DHL signs 10‑year SAF offtake deal with Bahrain project

Spanish Market: Biofuels
13/05/26

German logistics firm DHL Express said it has signed its first sustainable aviation fuel (SAF) offtake deal in the Middle East, securing supply from a Bahrain project by Dubai-based developer SAF One from 2028.

DHL will take 25,000 t/yr of unblended SAF for 10 years, or 250,000t in total. It will act as an anchor offtaker, providing demand certainty as the project progresses toward construction and start-up from 2028.

This commitment marked "an important step" toward bringing the facility on line, said SAF One co-founder and chief executive Deepak Munganahalli.

Earlier this year SAF One secured $30mn investment and hired an engineering partner to start building a hydrotreating plant in 2026 at an unnamed Middle East location — now seemingly confirmed as Bahrain.

DHL will allocate the SAF globally through a book-and-claim system, enabling its customers to reduce Scope 3 emissions even on routes not directly fuelled with SAF.

DHL used 10pc SAF in 2025 from suppliers in Europe, the US, and Asia-Pacific, and has a target of using 30pc SAF by 2030.

The firm has scaled SAF through a business-to-business model, where its customers willingly absorb SAF premiums in exchange for emissions reductions. Passenger airlines can struggle to pass higher fuel costs to travellers.

By Aidan Lea

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13/05/26

Railroads blast UP-Norfolk Southern merger plan

Houston, 13 May (Argus) — Union Pacific (UP) and Norfolk Southern's four Class I competitors urged US federal regulators to once again reject as incomplete the merger proposal to create the first US transcontinental railroad company. UP and Norfolk Southern in December filed their original merger application with US rail regulator the Surface Transportation Board (STB), starting the clock on a multi-year process. It will be the largest merger the STB has ever scrutinized, and the process will likely feature high-profile hearings and congressional scrutiny. The three-member STB in January ruled that the would-be partners' merger application was incomplete, sending it back to UP and Norfolk Southern to fill in key informational gaps. The railroads on 30 April refiled their proposal, which they say reinforces their argument the merger would drive growth, save shipping costs and bolster the US supply chain. UP said its updated analysis shows the merger will shift freight shipments from the roads to the rails, saving shippers an estimated $3.5bn/yr and removing about 2.1mn trucks from the road. However, all of the remaining Class I competitors heaped criticism on the merger application. According to BNSF Railway, UP's western Class I competitor, "the amended merger application makes things worse, not better." The refiled application "largely repackages" the first version while offering only "cosmetic changes to gloss over the serious and fundamental competition, pricing, and service concerns that were previously raised", BNSF said in an 8 May filing with the STB. In its updated analysis, UP said the combined railroad will hold a 39pc market share of US rail freight market, which the railroad says would put it roughly on par with BNSF by certain metrics. BNSF said that UP's actual market share would be considerably higher, a fact that it has downplayed in its application. "UP continues to lowball its projected market shares to the board but signals to Wall Street — the engine behind this proposed merger — that the market shares and pricing power will be even higher," BNSF said, urging the STB to reject the application again as incomplete. Canadian Class I railroads Canadian Pacific Kansas City and Canadian National both filed separate comments urging the STB to reject the application as incomplete, as did eastern US Class I railroad CSX. In response to the filings, UP on 12 May said its updated application "is comprehensive and complete, and provides all the information" that the STB needs, including market share data. The merger would create a single rail network stretching about 55,000 miles, handling about half of US freight traffic. UP and Norfolk Southern say that a coast-to-coast network will speed transit times by 24 to 48 hours and lead to greater efficiency. The two companies expect the transaction to be completed in the first half of 2027. The UP-Norfolk Southern merger will be the first test of STB rules enacted in 2001 requiring Class I railroads to demonstrate that major mergers enhance, rather than merely preserve, competitive shipping options. By Chris Baltimore Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Methanol projects dominate Australia H2 subsidy scheme

13/05/26

Methanol projects dominate Australia H2 subsidy scheme

Sydney, 13 May (Argus) — The Australian Renewable Energy Agency (Arena) has announced a shortlist of projects for the second round of its Hydrogen Headstart subsidy scheme, with methanol facilities making up four of the seven. The shortlisted projects must submit full applications by early September, Arena said on 13 May, to win part of the A$1bn ($723.7mn) in funding available, which was reduced by A$1bn in last night's federal budget . Arena's selections represent 2,180MW of capacity, compared with the 3,394MW in the first round's shortlist . Four of the projects plan to manufacture methanol, the largest being the Bell Bay Powerfuels project in Tasmania state, which is aiming for first output in 2029 . Perdaman's 750MW Project Helios will connect to the company's 2.3mn t/yr Project Ceres urea plant in the Pilbara region of Western Australia. The firm started constructing its 30MW solar farm in March. Helios is expected to reduce Perdaman's carbon emissions by 43,800t of CO2 equivalent (tCO2e)/yr. Australian low-carbon fuels firm HAMR Energy's Portland Renewable Fuels Project was also on the list. The developer of the 220MW project received South Australia state government backing for a 140mn litres/yr sustainable aviation fuels (SAF) plant in March. Applications for the shortlist opened in October last year and follows consultations last year , after the first round of the scheme failed to award the full A$2bn initially offered, instead awarding the 900,000 t/yr Murchison Green Hydrogen project and the 4,700 t/yr Hunter Valley Hydrogen Hub with A$814mn and A$432mn, respectively, in 2025. Murchison has been shortlisted for its stage 1B, add a further 500MW of subsidised output to the initial stage meaning a total of 1.5GW capacity, while 3GW of electrolysis is ultimately planned for the project. The Headstart production credit pays the manufacturer per unit of production over a 10-year period of operations, to help bridge the gap between cost of making renewable hydrogen and market prices. By Tom Major and Susannah Cornford Hydrogen Headstart round 2 projects Applicant Project Title Electrolyser capacity (MW) State Hydrogen End Use Bell Bay Powerfuels Bell Bay Powerfuels 300 Tasmania Methanol European Energy Australia South East Queensland Power-to-X Project 150 Queensland Methanol HAMR Energy Portland Renewable Fuels Project 220 Victoria Methanol and SAF HIF Asia Pacific HIF Tasmania e-Fuel Facility 140 Tasmania Methanol Murchison Hydrogen Renewables Murchison Green Hydrogen Project Stage 1B 500 Western Australia Ammonia Perdaman Commercial Developments Perdaman Helios (Karratha): Decarbonising Fertilisers 750 Western Australia Urea Summit Hydro Gladstone Green Hydrogen Project 120 Queensland Alumina Source: Arena Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australia's Hazer, CRV mull SAF, clean fuels plant

12/05/26

Australia's Hazer, CRV mull SAF, clean fuels plant

Sydney, 12 May (Argus) — Australian bioenergy developers Hazer and Continual Renewable Ventures (CRV) have partnered to assess opportunities for sustainable aviation fuel (SAF) and renewable diesel production in Australia. The firms plan to assess the viability of a 175mn litres/yr SAF and renewable diesel refinery in Kwinana, Western Australia, using the hydroprocessed esters and fatty acids (HEFA) pathway, the firms said on 12 May. The proposed plant, known as New Rise ANZ Project 1, will use canola oil and hydrogen as primary feedstocks. Hazer would supply low-emissions hydrogen using its methane pyrolysis technology, which produces hydrogen and graphite from natural gas without directly generating CO2 emissions. The hydrogen would be used to de-oxygenate canola oil and other HEFA feedstocks to produce SAF and renewable diesel. Recent fuel insecurity driven by the US-Iran war has led to greater focus on local production of renewable fuels, Hazer's chief executive Glenn Corrie said. There are currently no commercial SAF or renewable diesel plants in Australia, but they are in the planning stages. Australian bioenergy developer Jet Zero completed a feasibility study in May for its proposed 400mn litres/yr HEFA SAF and renewable diesel facility in Gladstone, Queensland. Ampol and GrainCorp have also partnered to develop a 750mn litre/yr SAF and renewable diesel project using the HEFA pathway in Brisbane. By Lawrence Wen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EU jet fuel crisis guidance keeps SAF framework intact

08/05/26

EU jet fuel crisis guidance keeps SAF framework intact

London, 8 May (Argus) — The European Commission's crisis guidance on possible jet fuel shortages leaves the EU's sustainable aviation fuel (SAF) framework unchanged, despite market suggestions that energy security concerns could prompt rule changes. The EU response focused on operational issues not related to SAF, such as fuel uplift rules and airport slot use. The guidance largely reiterated existing aviation rules and set out how they should be applied if fuel shortages linked to the Middle East conflict intensify, allowing limited flexibility in cases of genuine shortages while making clear that most rules remain unchanged. SAF was absent from the guidance, with no mention of raising or cutting the EU's 2pc SAF mandate. Some industry participants had suggested the commission might have encouraged greater SAF use as a substitute for fossil jet fuel. EU energy commissioner Dan Jorgensen said last month that increasing the uptake of biofuels could substitute fossil fuels to ease market pressure. Other participants said the EU could relax SAF mandates to reduce costs, similar to Singapore's decision to postpone the start of its SAF scheme . Airlines association Airlines for Europe recently urged the EU to increase rebates for SAF costs and temporarily relax ReFuelEU's anti-tankering obligations, which are designed to prevent airlines from carrying excess fuel from cheaper locations. But the guidance confirmed that the 90pc fuel uplift rule under ReFuelEU Aviation still applies. Exemptions are only allowed in limited safety cases, such as when an airport has a confirmed jet fuel shortage and airlines need to carry extra fuel. Airlines have to prove this with official notices or supplier confirmation, and higher fuel prices or SAF costs do not count as valid reasons. As a result, the guidance is not expected to trigger widespread tankering away from EU airports. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Etanol anidro tem prêmios mais baixos em 2026-27

07/05/26

Etanol anidro tem prêmios mais baixos em 2026-27

Sao Paulo, 7 May (Argus) — Os prêmios dos contratos de etanol anidro no Centro-Sul para o período entre 1º junho de 2026-31 de maio de 2027 recuaram em relação à temporada 2025-26, em função da expectativa de produção recorde nesta safra de cana-de-açúcar. O anidro foi negociado em São Paulo a prêmios entre 10-11pc sobre o preço à vista do hidratado na maior parte do volume contratado até 2º de maio, segundo levantamento da Argus com as principais empresas do setor. Os maiores volumes em Mato Grosso, Mato Grosso do Sul e Goiás ficaram com prêmios entre 9-11pc. No ciclo 2025-26, o intervalo foi de 12-13pc no Centro-Sul. A Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) exige que as distribuidoras garantam o suprimento do anidro de maneira antecipada, por meio de duas modalidades: o regime de compra direta ou de contratação. No regime de contrato, distribuidoras asseguram para o ano seguinte volumes compatíveis com 90pc da quantidade de gasolina C comercializada no ano anterior. A meta de contratação do setor para 2026-27 é de 12,5 milhões de m³ de anidro, ante 10,6 milhões de m³ em 2025-26, de acordo com a ANP. Pelo menos 70pc dos extratos desses contratos devem ser apresentados ao órgão regulador até 2 de maio, anualmente. Os 20pc restantes podem ser entregues até 1º de julho. Os participantes podem fechar contratos com volumes acima do exigido. Nesta rodada, porém, muitos compradores decidiram estrategicamente contratar apenas o obrigatório, deixando mais espaço para atuar no spot. O motivo é a expectativa de preços à vista atrativos ao longo da safra 2026-27, quando esperam oferta ampla de etanol. A recuperação dos canaviais, um mix mais alcooleiro no primeiro semestre e a expansão da produção a partir do milho devem impulsionar a fabricação de etanol aos maiores níveis da série histórica. A entrada dos volumes da nova safra fez os preços do etanol anidro no Centro-Sul no spot caírem 18pc entre março-abril, para R$2.896/m³ equivalente Ribeirão Preto na última cotação do mês. Paralelamente, o preço da retirada do anidro baixou 20pc no mês, para R$ R$2.842/m³ em 30 de abril. A postura comedida do lado comprador ajudou a pesar nos prêmios, mesmo com o suporte da expectativa de avanço de mescla obrigatória na gasolina, dos atuais 30pc para 32pc (E32). A elevação da mistura deve ser analisada na próxima reunião do Conselho Nacional de Política Energética (CNPE). O encontro ocorreria nesta quinta-feira, mas foi adiada, sem uma nova data divulgada pelo órgão até o fechamento desta edição. O ministro de Minas e Energia, Alexandre Silveira, defendeu a pauta como uma medida para aumentar a segurança energética do Brasil, enquanto o mundo enfrenta obstáculos nos mercados de petróleo e derivados. A União da Indústria de Cana-de-Açúcar e Bioenergia (Unica) estima que o E32 injetará uma demanda adicional por etanol anidro de cerca de 1 milhão de m³/ano ante o E30. Em relação ao suprimento adicional necessário para atender ao E32, distribuidoras esperam adquiri-lo no mercado à vista ou por meio de cláusulas de flexibilidade previstas nos contratos. As partes negociaram a possibilidade de retirar cerca de 20pc a mais ou menos de volume de anidro sem precisar renegociar contratos, de olho no aumento de mescla. Por Maria Lígia Barros Anidro no Centro-Sul: retirada de contrato vs. spot R$/m³ Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2026. Argus Media group . Todos os direitos reservados.

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