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Ethanol gaining favour as European bunker fuel
Ethanol gaining favour as European bunker fuel
London, 27 October (Argus) — Ethanol is gaining traction as a bunker fuel for methanol-fuelled vessels seeking to meet EU regulatory requirements, because ethanol-methanol blends can offer a lower-cost alternative to pure biomethanol. Ethanol can be used in methanol-fuelled engines with little or no modification. This has attracted interest from shipowners, because ethanol is cheaper than biomethanol and can be used in blends to reduce overall fuel cost. Companies including WinGD, Everllence and Wartsila have conducted successful tests using biomethanol and ethanol blends, as well as 100pc ethanol. In May, Rotterdam port completed its first ethanol-methanol blend bunkering operation. Barcelona port had its first 100pc-ethanol bunkering in July, carried out by Danish shipowner Maersk, which has undertaken its first 100pc ethanol voyage in the first quarter of the year. There are 161 methanol-fuelled ships operating, according to Norwegian classification agency DNV, which began including ethanol-fuelled vessels in its tracking in the first half of this year. The number of methanol-fuelled vessels is set to reach 448 by 2030, DNV said.Ethanol is cheaper and has a higher volumetric energy content than biomethanol. In September, average 75pc greenhouse gas (GHG) crop-based saving ethanol fob Amsterdam-Rotterdam-Antwerp (ARA) range was at an average €995/t, or €37/GJ. This is compared with more than €896/t or €56/GJ for biomethanol in the same period. The average value of conventional methanol was just over €434/t or €27/GJ in September. Ethanol's volumetric energy content is 26.6 GJ/t (21 GJ/m³), compared with methanol and biomethanol at 16 GJ/t (12.6 GJ/m³). The economics are further improved by the duty treatment of marine fuel. Ethanol imported to the EU for use as bunker fuel pays no duties, while material supplied for the European road-fuel market faces standard duties of €192/m³ for undenatured ethanol and €92/m³ for denatured ethanol, unless preferential trade arrangements apply. Blending ethanol with biomethanol can lower overall cost and increase energy density. Biomethanol provides the greenhouse gas (GHG) reduction required for FuelEU compliance, which first generation ethanol — produced from sugar, wheat or corn — cannot. FuelEU requires a 2pc reduction, rising to 6pc in 2030. Ethanol can also act as a substitute for marine gasoil (MGO) in emission control areas (ECAs) because of its low sulphur content. Blending trials involving biomethanol and very-low sulphur fuel oil (VLSFO) or marine gasoil (MGO) had faced technical challenges, specifically related to the flash point of the final product, participants said. Demand for marine ethanol could rise further in the coming years. In the Netherlands, a key bunkering market, waste-based ethanol and biomethanol made from feedstocks categorised under Annex IX Part A of the EU renewable energy directive would be eligible to generate Dutch marine ZRE tickets. This could incentivise marine fuel suppliers to keep marine waste-based ethanol and biomethanol prices competitive with non-ZRE eligible fuels, in order to generate enough ZREs to meet their annual obligations, and avoid securing expensive ZREs from over-compliant peers. It could also offer an alternative route to ZRE generation beyond advanced Fame biodiesel, the most common ZRE-eligible fuel currently bunkered in the Netherlands. Argus assessed ZREs at 21.75c/kgCO2e on Monday, 26 October. For one tonne of waste-based ethanol with 90pc GHG savings, this would roughly generate ZRE tickets worth $556/t. By Natália Coelho, Toby Shay, Madeleine Jenkins and Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Fire reported near Saudi Arabia’s Ras Tanura complex
Fire reported near Saudi Arabia’s Ras Tanura complex
Dubai, 27 October (Argus) — A fire broke out near Saudi Arabia's Ras Tanura oil export terminal early on Tuesday, a source with knowledge of the matter said. Yemen's Houthi rebels shortly afterwards claimed an attack on the nearby refinery. The fire has since been contained, the source said, although the extent of any damage remains unclear. State-controlled Saudi Aramco did not immediately respond to a request for comment. The Houthis, meanwhile, said they had launched a ballistic missile at the 550,000 b/d Ras Tanura refinery. Houthi spokesman Yahya Saree claimed the strike caused "massive fires" at the site. The refinery is part of the wider Ras Tanura industrial complex, which also houses one of Saudi Arabia's main crude export terminals. The refinery has been targeted several times since the start of the US-Iran war in late February. Aramco shut the facility for more than three months after two Iranian attacks in early March. The latest incident comes as the conflict between Saudi Arabia and the Yemen-based Houthis escalates. The group this month widened its targeting beyond military and energy facilities to include international airports and Aramco's headquarters in Dhahran. The Houthis over the weekend claimed attacks on several Saudi energy facilities, including the 400,000 b/d Petro Rabigh refinery and petrochemicals complex and crude pumping stations along the 7mn b/d East-West pipeline. The pipeline carries crude westwards to the Red Sea port of Yanbu for export. It also supplies refineries, power stations and desalination plants along the Red Sea coast. Neither Aramco nor the Saudi government has confirmed those claimed attacks. But Argus understands that at least one pumping station on the East-West pipeline was damaged over the weekend. The damage was limited and did not affect operations. An earlier attack on the pipeline system in early September forced Saudi Arabia to shut it temporarily. Aramco restarted flows within a week, with throughput recovering to 5.8mn b/d by early October. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
International fossil fuel finance down under Cop pledge
International fossil fuel finance down under Cop pledge
Edinburgh, 27 October (Argus) — International fossil fuel project finance from countries in the Clean Energy Transition Partnership (CETP) dropped by 72-80pc to $3.3bn last year compared with a 2019-21 baseline, but Italy, Germany and Switzerland are still not meeting the goal, according to a report by think-tank the International Institute for Sustainable Development (IISD). Under the CETP, signed in 2021 on the sidelines of the UN Cop 26 climate summit in Glasgow, 40 countries and jurisdictions pledged to end international public finance for fossil fuels by the end of 2022. The signatories include Canada, Norway, the UK, Germany, Italy, the Netherlands and Denmark. The US left the alliance in February 2025. The commitment covers public finance provided through development finance institutions, export credit agencies and multilateral development banks. "The CETP is an example of how international agreements with time-bound commitments, combined with ongoing monitoring and accountability efforts, can shift international energy finance away from fossil fuels and toward clean energy, although scaling clean energy financing has been slow," IISD said. But clean energy finance from the CETP countries in the same period only rose by 28pc to $5.6bn and only 42pc of the funding removed from fossil fuel investments has been going towards clean energy, according to IISD. Some countries have yet to meet their Cop 26 pledge. Italy has provided $6bn in international fossil fuel finance since the end of 2022, when countries were due to meet their CETP target, while Germany and Switzerland provided $2.5bn and $1.6bn, respectively. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Climate plans improve but off track for 1.5°C goal: UN
Climate plans improve but off track for 1.5°C goal: UN
Edinburgh, 27 October (Argus) — Countries' nationally determined contributions — climate plans — have improved in quality and scope, but progress in lowering emissions remains "substantially off track" to limit temperature rises to 1.5°C and keep a temporary overshoot short, according to a report from UN climate body the UNFCCC released today. The report took into account 127 new nationally determined contributions — climate plans — released between 1 January 2024 and 31 August 2026, representing 154 out of 194 parties to the Paris agreement. The 154 parties account for around 71pc of total greenhouse emissions, according to the report. The report does not include the US — the world's second-biggest emitter — since the country officially left the Paris accord last year. The UNFCCC found that GHG emission reductions — including land use, land-use change and forestry — stemming from the implementation of NDCs are projected to peak and decline by 2035, reaching 6pc below 2019 levels on average. The cuts would imply "best-estimate warming of 1.7-2.3°C by the end of the century", the report said, adding that "returning warming to 1.5°C would require substantial additional GHG emission reductions in the coming years". The NDCs "show improvement, compared with the previous NDCs, in the quality and depth of information provided, as well as broader thematic coverage", the UNFCCC said. The organisation found that energy transition is a common theme in the NDCs and that electrification plays "an increasingly important role in reducing emissions while strengthening energy security". "Against the backdrop of recent energy crises, almost two thirds of parties highlighted the contribution of mitigation measures to energy security, particularly through renewable energy and energy efficiency improvements," the report said. The report showed that 27pc of countries referred "to transitioning away from fossil fuels in energy systems in a just, orderly and equitable manner" as per the call made at Cop 28 in Dubai and that 10pc reported targets for cutting fossil fuel fired power generation by 2035, representing a 258TWh reduction. Around 6pc of the parties included fossil fuel phase-out targets, according to the report. The report found that parties in their NDCs increased their focus on creating enabling conditions for renewable energy deployment, efficiency improvements and electrification, with around 70pc reporting measures to improve electricity grids. It also showed that 92pc of the parties included methane in their NDCs and, of those, 29pc pointed to renewable energy generation as a key supply-side driver of energy security by replacing imported fuels with domestic energy sources. A total of 94pc of parties mentioned in their NDCs that they plan to use — or may use — voluntary co-operation under Article 6 of the Paris agreement and 81pc referred to the use of internationally transferred mitigation outcomes — when countries exchange emissions savings bilaterally to be counted towards their NDCs. The UN Cop 31 climate summit due to take place in Turkey next month "can help address some of the key gaps highlighted in this year's reports with its focus on practical measures to support greater implementation, UNFCCC executive secretary Simon Stiell said. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.