EPA probes US biofuel producers' UCO supplies
The US Environmental Protection Agency is auditing used cooking oil (UCO) supply chains of domestic renewable fuel producers to verify whether the feedstock qualifies under the Renewable Fuel Standard (RFS).
Under the RFS, EPA requires renewable fuel producers to submit UCO collection points that are used for biofuels production. Among other inspections, EPA is evaluating those UCO collection locations, the agency said on Wednesday.
After the EPA announcement, current-year biomass-based diesel D4 RINs traded as high as 60.5¢/RIN, which was 5.75¢/RIN higher than Tuesday's closing. Activity on renewable feedstocks was minimal on Wednesday, making it harder to gauge market reaction.
"These inspections and any follow-up investigations are part of EPA's routine evaluation of compliance with RFS under the Clean Air Act and reflect the agency's commitment to a stable RFS program that strengthens the nation's energy independence, advances low-carbon fuels, and supports agricultural communities," EPA spokesperson Tim Carroll said. The agency could not discuss the number of inspections, facility identities, and dates of the inspections, he said.
A coalition of US farm groups recently called on the Biden administration to restrict biofuels produced with foreign feedstocks from qualifying for a new tax credit as US imports of UCO continue to increase. The group argued that the imports are displacing US feedstocks.
US lawmakers also asked the administration to provide more visibility on the UCO supply chain and requested clarity from EPA on how they are ensuring that UCO imports are not blended with palm oil.
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Cop 29 boost key to setting much-awaited 2035 targets
Cop 29 boost key to setting much-awaited 2035 targets
London, 9 September (Argus) — As focus shifts to setting new emissions-reduction targets for 2035 against a backdrop of under-promised and undelivered 2030 goals, November's UN Cop 29 climate talks in Baku, Azerbaijan, will need to provide the much lacking fuel to power the previous summit's ideals. Countries will be expected to submit their next nationally determined contributions (NDCs) to the Paris climate agreement — emissions cut targets, this time for 2035 — in November-February, as part of a cycle that requires countries to "ratchet up" their commitments every five years. Denmark's climate minister Dan Jorgensen said this year forthcoming NDCs "have to be informed by the decisions [at Cop 28] in Dubai and will be measured on their meaning". The global stocktake signed there last year included an energy section calling for "transitioning away from fossil fuels in energy systems", a tripling of renewable capacity by 2030 and for "accelerating action in this critical decade", giving the direction countries need to take in the energy transition. But the agreement has little momentum. Although some countries, including the UK, have signalled they have made a start on their 2035 plans, work remains very much in progress. The UAE, Azerbaijan and Brazil — the so-called Cop presidencies troika — in July encouraged parties to "step up the work" ahead of Cop 29, calling on "early movers" to signal their commitments as early as this month. Among major emitters, the EU has yet to set its 2035 targets, although the European Commission has proposed a goal to reduce greenhouse gas emissions by 90pc by 2040 from a 1990 baseline. The US said it would develop an "ambitious" new plan within the UN deadline. But any developments will hinge on the results of the country's election taking place just days before Cop 29 starts. And China recently unveiled new guidelines, but stopped short of issuing new targets. Shaky foundations Countries will need to increase previous ambition levels significantly for the new targets to be sufficient. Even if all 2030 plans submitted up to 25 September last year were implemented, emissions reductions would still be at least 11bn t of CO2 equivalent (CO2e) short of what is needed to limit global warming to 2°C above pre-industrial levels, and 19bn t of CO2e short for 1.5°C — the temperature goals set out in the Paris Agreement — according to the UN. Australia was the sole G20 member on track to meet its 2030 target for outright emissions reductions as of last October, according to IEA analysis. And only Australia, Canada, Japan, Russia, South Korea, the US, EU, UK and Brazil have outright emissions-reduction targets. Other G20 members are either measuring their emissions against business-as-usual scenarios or capping them at a specified level, which leaves space for further increases. Room for manoeuvre grows ever smaller, with an 80pc likelihood that the average global temperature across one of the next five years will breach the 1.5°C target, according to the World Meteorological Organisation. Last year was the warmest on record, averaging 1.45°C above pre-industrial levels. Cop 29 could be the catalyst needed to step up action, particularly for countries that would struggle financially to implement stricter measures. Parties will agree a new climate finance goal at the summit and resume talks on the outstanding elements of carbon market mechanisms under Article 6 of the Paris deal, another way in which mitigation outcomes and finance can be transferred between regions. But success hinges, as ever, on high levels of co-operation between countries with conflicting interests, something that has already seen Article 6 disagreements rumble on for years. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Methanex to acquire OCI’s methanol business for $2bn
Methanex to acquire OCI’s methanol business for $2bn
Houston, 9 September (Argus) — Methanol producer Methanex announced Sunday that it will acquire OCI's international methanol business for $2.05bn. As part of the transaction, Methanex will acquire four primary assets, including a 910,000 t/yr methanol facility and 340,000 t/yr ammonia facility in Beaumont, Texas. Methanex will acquire OCI's 50pc interest in the 1.7m t/yr Natgasoline methanol plant in Beaumont. The acquisition of Natgasoline is subject to a legal proceeding between OCI and Proman, the other 50pc holder in Natgasoline, over certain shareholder rights. If the dispute is not resolved within a certain period, Methanex has the option to exclude the purchase of the Natgasoline joint venture and proceed with the rest of the transaction. The transaction also includes OCI HyFuels, a producer of green methanol products such as biomethanol and bio-MTBE, and trading and distribution capabilities for renewable natural gas (RNG) and ethanol. Additionally, Methanex will acquire an idled 1m t/yr methanol facility in Delfzijl, Netherlands. The purchase price includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million and the assumption of about $450 million in debt and leases. The acquisition of fertilizer producer OCI began over a year ago, according to OCI officials. "We identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023," OCI executive chairman Nassef Sawiris said. This acquisition moves Methanex, primarily a methanol maker, into the ammonia sector. "From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing," Methanex CEO Rich Sumner said. The deal is expected to close in the first half of 2025. The transaction has been approved by the boards of directors of the two companies and is now awaiting certain regulatory approvals and other closing conditions. The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
East-west marine biodiesel spread near six-month low
East-west marine biodiesel spread near six-month low
London, 6 September (Argus) — The east-west marine biodiesel spread narrowed amid firm demand for the B24 blend in Singapore and lacklustre spot marine biodiesel demand in northwest Europe in recent sessions. The east-west marine biodiesel spread — the premium held by B30 used cooking oil methyl ester (Ucome) dob ARA to B24 Ucome dob Singapore — was marked at $47.50/t on 5 September, its narrowest since 19 March. The spread narrowed amid a noted increase in demand from Asian-based shipowners who embark on voyages to Europe ahead of the implementation of FuelEU Maritime regulations in Europe next year — according to market participants. The latter had also reported an increase in B24 demand in Singapore from containerships seeking scope 3 emissions rights that can then be passed on to cargo owners. Scope 3 emissions rights can be obtained on a mass-balance system, allowing shipowners flexibility with regards to the port at which a blend can be bunkered. Argus assessed B24 dob Singapore prices at an average of $720.70/t on 1 July–5 September this year, compared with $757.70/t on 8 February–28 June following the launch of the B30 Ucome dob ARA price on 8 February. Consequently, the east-west marine biodiesel spread was marked at an average of $95.34/t on 1 July–5 September, compared with $74.57/t on 8 February–28 June. A wider east-west spread would incentivise shipowners to opt for the B24 blend in Singapore rather than ARA, when operationally viable, to meet the voluntary scope 3 demand from their customers. Rising demand in the Singapore bunkering hub was further supplemented by higher sales of marine biodiesel blends at the port. According to official data released by the Maritime and Port Authority of Singapore, sales of marine biodiesel blends in the second quarter of the year were marked at about 161,400t — higher by 34,500t from the previous quarter. This was also higher by 52,600t from the second quarter of last year. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Singapore’s SP to launch 240MW solar project in China
Singapore’s SP to launch 240MW solar project in China
Singapore, 6 September (Argus) — Singapore's state-owned utility SP plans to start up a 240MW peak (MWp) agrivoltaic project in Guangdong province's Huizhou city, which will be fully operational by the end of this year. MWp refers to the maximum power output potential a solar farm has when reaching ideal conditions. SP expects the project to generate 7.5bn kWh of green electricity over the next 25 years, reduce coal use by 920,000t and avoid 4.46mn t/yr of carbon emissions. The project's solar installation capacity is 240MW, and marks SP's largest solar investment in China, the company said on 5 September. SP has secured 1.45GW of solar projects in China to date, spanning 18 provinces and municipalities. SP in May also partnered with China environmental technology solutions provider Qingdao Daneng Environmental Protection Equipment to invest and build a 90MW aquavoltaic farm in Qingdao city. This will power a green hydrogen facility in Qingdao, likely referring to Chinese refiner Sinopec's 4,500 t/yr facility . The solar project has an investment value of over 76mn Singapore dollars ($58.5mn) and is on track to connect to the grid by the end of the year. SP expects it to produce 162mn kWh/yr of green electricity and reduce carbon emissions by 160,000 t/yr. The operational model will incorporate renewable energy generation, grid integration, demand-side management, and energy storage. SP's first investment in solar assets was in June 2023, for 78MWp of agrivoltaics assets across four agricultural sites in the Dabu county of Meizhou city in Guangdong province. The project will generate 91.3GWh/yr of clean electricity, and reduce coal usage by almost 30,000t, which amounts to cutting more than 91,000 t/yr of carbon emissions. The operational date of this project was not disclosed. SP in May entered a strategic alliance with Shanghai-based CMB Financial Leasing to obtain financing services, which is expected to reach up to 8bn yuan ($1.13bn) over the next three years, to support the firm's deployment of renewable energy solutions in China. The projects will span utility-scale solar farms, distributed solar photovoltaic, energy storage, and district cooling and heating. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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