Malaysia targets B30 mandate for heavy vehicles by 2030

Spanish Market: Agriculture, Biofuels, Biomass, Chemicals
30/08/23

Malaysia will target 30pc biodiesel blending (B30) in heavy land vehicles by 2030 when palm oil-gasoil spreads are projected to be economically viable, according to the country's national energy transition roadmap (NETR) released on 29 August.

Putrajaya, the government's administrative centre south of the capital Kuala Lumpur, seeks to do a "comprehensive review" of the biodiesel blending programme to ensure the blending rate is achievable with a B30 mandate by 2030, while aiming to increase biorefinery capacity to 3.5bn litres and biomass and biogas power generation capacity to 1.4GW by 2050, the roadmap document said.

The NETR will focus on two key segments of Malaysia's bioenergy potential — agriculture-based bioenergy and waste-based bioenergy such as used cooking oil (UCO).

Malaysia will explore bamboo as a bioenergy feedstock while also supporting research for agriculture-based bioenergy, while developing third-generation bioenergy from algae.

The world's second largest palm oil producer will also strive to improve acceptance of palm derivatives such as crude palm oil and palm oil mill effluent (Pome) oil. The combined bioenergy generation potential of palm oil related residue is at 2,850 MW, the report said.

The country would target scaling up UCO collection by increasing collection facilities, with state-owned energy firm Petronas already having started a UCO collection pilot at its gasoline stations.

Malaysia is expected to produce 240,000 t/yr of UCO by 2030, according to the roadmap document.

SAF blending mandate

Malaysia will also first seek to establish a 1pc sustainable aviation fuel (SAF) blending mandate while obtaining SAF certification from international bodies, with the mandate rising to 47pc by 2050.

Putrajaya has identified hydroprocessed esters and fatty acids (HEFA) as the frontrunner technical pathway for SAF output in the near term, with Petronas signing an agreement with the Malaysia Palm Oil Board on 14 August to study all types of palm wastes for SAF and hydrotreated vegetable oil (HVO) production.

The state-owned refiner's upcoming biorefinery at the Pengerang integrated complex will be able to produce SAF, with completion targeted by 2026.

Malaysia also expects alcohol-to-jet (AtJ) and gasification-integrated Fischer-Tropsch (GFT) technologies to play a big role in long-term SAF production, the roadmap document said.

Neighbouring country Indonesia's state-owned energy firm Pertamina has also begun trialling the utilisation of SAF in its jet engines.

By Ryan Ang

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03/02/25

US soy crush falls behind export demand in December

St Louis, 3 February (Argus) — Increased export demand for soybean meal and soybean oil pulled stocks below year ago levels in December despite record soybean crush over the month, according to US Department of Agriculture (USDA) data. US soybean crush reached a record-setting 5.92mn t in December, up by 6pc over the prior year. US soybean meal production gained 7pc over the prior year, reaching 4.38mnt, while crude soybean oil production gained 8pc to reach 1.17mn t. While soybean meal production increased by 7pc, December use gained 12pc over the prior year to reach 4.42mn t. US soybean meal use has, in part, been driven higher by increased export demand. Current USDA projections place US soybean meal exports at 15.79mn t for the 2024-25 marketing year, up by 8pc from the prior year. So far, export sales data indicates this level is likely to be reached, with 9.21mn t sold for export through 23 January of the marketing year, 11pc above the same interval of the 2023-24 marketing year. With soybean meal use exceeding production over the month of December, stock levels declined counter seasonally to 380,000t, dropping stock-to-use ratios two percentage points from year ago levels. Crude soybean oil use also gained over the prior year, up 13pc, to reach 1.14mn t. Both refining and non-refining uses for crude soybean oil remained above year ago levels over December. Refined soybean oil production increased 11pc from the prior year, reaching 870,000t. Non-refining use gained 19pc over the prior year to reach 250,000t. As with soybean meal, use has been driven higher over the 2024-25 marketing year by much higher export demand. Through 23 January, export sales of US soybean oil reached 672,000t, a nearly twenty-fold increase over the same period of the 2023-24 marketing year. As a result, crude soybean oil stock levels dipped 14pc from the prior year to their lowest level or record, down to 540,000t, pulling the stock-to-use ratio down 14 percentage points to 48pc. By Ryan Koory US soybean crush and products Dec Chg from Nov Chg from Prior year Soybeans ( mn t ) Soybeans crushed 5.92 0.21 0.37 Soybean meal ( mn t ) Produced 4.38 0.15 0.29 Use 4.42 0.34 0.51 Ending stocks 0.38 -0.04 -0.03 Stocks to use 8pc -2pcp -2pcp Crude soybean oil ( mn t ) Produced 1.17 0.04 0.09 Use 1.14 0.02 0.15 Refined 0.89 0.05 0.10 Non-refining 0.25 -0.03 0.05 Ending stocks 0.54 0.03 -0.07 Stocks to use 48pc 2pcp -14pcp Refined soybean oil ( mn t ) Produced 0.87 0.04 0.09 Use 0.86 0.05 0.10 Ending stocks 0.23 0.01 0.02 Stocks to use 26pc -1pcp -2pcp — USDA Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil's Mato Grosso soy harvest still lagging

31/01/25

Brazil's Mato Grosso soy harvest still lagging

Sao Paulo, 31 January (Argus) — The 2024-25 oilseed harvest in Brazil's central-western Mato Grosso state advanced this week but is still behind the previous season's pace, according to the state's agricultural institute Imea. Soybeans The state harvested around 12.2pc of its expected acreage area as of 31 January, up by 7.8 percentage points in the week. The pace is 27.2 percentage points below the same period last year for the previous crop and 13.1 percentage points behind the five-year average for the week. Corn The 2024-25 corn planting in Mato Grosso — which started on the week of 17 January — reached nearly 6.3pc of the expected acreage area as of 31 January, an advance of 5.1 percentage points on the week. The pace is 22.4 percentage points behind the previous crop in the same period and slower than the 22.2pc five-year average for the week, according to Imea. Cotton Planting of the 2024-25 cotton crop reached 53.5pc of the expected acreage area as of 31 January, up by 24.9 percentage points in the week. That trails last year's pace by 41.9 percentage points. The pace is also 18.9 percentage points behind the 72.4pc five-year average for the period. By Bruno Castro Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump tariffs create risks for US ag exports

31/01/25

Trump tariffs create risks for US ag exports

St Louis, 31 January (Argus) — New US tariffs on Chinese and Mexican imports could lead to disruptions in US corn and soybean sales to those countries, creating substantial risks for US agriculture markets. China and Mexico are the two largest purchasers of US produced corn and soybeans, collectively accounting for 48pc of US corn exports and 61pc of US soybean exports since 2019, according to US Department of Agriculture (USDA) data. With US president Donald Trump's plans of a 25pc tariff placed on US imports from Mexico, and a 10pc tariff place on imports from China to be enacted on 1 February, the future of those trade flows could by threatened by retaliatory tariffs. In 2018, during Trump's first term, similar tariffs placed on China resulted in counter-tariffs on US agricultural exports and a substantial reduction in trade. Over 2018, US exports of corn and soybeans to China dropped by 74pc from the prior year, according to USDA data. For the recently harvested 2024 US corn and soybean crops, some of this risk has been mitigated by higher-than-normal exports ahead of Trump's presidency. US exports of corn reached 20.9mn t through 23 January of the 2024-25 marketing year, 29pc ahead of last year's export pace. Similarly, US soybean exports reached 33mn t through 23 January, 21pc ahead of year ago levels. But there is still a substantial amount of the two crops that has yet to be shipped. As of 23 January, 2.4mn t of US soybeans purchased by China had yet to be exported to the country. Mexican buyers had 1.3mn t of US soybeans and an additional 7.9mn t of US corn yet to be exported. These purchases could be canceled as a result of tariffs, placing this supply back into the US market. The risks also extend to the volumes of the two crops yet to be sold for export. According to USDA projections, the US will export 62.2mn t of corn and 49.7mn t of soybeans over the 2024-25 marketing year. To reach these levels, the US will need to export an additional 22.4mn t of corn and 9.7mn t of soybeans. Historically, China and Mexico would be viewed as the primary purchasers of the volumes. By Ryan Koory Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US PVC producers weigh cutbacks on lower margins

30/01/25

US PVC producers weigh cutbacks on lower margins

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Study calls for e-fuels bunker subsidies, GHG tax

30/01/25

Study calls for e-fuels bunker subsidies, GHG tax

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