US ethanol plants idled as demand collapses
US ethanol producers are reducing output and idling plants, as margins tumble with prices amid coronavirus-related quarantine protocols that have slashed motor fuel demand.
Annual US ethanol output capacity has dropped by more than 3bn USG over the past month as producers reduce operations and idle plants, according to trade group Renewable Fuels Association (RFA). That is about 20pc of the roughly 15bn USG blended into the gasoline pool each year. About 30-40 plants are fully idle and another 40-50 have reduced output, RFA chief executive Geoff Cooper said.
Domestic ethanol production slid to a 22-week low in the week ended 20 March, while blending demand dropped to the lowest in six weeks, according to the latest Energy Information Administration data.
Margins on making ethanol from corn have been negative since mid-December as production outpaced demand, but the losses more than tripled this month. Margins fell yesterday to -77¢/bushel, from -24¢/bushel on 2 March, as plummeting crude prices outpaced lower corn futures, while spot ethanol prices hit record lows.
Prices for prompt in-tank transfers at Kinder Morgan's Argo terminal near Chicago have fallen by 34¢/USG, or 27pc, to 93.85¢/USG since early March, when the coronavirus pandemic began to cut fuel demand. US implied gasoline demand last week sank by nearly 9pc, according to the EIA.
Adding to the pressure on fuel prices this month, crude production surged after Opec+ failed to reach an agreement.
The deteriorating economic conditions led agricultural conglomerate The Andersons to idle a plant in Colwich, Kanasas, and shut four jointly owned plants for maintenance as part of a plan to reduce April output to half of capacity. Pacific Ethanol plans to cut production by at least 60pc by the end of this month. And Poet, one of the largest producers of ethanol in the US, is halting corn purchases at some facilities.
Some ethanol plants are shifting operations to produce high-grade ethanol for hand sanitizer and other cleaning products in recent weeks, according to RFA's Cooper. They include Absolute Energy (St. Ansgar, Iowa); Aemetis (Keyes, California); Chippewa Valley Ethanol Company (Benson, Minnesota); Grain Processing Corp. (Muscatine, Iowa, and Washington, Indiana); and Pacific Ethanol (Pekin, Illinois).
Even before the coronavirus outbreak and collapse of the Opec+ agreement, the ethanol sector was struggling from the US-China trade dispute that reduced ethanol exports and from federal waivers that exempted some small refineries from requirements for blending ethanol into gasoline.
A recent 10th Circuit court decision to reduce the number of refineries eligible for exemptions is a silver lining for the industry, as the exemptions have eroded ethanol demand since 2016.
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Be8 quer ISCC de etanol para SAF em nova usina
Be8 quer ISCC de etanol para SAF em nova usina
Sao Paulo, 25 April (Argus) — A produtora de biocombustíveis Be8 buscará a Certificação Internacional em Sustentabilidade e Carbono (ISCC, na sigla em inglês) Corsia para comprovar que seu etanol à base de grãos está de acordo com as exigências internacionais para a produção de combustível de aviação sustentável (SAF, na sigla em inglês), contou hoje o CEO da empresa, Erasmo Carlos Battistella, à Argus . A companhia quer obter o certificado para sua nova e primeira planta de etanol, localizada em Passo Fundo, no Rio Grande do Sul. "Já estamos trabalhando nisso", disse Battistella. A usina terá capacidade de produzir 209.000 m³/ano do biocombustível e recebeu uma licença ambiental nesta semana. As operações devem começar em 2026. O ISCC é o principal sistema de certificação internacional para biomassa e bioenergia, com foco na sustentabilidade do uso da terra em conjunto com a rastreabilidade e a verificação dos gases de efeito estufa. Diversas empresas de etanol à base de cana-de-açúcar já receberam o certificado no Brasil – como Raízen, São Martinho, BP Bunge, Adecoagro, Copersucar e Zilor. A produtora de biocombustível de milho FS foi a primeira a conseguir o reconhecimento para o etanol de grãos. O Brasil, referência global em biocombustíveis como o etanol e o biodiesel, é considerado um grande player em potencial no SAF pela indústria de transporte aéreo e pelo Departamento de Energia dos EUA, devido à via de conversão pela tecnologia alcohol-to-jet (AtJ, na sigla em inglês). Por Laura Guedes Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.
Etanol de milho deve compensar parte da queda da cana
Etanol de milho deve compensar parte da queda da cana
Sao Paulo, 25 April (Argus) — A produção de etanol de milho compensará parcialmente uma queda no processamento do biocombustível à base de cana-de-açúcar na safra de 2024-25, de acordo com a Companhia Nacional de Abastecimento (Conab). A companhia espera que a produção total de etanol – de cana-de-açúcar e milho – para a temporada atual atinja 34,1 milhões de m³, baixa de 4pc em comparação ao ciclo recorde de 2023-24. O processamento total de anidro, usado como mistura para a gasolina, deve crescer 6,2pc, 892.500m³ a mais que na safra anterior, a 15,1 milhões de m³. Já o hidratado deve recuar 10pc, para 18,9 milhões de m³. Do total que será produzido no ano, a cana-de-açúcar deverá ser matéria-prima para 27,3 milhões de m³ deste volume, 8pc a menos do que na safra anterior, à medida que sua moagem deve diminuir 3,8pc, para 685,8 milhões de t. Isto se compara com 713,2 milhões de m³ em 2023-24, o maior valor já registrado no país. Condições climáticas adversas, como falta de chuvas e altas temperaturas no Centro-Sul, reduzirão a produtividade no período, reportou a Conab. Enquanto isso, a área de plantação de cana-de-açúcar subiu 4,1pc, para 8,6 milhões de hectares (ha), com mais áreas em expansão e renovação. As usinas também devem continuar favorecendo um mix mais açucareiro em detrimento do biocombustível. A organização espera que a produção de açúcar cresça 1,3pc, para 46,2 milhões de t. Os preços do açúcar estão mais atrativos no mercado internacional, com importantes exportadores como Índia e Tailândia diminuindo os embarques e abrindo espaço para a commodity brasileira. Nesse cenário, o processamento do etanol de milho deve compensar "parcialmente" o volume menor de biocombustível de cana, segundo a Conab. Serão produzidos 6,8 milhões de m³ do produto, alta de 16pc na base anual. O etanol de grãos está quebrando recordes a cada safra nos últimos anos, crescendo exponencialmente especialmente no Mato Grosso, Mato Grosso do Sul e Goiás. O país construirá 10 novas plantas do biocombustível de milho nos próximos dois anos, afirmou a consultoria SCA Brasil. Por Laura Guedes Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.
UK publishes SAF mandate, targets 22pc by 2040
UK publishes SAF mandate, targets 22pc by 2040
London, 25 April (Argus) — The UK will mandate the supply of sustainable aviation fuel (SAF) from next year, targeting a 2pc share in 2025, which equates to around 230,000t of SAF according to the government, and increasing the obligation annually to 10pc in 2030, 15pc in 2035 and 22pc in 2040. The obligation, which falls on the jet fuel supplier, will remain at 22pc from 2040 until it is reviewed and updated, the UK said. The mandate is subject to parliamentary approval. An EU-wide SAF obligation is also due to come into effect next year, targeting a 2pc SAF share in 2025, increasing to 6pc from 2030, 20pc from 2035, 34pc from 2040, 42pc from 2045 and 70pc in 2050. Under the new UK mandate, hydrotreated esters and fatty acids (HEFA) SAF can be used to meet 100pc of SAF demand in 2025 and 2026, but it will be capped at 71pc in 2030 and 35pc in 2040. HEFA is the most common type of SAF today, and is expected to account for over 70pc of global production by the end of the decade, according to Argus data. An obligation for Power-to-Liquid (PtL) SAF will be introduced from 2028 at 0.2pc of total jet fuel demand, rising to 0.5pc in 2030 and 3.5pc in 2040. The EU is targeting a 1.2pc share of synthetic aviation fuels in 2030, rising to 2pc in 2032, 5pc in 2035 and 35pc in 2050. To be eligible under the mandate, SAFs must achieve minimum greenhouse gas (GHG) reductions of 40pc compared with a fossil fuel jet comparator of 89g CO2e/MJ, and must be made from sustainable wastes or residues, such as used cooking oil or forestry residues. SAF from food, feed or energy crops is currently not eligible for support under the scheme, the government said. PtL SAF will need to be produced from low carbon — renewable or nuclear — electricity. Recycled carbon fuels (RCF) from feedstocks like unrecyclable plastics can also be used to meet the obligation. Hydrogen, whether used as fuel precursor or as final fuel, must be bio-hydrogen from wastes and residues, RCF hydrogen or derived from low carbon energy. The mandate will also introduce tradeable certificates for the supply of SAF, with additional certificates awarded for fuels with higher GHG emissions savings. There will be three types of certificates: PtL, standard and HEFA. Buy-out mechanisms will be set at the equivalent of £4.70/l and £5.00/l for the main and PtL obligations, respectively. Formal reviews of the mandate will be conducted and published at least every five years, with the first to be carried out by 2030, the government said. The mandate will be separate from the country's Renewable Transport Fuel Obligation (RTFO). In tandem with the publication of the SAF mandate, the government launched a consultation on four options for an SAF revenue certainty scheme aimed at guaranteeing revenue from SAF and support production in the country. The UK previously said it aims to introduce the mechanism, which will be industry funded, by the end of 2026 . The consultation includes a preferred option for a "guaranteed strike price" (GSP), which would guarantee a pre-agreed price of SAF supplied into the UK market. By Giulia Squadrin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Cepsa supplies HVO bunker fuel in Algeciras
Cepsa supplies HVO bunker fuel in Algeciras
London, 24 April (Argus) — Spanish refiner and bunker fuel supplier Cepsa has recently delivered 150t of 100pc hydrotreated vegetable oil (HVO) by truck to the Ramform Hyperion at the port of Algeciras. The supply follows market participants reporting firmer buying interest for HVO as a marine fuel from ferry lines in the Mediterranean in recent sessions. The supplied HVO is said to be of class II, with used cooking oil (UCO) as the feedstock. Cepsa added that the supply was completed in cooperation with Bunker Holding subsidiary Glander International Bunkering, and could bring about a greenhouse gas (GHG) emissions reduction of up to 90pc compared with conventional fuel oil. Cepsa will also look to obtain capability to supply marine biodiesel blends exceeding 25pc biodiesel content by the end of the year, delegates heard at the International Bunker Conference (IBC) 2024 in Norway. This also follows plans by Cepsa to build a 500,000 t/yr HVO plant in Huelva , set to start production in the first half of 2026. Argus assessed the price of class II HVO on a fob Amsterdam-Rotterdam-Antwerp (ARA) basis at an average of $1,765.54/t in April so far, a premium of $906.41/t to marine gasoil (MGO) dob Algeciras prices in the same month. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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