Singapore's MPA, IEA unite on maritime decarbonisation
The Maritime and Port Authority of Singapore (MPA) and the IEA have signed an initial deal to push the transition to zero and near zero emission fuels, while working on technology as well as digitalisation to meet the maritime decarbonisation agenda.
The agreement, signed by MPA chief executive Teo Eng Dih and IEA executive director Faith Birol, was announced at the Singapore Maritime Week 2024 (SMW) this week.
"Greater international collaboration in maritime and energy industries is critical for international shipping to meet international decarbonisation goals," Teo said.
"Shipping is one of the hardest sectors to decarbonise and we need to spur development and deployment of new technologies to slow and then reverse the rise in its emissions," said IEA chief economist Tim Gould. "This will require strong collaboration at a national and international level."
Training programmes will be built to support the adoption of new fuels. There will also be partnerships made towards fuel-related projects and initiatives such as the International Maritime Organisation-Singapore NextGen project.
The IEA plans to open its first regional co-operation centre in Singapore, which will be its first regional office outside of its headquarters in Paris, France.
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Competitive SAF prices, policy needed to scale market
Competitive SAF prices, policy needed to scale market
Monterey, 16 September (Argus) — Efforts to scale the US sustainable aviation fuel (SAF) market will hinge on the industry's ability to narrow the price premium to conventional jet fuel, an impossible task without expanded policy and a coordinated industry focus, stakeholders said today. "The final frontier of scale is cost," SGP Bioenergy chief executive officer Randy Delbert Letang said at the Argus North American Biofuels, LCFS and Carbon Summit. Airlines are ultimately concerned with the economic feasibility of low carbon fuels versus conventional, Letang said, adding that where finer details on the road to the lowest-cost and -carbon SAF are concerned, they don't necessarily want to "know or see how the sausage is made". Fellow panelists deemed advancement in feedstock technology, risk mitigation for investors and lenders and a coordinated industry effort as essential in scaling SAF in the US and abroad via the lowering of SAF prices. Incentive programs such as Low Carbon Fuel Standard (LCFS) programs across the west coast, and the potential for expansion into other states, are one way to narrow the gap. But those present opposed restrictions on incentives between renewable feedstocks, such as those recently proposed for diesel alternatives in California, and agreed the market remains in too early a stage for complicating incentives. To narrow the scope of the aviation industry's carbon-reduction discussion to specific feedstocks and their respective carbon intensity scores could "let perfect be the enemy of good," said Eric Holle, Phillips 66's renewable fuels commercial optimization manager. As SAF projects are alternately proposed and shuttered , panelists emphasized a need for the industry to mitigate but ultimately accept the risks inherent to an adolescent and quickly evolving market. Ensuring the industry's narrative is consistent will be key in the next few years to convincing investors and lenders to accept that risk, Letang said. Reducing the carbon footprint of conventional petroleum fuels via blending biofuels, as well as expanding the applicability of those fuels — to the maritime and aviation industries, as example — is the best focus of industry efforts in the near term, he added. By Jasmine Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US SAF stakeholders call for coordinated support
US SAF stakeholders call for coordinated support
Monterey, 16 September (Argus) — Government needs to provide stronger and more harmonized regulation to encourage sustainable aviation fuel (SAF) production in the US, according to a number of industry stakeholders. The high cost of SAF compared with conventional jet fuel requires federal and state regulatory policy to help minimize risks for SAF plant investors, said Bruce Fleming, chief financial officers of SAF producer Montana Renewables at the Argus North American Biofuels, LCFS and Carbon Summit today. But while there is broad support, a "tapestry of different regulations, with important details materially at odds" is creating an unstable regulatory environment, he said. Producers have a roughly 10-year recovery period on investments, according to Fleming, so investors require long-term certainty of their return through offtake agreements and support from lawmakers, but this has thus far been inconsistent . On a federal level, there's a "donut hole" in the proposed switch in incentives from the current blenders' tax credit to the new 45Z clean fuel production tax credit which is due to be implemented from 1 January 2025, said Fleming. But detailed guidelines for the new credit have not yet been released, and it is only guaranteed until 2028, rather than for the 10 or more years that would smooth investors' risk profile. Meanwhile the Environmental Protection Agency has signaled it will miss its statutory deadline to [finalize 2026 biofuel blending targets , creating further confusion, Fleming said. Mismatch internationally, locally US policies are also somewhat at odds with other regions, notably the EU which is mandating 2pc SAF in the jet fuel mix from next year, which could draw US volumes away from the domestic pool. On a local level, different US states are going at different speeds with regards to their low carbon fuel standard programs and the feedstocks they will accept, injecting further complexity in the calculations for SAF producers and airlines. Illinois, for example, is implementing a $1.50/USG credit but is capping the volume of soybean-derived SAF and making it only available to airlines operating in the state rather than producers — at odds with similar schemes in California, Washington and Oregon. Tax incentives also need tweaking to encourage flexibility in manufacturers to produce SAF rather than renewable diesel, said Sean Newsum, Airlines for America Managing Director of Environmental Affairs. Renewable diesel consumption has grown so quickly in markets such as California because the mix of RINs and LCFS credits essentially meant customers are paying no premium for the product over fossil fuel diesel, Newsum said. Now even stronger incentives are required to lower the final cost airlines are paying for SAF to close the price gap over jet fuel, and push producers towards renewable aviation rather than road fuels. The uncertain regulatory environment means the US is due to fall far short of its SAF Grand Challenge target to supply 3bn USG/yr in the domestic market by 2030, according to speakers at the conference and Argus analysis, rising up to 35bn USG/yr by 2050. There is 3.5bn USG/yr of SAF production capacity planned by 2030, according to Argus data, but only around 90mn USG/yr is currently operational and 535mn USG/yr of the planned projects are categorized as "firm" — meaning there is a relatively high degree of confidence they will move forward. The rest are either seen as only "provisional" or "very provisional" given the difficulty in answering the risk questions posed. By Amandeep Parmar Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil's Parana ports handle record cargo in Aug
Brazil's Parana ports handle record cargo in Aug
Sao Paulo, 16 September (Argus) — The Paranagua and Antonina ports, in Brazil's southern Parana state, handled a record amount of cargo in August thanks to increased fertilizer imports. The two ports handled 6.9mn metric tonnes (t) of cargo in August, up by 14pc from the same month in 2023 and above the prior record of 6.6mn t in June, according to Parana's port authority data. That also surpassed July's handling by 20pc. Imports totaled 2.5mn t last month, a 41pc hike from August 2023 and above the 2.2mn t handled in July. Fertilizer imports increased by 59pc to 1.2mn t in August from a year before and were 29pc — or 265,170t — above the prior month's imports. Exports reached 4.4mn t, up from 4.3mn t in August 2023 and a near 27pc increase from July's exports. Soybean shipments rose by 10pc to 1.9mn t in August from the same month last year. That was also above the 1.3mn t exported in the previous month. Corn exports decreased by 77pc to 72,900t, down from 316,430t shipped in August 2023 and almost in line with July's exports. Exports of bulk sugar increased by 34pc to 836,430t last month from the same period a year ago. That was also up by 77pc from July's exports. Parana ports handled 46.4mn t in January-August, up by 10pc from the same period in 2023, also boosted by higher imports. Imports increased by 23pc to 17.2mn t. Fertilizer imports rose by 14pc to 6.9mn t, up from 6mn t in January-August 2023. Exports totaled 29.2mn t, a 4pc increase from the same eight months last year. Soybean shipments rose by 11pc to 11.2mn t in the period, while corn exports dropped by 80pc to 581,730t from the same eight-month period in 2023. Wheat exports in January-August more than tripled to 171,830t from the same period a year before. Sugar shipments increased by 46pc to 4.2mn t. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
NGL pipeline burning in La Porte, Texas: Update
NGL pipeline burning in La Porte, Texas: Update
Houston, 16 September (Argus) — A natural gas liquids (NGL) pipeline operated by Energy Transfer Partners caught fire in La Porte, Texas, this morning, sending a bright orange plume of flame hundreds of feet into the air and leading to evacuations of nearby homes and businesses. The fire started at a valve station for a 20-inch NGL line, Energy Transfer said, located in a right-of-way shared with a number of other pipelines and high voltage power lines about 17 miles southeast of downtown Houston. Energy Transfer said the line has been isolated so that the residual product in the line can safely burn itself out. "We have no timeline at this point on how long that process will take, but we are working closely with local authorities," the company said. In a broadcast press conference today La Porte officials said it would likely be many hours until the fire burns out. Energy Transfer said it was aware of reports indicating that an unknown passenger car entered the right-of-way and struck the valve location. A vehicle could be seen very close to the flaring pipeline in video broadcasts of the fire this morning. The fire was first reported at 11:24am ET by the La Porte Office of Emergency Management via the X social media platform. The fire is near the intersection of Somerton Drive and Spencer Highway. First responders, including Harris County hazardous materials officials, were on the scene at the time of the post. The right-of-way includes a refined products pipeline system, various petrochemical pipelines, a Shell butadiene line, a Chevron ethylene line and an Enbridge Energy natural gas pipeline. Chevron said its pipeline was not affected by the fire. A shelter-in-place order has been issued for the nearby San Jacinto College campus and La Porte is recommending an evacuation of all homes and businesses between Luella and Canada roads. By Michael Camarda and Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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