South Korea to boost domestic biofuels use
South Korea plans to expand domestic biofuels use through adopting marine biofuel by 2025, sustainable aviation fuel (SAF) by 2026 and raising its 2030 biofuels blending mandate in the diesel pool.
The country's trade, industry and energy ministry (Motie) announced the measures from its draft Eco-friendly Biofuel Development Measures on 13 October.
Laws should be amended in 2023 to enable SAF and marine biofuels to be introduced in the middle of the decade, according to the plan. It also calls for a "swift" demonstration process to ensure its timeline for aviation and maritime biofuels can be met, implying it will be targeting the use of domestically produced SAF and bio marine fuels to meet future mandates.
Biofuels mixing in the diesel pool should rise to 8pc by 2030 from its current 5pc by 2030 target. This will be achieved by blending 3pc hydrotreated vegetable oil on top of 5pc biodiesel, because of concerns that higher methyl ester biodiesel blends may cause engine start-up defects in winter. South Korea currently mandates 3.5pc biodiesel blending in diesel until the end of 2023.
Besides the mandates to spur demand, the ministry outlined several measures to boost and integrate biofuels production in South Korea.
Motie has scheduled a prefeasibility study in 2024 to study ways to scale up and integrate biofuels technology, with topics likely to include production of bio-naphtha, biofuel production efficiency and feasibility of advanced feedstocks like microalgae, according to the plan.
A public-private committee will be formed to assess progress on the biofuels strategy and develop joint projects.
The government will support setting up an system to align raw material suppliers with biofuels producers and assist companies' overseas feedstocks purchases.
Related news posts
Falling D4 RIN values alter RD strategy
Falling D4 RIN values alter RD strategy
Houston, 14 May (Argus) — Soaring US renewable diesel production is cutting renewable fuel credit prices and pressuring biofuel production margins, potentially curbing industry growth. Renewable diesel (RD) production in North America last year jumped by 36pc to a record 3.45bn USG, and output this year is expected to climb by another 28pc to 4.43bn USG, according to Argus estimates. Rising production has cut the value of biomass-based diesel D4 credits, or renewable identification numbers (RINs), by 75pc over the past year, as credit generation from renewable diesel production has outpaced the the US Environmental Protection Agency's (EPA) biofuel blending targets. D4 RINs credits reflect compliance costs of biofuel that has been blended with diesel, used by fuel suppliers in accordance with the EPA's annual Renewable Fuel Standard (RFS) mandates. They also act as an incentive for renewable fuel production, as producers can sell RINs once their biofuels are blended with conventional road fuels. Lower prices on D4 RINs generate less revenue for the biofuels industry and also reduce compliance costs for obligated parties. Some refiners have shifted their strategic focus to compensate for lower RIN values, with some cutting back on renewable fuels production. Vertex Energy plans to idle renewable diesel production at its Mobile, Alabama, facility as the company anticipates generating wider margins by returning a converted hydrocracker back to fossil fuel production. Vertex remains open to restarting its renewable diesel production if market conditions improve. CVR Energy is considering changing feedstocks to improve its renewable diesel margins, possibly substituting corn oil for soybean oil. Chevron has shared similar sentiments, saying feedstock flexibility can be a major advantage across its operations. The company recently closed two biodiesel facilities in the US midcontinent as attention shifts to more profitable renewable diesel in the long term. Valero is nearly finished converting its renewable diesel unit to sustainable aviation fuel (SAF) at its Diamond Green Diesel joint venture facility in Port Arthur, Texas. The venture with Darling Ingredients is the largest producer of renewable diesel in North America and a major contributor to the increase in supply over the past two years. Valero views the D4 RIN market as in persistent oversupply due to the growth of renewable diesel, but the company remains optimistic due to other clean fuels incentives, including state-level low carbon fuel standard (LCFS) programs that provide incentives for reducing the carbon intensity of transportation fuels. "The long-term outlook of RD is still positive, because you look at the number of LCFS programs that are still being contemplated by legislation this year," Valero executive vice president Gary Simmons said. More renewable diesel capacity is expected to come online by the end of this year. Marathon Petroleum's Martinez, California, refinery is undergoing a full conversion from conventional petroleum refining to renewable fuels and is currently running at 50pc of capacity. Phillips 66 has taken a similar approach with the conversion of their Rodeo, California, plant, with 30,000 b/d of renewable diesel online. With EPA biofuel blending targets fixed through 2025, an aggregate decrease in renewable diesel production and subsequent lower generation of D4 RINs could counter the weakened RIN prices that are contributing to the industry's depressed production margins. By Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US court upholds RFS blending targets for 2020-22
US court upholds RFS blending targets for 2020-22
Washington, 14 May (Argus) — A federal appeals court has affirmed biofuel blending requirements for 2020-22 under the Renewable Fuel Standard (RFS), rejecting lawsuits from refineries and renewable fuel producers challenging the standards. The US Environmental Protection Agency (EPA) acted within its authority in the rule when it revised the biofuel blending targets to account for small refinery exemptions it expected it would award in the future, the US Court of Appeals for the DC Circuit said today in a 2-1 ruling. The court rejected a complaint by refineries that argued EPA could only revise the annual biofuel blending targets based on exemptions it had already approved in the past. "The statute does not confine EPA to the Refiner Petitioners' preferred method of accounting for small refinery exemptions," DC Circuit judge Cornelia Pillard wrote on behalf of the majority. "EPA's choice to account for them both retrospectively and prospectively is not arbitrary or capricious." The ruling leaves intact a 2022 rule that required renewable fuel blending to increase to 20.63bn USG by 2022, up from 17.13bn USG in 2020. For the first time under the RFS, the rule used a new formula that tried to avoid a recurrent issue under which EPA failed to account for upcoming requests from small refineries for exemptions from the RFS. EPA has subsequently decided to start denying all small refinery exemptions, under a new argument that small refiners do not face a disproportionate hardship from complying with the RFS. But if the courts throw out that finding in a pending lawsuit , the formula at issue in today's court ruling could take on a greater relevance for how EPA accounts for small refinery exemptions when setting biofuel blending targets. The DC Circuit rejected a separate lawsuit by cellulosic ethanol producers that said EPA should have required increased blending of cellulosic ethanol, based in part on the availability of carryover compliance credits. The court found EPA had adequate authority to waive volumetric targets set by the US Congress in 2007 based on its finding there were inadequate domestic supplies of the fuel, which is produced from plant fibers. Judge Gregory Katsas, who dissented from the ruling, said he believed the biofuel blending requirements for 2022 were set "arbitrarily high." Katsas cited EPA's finding that those standards would impose an estimated $5.7bn in additional costs for fuel but only deliver $160mn in energy security benefits. Katsas also faulted EPA for increasing the biofuel blending targets by 250mn USG in 2022 to "cancel out a legal error" from biofuel blending targets in 2016. Katsas said there was no authority to transfer volume requirements from one year to another. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
HVO-Zulassung steht bevor
HVO-Zulassung steht bevor
Hamburg, 14 May (Argus) — Die Zulassung von HVO zum freien Verkauf an deutschen Tankstellen steht laut dem BMUV kurz bevor. Die Zahl der Tankstellen, an denen HVO bereits erhältlich ist, wächst. Eine Sprecherin des Bundesministeriums für Umwelt- und Verbraucherschutz (BMUV) bestätigte gegenüber Argus , dass die Zulassung von HVO durch die Veröffentlichung der Novelle der 10. Verordnung zur Durchführung des Bundes-Immissionsschutzgesetzes (10. BImSchV) bevorsteht. Die Novelle liegt dem Bundespräsidialamt zur Überprüfung vor, so eine Sprecherin des Amtes. Dies ist der letzte Schritt vor der Veröffentlichung im Bundesgesetzblatt. Unklar ist jedoch, ob sich die Veröffentlichung dadurch verzögern könnte, dass die Novelle des Saubere-Fahrzeuge-Beschaffungs-Gesetz zuerst veröffentlicht werden muss, was bisher noch nicht geschehen ist. Marktteilnehmer bereiten derweilen ihre Tankstelleninfrastruktur auf die Zulassung vor. Der Verein eFuelsNow e.V. verzeichnet etwa 150 Tankstellen in Deutschland, die schon HVO100 anbieten. In 2023 gab es in Deutschland laut Daten des Branchenverbands en2x etwa 14.500 Tankstellen, womit knapp 1 % aller Tankstellen bereits HVO führen. Die Tendenz ist dabei steigend; mehrere Anbieter haben bereits zusätzliche Standorte angekündigt. Der Großteil dieser Tankstellen befindet sich in Hessen, Baden-Württemberg, Bayern, Nordrhein-Westfalen und Niedersachsen. Einige Anbieter sind mittlerweile dazu übergegangen, HVO bereits vor der offiziellen Zulassung frei zu verkaufen, während andere Anbieter HVO weiterhin nur in geschlossenen Kundenkreisen über Clubs mit Zugangskarte verkaufen. Von Max Steinhau Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2024. Argus Media group . Alle Rechte vorbehalten.
Japan’s Daio Paper to explore biorefinery
Japan’s Daio Paper to explore biorefinery
Tokyo, 13 May (Argus) — Japanese paper manufacturer Daio Paper is planning a trial biorefinery, aiming to begin commercial production of sustainable aviation fuel (SAF), second-generation bioethanol and biodegradable plastic feedstock by the April 2032-March 2033 fiscal year. Daio, in partnership with domestic biorefinery venture Green Earth Institute (GEI), plans to develop technology to demonstrate manufacturing the bioproducts by 2030. Daio Paper plans to use wooden biomass, waste paper and paper sludge as feedstock. The company declined to disclose any planned commercial output capacity, as well as location of the biorefinery. The project is financed by Japan's state-owned research institute Nedo. Daio Paper is attempting to achieve decarbonisation, while weakening paper demand has forced the industry to seek new business opportunities. Fellow Japanese paper producer Nippon Paper has also tried to develop biorefinery technology with GEI, targeting to begin commercial production of bioethanol for SAF and petrochemical feedstock by 2027-28. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more