New York LCFS supporters look to next year

  • Market: Biofuels, Emissions, Oil products
  • 11/06/21

New York will pursue its greenhouse gas reduction goals without adopting incentives for low-carbon fuels for another year.

The state's legislative session closed yesterday without a vote on a proposal to establish a low-carbon fuel standard (LCFS) to reduce the carbon intensity of the state's road fuels, leaving supporters to look to next year to try again.

Bill sponsor New York assemblywoman Carrie Woerner (D) said she plans to build more support for a state LCFS throughout the rest of the year and to bring the legislation back in January.

"I continue to think this is the right thing to do," Woerner told Argus. "It is not the only thing we should do, but it is an important tool."

New York in 2019 enacted a mandate to reduce greenhouse gas (GHG) emissions by 40pc by 2030 and by 85pc by 2050, relative to 1990 levels. States along the US west coast have buttressed similar goals by creating incentives for renewable fuels and penalties for petroleum-based fuels under LCFS programs.

Nearly identical bills in the New York Assembly and Senate proposed a 20pc reduction in transportation fuel carbon intensity by 2030. Both measures stalled in environmental committees in early March.

Woerner said she continued to press state legislative leadership on the proposal in the final hours of the session. Her bill gathered 73 co-sponsors over the course of the session.

Not far enough

But proponents must win over groups concerned that LCFS programs do not go far enough. Some environmental groups consider the programs half measures accepting continued petroleum fuel combustion rather than setting a firmer mandate to switch to zero-emissions vehicles.

The critique surprised Graham Noyes, executive director of the California-based Low Carbon Fuels Coalition, which supported the New York campaign. Biofuels producers and electric car manufacturers both supported this year's proposal.

California has set aggressive electrification targets and reduced petroleum use through its 10-year-old LCFS program.

"California is the only US state rapidly transitioning off of fossil fuels, mainly driven by the LCFS but also enabled by other programs," Noyes said.

New York needs an LCFS that recognizes the years of life remaining in internal combustion vehicles on the road today while reducing their emissions, Woerner said.

"We would all like to wave a magic wand and get to electrification tomorrow, but that is not practical," she said. "We need to do something that has immediate climate and public health benefits while we work towards the goal that we all have, which is full electrification."

Second session without passage

This was the second consecutive year New York lawmakers considered but did not advance LCFS legislation. Lawmakers set aside consideration last year to focus on an urgent response to the Covid-19 pandemic.

Separately, a group tasked with developing policy recommendations for reaching the state's GHG goals is considering backing an LCFS as well as joining a regional cap-and-trade program to reduce transportation sector CO2 emissions. That group, the New York Climate Action Council, is expected to release its draft plan in the autumn.

Western states have also taken multiple legislative sessions to craft LCFS programs. Washington state discussed their program in two sessions before passing legislation advancing their LCFS program this year.

"These things do not necessarily happen overnight," Woerner said.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
17/04/24

Exxon German refinery sale in limbo after court ruling

Exxon German refinery sale in limbo after court ruling

Hamburg, 17 April (Argus) — ExxonMobil's plan to sell its share in German refining joint venture Miro has been delayed by a court order following a petition by fellow Miro shareholder Shell. ExxonMobil agreed to sell its 25pc stake in Miro , operator of the 310,000 b/d Karlsruhe refinery, to Vienna-based Alcmene in October last year. The two sides were aiming to close the deal in the first quarter of this year, but in a letter seen by Argus last month, ExxonMobil said completion had been pushed back to the summer because some of the administrative procedures had yet to be finalised. Argus has since learned that a regional court in Karlsruhe issued an interim order against the sale on 18 January at Shell's request. Shell originally petitioned a court in Hamburg on 20 November, but the case was later moved to Karlsruhe, according to a court spokesperson. The judgement prohibits ExxonMobil from splitting off or transferring its Miro shares. The firm has already appealed against the judgement to a higher court in the region. A decision is pending. Exonmobil's partners in Miro are Shell with a 32.25pc stake, Russia's Rosneft with 24pc and US firm Phillips 66 with 18.75pc. Rosneft's German refinery assets have been under state trusteeship since September 2022. By Natalie Mueller Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read more
News

Nigeria's Dangote diesel offers cut local prices


17/04/24
News
17/04/24

Nigeria's Dangote diesel offers cut local prices

London, 17 April (Argus) — Nigeria's 650,000 b/d Dangote refinery has offered road diesel at the lowest price since it began distillate sales earlier this month, and market participants said this is likely to weigh heavily on local values and import markets. The refinery dropped prices for diesel, known in Nigeria as automotive gasoil (AGO), to 1,000 naira/litre (87¢/l) for a minimum of 1mn l, and offered a discount of N30/l for offtake of 5mn l and above, it said. The price changes took effect today. The N1,000/l offer equates to around $950/t for product that market participants say contains 700ppm sulphur. The move by Dangote was labelled as "very aggressive pricing" by a trader, while other sources said it "crashed the market". Local marketing companies were offering AGO at as low as N1,140/l ex-depot by the close on 16 April, according to a source, while Dangote was offering at N1,210/l. Dangote began offering AGO at around N1,200/l three weeks ago, which was a 30pc reduction from the then market levels of around N1,600/l, the company said today. The Major Energies Marketers Association of Nigeria (MEMAN) assessed ex-depot prices at the Apapa Hub in Lagos at N1,396/l on 29 February. Output from Dangote is altering Nigeria's import structures, with local high sulphur gasoil buyers captive to the refinery's supply. The refinery operator has secured an exemption from Nigeria's 200ppm sulphur product import cap , allowing it to supply its 700ppm sulphur product locally. The high sulphur gasoil offshore Lome ship to ship (STS) market was described by a market participant today as "almost dead". No bid or offer levels for 10,000-20,000t STS transfers were reported today. The most competitive offer was at a premium of $25/t against Ice May gasoil futures, for loading between the last week of April and the first week of May. Dangote refinery began selling diesel and jet to the domestic market earlier this month . A spokesman told Argus then that Nigerian product marketing companies began loading diesel and jet from the refinery onto 30t trucks and minimum 22,000t tankers. Around 70-80pc of truck loadings from the refinery are destined for areas of the country outside Lagos, according to a market participant. Dangote said today it had loaded diesel onto the 35,000 dwt tanker Golden Lavender, which appeared to make the first domestic seaborne delivery of Dangote-origin diesel and jet since the refinery started middle-distillate production, discharging on 10 April at Tincan Island, Lagos, according to Kpler. Dangote's jet output may not yet be fit for use in aviation, according to a source who said it may currently be used as dual-purpose kerosine for power and heat generation. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

EPS to register six ammonia-powered newbuilds with SRS


17/04/24
News
17/04/24

EPS to register six ammonia-powered newbuilds with SRS

London, 17 April (Argus) — Shipping firm Eastern Pacific Shipping (EPS) will register six dual-fuel ammonia powered vessels, due to be delivered from 2026, with the Singapore Registry of Ships (SRS). The commitment is part of an initial agreement with Singapore's Maritime and Port Authority (MPA), vessel classification organisation American Bureau of Shipping (ABS) and Lloyd's Register. EPS said the collaboration with the MPA will extend to supporting crew and seafarer training on the vessels powered by "zero and near-zero emission fuels", in addition to pilot trials of these fuels, and building on the capacity and infrastructure required for ammonia bunkering. Argus assessed the price of green ammonia dob east Asia on a very-low sulphur fuel oil energy density equivalent (VLSFOe) at $2,608.90/t in March, a premium of over $1,975.08/t against VLSFO dob Singapore. Grey ammonia in east Asia was assessed at an average of $829.52/t VLSFOe across March, a premium of $195.70/t to VLSFO dob Singapore. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Singapore's MPA, IEA unite on maritime decarbonisation


17/04/24
News
17/04/24

Singapore's MPA, IEA unite on maritime decarbonisation

Singapore, 17 April (Argus) — The Maritime and Port Authority of Singapore (MPA) and the IEA have signed an initial deal to push the transition to zero and near zero emission fuels, while working on technology as well as digitalisation to meet the maritime decarbonisation agenda. The agreement, signed by MPA chief executive Teo Eng Dih and IEA executive director Faith Birol, was announced at the Singapore Maritime Week 2024 (SMW) this week. "Greater international collaboration in maritime and energy industries is critical for international shipping to meet international decarbonisation goals," Teo said. "Shipping is one of the hardest sectors to decarbonise and we need to spur development and deployment of new technologies to slow and then reverse the rise in its emissions," said IEA chief economist Tim Gould. "This will require strong collaboration at a national and international level." Training programmes will be built to support the adoption of new fuels. There will also be partnerships made towards fuel-related projects and initiatives such as the International Maritime Organisation-Singapore NextGen project. The IEA plans to open its first regional co-operation centre in Singapore, which will be its first regional office outside of its headquarters in Paris, France. By Mahua Chakravarty Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Japan’s Idemitsu builds stake in refiner Fuji Oil


17/04/24
News
17/04/24

Japan’s Idemitsu builds stake in refiner Fuji Oil

Tokyo, 17 April (Argus) — Idemitsu has agreed to buy an additional stake in fellow Japanese refiner Fuji Oil from domestic power producer Jera, adding to their existing partnership. Idemitsu on 16 April said it will buy Jera's entire 8.75pc share of Fuji, raising its stake to 21.79pc, for ¥2.5bn ($16.2mn). It is unclear when the companies will complete the deal. Jera declined to disclose the reasons for selling its stake. Idemitsu in March also bought domestic petrochemical producer Sumitomo Chemical's stake in Fuji to boost its share to 13.04pc from 6.58pc, becoming its main shareholder. It aims to further optimise fuel oil production and sales including refinery operations, while promoting decarbonisaton of its businesses. Idemitsu is enhancing its partnership with Fuji in the face of shrinking domestic oil and petrochemical demand and growing consumption in overseas, especially in southeast Asia. Idemitsu owns the 190,000 b/d Chiba refinery in the Keiyo industrial complex in east Japan's Chiba prefecture where Fuji operates the 143,000 b/d Sodegaura refinery. Their refineries are connected to Sumitomo Chemical's Chiba plant. Idemitsu's refineries also include the 150,000 b/d Hokkaido in the northernmost prefecture of Hokkaido, the 160,000 b/d Aichi in Aichi prefecture in central Japan and the 255,000 b/d Yokkaichi in Mie prefecture in the country's west. Idemitsu's subsidiary Toa Oil operates the 70,000 b/d Kawasaki refinery in east Japan's Kanagawa prefecture. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more