Unease at 'limited' EU bioenergy growth projections

  • Spanish Market: Biofuels, Biomass
  • 18/09/20

The European Commission's "limited" projection for bioenergy consumption growth out to 2030 is concerning, and the commission's focus on minimising use of whole trees for bioenergy is "troubling", according to industry association Bioenergy Europe.

An impact assessment accompanying the commission's proposal for a new 55pc greenhouse gas (GHG) reduction target for 2030 envisages only "limited" biomass consumption growth, even if the power sector more than doubles its use of bioenergy by 2050. The commission's assessment assumes 2030 consumption of around 150mn t of oil equivalent (toe), only slightly higher than today's 144mn toe. And the commission's scenarios see 93pc of bioenergy used being produced domestically in both 2030 and 2050, with imports rising only slightly from 2020 to 2030, when they will reach no more than 8mn toe.

Bioenergy Europe breaks down current final bioenergy energy consumption at 119mn toe — 16mn toe for power, 15mn toe for transport and the remainder for heat. It sees use for heat rising by 26pc by 2030, against 2018 levels, with all uses at 160mn toe. But it is up to member states' to stipulate bioenergy's place in the energy mix, the association said. Bioenergy is by far the largest contributor to the EU's renewables share, at almost 60pc.

More generally, Bioenergy Europe welcomed the upwards revision to the EU's GHG emissions reduction target for 2030 — to 55pc from 40pc — as well as the inclusion of road transport and building sectors in the emissions trading system.

But it said it regrets the wording used in policy documents — specifically, the commission signalling the need to "minimise the use of whole trees and food and feed-based crops to produce energy". Bioenergy Europe called the term "whole trees" troubling, and said it is an arbitrary and emotive designation not related to a particular forest product or grade of wood.

The terminology could have policy implications, notably when the commission next year revises biomass sustainability criteria in the EU's 2018 renewable energy directive.

The commission's impact assessment also indicates long-term policy directions with respect to the 2050 timeframe, underlining the benefits of coupling the use of solid biomass with carbon capture and storage installations in the power and industrial sectors. With an eye to achieving carbon neutrality by 2050, and increasing land use, land use change and forestry carbon sinks, officials also suggest that biomass users could buy credits certifying carbon removals from forest or wetland owners inside and outside the EU.


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22/04/24

Brazil 1Q tallow exports triple on long-term contracts

Brazil 1Q tallow exports triple on long-term contracts

Sao Paulo, 22 April (Argus) — Brazilian beef tallow exports totaled 73,930 metric tonnes (t) in the first quarter, a three-fold increase from the same three-month period in 2023 on rising demand. Almost 93pc of outflows between January and March were shipped to the US, according to data from Brazil's trade ministry. Long-term contracts explain the rising flow of exports, even though spot market arbitrage was closed throughout the first quarter (see chart) . The price of tallow in the Paranagua and Santos ports was $960/t fob on 19 April, keeping the arbitrage closed to US Gulf coast buyers, where the reference product was at $901/t on a delivered inland basis. Brazilian tallow is also negotiated at a premium against soybean oil, which closed at $882/t fob Paranagua on 19 April. This scenario has been observed since the 1 December 2023 start of Argus ' tallow export price assessment. Historically, vegetable oil in Brazil was traded at a discount to tallow, but strong demand has boosted the price of animal fat. Some biodiesel plants have been purchasing used cooking oil (UCO) or pork fat as an alternative. In 2023, there were doubts about whether the outflow of tallow from Brazil would be constant. Market participants now believe that the 2024 start of operations at new renewable diesel refineries in the US should sustain exports. Local suppliers that have already signed supply guarantee contracts — some up to three years — with American buyers are also considering export opportunities with Asia, including a new renewable diesel plant in Singapore that could receive Brazilian cargoes. Expansion projects are propelling US demand, including work that would bring capacity at Marathon Petroleum's Martinez Renewables plants in California to 2.35mn m³/y (40,750 b/d)and the Phillips 66 Rodeo unit in northern Californiato 3mn m³/y. These and other new projects will increase annual US demand for tallow by 5mn t. Maintenance on the horizon Maintenance at US refineries has Brazilian sellers bracing for a short-term drop in prices. Between May and June the Diamond Green Diesel (DGD) unit in Port Arthur, Texas, will shut down for maintenance, a stoppage that could impact demand for Brazilian inputs. Market participants have already observed a slight increase in domestic tallow supply, a change they attribute to maintenance at DGD. The advance of the soybean crop in Argentina is also expected to increase the supply of feedstocks to North American plants, as some refineries are returning to soybean oil after a hiatus of several years. The soybean oil quote on the Chicago Board of Trade (CBOT) is an important reference for the price of tallow. By Alexandre Melo Renewable feedstocks in Brazil on fob basis R/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US biodiesel faces poor production economics


19/04/24
19/04/24

US biodiesel faces poor production economics

Houston, 19 April (Argus) — US biodiesel producers are facing worsening production economics, as evidenced by a deteriorating correlation between the soybean oil-heating oil (BOHO) spread and biomass-based diesel D4 renewable information number (RIN) credits. Historically, tighter values in the BOHO spread, an indicator of soybean oil-based biodiesel production margins, have applied downward pressure to D4 RIN values, as biodiesel producers change their credit position, depending on the economics of their operation. But rising renewable diesel production has swelled the supply of D4 RINS, reducing credit values and making it harder for producers to monetize RIN credits, as the correlation between the two production factors deteriorates. Regression analysis measuring the effect of the BOHO spread on the next month's D4 price shows a decoupling of the relationship in recent years, with BOHO in the last two years about half as predictive of the change in D4 credit prices as it was in the years since 2016. The least correlated periods were in the fourth quarter of last year and the first quarter this year. In those quarters, the predictability of the BOHO spread came to 32pc and 34pc, respectively, meaning they were not predictive. The drop coincided with falling credit prices as substantial growth in renewable diesel production oversupplied the D4 RIN market. Unlike biodiesel, renewable diesel draws from a more diverse pool of feedstocks including beef tallow and used cooking oil, making renewable diesel production economics less dependent on soybean oil. D4 RINs have fallen at a faster rate than BOHO over the last year. D4 credits averaged 58.2¢/RIN in the first quarter, down by roughly two-thirds on the year, while BOHO narrowed by 49pc to 79.64¢/USG in the same period. D4 RIN equivalence, a 1.5x multiplier applied to the RIN value that factors in the amount of generated RINs/USG of biodiesel produced, averaged a 7.66¢/USG premium to BOHO in the first quarter, down from 87.73¢/USG a year earlier, leaving producers less room to profit from producing biodiesel. D4 RIN equivalence ended the first quarter at a discount to BOHO, averaging 9.6¢/USG less than BOHO from 6 March-31 March, and obligated parties have had trouble recouping production costs using RINs. Current production fundamentals could force smaller soybean oil-based biodiesel producers to reduce output in the second half of the year, as some producers have not reached purchase agreements for that period, according to market participants. Some facilities have closed. In March, Chevron REG announced the closure of two biodiesel plants in Wisconsin and Iowa "due to market conditions." By Payne Williams and Matthew Cope D4 Prices Vs BOHO Spread $ Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Amapá cancela regime especial de ICMS


18/04/24
18/04/24

Amapá cancela regime especial de ICMS

Rio de Janeiro, 18 April (Argus) — O Secretário da Fazenda (Sefaz) do Amapá (AP) cancelou ontem o regime especial de tributação de empresas importadoras de combustíveis, colocando um fim a uma situação que gerava distorções de preços no mercado de diesel . A decisão do órgão foi publicada no diário oficial desta quarta-feira, dia 17, e contempla os regimes especiais do tributo estadual ICMS de oito empresas, entre elas a Refinaria de Manguinhos, que pertence ao grupo Fit, Amapetro, Axa Oil, Alba Trading e Father Trading. No caso da Amapetro, a empresa pagava uma alíquota efetiva de 4pc do valor da importação nas compras de outros países para uso próprio para consumo dentro do estado. Considerando a média do indicador Argus de importação de diesel de origem russa ao longo de março, isso equivaleria a R$136,9/m³.O valor atual do ICMS nos outros estados brasileiros é de R$1.063/m³ desde 1 de fevereiro. O estado teria importado 197.244m³ de diesel em março, de acordo com informações do Ministério do Desenvolvimento, Indústria, Comércio e Serviços (MDIC). Isso equivale a 15,9pc do total de diesel importado pelo Brasil no mês. O consumo de diesel A do estado foi de 6.250m³ no mês passado, equivalente a 0,1pc do consumo nacional, de acordo com os dados da Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP). As autorizações do estado criavam distorções de preços no mercado e perdas de arrecadação fiscal em várias estados onde o produto acabava sendo consumido. Associações de produtores e distribuidores de diesel vinham pressionando o poder público nos últimos meses para derrubar esses regimes especiais. De acordo com o Instituto Combustível Legal, a medida causou um prejuízo de R$1 bilhão aos estados onde o combustível importado no âmbito do regime especial era efetivamente consumido, citando os estados de São Paulo, Paraná e Pernambuco como principais destinos. No início do mês, a Refina Brasil, que reúne as refinarias de petróleo independentes do país, estimou que o contribuinte amapaense pagava um valor próximo a R$0,83/l em subsídios para importadores. Por Amance Boutin Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

Conab: Safra de cana-de-açúcar bate recorde


18/04/24
18/04/24

Conab: Safra de cana-de-açúcar bate recorde

Sao Paulo, 18 April (Argus) — A moagem de cana-de-açúcar da safra 2023-24 foi a maior da história do país, em meio a condições climáticas favoráveis e investimentos no setor, de acordo com dados da Companhia Nacional de Abastecimento (Conab). O processamento total de matéria-prima da safra de 2023-24, entre abril de 2023 e o mesmo mês deste ano, totalizou 713,2 milhões de t, alta de 16pc em comparação a 610,8 milhões de t na temporada anterior. As áreas destinadas à atividade canavieira aumentaram 0,5pc, para 8,3 milhões de hectares (ha). A maior disponibilidade de matéria-prima estendeu as operações de moagem – que normalmente param em novembro – até dezembro em importantes estados produtores, como São Paulo. Produção de etanol Tanto a produção de etanol quanto a de açúcar cresceram, segundo a Conab. A produção total de etanol do Brasil – excluindo o biocombustível à base de milho – atingiu 29,6 milhões de m³, salto de 11pc na base anual. O etanol hidratado representou a maior parte do crescimento do processamento este ano, totalizando 17,6 milhões de m³, aumento de 16pc em relação ao ciclo anterior. A paridade favorável para o E100 frente à gasolina na bomba nos principais estados consumidores impulsionou a demanda pelo biocombustível na temporada. Já a produção de etanol anidro subiu 6,5pc, para 12 milhões de m³. O processamento de etanol à base de milho avançou 33pc, registrando 5,9 milhões de m³, com crescentes investimentos no setor tanto no Centro-Sul quanto em outras regiões. O anidro de milho subiu 45pc, para 2,2 milhões de m³. Para o hidratado, o resultado foi de 3,6 milhões de m³, alta anual de 26pc. O Brasil exportou 2,5 milhões de m³ de etanol na temporada de 2023-24, queda de 2,9pc em comparação à safra passada. Os Estados Unidos foram os maiores compradores do biocombustível, com 33pc dos embarques. Em seguida, a Coreia do Sul e o hub Amsterdã-Roterdã-Antuérpia (ARA) responderam por 17pc e 12pc, respectivamente. Já as importações de etanol caíram 43pc em comparação ao ano anterior, somando 215.000m³. Quase todo o produto chegou dos EUA e do Paraguai, que representaram 55,5pc e 44,3pc do volume total. Enquanto isso, a produção de açúcar aumentou 24pc, para 45,6 milhões de t, com usinas direcionando mais matéria-prima para o adoçante em meio a preços atrativos para a commodity no mercado internacional. O Brasil exportou 35,2 milhões de t de açúcar de abril a março, alta de 26pc no ano, em um cenário em que grandes exportadores, como Índia e Paquistão, diminuíram as entregas. China, Índia e Indonésia foram os maiores importadores do produto brasileiro. Por Laura Guedes Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

TUI Cruises receives methanol-ready ship


18/04/24
18/04/24

TUI Cruises receives methanol-ready ship

New York, 18 April (Argus) — Cruise ship company TUI Cruises took delivery of a methanol-ready cruise ship which will start operations at the end of June. Methanol-ready vessels allow ship owners to easily retrofit their vessels to burning methanol in the future. The 7,900t deadweight Mein Schiff 7 will operate in the North Sea, the Baltic Sea, along the European Atlantic coast and in the Mediterranean and run on marine gasoil (MGO). It was built by Finland's Meyer Turku shipyard. In January, TUI Cruises signed a memorandum of understanding with trading company Mabanaft for future supply of green methanol. Mabanaft would cover TUI's methanol needs in northern Germany, and gradually add other European locations. Grey methanol was pegged at $717/t MGO equivalent and biomethanol at $2,279/t MGOe average from 1-18 April in Amsterdam-Rotterdam-Antwerp. About 0.9 times and 2.9 times, respectively, the price of MGO, Argus assessments showed. TUI Cruises is a joint venture between the German tourism company TUI AG and US-based cruise ship company Royal Caribbean. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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