EU imports of Chinese UCO, Ucome at record in August

Spanish Market: Biofuels
18/10/18

The EU imported record levels of used cooking oil (Uco) and biodiesel made from Uco (Ucome) in August, as appetite from European blenders and distributors showed no sign of slowing.

UCO imports were above 50,000t, up from 10,000t a year earlier, and were more than 235,000t in the first eight months of this year — up from just 20,000t in the same period a year earlier and over four times the 56,000t imported in all of 2017, according to customs data (see chart).

The Netherlands took a record 30,000t in August, and Spain took 15,000t. Around 145,000t of UCO arrived in the Netherlands in January-August — before January no cargoes of any scale unloaded there. Spain received 70,000t.

Demand from Spanish producers — 140,000 t/yr Biocom Energia and 100,000 t/yr BioArag — could increase if, as is likely, Spain begins double-counting biodiesel made from waste oils against state mandates in the first quarter of 2019.

Volumes of UCO needed in Spain could jump next year — the 85,000 t/yr Linares Biodiesel facility in the south of the country has begun production of Ucome, after several years idle. Spain's dominant palm oil biodiesel (PME) producer, the 1.1mn t/yr Musim Mas, is considering converting its 200,000 t/yr plant at Cartagena to run waste oils and fats in 2019.

Some concerns from traders and brokers over variable levels of sulphur and nitrogen in Chinese imports do not appear to be dampening demand.

The highest level of Chinese Ucome cargoes yet recorded arrived in the EU in August. Close to 40,000t was delivered, all to the Netherlands, up from 15,000t in July and just ahead of the previous record in May.

Chinese Ucome export volumes to the EU have been erratic this year. Larger cargoes were moved in February, May and August, but only 300t in April. Volumes were up by 52pc year on year, at 170,000t, in the first eight months of the year.

Many factors are influencing the amount of Chinese exports to Europe. Volumes are highly dependent on freight costs and seasonal conditions. Shipments of biodiesel from Argentina, made from soya oil (SME), have washed across Europe this year, cutting some demand for Chinese Ucome. Large quantities of PME have arrived in the EU from Indonesia. While Europe remains well supplied with biodiesel, demand for Chinese Ucome will fluctuate. There have also been some concerns from European customers over free fatty-acid levels in Chinese Ucome rising above EU standards.

China also has a growing internal market for biodiesel. Domestic producers could be encouraged to save supply to sate internal demand if forward prices decline in the Amsterdam-Rotterdam-Antwerp (ARA) region.

Chinese UCO and Ucome exports to EU '000t

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26/03/25

UK eyes 80pc maritime emissions cuts by 2040

London, 26 March (Argus) — The UK is aiming to reduce fuel lifecycle greenhouse gas (GHG) emissions in its domestic shipping by 30pc by 2030 and 80pc by 2040 compared with 2008 levels, reaching zero by 2050. The goals are "intentionally ambitious", the UK government said, and will be supported by both domestic and international policy measures as set out in its new maritime decarbonisation strategy. The first phase of the strategy "will rely on existing IMO regulation" to improve vessel efficiency this decade, the government said. The second phase will centre on larger vessels. One key policy in the strategy is pricing maritime emissions, which the government expects to do through a combination of pushing for the IMO to introduce a global shipping GHG levy from 2027, and the government's existing plan to extend the UK emissions trading scheme (ETS) to domestic maritime emissions from next year. The government will "work to understand how these schemes interact, and to avoid any double charging of emissions", it said. It is still to consider the feedback to its recent consultation on technical elements of the sector's inclusion in the UK ETS, it added. The government also intends to regulate maritime fuel use, both by pushing for IMO-level standards this year on the GHG intensity of fuels, and implementing domestic UK fuel regulations on which it plans to consult in 2026. Calls for evidence were also published alongside the strategy on both potential requirements for zero or near-zero at-berth emissions, with a formal consultation on this planned next year, and on measures to support the decarbonisation of small vessels and targeted maritime sub-sectors. For the latter, the government expects to focus on vessels "with a clear route to decarbonisation". "Measures for harder-to-decarbonise vessels may not be required until the mid-to-late 2030s," it said. Maritime emissions accounted for 8pc of the UK's transport emissions in 2022, despite having declined by 30pc compared with 1990 levels, government data show. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Lula visits Japan to talk ethanol, Cop 30, beef

25/03/25

Lula visits Japan to talk ethanol, Cop 30, beef

Sao Paulo, 25 March (Argus) — Brazilian president Luiz Inacio Lula da Silva traveled to Japan on Tuesday in search of energy transition agreements and new market opportunities to improve trade relations between the countries. Bilateral Japan-Brazil trade fell to around $11bn in 2024, down from $17bn in 2011, the Brazilian government said. Brazil exported $730mn in goods to Japan in January-February, while importing $995mn from the Asian country in the period, according to Brazil trade ministry data. Exports dropped by almost 13.5pc from a year before in the two-month period, while imports grew by nearly 25pc. "Firstly, we have [a shortfall] to turn around," Lula said. Brazil will also ask Japan to join its growth acceleration plan . He is accompanied by 11 ministers and four members of congress, including senate president Davi Alcolumbre and lower house president Hugo Motta. Ethanol market Brazil aims to sell more ethanol to Japan, as the Asian country expects to increase its ethanol blend to 10pc from 3pc by 2030. "If Japan blends 10pc of ethanol into gasoline, it will be an extraordinary step not only for us to export to them but for them to be able to produce in Brazil," Lula said. Japan received 3.4pc of Brazil's ethanol exports in 2024, according to Brazil's development and trade ministry. Cop 30 and energy transition Lula's visit also seeks to attract investment in renewable energy, forest revamps and new donations to the Amazon Fund, as well as a "strong commitment" from Japan at the Cop 30 summit, to be held in Brazil later this year. Brazil aims to export clean fuels to generate power to Japan, as power imports account for more than 80pc of all Japanese power demand and "a large share of it comes from fossil sources," according to the Brazilian foreign relations ministry's Asia and Pacific secretary Eduardo Saboia. Brazilian and Japanese companies announced earlier this year plans to produce biomethane in Brazil . The renewable fuel would supply both countries. Brazil and Japan should also sign a deal to help recover the Cerrado biome, which is the second largest biome in Brazil and the second most endangered. It comprises of savanah grasslands and forest and makes up about 25pc of the nation's territory. The Cerrado lost 9.7mn hectares to wildfires in 2024, up by almost 92pc from 2023, according to environmental network MapBiomas' fire monitor researching program. Deforestation is one of Brazil's flagship issues for Cop 30 this year. The country has been pushing for forest protection and recovery initiatives as most of Brazil's past Cop pledges cannot be met with only its remaining forests. Japan and Brazil should talk about the Amazon Fund as well because Brazil "wants more", Saboia said. Japan was the first Asian country to donate to the fund with $14mn, which Saboia said was "too little." Where's the beef? Lula is also targeting opening Japan's beef market to Brazilian exports, as the Asian country imports over 70pc of all its beef. Lula met with members of the beef exporters association Abiec in his first day in Japan to discuss the matter. The bulk of Japan's beef imports — 80pc — come from the US, the Brazilian government said. Brazil does not currently export beef to Japan. "Brazil has the logistic capacity to increase exports and double beef exports every four years," transport ministry Renan Filho said. Brazil has been trying to enter Japan's beef market for over two decades. This time, Lula expects to achieve a technical visit from Japan to inspect Brazil's beef producing conditions as a first step toward accessing the Japanese market. Lula will depart to Vietnam on 28 March to debate a plan to turn the country into one of Brazil's strategic partners. Only Indonesia is considered a Brazil strategic partner in southeast Asia. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US venue case crucial for future clean air fights

24/03/25

US venue case crucial for future clean air fights

New York, 24 March (Argus) — The US Supreme Court on Tuesday will hear arguments about the proper court venue for Clean Air Act lawsuits, which could be pivotal for future enforcement of federal air pollution rules. The court is considering both a case involving the Environmental Protection Agency's (EPA) rejections of small refiners' requests for hardship exemptions from a biofuel blend mandate and the agency's separate denials of state plans for addressing ozone-forming NOx emissions. Judges are not expected to decide the legality of EPA's decisions, just the proper courts for settling the disputes. But the cases are still significant: legal uncertainty to date has affected both EPA programs implicated by the Supreme Court's review and could upend enforcement of future rules if the court does not provide sufficient clarity. Federal ozone season NOx allowance prices essentially flatlined last year as participants were hesitant to trade due to risks from so many court cases. 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For instance, both the DC Circuit and the conservative-leaning 5th Circuit agreed that EPA erred when it denied some refiners exemptions from biofuel blend mandates — but they said so for slightly distinct reasons. The 5th Circuit, for instance, went further by saying refiners reasonably relied on past EPA practice and thus the agency incorporating new analysis into its review of waiver requests was unfair. As a result, EPA recently used different criteria when weighing a waiver request from one refiner in the 5th Circuit's jurisdiction than it used for another refiner, according to partially redacted decisions obtained by Argus through a Freedom of Information Act request. The agency said it could not consider at all whether CVR Energy's 75,000 b/d refinery in Wynnewood, Oklahoma, is able to pass on the costs of program compliance to consumers because of the 5th Circuit decision but could weigh such information when deciding a similar petition from Calumet's 15,000 b/d refinery in Great Falls, Montana. The agency issued those decisions in the waning days of former-president Joe Biden's term. While President Donald Trump has pledged a vastly different approach to environmental regulation, his administration for now has not signaled a different stance than the Biden administration on whether these types of disputes should proceed before the DC Circuit. Schrodinger's case It is still unclear whether the judges view the cases as a tricky technical dispute or part of a broader trend of federal agencies overstepping their authority. Tuesday's hearing could provide clues. Of the court's nine justices, four previously served on the DC Circuit and could see value in sending more complex regulatory cases to the expert court, Bunger said. But the court's conservative majority could also be wary of giving EPA too much authority to set venue. Refiners argue that the agency repackaged dozens of individual exemption denials into two larger regulatory actions as a strategy to get the cases before a friendlier court. The Supreme Court has looked skeptically at other EPA rulings and last year overturned a decades-old legal principle that gave agencies leeway when interpreting ambiguous laws. Final Supreme Court decisions usually arrive by late June. However the court rules, businesses say that it should provide a clear enough explanation to prevent similar venue disputes from reemerging. The US Chamber of Commerce told the court it takes no position beyond urging the court to "adopt an interpretation that provides clarity and predictability to all stakeholders." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Estonian climate ministry to push for EU ETS 2 repeal

24/03/25

Estonian climate ministry to push for EU ETS 2 repeal

London, 24 March (Argus) — Estonia's parliament has granted the country's climate ministry a mandate to push for the repeal or postponement of the EU's second emissions trading system (ETS 2) covering road transport and buildings, scheduled to launch in 2027. The Estonian parliament's EU affairs committee granted the ministry a mandate to begin consultations with the European Commission and EU member states on repealing the EU ETS 2 directive, because of the administrative burden and uncertainty posed by transposing the measure. If Estonia fails to garner sufficient support, it will join existing proposals by the Czech Republic and Poland to postpone the introduction of the new system for two years. This additional time could be used to find a way to limit the burden of imposing the measure, the committee said. These proposals would require a qualified majority of EU member states to pass. If not adopted, Estonia's climate ministry would instead start negotiations to postpone the launch of the system to 2028 or exclude road transport from its scope. The committee approved the mandate — which followed positions submitted by the government and subsequent amendments and opinions by the parliament's environment and economic affairs committees — "after a long and heated political debate", its chairman Peeter Tali said. The commission last year adopted a supply cap of 1.036bn carbon allowances in 2027 for the new system, which will cover upstream emissions from fuel combustion in buildings, road transport and small industry not covered by the existing EU ETS. For the first three years of operation, the system will have a price cap of €45/t of CO2 equivalent, adjusted for inflation, which if surpassed for a period of two months would trigger the release of 20mn allowances from its market stability reserve. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Airliner Virgin Australia to trial SAF blend

21/03/25

Airliner Virgin Australia to trial SAF blend

Sydney, 21 March (Argus) — Airliner Virgin Australia-operated flights from Australia'sWhitsunday Coast airport will use a sustainable aviation fuel (SAF) blend under a joint trial between the carrier and Australian refiner Viva Energy. Virgin's jet aircraft will use a 30-40pc SAF blend between March and July. The aircraft travel to domestic airports from Proserpine town, a key tourism hub near Queensland state's Whitsunday coast. Both firms did not disclose further details, such as the total volume of SAF, at the time of publication. "Partnership, focused policy development, and collaborations such as this with Viva will be essential if we are to adopt successfully SAF's broader use in Australia over the years and decades ahead," said Virgin's chief corporate affairs and sustainability officer Christian Bennett on 20 March. Privately-held Virgin last September trialled SAF in its fleet of Boeing 737 aircraft, buying 160,000 litres from Indonesian state-owned refiner Pertamina for flights leaving the Indonesian island of Bali. Unlike rival carrier Qantas, which has a target for 10pc SAF by 2030, Virgin has yet to specify a goal for its SAF use. But it has plans to re-enter the long-haul market from mid-year, using wet-leased aircraft from state-owned Qatar Airways, giving it access to airports with greater SAF supply. Viva, the operator of Australia's largest refinery the 120,000 b/d Geelong facility, last month received A$2.4mn ($1.5mn) in state funding to recondition a fuel tank servicing Brisbane airport, to allow for blended SAF supply to jet aircraft. Australia is yet to host any SAF refining capacity, but Canberra this month pledged A$250mn of its A$1.7bn Future Made in Australia innovation fund to low-carbon liquid fuels research and development, after its Labor government earlier promised A$33.5mn for a variety of projects to progress SAF development. Australia ships about 500,000 t/yr of tallow worth about $500mn, a key feedstock for production of HVO and SAF. But uncertainty about the future of tax credits for biofuels in the US under president Donald Trump has seen prices pull back from recent highs. By Tom Major Australian tallow price ($/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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