Airbus to adapt airplanes to 100pc SAF by 2030

: Biofuels, Emissions, Oil products
26/06/15

Airbus is using 100pc sustainable aviation fuel (SAF) on test airplanes in Brazil and it could authorize use of the biofuel in its commercial jet engines by 2030.

The company has been running 100pc SAF tests on some aircraft in Brazil to analyze which components would need to be adjusted for the renewable fuel, Airbus Brazil's president Gilberto Peralta told attendees at the Argus Biofuels and Feedstocks Latin America conference in Sao Paulo on Monday.

Peralta said SAF could offer advantages over fossil jet fuel, as it does not emit sulphur into the atmosphere and produces 50pc fewer condensation trails, according to the company's tests.

He highlighted that the SAF market in Brazil still lacks fiscal incentives but said it could become the world's largest SAF producer. The alcohol-to-jet (AtJ) pathway could be favored thanks to the cost and availability of ethanol in Brazil, he added.

Brazil's fuel of the future law plans a SAF mandate in 2027, requiring airlines to decrease emissions by 1pc using SAF. Companies must reduce their greenhouse gas emissions on domestic flights by 10pc by 2037.

Feedstock costs are still considered expensive, but the first years of the mandate can be supplied by co-processed SAF production, state-controlled Petrobras' senior specialist Ricardo Pinto said.

By Lucas Lignon

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26/06/17

Brazilian ethanol flows start slow under EU-Mercosur

London, 17 June (Argus) — Ethanol exports from Brazil to the EU under the interim Trade Agreement (iTA) with the Mercosur trade bloc, which began on 1 May, have been sluggish so far, as a result of confusion around quota management, difficulties with export licences and uncertainties about the tracking of imported ethanol's final application. Brazil, the Mercosur's largest ethanol producer with a nameplate capacity of more than 77mn t/yr, exported 7,277m³ — approximately 5,780t — of ethanol to EU countries in May, the lowest volume since March 2025, according to Brazilian trade ministry Mdic data. Mercosur is a trade bloc including Brazil, Argentina, Uruguay and Paraguay as permanent members. Increased freight costs as a result of the Iran-US war as well as lower availability of product at the beginning of the 2026-27 sugarcane crop, which spans from 1 April 2026-31 March 2027, weighed on exports. But caution over the EU-Mercosur trade agreement also played a role in diminishing Brazilian ethanol exports to Europe. Many producers and exporters are struggling to access the quotas, and others are waiting to see how practical terms of the deal will unravel. None of the cargoes from Brazil in May have arrived in Europe under the iTA quota, according to market participants. Legal limit Under the EU's implementation regulation, import quotas from Mercosur suppliers are managed under licences and not on a first-come-first-served basis, as some market participants previously assumed. This assumption created some hesitation, with a market participant pointing out that if a cargo was delayed it would run the risk of arriving after the quota had been already allocated, meaning that it would not benefit from the lower or zero tariffs under the quota and incur the maximum Most Favoured Nation (MFN) duty of €192/m³ for undenatured ethanol and €102/m³ for denatured ethanol. Bureaucracy surrounding the licences to benefit from reduced tariffs is also weighing on exports from Brazil. Brazilian producers are struggling with the paperwork needed to export with tariff exemption. Some have even reportedly been denied access, because the Brazilian government only grants the licence to producers and exporters of sugarcane-based ethanol from the north or northeast of the country. Brazil's trade ministry Mdic confirmed to Argus that ethanol from other regions and sources, such as corn, will face no such restrictions. Up until the end of 2026, only a small amount of imported ethanol from Mercosur suppliers will be able to profit from the lower or zero tariffs. This is because the iTA allows for imports of up to 650,000t/yr of Mercosur-origin ethanol, phased in across five years. In 2026, duty-free ethanol imports of only 90,000t are permitted for chemical use and only 40,000t for other purposes, including fuel blending, at an in-quota tariff rate equalling a third of the standard MFN duty. The quotas for this year could be quickly met, considering an IMO2 coated medium range tanker can carry up to 40,000t of ethanol, while a standard stainless steel vessel can carry up to around 18,500t. Smaller chemical tankers frequently carry ethanol too. The EU imported over 60,500t of undenatured ethanol from the Mercosur region in 2025, with more than 72pc of this coming from Brazil, according to Eurostat data. Alcohol misuse Market participants have also voiced uncertainty in relation to how the European Commission will track which industry the imported ethanol will ultimately end up in. Several told Argus that they question what will happen if ethanol imported for the chemical sector ends being used for a different purpose. Under Annex 2-A of the iTA the EU can subject imports to an End-Use Procedure , to conduct the relevant customs checks on the imports' declared use, and that can be applied ethanol imports to ensure their final application. The EU's Union Customs Code (UCC) outlines that to obtain authorisation for this procedure an applicant must have a registered office in the EU customs territory, provide the necessary assurance that the operations using these goods will be properly implemented and provide a guarantee. If end-use conditions are then breached under general EU customs law, a customs debt is incurred, and the importer must pay the difference, plus interest on arrears. Member states set financial penalties for misdeclaration under national law. By Toby Shay and Maria Ligia Barros Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Asia, Europe drive Brazil's ethanol demand: Panel

26/06/16

Asia, Europe drive Brazil's ethanol demand: Panel

Sao Paulo, 16 June (Argus) — Asian and European markets have been driving increasing demand for Brazilian ethanol, including for new market opportunities beyond road fuels, panelists said at the Argus Biofuels and Feedstocks Latin America conference in Sao Paulo on Tuesday. Global demand for ethanol from top biofuel producers Brazil and the US has grown on rising blend mandates in Asian countries such as Vietnam and India and higher fuel supply risks because of the war in the Middle East, Brazilian corn ethanol producer FS' commercial director Paulo da Cunha said. While US ethanol mostly heads to Asia and UK, there is a growing demand for Latin American — especially Brazilian — ethanol in Europe that could rise even more thanks to the recently adopted Mercosur-EU free trade agreement , Paraguayan corn ethanol firm Inpasa's trading director Renato Zicardi said. Brazil's domestic market isinvesting to supply sectors other than road transport, including the alcohol-to-jet route for sustainable aviation fuel and ethanol-fueled vessels, Cunha said. The International Maritime Organization has approved a corn-ethanol route for maritime transport, Zicardi said. Corn- and sugarcane-based ethanol complement each other and are not competitors, further supporting demand, Cunha said. The maturity and diversity of financing sources in Brazil for ethanol projects should help the sector develop in coming years without major hurdles, Spain-based bank Santander's project finance director Marcelo Sahatdjian said. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

French E85 gasoline demand at record high in April

26/06/16

French E85 gasoline demand at record high in April

Barcelona, 16 June (Argus) — Demand for E85 gasoline in France rose to a record high in April, as customers switched from more expensive grades because of the effects of the US-Iran war. Data from industry body Bioethanol France show consumption of the 85pc ethanol blend, which is used in flex-fuel vehicles, increased to 69,000t, from 58,000t in March. This was 15pc higher on the year. Its 6.5pc share of French gasoline consumption was the most since February 2024. Demand for the grade was higher by 43pc since the start of the war at the end of February. There was a similar increase in February-March 2022, when Russia launched its full invasion of Ukraine (see chart) . Since February, French gasoline prices have risen sharply to around €1.98/litre and as high as €2.15/l in rural areas. E85 is around €0.85¢/l. Supportive of longer term E85 demand, some vehicle owners are switching permanently by installing a component that converts a gasoline car to run on E85. French garages and mechanics have reported sharp increases in conversions since the start of the war. Others are choosing to run E85 either neat or more often blended with gasoline, an approach that risks some engine corrosion, as well as potential insurance invalidation. E85 accounted for around 48pc of French fuel ethanol consumption in April. Data from Bioethanol France and Argus calculations show ethanol demand in April — including oxygenate ETBE — at above 140,000t, up by 4pc on the year and from 130,000t in March. Demand in the first quarter was 505,000t, up by 2pc on the year. In April, 10pc grade E10 sales were 615,000t, up by 1.2pc on the year for a 61pc share of total gasoline sales. Sales of premium grade SP98 — that contains 1pc ethanol and up to 15pc of oxygenate ETBE, which can contain 47pc ethanol — were 205,000t, down by 3.5pc on the year. Demand for 5pc SP95 fell by 13pc on the year to 120,000t. This meant E85 sales equated to 57pc of SP95, easily the highest on record. Overall ethanol consumption equated to an estimated calorific share of 9.1pc in April, a three-year high. France is likely to be meeting its blending goal of 9.9pc using ethanol made from double-counted feedstock, with energy ministry figures suggesting this is the case. By Adam Porter E85 demand vs gasoline price '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Bilateral UN carbon market under scrutiny

26/06/15

Bilateral UN carbon market under scrutiny

Berlin, 15 June (Argus) — Bilateral carbon trading under the Paris agreement has come under scrutiny for insufficient environmental integrity at the Bonn climate talks, a halfway conference between UN Cop climate summits. Buyer and seller countries under Article 6.2 of the Paris agreement in Bonn defended the "inconsistencies" identified in the mandated initial reports submitted. A total of 23 countries, about half of those active under Article 6.2, have submitted reports so far. Technical reviews of the reports undertaken by UN climate arm UNFCCC had identified issues such as insufficiently conservative baselines against which emissions reductions are measured, and non-permanence of nature-based activities. The reviews also suggested a lack of alignment between carbon activities and countries' climate plans and long-term low-emission development strategies under the Paris agreement, known as nationally determined contributions and LT-LEDS, respectively. Countries active in Article 6.2 cautioned against treating every inconsistency as proof of a defective activity, arguing that many findings may reflect weaknesses in reporting rather than in the underlying co-operation. Diversity should be seen as a strength of Article 6.2, as it allows markets space and time to evolve, a delegate for the Like-Minded Developing Countries bloc said. Switzerland, an Article 6.2 frontrunner, said that it had chosen a project-by-project pathway, scrutinising the project as well as the underlying methodology, drawing on the expertise of its environment ministry and external experts including rating agencies. The Swiss delegate said that "experience" had shown that "the same methodology can be applied in very different ways with very different outcomes", arguing that strict methodologies do not always do justice to individual projects, such as clean cookstove projects. As a result, Switzerland has in some cases set up a "mini carbon-crediting standard" for a co-operation, the delegate said. Japan, which under its Joint Crediting Mechanism (JCM) has signed the most bilateral agreements of any host country, stressed that it has no intention to align the JCM with the Paris Agreement Crediting Mechanism (Pacm) under Article 6.4 of the Paris deal, emphasising the JCM's "conservative" baseline. But an EU delegate argued that a closer alignment between Pacm rules and Article 6.2 would "considerably" reduce inconsistencies, given Pacm's "well-known" and "helpful" methodological tools such as the downward adjustments to baselines. Some delegates and observers voiced their concern about the lack of rules on the reversal of emissions removals under Article 6.2. The EU delegate flagged the "challenges" of this issue, which even the Pacm regulator is finding "very" difficult to address. It is not clear, for instance, what will happen if there are insufficient credits in the buffer pool designed to compensate for reversals, the EU said. Switzerland is looking at potential closer alignment between Article 6.2 and Pacm, but this would depend on the future choices made under Pacm, the Swiss delegate said. The African group delegate urged Article 6.2 host countries only to submit their initial reports once domestic institutional arrangements and robust standards are in place. South Korea-based Global Green Growth Institute's head of carbon pricing, Fenella Aouane, flagged the struggle many host countries face in developing vital institutional arrangements for Article 6.2 activities such as monitoring, reporting and verification provisions, or domestic registries. No agreement was reached at the talks on how "prescriptive" Article 6.2 should become. Another issue without agreement was revised funding arrangements for Article 6.2 activities, given that the UNFCCC faces an estimated financing gap of about €8mn–9mn to 2027. Developing country groups warned against any financing that could create new barriers to participation, while developed countries called for self-financing models. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Regulation gap driving low German B100 prices

26/06/15

Regulation gap driving low German B100 prices

London, 15 June (Argus) — B100 marine biodiesel has been trading at very low prices at German ports this year, primarily — market participants said — because mismatched regulations have created an arbitrage between different regulatory regimes. B100, which is 100pc Advanced fatty acid methyl ester (Fame), has been selling at the German port of Hamburg for around €700-800/cbm in the first half of 2026, equivalent to about $914-1,044/t. This compares with the same fuel sold dob Netherlands, which averaged $1,210.10/t during 22 January-22 May. The lower price is achieved by two mechanisms, participants said. The first is a reduction in the total cost of the fuel, created by the value of German renewable fuel tickets generated via the German GHG quota system. Maritime supplies are not currently eligible for quota generation in Germany, since international shipping was excluded from the scope of the EU renewable energy directive (RED) III transposition into German law . But, separately, such fuels can nevertheless qualify for renewable ticket status if they are taxed as road transport fuels, under article §52 of Germany's energy tax law (EnergieStG). Some of the marine product sold at low prices meets EN14214 specifications, widely considered to be the "gold standard" for biodiesel products heading into road fuels. According to the German General Customs directorate, it is currently permissible for biofuels physically used in maritime transport to be counted towards the German GHG quota system, provided they meet the tax requirement. This interpretation has not been altered by the latest amendment to the quota system rules, which entered into force on 5 June. As a result, some market participants have been able to generate quotas from supplying advanced Fame into the marine sector, allowing buyers to benefit from an effective price discount reflecting the value of the quotas. The second mechanism enabling lower prices is the possibility of reclaiming the energy tax paid after the fuel has been used in international shipping. Under German tax law, energy products that have been demonstrably taxed can qualify for tax relief if they are subsequently used for exempt purposes, such as commercial maritime transport. This applies to biodiesel, meaning that buyers may initially pay the full taxed price and later apply for a refund once the fuel's maritime use is proven. This creates a structural inconsistency — taxation is required to generate renewable fuel tickets, while tax relief remains available after maritime use. The process can take many months, however, and can only be initiated after the fuel volume is completely used, which means those taking this path require credit lines and imposes some constraints on use of the loophole. Further, participants told Argus that obtaining the reduced price is only viable by bunkering B100 and other, more commonly used, blends such as B30 would not qualify. Many vessels do not burn B100 because of concerns about engine compatibility and the possible impact on warranties provided by engine manufacturers. Shipowners told Argus that often a prior approval from the engine manufacturer may be required to burn B100 while retaining warranty and insurance protection in case of any future issues. Some added that the US-Iran war has contributed to "liquidity pressures" for many companies, resulting in hesitation to take on the fuel while awaiting a tax rebate that will arrive many months after the fuel purchase. The German Federal Council (Bundesrat) has acknowledged the issue and indicated its intention to close what it describes as a loophole arising from the interaction of tax and quota rules. The concern is that fuels used in maritime transport are effectively being used to meet road transport decarbonisation targets, undermining the integrity of the system. While no concrete cases of abuse have been formally identified by customs authorities, the current framework allows for such outcomes. Some market participants have warned that any tightening of the rules could potentially be applied in a way that affects existing transactions, although there is no official confirmation of retroactive measures. Some suppliers that had previously offered discounted B100 have reportedly withdrawn such offers since March, reflecting growing regulatory uncertainty. By Hussein Al-Khalisy and Marcel Rothenstein Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Airbus to adapt airplanes to 100pc SAF by 2030

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Brazilian ethanol flows start slow under EU-Mercosur

Brazilian ethanol flows start slow under EU-Mercosur

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