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Argentina mulls biofuels blend cuts, producers cry foul

  • Market: Biofuels, Oil products
  • 10/05/21

Argentina extended a biofuels law for two months in the face of congressional opposition to a bill that would allow the government to reduce blending mandates.

The extension of the 2006 law that enshrines a 12pc ethanol blend and 10pc for biodiesel was set to expire on 12 May.

The law will now remain valid until 12 July or "until a new ‘biofuels regulatory framework' comes into effect, whichever comes first," according to a decree published today.

Congressional allies of President Alberto Fernandez are pushing for new legislation that would provide flexibility on biodiesel and ethanol blending. Under the current bill, which would give priority to small and medium-sized producers, the biodiesel mandate would decrease to 5pc. The energy secretariat would have the flexibility to increase the mandate or reduce it to as low as 3pc depending on market conditions. The ethanol mandate would remain at 12pc but with a division of 6pc for ethanol from sugar cane and 6pc from corn. The latter could be reduced by three percentage points by the energy secretariat.

Government officials had previously said ethanol made from sugar deserved preferential treatment because, unlike corn, it does not have an export market.

Critics from the biofuels industry say the proposal is an indirect way for the government to control politically sensitive retail fuel prices by targeting biodiesel and ethanol.

Argentina's ethanol production declined by 13pc in the first two months of 2021, on the year, to 128,125m3, while biodiesel production plunged by 35pc to 192,485t in the same period, according to energy secretariat data.


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18/09/24

Citgo auction result delayed amid last-minute motions

Citgo auction result delayed amid last-minute motions

Houston, 18 September (Argus) — The US court-appointed special master overseeing the auction of US refiner Citgo plans to object to a last-minute motion from the Venezuelan government to delay the sale process by four months. The Republic of Venezuela and state-owned oil company PdV filed a motion on Tuesday seeking a four-month pause in the sale of its refining subsidiary Citgo, which is being auctioned off to satisfy debts owed by PdV. Special master Robert Pincus said in a court filing today that he intends to object to Venezuela's motion for a pause. The last-minute motion from Venezuela comes days after the US District Court for the District of Delaware was expected to announce results of the winning bidder. The court asked for a second extension to the auction process in August, delaying announcing a successful bidder to on or about 16 September with a sale hearing on 7 November. But Pincus is now dealing with last-minute legal challenges filed last week outside of the Delaware courts by so-called "alter ego" claimants seeking to "circumvent" the Delaware court's sales process and "jump the line" for enforcing claims against PdV, the special master said in a filing last week. Bidders for Citgo's 804,000 b/d of refining capacity, terminals, retail fuel stations and other plants expect the assets to be sold free and clear of future claims by PdV creditors. Unresolved legal liabilities could lower the value bidders are willing to pay for Citgo, decreasing the pool of money available to those owed by PdV. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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EPA already at work on 2026-forward RFS rules


17/09/24
News
17/09/24

EPA already at work on 2026-forward RFS rules

Monterey, 17 September (Argus) — The Environmental Protection Agency (EPA) has started work on the second set of rules for the Renewable Fuel Standard (RFS), expected to span multiple years beginning in 2026, a spokesperson said today. The rule will likely establish renewable volume targets for multiple years under the RFS, although the exact timeframe has not been confirmed, EPA deputy office director Ben Hengst said today at the Argus North American Biofuels, LCFS and Carbon Summit in Monterey, California. Work on the incoming rule was originally not expected to begin until early 2025. Updated analysis, especially regarding advanced biofuels and feedstocks, will inform new rulemaking, as well as the inclusion of regulatory changes intended to improve the program's implementation, Hengst said. Unprecedented growth in US biofuels imports led overall advanced biofuel supply in 2023 to far surpass EPA projections. But biomass-based diesel volumes for the current rules were based on projected growth in North American feedstock supply — not international availability nor the nameplate capacities of US refineries, Hengst said. There were also large increases in imported feedstocks for biofuel production, namely in used cooking oil and tallow. But the potential for an upset in global trade flows remains an agency concern. Domestic policy in some countries could boost offshore consumption of feedstocks and finished fuels that have arrived to the US market in recent years, while the US policy environment itself remains vulnerable to change. The EPA is also navigating recent adverse judgments against its interpretation of the Small Refinery Exemption program and is prioritizing the development of options that would comply with court orders. There was no clarity provided on eRINs as the EPA continues to consider its options. By Jasmine Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US regulatory clarity vital to sustain biofuels growth


17/09/24
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17/09/24

US regulatory clarity vital to sustain biofuels growth

Monterey, 17 September (Argus) — Clarity from both US state and federal regulators regarding the rules and incentives for biofuels production is essential to ensure continued growth to achieve underlying carbon-reduction targets, industry stakeholders said today. A lack of guidance for incentive programs and qualifications for 2025 and beyond is already hindering trade and investment in key US biofuels markets, panelists said today at the Argus North American Biofuels, LCFS and Carbon Summit in Monterey, California. The current biodiesel tax credit (BTC) is scheduled to give way to the Inflation Reduction Act's Clean Fuels Production Credit (CFPC) in January, while narrowed proposed targets and credit qualifications in state Low Carbon Fuel Standard (LCFS) programs has effectively left key portions of the biofuels market in a holding pattern. Alignment and certainty between regulatory bodies on what will be incentivized and credited in the future will be an essential component of business and investment decisions in the industry, necessary to reach ambitious carbon-reduction targets within the next decade. "The fact that we don't have clarity mid-September for a tax credit going into effect on 1 January, is really hard to believe," said Kurt Kovarik, vice president of federal affairs for Clean Fuels Alliance America. "No one knows the rules of the road with respect to 45Z." Panelists echoed opposition to proposed California caps on crop-based renewable feedstocks that discussed on Monday at the conference during sustainable aviation fuel (SAF) discussions. "If the goal is to remove carbon, the extent to which we can base it on science and not pick winners and losers is in everyone's interests," Kovarik said. "All you're going to end up doing is limiting the driving out of carbon." But speakers today further warned of the potential for a duplication of efforts by parties trying to satisfy both state LCFS programs and the federal Renewable Fuel Standard program. Proposed requirements may also require an unprecedented level of collaboration between segments of the US renewables supply chain. Those requirements could be more disruptive than the feedstock cap itself and potentially have the greatest limiting effect on fuel supply into California, said Don Gilstrap, Chevron's manager of fuels regulations. With that goal in mind, declining carbon intensity targets are already providing the necessary incentive for producers to pivot away from crop-based renewable feedstocks, Gilstrap said. But panelists were optimistic about rising interest in replicating LCFS-style focuses on carbon intensity — an approach they theorized would "unleash innovation" across both the finished fuels and feedstocks segments of the industry. By Jasmine Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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USCG updates ongoing lower Mississippi restrictions


17/09/24
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17/09/24

USCG updates ongoing lower Mississippi restrictions

Houston, 17 September (Argus) — The US Coast Guard (USCG) will further limit northbound movement for barges transiting the lower Mississippi River despite slightly higher water levels following Hurricane Francine's landfall late last week. The USCG announced on 16 September that all northbound traffic traveling from Tunica, Mississippi, to Tiptonville, Tennessee, can only have five barges wide and only four of those can be loaded. Barges also cannot be loaded deeper than 9.5ft. Any southbound traffic from Vicksburg, Mississippi, to Tunica cannot move more than seven barges wide or be drafted deeper than 10.5ft. Southbound traffic from Tiptonville to Tunica can only be six barges wide or less and cannot have a draft greater than 10ft. The USCG has updated lower Mississippi river draft restrictions about four times since the end of August, but this is the third year in a row of notable low water for the fall on the lower Mississippi river which has triggered draft restrictions to arrive more quickly than previous years. Hurricane Francine brought significant rainfall to the lower Mississippi at the end of last week . But this has not eased the minds of mariners, who anticipate the water may leave as quickly as it arrived. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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California regulator floats future LCFS linkage


17/09/24
News
17/09/24

California regulator floats future LCFS linkage

Monterey, 17 September (Argus) — California would welcome bringing US low-carbon fuel standard (LCFS) programs together in a common market, one of the state's top regulators said on Tuesday. Such a linkage is unlikely to occur in the near future, but California Air Resources Board (CARB) deputy executive director Rajinder Sahota said it is something worth pursuing. "I totally think we should link our LCFS programs," she said at the Argus North American Biofuels, LCFS and Carbon Markets Summit in Monterey, California. Sahota said California and other LCFS states are working on a system that could allow the trading of compliance credits between companies covered by each program, but did not provide any other details. Her comments mark a change in tenor from CARB, which historically has said a linkage would be difficult given the differing starting points and carbon intensity targets of each program. Oregon's Clean Fuels Program (CFP) started five years after California's LCFS, while Washington launched its Clean Fuel Standard just last year. New Mexico is working on its own program that will begin by 2026. Oregon and Washington regulators at the conference said there have not been any formal discussions about a linkage, but did not completely dismiss the idea, highlighting the close informal coordination between the states. "All puzzles can be solved eventually," said Bill Peters, interim director of the CFP. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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