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Marine biodiesel may face future supply constraints:DNV

  • Spanish Market: Biofuels, Oil products
  • 16/01/25

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.


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18/02/25

Early RD investment helps refiners weather uncertainty

Early RD investment helps refiners weather uncertainty

Houston, 18 February (Argus) — Major conventional refiners are confident their early investment in renewable diesel will help ease their transition from the long-running biofuel blenders' credit to a new producers' credit, given the lower value they can capitalize on and potential objectives of the new US administration. These major refiners — including Chevron, Valero, Phillips 66, and Marathon Petroleum — have greater access to capital than smaller producers and have shown they can scale even in an uncertain policy environment. They are focusing on lower carbon intensity feedstocks that will garner greater incentives this year. At the same time, the industry has gradually shifted from a focus on biodiesel to renewable diesel. Renewable diesel generates more value from federal Renewable Identification Number (RIN) credits, is made more often from lower carbon intensity feedstocks like beef tallow and used cooking oil, and can be blended or substituted at higher rates than biodiesel. Refinery tooling needed for the production of renewable diesel is also much closer to that of a conventional crude-oil fed refinery, meaning that refiners looking to repurpose refining assets have an easier path to entering the renewable fuels space. As a result, major refiners across the industry have invested more heavily in renewable diesel in recent years. Marathon Petroleum chief commercial officer Rick Hessling alluded to policy uncertainty on an earnings call this month but said the company's 48,000 b/d California renewable diesel facility was well prepared to weather the storm. "We will control what we can control, and from a feedstock optimization perspective, we're procuring advantaged feedstocks with low [carbon intensities] and then placing them, as you would certainly expect us to, in the highest-margin market as possible," he said. Underscoring the advantage renewable diesel has over biodiesel, Chevron — after idling multiple biodiesel plants last year — also announced the final commissioning of the renewable diesel expansion at its Geismar, Louisiana, facility this month. The transition from biodiesel to renewable diesel within its portfolio opens up greater opportunities for monetization of the new biofuel producers' credit, also known as 45Z, since the facility has greater access to lower-carbon feedstocks than its landlocked biodiesel plants. In general, biodiesel facilities rely more on local vegetable oils for feedstock, which are disadvantaged under the new 45Z credit's larger subsidies for lower-carbon fuels. Over the last six months, biodiesel production facilities owned by Delek, Hero BX, and Renewable Biofuels have idled production or entered prolonged maintenance in the wake of credit uncertainty, according to latest Argus estimates. Especially given lower 45Z credit values this year, these producers have to rely on the generation and monetization of RIN credits to balance the costs of feedstock inputs. When policy shifts like tariffs and limits on the use of certain feedstocks disconnect RIN values from feedstock costs, it can add even greater headwinds that only larger, well-positioned producers can handle. Given President Donald Trump's objectives within the energy space, the 45Z tax credit,under the Inflation Reduction Act (IRA), and other biofuel policy incentives exist in somewhat of a contradiction. Trump has made clear he wants to scale back distribution of IRA funds and has gone as far as calling investment in decarbonization "wasteful" and "a scam." But his support base and platform favor major oil refiners in their quest to maximize output and profit in the name of energy security and job creation. The 45Z credit, which adds a protectionist spin to renewable fuel production by cutting off eligibility for imported fuels, would seem to align with Trump's focus on energy dominance. Major oil and gas companies expanding renewable fuel production and increasingly outcompeting smaller and foreign rivals only add to that narrative. By Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Shell starts construction of base oil unit at Wesseling


18/02/25
18/02/25

Shell starts construction of base oil unit at Wesseling

London, 18 February (Argus) — Shell's has started construction of a Group III base oil production plant at its Wesseling oil refinery in western Germany, with commissioning scheduled by 2028, the company told Argus today. Two columns of 54 and 37 meters for the base oil conversion unit have been delivered and assembled at the site, Shell said. It announced plans to convert its Wesseling hydrocracker into a Group III base oil production unit at end of January 2024. The unit is anticipated to have a production capacity of 300,000 t/yr. Shell will cease crude distillation by March 2025 at the 147,000 b/d Wesseling refinery, as the company looks to reduce CO2 emissions. The base oil plant will receive vacuum gasoil (VGO) feedstocks from Shell's neighbouring 187,000 b/d Godorf refinery. European Group III prices have dropped on a persistent supply overhang. Argus -assessed prices for fca northwest Europe Group III 4cst with partial or no approvals fell by 23pc on the year to $1,020/t on 7 February. Suppliers in the Mideast Gulf target European buyers with ample spot supplies to capitalise on higher margins. Europe is the most attractive export outlet as it remains dependent on imports of Group III material owing to its smaller Group III production capacity in comparison to other regions. By Christian Hotten Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Нефтетранспорт - НТС: правила на рынке меняются


18/02/25
18/02/25

Нефтетранспорт - НТС: правила на рынке меняются

Moscow, 18 February (Argus) — Ситуация в сегменте железнодорожной транспортировки нефтеналивных грузов остается сложной. О причинах, приведших к этому, взаимодействии с грузоотправителями и планах строительства нового парка рассказал Argus генеральный директор Нефтетранссервиса (НТС) Сергей Ермолаев. — Как вы охарактеризуете текущую ситуацию на рынке перевозок нефтяных грузов по железной дороге? — Наблюдаем падение грузооборота и тоннажа отправок. Меры РЖД, которые должны были вернуть отправителям веру в надежное обеспечение парком, а также дать гарантии вывоза груза, пока не привели к результату. — Какие факторы к этому привели? В чем основные сложности для НТС? — Сегодня всем непросто, и наше положение не отличается от других субъектов экономики. Ограничения экспорта топлива из России, полное закрытие границ Казахстана на заезд порожнего парка цистерн, атаки на перерабатывающую и транспортную инфраструктуру, тарифные инициативы перевозчика, рост ключевой ставки Центрального банка России (ЦБР) — все это делает невозможным долгосрочный прогноз. А без прогноза нет инвестиций. В такой ситуации рынок выбирает простые схемы купил-продал. Это давит на переработку, на наших клиентов и на нас, соответственно. — НТС является одним из основных перевозчиков нефтеналивных грузов с заводов Роснефти. Как оцениваете итоги работы по этим долгосрочным контрактам? Как, на ваш взгляд, будет строиться дальнейшее сотрудничество с нефтяной компанией после завершения договора в конце I квартала 2026 г.? — Роснефть — наш главный клиент. Несмотря на то, что ни один из основных параметров, лежавших в основе долгосрочных договорных отношений, не сохранился в изначальном виде, компания чутко и оперативно адаптируется к новым обстоятельствам. В настоящее время мы совместно с коллегами выверяем позиции перед будущим тендером. У всех появился новый опыт, который должен быть учтен в новом цикле. Работа непростая, времени осталось совсем немного, но мы надеемся успеть вовремя. Разумеется, речь о ценах пока не идет. Нашей задачей является описать взаимные обязательства так, чтобы они имели ясные критерии исполнения и могли бы быть оцифрованы ставкой в ходе тендера. — Рынок в этом году столкнется со значительным выбытием нефтебензиновых цистерн. Планирует ли НТС покупки новых вагонов? — Мы ждем снижения ставки ЦБР, а точнее сужения разрыва между инфляцией и стоимостью кредитов. Также мы ждем, что из-за уменьшения заказов на постройку нового парка вагоностроители пересмотрят свою рентабельность до разумных уровней. Вероятно, после этого мы сможем начать постройку парка. Не исключено и принудительное снижение срока службы вагонов. Это создаст дефицит, увеличит требования к доходности нового парка из-за неопределенности будущего срока окупаемости. Тогда тоже можно будет строить. Но мы надеемся, что этого не произойдет: в условиях ограниченных ресурсов вряд ли нужно утилизировать то, что еще может послужить. Да и нагружать экспортеров новыми затратами странно, когда Россия нуждается в экспортных доходах. — Планирует ли НТС в ближайшее время развивать перевозки другой номенклатуры грузов, помимо нефтеналивных? — Мы всегда в поиске. Но вход в новые рынки требует хорошей аналитики, а сейчас мы находимся в ситуации отмены всех известных нам правил и принципов. В результате вся предыдущая статистика оказывается слабо применима. Если какие-то идеи выдержат и эти условия, обязательно их реализуем. Нефтетранссервис (НТС) Является одним из лидеров на рынке железнодорожных перевозок нефти и нефтепродуктов, парк в управлении превышает 35 тыс. единиц. Помимо вагонов-цистерн и локомотивов, холдингу принадлежат производственные предприятия в Центральном, Приволжском, Южном и Дальневосточном федеральных округах. Более 19 лет НТС сотрудничает с ведущими компаниями топливно-энергетического комплекса России. Сергей Ермолаев В 1997 г. окончил Московскую государственную академию приборостроения и информатики, в 2009 г. — Академию народного хозяйства при правительстве Москвы. В разные периоды времени занимал руководящие должности в сфере организации железнодорожных перевозок сначала в Северной грузовой компании, а затем в НТС, где в течение 2013—2021 гг. возглавлял коммерческое управление перевозок наливных грузов, направления логистики и эксплуатации подвижного состава. В начале 2022 г. был приглашен в Национальную транспортную компанию на должность коммерческого директора. С июня 2024 г. — генеральный директор НТС. Вы можете присылать комментарии по адресу или запросить дополнительную информацию feedback@argusmedia.com Copyright © 2025. Группа Argus Media . Все права защищены.

EU rapeseed crush rose in Jan with Australian canola


18/02/25
18/02/25

EU rapeseed crush rose in Jan with Australian canola

London, 18 February (Argus) — European rapeseed crush volumes increased by 112,000t on the month in January. Soybean and sunflower seed crushing fell by 73,000t and 80,000t respectively, as EU and UK crushers took advantage of steady Australian canola imports. Rapeseed crushing rose by 7pc, mostly due to a strong start in Australia's canola export season, with much of the supply heading to Europe. Higher-than-average exports can be attributed to a large harvest, strong European demand and increased port capacity. High soybean oil prices helped make rapeseed oil more attractive in January. Soybean crushing fell by 5pc on the month, with high prices after the US issued guidance on the 45Z production tax credit to allow US low-carbon fuel producers to immediately start claiming credits, supporting demand for US soybeans and soybean oil. Month 1 CBOT soybeans futures reached a six-month high on 21 January, and month 1 CBOT soybean oil reached a two month high on January 17. Sunflower seeds made up just 13pc of total crushed oilseeds in the EU and the UK, down from a 2024 average of 16pc and a six-month low. Crush volumes fell significantly on the month and the year, by 16pc and 26pc respectively. Many Ukrainian sunflower crushing plants remained idle or operated at reduced rates in January, with lower demand for sunflower oil pressuring crush margins. By Madeleine Jenkins EU-27 + UK crushing volumes 1,000t January December % m-o-m change Jan-24 % y-o-y change Soybean 1,270 1,343 -5.4% 1,170 8.5% Sunflower seed 434 514 -15.6% 589 -26.3% Rapeseed 1,656 1,544 7.3% 1,680 -1.4% Semi-refined 335 332 0.9% 356 -5.9% Fully-refined 580 547 6.0% 613 -5.4% Total Total oilseed 3,360 3,401 -1.2% 3,439 -2.3% Total refined 914 878 4.1% 969 -5.7% Fediol Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's Virgin, Qatar given approval to add flights


18/02/25
18/02/25

Australia's Virgin, Qatar given approval to add flights

Sydney, 18 February (Argus) — Privately-held airline Virgin Australia has been given approval by the Australian Competition and Consumer Commission (ACCC) for a planned agreement with state-owned carrier Qatar Airways to boost international flights to Australia. The proposed co-operation includes 28 new weekly return flights from Doha to Perth, Brisbane, Sydney and Melbourne beginning in mid-2025, and is likely to benefit travellers and increase choices for consumers, the ACCC said. Virgin plans to wet-lease aircraft from Qatar to operate the services and has already commenced selling fares. Virgin entered voluntary administration during the Covid-19 pandemic in 2020 before being sold to US private equity investor Bain Capital. The company, Australia's second-largest consumer of jet fuel, formerly operated long-haul flights but has since only operated flights to Australia, New Zealand, the Pacific and Indonesia. Qatar agreed to buy a minority 25pc stake in Virgin in 2024 as part of its expansion into Australia after it was refused authorisation to increase flights to the country by the federal transport minister. The Australian Foreign Investment Review Board and federal treasurer have yet to approve the deal. Australia's sales of jet fuel for international flights averaged 91,000 b/d in 2024, up by 17pc on the year from 78,000 b/d in 2023, according to Australian Petroleum Statistics. Total jet fuel sales were at 161,000 b/d. International jet fuel sales totalled 102,000 b/d in 2019, the final full year before the pandemic. Australia's jet fuel imports totalled 128,000 b/d in 2024, up by 8pc on the year. Further demand growth is likely, with Sydney — Australia's largest airport — reporting international passenger numbers 4pc below 2019 figures in 2024. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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