Author Archives: biofuels

Neste is awaiting ASTM approval of crude Tall oil as a SAF feedstock

According to the Helsinki Times, Finland’s UPM, Neste, and St1 are jointly advancing plans to produce sustainable aviation fuel (SAF) from wood residues. UPM’s plant in Lappeenranta is ready to begin production, using crude tall oil—a byproduct from wood processing that is already used to make renewable diesel—as its main feedstock. The company is currently awaiting ASTM approval to use crude tall oil as an SAF feedstock, a process that could take up to two and a half years. Once approved, the plant will immediately commence commercial production. The facility currently has an annual renewable diesel production capacity of 130,000 tonnes.

Indonesia: B50 program to be implemented next year

Indonesia will proceed with its plan to raise the palm oil content in biodiesel to 50% (B50), but the rollout is unlikely to begin in January 2026, according to senior energy ministry official Eniya Listiani Dewi. The new blend requires multiple tests, which could take up to eight months to complete. This year, Indonesia allocated 15.6 million kiloliters of palm oil for its B40 program, up from 13.2 million kiloliters in 2024. The Indonesian Biofuel Producers Association (APROBI) estimates that the B50 mandate could require up to 19 million kiloliters of palm oil annually. The move aims to boost domestic palm oil consumption, reduce reliance on fossil fuels, and support prices, though it may affect export supply dynamics.

EcoCeres calls on EU to implement fair verification system for sustainable biofuels

As the European Union accelerates its renewable energy transition, EcoCeres has released a position paper calling for a robust, transparent, and fraud-resistant verification system to uphold the integrity of sustainability claims in the biofuels sector.

EcoCeres emphasizes that all biofuel producers must adhere to unified standards and maintain transparent data to ensure that sustainability claims are credible and verifiable. “A harmonized approach is essential not only to protect environmental integrity but also to build public trust and advance the circular economy,” the company stated.

The company also pledged to work closely with policymakers and industry stakeholders to develop practical and effective frameworks that strengthen environmental and social standards across the sector. By advocating for transparency and accountability, EcoCeres aims to help create a more resilient and trustworthy biofuel ecosystem that benefits producers, consumers, and the planet alike.

EcoCeres and Xiamen Airlines Partner to Advance SAF Production

On August 1, renewable fuel producer EcoCeres Inc. announced a partnership with Xiamen Airlines to jointly promote the localized collection and production of Sustainable Aviation Fuel (SAF). The two parties will leverage EcoCeres’ existing supply chain network to collect used cooking oil (UCO) from selected restaurant partners and transport it to EcoCeres’ production facilities, where it will be processed into high-quality SAF.

The collaboration aims to advance the circular economy concept of “turning waste into energy” by transforming used cooking oil into aviation fuel—effectively improving resource efficiency and reducing environmental pollution. According to EcoCeres, SAF produced from waste oil can reduce lifecycle carbon emissions by up to 80% compared to conventional fossil-based jet fuel, making it a significant step toward decarbonizing the aviation industry.

In addition, the project strengthens the localized and sustainable supply chain for aviation fuel, contributing to a more resilient green aviation ecosystem. EcoCeres CEO Matti Lievonen stated, “Partnering with Xiamen Airlines enables us to scale up the production of SAF from waste materials more rapidly and further support the aviation industry’s transition toward net-zero emissions.”

This partnership not only reflects the integration of environmental innovation and aviation but also offers a replicable and scalable model for the future development of the SAF industry in China.

Thailand to Announce National SAF Standard Next Year

According to the Bangkok Post, Thailand’s Department of Energy Business recently announced that the country plans to officially release its first national standard for Sustainable Aviation Fuel (SAF) next year, aiming to accelerate the aviation industry’s carbon reduction efforts.

Sarawut Kaewtathip, Director-General of the Department, stated that the draft is being developed with reference to the “ASTM D7566” standard established by ASTM International (formerly the American Society for Testing and Materials). This globally adopted standard ensures that SAF, when blended with conventional jet fuel, meets the necessary quality and safety requirements for commercial aviation.

Sarawut added that the drafting is expected to be completed by September, followed by a two-week public consultation period. During this time, public hearings will be organized to gather feedback from industry stakeholders and the general public.

Laos Launches Pilot Project to Produce Biodiesel from Waste Cooking Oil

Recently, Laos officially launched a pilot project to produce biodiesel from waste cooking oil, aiming to foster innovative energy technologies and sustainable business models. Supported by the Asian Development Bank (ADB) and implemented in partnership with the Lao Ministry of Industry and Commerce, the pilot plant is designed to produce 500 liters of biodiesel per day from waste cooking oil. The biodiesel will first be trialed in vehicles operated by the state power utility. As the first facility in Laos to employ this technology, it will generate baseline data for research aimed at reducing oil imports and boosting domestic renewable energy use.

XCF Global Plans $1 Billion Investment to Build SAF Production Network

XCF Global has unveiled a strategic plan to invest nearly $1 billion (€860 million) over the next three years to build a network of sustainable aviation fuel (SAF) production facilities. This move aims to expand its U.S. operations and accelerate international growth. Since its inception, the company has invested over $350 million (€300 million) in the New Rise Reno project, which has created around 60 full-time jobs in the Reno-Tahoe region. With over 2 billion people now living in countries that mandate SAF use or offer strong incentives, and that number expected to double by 2030, XCF is positioning itself to meet the growing global demand. CEO Mihir Dange emphasized, “We’re not just dreaming of decarbonizing aviation—we’re making it happen.”

EU Approves €36 Million Danish Aid Scheme to Boost Domestic SAF Use

On July 28, the European Commission approved a €36 million ($41.07 million) Danish state aid scheme aimed at promoting the use of sustainable aviation fuel (SAF) on domestic routes. This is the first time the Commission has authorized a state aid scheme specifically to encourage SAF usage in aviation.

The scheme is designed to support at least one domestic air route in Denmark using 40% SAF. Airlines will receive monthly direct grants to cover the additional costs of SAF compared to conventional jet fuel, including related airport infrastructure expenses.

Aid amounts will be determined through a competitive bidding process. The program will support at least 20 commercial one-way SAF-powered flights per week on one or more domestic routes.

To prevent double funding, the scheme explicitly excludes SAF that is already subsidized by Denmark, other EU member states, or non-EU countries. It also ensures that SAF supported under this scheme does not receive overlapping support under the ReFuelEU Aviation regulation or the EU Emissions Trading System directive.

The aid scheme will remain in effect until the end of 2027. It marks a significant step toward Denmark’s green transition in aviation and serves as a potential model for other EU countries to follow.

Indian Oil to Upgrade Panipat Refinery for Sustainable Aviation Fuel Production

According to Reuters, Indian Oil Corp (IOC), the country’s largest refiner, plans to upgrade a diesel desulfurization unit at its Panipat refinery — which has a capacity of 300,000 barrels per day — to produce sustainable aviation fuel (SAF). The revamp is expected to take place either at the end of this year or early next year, with SAF production scheduled to begin in 2025.

The upgraded unit will process used cooking oil (UCO) and is expected to produce around 30,000 tons of SAF annually. This initiative aligns with India’s national target of blending 1% SAF into aviation fuel by 2027 and doubling that to 2% by 2028.

Importantly, the refinery’s diesel output will not be affected during the upgrade period, as Panipat has additional diesel hydroprocessing units to maintain normal operations.

In addition to the Panipat project, IOC is also considering upgrading kerosene-producing units at other refineries to expand SAF production. These efforts highlight India’s growing commitment to sustainable aviation and its broader energy transition goals.

Indonesia’s B50 Biodiesel Plan Poised to Boost Palm Oil Consumption and Support Prices

CIMB Securities, a leading investment bank in Indonesia, recently published a study suggesting that if the Indonesian government implements the B50 biodiesel mandate, domestic palm oil consumption could rise by approximately 3 million tonnes. This increase would represent about 6.2% of the projected 2024 crude palm oil (CPO) production, which stands at 48.2 million tonnes.

The study notes that the B50 policy, expected to take effect in 2026, may provide additional support to CPO prices by offsetting the negative impact of the U.S. decision to raise palm oil import tariffs—19% for Indonesia and 25% for Malaysia—effective from August 1, 2025.

Indonesia’s Ministry of Energy and Mineral Resources has announced plans to adopt the B50 standard, although the final mandate for 2025 has yet to be confirmed. The government is still consulting with experts and assessing feedstock availability and refining capacity. The ministry indicated that five new biodiesel plants would be required to support B50 implementation, but only three are currently under construction.

CIMB remains optimistic about Indonesia’s ability to achieve its B40 blending target in 2025, which could boost domestic CPO consumption by 2 million tonnes and reduce export surpluses. Out of the allocated 15.62 million kiloliters of biodiesel, 7.55 million kiloliters (48%) will be used in public services such as transportation and fully subsidized, while the remaining portion will be sold at market prices without subsidies.

The bank emphasized that the potential rollout of B50 is a key factor to watch, as it may tighten Indonesia’s palm oil exports in 2026, providing short-term price support. Meanwhile, Malaysia is expected to raise its CPO reference price and increase export tariffs to 9% in August.