Japan’s Euglena to enhance UCO procurement after 2024

: Biofuels
25/02/14

Japanese biofuel developer Euglena will put more emphasis on used cooking oil (UCO) procurement and sustainable aviation fuel (SAF) supply to domestic consumers after 2024, it announced on 14 February.

Euglena aims to accelerate procurement of SAF feedstock like UCO and increase SAF supply to domestic and overseas users, the firm said in its April-December 2024 report. The company targets to strengthen its SAF supply chain ahead of the 725,000 kilolitre/yr biofuel refinery in Malaysia beginning commercial operations in 2028.

Euglena started its feasibility study in early February 2025 to explore UCO procurement in Bangladesh for SAF production. The study will last until December, and will be funded by the ministry of economy, trade and industry Meti's scheme to back studies to develop businesses in the global south. Financial support values were not disclosed.

Euglena plans to collaborate with an unspecified university in Bangladesh to collect UCO from local food production plants and restaurants, as well as raising oil crops such as jatropha, carinata and pongamia by using non-arable lands or fallow lands. The firm plans to commercialise this project in 2027. Euglena is aiming to deliver UCO to Japanese SAF manufacturers, while exploring potential supply to its Malaysian biofuel refinery in future.

Euglena plans to strengthen Japan's SAF supply chain as the country is expected to face a UCO supply shortage and price hike. Global UCO demand is rapidly growing amid decarbonisation efforts.

Japan aims to achieve 10pc SAF usage by domestic airlines by 2030. Meti plans to introduce a mandate requiring domestic suppliers to provide volumes that constitute at least 10pc of SAF to achieve its 2030 target.

Meti predicts the country's SAF consumption will reach 1.71mn kl/yr by 2030, with 880,000 kl/yr being used by domestic airlines — including domestic and international procurements by All Nippon Airways and Japan Airlines — and 830,000 kl/yr by non-Japanese carriers.

By Nanami Oki

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25/12/23

Ausblick Biomethan: Chancen und Hindernisse im EU-Markt

Hamburg, 23 December (Argus) — Der europäische Biomethanmarkt wird in 2026 ein regional ungleichmäßiges Wachstum verzeichnen. Verzögerte Umsetzungen der RED III und ungelöste politische Fragen bremsen den Markthochlauf. Gleichzeitig bleibt die Schifffahrt ein zentraler Nachfragetreiber — vor allem für zertifiziertes, subventioniertes Biomethan. Die überarbeitete EU-Richtlinie für erneuerbare Energien (RED III) gibt den Mitgliedstaaten bis 2030 zwei Optionen, um die Klimaschutzziele der EU zu erreichen: Entweder können die Staaten ihre Treibhausgasemissionen bis 2030 um 14,5 % zu senken, oder sie können einen Anteil von 29 % ihres Energiebedarfs aus erneuerbaren Quellen decken. RED II verlangte lediglich einen Anteil von 14 % erneuerbarer Energien. Einige Länder wie Deutschland haben ihre nationalen Umsetzungspläne der Vorgaben von RED III bereits vorgestellt und planen, diese im kommenden Jahr umzusetzen. Mehrere Länder wie die Niederlande oder Frankreich setzen zukünftig auch auf ein THG-System, wie es in Deutschland nun schon seit Jahren existiert. Biomethan mit niedriger oder negativer Kohlenstoffintensität wird damit zum bevorzugten Kraftstoff, um die Verpflichtungen zu erfüllen — vor allem in den Niederlanden, wo es bisher hinter vergleichsweise günstigeren Biokraftstoffen zurückblieb. Eine weitere EU-Verordnung, die den Einsatz von Biomethan begünstigt, ist FuelEU Maritime. Diese trat im Januar 2025 in Kraft und verpflichtet Reedereien, die Emissionen ihrer Flotten in den Jahren 2025 und 2026 um jeweils 2 % pro Jahr zu senken. Übererfüllung kann über Pooling-Systeme vermarktet werden. Dies hat sich für das Bunkering von Bio-LNG in 2025 als besonders profitabel erweisen. Die Regelung hat die Preise für Herkunftsnachweise (HKNs, oder englisch: RGGOs) stark beeinflusst und dürfte 2026 weiter für Dynamik sorgen. Neue Systeme, entweder unter RED III oder nationalen Verpflichtungen, die 2026 in Kraft treten, werden Nachfrage erzeugen, die mit dem Bedarf aus der Schifffahrt um das Angebot konkurrieren muss. Der größte Teil des niederländischen und dänischen Biomethanangebots für 2026 ist bereits für den maritimen Sektor vorgesehen. Wachstum in den Niederlanden Neben der Umstellung auf die THG-basierte Verpflichtung im Rahmen des sogenannten ERE-Zertifikatssystem unter RED III haben die Niederlande im November mit der Arbeit an einer "Green Gas Blending Obligation" begonnen. Eine Umsetzung vor Ende 2027 erscheint zwar unwahrscheinlich, doch die Pläne stützen vorerst die Preise für HKNs. Die Liquidität von niederländischem Biomethan könnte steigen, wenn die Regierung die Massenbilanzierung von Biomethan genehmigt. Ein entsprechender Antrag wurde im November im Parlament eingebracht, doch eine jüngste Regierungsantwort deutet darauf hin, dass dieser nicht von Erfolg gekrönt sein wird. Bio-LNG muss, wie auch in Deutschland, unsubventioniert sein, zertifiziert sein und physisch geliefert werden, um sich für ERE-Zertifikate zu qualifizieren, andernfalls wird es bei der Berechnung des Gesamtmandats eines Kraftstoffanbieters mit einer fossilen CI von 94 g CO2e/MJ behandelt. Stabiles Deutschland, Frankreich Deutschland wird 2026 die Doppelanrechnung für fortschrittliche Biokraftstoffe wie Biomethan auf die THG-Quote abschaffen. Bislang war dies stets ein großer Anreiz für den Einsatz von Biomethan als Kraftstoff. Trotzdem bleibt Biomethan in Deutschland der günstigste Weg, um die THG-Quote zu erfüllen, denn insbesondere güllebasiertes Biomethan hat ein konkurrenzloses Einsparungspotenzial. Auch die steigende THG-Quote könnte die Nachfrage stützen, jedoch bleibt der Absatzmarkt in Deutschland durch die limitierte Anzahl an LNG- und CNG-Fahrzeugen begrenzt. Frankreichs Beimischungspflicht für Biogas-Produktionszertifikate (CPB) tritt im Januar in Kraft und dürfte auch dort die Inlandsnachfrage deutlich ankurbeln. Die Umsetzung der RED III-Richtlinie, die ein neues, auf Treibhausgasen basiertes IRICC-Ticketsystem vorsieht, wurde jedoch auf 2027 verschoben. Das derzeitige energiebasierte TIRUERT-Ticketsystem für den Transport bleibt bis dahin bestehen, und bremst die Nutzung von Biomethan im Verkehrssektor. Ob IRICCs ab 2027 aus Biomethan generiert werden können, ist noch unklar. Die Verpflichtung, 3 % erneuerbares Gas im Verkehrssektor zu verwenden, tritt 2028 in Kraft und wird danach weiter ansteigen. Der grenzüberschreitende Handel und die Bunkerung von Bio-LNG dürften weiterhin eingeschränkt bleiben. Französisches Biomethan kann nur im Rahmen einer Ex-Domain-Annullierung exportiert werden, also durch die Löschung von HKNs in einem Land zur Verwendung in einem anderen. Dies birgt Risiken für Käufer, da die Eigentumsrechte an den Nachweisen nicht zwangsläufig übertragen werden. Subventioniertes Biomethan darf an französischen LNG-Terminals nicht für die Nutzung außerhalb des Landes verflüssigt werden. Französisches Bio-LNG muss über Massenbilanzierung an andere Terminals in der EU exportiert werden, um unter FuelEU Maritime genutzt zu werden. Großbritannien: Zugang zur EU unklar Der Zugang des Vereinigten Königreichs zu EU-Märkten hängt vom Zugang zur Unionsdatenbank für gasförmige Biokraftstoffe (UDB) ab, deren Start nun für Ende Sommer 2026 vorgesehen ist. Unklarheiten bei der Drittstaatenregelung könnten den EU-Handel einschränken — ein kritisches Thema, da das Vereinigte Königreich in den ersten drei Quartalen 2025 mehr als die Hälfte seiner HKNs exportierte, hauptsächlich nach Deutschland, Norwegen und in die Schweiz. Das Vereinigte Königreich prüft derzeit den Ersatz volumenbasierter RTFC-Tickets durch ein THG-basiertes System, doch Änderungen würden erst 2027 in Kraft treten. Fazit Insgesamt bleibt Biomethan in Europa in THG-basierten Systemen gut positioniert, doch Verzögerungen bei der Umsetzung von Vorschriften dürften das Gesamtwachstum des Marktes verlangsamen. Die Niederlande, Dänemark und Deutschland sollten weiterhin Anker für die europäische Preisbildung bleiben, und Spanien dürfte seine Rolle als maritimer Hub festigen. Doch mehrere Länder riskieren, zurückzufallen, wenn sie keine HKN-Register, Export-Hub-Zugänge, politische Anreize und Subventionsreformen einführen. Von Madeleine Jenkins & Svea Winter Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

Viewpoint: Policy delays refocus US SAF industry

25/12/23

Viewpoint: Policy delays refocus US SAF industry

Houston, 23 December (Argus) — US sustainable aviation fuel (SAF) production rose to a record this year, but mounting delays for policy clarity may send volumes abroad or force producers to dial back output in 2026. SAF output rose to an all-time high of 196mn USG through November of this year compared to 39mn USG in all of 2024, according to US Environmental Protection Agency (EPA) data. But growth next year is uncertain as the industry awaits final rules on a new biofuel tax credit, nearly a year after the US issued preliminary guidance. The Inflation Reduction Act's 40B SAF tax credit expired after 2024, ending a minimum $1.25/USG subsidy for producers and blenders of a fuel that produces half as many emissions as petroleum jet fuel. The move this year to the 45Z tax credit for all types of domestic clean fuel production was always expected to be rocky — in part because stricter carbon intensity rules left most types of SAF with less of a tax break than in 2024 — but the market also has been hurt by delayed final rules. The US government now expects to issue final regulations in the second quarter of 2026, though interim guidance could come sooner. Nonetheless, producers have begun selling 45Z credits at a discount to the book value of the credit. With producers looking for the market to rebound after a year of depressed margins and a drop in SAF values, this revenue stream is expected to become more common in future years but will still hinge on policy certainty. In a similar fashion, EPA expects to finalize new biofuel blend mandates in the first quarter next year, another delayed regulatory program affecting SAF margins. While jet fuel is not obligated under the program like conventional gasoline and diesel, SAF generates a D4 RIN that is used by refiners to show compliance with the EPA's standards. These RINs over the last five trading days were valued at about $1.08/RIN for credits with 2026 vintage . One USG of SAF generates 1.6 RIN credits, a substantial source of revenue for SAF producers and importers alike. EPA in a June proposal signaled a significant increase in the blending mandate in the category satisfied by D4 RINs. If EPA finalizes similarly ambitious quotas, it would support D4 prices and give SAF producers a boost in offering their product at a more competitive price. At the state level, multiple jurisdictions offer tax credits geared toward rewarding producers and airlines that increase SAF usage. The one that has made the most difference in boosting SAF demand is Illinois' $1.50/USG airline tax credit for SAF use. Minnesota has a similar policy. Washington, Nebraska and, most recently, Arkansas have enacted incentives available to SAF producers within their states. But those states have not produced any SAF that is not co-processed with petroleum fuel and they have no facilities being commissioned, according to Argus estimates. Uncertainty over federal policy continues to act as a roadblock for SAF producers looking to develop, finance, and bring their products to market in a timely and efficient way. The oldest tenured US producer of SAF, World Energy's facility in Torrance, California, was idled in July following a reorganization of refining assets. Industry newcomer XCF Global's plant in Reno, Nevada, is producing only renewable diesel, not SAF as originally planned, at least through 2025, spurred by difficult market conditions and lower demand. Given the absence of European-style SAF mandates in the US, domestic airlines are focused on meeting their minimum SAF usage goals at the lowest possible cost. Meanwhile, President Donald Trump's attacks on climate change policy has eroded industry-wide SAF demand. SAF prices reached all time lows in December, valued as low as $3.52/USG in the US west coast. But that's still a considerable premium to petroleum jet fuel, meaning uptake will be limited in the US absent new policies. If final incentives are delayed further, and new state policies do not make up the difference, US SAF producers could have reason to send their fuel abroad. And if arbitrage opportunities fail to materialize, producers may dial back production or pivot to production of other renewable fuels. By Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Policy is key for Cop 30 sustainable fuels pledge

25/12/23

Policy is key for Cop 30 sustainable fuels pledge

London, 23 December (Argus) — A UN Cop 30 climate summit pledge, known as "Belem 4x", to quadruple "sustainable fuels" use over 2024-35 has so far drawn 27 signatories, including major biofuels producers and consumers. But such a substantial increase could face constraints, including feedstock and land availability, and will depend on supportive legislation. The signatories pledged at Cop 30 to "expand sustainable fuels use globally by at least four times by 2035 from 2024 levels", including by "adopting ambitious national policies". Sustainable fuels, in the context of the pledge, refers to liquid biofuels, biogases, "low-emissions hydrogen and hydrogen-based fuels", according to energy watchdog the IEA. The pledge follows an IEA report in October developed for the Cop 30 presidency, which found that a fourfold increase "is ambitious yet achievable". Under the IEA scenario, liquid and gaseous biofuels would meet around two-thirds of sustainable fuel demand in 2030, while hydrogen and hydrogen-derived fuels would "expand rapidly" after 2030. Cop 30 host Brazil proposed the pledge in September , based on the IEA's preliminary findings, and the commitment was launched with India, Italy and Japan at the pre-Cop event in Brasilia, Brazil in October. The pledge now has 27 signatories from Latin and North America, Asia, Africa and Europe, encompassing sustainable fuels producers and consumers. Canada, Indonesia, Mexico and the Netherlands are among the signatories. The pledge "sends an important political signal: scaling up sustainable fuels is not only necessary for climate goals, but feasible", the European Waste-based and Advanced Biofuels Association (Ewaba) told Argus . "Europe's biodiesel sector shows how sustainable biofuels can strengthen energy security, reduce import dependence and deliver immediate climate benefits using existing vehicles and fuel infrastructure," Ewaba added. Rising demand Sustainable fuels are typically used in transport sectors, which are among the highest-emitting, particularly in advanced economies. Although transport electrification is expanding, it is typically not moving fast enough to hit climate targets in line with the Paris Agreement, while shipping and aviation will require multiple decarbonisation solutions. Hydrogen and related fuels are also likely to see uptake from industry and power generation. Global demand for sustainable fuels doubled over 2010-24, and is already expected to grow this decade, boosted by policies designed to drive emissions reductions and support energy security. Conversely, the removal of tax credits for electric vehicles in the US, and recent weakening of the EU target for zero-emission cars are also likely to support increased biofuels consumption. The full implementation of existing and announced policies and targets, "plus the removal of market barriers, could lead to a near-doubling of sustainable fuel use in just six years", the IEA said. This could attract investment for new production capacity, it added. It also recommended prioritising infrastructure and supply chain development, as well as innovation funds for new technologies. The IEA found that sustainable fuels could cover 10pc of road transport demand, 15pc of aviation demand and 35pc of shipping fuel demand by 2035 — although it would "vary widely" by region. In an accelerated case, the IEA found that liquid biofuels could provide 8.07EJ in energy in 2030, up by 62pc from 2024 levels. The picture shifts by 2035 in the scenario, with biogas supply more than doubling and low-emissions hydrogen more than quadrupling, both from 2030. Land-use concerns But a near-term focus on increased biofuels production sparked concerns from several organisations about feedstock availability and the land conversion implications. "Such a massive uptake in biofuels could have calamitous consequences for the environment and climate, depending on how this pledge is interpreted," European non-governmental organisation (NGO) Transport & Environment (T&E) said. It flagged land cleared for crops such as palm oil, soy, sugarcane and corn. T&E projections show that "under current growth trends and policies, 90pc of biofuels will still be reliant on food and feed crops by 2030." The IEA noted "limited" expansion opportunities for biofuels from waste oils and fats, while it recommended improving crop yields for other feedstocks. But climate change is likely to hamper crop output. The UN Environment Programme warned recently that under a ‘business as usual' pathway, land degradation "is expected to continue at current rates, with the world losing fertile and productive land the size of Ethiopia or Colombia annually". Cop pledges often aim to drive an existing trend faster, and this is typically evident in the signatories — a coalition of the willing. Brazil has vast ethanol production capacity and strong domestic consumption mandates, like India, while another signatory, Chile, is forging ahead with renewable hydrogen production. The pledges, like all climate action, rely on strong policy, but commitment from key countries is more likely to achieve results. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: EU crop biodiesel demand set to rise in 2026

25/12/23

Viewpoint: EU crop biodiesel demand set to rise in 2026

London, 23 December (Argus) — European crop-based biodiesel use is likely to rise in 2026 as changes to the EU's recast Renewable Energy Directive (RED III) make waste-based biofuels less attractive for greenhouse gas (GHG) compliance. But looming feedstock caps could limit growth. RED III will end the practice of counting certain waste feedstocks twice towards compliance targets in major EU economies. Fuel suppliers may turn to cheaper crop-based biodiesel to meet their goals. Until now, member states could count biofuels from waste feedstocks listed in the directive's Annex IX — Part A (9A) and Part B (9B) — twice towards transport renewable energy targets. These include biodiesel such as used cooking oil methyl ester (Ucome) and Advanced Fame 0, made from feedstocks in 9B and 9A, respectively. Germany and the Netherlands plan to remove double counting in 2026 as they implement RED III. In Germany, the change applies only to biofuels produced from 9A feedstocks. But ending double counting means suppliers must deliver higher physical volumes of renewable fuel, making cheaper crop-based biodiesel more attractive. Overall renewable fuel requirements are rising under RED III, with the headline transport mandate more than doubling on an energy basis to 29pc from 14pc by 2030, alongside a 14.5pc GHG reduction target. In countries such as France, Spain and Belgium that still allow double counting, suppliers will continue to favour waste-based biofuels. Feedstock caps RED III also brings changes to caps on certain biofuel feedstocks. Germany is expected to slightly increase its cap on 9B fuels but keep an overall limit of 1.7pc. Hydrotreated vegetable oil (HVO), a drop-in biofuel also known as renewable diesel, is expected to meet most of the country's needs under the cap. As physical blending requirements rise because Germany will stop double counting 9A biofuels, blenders will need more HVO. HVO's chemical properties allow blending beyond the 7pc limit for methyl ester biodiesel in diesel. Greater use of UCO-based HVO will leave less room for Ucome because of the domestic cap. Market participants will likely look to high-GHG savings crop-based biodiesel and advanced biodiesel — produced from 9A feedstocks still uncapped — to meet targets. Advanced biodiesel demand could also outpace crop-based buying if further caps on crop-based fuels are introduced. But Argus Consulting forecasts about 1bn litres of additional rapeseed methyl ester (RME) demand next year as a result of these legislative changes. In the Netherlands, an expansion of the renewable fuels mandate from road fuels to include maritime and inland waterways will bring new feedstock restrictions. Sellers will be watching renewable fuel certificate prices in Germany and the Netherlands, which will be based on GHG savings under RED III. Many participants have already called for higher biodiesel blending capacity to ease pressure on the HVO market. Italy has drafted legislative changes to allow widespread use of B10 diesel at service stations, requiring distributors to supply B7 at 30pc of sites as a protectionist grade. By Christian Hotten Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indonesia allocates 2026 biodiesel blend volumes

25/12/23

Indonesia allocates 2026 biodiesel blend volumes

Singapore, 23 December (Argus) — Indonesia has allocated 15.6mn kilolitres to domestic biodiesel producers for its 2026 biodiesel-fossil diesel blending programme, the ministry of energy and mineral resources (ESDM) announced on 22 December. Total allocated biodiesel blend volumes will remain unchanged in 2026, with 7.45mn kl allocated to public service obligation (PSO) and 8.19mn kl to non-PSO (NPSO) firms. The ESDM this year allocated 7.6mn kl and 8mn kl to PSO and NPSO firms respectively under the 40pc biodiesel blend mandate. Indonesia reshuffled blend volumes earlier in December to shift an allocated 480,000 kl from PSO to NPSO fuel suppliers. But volume allocations will increase if Indonesia moves to a 50pc biodiesel blend mandate in the second half of 2026 . Fuel suppliers under the PSO receive subsidies from the oil plantation fund management agency (BPDP) to fund the difference between palm oil-based biodiesel and the indexed price of diesel, while NPSO fuel suppliers do not. By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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