TotalEnergies to stop palm oil use at La Mede HVO unit

Spanish Market: Biofuels, Oil products
06/07/21

TotalEnergies — formerly Total — will stop using palm oil as a feedstock at its 500,000 t/yr La Mede hydrotreated vegetable oil (HVO) unit in southern France by 2023, chief executive Patrick Pouyanne said.

Workers at the plant said that palm oil will largely be replaced by domestically-produced rapeseed oil (RSO), and that TotalEnergies is considering increased used of used cooking oil (UCO). Pouyanne has previously said that using RSO at La Mede would temper profits.

Total has an agreement with the French government to import a maximum of 300,000 t/yr of palm oil, but Argus tracking shows that La Mede has not come close to running that amount. This year it had received around 80,000t as of the end of June, all from Indonesia, and cargoes have frequently backed up at the port of Fos-Lavera as La Mede storage filled.

There are clear signs that Total is running more RSO, sunflower oil, UCO and animal fats (tallow) at La Mede.

The decision to use palm oil there was met with significant opposition in France, including a national blockade of Total's refineries and depots in 2018. French rapeseed farmers argued that using palm oil to produce HVO would displace demand for domestically-produced rapeseed biodiesel (RME). Dominant RME producer Groupe Avril was particularly irked, and there was a testy public spat between it and TotalEnergies. RME and HVO diesel are molecularly separate but can compete in state diesel blend mandates. HVO can also be produced as HVO jet fuel (SAF) and HVO naphtha.

TotalEnergies initially aimed for 40pc of its feedstock to come from UCO, but this has never been achieved. The firm has to export all its HVO made from palm oil after domestic lawmakers banned the use of palm oil in biofuels from the end of 2019.

By Adam Porter

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03/12/24

Treasury eyes 45Z guidance before Biden exit

New York, 3 December (Argus) — The US Department of Treasury said it still plans to issue guidance before president Joe Biden leaves office next year clarifying how refiners can qualify for a new tax credit for clean fuels. The agency "anticipates issuing guidance" around the Inflation Reduction Act's 45Z credit before 20 January to "enable producers to claim the 45Z credit for 2025", disputing a report today that the Biden administration planned on punting implementation to president-elect Donald Trump. The credit, set to kick off regardless on 1 January, will differ from some prior federal incentives by offering greater subsidies to fuels that produce fewer greenhouse gas emissions. Treasury did not commit to any definitive timeline for releasing guidance, and it did not immediately clarify how thorough any eventual rule would be. Companies in the biofuel supply chain say the current lack of clarity from Treasury — particularly on how it will calculate carbon intensities for various fuels and feedstocks — has slowed first quarter dealmaking. Government guidance could make or break the economics of certain plants, particularly for relatively higher-carbon fuels like soy biodiesel or jet fuel derived from corn ethanol. The US Department of Agriculture's timing for releasing a complementary rule to quantify the climate benefits of certain agricultural practices, envisioned as a way to reward refineries sourcing feedstocks from farms taking steps to reduce their emissions, is unclear. The agency said today that a "rulemaking process" in response to its request for information on climate-smart farm practices is "under consideration" but did not elaborate. Agriculture secretary Tom Vilsack had insisted earlier this year that his department would release some package before the end of Biden's term. Some industry groups remain pessimistic that the Biden administration will answer all of the thorny questions still lingering around the 45Z credit, especially given signals earlier this year that other Inflation Reduction Act programs would take priority. The Renewable Fuels Association, which represents ethanol producers, says final regulations around 45Z "seem highly unlikely" before the end of Biden's term but that it hopes Treasury releases at least some "basic information" or safe harbor provisions. Delays getting credit guidance could prod Congress to extend expiring biofuel incentives for another year, including a $1/USG credit for blenders of biomass-based diesel. Some formerly skeptical lobbying groups have recently come on board in support of an extension, fearing that biofuel production could slump next year given the lack of 45Z guidance and uncertainty about how Trump will implement clean energy tax credits. But four lobbyists speaking on background told Argus today that the proposal still faces long odds. Congress has various other priorities for its relatively brief lame duck session, including government funding and disaster aid, that take precedence over biofuels. A staffer with the Democratic-controlled US Senate Finance Committee said last month that Republicans have been reluctant to negotiate tax policy in a divided Congress this year when they are planning a far-reaching tax package under unified Republican control next year. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Industry wary of Trump tariffs on Canada, Mexico

03/12/24

Industry wary of Trump tariffs on Canada, Mexico

Washington, 3 December (Argus) — US president-elect Donald Trump's plan to impose 25pc tariffs on all imports from Canada and Mexico could have a profound impact on the US oil and gas industry and the US' diplomatic efforts, energy industry representatives said at an industry conference on Tuesday. Cenovus Energy, the second-largest oil and gas producer in Canada, is paying close attention to Trump's rhetoric on trade, and trying to "educate" policymakers in the incoming Trump administration on how tariffs on Canada could impact North America's deeply integrated energy system, Cenovus director of US government affairs Steve Higley said at the North American Gas Forum in Washington, DC. The US in 2023 imported 3.9mn b/d of crude oil from Canada and 730,000 b/d from Mexico, accounting for 60pc and 11pc of US crude imports, respectively, according to US Energy Information Administration (EIA) data. Refineries in the US Midwest's PADD 2 region also process about 2.5mn b/d of Canadian crude, Higley said. The US also exports a significant amount of natural gas to Mexico — 6.2 Bcf/d (176mn m³/d) in 2023, according to the EIA — which is another "reminder of how integrated the North American energy system is," said Dustin Meyer, senior vice president of policy at the influential trade group American Petroleum Institute (API). Retaliatory tariffs by Mexico, threatened by Mexican president Claudia Sheinbaum last week in response to Trump's initial threat of tariffs, would likely impact that gas trade. Sheinbaum and Trump have since taken on a more conciliatory tone toward the subject after the two had what Trump called a "wonderful" conversation. API repeatedly called on Trump in his first administration to de-escalate his trade dispute with China, which it said threatened investment in US LNG. A section of API's website on trade titled "The Truth about Tariffs" reads: "Tariffs are taxes on imported goods that increase costs for consumers." Aside from the threat of tariffs causing "alarm" in Canada, it is not clear how US consumers would benefit from a tariff on all Canadian products, including oil and gas, said Robert Johnston, senior director of research at Columbia University's think tank Center on Global Energy Policy. On the diplomatic front, there is a "tension" between the incoming Trump administration's argument that US oil and gas production must be increased to support American allies, when it is also threatening tariffs to support American industry over that of its trade partners, Johnston said. The initiation of new trade disputes could also erode the US' ability to compete with China, said Jason Grumet, chief executive of trade group American Clean Power Association. "Are we trying to take China on alone, or are we trying to build a global economy of the democratic nations who have been our allies for 50 years?" Grumet asked. Whether the incoming Trump administration will actually go ahead with tariffs on Canada and Mexico is far from certain. From its rhetoric, the administration appears to care deeply about narrowing the US' trade deficit, leveraging its massive energy production on the global stage, and keeping energy prices low for US consumers, Meyer said. But "if that's the vision, what is the form that specific policies take?" he asked. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

RLG production forecasts fraught with uncertainty

03/12/24

RLG production forecasts fraught with uncertainty

Government backing and co-operation between competitors are needed to align with the targets for RLG output, writes Matt Scotland London, 3 December (Argus) — The production of renewable LPG and dimethyl ether (DME) is projected to rise to 60mn-120mn t/yr by 2050 under a supportive policy scenario, consultants told attendees of this year's LPG Week conference in Cape Town, South Africa, over 18-22 November. But such forecasts continue to be laced with uncertainty given the enormous challenges involved in reaching commercial-scale output. Output of both fuels, often pooled together under the umbrella term renewable liquid gas (RLG), could grow to 4mn-9mn t/yr by 2030 and 8mn-27mn t/yr by 2040 under the same scenario, according to the findings from a soon-to-be-released report from consultancies NNFCC and Frazer-Nash. But under a situation where no policy support is forthcoming, volumes are about a quarter of these projections, NNFCC managing director Adrian Higson told the audience. RLG production could then exceed 100mn t/yr by 2050-55 and 200mn t/yr by 2060-65, Frazer-Nash consultant Jeremy Revell said, adding the caveat that greater uncertainty exists over a long timeframe. Biogas to LPG "offers the best potential route to renewable LPG beyond 2050", while gasification to DME does likewise for rDME. "One of the main surprises was just how much liquid gas we could produce by 2050, especially the role rDME could play from the gasification pathway," Revell said. "It has high potential yields and a lot of feedstock to support it." Speakers at the event were keen to emphasise the high level of uncertainty involved in RLG development, and just how much rests on the degree of government backing when it comes to projecting growth. And even assuming a supportive policy scenario does not necessarily equate to clear-cut support for RLG, bearing in mind it will be competing with other technologies, BioLPG LLC chairman Kimball Chen told delegates. "I don't know yet what supportive policies we want and for which solutions," he said. More co-operation between competitors in the LPG industry is needed to ease uncertainty, while allowing for competition between individual firms or partnerships, Chen said. "SHV and DCC [through their recently announced RLG collaboration] and my consortium [bioLPG LLC] with 12 European and American companies share the same technical challenges and will be competing for the same feedstocks, so the way we think about competition and increasing our chances for success as an industry and individually need to be further delineated," he said. Cost calculation Feedstock availability in many of the study's pathways is not a concern, with the possible exception of bioLPG from hydrotreated vegetable oil and hydroprocessed esters and fatty acids, something not unexpected, DCC's director of sustainable gas, Emmanuel Mannooretonil, said. The issue is having feedstock at the right price. "Now we see that technically it's possible and the feedstock exists, the next question is can we make a product good enough from an environmental and affordability standpoint for policy makers to support?" he said. The maturity of the technology is a challenge for the LPG industry, with "decisions of large financial magnitudes" required to get there, Chen added. "We have a race against time." Cost will remain a problem over the medium and long term because of the technological limits, Chen said. But perhaps the biggest challenge is the reluctance to build a first-of-a-kind plant, SHV Energy's head of sustainable fuels policy, Goher Ur Rehman Mir, said. SHV is testing a number of production routes for RLG, including converting ethanol to butane. But pilot plants and then demonstration facilities are required first, necessitating more investment and collaboration, he said. "We need to join forces, which is why we have signed [an initial agreement] with DCC Energy," he said. "But we are open to collaborating with other stakeholders to develop a consortium to progress this process fraught with difficulties." Production pathways Source Product Alcohol Renewable LPG Biogas Renewable LPG CO2 and H2 Renewable LPG and DME Gasififcation with Fischer-Tropsch Renewable LPG Gasification Renewable DME HVO and Hefa Renewable LPG Pyrolosis Renewable LPG — NNFCC, Frazer-Nash Renewable LPG, DME output forecast averages* Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU finalisiert Zölle auf chinesische Biokraftstoffe

03/12/24

EU finalisiert Zölle auf chinesische Biokraftstoffe

Hamburg, 3 December (Argus) — Die europäische Kommission wird ab Februar 2025 Zölle auf importierte chinesische Biokraftstoffe erheben. Dies geschieht in Reaktion auf ungewöhnlich große und teilweise falsch deklarierte Biokraftstoff-Importmengen aus China seit dem Frühjahr 2023. Die Zölle werden am 14. Februar 2025 in Kraft treten und fallen je nach betroffenem chinesischem Unternehmen unterschiedlich hoch aus. Je nachdem, wie kooperativ sich das jeweilige Unternehmen gegenüber der Europäischen Kommission bei den Ermittlungen zu etwaigen Betrugsfällen mit fortschrittlichen Biokraftstoffen gezeigt hat, liegt der Zollsatz zwischen 11,1 % und 36,6 %. Dies geht aus einem Dokument der Generaldirektion für Handel der Kommission hervor, das Argus vorliegt. Die vorläufig erlassenen Zölle wurden ursprünglich in einer Spanne von 12,8 % bis 36,4% festgelegt. Endgültig eingeführte Zölle gelten für gewöhnlich für eine Zeitspanne von fünf Jahren, allerdings kann eine Revision bereits nach dem ersten Jahr angefragt werden. Die Kommission bestätigt in dem Dokument außerdem, dass Nachhaltiger Flugzeugkraftstoff (SAF) von den Antidumping-Zöllen ausgeschlossen ist, da der Kraftstoff weder mit Biodiesel oder HVO austauschbar sei, noch mit diesen konkurriere. Verschiedene europäische Unternehmen und Verbände, darunter der finnische Produzent Neste und das European Biofuels Board (EBB) hatten zuvor gewarnt, dass durch den Ausschluss von SAF von den Zöllen der Flugzeugkraftstoff von verpflichteten Unternehmen zur Erfüllung von Dekarbonisierungsmandaten im Straßenverkehr genutzt werden könnte. Durch sogenannte Opt-Ins können Unternehmen in manchen EU-Staaten, zum Beispiel in den Niederlanden, nicht straßengebundene Kraftstoffe wie SAF auf die Erfüllung ihrer Mandate im Straßensektor anrechnen lassen. Als HVO jedoch Anfang November im Handelszentrum Amsterdam-Rotterdam-Antwerpen (ARA) teurer gehandelt wurde als SAF, gab es keine Anzeichen, dass der Flugzeugkraftstoff tatsächlich verstärkt im Straßenkraftstoffmarkt Einzug hielt. Seit Anfang 2023 erreichten große Mengen von meist als fortschrittlich deklariertem Biokraftstoff aus China den europäischen Markt. Das daraus resultierende Überangebot setzte europäische Produzenten unter Druck und senkte in Deutschland die Kosten zur Erfüllung der Treibhausgasminderungsquote . Von Simone Burgin & Max Steinhau Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2024. Argus Media group . Alle Rechte vorbehalten.

КМГ планирует производить SAF в Казахстане

03/12/24

КМГ планирует производить SAF в Казахстане

Riga, 3 December (Argus) — Госнефтехолдинг Казмунайгаз (КМГ) рассматривает возможность производства экологически чистого авиационного топлива SAF в Казахстане. Казмунайгаз — Аэро, дочерняя компания КМГ, заключила рамочное соглашение с казахстанской BioOperations о совместной реализации проекта по SAF, сообщил холдинг в ноябре. SAF в Казахстане планируется производить по технологии ATJ (Alcohol-to-Jet), учитывая наличие биоэтанола, производимого BioOperations на заводе в Северо-Казахстанской области. BioOperations экспортирует биоэтанол в европейские страны, доставляя около 3,5 тыс. т/месяц продукта по железной дороге из Казахстана в латвийский порт Лиепая. Начало выпуска SAF в Казахстане прогнозируется примерно в 2027 — 2030 гг., после того как крупные НПЗ перейдут на производство авиатоплива Jet A-1. Ежегодный объем выпуска SAF, как ожидается, превысит 50 тыс. т/год. Использование SAF возможно только при смешивании с авиатопливом Jet A-1. На сегодня все три крупных НПЗ готовы к производству авиакеросина Jet A-1. Для перехода на использование этого вида авиатоплива необходимо провести подготовку по международным стандартам всей авиационной инфраструктуры, от НПЗ до крыла самолета, включая хранение, транспортировку и процесс заправки. КМГ может в течение месяца перейти на выпуск Jet A-1 с нынешних РТ и ТС-1, — сообщил отраслевой источник. Потенциальное сотрудничество в производстве SAF в Казахстане обсуждается между лицензиарами технологий, производителями SAF и его потребителями, частным бизнесом и госкомпаниями. Ранее КМГ заключил меморандумы о сотрудничестве с LanzaJet — разработчиком технологии получения SAF из этанола и французской Axens. ________________ Больше ценовой информации и аналитических материалов о рынках нефти и нефтепродуктов стран Каспийского региона и Центральной Азии — в еженедельном отчете Argus Рынок Каспия . Вы можете присылать комментарии по адресу или запросить дополнительную информацию feedback@argusmedia.com Copyright © 2024. Группа Argus Media . Все права защищены.

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