EU confirms no crop aviation fuels

  • Spanish Market: Biofuels, Oil products
  • 12/05/21

The European Commission today confirmed crop-based biofuels will not be promoted as part of its forthcoming initiative on sustainable aviation fuels (SAFs), also known as biojet.

"We would a priori exclude crop-based fuels. But we will not create a separate regime for aviation. We will rely on the sustainability framework under the renewable directive as it is today or as revised on the basis of the commission's proposal in July," said European Commission's director for aviation Filip Cornelis.

He did not mention specific target figures for a SAF blending mandate by 2030, but said there will be "ambitious and realistic" targets aimed at not overshooting and creating an artificial shortage. The commission will also set a review clause to revise targets, if appropriate, in five years time and propose fines for fuel suppliers that do not meet required blending levels.

"The minimum blend would be the one available at all EU airports. Everybody uplifting jet fuels at EU airports would be uplifting the EU blend. This is the most simple, effective with the largest impact," Cornelis said.

Longer-term, Cornelis added the commission wants SAFs to reach a 63pc share by 2050. He also stressed the need for a level-playing field. The commission aims to present on 14 July a range of legislative proposals aimed at decreasing greenhouse gas (GHG) emissions by 55pc by 2030.

These include proposals to boost transport renewables, and increase uptake of sustainable fuels in the maritime and aviation sectors. The commission also intends to publish legal proposals revising coverage of aviation and emissions under the EU emission trading system (ETS).

Cornelis was speaking at an event on SAFs organised today by non-governmental environmental organisation Transport & Environment (T&E). Separately, the NGO called for the commission not only to exclude crop-based biofuels from SAFs but also natural gas from the forthcoming legislative proposals to boost the uptake of sustainable fuels in the maritime sector.

Natural gas and biofuels, including those from crop-based feedstocks, alongside electricity, hydrogen, synthetic and paraffinic fuels and liquefied petroleum gas (LPG), are classified as alternative fuels under a 2014 EU directive, also up for revision in July.

Under the draft 312-page impact assessment for revision of the EU's renewables directive one of the preferred options sets out an increased 26pc overall target share for renewables in transport by 2030, up from 14pc currently. This would be under an overall renewable target share of at least 38-40pc in 2030. This option also includes "earmarking" advanced biofuels above the current 3.5pc target share, and up to 5.5pc, for the aviation and maritime sectors. There could also be a dedicated percentage sub-target for renewable fuels of non-biological origin (RNFBOs).

The commission's impact assessment does not specifically exclude crop-based biofuels and natural gas from incentives for the maritime and aviation sectors. But the commission notes the contribution to decarbonisation from food- and feed-crop based biofuels is "limited due to their impact on indirect land use change and their contribution should be minimised".


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17/05/24

Houston refiners weather hurricane-force winds: Update

Houston refiners weather hurricane-force winds: Update

Adds Calcasieu comment, update on flaring reporting Houston, 17 May (Argus) — Over 2mn b/d of US refining capacity faced destructive winds Thursday evening as a major storm blew through Houston, Texas, but the damage reported so far has been minimal. Wind speeds of up to 78 mph were recorded in northeast Houston and the Houston Ship Channel — home to five refineries with a combined 1.5mn b/d of capacity — faced winds up to 74 mph, according to the National Weather Service . Further South in Galveston Bay, where Valero and Marathon Petroleum refineries total 818,000 b/d of capacity, max wind speeds of 51 mph were recorded. Chevron's 112,000 b/d Pasadena refinery on the Ship Channel just east of downtown Houston sustained minor damage during the storm and continues to supply customers, the company said. ExxonMobil's 564,000 b/d Baytown refinery on the Ship Channel and 369,000 b/d Beaumont, Texas, refinery further east faced no significant impact from the storm and the company continues to supply customers, a spokesperson told Argus . Neither Phillips 66's 265,000 b/d Sweeny refinery southwest of Houston nor its 264,000 b/d Lake Charles refinery 140 miles east in Louisiana were affected by the storm, a spokesperson said. There was no damage at Motiva's 626,000 b/d Port Arthur, Texas, refinery according to the company. Calcasieu's 136,000 b/d refinery in Lake Charles, Louisiana, was unaffected by the storm and operations are normal, the refiner said. Marathon Petroleum declined to comment on operations at its 593,000 b/d Galveston Bay refinery. Valero, LyondellBasell, Pemex, Total and Citgo did not immediately respond to requests for comment on operations at their refineries in the Houston area, Port Arthur and Lake Charles. A roughly eight-mile portion of the Houston Ship Channel from the Sidney Sherman Bridge to Greens Bayou closed from 9pm ET 16 May to 1am ET today when two ships brokeaway from their moorings, and officials looked in a potential fuel oil spill, according to the US Coast Guard. The portion that closed provides access to Valero's 215,000 b/d Houston refinery, LyondellBasell's 264,000 b/d Houston refinery and Chevron's Pasadena refinery. Emissions filings with the Texas Commission on Environmental Quality (TCEQ) are yet to indicate the extent of any flaring and disruption to operations in the Houston area Thursday evening, but will likely be reported later Friday and over the weekend. Gulf coast refiners ran their plants at average utilization rates of 93pc in the week ended 10 May, according to the Energy Information Administration (EIA), up by two percentage points from the prior week as the industry heads into the late-May Memorial Day weekend and beginning of peak summer driving season. The next EIA data release on 22 May will likely reveal any dip in Gulf coast refinery throughputs resulting from the storm. By Nathan Risser Houston area refineries Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's Rio Grande do Sul reallocates gas supply


17/05/24
17/05/24

Brazil's Rio Grande do Sul reallocates gas supply

Sao Paulo, 17 May (Argus) — Natural gas supply in Brazil's Rio Grande do Sul had to be redistributed because of the historic floods in the state, with diesel potentially making its way back as an power plant fuel to leave more gas available for LPG production. Gasbol, the natural gas transportation pipeline that supplies Brazil's south, does not have capacity to meet demand from the 201,000 b/d Alberto Pasqualini refinery (Refap), state-controlled Petrobras' Canoas thermal power plant and natural gas distributors in the region, according to Petrobras' then-chief executive Jean Paul Prates said earlier this week. The Santa Catarina state gas distributor has adjusted its own local network to meet peak demand in neighboring Rio Grande do Sul via the pipeline transportation network. The Canoas thermal plant is running at its minimum generation at 150GW, with 61pc coming from its gas turbine. The plant was brought on line to reinstate proper power supply after transmission lines in the south were affected by the floods. Petrobras plans to use a diesel engine to increase power generation. The current approved fuel cost (CVU) for diesel in the Canoas plant is of R1,115.29/MWh. Petrobras is also operating Refap at 59pc of its maximum installed capacity, at 119,506 b/d. Heavy showers in Rio Grande do Sul since 29 April brought unprecedented flooding to the state, causing a humanitarian crisis and infrastructure damage. The extreme weather has left 154 people dead, 98 missing and over 540,000 people displaced, according to the state's civil defense. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Houston area refiners weather hurricane-force winds


17/05/24
17/05/24

Houston area refiners weather hurricane-force winds

Houston, 17 May (Argus) — Over 2mn b/d of US refining capacity faced destructive winds Thursday evening as a major storm blew through Houston, Texas, but the damage reported so far has been minimal. Wind speeds of up to 78 Mph were recorded in northeast Houston and the Houston Ship Channel — home to five refineries with a combined 1.5mn b/d of capacity — faced winds up to 74 Mph, according to the National Weather Service . Further South in Galveston Bay, where Valero and Marathon Petroleum refineries total 818,000 b/d of capacity, max wind speeds of 51 Mph were recorded. Chevron's 112,000 b/d Pasadena refinery on the Ship Channel just east of downtown Houston sustained minor damage during the storm and continues to supply customers, the company said. ExxonMobil's 564,000 b/d Baytown refinery on the Ship Channel and 369,000 b/d Beaumont, Texas, refinery further east faced no significant impact from the storm and the company continues to supply customers, a spokesperson told Argus . Neither Phillips 66's 265,000 b/d Sweeny refinery southwest of Houston nor its 264,000 b/d Lake Charles refinery 140 miles east in Louisiana were affected by the storm, a spokesperson said. There was no damage at Motiva's 626,000 b/d Port Arthur, Texas, refinery according to the company. Marathon Petroleum declined to comment on operations at its 593,000 b/d Galveston Bay refinery. Valero, LyondellBasell, Pemex, Total, Calcasieu and Citgo did not immediately respond to requests for comment on operations at their refineries in the Houston area, Port Arthur and Lake Charles. A roughly eight-mile portion of the Houston Ship Channel from the Sidney Sherman Bridge to Greens Bayou closed from 9pm ET 16 May to 1am ET today when two ships brokeaway from their moorings, and officials looked in a potential fuel oil spill, according to the US Coast Guard. The portion that closed provides access to Valero's 215,000 b/d Houston refinery, LyondellBasell's 264,000 b/d Houston refinery and Chevron's Pasadena refinery. By Nathan Risser Houston area refineries Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Texas barge collision shuts GIWW section: Correction


16/05/24
16/05/24

Texas barge collision shuts GIWW section: Correction

Corrects volume of oil carried by barge in fourth paragraph. Houston, 16 May (Argus) — Authorities closed a six-mile section of the Gulf Intracoastal Waterway (GIWW) near Galveston, Texas, because of an oil spill caused by a barge collision with the Pelican Island causeway bridge. The section between mile markers 351.5 and 357.5 along the waterway closed, according to the US Coast Guard. A barge broke away from the Philip George tugboat and hit the bridge between Pelican Island and Galveston around 11am ET today. Concrete from the bridge fell onto the barge and triggered an oil leak. The barge can hold up to 30,000 bl oil, but it was unknown how full the barge was before the crash, Galveston County county judge Mark Henry said. It was unclear when the waterway would reopen. An environmental cleanup crew was on the scene along with the US Coast Guard and Texas Department of Transportation to assess the damage. Multiple state agencies have debated the replacement of the 64-year-old bridge for several years, Henry said. The rail line alongside the bridge collapsed. Marine traffic does not pass under the bridge. By Meghan Yoyotte Intracoastal Waterway at Galveston Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US RIN generation up in April as D4 climbs


16/05/24
16/05/24

US RIN generation up in April as D4 climbs

Houston, 16 May (Argus) — Generation of renewable identification number (RIN) credits in April rose by 12pc, as biomass-based D4 diesel credits posted their second highest monthly volumes ever. Total RIN generation rose to 2.06bn credits in April, up from 1.84bn a year earlier, the US Environmental Protection Agency reported on Thursday. D4 credits continued to lead gains in April, with generation increasing on the year by 29pc to 780mn credits. The only month with greater D4 RIN generation was December 2023. D4 accounted for 38pc of all RINs in April, up from 33pc in April 2023. Ethanol D6 RIN generation rose from a year earlier by 2.4pc to 1.2bn credits, accounting for 58pc of all RINs generated in the month. D6 credits were also up by 4pc from March, a month that was affected by seasonal ethanol plant maintenance. Cellulosic biofuel D3 credit generation rose by 7.6pc from a year earlier to 69mn credits. RINs are credits traded and produced by refiners and importers to show compliance with the EPA's Renewable Fuel Standard program. Obligated parties can produce credits when renewable fuels are blended into conventional transportation fuels or can purchase credits from other RIN producers. By Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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