Indonesia pushes ahead with biodiesel programme

Spanish Market: Biofuels
08/07/20

Indonesian president Joko Widodo is in support of higher biodiesel mandates to meet long-term climate goals, despite recent issues such as funding.

Indonesia has committed to reducing greenhouse gas emissions by 29pc by 2030 in a business-as-usual scenario, rising to 41pc conditional on international cooperation under the United Nations Framework Convention on Climate Change.

Jakarta increased the national biodiesel blending mandate to 30pc (B30) from 1 January, up from 20pc last year, but low crude prices and stalled demand because of Covid-19 lockdowns meant the country had to adjust its formula pricing and funding structure to keep the programme going.

A planned further rise to B40 next year has also been postponed but Widodo is keen to push ahead with B50 and B100 in the long term.

State-controlled refiner Pertamina has implemented plans to produce B100 diesel from crude palm oil. It will start producing 3,000 b/d (129,000 t/yr) of B100 at its 348,000 b/d Cilacap refinery from June next year, aiming to double that output by 2022. It is also targeting production of 20,000 b/d at its 118,000 b/d Plaju refinery by 2023.

By Amandeep Parmar

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22/01/25

HVO output supports rising Spanish UCO, Pome imports

Barcelona, 22 January (Argus) — Spanish imports of palm oil mill effluent (Pome) and used cooking oil (UCO) rose on the year in November, supported by EU tariffs on Chinese biodiesel (Ucome) and increased domestic production of hydrotreated vegetable oil (HVO). According to customs data Spain imported 720,000t of UCO in January-November, higher by 50pc on the year. Imports in November were over 55,000t, down from 90,000t on the month but up by 24pc compared with November 2023. UCO imports have been supported as domestic producers reported good margins in October-November, but also as EU tariffs have sharply cut imports of Chinese Ucome. In addition a rising volume of UCO cargoes have been headed to Cartagena, where integrated oil firm Repsol started up a 250,000 t/yr HVO unit in the first half of 2024. The Spanish customs office issues more detailed data around a month after its import-export figures. This shows 125,000t of UCO unloaded at Cartagena in January-October, up sharply from 35,000t a year earlier. According to Kpler data cargoes of UCO have continued to arrive from China and Malaysia this year at a good pace. This includes at least 15,000t delivered to Cartagena, 25,000t delivered to Huelva and 35,000t to Ferrol, where biodiesel producer Musim Mas has a 300,000 t/yr unit. Spain's Pome imports under the CN code 15220099 are also up, by 17pc on the year to nearly 280,000t in January-November. Imports were particularly strong in February-August, weakening slightly after that. November imports of 20,000t were up from 15,000t on the month, but down by 24pc on the year. Most of these imports head to Huelva's Decal terminal, for domestic distribution. Imports of palm fatty acid distillates (Pfad) were 140,000t, up by 2.9pc on the year, but imports of palm oil are now particularly low. Industrial palm oil imports were 1,500t in November, down from 40,000t on the year and a multi-year low (see chart) . Imports of industrial palm oil were 295,000t in the first 11 months of last year, under half the 660,000t in January-November 2023. By Adam Porter Spain biofuels feedstock imports 000t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Major NOLA terminals closed for winter storm

21/01/25

Major NOLA terminals closed for winter storm

Houston, 21 January (Argus) — The port of New Orleans remains closed on Tuesday afternoon due to US Gulf coast snow storms, causing terminals to shut or declare force majeures. Port officials cut off water supplies to port facilities beginning 19 January because of freezing temperatures, significant snowfall and high winds forecast by the National Weather Service (NWS). Operations are expected to be down at least for the rest of today. Host's United Bulk Terminal location at Nola declared force majeure on 20 January because of an expected 3-6 inches of snowfall. The port of Lake Charles in Louisiana also closed on 20 January and the Sabine-Neches Waterway on the Texas-Louisiana border was closed on 21 January. Associated Terminals at Nola closed its doors early on 21 January due to the storm. The company said vessels will be discharged once weather conditions improve and personnel are able to return to the site, but did not give a specific date. Major barge line ARTco, the transportation arm of ADM, shut down operations as well and is anticipated to return to 22 January if weather permits. CGB Barge has also halted operations in New Orleans and is waiting for conditions to improve before resuming work. Arctic conditions are anticipated at the port through Thursday, according to the NWS. Travel will be hazardous due to the snow, ice and wind chill of up to 20mph. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil pushes climate leadership in Davos

21/01/25

Brazil pushes climate leadership in Davos

Sao Paulo, 21 January (Argus) — Brazil is looking to build an "ecological legacy" and called on richer countries to invest in its growing sustainable markets as it prepares to host the UN Cop 30 climate summit later this year, government representatives said at the World Economic Forum (WEF) in Davos. "The last two Cop editions were held in countries where most of their economy relies on oil exploration," northern Para state governor Helder Barbalho said at WEF today. "For the first time this year, we will have the international community debating climate change and economy while standing in the largest rainforest in the world." Brazil will host Cop 30 in November in Para's capital Belem, at the mouth of the Amazon rainforest. It tapped veteran diplomat Andre Aranha Correa do Lago , an advocate of sustainable development, to preside over the summit. Also speaking at WEF, Brazil's supreme court president Luis Roberto Barroso focused on government efforts to prevent environmental crimes and regulate new sustainable market. Throughout President Luiz Inacio Lula da Silva's third administration — which began in 2023 — Brazil approved its carbon credit trade market as well as offshore wind generation and biofuels regulation . Barroso said that the Brazilian judiciary branch, along with the legislative and executive power, established ecological and landownership matters as major priorities. Para's governor touted its major achievements from 2019-2024. The state is Brazil's former largest largest greenhouse gases (GHG) producer, but has reduced its emissions. "People used to think that, in order to increase income, we should destroy our forests and open space for other activities," Barbalho said. "Today, we know how to take advantage of our forests to create sustainable jobs, new ways of income and to diversify our economy while preserving current flora and fauna." Although Para increased its cattle raising by 3mn from 2021-2024, it cut deforestation in Amazonian lands by 42pc because of sustainable practices and financial incentives for farmers to preserve native vegetation, Barbalho added. The state is also focusing on the carbon credit market, the governor said. Recently, Para sold carbon credits equivalent to over 12mn metric tonnes of CO2 , raising $1bn to be used in continuous emission-reducing practices thanks to state-issued policies. New growth Still, Brazil cannot meet its previous Cop pledges with only its current forests and without reforestation. Almost 50pc of Brazil's GHG emissions came from land-use and forestry as of January 2024 . In November, Para created Brazil's first forest restoration concession, which will allow companies to participate in an open call to reforest and restore the damaged area of the Triunfo do Xangu environmental reserve. Once the restoration is done, the company will generate revenue through carbon credits from the recovered area. Brazil — which saw increased deforestation during president Jair Bolsonaro's administration in 2019-2022 — has been targeting reforestation as part of its efforts to meet its emissions-reduction target. Brazil's mines and energy minister Alexandre Silveira is also in Davos and seeking to attract investment in renewable energy-fueled data centers in Brazil, the ministry told Argus . The data center plan is under development and will be concluded by the end of the first half. Data centers consume up to 2pc of all power generated in the world and are responsible for 0.3pc of all CO2 emissions, according to the US International Energy Agency. But Barroso ended the panel saying that "climate change deniers made a triumphant return." On Monday, US president Donald Trump pulled the US out of the Paris Climate agreement . "I'm immediately withdrawing from the unfair, one-sided Paris climate accord rip-off," Trump said at a rally later in the day. "The US will not sabotage their own industries while China pollutes with impunity." Trump is scheduled to speak at Davos on 23 January. Throughout his campaign, Trump repeated the slogan "drill, baby, drill" as part of his support for fossil fuel production in the US. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Spain's Moeve joins FMC with net zero bunkers pledge

21/01/25

Spain's Moeve joins FMC with net zero bunkers pledge

Madrid, 21 January (Argus) — Spain-based integrated energy company Moeve, formerly Cepsa, has joined the First Movers Coalition — a group of large private-sector companies aiming to decarbonise hard-to-abate industries such as steel, aluminium and shipping — with a new target to increase the use of emission-free marine fuels in its own fleet. Moeve — Spain's largest supplier of conventional marine fuels — has pledged that at least 5pc of its deep-sea shipping fleet will run on emission-free marine fuels by 2030 as it expands capacity in low and zero emission bunkers. The company is developing a 300,000 t/yr e-methanol production facility with Danish shipping firm Maersk's affiliate C2X at its 220,000 b/d refinery in Huelva, Southern Spain. Maersk is also part of the First Movers Coalition. Moeve also plans to bring online a 750,000 t/yr green ammonia plant at its 244,000 b/d Algeciras refinery in 2027 as part of its plant to build 2GW of hydrogen electrolysis in southern Spain by 2030. Moeve joins other Spanish companies including power utility Iberdrola and steelmaker Egui in the First Movers Coalition. The First Movers Coalition was launched at the UN Cop 26 climate summit in Glasgow in November 2021. It is focussed on addressing sectors such as shipping, steel making and aviation, where emissions are hard to abate. These industries are responsible for around 30pc of global emissions, according to the coalition. By Jonathan Gleave Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Sharp increase in Italian Pome imports continue

20/01/25

Sharp increase in Italian Pome imports continue

Barcelona, 20 January (Argus) — An increase in Italian imports of palm oil mill effluent (Pome) continued in November, according to customs data. The rise came ahead of any impact from Indonesia's decision to suspend export permits for Pome and used cooking oil (UCO). Italian Pome imports under the 15220099 import code rose to 205,000t in January-November from 65,000t on the year. There is some lack of clarity on whether imports have increased or suppliers have improved adherence to import codes. November imports more than doubled on the year to over 12,000t (see chart) . According to Kpler data, cargoes of Pome — from Indonesia and Malaysia — continued to arrive in December and January at Italian ports that are home to hydrotreated vegetable oil (HVO) production. Italian HVO output was reduced in the second half of the year by margins described as the worst on record . This appears to have encouraged Eni and other regional producers to undertake some planned works and trim throughput. Kpler data show five seaborne cargoes totalling 30,000t leaving integrated Eni's 650,000 t/yr Gela HVO unit in October-December. This compares with around 90,000t shipped in the second quarter, 85,000t in the second and 70,000t in the first. Italian imports of palm oil continued to fall, with 915,000t imported in January-November, down by 16pc on the year, and the lowest in eight years. Industrial-use palm oil fell by 30pc year on year to 510,000t. Given previous Argus tracking, Kpler, shipping and port data it is highly likely that part of this decline in industrial palm oil is actually the correct coding of Pome. While Pome imports increased, deliveries of fatty acid distillates (Pfad) were lower by 24pc on the year to just under 510,000t in January-November. Some mislabelling of Pome as Pfad may also occur. Italian imports of UCO fell to 55,000t in the first 11 months of last year from 80,000t on the year. There may also be some mislabelling in this market. With Italy using significant volumes of Pome in biofuels production there may be some uncertainty over the impact of recent proposed changes in export permit allowances by Indonesia. This could support alternative feedstock procurement. Eni said previously it was aiming for 100,000t of alternative feedstock supply from its own initiatives last year. Italy's total castor oil imports were 20,000t in January-November of which 6,500t came from Eni's cultivation in Kenya. None arrived in November. Cottonseed oils from Kenya were lower at 5,000t in January-November, with no arrivals since August. Eni has said it plans alternative feedstock cultivation in several other African, Asia-Pacific countries and Italy, but production volumes remain opaque. By Adam Porter Italy biofuels feedstock 000t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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