Imperial sees biofuel unit as cutting out imports

: Agriculture, Biofuels, Emissions, Oil products
26/01/30

Imperial Oil's new renewable diesel unit, Canada's largest, is reducing the company's needs for biofuel imports.

The Canadian oil company, majority-owned by US major ExxonMobil, started up a 20,000 b/d renewable diesel complex in Strathcona, Alberta last year. Canada has strong incentives for consuming lower-carbon fuels but until recently has lacked much of its own renewable diesel capacity, spurring significant imports from major US suppliers like Valero.

But the Imperial Oil unit is "running well and has reduced our reliance on high-cost imported products", Imperial chief executive John Whelan told analysts Friday. He forecast strong liquid fuel demand in Canada, particularly for biofuels.

The company is already "seeing the benefit" of being able to add its own renewable diesel into its year-round diesel sales, Imperial vice president for downstream Scott Maloney added.

Imperial as a major fuel supplier has obligations to meet under the country's low-carbon fuel standard, which requires yearly reductions of road fuel carbon intensity. Suppliers like Imperial must offset deficits produced by higher-carbon fuels exceeding the annual limits with credits generated from the distribution to the market of approved, lower-carbon alternatives.

Renewable diesel imports from US have been a flashpoint in Canada at a time of already-chilly trade relations, with some local producers warning that they cannot compete against the influx of subsidized US fuel. Burned by the US moving away from a tax credit that previously helped Canadian biofuel, Canadian renewable diesel producer Tidewater Renewables pushed unsuccessfully last year for tariffs on US product.

But more Canadian production, sped along by more supportive federal and provincial policies, could reduce some of those concerns.

It is still not clear, however, exactly how much renewable diesel Imperial Oil is producing, especially after executives flagged last year that hydrogen availability would affect the speed of the facility's ramp-up. Whelan said Friday that the company would "continue to optimize production at the facility based on hydrogen availability".

By Cole Martin

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26/02/03

Australian renewable agency fund excludes some biofuels

Sydney, 3 February (Argus) — The Australian Renewable Energy Agency (Arena) has released the structure of its updated low-carbon liquid fuels (LCLF) funding round under the Future Made in Australia (FMA) innovation fund, with a narrower fuel scope that excludes biodiesel, biomethane, hydrogen and ammonia-based fuels from eligibility. Under the A$250mn ($174mn) LCLF fund's 2026 technology focus areas, Arena will only support projects producing sustainable aviation fuel (SAF), renewable diesel (RD) and methanol, describing these as having the highest innovation potential and strongest market demand in hard-to-electrify sectors such as aviation, long-haul freight, mining and maritime transport. Projects "developing or using biodiesel, biomethane, hydrogen and/or ammonia as the end product are not under consideration", the agency said, marking a departure from earlier Arena bioenergy programmes, which allowed broader feedstock and fuel pathways. The A$250mn fund, part of the government's wider A$1.5bn FMA fund, includes capital support for commercial-scale SAF and RD plants, alongside grants for pre-commercial demonstrations and feedstock development. The new programme also introduces dedicated funding for supply chain enablement and biogenic feedstock trials, areas not previously supported at this scale. Separately, the Australian government will spend A$1.1bn to support the production of LCLF in Australia. Arena's updated framework emphasises deployment rather than early stage research and development, with commercial project grants of up to A$50mn and mandatory alignment with sustainability schemes such as Corsia and the forthcoming national Guarantee of Origin system. More than 70 stakeholders participated in the consultation process ahead of changes to funding eligibility, with Arena citing strong demand for SAF and RD projects and emerging interest in e-methanol for shipping. By Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australia pledges $42mn to boost EV sales

26/02/03

Australia pledges $42mn to boost EV sales

Sydney, 3 February (Argus) — The federal government of Australia will spend $A60mn ($42mn) to subsidise loans for electric vehicles (EVs), in a bid to increase the uptake of lower-emissions cars. Money allocated by the federally-funded agency Clean Energy Finance (CEFC) will go towards subsidising interest rates for new EVs available for purchase through Hyundai Capital Australia, an arm of the South Korean carmaker, energy minister Chris Bowen said on 3 February. Discounts of 0.5-1pc will be offered for loans on eligible Hyundai- and Kia-branded EVs, with a 1pc discount on a A$70,000 loan over five years cutting A$1,900 in interest costs, Bowen said. Transport remains a major source of Australia's emissions, with 98.7mn t of CO2 equivalent (CO2e) in the year to 30 June 2025, or 22.5pc of total emissions of 437.5mn t . Canberra's New Vehicle Efficiency Standard (NVES) is taxing manufacturers based on CO2e emissions , which it projects is likely to drive up EV sales. But transport emissions rose by 0.3pc to 98.7mn t CO2 equivalent (CO2e) in 2024-25 on the back of a rise in diesel consumption for road transport and jet fuel demand. A ban on new gasoline and diesel registrations may be needed to reach a goal of 50pc of new car sales being EVs by 2030 to drive down emissions, industry body the EV Council has said. But 2025 was a record for EV sales, with 156,000 purchased. But about one-third were plug-in hybrid vehicles which can also run on gasoline or diesel. The NVES has provided policy certainty and increased availability of EVs in Australia but has so far had little effect on EV demand, the Federal Chamber of Automotive Industries (FCAI) has said. FCAI data show just 8.3pc of new vehicle sales were battery EVs last year. Australia's fuel tax rebate scheme has also been targeted by lobbyists demanding it be capped to reduce diesel demand , but industry insists that the road-user tax should not apply to businesses not using public infrastructure. Australia's gasoline sales are dipping. Gasoline sales averaged 271,000 b/d for January-November 2025, compared with 278,000 b/d during January-November 2024 and 276,000 b/d during January-November 2023, according to data from Australian Petroleum Statistics. Consumption was 298,000 b/d for the same period in 2019 before the Covid-19 pandemic. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EU eyes maritime decarbonisation, industry strategy

26/02/02

EU eyes maritime decarbonisation, industry strategy

Brussels, 2 February (Argus) — The European Commission is expected to publish a maritime manufacturing industrial strategy on 18 February, a leaked draft of which underscores the need for "mechanisms" to earmark national emission revenues for maritime decarbonisation. Beyond funds from a projected €10bn/yr by 2030 in national revenues raised from shipping emissions under the EU emissions trading system (ETS), the commission will make available 20mn ETS allowances assigned to the bloc's innovation fund for demonstration and pre-deployment — worth approximately €1.6bn — earmarked to support maritime emissions reductions until 2030. Future innovation fund calls for proposals could focus on production and uptake of renewable and low-carbon fuels. The draft, which is expected to change before final publication, said a commission-led task-force will explore additional technical support and "match-making" tools to connect ports, shipping companies, shipyards, equipment manufacturers and fuel producers. The commission will also leverage public and private funding towards "made in EU" vessels, technologies and equipment, boosting construction of next-generation low and zero-carbon vessels. It promises a "robust" policy framework for nuclear power propulsion in commercial shipping and commits to mobilising €800mn for shipbuilding, retrofitting, shipping and blue tech by 2028. The draft further calls for boosting wind-assisted propulsion using the EU's sustainable finance taxonomy. The upcoming revision of EU public procurement law will introduce targeted non-price requirements, including sustainability, circularity and made in EU criteria. Export credits will also include specific provisions for zero and low-emission ships. The commission plans to allocate €160mn to finance a Zero Emission Waterborne Transport programme until 2027, with an additional €8mn allocated to fuel cells. Officials will "streamline" existing monitoring, reporting and verification requirements under the EU ETS and the FuelEU Maritime regulation , which sets greenhouse gas intensity cuts for marine fuels used in ships over 5,000 gross tonnage, starting at 2pc in 2025 and reaching 80pc by 2050, against a 2020 baseline. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Slow UN carbon market advance on removals

26/02/02

Slow UN carbon market advance on removals

Berlin, 2 February (Argus) — The emerging UN carbon market under Article 6.4 of the Paris Agreement, Pacm, saw slow progress last week on draft rules for carbon removals accounting, as experts tasked with working on new Pacm methodologies convened at the UN climate arm's headquarters in Bonn, Germany. The panel made some decisions on the so-called reversal assessment tool, which aims to determine the number of Pacm credits to contribute to the market's reversal risk buffer account, acting as a form of insurance for removal projects. The tool will help calculate individual risk factors, combined risks and the reduction in reversal risk factors, based on any remediation measures implemented by activity proponents. A buffer factor, expressed as a percentage of credited carbon, would then be calculated, depending on the choices made by project proponents. The higher the percentage, the more credits must be set aside for an activity. The panel will also determine specific activity risks, with an initial focus on forest carbon storage, geological carbon storage and biochar. These are not only the most prevalent removal activities in the carbon market, but also dominate those transitioning from Pacm's precursor, the Clean Development Mechanism (CDM). The panel and the Article 6.4 supervisory body were tasked by countries at the UN Cop 30 climate summit in Brazil in November with prioritising CDM transitions . The panel will consider other types of removal activities at a later stage. More progress was made last week on the draft rules for renewable electricity generation, on which the panel released a draft methodology for supervisory body approval. It would become the second approved Pacm methodology, if adopted. The first methodology for generating carbon credits, on flaring or use of landfill gas, is regarded as substantially stricter than its CDM predecessor. Pacm's downward adjustment factor ensures that baseline emissions decline more significantly over time than under the CDM. South Korea-based carbon project developer Ecoeye said under the Pacm landfill gas methodology, flaring-only projects carried out in host countries outside least developed countries are likely to experience a 52–76pc reduction in credited emission reductions, compared with CDM-based estimates, over a five-year period, while for electricity generation and heat production it projects a 34–42pc reduction. The potential third Pacm methodology to be adopted, on clean cooking, considers new submissions while carrying over some elements from an existing CDM methodology. Another methodology under consideration, on nitrous oxide abatement from nitric acid production, might also see a draft proposal at the next expert panel meeting in March. Six new Pacm methodologies in total are under consideration. The latest entry is on fertiliser production with renewables-based ammonia, for which a call for public input closed on 27 January. The panel is considering merging this methodology — the development of which was financed by the Germany-supported International Hydrogen Ramp-Up Programme — with another for ammonia production through electrolysis. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

France lagging on renewables directive: commission

26/02/02

France lagging on renewables directive: commission

London, 2 February (Argus) — France has still not fully transposed the renewable energy directive (RED III) into national law, the European commission has found, and now has two months to complete transposition before the commission may begin court proceedings. RED III entered into force in November 2023, and had to be transposed into national law by 1 July 2024. It includes a Europe-wide target for renewable sources to make up 42.5pc of final energy consumption by 2030, as well as provisions on accelerating permitting for renewables and grid infrastructure, imposing time limits on approvals and presumptions of public interest. France received a formal notice of failure to fully transpose the directive in September 2024, along with 25 other member states. It was then in February last year one of eight states to receive a reasoned opinion from the commission for failing to show that its transposition measures achieved the objectives of the directive, before receiving a further reasoned opinion last week. The commission could refer France to the court of justice of the European Union, and request financial sanctions be imposed, it said. Renewable energy made up 22.4pc of France's final energy consumption in 2023, slightly below the EU-27 average of 24.6pc. The country's 2019 climate law set a target of 33pc by 2030. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Imperial sees biofuel unit as cutting out imports

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Australian renewable agency fund excludes some biofuels

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