Norway to implement ReFuelEU Aviation by 2027

Spanish Market: Biofuels
20/05/25

Norway is planning to implement the EU's ReFuelEU Aviation regulations "as soon as possible, and no later than 2027", according to the transport minister.

ReFuelEU Aviation entered into force in the EU on 1 January 2025, and will eventually require a 70pc sustainable aviation fuel (SAF) share in all EU airports from 2050.

Norway is not part of the EU, but it wants the regulations to be incorporated into the European Economic Area (EEA) and into Norwegian law as soon as possible to "contribute to a level playing field in aviation in Europe".

ReFuelEU would require Norwegian aircraft operators to gradually increase the volume of SAF in their fuel mix, starting with a 2pc share in 2025.

"The government now wants to implement this as soon as possible," said transport minister Jon-Ivar Nygård.

Norway established a sales requirement in 2020 that required aviation fuel suppliers to blend 0.5pc SAF. Norway's biofuels mandates align with EU sustainability criteria under the original renewable energy directive (RED) I, as part of EEA agreements.

Norway has made stricter requirements for biofuels sales from the beginning of this year. It was consulting on three options for increases to the biofuels blending obligations for 2026 and 2027, in April.

By Madeleine Jenkins

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12/06/25

EPA readies new biofuel blend mandate proposal

New York, 12 June (Argus) — President Donald Trump's administration is close to releasing two regulations informing oil refiners how much biofuel they must blend into the conventional fuel supply. The two rules — proposed biofuel blend mandates for at least 2026 and most likely for 2027 as well as a separate final rule cutting cellulosic fuel mandates for last year — exited White House review on Wednesday, the last step before major regulations can be released. Previously scheduled meetings as part of the process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. EPA administrator Lee Zeldin also told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering multiple compliance years still pending. It is unclear whether the rule will provide clarity on EPA's plans for program waivers — including whether the agency will up obligations on other parties to make up for exempt small refiners — but biofuel groups have worried that widespread exemptions would curb demand for their products. The price of Renewable Identification Number (RIN) credits used for program compliance have been volatile this year on rumors about these exemptions, which EPA has called market manipulation. RIN trading picked up and prices rose on the news as Thursday's session began. Bids and offers for 2025 ethanol D6 RINs, the most prevalent type currently trading, began the day at 96¢/RIN and 98¢/RIN, respectively. Deals were struck shortly after at 98¢/RIN and 99¢/RIN, with seller interest at one point reaching 100¢/RIN — well above a 95.5¢/RIN settle on Wednesday. Biomass-based diesel D4 RINs with concurrent vintage followed the same path with sellers holding ground as high as 107¢/RIN. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico’s ASA to play key role in SAF expansion

10/06/25

Mexico’s ASA to play key role in SAF expansion

Mexico City, 10 June (Argus) — State-owned Airports and Auxiliary Services (ASA) will take a central role in developing Mexico's still nascent sustainable aviation fuel (SAF) market, with fuel availability becoming one of its top priorities, officials said today. ASA remains the country's main jet fuel supplier, serving 52 airports and covering over 90pc of the domestic market, infrastructure, communications and transportation minister Jesus Esteva said. Speaking at an event marking ASA's 60th anniversary, Esteva said the implementation of SAF is "one of the biggest challenges" the government faces in the aviation sector, and that ASA must lead efforts to expand supply. "ASA aims to boost the use of clean energy, leading the sustainable transition for Mexico's aviation sector through the development and ongoing implementation of SAF," said ASA director Carlos Merino. The initiative seeks to reduce aviation's carbon footprint while maintaining service quality and efficiency, he added. ASA announced last year the launch of a pilot project to blend imported SAF with conventional jet fuel, with a long-term goal of producing SAF entirely in Mexico by 2030. For now, imports — most likely from the US — remain necessary. Mexico is participating in the International Civil Aviation Organization's (ICAO) Corsia scheme, which aims to reduce greenhouse gas emissions from international flights. Corsia includes a voluntary phase from 2024-2026, followed by mandatory targets from 2027-2035. Under the scheme, airlines must either use SAF or offset emissions by purchasing carbon credits, with exemptions for underdeveloped countries and those with minimal global air traffic. Sustainability will become increasingly important as Mexico's aviation sector grows, said Miguel Vallin, head of the federal civil aviation agency AFAC. Passenger traffic is projected to rise from 124mn in 2025 to 151mn in 2030 — an average annual increase of 3.3pc. ASA operates 52 jet fuel storage terminals across Mexico, with annual sales of around 5.4bn l (93,000 b/d), Esteva said. The government holds a monopoly over Mexico's jet fuel market, with ASA and state-owned Pemex supplying most of the market, with indirect participation of other companies. Jet fuel was the last oil product market opened to more competition in Mexico after constitutional changes in 2014, but progress stalled under the administration of former president Andres Manuel Lopez Obrador. Under President Claudia Sheinbaum, the government has kept the jet fuel market under close state oversight. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil inflation eases to 5.32pc in May

10/06/25

Brazil inflation eases to 5.32pc in May

Sao Paulo, 10 June (Argus) — Brazil's inflation slowed to an annual 5.32pc in May, snapping a three-month upswing since February, according to government statistics agency IBGE. The country's annualized inflation slowed from 5.53pc in April but was up from 4.56pc in January. Shelter costs, which include utilities, posted the largest gain in May, rising to an annual 4.53pc from 4pc in April. The acceleration took place thanks to a federal increase in power tariffs last month because of dry weather hampering hydroelectric power generation, which is Brazil's main power source. Transportation costs decelerated to 4.64pc in May from 5.49pc in April, in part driven by an annualized 13.16pc contraction in airplane tickets. Motor fuels also decelerated to 7.95pc in May from a 9.23pc gain in the month prior. Gasoline, ethanol, diesel and compressed natural gas (CNG) prices all fell in May, following some readjustments by state-controlled Petrobras . Food and beverage costs slowed to an annual 7.33pc in May from 7.81pc in April. Soybean oil prices eased to 21.1pc from 22.83pc. Brazil's monthly inflation slowed to 0.26pc in May from 0.43pc in April. That is the third monthly decline and the lowest rate since January. The country's decelerating inflation is partially thanks to the central bank's course of tightening, hiking its target rate to 14.75pc in early May. That was the sixth increase in a row since September, aimed at cooling the economy and boosting the real currency following sharp depreciation last year. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Jones Act rates unaffected by Trump ship talk

06/06/25

Jones Act rates unaffected by Trump ship talk

New York, 6 June (Argus) — Freight rates for the Jones Act fleet of US-built and crewed vessels that transport oil and other liquids between US ports have responded little to US government shakeups in 2025. The rate for a Houston, Texas-Port Everglades, Florida voyage on a Jones Act medium range (MR) tanker dropped by 8¢/bl to $3.29/bl between 3 January and 30 May per Argus assessments, down by only 2.3pc in that time despite US president Donald Trump's February announcement to bolster US shipbuilding . Trump has expressed a desire to boost US shipbuilding, while shorter-term remedies to an aging US-flagged fleet could come in the form of converting foreign-flagged vessels rather than building new ships domestically . The cost to build an MR tanker at a US shipyard is about $210mn,compared with $50mn to build the same vessel in South Korea, according to Macquarie Bank. Vessels re-flagged in the US are eligible for US government contracts, such as Military Sealift Command loadings, alongside other support programs extended by the US to vessels flying its flag. But they do not meet all the requirements to join the Jones Act fleet shipping between US ports, specifically the US-built requirement. A lack of newbuilding activity has helped keep $/d rates elevated for the less than 50 Jones Act MR tankers that are typically under multi-year time charter contracts. Jones Act $/d rates have remained rangebound since the start of the year between $86,000/d and $91,000/d per Argus assessments, an order of magnitude higher than the $8,952/d averaged by internationally flagged MR tankers carrying refined products like diesel from the US Gulf coast to Pozos, Colombia in the same period. Most of the downward pressure on Jones Act rates in 2025 likely came from declining crude prices amid roiling market uncertainty surrounding on-again and off-again US tariffs. The response from shippers involved with the Jones Act fleet has been "more skepticism rather than optimism" and there had not been "any serious reaction by the market to the administrative initiatives", according to a Jones Act shipowner. "There has been a push to ease the re-flagging of foreign built vessels into the US flag fleet, but of course these will not be Jones Act vessels and their introduction to US flag does not benefit the domestic shipyards which is the co-ultimate target, that and labor," the contact told Argus . "The shortage of US mariners is, of course, another important issue as well that will have to be wrestled with." By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Biofuels investment to rise 13pc in 2025: IEA

05/06/25

Biofuels investment to rise 13pc in 2025: IEA

London, 5 June (Argus) — Global investment in biofuels is set to grow by 13pc in 2025 to more than $16bn, as part of a broader surge in low-emissions fuel spending, according to the IEA. The IEA's World Energy Investment report projects a 30pc year-on-year increase in total investment in low-emissions fuels — including biofuels, biogases and low-emissions hydrogen — reaching nearly $25bn this year. This follows a 20pc rise in 2024. But regional trends diverge. Europe leads in overall spending but is prioritising biogas over liquid biofuels such as biodiesel, ethanol and biogenic sustainable aviation fuel (SAF). The region accounted for 60pc of global biogas investment last year but lagged behind the US, China and Brazil in liquid biofuels. The US and Brazil dominate biodiesel and ethanol investment. Their spending is several times higher than in Europe. Brazil's role is expected to expand further following its Fuels of the Future bill, which was signed into law last year . The US is also driving growth in hydrotreated vegetable oil (HVO) and SAF. It accounts for half of the 40pc projected increase in HVO and SAF output this year, which the IEA expects to reach 800,000 b/d. In 2024, the US made up 70pc of global SAF investment. The IEA forecasts fossil fuel investment will decline in 2025 for the first time since 2020. This will lift the share of low-emissions fuels — including biofuels — in global energy investment, although they will still account for only around 3pc of the total. By Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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