Efforts grow to use 100pc SAF in aircraft engines

Market: Biofuels
29/03/22

Tests to use 100pc sustainable aviation fuel (SAF) in aircraft engines are growing in a bid to surpass the current blending requirements set out by the American Society for Testing and Materials (ASTM), which only allow up to 50pc of SAF to be blended with fossil jet fuel.

Aircraft manufacturer Airbus has this week performed a first A380 flight powered by 100pc SAF, for which 27t of unblended biojet were provided by TotalEnergies. The SAF was produced in Normandy from waste fats and used cooking oil (UCO). This is the third Airbus aircraft type to fly on 100pc SAF over the last year, the company said.

And today aircraft engine manufacturer Pratt and Whitney entered an initial agreement with Air BP to test the application of SAF blends up to 100pc in its engine testing and research. As part of the agreement, the parties will work collaboratively to explore the viable supply to Pratt and Whitney of SAF blends with up to 100pc SAF for engine and propulsion systems testing through 2024. "As we continue to develop new technologies and feedstocks, some of which may be unique to US availability, it will be very useful for both companies to collaborate on testing and understanding fuel performance and, on working on increasing SAF utilisation in engines up to 100pc," Air BP sustainability director Andreea Moyes said.

Rolls-Royce has already successfully tested 100pc SAF in an engine last year and said that all its Trent aircraft engines will be cleared to run on 100pc biojet by 2023.

And US manufacturer Boeing said its commercial airplanes will be capable and certified to fly on 100pc SAF by 2030, and has successfully tested a plane flying on 100pc SAF.

By Giulia Squadrin

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08/10/26

India readies for global carbon trading ahead of Corsia

Mumbai, 8 October (Argus) — India is preparing to launch compliance trading under its Carbon Credit Trading Scheme (CCTS) and access international carbon markets before the mandatory phase of the International Civil Aviation Organisation's (Icao) Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) begins in 2027. The move could bolster the domestic carbon market and investment in emissions-cutting projects. The CCTS compliance market represents the future of carbon trading in India, SAF Association (Safa) Secretary General Rohit Kumar said at the India SAF Conclave and Awards in New Delhi on 28 September. CCTS carbon prices could reach $10/t of CO2 equivalent (CO2e), offering investors better returns than voluntary markets, where prices are uncapped. The CCTS is India's compliance carbon market, requiring obligated entities in emissions-intensive sectors to meet government-set greenhouse gas intensity targets. Firms that outperform their targets earn carbon credit certificates (CCCs), while those that fall short must acquire certificates to meet compliance obligations. Trading of CCCs is overseen by the Central Electricity Regulatory Commission through approved exchanges. India is expected to participate in Corsia's mandatory second phase from 2027. Under the scheme, airlines can reduce their compliance obligations by using eligible sustainable aviation fuel (SAF) or through Corsia Eligible Emissions Units (CEEUs), which are generated through international green projects, to compensate for the additional carbon emissions. India's proposed 1pc SAF blend in jet fuel alone may not meet future Corsia compliance requirements, industry participants said. CCCs generated under the CCTS could potentially contribute to international aviation compliance only if the underlying credit programme and units satisfy Icao eligibility requirements and receive host-country authorisation. This would require host-country approval, including Letter of Authorisation (LoA) by the government for units to be traded and utilized internationally. The global SAF market could reach $1 trillion by 2050, Kumar said, underscoring the role of carbon markets in attracting investment in high-quality green projects. "As the relevant frameworks develop, Corsia can become an important channel for accelerating India's climate transition and strengthening its participation in international carbon markets," Kumar told Argus separately. Carbon security The government should issue LoAs for projects already aligned with Corsia; otherwise, buyers may have to source credits from international markets, industry participants said. Major economies often buy credits from least developed countries (LDCs), where forestry and agriculture offer largely untapped carbon potential and domestic compliance obligations are limited or absent. European airlines participating in Corsia typically source credits from Icao-approved international carbon crediting programmes. Platforms such as the International Air Transport Association (Iata) Aviation Carbon Exchange (ACE) provide access to crediting programmes including Verra, Gold Standard, American Carbon Registry (ACR) and the Climate Action Reserve (CAR) registry. These programmes issue carbon credits that airlines can buy and retire to comply with Corsia requirements. India does not want to rely on overseas carbon credits. In 2025, it established the National Designated Authority for Implementation of Article 6 of the Paris Agreement (NDAIAPA) to assess, approve and authorise carbon-credit projects aligned with India's Nationally Determined Contributions (NDCs) and international mitigation schemes such as Corsia. But the framework and its implementation remain unclear. Regulatory hurdles India's carbon market can expand internationally if project developers, crediting programmes, investors, airlines and overseas buyers operate under a predictable framework, Safa's Kumar said. The framework should define host-country approval and LoA requirements; eligibility of activities and credits under Article 6.2; authorisation for other international mitigation purposes, including Corsia; first transfers and corresponding adjustments; registry and serial-number tracking; treatment of authorised and non-authorised credits; reporting in India's Biennial Transparency Report; and safeguards against double counting, claiming and use. "India's key advantage is the scale of its mitigation opportunity. Its large energy-intensive industrial base offers substantial potential for energy efficiency, process optimisation, fuel switching, renewable-energy integration and deployment of low-carbon technologies," Kumar added. Under Article 6 of the UN Paris Agreement, a carbon credit cannot count towards both a country's NDC and an international aviation obligation such as Corsia. India therefore needs clear rules to prevent double counting. The government is developing a framework to meet Corsia requirements, support domestic climate goals and build a strong carbon asset base for global markets. By Nikhil Sharma Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Philippines eyes 1pc SAF mandate by 2030

08/10/26

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08/10/26

Philippines eyes 1pc SAF mandate by 2030

Singapore, 8 October (Argus) — The Philippines is considering implementing a 1pc sustainable aviation fuel (SAF) mandate by 2030, although discussions on the proposal are ongoing, government officials said. "The recommendation is to have a 1pc SAF mix or mandate by 2030. This allows enough time before the mandate takes effect to develop local supply over the next three to four years," Philippines Department of Energy (DoE) undersecretary Alessandro Sales told reporters on the sidelines of the ASEAN Energy Business Forum (AEBF) in Manila this week. "If I set up a facility and cannot sell [SAF] because of high prices, why would I do it? The workaround is setting a 1pc or 2pc mandate to guarantee a market. The facility can then be established, and costs will eventually decline to more competitive levels," Sales added. The country currently has no SAF production onstream yet, although project developer SAFAsia will likely reach a financial investment decision on its 20,000 t/yr Fischer-Tropsch plant by year-end, with all four 5,000 t/yr plant modules slated to be online by 2031. Alcom Carbon Markets Philippines is also planning to develop an alcohol-to-jet plant, which is now in the front-end engineering design (FEED) stage and is projected to produce 100,000 t/yr of SAF when operational. The Philippines' potential SAF mandate is currently under discussion with the DoE-chaired National Biofuels Board (NBB), looking at the maturity of local production, readiness of infrastructure and entire SAF ecosystem, NBB's SAF committee chair and strategic planning division chief Sofia Fulmaran told Argus . "We don't want to announce a mandate without preparation. We're also benchmarking best practices from other Asean member states [which have adopted SAF] and seeing how they've coped with certain challenges we might also be experiencing. We want to ensure our partners in the entire SAF supply chain will each have their own piece of the pie," Fulmaran said at the inaugural ASEAN SAF Convergence Forum, held as part of the AEBF. The DoE provides policy leadership, technical direction, and a long-term vision, while the Philippines' Board of Investments (BOI) works with the DoE to translate that vision into investments, industries, jobs, and economic opportunities, said Ceferino Rodolfo, Philippines' department of trade and industry's undersecretary and BOI managing head. The Philippines became a participating member state in the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) in 2018. It also has developed a brief framework for its upcoming SAF mandate, which lays out six areas of action: policy and a regulatory frameworks; ensuring feedstock availability and sustainability; technology, infrastructure and production; human and technical capabilities; market demand and airlines engagement; and investment and funding opportunities. Airline challenges Philippine Airlines (PAL) vice president for corporate affairs Salvador Britanico acknowledged SAF remains the largest lever in enabling PAL to achieve net-zero emissions by 2050 — contributing to 65pc of reductions, while offsets and carbon capture are expected to contribute 19pc, and new aircraft technologies are expected to account for 13pc. But he also said that airlines in the region are "starting at a deficit" when it comes to economics, and there are challenges in ensuring their business is sustainable and profitable. Britanico noted the need to map out near-term decarbonisation targets — over the next five, 10, and 20 years, for instance, adding: "Every stakeholder will have their own agenda, but they'll have to work together for the public to have trust in the systems at play." SAF is not simply an energy issue, but ultimately an opportunity for social development, Ceferino said. "While SAF still carries a premium over conventional jet fuel which affects airlines, producers, investors and governments alike, history teaches us something very important — transformative industries almost always begin this way," he added. "Commercial aviation, semiconductors, solar power were once expensive. Electric vehicles were once considered impractical. They became competitive because people invested in, improved, and scaled them. "The same will be true for SAF. The SAF premium is not a reason to wait; it is a reason to build. And if there is any region positioned to bring that premium down, it is Asean. We have the resources, market, and industrial capabilities. And unlike many regions, we have the opportunity to move forward together." By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US Gulf VLCC freight rates hit record highs

07/10/26

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07/10/26

US Gulf VLCC freight rates hit record highs

New York, 7 October (Argus) — Freight rates for very large crude carriers (VLCCs) loading on the US Gulf coast (USGC) soared to historic highs today as Asia-Pacific buyers continue to scramble to secure barrels to maintain their refined products output. A charterer put a Sinokor-owned VLCC on subjects for a US Gulf coast to Asia-Pacific voyage loading from late November at $81mn lumpsum today, the highest recorded rate on the route since Argus began assessing it in 2017. The deal represented a $17.75mn jump day-over-day for the rate on the route, dwarfing that rate's pre-Iran war high of $22.5mn by over $63mn. That deal was the latest after a run-up in freight rates from steady activity over the course of the day, with another charterer putting the Sea Jade VLCC on subjects for a US Gulf coast-South Korea voyage loading from early November at $77mn. Strong Chinese crude restocking demand, which kicked off in late September, is fueling the rally in crude freight rates globally as Chinese refiners look to supply high refined products demand from throughout Asia-Pacific, with Mideast Gulf flows mostly off line. This wave of demand hit Aframaxes and Suezmaxes first, ballooning rates for these segments to their own all-time highs before sweeping back to the already elevated VLCCs after savings offered by the midsize segments shrunk. Charterers put only three VLCCs on subjects within the spot market for US Gulf coast-loading voyages in the second half of September, compared to the deluge of midsize tanker shipments in that period. Iranian attacks on shipping within the strait of Hormuz are tightening VLCC supply overall by not only creating longer, inefficient alternative voyages but also by trapping VLCCs within the Mideast Gulf itself. At the same time, a "shuttle service" of VLCCs by operators capitalizing on very high freight rates for transiting via the strait of Hormuz to transfer crude onto tankers waiting just outside the waterway has further reduced the size of the global fleet. What were once single VLCC shipments of crude from the Mideast Gulf now involve multiple vessels, with the additional waiting time these ships need to complete transfer operations within a rapidly changing environment creating inefficiencies for every vessel segment engaged in the trade. Meanwhile, some of these inefficiencies are holding up individual VLCCs for a month of extra travel time. A charterer put the DHT Opal VLCC on subjects today for a Yanbu, Saudi Arabia, to South Korea voyage loading from late October at $73.9mn. Notably, this shipment will require the vessel to transit north via the Suez Canal, travel west out of the Mediterranean and around the bottom of Africa to then complete its journey because of the threat of Houthi attacks within the Red Sea on Saudi shipping. The typical voyage via the strait of Bab el-Mandeb would take around 23 days, but this new routing instead requires over 50 days. There are 29 VLCCs actively carrying Saudi crude from either Yanbu or Sidi Kerir, Egypt — the latter port from where Saudia Arabia has been shipping crude for export via the Sumed pipeline to bypass the Suez Canal — into Asia-Pacific via this route to avoid Bab el-Mandeb on 7 October, Vortexa data show. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Q&A: DCC Energy urges support for BioLPG in RED IV

06/10/26

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06/10/26

Q&A: DCC Energy urges support for BioLPG in RED IV

London, 6 October (Argus) — Renewable liquid gases such as bioLPG could play a greater role in decarbonising heating and industry, particularly in sectors where electrification is difficult or costly, but stronger demand signals and long-term policy certainty are needed to support investment and production growth, according to Dublin-based LPG distributor DCC Energy. Argus' Evelina Lungu spoke with Emmanuel Mannooretonil, director of sustainable gas at DCC Energy and a board member of Liquid Gas Europe, about bioLPG supply growth, renewable heating policy and the outlook for renewable liquid gases in Europe. Edited highlights follow. To what extent does the current Renewable Energy Directive (RED) framework support investment in renewable liquid gases, and where are the remaining gaps? RED III sets clear and ambitious targets for renewable energy in transport fuels, which have facilitated significant investment in production over recent years. However its provisions for renewable liquid and gaseous fuels in buildings and industry are framed more as indicative targets for member states. The challenge has been to translate these targets into predictable market signals, ideally at European level, while giving member states sufficient flexibility to deploy the solutions best suited to their national circumstances, including renewable liquid and gaseous fuels. Greater long-term certainty around the role of these fuels would help support investment in large-scale production projects. As well as demand-side policy, supply-side incentives — such as the UK's Revenue Certainty Mechanism being designed for sustainable aviation fuel (SAF) producers — will also be necessary in order to de-risk investment for producers. This is especially true when considering production growth from technologies not yet available at commercial scale. How do you see BioLPG fitting into the EU's broader decarbonisation strategy for heating and industry, particularly alongside the strong policy push towards electrification? We strongly believe that electrification will be a key pathway for decarbonisation of heating, and indeed DCC Energy is rapidly growing its presence in this segment, including through our solar offer for commercial and industrial customers in multiple European markets. However there are LPG market segments, such as heating for buildings off the gas grid and industries requiring high temperature process heat, where electrification may not be the most practical or cost-effective decarbonisation solution. In these cases bioLPG is an alternative to electrification which can be deployed rapidly, with no changes required to existing equipment and distribution infrastructure. It can deliver greenhouse gas reductions of 80pc or more compared to fossil LPG, and recent research by Frontier Economics found that this can come at a Total Cost of Ownership which is comparable to or even better than electrification. In parallel bioLPG, when produced from locally sourced feedstocks, will contribute to reducing Europe's dependence on imported fossil fuels. European policy should therefore not fall into the trap of focusing on electrification alone as it risks making decarbonisation less accessible for many of the millions of households and thousands of businesses in Europe who rely on LPG today for heating, cooking and hot water. Supply is often cited as a constraint for BioLPG — what progress have you seen in scaling production, and how quickly can volumes realistically grow? Currently most bioLPG is produced as a byproduct of hydrotreated vegetable oil (HVO) and SAF production, and so as production of these grows in response to RED III and ReFuelEU Aviation mandates, production of bioLPG will also grow. We however see that, in the absence of firm demand signals for bioLPG, refiners may see stronger incentives to consume bioLPG internally rather than releasing to market, which can limit availability for consumers. Liquid Gas Europe's 2025 analysis finds that supply of renewable liquid gases in Europe could reach between 2mn t and 7mn t by 2040, all derived from locally available feedstocks. These could substitute up to 50pc of current LPG consumption, but reaching these levels is highly dependent on the level of policy support available. Ireland's experience with biomethane policy highlights some of the challenges around EU rules — what lessons should governments take when designing national support schemes? DCC Energy fully supports policy design centred around technology neutrality and equal access for producers of renewable fuels to markets across the EU. However a ‘one size fits all' approach may not be the right solution for all markets, especially those at early stages of development. For example, it is currently uncertain whether biomethane imported into Ireland via the connected UK gas grid will be recognised as counting towards the forthcoming Renewable Heat Obligation (RHO). This means that domestically produced biomethane may be the only eligible substitute for natural gas under the RHO. In this case, the proposed certificate multiplier for domestically produced biomethane would have been a significant factor in the rapid scale up of Ireland's nascent local production to achieve the RHO's objectives. We would urge national governments and the EU to take full account of specific local circumstances in policy design and seek creative and pragmatic solutions which can remove roadblocks to scaling renewable fuels while respecting the principles of technology neutrality and the integrity of the single market. The recently leaked RED IV impact assessment appears to move away from post-2030 heating and cooling sub-targets in favour of technology-specific indicators for heat pumps, geothermal and solar thermal, while a broader heating fuel obligation was discarded. How does DCC Energy view this direction of travel? We see the lack of firm demand signals as the most significant factor holding back investment in and growth of renewable liquid gas production. We recognise that the impact assessment does not necessarily present a final legislative proposal, and believe that there remains a strong case for the commission to revisit the role that renewable liquid and gaseous fuels can play in heating beyond 2030 to complement those technologies named in the leaked impact assessment. Renewable Heating Obligations remain a key part of our recommended approach, whether set at EU level or by national governments — such as are already under development in Ireland and Germany — but we would welcome other measures which create credible demand for renewable liquid and gaseous fuels in applications where electrification is difficult or disproportionately costly. Demand-side measures will also need to be complemented by enabling measures, such as targeted production cost support. Updates to mass-balance and chain-of-custody rules would also be required to recognise the highly decentralised nature of liquid gas supply chains and facilitate the scaling of renewable fuels across the single market — while maintaining robust tracking and certification of sustainability credentials. Providing this combination of long-term demand certainty, national flexibility and robust market rules through RED IV and related policy instruments will be important if Europe is to realise the potential of renewable liquid gases to contribute to its 2040 decarbonisation objectives. Are there specific technologies — such as bioLPG, DME, or waste-to-energy — that you are prioritising with capital allocation, and why? DCC Energy is not an energy producer, but together with SHV Energy we have been collaborating with multiple technology providers and developers to identify production pathways for renewable liquid gases which have the potential to be deployed at scale and made available for long-term offtake by distributors. These might include renewable DME via gasification of biogenic wastes and bioLPG via alcohol-to-fuel processes. We believe that a few different pathways will be required to achieve the industry's growth potential, building on the availability of bioLPG via HVO and SAF production. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Germany weighs maritime GHG loophole closure

05/10/26

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05/10/26

Germany weighs maritime GHG loophole closure

Hamburg, 5 October (Argus) — The German ministry for the environment, climate action, nature conservation and nuclear safety (BMUKN) is examining various options for closing the so-called maritime loophole. The market has already reacted, with German renewable fuel tickets generated through the maritime loophole now being priced at wider discounts, reflecting increased concerns over potential invalidation. The ministry confirmed to Argus that it is assessing relevant options. No draft proposal currently exists, nor is there a timetable for a possible amendment. The ministry also pointed out that the federal government is already empowered to exclude renewable energy carriers used outside land-based transport from counting towards the Greenhouse Gas Reduction Quota (GHG quota). This authority was introduced through the Second Act on the Further Development of GHG quota. The legislator justified the measure on the grounds that "negative effects on the GHG quota market" should be prevented where they arise "from the use of renewable energy products outside land-based transport — for example in maritime transport". The existing regulation gap allows renewable fuel tickets to be generated for road fuels that are ultimately used in maritime transport. Under article 52 of Germany's energy tax law (EnergieStG), the volumes are initially taxed voluntarily as road transport fuel, making them eligible for compliance under the GHG quota system pursuant to the Federal Immission Control Act. The energy tax paid can subsequently be reclaimed once the fuel has been used in the maritime sector, while the generated renewable fuel tickets remain valid. Market participants said the regulation gap can be used with various biofuels, although advanced B100 biodiesel and bio-LNG are currently the most relevant. According to market participants, the regulation gap is being utilised by established companies in the fuel sector and by specialist firms whose business model is based on the marketing of such renewable fuel tickets. Market participants said the prospect of regulatory changes is already affecting the valuation of the corresponding renewable fuel tickets. Renewable fuel tickets for the category Other current compliance year that were generated through this mechanism are now being traded at discounts of around €40/tCO2e. Previously, discounts had been around €20/tCO2e. Market participants attributed the widening discount to recent discussions about a possible closure of the regulation gap by the BMUKN and resulting concerns over the potential invalidation of affected volumes. At the same time, several market participants considered the retrospective invalidation of previously transferred or already submitted renewable fuel tickets unlikely. Instead, uncertainty relates primarily to the future eligibility of such volumes should the regulation gap be closed. Some buyers have also introduced contractual provisions, excluding the transfer of renewable fuel tickets generated through the loophole to avoid potential regulatory risks. By Ricco Schalamon and Marcel Rothenstein Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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