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Indonesia’s Pertamina gets ISCC certification for SAF

  • : Biofuels, Emissions
  • 24/08/23

Indonesia's state-owned Pertamina has obtained International Sustainability and Carbon Certification (ISCC) Corsia and ISCC EU RED-compliant certification for sustainable aviation fuel (SAF).

Pertamina's downstream arm Pertamina Patra Niaga obtained the certification as it is powering a domestic flight with SAF during the Bali International Air Show next month, said company sources. Following the air show, Pertamina also plans to encourage SAF adoption among its aviation customers, starting with those at the Ngurah Rai International Airport in Bali because of its high volumes of international flights. The Ngurah Rai aviation fuel terminal in Bali and Soekarno-Hatta Aviation Fuel Terminal and Hydrant Installation in Jakarta were the first locations to receive the certification.

Pertamina's customers will be able to claim reduced carbon emissions resulting from the use of SAF, hydrotreated vegetable oil and used cooking oil (UCO) purchased from the refiner, its director of central marketing and commerce Maya Kusmaya said. He added that Pertamina is the first operator in southeast Asia to market ISCC Corsia certified SAF.

But Pertamina's actual SAF production from palm and waste-based feedstocks such as UCO and palm oil mill effluent oil is likely to still start around 2026, when the second phase of its Cilacap "green refinery" is commissioned and comes on line, said a company source. It previously produced SAF and renewable diesel at its Cilacap and Dumai refineries but using refined, bleached and deodorised palm oil.

Pertamina awarded in July its first SAF import tender seeking 3,500 kilolitres of blended SAF for end-August delivery. The volumes will likely be used at the Bali International Air Show. The tender stated the blended SAF has a 30-40pc neat SAF component and the cargo must be Roundtable on Sustainable Biomaterials, ISCC Corsia or EU certified.

Indonesia's government had expressed at the end of May hopes to finalise a national roadmap and action plan for the industrial development of SAF by June. But there have been no updates so far, sources from Pertamina and another trader said. The country previously shared plans to announce a SAF roadmap-related presidential regulation on the sidelines of September's air show with no further details disclosed.


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25/02/18

Early RD investment helps refiners weather uncertainty

Early RD investment helps refiners weather uncertainty

Houston, 18 February (Argus) — Major conventional refiners are confident their early investment in renewable diesel will help ease their transition from the long-running biofuel blenders' credit to a new producers' credit, given the lower value they can capitalize on and potential objectives of the new US administration. These major refiners — including Chevron, Valero, Phillips 66, and Marathon Petroleum — have greater access to capital than smaller producers and have shown they can scale even in an uncertain policy environment. They are focusing on lower carbon intensity feedstocks that will garner greater incentives this year. At the same time, the industry has gradually shifted from a focus on biodiesel to renewable diesel. Renewable diesel generates more value from federal Renewable Identification Number (RIN) credits, is made more often from lower carbon intensity feedstocks like beef tallow and used cooking oil, and can be blended or substituted at higher rates than biodiesel. Refinery tooling needed for the production of renewable diesel is also much closer to that of a conventional crude-oil fed refinery, meaning that refiners looking to repurpose refining assets have an easier path to entering the renewable fuels space. As a result, major refiners across the industry have invested more heavily in renewable diesel in recent years. Marathon Petroleum chief commercial officer Rick Hessling alluded to policy uncertainty on an earnings call this month but said the company's 48,000 b/d California renewable diesel facility was well prepared to weather the storm. "We will control what we can control, and from a feedstock optimization perspective, we're procuring advantaged feedstocks with low [carbon intensities] and then placing them, as you would certainly expect us to, in the highest-margin market as possible," he said. Underscoring the advantage renewable diesel has over biodiesel, Chevron — after idling multiple biodiesel plants last year — also announced the final commissioning of the renewable diesel expansion at its Geismar, Louisiana, facility this month. The transition from biodiesel to renewable diesel within its portfolio opens up greater opportunities for monetization of the new biofuel producers' credit, also known as 45Z, since the facility has greater access to lower-carbon feedstocks than its landlocked biodiesel plants. In general, biodiesel facilities rely more on local vegetable oils for feedstock, which are disadvantaged under the new 45Z credit's larger subsidies for lower-carbon fuels. Over the last six months, biodiesel production facilities owned by Delek, Hero BX, and Renewable Biofuels have idled production or entered prolonged maintenance in the wake of credit uncertainty, according to latest Argus estimates. Especially given lower 45Z credit values this year, these producers have to rely on the generation and monetization of RIN credits to balance the costs of feedstock inputs. When policy shifts like tariffs and limits on the use of certain feedstocks disconnect RIN values from feedstock costs, it can add even greater headwinds that only larger, well-positioned producers can handle. Given President Donald Trump's objectives within the energy space, the 45Z tax credit,under the Inflation Reduction Act (IRA), and other biofuel policy incentives exist in somewhat of a contradiction. Trump has made clear he wants to scale back distribution of IRA funds and has gone as far as calling investment in decarbonization "wasteful" and "a scam." But his support base and platform favor major oil refiners in their quest to maximize output and profit in the name of energy security and job creation. The 45Z credit, which adds a protectionist spin to renewable fuel production by cutting off eligibility for imported fuels, would seem to align with Trump's focus on energy dominance. Major oil and gas companies expanding renewable fuel production and increasingly outcompeting smaller and foreign rivals only add to that narrative. By Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU rapeseed crush rose in Jan with Australian canola


25/02/18
25/02/18

EU rapeseed crush rose in Jan with Australian canola

London, 18 February (Argus) — European rapeseed crush volumes increased by 112,000t on the month in January. Soybean and sunflower seed crushing fell by 73,000t and 80,000t respectively, as EU and UK crushers took advantage of steady Australian canola imports. Rapeseed crushing rose by 7pc, mostly due to a strong start in Australia's canola export season, with much of the supply heading to Europe. Higher-than-average exports can be attributed to a large harvest, strong European demand and increased port capacity. High soybean oil prices helped make rapeseed oil more attractive in January. Soybean crushing fell by 5pc on the month, with high prices after the US issued guidance on the 45Z production tax credit to allow US low-carbon fuel producers to immediately start claiming credits, supporting demand for US soybeans and soybean oil. Month 1 CBOT soybeans futures reached a six-month high on 21 January, and month 1 CBOT soybean oil reached a two month high on January 17. Sunflower seeds made up just 13pc of total crushed oilseeds in the EU and the UK, down from a 2024 average of 16pc and a six-month low. Crush volumes fell significantly on the month and the year, by 16pc and 26pc respectively. Many Ukrainian sunflower crushing plants remained idle or operated at reduced rates in January, with lower demand for sunflower oil pressuring crush margins. By Madeleine Jenkins EU-27 + UK crushing volumes 1,000t January December % m-o-m change Jan-24 % y-o-y change Soybean 1,270 1,343 -5.4% 1,170 8.5% Sunflower seed 434 514 -15.6% 589 -26.3% Rapeseed 1,656 1,544 7.3% 1,680 -1.4% Semi-refined 335 332 0.9% 356 -5.9% Fully-refined 580 547 6.0% 613 -5.4% Total Total oilseed 3,360 3,401 -1.2% 3,439 -2.3% Total refined 914 878 4.1% 969 -5.7% Fediol Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UN Green Climate Fund approves $483.1mn for projects


25/02/18
25/02/18

UN Green Climate Fund approves $483.1mn for projects

London, 18 February (Argus) — The UN Green Climate Fund (GCF) has approved eight projects, allocating $483.1mn in climate funding across 31 developing countries. The GCF will consider four more projects — which would allocate around $253.7mn — during its board meeting, which runs from 17-20 February. Of the approved projects, five are focused on adaptation — adjusting to the effects of climate change where possible — and three on adaptation and mitigation, which refers to cutting emissions. The GCF operates under the financial mechanism of UN climate body the UNFCCC and is mandated to invest half of its resources in mitigation and half in adaptation. It is the world's largest climate fund and was originally capitalised with $10.3bn in 2015. The fund's first replenishment, in 2019, gathered a further $10bn in pledges and its second replenishment reached around $13.6bn after funds committed at the UN Cop summits in 2023 and 2024 . But the US rescinded "outstanding pledges" to the fund earlier this month, the country's State Department said. These are thought to amount to around $4bn. Recent UN climate talks have centred around finance for developing countries, to address climate change and decarbonise. Countries agreed at last year's Cop 29 to a new financing goal of "at least" $300bn/yr for developing nations by 2035. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Frustration over delays to UK CCS and H2 programmes


25/02/17
25/02/17

Frustration over delays to UK CCS and H2 programmes

London, 17 February (Argus) — Companies are growing increasingly frustrated with the UK government over unclear timelines and inadequate funding for carbon capture and storage (CCS) and clean hydrogen projects. The government has drawn strong praise for the design of its contracts-for-difference style production subsidies for electrolytic hydrogen and CCS systems to underpin low-carbon hydrogen from fossil fuels. But too few projects have been able to access the schemes and developers are losing confidence that the UK will match their ambition with sufficient and timely funding. "It's like building a great motorway with five lanes but very few, or no junctions," industry body OEUK's head of energy policy Enrique Cornejo said. "We have a great policy framework, but we don't have access, apart from a very small number of projects," he told the UK CCUS and Hydrogen Decarbonisation Summit in Leeds, northern England this month. Cornejo welcomed a recent final investment decision (FID) for the Teesside CCS system and progress made on northwest England's HyNet cluster, which is expected to reach FID this year, but he urged the government to set out funding and timelines for the Scottish "Acorn" and Humberside "Viking" CCS projects that are supposed to be next in line. "It's been a really long wait for these projects and the risk is very clear that if we don't hear some positive news from the government" there could be "lost investment", he said. It is a view shared by Norway's Equinor, which owns 45pc of the Teesside CCS project and a portfolio of Humberside hydrogen proposals that are in limbo having been overlooked in initial government selections. "Keeping projects on life support costs a lot of money," said the company's director of UK low-carbon solutions hydrogen, Dan Sadler. Equinor has spent "hundreds of millions" on its proposals for CCS-based hydrogen production, electrolytic hydrogen production, transport and storage infrastructure, he said. Sadler made the same appeal 12 months ago but has still received no update on the timing for the so-called "track 1 expansion process" which would allow its CCS-hydrogen project to move ahead. Optimism over the "fantastic" Teesside FID and contracts signed with three electrolytic projects must be balanced against concerns that HyNet has not reached FID nor have any of the UK's CCS-based hydrogen plants , Sadler said. On electrolytic hydrogen, the UK missed its deadline to shortlist winners of second round projects in 2024. Multiple electrolysis-focused developers at the Leeds conference talked of "standstill" in the sector, while financiers echoed the importance of the UK's second hydrogen allocation round (HAR2) shortlist. "We're waiting with bated breath for HAR2 so we know which projects we can look to finance," UK-based National Wealth Fund's managing director of banking and investments, Emily Sidhu, said. Opening applications for the UK's subsidy scheme for hydrogen pipeline and storage infrastructure has slipped to the fourth quarter of this year, which means it could be many months into 2026 before winners are selected and years until the projects get built. UK pipeline operators envy the government support that peers in continental Europe have received and have been trying to alert London about what companies perceive to be unduly arduous permitting processes, one pipeline firm told Argus . Emperor's new clothes The funding appeals come at a difficult time. The Labour government, which was elected last year, is reviewing spending across all departments, creating extra doubt. The total cost of the UK's ambitions for hydrogen and CCS would surpass several times over the £21.7bn ($27.3bn) for CCS and £2bn for electrolytic hydrogen that the government has confirmed for the first rounds. While raising funds from the government, the Emissions Trading System (ETS) or the so-called gas shipper obligation are possibilities, it is not sufficiently clear to give confidence to investors, Equinor's Sadler said. Moreover, the Labour administration has not said if it will stick to the former Conservative government's targets, Sadler noted. "It's rhetoric. Government policy for hydrogen and CCS? There isn't any. People quote 10GW [hydrogen production] and four [CCS] clusters by 2030 and 30mn t/yr [CO2 sequestration] by 2030. That's the Tory [Conservative] policy, the Labour government hasn't got a policy at the moment," Sadler said. The industry's belief in the UK as an investment proposition cannot be sustained forever, he said. The UK's Department for Energy Security and Net Zero has not responded to questions about the Labour government's hydrogen targets. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Biomethanol-methanol diff widens, UK demand ticks up


25/02/14
25/02/14

Biomethanol-methanol diff widens, UK demand ticks up

London, 14 February (Argus) — The spread between biomethanol and conventional methanol is the highest in more than nine months, at $734/t. This is partly driven by falling European methanol prices, with the methanol fob Rotterdam barge quote hitting $348.97/t on 12 February, the lowest since 7 August. Increased imports from the US, and the restart of a 900,000 t/yr capacity European plant have put downward pressure on prices. Biomethanol values ticked higher in recent sessions, tracking gains in the wider biofuels complex after record low values for renewable fuel tickets — tradeable credits generated primarily by the sale of biofuel-blended fuels — in major European demand centres in 2024. European demand for biofuels in 2025 could be supported by a combination of higher mandates for the use of renewables in transport, and by changes to regulations on the carryover of renewable fuels tickets in Germany and in the Netherlands . UK biomethanol prices and demand rise In the UK, the Argus cif biomethanol price has averaged $1,110/t so far in February, a $22/t increase from January and a $60/t rise from the September 2024 average, when prices hit a record low. The price averaged around $1,094/t in February last year. Prices have been in part supported by stronger renewable fuel ticket prices (RTFCs) in the UK recently, according to market participants. UK 2025 non-crop RTFCs averaged 25.45p in the first quarter of 2025 so far, an increase of 1.88p when compared with the previous quarter. Demand picked up in the UK and the wider European market, including from voluntary sectors, at the beginning of the year, participants said. Biomethanol is used as a gasoline blending component in the UK. Consumption in the country in 2024 rose by 45pc on the year but was lower by 7.9pc than in 2022 at 58mn litres, according to the third provisional release of the 2024 Renewable Transport Fuel Obligation statistics. The Argus biomethanol fob Amsterdam-Rotterdam-Antwerp (ARA) netback quote was $1,083/t on 12 February. FuelEU fuels demand The January rollout of the FuelEU Maritime regulations could increase demand for biomethanol in shipping. Ship operators traveling in to, out of and within EU territorial waters must reduce their greenhouse gas (GHG) intensity on a lifecycle basis by 2pc. The reduction rises to 6pc from 2030 and gradually reaches 80pc by 2050. Shipping companies can choose from a range of alternative marine fuels to reduce their emissions. Only dedicated ships can run on methanol alone, but many companies, including Maersk , have ordered dual-fuel vessels that can run on methanol and traditional bunker fuels, along with biofuel blends like B24 — a mix of very-low sulphur fuel oil (VLSFO) and used cooking oil methyl ester (Ucome) biodiesel. International offtake agreements for renewable methanol are also on the rise. Maersk has signed several letters of intent for procurement of biomethanol and e-methanol from producers including Equinor , Proman and OCI Global , and has an agreement with Danish shipping and logistics company Goldwind for 500,000 t/yr from 2024. Biomethanol and e-methanol are likely to be the most competitive and scalable pathways to decarbonisation this decade, Maersk said . While relatively small, Maersk's 'green marine' fuel consumption, which includes biomethanol, increased by 38pc in 2024 to 3,034 GWh. Singaporean container shipping group X-Press Feeders said it will buy biomethanol from OCI's Texas plant starting from 2024. Biomethanol bunker sales in the port of Rotterdam dropped by more than half in the fourth quarter of 2024 compared with the third quarter, to 930t, but sales were 86pc higher than those in the fourth quarter of 2023, according to Port of Rotterdam data . UDB risk to biomethanol imports The European Commission's proposal to exclude automatic certification of biomethane and biomethane-based fuels from the Union Database for Biofuels, if relying on natural gas that has been transported through grids outside the EU, has been slowing some negotiations for 2025 biomethanol imports — particularly from the US — according to market participants. Industry bodies have expressed concerns about implementation of the database, particularly that it will impede the bloc's biomethane development. Burdensome fees, overly strict deadlines, risk of double counting, and a significantly increased number of participants required to enter data will slow market growth, said the European Compost Network and the European Waste Management Association. They recommend mandatory use of the UDB be postponed until 1 January 2026 "at the earliest". By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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