EPA probes US biofuel producers' UCO supplies

Spanish Market: Agriculture, Biofuels, Emissions
07/08/24

The US Environmental Protection Agency is auditing used cooking oil (UCO) supply chains of domestic renewable fuel producers to verify whether the feedstock qualifies under the Renewable Fuel Standard (RFS).

Under the RFS, EPA requires renewable fuel producers to submit UCO collection points that are used for biofuels production. Among other inspections, EPA is evaluating those UCO collection locations, the agency said on Wednesday.

After the EPA announcement, current-year biomass-based diesel D4 RINs traded as high as 60.5¢/RIN, which was 5.75¢/RIN higher than Tuesday's closing. Activity on renewable feedstocks was minimal on Wednesday, making it harder to gauge market reaction.

"These inspections and any follow-up investigations are part of EPA's routine evaluation of compliance with RFS under the Clean Air Act and reflect the agency's commitment to a stable RFS program that strengthens the nation's energy independence, advances low-carbon fuels, and supports agricultural communities," EPA spokesperson Tim Carroll said. The agency could not discuss the number of inspections, facility identities, and dates of the inspections, he said.

A coalition of US farm groups recently called on the Biden administration to restrict biofuels produced with foreign feedstocks from qualifying for a new tax credit as US imports of UCO continue to increase. The group argued that the imports are displacing US feedstocks.

US lawmakers also asked the administration to provide more visibility on the UCO supply chain and requested clarity from EPA on how they are ensuring that UCO imports are not blended with palm oil.

By Jamuna Gautam

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15/10/24

EU agrees negotiating mandate for Cop 29

Brussels, 15 October (Argus) — EU ministers have agreed a general negotiating mandate for the UN Cop 29 climate conference, calling for a new climate finance goal, but without mentioning a concrete amount or range of figures for this. The main point of the EU's mandate remains that of obtaining an "ambitious and balanced" agreement at Cop 29, to be held on 11-22 November in Baku, Azerbaijan. The deal should still hold out hope of maintaining global temperatures within 1.5°C of pre-industrial levels in the "light of the best available science", according to the EU position. The bloc's environment and climate ministers want a Baku text to move "us all forward towards long-term resilience". The text sticks to language in a previous draft , underlining the need for "transitioning away from fossil fuels", tripling renewable energy capacity, and doubling annual energy efficiency gains by 2030 — all points agreed at last year's Cop 28. Countries, and especially major economies, should significantly enhance their national climate plans — known as nationally determined contributions (NDCs) — with greenhouse gas (GHG) emissions peaking before 2025, EU ministers said. NDCs should contain "economy wide absolute emission reduction targets" for all GHGs, they added. The EU will push for a global approach to carbon pricing. The bloc will "encourage" all jurisdictions to introduce or improve their own domestic carbon pricing mechanisms. And ministers stressed the need to "explore" innovative options for widening the sources of climate finance, including "carbon pricing, levies for implementing climate action" and the "scaling down of harmful incentives". That mirrors language in EU finance ministers' conclusions on international climate finance . Finance will be the key topic at Cop 29, where countries must finalise the details of a new climate finance goal . Funding needs for this are "in the space of… trillions" of dollars, Azerbaijan's lead negotiator Yalchin Rafiyev said this week. But a "realistic goal for what the public sector could directly provide and mobilise seems to be in the hundreds of billions", he said. The Cop 29 presidency hosted a series of 'pre-Cop' meetings on 8-12 October, including ministerial dialogues. Some progress was made, the presidency said. Ministers "must now return to their capitals to secure the mandates they need for the breakthroughs they must deliver. There is no excuse for anyone to arrive at Cop 29 without clear political support to make progress", incoming Cop 29 president Mukhtar Babayev said this week. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's drought: Northern rivers continue to drop

11/10/24

Brazil's drought: Northern rivers continue to drop

Sao Paulo, 11 October (Argus) — The worst drought in Brazil's history continues to reduce river levels in the Northern Arc region, hampering navigation on rivers that are used as waterways and are important routes to transport grains and fertilizers. Madeira waterway The waterway links Rondonia state's capital Porto Velho to the Itacoatiara port, in Amazonas state. Itacoatiara port is expected to receive around 78,100 metric tonnes (t) of fertilizers in October, according to line-up data from shipping agency Unimar. Status: The situation is critical in Porto Velho on the Madeira waterway, the second largest in the northern region. The state's ports and waterways authority (Soph) halted operations on 23 September because the Madeira River registered the lowest water level since monitoring began in 1967. The Madeira River's depth in Porto Velho decreased to 24cm on 11 October, from 48cm on 2 October, according to monitoring data from the Brazilian Geological Survey (SGB). Navigation remains suspended in the port. Amazonas waterway It is the main waterway in Brazil's north, handling around 65pc of the region's cargo, according to the national transportation and infrastructure department (Dnit). It links Amazonas' capital Manaus to Para's capital Belem. Status: The Negro River has also been falling. The depth was at 12.25m at the SGB monitoring point in Manaus on 11 October, down from 12.89m on 2 October. This is an extreme drought level and below the historic low of 12.7m recorded in 121 years of monitoring. Tapajos waterway It is an important waterway to move product from Mato Grosso state's northern area, with the Santarem port, in Para state, as a destination. The Santarem port is expected to receive 90,976t of fertilizers in October, according to line-up data from Unimar. Status: The Tapajos-Teles Pires waterway is also facing a dire situation. The national water and sanitation agency ANA declared a water shortage on the Tapajos River on 23 September. Drier than usual weather has dropped the levels of Tapajos, especially in the stretch between Itaituba and Santarem cities, in Para state, where flows are below historic minimum levels. The depth of the Tapajos River at the Itaituba monitoring point, where the transfer point for the Miritituba waterway is located, was at 86cm on 11 October, from 87cm on 2 October and below the record low of 1.32m, according to SBG data. At the Santarem monitoring point, where the port of Santarem is located, the Tapajos River was at -6cm, a level considered dry. The level was 25cm on 2 October. The historic minimum at the location is -55cm below the port's reference point. A level below zero does not mean the river is dry, but a negative reading indicates very low conditions. Tocantins-Araguaia waterway The Tocantins-Araguaia waterway encompasses the Araguaia and Tocantins rivers. It runs from the Barra do Garcas city, in Mato Grosso, into the Araguaia River, or from Peixes city, in Tocantins state, into the Tocantins River, to the port of Vila do Conde, in Para state. Soybeans, corn, fertilizers, fuels, mineral oils and derivative products are transported via the northern waterways. Vila do Conde port is expected to receive 152,800t of fertilizer in October, according to Unimar. Status: The SGB has two monitoring points on the Araguaia River. In the Nova Crixas city, in Goias state, the river was at 2.84m on 11 October, from 2.87m on 2 October. The river remains below the historical level of 3.10m. In Sao Felix do Araguaia city, in Mato Grosso state, the river was at 2.54m, from 2.55m in the prior week, a situation of extreme drought and close to the historical minimum level of 2.51m. By João Petrini Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

USDA orders west African organic soy inspections

11/10/24

USDA orders west African organic soy inspections

St Louis, 11 October (Argus) — The US Department of Agriculture (USDA) is warning organic soybean importers that product from west Africa may pose risks to consumers and is directing organic certifiers to increase inspections and testing. USDA's National Organics Program (NOP) on 27 September issued a directive to certifiers of organic soybeans and soybean meal from west Africa requiring increase oversight of the organic soybean supply chain over concerns about a lack of adequate controls in the region. Organic certifiers in west Africa are being required to increase on-site inspections and expand sample testing of organic soy products. The certifiers also by 28 October must provide NOP with descriptions of their oversight practices, as NOP evaluates whether to expand its own surveillance. Regulators took action in response to "the rapid growth of soybeans represented as organic in the region, security concerns in the region that can impede the ability for certifiers to conduct unannounced inspections, the prevalence of producer groups with thousands of members and associated issues with full traceability, feasible yields and adequate internal control systems, and known attempts to sell nonorganic soybeans from the region as organic", according to the directive obtained by Argus. The directive also prohibits certifiers from issuing time-based NOP import certificates within the region. Time-based certificates allow for multiple shipments of organic products to be certified for export over a period of time, in contrast to non-time-based certificates which are specific to each shipment. The move comes in the wake of a sharp increase in US imports of organic soybeans and soybean meal from west Africa over the past two years. Organic certification within west Africa is relatively concentrated. According to the Organic Integrity Database, Ecocert SAS certifies over half of all organic operations in the region. The next most common certifier in the countries is the Control Union Certifications, which certifies about 33pc of operations. US reliance on west African organic soy supplies has ballooned in recent years. Through September 2024, 42pc of US organic soybean meal imports and 11pc of organic whole soybean imports were sourced from west African countries, according to Argus organic import data . Two years ago, west African countries accounting for only 3.6pc of US organic soybean meal imports. Regarding what impact this directive could have on organic soy markets, Jennifer Tucker, the deputy administrator of the USDA NOP, said that "in the past, directives have led to both certifier and operation surrenders and some changes in exports as fraud was removed from the system". But "buyers who have invested in and continue to do effective due diligence and oversight on their supply chains should not be affected," she said. By Ryan Koory and Rachel Nelson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japanese firms eye developing CCS project in Alaska

11/10/24

Japanese firms eye developing CCS project in Alaska

Tokyo, 11 October (Argus) — Two Japanese firms are looking to develop a carbon capture and storage (CCS) value chain between Japan and US' Alaska state to help achieve Japan's 2050 decarbonisation goal. Japanese trading house Sumitomo and Japanese shipping firm Kline today reached a deal to sign a joint research agreement with US independent Hilcorp, for a strategic partnership to capture CO2 in Japan and transport it on a large liquefied CO2 (LCO2) carrier to storage and injection facilities in Alaska. Oil and gas fields have been developed in Alaska since the 1950s and the total storage capacity of the CCS project is expected to be 50 gigatonnes, equivalent to 50 years' worth of Japan's CO2 emissions, Sumitomo said. The world's first LCO2 transportation for CCS is scheduled to start next year ahead of this project, Kline said. Japanese companies are gearing up efforts to seek overseas storage sites for CO2, as domestic storage sites would be insufficient to store all of the country's possible emissions. Tokyo aims to add 6mn-12mn t/yr of CO2 storage capacity domestically and internationally from 2030, with a target of 120mn-240mn t/yr by 2050. The government has projected that Japan will be able to store up to 70pc of its forecasted CO2 emissions of approximately 240mn t/yr in 2050. Japan's parliament in May allowed the government to ratify the 2009 amendment to the International Maritime Organization's London Protocol that will enable the export of CO2. By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia's GrainCorp workers may strike during harvest

11/10/24

Australia's GrainCorp workers may strike during harvest

Sydney, 11 October (Argus) — Union members working for Australian grain aggregator GrainCorp in New South Wales (NSW) state may strike in the coming weeks as part of a wage dispute that could disrupt the start of the winter crop harvest. Australia's Fair Work Commission (FWC) approved a ballot of workers represented by the Australia Workers' Union (AWU) on 9 October, with voting to close on 23 October. If members vote in favour of protected industrial action, legal strikes could take place. An AWU spokesperson confirmed at least 200 union members employed by GrainCorp would vote on proposed action including work stoppages and bans on loading and unloading grain onto trucks and trains. GrainCorp and AWU must engage in a compulsory conciliation conference on 18 October to try to reach an agreement on unresolved issues before any strikes can occur. "GrainCorp continues to negotiate in good faith with our employees and the AWU and has held 10 meetings with them in the last six months," a GrainCorp spokesperson said on 11 October. The firm said it was too early to assess the impact, if any, that industrial action would have on the harvest ahead of the conciliation and ballot outcome. But NSW Farmers Grains Committee chair on 11 October called on GrainCorp and AWU to come to an agreement before harvest, stressing the cost of delays during harvest. NSW is poised to have an exceptional winter harvest, thanks to favourable weather throughout the growing season. The Australian Bureau of Agricultural and Resource Economics and Sciences (Abares) projects winter crop production to increase by 50pc from 2023-24 to 16.9mn t in 2024-25, which would be the third-highest winter crop on record. GrainCorp handled 37.4mn t of grain in the fiscal year to 30 June 2023, which is greater than the combined winter crop production of Queensland, Victoria and NSW in July 2022-June 2023, according to Abares estimates. Grain Producers Australia did not respond immediately for comment. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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