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SE Asia could supply 12pc of global SAF by 2050: Report

  • Spanish Market: Biofuels
  • 04/09/24

Southeast Asia could have the capability to supply around 12pc of global demand for sustainable aviation fuel (SAF) by 2050, according to a report by not-for-profit association the Roundtable on Sustainable Biomaterials (RSB).

This would be equivalent to 45.7mn t out of an estimated 380mn t, based on the Air Transport Action Group's forecast for how much SAF will be needed to meet net-zero targets in 2050.

The RSB expects rice husks and straw to provide 36.9pc of feedstocks for SAF production in southeast Asia, followed by palm oil residues at 11.8pc. Around three-quarters of potential SAF feedstock can be sourced from post-consumer and agricultural waste, including cassava (9.3pc), sugarcane bagasse (6.4pc) and municipal solid waste (8.6pc), the RSB said.

The report expects Indonesia, Thailand, Vietnam, Malaysia and the Philippines together to account for about 90pc of the region's SAF supply in 2050. All five, except Vietnam, participate in CORSIA, a scheme that obligates members to buy SAF or buy offset credits to offset their emissions.

The RSB assessed feedstocks on availability and sustainability, using 12 social and environmental criteria including the region's "significant risk" of deforestation and water stress.

SAF accounted for just 0.2pc of global commercial aviation fuel use in 2023, but demand is poised to rise sharply on the back of upcoming blending mandates worldwide, particularly the EU's ReFuelEU mandate under which fuel suppliers will need to blend at least 2pc SAF in their jet fuel deliveries next year.

Some 43 international airlines are committed to using 13mn t/yr of SAF by 2030 to meet their regulatory and voluntary targets, and demand for SAF from the corporate sector has increased through book and claim approaches. Unblended SAF, which is completely free of fossil fuels, could reduce the aviation sector's emissions by 84pc over the fuel's lifecycle, according to the RSB.

Policies aligning

Regional policies in southeast Asia are beginning to reflect global trends, with several countries adopting or exploring SAF mandates, said RSB.

Indonesia and Malaysia, with their established biofuel industries, have "laid the groundwork" for SAF production, "leveraging their abundant agricultural resources" such as palm oil, while Thailand and the Philippines have initiated policy frameworks and pilot projects to explore SAF potential, although commercial production is "still nascent", the report said.

Singapore "stands out" with its comprehensive approach to SAF, the RSB said. The report highlights Singapore's National Sustainable Air Hub Blueprint launched in February 2024, which outlines a strategy to achieve net zero domestic and international aviation emissions by 2050. The blueprint also includes the introduction of a SAF levy for flights departing from Singapore in 2026.


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Marine biodiesel may face future supply constraints:DNV


16/01/25
16/01/25

Marine biodiesel may face future supply constraints:DNV

London, 16 January (Argus) — The use of biofuels in maritime transport has good potential to reduce greenhouse gas (GHG) emissions in shipping, but its supply may become tight in the future, according to Norwegian classification agency DNV. A vast majority of biodiesel production is currently routed towards the road sector, as most European countries have biofuel blending requirements for road diesel and gasoline. DNV's report said that the percentage of marine biodiesel used in shipping accounted for 0.3pc of the sector's total energy use in 2023 — according to data from the International Energy Agency (IEA). Fatty acid methyl ester (Fame) and hydrotreated vegetable oil (HVO) are currently the primary types of biofuels used in marine biodiesel blends, with Fame most prominent. The report acknowledged that waste-based Fame biodiesel can be utilised to meet regulations such as FuelEU Maritime , which came into effect this year, and potential International Maritime Organisation (IMO) mid-term measures in 2027 — which DNV expects to significantly boost demand for marine biodiesel. But with increasing demand and incentives to switch to marine biodiesel from conventional bunker fuels, the report pointed to potential supply limitations in the long term. These include scarcity of advanced waste-based feedstock and competition with other sectors such as aviation. Feedstock challenges could revolve around sources such as used cooking oil (UCO), and as a result DNV said that some suppliers are "investigating" the viability of alternative waste feedstocks that can feed into the marine sector. Biofuels produced from food and feed crops are not viable for regulations such as FuelEU Maritime, and it remains unclear whether they can meet the sustainability criteria under upcoming IMO mid-term measures. Further to feedstock scarcity are concerns around competition with other sectors, which have been voiced by market participants. But some participants have also said that while biodiesel suppliers may channel their feedstock towards aviation fuels because of higher margins, a potential source of fuel for marine could stem from by-products of sustainable aviation fuel (SAF) production. DNV's report also advised caution when using biofuels that do not comply with ISO 8217:2024 . This is more specifically relevant to off-spec biofuel blends or blends comprising novel feedstocks such as cashew nut shell liquid . By Hussein Al-Khalisy and Natalia Coelho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil to face weaker La Nina conditions


16/01/25
16/01/25

Brazil to face weaker La Nina conditions

Sao Paulo, 16 January (Argus) — Many government agencies expect a weaker La Nina weather pattern in Brazil — partially because of its delayed start — that could help reverse damages from a previous droughtand boost hydroelectric power generation. La Nina conditions emerged a month later than expected, starting only in January, according to national meteorology institute Inmet. Its presence was confirmed by the US' National Oceanic and Atmospheric Administration (NOAA) and is 40pc likely to last until March-May. Delayed La Nina conditions and its weaker effects on Brazil's climate may be linked to the global average temperature hitting an all-time high in 2024 , according to the World Meteorological Organization. La Nina conditions develop when the surface waters in the tropical Pacific Ocean are cooler-than-average across the central and central-eastern regions. But global oceans have been running much warmer for more than a year, which could have delayed the phenomena, according to NOAA. Its usually causes heavier rains in Brazil's northern and northeastern regions, while central-southern states experience drier weather and heatwaves. Brazil, along with South America as a whole, has a history of droughts , agricultural losses , and higher ethanol prices in previous La Nina seasons, but the effects this year will be milder and potentially beneficial to industries in some regions. Agriculture Despite its conditions set to last throughout the first quarter of 2025, Brazil's 2024-25 crop is expected to hit a record 322.3mn metric tonnes (t), up from 297.8mn t in the previous crop, according to national supply company Conab. Still, most forecasts rely on previous favorable conditions during the development of the 2024-25 crop. The soybean crop is set to be 13pc higher than in 2023-24, reaching 166.33mn t. Corn also is expected to increase production, reaching 119.6mn, a 3.3pc rise from the previous crop. But previous dry weather and low precipitation harmed center-southern sugarcane producers, which are responsible for 91pc of the national sugarcane output. The 2024-25 sugarcane crop is forecast to reach 678.7mn t, a 4.8pc decline from the previous season, according to Conab. La Nina's conditions may recover some of the sugarcane crop this season. Northeastern sugarcane production, harmed by last year's drought, will face a period of heavy rains brought by the phenomenon in January. But the sugarcane crop is already projected to decline by 30pc from the previous crop regardless, according to northeastern sugarcane producers' association Unida. The last time La Nina hit Brazil, in 2020-23, roughly 40pc of the main center-south sugarcane crop was at risk from dry weather . Ethanol Ethanol production is set to increase by 1.3pc in 2024-25 from the previous season, according to Conab. Still, sugarcane ethanol is outlined to shrink by 2.8pc thanks to 2024's dry weather and wildfires in the southeast. Electricity La Nina's late arrival enabled the summer rainy period in Brazil. The main hydroelectric reservoirs recovered from last year's drought and will end this month above half of their capacity, according to national grid operator ONS. Regardless of La Nina's presence, most of the central-southern states are expected to have above-average rains in January-April, according to Inmet. Temperatures are also set to stay above the historical average in the central-western, southeastern, southern and northern states. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: Waste-based biofuel to benefit Dutch bunkering


15/01/25
15/01/25

Q&A: Waste-based biofuel to benefit Dutch bunkering

New York, 15 January (Argus) — With marine fuel greenhouse gas (GHG) emissions regulations tightening, shipowners are looking for financially feasible biofuel options. Argus spoke with Leonidas Kanonis , director for communications and analysis at European waste-based and advanced biofuels association (Ewaba), about biofuels for bunkering. Edited highlights follow. Do you think that the Netherlands government will scrap the HBE-G bio-tickets that it has been allocating for marine fuel for use by ocean-going vessels? HBEs are not disappearing in 2025, and the Dutch system will continue as normal, including HBE-G bio tickets. In 2026, the plan is that HBEs will be scrapped altogether, when the Dutch system switches to an Emissions Reduction Obligation. The Emissions Reduction Obligation would be a transposition of the Renewable Energy Directive (REDIII) spanning all transport sectors and HBEs would not exist under such a system. 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Brazil's Bndes grants R480mn to ethanol producer


14/01/25
14/01/25

Brazil's Bndes grants R480mn to ethanol producer

Sao Paulo, 14 January (Argus) — Brazil's Bndes development bank approved R480mn ($79mn) for sugar and ethanol producer CMAA to increase biofuel production in the state of Minas Gerais. The bank will grant R220mn from its Climate Fund to raise the private-sector company's anhydrous ethanol output in its Vale do Pontal sugar and ethanol unit, in Limeira do Oeste city, by around 1,470 b/d. The plant will be able to produce up to 3,650 b/d. With new investments, the Vale do Pontal plant will process 4mn metric tonnes (t) of sugarcane/crop, up from 2.7mn t/crop previously, producing hydrous ethanol, raw sugar and electric power for the Brazilian domestic market. The Climate Fund will be also used to double CMAA's power generation to 68MW. The remaining R260mn will be taken from Bndes' services and machinery program to modernize existing equipment and buy new agricultural machines. CMAA's Vale do Pontal, Vale do Tijuco and Canapolis units are expected to use R50mn, R160mn and R50mn, respectively. These resources can be allocated to buy, sell or produce machines, industrial systems or technological and automation goods, as well as hiring national services and machine imports, Bndes said. The company will also be able to increase issuance of Cbio carbon credits, following the rise in ethanol output. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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