Finnish biofuels producer Neste said it restarted renewable diesel production at the expanded part of its Singapore plant in early August.
Production was shut down in June because of "unexpected equipment repairs" just after the completion of the expanded 2.6mn t/yr refinery in May.
But the ramp-up of production at the expansion refinery continues and is expected to be completed by the end of this year, with sustainable aviation fuel production scheduled to begin this quarter.
Houston, 26 June (Argus) — Several renewable fuel industry groups filed motions to intervene in support of the US Environmental Protection Agency (EPA) in an ongoing lawsuit filed against the agency regarding biofuel blending mandates. The Center for Biological Diversity (CBD) sued the EPA this year arguing the Renewable Fuel Standard (RFS) targets for blending biofuels with conventional road fuels pose potential harm to endangered species, along with extensive environmental and ecological risk via large scale agricultural production and supply chains required to produce biofuels. The suit filed through the DC Circuit Court of Appeals cites the recently finalized "Set Rule 2" that went into effect in March, which set mandated volumes of products like ethanol and biomass-based diesel products for 2026 and 2027. The CBD case was consolidated with others lawsuits filed by other environmental groups and trade groups, including the American Fuel and Petrochemical Manufacturers, who argue that the RFS poses an undue burden to the US' oil and gas industry — particularly small refineries. Multiple biofuel industry groups filed motions this week to intervene in support of the EPA. The Clean Fuel Alliance America, which represents producers of biodiesel, renewable diesel, and other D4-generating products, claims the RFS mandates make a positive impact on biofuel supply chains. The group notes in its filing that soybean prices are at two-year highs because of the RFS, which supports the entire agriculture sector supply chain. The Renewable Fuels Association, which largely supports domestic ethanol producers, argued in its filing that the production and profitability of its member companies would be directly harmed by a decrease in the volumes required by the Set 2 Rule. Growth Energy, which represents a range of industry stakeholders across low carbon fuels and agriculture, argued the EPA's RFS helps lower retail fuel prices, reduce emissions, and boosts energy security. "Under the Set 2, the RFS continues to work as Congress intended," chief executive Emily Skor said. "EPA has again finalized RVOs that advance important energy security, environmental, and economic development goals. EPA has also again finalized RVOs that pose no real threat to the continued operation of small refineries." No timeline for oral arguments has been set by the DC Circuit Court of Appeals at this time. By Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
London, 26 June (Argus) — The UK must accelerate support for sustainable aviation fuel (SAF) producers to unlock investment, meet its mandates, and boost energy security, according to Nova Pangaea chief commercial officer Jonathan Wood. The firm is developing a UK project to convert biomass residues into second-generation ethanol. That will fuel SAF production by LanzaJet, to supply International Airlines Group (IAG). Like many UK SAF proposals , Project Speedbird is behind its original timeline, not helped by policy delays. Argus spoke to Wood about energy security, policy asks, and carbon negative fuel. Edited highlights follow: Does recent jet fuel volatility strengthen the case for domestic SAF production? Jet fuel disruption and price spikes reinforce the case for diversifying energy supply. SAF is one way to achieve that, including domestic production. We should be realistic that some regions have more feedstock than others, but the UK can certainly increase production. But obviously, policies and investments made over the next 1-2 years will only bear fruit towards the end of the decade. I am not advocating for a domestic quota. It is about pace, so we should not complicate or change but rather focus on implementing already announced well set policy plans. Is your planned supply chain fully domestic? We have supply agreements for domestic woody biomass residue, so there is a strong domestic element. Biomass power generation is plateauing and may decline as support schemes fall away, creating feedstock headroom for SAF. We recognise the UK is not one of the largest biomass suppliers. We must also look at agricultural residues and nearby regions with ample biomass, like the Nordic region. Are current policies sufficient to support SAF? Policy must support both demand and supply. No single mechanism will create the tipping point. The UK is moving in the right direction. We have the SAF mandate, now the key is to move at pace on supply-side mechanisms such as the revenue certainty mechanism (RCM) to unlock final investment decisions (FIDs). Feedstocks for hydrotreated esters and fatty acids (HEFA) are limited, so we must ready production platforms to tap into other feedstocks as soon as possible. How many of the 10-15 UK SAF projects are actually near FID? Projects need to have completed front-end engineering and design to accurately understand capital costs and project economics, to have offtake agreements, and have the feedstock origination, and financing in place. These pieces are interlinked. You cannot sign offtake without clarity on costs and feedstock, and vice versa. Aligning that is challenging. Probably only a handful of projects could achieve that in the next 12 months. Is the delayed RCM slowing UK projects? There is a risk it could slow the projects that are most well progressed and closest to FID. The government talks about RCM legislation by the end of 2026, so the mechanism becomes available in early 2027. But then follows the selection process and contracting. It's unclear how long that will take but it won't be done by the first quarter of 2027. Given typical timelines of 2-3 years from FID to operation, we are now looking at FID in 2027–28 and operation around 2030. Given delays, how will the UK get advanced SAF in time for its 2027-HEFA cap? There's advanced SAF coming out of other regions, notably the US, and potentially China. There's nothing wrong with imports, but we also need local production for a diversified and resilient portfolio. Why has Nova Pangaea called this a critical moment for the SAF industry? If we do not move forward, doubts will grow around mandate delivery. That will increase pressure to dilute the mandates, which would destabilise the investment case. We should leverage this difficult jet fuel situation to get some FIDs over the next 12 months. We shouldn't waste a good crisis. HEFA has been led by traditional oil companies. But advanced SAF and e-fuels projects are typically developed by companies without the same balance sheets and therefore rely more on third-party finance to get through development and reach FID. There's billions of tonnes of biomass residue globally, creating an opportunity to boost SAF and income streams for rural and agricultural communities. But if we can't get FIDs over the next year, we'll risk not getting into that virtuous cycle that we need, of getting costs down as we scale up. What differentiates Nova Pangaea's technology? A key aspect is the biochar co-product when we make the ethanol. That is permanent carbon capture and enables carbon negative SAF — roughly twice the greenhouse gas (GHG) savings compared with 70-80pc typical for HEFA. The biochar will initially go into soil enhancement, compost, concrete, or asphalt. In coming years, it could also be used to aid water filtration or to make strong and lightweight materials, for example in aircraft. What is the longer-term opportunity for the technology? The UK project is our reference plant to show the technology works at commercial scale. The bigger opportunity is to deploy in regions with large volumes of biomass or agricultural residues, like North and South America, Asia, and parts of the global south. By Aidan Lea Nova Pangaea Project Overview Technology Pyrolysis of biomass to bioethanol for the alcohol-to-jet pathway Ethanol capacity (used for ATJ) 150,000t/yr FID target 2027-28 Production target year Circa 2030 Nova Pangaea Ethanol plant LanzaJet Manages alcohol-to-jet facility (80,000/yr SAF & 10,000t/yr renewable diesel) IAG Anchor customer for the ethanol and SAF finished product - Nova Pangaea Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Seattle, 24 June (Argus) — Renewable diesel producers along the US Gulf coast are increasingly selling into the Texas ultra-low sulphur diesel (ULSD) market as bulk demand slows across California — the largest R99 market in the country — in tandem with record-high US output of the fuel. Renewable diesel production at US biorefineries in May hit an all-time high of about 6.86mn bl, part of a steady increase since the beginning of the year following the implementation of record-high biofuels blending targets, according to the latest RIN generation data from the Environmental Protection Agency (EPA). Higher run rates through the second quarter, compounded by elevated and volatile diesel prices across the country, made California buyers hesitant to commit to high-volume R99 spot purchases as the market faced fresh supply. But Texas's 20¢/USG diesel excise tax abatement, applicable to renewable diesel, appears to have thrust the state — particularly Houston's fob truck spot market — into the spotlight as an attractive secondary supply outlet. Local market participants have cited R99 on offer from various Gulf coast producers throughout June, with the tax abatement now making renewable volume competitive with conventional ULSD in the region. Offers for R99 fob truck in Houston as recently as Wednesday morning were heard at July Nymex ULSD +9¢/USG, which a number of sources said represented about a 5¢/USG discount versus conventional ULSD once accounting for the excise tax abatement. Spot R99 via the pipeline in California by comparison last traded at double-digit discounts, 35¢/USG and 80¢/USG, respectively, to the corresponding Los Angeles and San Francisco CARB complexes (conventional in-state CARB diesel + attributes). By Jasmine Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Sao Paulo, 23 June (Argus) — Paraguay's industry and commerce ministry has set the country's mandatory biodiesel blend at 8-10pc, giving the market its first operational benchmark under the new biofuels framework. The decision, reached on 19 June, marks the government's first concrete move following this year's legislative change to Paraguay's biodiesel regime , which expanded the legal blending range to 5-20pc. By setting the initial operating band at 8-10pc, the government is moving above the previous mandate while stopping well short of the new statutory ceiling. The blend takes effect 30 days after its approval. The ministry framed the higher blend as part of a broader strategy to displace imported fuels with domestically produced biofuels, saying the shift would deliver economic and environmental gains, strengthen energy security and support efforts to mitigate climate change. The text also underscores the government's intention to provide the biofuels sector with a more predictable framework for investment. Paraguay's biofuels industry welcomed the decision. In a 23 June statement, the Paraguayan Chamber of Biofuels and Renewable Energies (Biocap) said the regulation marks an important step toward a more diversified energy matrix, greater national energy security and lower dependence on imported fuels. Biocap also said Paraguay has installed industrial capacity, feedstock availability and technical know-how to support further growth in biofuels. The industry group also sought to address compatibility concerns around higher blends, saying international experience shows biodiesel blends that comply with existing quality specifications are compatible with the normal operation of diesel engines. Biocap added that fuel quality and compliance with technical standards will be critical for sustainable sector growth. By Flavia Alemi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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