Japan’s Mitsui invests in US e-fuel producer

: Biofuels, E-fuels, Hydrogen
25/04/17

Japanese trading company Mitsui has invested in California-based synthetic fuel (e-fuel) producer Infinium, aiming to acquire knowledge on technology and commercialisation in the emerging sector.

The investment in Infinium was conducted in March, Mitsui told Argus on 16 April, declining to disclose the specific amount. This marks Mitsui's second investment in e-fuel producers. The firm invested in California-based synthetic sustainable aviation fuel (e-SAF) producer Twelve Benefit.

Infinium produces green hydrogen from water by electrolysis, and converts the hydrogen and CO2 into e-fuels by using renewable energy. The firm is planning to launch its second plant, which will specialise in e-SAF production. International Airlines Group (IAG) and American Airlines have agreed to receive the e-SAF that will be produced at the plant.

E-fuels can help reduce over 90pc of greenhouse gas (GHG) emissions compared with conventional fossil fuels, and are notable as "drop-in" substitutes for conventional fuels, applicable to existing engines and infrastructures, Mitsui said.

Mitsui is observing the e-SAF market. SAF is a relatively promising prospect in the renewable energy sector, on the back of the target by the UN's International Civil Aviation Organisation (ICAO) to achieve net-zero emissions in international aviation by 2050, as well as governmental policies bolstering the deployment of SAF, a representative of the firm told Argus.

Japan plans to replace 10pc of the jet fuel consumed by domestic airlines with SAF in 2030.

By Kohei Yamamoto

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25/05/15

Verkehrssektor verfehlt Klimaziele

Hamburg, 15 May (Argus) — Der Verkehrssenktor hat sein Emissionsreduktionsziel in 2024 verfehlt. Dies geht aus dem Prüfbericht des Expertenrats für Klimafragen hervor. Branchenverbände des Kraftstoffmarktes nutzen den Bericht als Appell an die Bundesregierung. Laut des Berichtes vom 15. April hat der Verkehrssektor in Deutschland im Jahr 2024 rund 143 Mio. t CO2-Äquivalent emittiert. Dies stellt einen Rückgang um etwa 1,4 % gegenüber dem Vorjahr dar und entspricht etwa dem Rückgang der Emissionen von 2022 zu 2023. Ursprünglich sollte der Verkehrssektor eine Reduzierung auf 125,2 Mio. t CO2e erzielen. Entsprechend wurde diese Zielmarke um knapp 18 Mio. t CO2e überschritten. Insgesamt ist der Verkehrssektor für 9 % der bundesweiten Emissionen verantwortlich, so der Expertenrat. Dabei sei ein Großteil des Rückgangs auf den Bereich schwerer Fahrzeuge wie LKW und Busse zurückzuführen. Die Emissionen des privaten Personenverkehrs sind konstant geblieben. Der geringe Emissionsrückgang ist laut Expertenrat auf die mangelnde strukturelle Entwicklung im Verkehrssektor sowie der anhaltenden Dominanz fossiler Antriebsarten zurückzuführen. Außerdem soll die Verkehrsleistung von PKW zugenommen haben. Die daraus resultierenden Mehremissionen seien jedoch aufgrund des im Vergleich zum Vorjahr höheren Bestand an batterieelektrischen Fahrzeugen ein Stück weit ausgeglichen worden. Auch das geringe Wirtschaftswachstum hat zum Emissionsrückgang beigetragen. Die neue Bundesregierung hat im Koalitionsvertrag bestätigt, am Anstieg der THG-Quote festzuhalten. Dies soll Inverkehrbringer von Kraftstoffen dazu anregen, mehr emissionsärmere Kraftstoffe anstelle von fossilen in Verkehr zu bringen. Der Branchenverband Uniti begrüßt dieses Vorhaben zwar, mahnt jedoch an, dass diese Maßnahmen nicht ausreichen würden, um den Markthochlauf der erneuerbaren und alternativen Kraftstoffen voranzutreiben. Der Verband fordert die Regierung auf, sich auf europäischer Ebene für eine Anpassung der CO2-Flottenregulierung einsetzen. Diese berücksichtigt bei der Ermittlung der Emissionen nicht etwaige Einsparungen bei der Produktion des Kraftstoffes, sondern nur die tatsächlichen Emissionen im Betrieb. Von Max Steinhau Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

UK establishes public energy company

25/05/15

UK establishes public energy company

London, 15 May (Argus) — The UK parliament has passed a bill establishing a publicly owned energy company, Great British Energy (GBE), to support the nation's renewable energy ambitions. The company, funded with £8.3bn ($11.02bn) over the current parliamentary term, aims to accelerate renewable energy projects, enhance energy security, and support job creation, the department for energy security and net zero (Desnz) announced on Thursday. GBE will invest in clean energy initiatives, including technologies such as floating offshore wind, and collaborate with private companies to expand renewable energy capacity. The government states the company will help stabilise energy costs by reducing reliance on fossil fuels. The bill includes £200mn for renewable energy projects, such as rooftop solar for schools, hospitals, and communities. It has also committed £300mn to develop the UK's offshore wind supply chain, supporting manufacturing of components such as cables and platforms. The legislation received approval from the devolved governments of Scotland, Wales, and Northern Ireland, enabling GBE to operate across the UK. Desnz secretary of state Ed Miliband is expected to outline GBE's strategic priorities "soon", specifying technology focus areas and investment criteria. The government sees GBE as a key part of its plan to transition to clean energy and stimulate economic growth through a "modern industrial strategy", it said. Industry body Energy UK welcomed the bill's passage. "[GBE] can play a vital role in making the government's clean energy ambitions a reality by attracting extra private sector investment," chief executive Dhara Vyas said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France consults on expanded biofuels mandate

25/05/15

France consults on expanded biofuels mandate

London, 15 May (Argus) — France has opened consultation on the transposition of part of the recast renewable energy directive (RED III) into national law, which would replace the current system with a new one called "incentive for the reduction of the carbon intensity of fuels" (IRICC). The proposal introduces two separate sets of requirements for transport fuels. The first is for greenhouse gas (GHG) emissions reductions, broken down by transport sectors — road, aviation, maritime, LPG and natural gas for vehicles, which could be CNG or LNG (see table). In the current draft, the GHG reduction target for the road sector will start at 5.9pc in 2026, rising to 10.6pc in 2030 and 18.7pc in 2035. For aviation, the target starts at 2.5pc in 2026, rising to 5.8pc in 2030 and 18.8pc in 2035. The GHG mandate levels include a gradual phasing-in of new fuel sectors – river and maritime fuels, fuel gasses, and aviation. To meet the overall RED III target of 14.5pc emissions reduction by 2030, the national French target includes the biofuels mandates, a share for rail transport, and a share or private vehicle charging. The second set of requirements is a renewable fuel requirement by energy content, which is broken down by fuel type — diesel, gasoline, LPG and natural gas fuels and marine fuel (see table). The blending requirements for diesel start at 9pc in 2026, rising to 11.4pc in 2030 and 16pc in 2035. For gasoline, the mandates start at 9.5pc in 2026, rising to 10.5pc in 2030 and 14.5pc in 2035. Finally, the proposal includes a set of sub-mandates for advanced fuels and renewable hydrogen . The advanced biofuels mandate would start at 0.7pc in 2026, rising to 1.95pc in 2030 and 2.6pc in 2035. Users of renewable fuels of non-biological origin (RFNBOs) would not be subject to the advanced sub-mandate. In feedstock restrictions, the crop cap will rise to 7pc from 6.2pc in 2030 and 2035, while the limit for fuels made from feedstocks found in Annex IX-B of RED will be at 0.6pc in 2026, 0.7pc in 2030 and 1pc in 2035 for diesel and petrol. Aviation fuel will not have a IX-B cap until 2030, and from then it will be 6pc. Mandate compliance would be managed by a certificate system through the CarbuRe registry, with a compliance deadline of 1 March the following year. Public electric vehicle charging would also generate tickets, although the amount of tickets generated by charging light passenger vehicles would be reduced from 2031 to reach 50pc in 2035. Renewable hydrogen used in transport would also generate tickets counting towards the hydrogen sub-quota and reduce the overall GHG savings requirement. Public charging stations will start generating fewer tickets for electric passenger vehicles from 2031 to 50pc by 2035. France is also considering steep penalties for non-compliance, at €700/t CO2 not avoided for the GHG reduction requirement and at €40/GJ for the fuel targets. The penalty for not meeting hydrogen and advanced fuel sub-targets would be doubled, at €80/GJ. The consultation is open for comments until 10 June. By Simone Burgin Proposed GHG reduction by transport sector % 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Road and non-road diesel 5.9 7.1 8.3 9.5 10.6 13.2 14.8 16.2 17.5 18.7 Aviation 2.5 3.3 4.1 4.9 5.8 8.4 10.8 13.3 15.9 18.7 RFNBO sub-target (% en.) 0.0 0.0 0.0 0.0 1.2 1.2 2.0 2.0 2.0 5.0 Maritime 2.5 3.25 4.0 5.0 6.0 7.0 8.0 10.0 12.0 14.5 RFNBO sub-target (% en.) 0.0 0.0 0.0 0.0 1.2 1.2 1.2 1.2 2.0 2.0 LPG and natural gas fuels 0.0 0.0 2.7 6.3 10.6 13.2 14.8 16.2 17.5 18.7 DGEC Proposed energy content mandate by fuel type % (en.) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Diesel 9.0 9.5 10.1 10.7 11.4 12.2 13.0 13.8 14.9 16.0 Petrol 9.5 9.7 10.0 10.2 10.5 11.1 11.8 12.6 13.4 14.5 Natural gas fuels 0.0 0.0 3.0 7.0 12.0 15.0 16.0 18.0 19.0 21.0 LPG 0.0 0.0 3.0 7.0 12.0 15.0 16.0 18.0 19.0 21.0 Marine fuel 2.9 3.8 4.7 5.9 7.1 8.2 9.4 11.8 14.1 17.1 DGEC Proposed caps and sub-targets % (en.) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Feedstock caps Crop feedstocks 6.2 6.4 6.6 6.8 7.0 7.0 7.0 7.0 7.0 7.0 Annex IX-B feedstocks* 0.6 0.6 0.65 0.7 0.7 0.75 0.8 0.85 0.9 1.0 Cat. 3 tallow 0.5 0.6 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 Tall oil 0.1 0.1 0.1 0.1 0.15 0.15 0.15 0.15 0.15 0.2 Fuel sub-targets Advanced feedstocks 0.7 0.95 1.25 1.6 1.95 2.0 2.1 2.25 2.4 2.6 RFNBOs/Renewable hydrogen 0.05 0.2 0.5 1.0 1.5 1.6 1.7 1.8 1.9 2.0 *For diesel and petrol Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK ethanol sector sees lower prices from US trade deal

25/05/14

UK ethanol sector sees lower prices from US trade deal

London, 14 May (Argus) — The UK ethanol sector expects prices to fall because of the recent trade deal with the US, but participants are divided on the scale of the effect. The trade deal has cut import duties on US ethanol to zero on higher volumes than recent import levels, raising the prospect of large amounts of US product crossing the Atlantic. The UK was the second largest destination for US ethanol exports in 2024, taking more than 923mn l, or 13pc of all exports, according to US industry group Renewable Fuels Association. The UK imposed a duty of £16/hectolitre ($21/hectolitre) for undenatured ethanol and £8.50/hectolitre for denatured ethanol, which the trade deal will remove. Zero tariffs will be applied to up to 1.4bn l/yr. European renewable ethanol association ePure told Argus the deal presents a "huge problem" for UK and EU ethanol producers, a view echoed by some UK market participants. But some active in the UK ethanol market have said that while they do not expect greater amounts of ethanol to arrive in the country, they do anticipate lower prices and lower domestic production. The operators of the UK's two major ethanol-producing facilities, Vivergo and Cropenergies, said there will be zero tariffs on "the size of the UK's whole ethanol market", and said they may have to close. According to Argus data the total UK production capacity for wheat-based ethanol is over 736mn l/yr. The National Farmers' Union expressed concern about the deal's effect on arable farmers, and said it is "working through what this means for the viability of the domestic bioethanol production." Although a healthy share of the total import pool from the US is waste-based, the UK government is consulting on whether to continue classing the main waste feedstock imported from the US as eligible for double counting under its renewable transport fuel obligation (RTFO). Staging post UK producers may still seek to maximise imports from the US for onward export into the EU. The current EU-UK Trade and Cooperation Agreement (TCA) allows for zero tariffs and quotas on all trade of UK and EU goods that comply with appropriate rules or origin. But with this new deal, there is an increased chance of US ethanol entering the EU via the UK, Epure said. "Under existing customs rules US ethanol can be mixed with UK ethanol and thus avoid an EU duty," it said. This may include major proportion, which limits the share of non-originating materials to claim UK origin, or inward processing relief, which allows for imports to be processed without paying import duties or value added tax (VAT) before re-export. Some market participants contested the extent to which UK-EU flows of ethanol with partial US origin might happen, suggesting the imported ethanol would need to undergo a significant chemical change to be classified as duty free, such as being used as feedstock for products including ethyl tert-butyl ether (ETBE). EPure said the EU should be wary, and called for ethanol to be included in a final list of products subject to EU countermeasures, as it was in a recent proposal from the bloc currently under public consultation. By Toby Shay Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

MUFG to invest $30mn in Japanese biofuels firm Euglena

25/05/14

MUFG to invest $30mn in Japanese biofuels firm Euglena

Singapore, 14 May (Argus) — Japanese bank MUFG has agreed to purchase up to $30mn of shares in Japanese biofuels developer Euglena, which will allow Euglena to increase its share in a joint venture to build a biorefinery in Malaysia. Euglena will issue the shares in stages via their overseas special purpose company Euglena Sustainable Investment (Esil). Esil currently owns a 5pc equity of the joint venture and plans to increase its share up to the maximum of 15pc with the new funding. The other partners are Eni's biofuels unit Enilive and Malaysian state-owned refiner Petronas' Petronas Mobility Lestari. The biorefinery started construction in the fourth quarter of 2024, and is scheduled to start operations in the latter half of 2028. It will have the capacity to process about 650,000 t/yr of raw materials, such as used vegetable oils, animal fats, waste from the processing of vegetable oils and other biomass including microalgae oils, to produce up to 725 kilolitres/yr of SAF, hydrogenated vegetable oil (HVO) and bio-naphtha. The biofuel developer, whose initial business was the cultivation of the microalgae Euglena for food, had previously also announced that it will put more emphasis on UCO procurement and SAF supply to domestic consumers. Euglena aims to achieve a production capacity of 100,000 t/yr of microalgae-based oil by the 2030s, and is currently working with Petronas' subsidiary Petronas Research in a joint study to establish technology for large-scale microalgae production. But microalgae has so far faced challenges in commercialising as a biofuels feedstock, including high production costs, difficulty scaling up and low lipid yields. By Deborah Sun Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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