Dutch marine biodiesel wary of regulatory uncertainty

  • Spanish Market: Biofuels, Oil products
  • 01/03/24

The Dutch government's plan to push back transposition into national law of the revised EU Renewable Energy Directive (RED III) is lending uncertainty to marine biodiesel blending demand in the country.

The Dutch infrastructure and water management ministry (NEa) announced a delay in implementation to January 2026, saying transposition into its domestic renewable fuels tickets market would require more time. Dutch tickets, or HBEs, are tradeable and classed by feedstock type for use by companies that are obligated to pay excise duty or energy tax on fuels.

The country will maintain a reduced multiplier for renewables in shipping fuels of 0.4 to 2025. This is based on use of biofuels produced from RED III Annex IX A feedstocks, which can be double counted and hence return a ticket value of 0.8 times.

Shipping companies told Argus they would have to take stock of the delay's implications, and would reassess their projected demand for marine biodiesel blends in what was the world's largest bunkering hub for alternative marine fuels in 2023. They said there is uncertainty about a specific need for proof of sustainability (PoS) documents to attain a zero-emission factor for use of biofuels, as per the recent inclusion in the EU emissions trading system (ETS).

In the Netherlands, shipping companies that purchase marine biodiesel blends including fatty acid methyl esther (Fame) might not receive PoS for RED-certified biofuel, as suppliers further up the chain would probably have already submitted these to redeem the corresponding class of HBEs. Buyers could instead receive a raw material and intermediatory product delivery document, in the form of a sustainability declaration with many of the same relevant details.

Spot prices for marine biodiesel blends in the Netherlands have edged lower in recent sessions. B30 Advanced Fame 0°C CFPP dob Amsterdam-Rotterdam-Antwerp (ARA) — a blend of 30pc biodiesel made from EU RED Annex IX A feedstocks and 70pc very low-sulphur fuel oil (VLSFO) — averaged $762.37/t for the week to 28 February, compared with $769.77/t a week prior. This incorporates an Argus-assessed tradeable value for HBE-Gs, which are HBEs generated by the blending of advanced biofuels.


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22/04/24

Brazil 1Q tallow exports triple on long-term contracts

Brazil 1Q tallow exports triple on long-term contracts

Sao Paulo, 22 April (Argus) — Brazilian beef tallow exports totaled 73,930 metric tonnes (t) in the first quarter, a three-fold increase from the same three-month period in 2023 on rising demand. Almost 93pc of outflows between January and March were shipped to the US, according to data from Brazil's trade ministry. Long-term contracts explain the rising flow of exports, even though spot market arbitrage was closed throughout the first quarter (see chart) . The price of tallow in the Paranagua and Santos ports was $960/t fob on 19 April, keeping the arbitrage closed to US Gulf coast buyers, where the reference product was at $901/t on a delivered inland basis. Brazilian tallow is also negotiated at a premium against soybean oil, which closed at $882/t fob Paranagua on 19 April. This scenario has been observed since the 1 December 2023 start of Argus ' tallow export price assessment. Historically, vegetable oil in Brazil was traded at a discount to tallow, but strong demand has boosted the price of animal fat. Some biodiesel plants have been purchasing used cooking oil (UCO) or pork fat as an alternative. In 2023, there were doubts about whether the outflow of tallow from Brazil would be constant. Market participants now believe that the 2024 start of operations at new renewable diesel refineries in the US should sustain exports. Local suppliers that have already signed supply guarantee contracts — some up to three years — with American buyers are also considering export opportunities with Asia, including a new renewable diesel plant in Singapore that could receive Brazilian cargoes. Expansion projects are propelling US demand, including work that would bring capacity at Marathon Petroleum's Martinez Renewables plants in California to 2.35mn m³/y (40,750 b/d)and the Phillips 66 Rodeo unit in northern Californiato 3mn m³/y. These and other new projects will increase annual US demand for tallow by 5mn t. Maintenance on the horizon Maintenance at US refineries has Brazilian sellers bracing for a short-term drop in prices. Between May and June the Diamond Green Diesel (DGD) unit in Port Arthur, Texas, will shut down for maintenance, a stoppage that could impact demand for Brazilian inputs. Market participants have already observed a slight increase in domestic tallow supply, a change they attribute to maintenance at DGD. The advance of the soybean crop in Argentina is also expected to increase the supply of feedstocks to North American plants, as some refineries are returning to soybean oil after a hiatus of several years. The soybean oil quote on the Chicago Board of Trade (CBOT) is an important reference for the price of tallow. By Alexandre Melo Renewable feedstocks in Brazil on fob basis R/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Colombia's electricity woes add to unrest against Petro


22/04/24
22/04/24

Colombia's electricity woes add to unrest against Petro

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German products demand up on supply concerns


22/04/24
22/04/24

German products demand up on supply concerns

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Amapá cancela regime especial de ICMS


18/04/24
18/04/24

Amapá cancela regime especial de ICMS

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Conab: Safra de cana-de-açúcar bate recorde


18/04/24
18/04/24

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