US biofuel feed prices jump on blending plan

: Agriculture, Biofuels, Chemicals
25/06/16

Prices for US biofuel feedstocks have risen sharply since the US Environmental Protection Agency (EPA) late last week proposed ambitious biofuel blending targets for the next two years along with lower incentives for using foreign feedstocks.

Futures prices for soybean oil, the most widely used input for biodiesel production, have led the feedstock gains as the market prices in potentially higher demand. The Nymex front-month contract for soybean oil rose by 6.3pc on 13 June and by an additional 7.8pc on Monday to 54.6¢/lb, the highest since October 2023.

The proposed targets, released on 13 June, would mandate that an equivalent amount of 5.61bn USG of biomass-based diesel be blended in 2026 and 5.86bn USG in 2027. The proposed volumes exceeded most market expectations and industry requests of 5.25bn USG and were significantly higher than the current-year mandate of 3.35bn USG, fueling expectations for increased biofuel feedstocks demand.

In addition, domestic feedstocks may face reduced competition from foreign feedstocks under the proposal, which would cut federal Renewable Identification Number (RIN) credit generation by 50pc for imported biofuels or fuels produced from foreign feedstocks.

Biomass-based diesel D4 RINs for the current year rallied Monday morning, trading between 127-132¢/RIN, up significantly from Friday's close of 109¢/RIN.

Used cooking oil (UCO) railcar volumes to the US Gulf coast were reported trading at 59¢/lb early Monday morning, a 3.5pc jump from Friday's closing price of 57¢/lb, with additional selling interest emerging in the 60s¢/lb.

UCO offers for volumes into California were noted in the high 60s¢/lb, up from last week's close in the high 50s¢/lb.

Distillers corn oil (DCO) fob truck volumes in the Midwest traded at 61¢/lb on Monday morning, reflecting a 9pc jump from Friday's close of 56¢/lb.

Poultry fat fob truck volumes in the southeast were offered in the low 50s¢/lb, up from last week's closing levels in the low 40s¢/lb, but buying interest has not emerged at those levels.

Activity for other renewable feedstocks remains limited for now, but market participants anticipate increased trading later this week, driven by the recent proposal and gains in futures markets.

The EPA proposal is currently in an open comment period, with a public hearing scheduled for 8 July.

By Payne Williams and Jamuna Gautam

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25/07/09

Australian liquid fuels policy to free up ACCUs: CEFC

Sydney, 9 July (Argus) — Annual demand for Australian Carbon Credit Units (ACCUs) could be reduced by as much as 7.5mn t of carbon dioxide equivalent (CO2e) by 2050 if Australia adopted policy changes to develop a low-carbon liquid fuels (LCLF) industry, according to a report this week. Encouraging companies to reduce direct scope 1 emissions through changes to the federal safeguard mechanism and/or voluntary adoption would drive the development of an Australian LCLF market and free up ACCUs for use in sectors that cannot achieve on-site decarbonisation due to technical challenges, state-owned green investment fund Clean Energy Finance (CEFC) said in a report authored by consultancy Deloitte . Under its central case scenario, which would involve constraining the use of carbon offsets, CEFC said that a 7bn litres/yr LCLF market could be created by 2050, abating up to 12mn t CO2e in 2040 and 20mn t CO2e in 2050 as a result. Annual ACCU demand across six sectors covered by the report — mining, aviation, rail, heavy freight, maritime, and construction — could be reduced by around 6.8mn t CO2e by 2050 in that case, to 2.4mn t CO2e/yr. Demand for ACCUs could reach as low as 1.7mn t CO2e by 2050 under an accelerated scenario, which would involve EU-style mandates for LCLF. Demand for ACCUs would be around 9.2mn t CO2e/yr under the base scenario, which assumes a market-led transition in which carbon prices remain low and LCLF demand is driven by a small group of customers willing to pay significant premiums to reduce their scope 3 emissions. 30pc cap under the safeguard mechanism The central case scenario assumes a hypothetical government intervention to cap the use of ACCUs under the safeguard mechanism at 30pc of the baseline for liquid fuel-related emissions. Currently, there is no limit to the number of ACCUs or safeguard mechanism credits (SMCs) that facilities can use to manage their excess emissions under the scheme, but those that surrender carbon units equivalent to 30pc or more of their baselines need to publish a statement explaining why they have not undertaken more on-site abatement activities . The central case scenario also assumes the removal of baseline adjustments for trade-exposed baseline-adjusted facilities . Adopting a minimum 70pc direct on-site decarbonisation would trigger a positive supply-side response, driving significant technology deployment and competition between pathways and feedstocks, the CEFC said. Stakeholders claim that the current safeguard mechanism and ACCU pricing are not enough to drive early LCLF uptake, the report said. Policy intervention is needed to accelerate the bridging of the cost gap between the LCLF production cost and the ACCU price, which is currently not expected to happen until the 2040s, the report said. A market-led transition, on the other hand, would lead to greater pressure on the ACCU market, with up to 7.35mn t CO2e of ACCUs needed to meet demand in 2035 and 15.5mn t CO2e in 2050. ACCU supply reached an all-time high of 18.78mn in 2024 and is forecast at 19mn-24mn for 2025 . But the industry needs to boost future issuances to address an expected shift in the supply-demand balance within a few years . By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EIA cuts 2025 US biofuel outlook, ups 2026 view

25/07/08

EIA cuts 2025 US biofuel outlook, ups 2026 view

New York, 8 July (Argus) — The US Energy Information Administration (EIA) today trimmed further its outlook for domestic biomass-based diesel production in 2025 while raising its forecast for next year. US renewable diesel production is expected to average 205,000 b/d in 2025, EIA said Tuesday in its monthly Short-Term Energy Outlook . That was down by 1,000 b/d from its June estimate and a more than 30pc drop from the agency's initial outlook for this year's production. EIA also cut its expectation for 2025 consumption of renewable diesel to 191,000 b/d, down by 5,000 b/d from the June outlook. The lower demand outlook coincides with EIA's cut to expected distillates demand because of muted economic growth. The combined production and demand outlooks imply about 16,000 b/d of net renewable diesel exports this year compared with 34,000 b/d of US net imports last year. Foreign biofuels are no longer eligible this year for a federal tax credit, sharply reducing the incentive to import. Biorefineries have run at lower rates this year because of thin margins and uncertainty about future blend mandates and tax credit policy, although the government has slowly provided more clarity on plans for future years. In 2026, EIA expects 255,000 b/d of renewable diesel production, a 6,000 b/d hike from last month's outlook to what would be an all-time annual high after rapid growth leading up to this year. The agency predicts 234,000 b/d of renewable diesel consumption next year, a 1,000 b/d drop from last month's expectation. Trends were similar for biodiesel, with the agency forecasting tougher economics this year but more output next year. The report now projects 90,000 b/d of US biodiesel production this year and 91,000 b/d of consumption, both down by 1,000 b/d from the June forecast. In 2026, EIA expects 103,000 b/d of biodiesel production, 4,000 b/d more than last month's forecast, with biodiesel consumption at 100,000 b/d, a 3,000 b/d increase from the June report. EIA expectations for "other biofuels", which includes sustainable aviation fuel made through a similar hydroprocessing method as renewable diesel, have generally been more optimistic this year. The latest report keeps projections for this year steady at 38,000 b/d of production and 37,000 b/d of consumption. But the agency now sees US production and consumption balanced at 49,000 b/d next year, a 1,000 b/d increase from its June expectations. The Environmental Protection Agency last month proposed substantially raising biomass-based diesel mandates in the next two years, while also potentially throttling credits for biofuels made abroad or from foreign feedstocks. And President Donald Trump signed into law over the weekend a sprawling budget bill that extends a tax credit for biofuels through 2029 and, starting next year, ups subsidies for crop-based fuels while limiting eligibility to North American feedstocks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

French diesel, HVO customs data mislabelled: Eurostat

25/07/08

French diesel, HVO customs data mislabelled: Eurostat

Barcelona, 8 July (Argus) — French firms have mislabelled imports of 10ppm diesel as hydrotreated vegetable oil (HVO) this year, following confusion over new customs codes, EU data service Eurostat has said. The confusion has come about after the introduction of a new import-export (CN) code for HVO that took effect at the start of 2025. Some French data will be restated. A diesel code of 27101943 was discontinued at the end of 2024 and was replaced by 27101944. A new CN code 27101942 for HVO was introduced. HVO is produced by treating vegetable oil with hydrogen, counts against biodiesel blend mandates, but is molecularly separate from biodiesel output by esterification. When customs data for 2025 began to be published at the end of the first quarter, France appeared to be importing large amounts of HVO from Saudi Arabia and the US. Cargoes from the former amounted to around 255,000t in the first quarter. Saudi Arabia has no HVO production known by Argus , nor does it re-export cargoes. It is France's largest diesel supplier. There were also 140,000t labelled as HVO from the US in January-March. But because the EU has anti-dumping and countervailing duties on US HVO imports, shipments of this size appeared questionable. The US is the second biggest diesel supplier to France. The mislabelling has made French and EU HVO traffic difficult to track. It has distorted French diesel import data , which show imports have fallen sharply. Argus first questioned the numbers in March when initial 2025 customs data were released. These queries were rebuffed, but after a follow up in May Eurostat said French customs had "confirmed that there has been an input error". New data will be supplied by France at an unspecified time this year, it said. By Adam Porter Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU proposes support package for chemicals sector

25/07/08

EU proposes support package for chemicals sector

Brussels, 8 July (Argus) — The European Commission today proposed a package of measures to support the EU chemicals sector, aiming to address high energy costs, global competition and weak demand. The plan includes extending emissions trading system (ETS) compensation to more producers and simplifying fertilizer registration rules. The commission said the simplification measures could save the sector €363mn/yr. The proposals are part of a broader action plan to boost competitiveness and secure supply chains. A new Critical Chemicals Alliance will identify key production sites in need of policy support, including on trade issues such as supply chain dependencies and market distortions. The commission also pledged to apply trade defence measures more quickly and expand chemical import monitoring under an existing surveillance task force. While the commission stopped short of proposing a Critical Chemicals Act — which would legally define specific chemicals for support — it named steam crackers, ammonia, chlorine and methanol as "essential" to the EU economy. The alliance will aim to align investment and co-ordinate support, including through the bloc's Important Projects of Common European Interest (IPCEI) programme. The commission also decided on new rules legally defining low-carbon hydrogen today and said it plans to allow more state aid for electricity-intensive chemical producers by the end of the year. It also encouraged the use of carbon capture, biomass, waste and renewables. EU industry commissioner Stephane Sejourne said the action plan uses "all levers" to put the chemicals sector back on a growth track, with measures to retain steam crackers and other key chemical assets in Europe. He also highlighted efforts to secure domestic demand for "clean and made-in-Europe chemicals". The commission will align fertilizer registration rules with the EU's REACH chemicals framework, applying standard REACH provisions and streamlining the assessment of micro-organisms used in fertilizers. Officials said the changes will maintain safety and agro-economic efficiency standards while allowing a broader range of micro-organisms. For ETS indirect cost compensation, the commission plans to expand the list of eligible chemicals — including organic chemicals and fertilizers — but must first update existing state aid guidelines, a senior EU official said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Dutch renewable fuel credits bookings down on the year

25/07/08

Dutch renewable fuel credits bookings down on the year

London, 8 July (Argus) — Dutch fuel suppliers booked 840,000 of 2025 renewable fuel units (HBEs) into the Energy for Transport Register (REV) by 1 July, down by 39pc from the same time in 2024, according to the Netherlands Emissions Authority (Nea). Each gigajoule of renewable energy that is physically delivered into the Dutch transport sector generates one HBE. The renewable energy share target for the 2025 compliance year is 29.4pc, up from 28.4pc in 2024. Obligated parties will have to surrender their HBEs on 30 April to comply with the blending mandate. The REV's quarterly snapshot of the registry shows fewer HBEs generated from waste (HBE-Gs and -IXBs) and crop (HBE-Cs) but an increase in electricity (HBE-Os). HBE-Gs and -IXBs are generated by fuels from waste feedstocks identified under RED III, under Annex IX part A or part B, respectively. No bookings have yet been made for deliveries to maritime shipping, inland shipping or aviation in 2025. So far, all HBEs for 2025 have been credited for other transport destinations. In the Netherlands, diesel suppliers typically blend used cooking oil methyl ester (Ucome) and hydrotreated vegetable oil (HVO) into their fuel mix, while gasoline suppliers tend to blend conventional, or crop-based, ethanol into their fuel mix. Recently, more ethanol producers have switched from conventional to advanced ethanol production, supplying the market with more HBE-Gs instead of HBE-Cs. This has led to a shrinking spread between the ticket categories. Last week, the discount of -Cs to -Gs narrowed to €0.38/GJ, down from €0.85/GJ last Friday, largely attributed to Europe's currently ample supplies of advanced ethanol and tighter availability of single-counting ethanol. In June , the annual obligation for 2026 and beyond was re-established as part of the implementation of RED III and the HBE scheme will be replaced by so-called emission reduction units (EREs) from 2026. By Madeleine Jenkins Available HBEs for 2025 - as of 1 July mn HBE 2025 bookings Total 2024 carryover 2024 bookings Total 2023 carryover Bookings ±% from 2024 Carryover ±% from 2023 HBE-G 0.34 3.12 0.64 11.67 -47% -73% HBE-IXB 0.15 0.12 0.46 0.62 -67% -81% HBE-O 0.33 0.16 0.20 0.30 65% -47% HBE-C 0.01 0.51 0.05 1.20 -80% -58% Total 0.83 3.91 1.35 13.79 -39% -72% Nea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US biofuel feed prices jump on blending plan

Related news posts

Australian liquid fuels policy to free up ACCUs: CEFC

Australian liquid fuels policy to free up ACCUs: CEFC

EIA cuts 2025 US biofuel outlook, ups 2026 view

EIA cuts 2025 US biofuel outlook, ups 2026 view

French diesel, HVO customs data mislabelled: Eurostat

French diesel, HVO customs data mislabelled: Eurostat

EU proposes support package for chemicals sector

EU proposes support package for chemicals sector

Dutch renewable fuel credits bookings down on the year

Dutch renewable fuel credits bookings down on the year

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