S Korea’s SK Energy supplies first SAF cargo to Europe

Spanish Market: Biofuels
06/01/25

South Korean refiner SK Energy has exported its first sustainable aviation fuel (SAF) cargo to Europe, describing itself as the first refinery in the country to do so.

The cargo was exported four months after the refiner started commercial co-processing of SAF, SK Energy said today. SK Energy completed a dedicated SAF production line at its 840,000 b/d Ulsan refinery in September 2024.

The refiner has established a production capacity of around 80,000 t/yr of SAF and around 20,000 t/yr of other low-carbon products such as bio-naphtha, using bio-feedstocks such as used cooking oil (UCO) and animal fats with traditional oil production processes. SK Energy works with its affiliate SK On Trading International to secure waste-based raw material as feedstock.

It is one of three South Korean refineries which are producing SAF through co-processing, with the other two being S-Oil and Hyundai Oilbank. A fourth refiner GS Caltex has not announced plans to produce SAF, but is likely studying options including co-processing. It previously supplied around 5,000 kilolitres of SAF to Japan's Narita airport via Japanese trading firm Itochu on 13 September 2024.

South Korea plans to require all international flights departing from its airports to use a mix of 1pc SAF from 2027, with a target for the country to capture 30pc of the global blended SAF export market, it announced in August 2024. It remains unclear if co-processed SAF will be allowed to meet the country's mandate, but some South Korean refineries are optimistic.

The country also said in August it planned to establish a national standard, certification and testing method for SAF beginning in December 2024, but no updates have surfaced as of 6 January 2025.

By Deborah Sun

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15/07/25

New Zealand releases national fuel security plan

Sydney, 15 July (Argus) — New Zealand's centre-right coalition government has released a draft plan to make its fuel supply chains resilient and invited feedback from the local stakeholders and industry on the proposals. New Zealand wants to guard against supply disruptions, improve domestic infrastructure, develop low-carbon fuel alternatives locally and transition to new energy technologies in the next decade. Public submissions on the plan open 15 July and run until 25 August. Special economic zones have been mooted to provide tailored regulatory areas for developers of biofuels and other alternatives such as hydrogen to ease investment hurdles. The draft comes after New Zealand pledged to increase legally required fuel reserves and mandate that more jet fuel is kept at Auckland airport — the nation's busiest. Earlier this year, a government study found that reopening the shuttered 135,000 b/d Marsden Point refinery to ensure fuel supply could cost the country billions of dollars and take years to complete. Instead, it was recommended that the government find alternative solutions to securing supply like increasing in-country reserves and developing biofuels. The Marsden Point refinery supplied about 70pc of New Zealand's fuel requirements before it was transformed into an oil products import terminal in 2022. As New Zealand's transport sector starts adopting electric vehicles, gasoline consumption will diminish. Diesel demand will taper off by 2035 while the jet fuel market is expected to grow for the foreseeable future due to a lack of alternatives currently, the draft said. Sustainable aviation fuel (SAF) could eventually form part of New Zealand's energy mix. New Zealand's gasoline imports totalled 53,000 b/d in January-March , diesel imports were 71,000 b/d and jet fuel 33,000 b/d, according to the country's business, innovation and employment ministry. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Rotterdam biomarine fuel sales rebound in 2Q

14/07/25

Rotterdam biomarine fuel sales rebound in 2Q

London, 14 July (Argus) — Sales of marine biodiesel blends in Rotterdam rose by 59pc in April–June from the previous quarter, and bio-LNG sales hit a record quarterly high, driven primarily by demand linked to the EU's FuelEU Maritime regulation. But marine biodiesel sales were still 29pc lower than in the same quarter last year, reflecting weaker voluntary demand and a shift in container-liner volumes to east of Suez, where prices have been more competitive. Spot demand for marine biodiesel was mixed during the quarter. Most activity in the Amsterdam-Rotterdam-Antwerp (ARA) hub was linked to the start of FuelEU Maritime rules, which require ships entering, leaving or operating within EU waters to cut greenhouse gas (GHG) emissions. Under the regulation, biofuels bunkered in Singapore can be mass balanced and counted towards compliance if consumed on voyages starting or ending at an EU port. Market participants also reported stronger demand for marine gasoil (MGO)-based blends, with sales doubling to 31,663t from 15,640t in the first quarter of the year. This was partly due to the launch of a new emission control area (ECA) in the Mediterranean Sea on 1 May, which limits sulphur content in marine fuels to 0.1pc. The expansion of ECAs to cover most EU waters could also support demand for MGO and ultra-low sulphur fuel oil (ULSFO) in ARA. ULSFO–biodiesel blend sales nearly tripled to 24,573t in the second quarter from 8,490t in the first. Bio-LNG volumes hit a quarterly record but remained well below conventional LNG. FuelEU Maritime's 2025 GHG reduction target of 2pc can still be met using fossil LNG, which may limit immediate bio-LNG uptake. But bio-LNG's lower carbon intensity could support overcompliance, which can be traded under the FuelEU pooling mechanism. Sales of conventional bunker fuels in Rotterdam also rose on the quarter and were up 5.5pc on the year. ULSFO sales increased by 33pc on the year and nearly 21pc on the quarter, reaching the highest since the second quarter of 2021. High-sulphur fuel oil (HSFO) sales hit the highest on records going back to October-December 2019, rising by more than 10pc on the year and the month. Combined MGO and marine diesel oil (MDO) sales rose by 11pc on the year and by 3.8pc on the quarter, with MGO also at the highest since the second quarter of 2020. In contrast, very-low sulphur fuel oil (VLSFO) sales fell by 9pc on the year and 14pc from the previous quarter, the lowest level on record. The divergence in fuel demand is likely linked to the expansion of the Mediterranean Sea emission control area, which came into effect on 1 May and limits sulphur content in marine fuels to 0.1pc. MGO availability in Rotterdam was tighter in the second quarter, as some supply previously destined for the northwest European hub was redirected to the Mediterranean following the region's ECA designation. A similar trend was seen for ULSFO, with some Mediterranean suppliers importing the grade from ARA. LNG bunker sales fell by 24pc from the first quarter and by 17pc on the year. Market participants said the decline may reflect cheaper LNG bunker supply in Asia, where LNG is typically priced using a blend of oil-linked and spot contracts. The Singapore LNG dob price has consistently traded at a discount to northwest European levels in recent months. By Hussein Al-Khalisy, Martin Senior, Natália Coelho, and Gabriel Tassi Lara Rotterdam bunker sales t Fuel 2Q25 1Q25 2Q24 q-o-q % y-o-y % ULSFO 225,992 187,031 169,953 20.8 33 VLSFO 679,442 789,218 747,300 -13.9 -9.1 HSFO 914,672 829,197 825,125 10.3 10.9 MGO/MDO 407,877 393,071 369,267 3.8 10.5 Conventional total 2,227,983 2,198,517 2,111,645 1.3 5.5 Biofuel blends 165,220 104,037 234,093 58.8 -29.4 LNG (m³) 200,662 265,043 242,931 -24.3 -17.4 bio-LNG (m³) 4,752 0 2,200 na 116 biomethanol 3,958 5,490 950 -27.9 316.6 Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

USDA boosts soy view on biofuel policy changes

11/07/25

USDA boosts soy view on biofuel policy changes

St Louis, 11 July (Argus) — The US Department of Agriculture (USDA) today raised its projected US soybean crush for the 2025-26 marketing year following recent policy changes that are expected to increase domestic soybean oil demand for biofuel production. US soybean crush is expected to rise to a record 69.1mn metric tonnes (t) in the 2025-26 marketing year, the USDA said Friday in its monthly World Agricultural Supply and Demand Estimates (Wasde) report, up by 1.36mn t from the June report. The latest forecast marks a 5pc increase from volume projected for the 2024-25 marketing year. The higher outlook for soybean crush was driven by a substantial increase in anticipated soybean oil use for biofuel production, which the USDA places at 7.03mn t for the marketing year ahead, up by 27pc from the volume expected for the current marketing year. The increased biofuel use outlook follows US policy changes that significantly strengthen support for biofuels made from domestically produced feedstocks through changes to the 45Z biofuels tax credit and Renewable Identification Number credits generated through the Renewable Fuel Standard. The US is also proposing to require record biofuel blending into the US fuel supply over the next two years, including unexpectedly strong quotas for biomass-based diesel. With the increase in soybean crush, USDA expects domestic soybean oil production will rise to a record 13.6mn t in 2025-26, up by 4.1pc from the current marketing year. Additionally, the USDA revised higher its expectation for soybean oil imports in 2025-26 to 200,000t, up by 13pc from the current marketing year. Following an elevated export rate over the first half of the current marketing year, US soybean oil exports are projected to collapse in 2025-26, down by 73pc from the current marketing year to 318,000t. The reduction in exports, in combination with increased supply, is projected to exceed the gains in biofuel demand, increasing stocks to 758,000t by the end of the 2025-26 marketing year, up by 15pc from the inventory level projected for the end of 2024-25. Soybean meal supplies swell The jump in soybean oil demand is as also expected to result in a record level of US soybean meal production in 2025-26, up 4.5pc from 2024-25 to 54.3mn t, according to USDA. Both domestic use and exports of soybean meal are projected higher for the next marketing year following the increased supply outlook. US soybean meal exports are projected to reach 17mn t, up 7.5pc from 2024-25, while US soybean meal domestic use is projected to rise by 2.8pc to 37.9mn t. Soybean mean stocks are projected to increase as well, reaching 431,000t by the end of 2025-26, up 5.6pc from the level projected for the end of the 2024-25 marketing year. By Ryan Koory July 2025 USDA projections 2025-26 Chg from Jun 2024-25 Chg from Prior MY U.S. soybean oil supply and use ( mn t ) Supply -Beginning stocks 0.66 - 0.70 - -Production 13.59 0.27 13.06 - --Extraction ratio (pc) 19.67 0.00 19.83 - -Imports 0.20 0.07 0.18 -0.05 Total supply 14.46 0.34 13.95 -0.05 Use -Domestic disappearance 13.38 0.73 12.11 -0.14 --Biofuel 7.03 0.73 5.56 -0.39 --Food, feed and other Industrial 6.35 - 6.55 0.25 -Exports 0.32 -0.45 1.18 0.09 Total use 13.70 0.27 13.29 -0.05 -Ending stocks 0.76 0.06 0.66 - -Stocks-to-use (pc) 5.53 0.36 4.95 0.02 U.S. soybean meal supply and use ( mn t ) Supply -Beginning stocks 0.41 - 0.41 - -Production 54.30 1.04 51.98 - --Extraction ratio (pc) 78.54 -0.04 78.92 - -Imports 0.59 - 0.66 0.09 Total supply 55.29 1.04 53.05 0.09 Use -Domestic disappearance 37.90 0.41 36.85 0.09 -Exports 16.96 0.64 15.79 - Total use 54.86 1.04 52.64 0.09 -Ending stocks 0.43 - 0.41 - -Stocks-to-use (pc) 0.79 -0.02 0.78 -0.00 October-September markeing year — USDA, Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indonesia’s Alfamart invests $1mn in UCO firm Noovoleum

11/07/25

Indonesia’s Alfamart invests $1mn in UCO firm Noovoleum

Singapore, 11 July (Argus) — Indonesian convenience store retail chain Alfamart said this week it has invested $1mn into Singapore-based used cooking oil (UCO) collector Noovoleum. Noovoleum — established in 2023 — automates UCO collection in Indonesian cities, including in Java, Sumatra and Bali, with their "UCOllect" boxes, of which there are 100. It collects about 100t of UCO a month, which is sold to domestic buyers such as UCO aggregators, said the company's chief investment officer Egis Rimkus. Citizens deposit UCO into the boxes, which have an in-built quality testing system. They will then receive cash via the "UCOllect" application, if the quality of the oil is accepted. The rate varies every month and is currently at 5,500 rupiah/litre ($0.34/litre). There are now boxes at 12 Alfamart outlets across Indonesia. The final use of the UCO is unconfirmed, but some could be processed into biodiesel, market participants said. Indonesia has halted exports of UCO since January. There have been recent attempts to export refined UCO under a HS code unaffected by the ban, but bulk volume trades have likely still not been successful, traders told Argus . Noovoleum is in advanced negotiations with possible partners in Malaysia, Thailand and Singapore in light of Indonesia's export halt, with at least one partnership to be launched this year, Rimkus added. Noovoleum also placed "UCOllect" boxes at 10 gas stations belonging to state-owned Indonesian refiner Pertamina last December. This was part of a pilot project between the two. Pertamina has been trialling sustainable aviation fuel (SAF) production since the second quarter of 2025 , but large-scale production of SAF and hydrotreated vegetable oil (HVO) is expected only in 2029 , the refiner said. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US biofuel support clears way for new crush capacity

10/07/25

US biofuel support clears way for new crush capacity

New York, 10 July (Argus) — North American oilseed crushers told Argus that projects to increase processing capacity are on track for the next year, potentially enabling more renewable fuel production. After a difficult start to the year for biofuel producers, US policymakers are increasingly making clear that they want refiners to up their output in future years and rely more on domestic feedstocks like soybean oil. That could pave the way for more oilseed crush capacity to come online, after some facilities delayed or cancelled plans over the last year on stagnant demand. Companies confirmed to Argus that more than 620,000 bu/d of new soybean and canola crush capacity were on track to come online in North America in the next year, and other facilities that did not respond to requests for comment have plans in the coming years too. Greater vegetable oil supply also could at least partly address concerns from oil and biofuel refiners that Republicans' protectionist approach to biofuels threatens feedstock shortages and price spikes. A multi-seed crush facility under construction in Mitchell, South Dakota — which will be able to process up to 96,000 bu/d of soybeans — is scheduled to start up this October, South Dakota Soybean Processors chief executive Tom Kersting told Argus. US crush company Ag Processing similarly said that a new 137,000 bu/d soybean crush plant in David City, Nebraska, will open "later this year". In Canada, Cargill confirmed that a 121,000 bu/d canola processing plant in Regina, Saskatchewan is also on track to open this year. In the first half of next year, French agribusiness Louis Dreyfus said it plans to complete two major projects in North America. The company plans to open a 151,000 bu/d soybean crush plant in Upper Sandusky, Ohio, and to double capacity to more than 240,000 bu/d at a canola crush facility in Yorkton, Saskatchewan. US soybean oil futures have climbed by 12pc in the past month on recent policy shifts, providing more incentive for processors — already crushing more soybeans than ever before — to expand production. The US recently proposed record-high biofuel blend mandates for the next two years, projecting that domestic soybean oil production could increase by 250mn USG/yr. And President Donald Trump over the weekend signed legislation that retools a crucial US tax credit to increase subsidies for crop-based fuels. Canadian canola processors, which depend on US incentives because Canada's biofuel sector is far smaller, benefit less from some of these policy shifts. While US fuels made from Canadian feedstocks can still claim the tax incentive next year, the Trump administration has proposed halving credits generated under the biofuel blend mandate for fuels made from foreign feedstocks. That makes US soybean oil a far more attractive input for US refiners than Canadian canola oil. A Canadian farm cooperative earlier this year paused plans for a combined canola crush and renewable diesel plant in Regina, Saskatchewan, citing "regulatory and political uncertainty". And Bunge was vague about its plans for building the world's largest canola crush plant in the same city, which was initially envisioned to start up last year. The US-based agribusiness, which recently took over the project with its acquisition of Viterra, told Argus it was "focused on integration to ensure a smooth transition for our customers" and "may be able to provide an update in the near future". Even then, canola oil stands to benefit from increased demand from food companies if more US soybean oil is diverted to fuel markets. And despite recent struggles for other Canadian biorefineries, ExxonMobil subsidiary Imperial Oil has plans to soon open a 20,000 b/d renewable diesel plant in Alberta that will draw on canola oil. Canadian policymakers have taken steps to assuage local feedstock suppliers and refiners, including a domestic renewable fuel mandate in British Columbia and a proposed mandate in Ontario. Biofuel production and oilseed crush margins also will depend on interactions with other policies, including a temporary tax break through 2026 in the US for small biodiesel producers — historically more reliant on vegetable oils than more versatile renewable diesel plants — as well as low-carbon fuel standards in the US west coast region and Canada. The perennial risk for any company is that policy, especially around biofuels, often swings unexpectedly. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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S Korea’s SK Energy supplies first SAF cargo to Europe

Related news posts

New Zealand releases national fuel security plan

New Zealand releases national fuel security plan

Rotterdam biomarine fuel sales rebound in 2Q

Rotterdam biomarine fuel sales rebound in 2Q

USDA boosts soy view on biofuel policy changes

USDA boosts soy view on biofuel policy changes

Indonesia’s Alfamart invests $1mn in UCO firm Noovoleum

Indonesia’s Alfamart invests $1mn in UCO firm Noovoleum

US biofuel support clears way for new crush capacity

US biofuel support clears way for new crush capacity

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