refinery biofuel waivers

New York, 13 November (Argus) — The American Petroleum Institute (API) is pitching the White House and biofuel groups on a total revamp of how the US exempts oil companies from a program that requires biofuel blending, according to three people familiar with the lobbying group's work. The API recently withdrew its support for a bill that would authorize 15pc ethanol gasoline (E15) year-round on its frustrations with changes to biofuel policy this year that oil companies see as too friendly to farmers and to some small refining competitors. The US for instance recently granted small oil refiners generous hardship waivers from a biofuel blend mandate and proposed requiring larger companies to blend more biofuels in future years as an offset. API's pitch would require that companies seeking program exemptions must show that economic hardship stems directly from the biofuel program, a more stringent requirement than today, according to two of the people familiar with the group's work. Exemptions would also be restricted to small companies with limited collective refining capacity, cutting off larger enterprises like Delek that own multiple small units that qualify today. The oil group then wants the US to prohibit hiking other oil companies' blend requirements to offset those exemptions, a tougher sell to biofuel and crop groups that fear unchecked program waivers curb demand for their products. Larger independent refiners that do not qualify for small refinery relief have also long pushed lawmakers for updates to the program and would not benefit from this deal. API's idea is to pass legislation pairing updates to the small refinery exemption program with year-round authorization of E15, generally prohibited in the summer without emergency waivers because of summertime fuel volatility restrictions that do not apply to typical 10pc ethanol gasoline. That's a top priority for ethanol companies, otherwise at risk from an increasingly efficient and electric light-duty vehicle fleet. E15 legislation nearly passed Congress last year. API made the pitch to the White House at a meeting this week, the sources familiar with API's work said. The White House is hosting other groups for meetings on fuel policy, including another one today on E15 that will feature biofuel groups. API declined to comment on any meetings with President Donald Trump's administration. "We appreciate the administration's leadership in bringing stakeholders together to advance a practical solution on E15 and small refinery exemption reform", the group said. "We look forward to continuing to work together to advance a framework that supports fuel choice, strengthens the refining and agricultural sectors, and helps ensure a stable, reliable supply for American consumers." 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: Indonesia targets 1mn kl/yr SAF output by 2030

13/11/25

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13/11/25

Cop: Indonesia targets 1mn kl/yr SAF output by 2030

Singapore, 13 November (Argus) — Indonesia aims to maximise its used cooking oil (UCO) potential to achieve over 1mn kilolitres/yr of sustainable aviation fuel (SAF) output by 2030, deputy chairman of the People's Consultative Assembly of Indonesia Eddy Soeparno said at the UN Cop 30 climate summit in Belem, Brazil. Indonesia is rich in feedstock resources, but currently only about 23pc of Indonesia's UCO is collected, with the rest discarded or wasted, said Soeparno at the summit on 12 November. By optimising collection systems, Indonesia can mobilise up to 715,000 t/yr of UCO, which would unlock 187,000 kl of SAF-equivalent feedstock, he said. This would also lead to the avoidance of an estimated 500,000 t/yr of CO2 emissions. Through state-owned energy firm Pertamina's green refinery expansion in Central Java and South Sumatra, Indonesia is targeting about 1.114mn kl/yr of SAF output capacity by 2030. Indonesia's projected cumulative SAF demand could reach approximately 860,000 kl/yr by 2039. By this time, with the expanded production capacity, there may be a supply surplus of about 23pc, which could be exported, said Eddy. National strategy Indonesia aims to link feedstocks, refineries and distribution under one co-ordinated framework. The first step is to secure domestic feedstock and guarantee a stable supply for the hydrotreated esters and fatty acids (HEFA) pathway by implementing a domestic market obligation (DMO) for palm oil by-products such as palm fatty acid distillate (PFAD), and prioritising domestic use, said Soeparno. The second step is to scale production through innovation, by using next-generation SAF technology such as alcohol-to-jet and power-to-liquid, in national strategic projects. Lastly, to ensure market availability, it is important for SAF to flow through dedicated jet fuel distribution networks to key airports to guarantee consistency of supply once blending mandates begin. Indonesia plans to implement a 1pc SAF blending target by 2027 at selected airports and on some flights. SAF currently costs 2-3 times more than fossil jet fuel, so Indonesia must take a phased approach to make it more competitive, said Soeparno. In the short term, the country will focus on developing a national pricing and valuation framework such as setting a minimum price floor for SAF, to provide airlines and investors with predictable cost signals. In the medium term, the country will look at industrial competitiveness and scaling demand by moving from voluntary adoption to mandatory blending, beginning with major airports. Indonesia ultimately aims to provide long-term policy certainty for investors by harmonising standards, blending requirements and co-ordination under a unified national roadmap. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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India’s IOC plans 1pc SAF blending by Jul-Sep 2025

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