Author Archives: biofuels

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.

Proposed large-scale SAF plant in Australia using methanol as raw material

HAMR Energy announced on July 28 that it plans to develop Australia’s first large-scale methanol-to-sustainable aviation fuel (SAF) production facility following the successful completion of a feasibility study, with an estimated project investment of AUD$700 million to AUD$800 million (approximately US$455 million to US$520 million). The project is a key component of HAMR Energy’s strategy to respond to new regulations in the international aviation industry that progressively allow the use of methanol as a feedstock for SAF.

HAMR plans to convert 300,000 tons of low-carbon methanol produced from forestry residues and hydrogen at its Portland-based renewable fuels project into approximately 125 million liters of SAF, which could support approximately 3.5 million carbon-neutral flights per year for economy class passengers between Sydney and Melbourne. The scalability and versatility of methanol as a feedstock for renewable fuels will help alleviate the projected global supply gap of 10 million tons of SAF by 2030, the company said.

South Australia and Victoria were identified as ideal locations based on research, and HAMR’s vertically integrated “biomass-to-fuel” model reduces production costs, making it attractive to airlines looking to lock in a long-term supply of low-carbon fuel.

Company co-founder David Stribble emphasizes Australia’s potential to develop a world-leading low carbon liquid fuels industry that will not only attract significant investment, but also contribute to regional employment and national energy security. HAMR is currently nearing completion of its A$10 million Series A funding round and has the attention of a number of strategic partners.

Eni’s $500 million financing agreement signed, production of hydrogenated vegetable oil (HVO)

On July 24, Italian energy giant Eni announced the signing of a €500 million (approximately $588 million) financing agreement with the European Investment Bank (EIB) to support the conversion of its traditional refinery in Livorno, Tuscany into a modern biorefinery. The 15-year loan agreement was formalized at Eni’s headquarters in San Donato Milanese by EIB Vice President Gelsomina Vigliotti and Eni CEO Claudio Descalzi.

As the EU’s long-term lending institution, the EIB supports strategic green investments aligned with EU policy goals. This project will involve the construction of a new Ecofining™ plant with an annual capacity of 500,000 tonnes, along with a bio-feedstock pre-treatment facility. Using Eni’s proprietary Ecofining™ technology, the facility will produce hydrotreated vegetable oil (HVO), a renewable diesel made from waste cooking oil and agricultural residues. HVO can replace fossil diesel without infrastructure modifications and is suitable for road, rail, aviation, and marine transport.

Vigliotti highlighted the project’s strategic significance from both a technological and environmental perspective, calling it a model for industrial innovation driving climate neutrality. Descalzi emphasized that the Livorno biorefinery will contribute to Eni’s goal of reaching 5 million tonnes of bio-refining capacity by 2030, becoming the third such facility in Italy after Venice and Gela.

Notably, the plant will also have the flexibility to produce sustainable aviation fuel (SAF), supporting the EU’s green aviation ambitions. With global HVO demand projected to grow by 65% between 2024 and 2028, this investment not only aligns with the EU’s Renewable Energy Directive (RED III) but also helps Italy meet its legal target of using 1 million tonnes of biofuels by 2030.

IATA denounces EU SAF fuel policy as ineffective and costly

According to Reuters in Singapore, the International Air Transport Association (IATA) has intensified its criticism of the European Union’s (EU) mandatory sustainable aviation fuel (SAF) policy. At a recent media roundtable, IATA Director General Willie Walsh stated that the EU’s approach is not only costly but also ineffective in delivering real environmental benefits, especially given the current limited availability of SAF.

Walsh emphasized that transporting SAF from other regions to Europe increases logistics costs and carbon emissions, undermining the environmental purpose. “Mandating the use of a product that is not available will not yield any environmental gain,” he said.

He also warned that the EU policy distorts the market, effectively encouraging monopolistic behavior among suppliers. According to Walsh, companies obligated to produce SAF are using the mandate to inflate the price of conventional jet fuel, ultimately passing the burden onto airlines and passengers without delivering meaningful sustainability outcomes.

Walsh called on the EU to reassess its sustainability goals and adopt more balanced, effective policies, particularly in the areas of agriculture and fuel supply chains.

EcoCeres White Paper Seeking Fair, Effective, Fraud-Proof EU Certification for Sustainable Biofuels

EcoCeres Inc., based in Hong Kong, has recently issued a position paper highlighting the importance of fairness, effectiveness, and anti-fraud measures in the EU’s sustainable biofuel certification framework. As Europe accelerates its transition to renewable energy, ensuring the integrity and transparency of sustainability claims has become more crucial than ever. The paper calls for practical, transparent, and universally recognized verification mechanisms to uphold market credibility, support environmental goals, and build trust among consumers and industry stakeholders.

Key highlights include support for EU biofuel verification reforms with an emphasis on fair and anti-fraud measures; a call for uniform rules for both EU and non-EU producers and feedstocks; a warning against overly burdensome controls that may disrupt limited-supply products like SAF; a push for stakeholder-inclusive processes; and a recommendation to enhance the EU biofuel database (UDB) for better traceability.

EU: No Fraud Found in Chinese Biodiesel Imports, But Tighter Oversight Planned

On July 18, the European Commission announced the conclusion of its investigation into Chinese biodiesel imports, stating that no fraudulent behavior was identified. However, the investigation did uncover systemic weaknesses in the certification process, prompting the EU to strengthen its regulatory framework.

The investigation stemmed from concerns raised by German authorities in 2023, who suspected potential fraud in biodiesel imports from China. In response, the European Commission conducted a thorough evaluation in close coordination with Germany. While no direct evidence of fraud was found, the Commission noted that further checks could still be carried out if Germany deems it necessary.

Although fraud was not confirmed, the investigation revealed flaws in the way sustainability certifications were audited and verified. To address these issues, the Commission will implement several key measures:

  • A dedicated working group has been formed to consider revisions to relevant regulations aimed at preventing fraud. These updates are expected to be completed by 2026 at the earliest.

  • The EU will push for the mandatory use of its biofuel traceability database, which is already operational but not yet universally adopted. The Commission emphasized that broad, mandatory participation is essential for full transparency.

  • Technical support will be increased to help voluntary certification schemes better implement existing rules and improve credibility.

While the EU currently does not plan punitive actions against Chinese biodiesel exports, this move signals a tightening of oversight systems. It also lays the groundwork for more robust and transparent trade practices in the renewable fuel sector moving forward.

Malaysia Launches B30 Biodiesel Pilot Project

SD Guthrie has launched a B30 biodiesel pilot project in collaboration with Malaysia’s Ministry of Plantation and Commodities (KPK), Petronas Dagangan Berhad (PETDAG), and the Malaysian Palm Oil Board (MPOB). The initiative aims to assess the reliability and scalability of high palm oil content biodiesel in real-world applications.

As part of the project, SD Guthrie will convert all plantation machinery and vehicle fleets on Carey Island, Selangor, to run on B30 fuel—a blend of 30% palm-based biodiesel and 70% petroleum diesel—supplied by PETDAG from its Melaka terminal.

The company expects the switch to reduce greenhouse gas (GHG) emissions by up to 23% in its daily operations. Managing Director Dato’ Mohamad Helmy emphasized that the move underscores SD Guthrie’s leadership in decarbonizing the plantation sector and aligns with Malaysia’s broader goal of reducing reliance on fossil fuels by promoting palm-based alternatives. “B30 biodiesel marks a critical milestone in our journey toward net-zero emissions. It not only helps us cut GHG emissions but also sets a new benchmark for sustainable practices in the plantation industry,” he said.

While B30 biodiesel currently comes with higher production costs, Helmy expressed hope that the project will pave the way for nationwide adoption, ultimately boosting domestic palm oil consumption and enhancing energy security.

Greenergy plans to close biodiesel plant

On July 10, Greenergy, a UK fuel company owned by global commodities trader Trafigura, announced plans to close its biodiesel plant in Immingham, northeast England, and initiate consultation procedures for approximately 60 employees. This decision comes as another blow to the UK fuel industry following the bankruptcy announcement by Prax, the operator of the nearby Lindsey refinery. Greenergy stated that since halting production in late May and conducting a strategic review, despite implementing significant cost-cutting measures, the market environment remains unfavorable.

The plant supplies approximately one-quarter of the UK’s annual biodiesel production, producing biodiesel from waste oils and blending it into conventional diesel to reduce carbon emissions. Greenergy was acquired by the Trafigura Group last year. CEO Adam Treggor acknowledged that under the slow growth of UK biofuel policies and pressure from low-cost exports from the US, the company has struggled to make necessary investments in the Immingham plant to maintain operational competitiveness. This also highlights the UK’s lag in advancing renewable fuel policies.

XCF invests $1 billion to build multiple SAF production facilities

On July 10, XCF Global Inc. announced a major strategic plan to invest nearly $1 billion over the next three years to develop multiple sustainable aviation fuel (SAF) production facilities in the United States, further expanding its influence in the clean energy sector and advancing its global growth strategy.

Since its inception, XCF has invested over $350 million in its New Rise Reno facility in Reno, Nevada, creating approximately 60 full-time jobs, demonstrating its ability to drive large-scale SAF commercialization. The expansion plan will add three new facilities with an annual production capacity of 40 million gallons each, located in Florida, North Carolina, and Nevada. These facilities are expected to come online between 2027 and 2028, bringing the total production capacity to 160 million gallons annually.

With over 2 billion people worldwide living in regions with SAF policy incentives, and projections indicating this number will grow to 4 billion by 2030, XCF is accelerating its international expansion. The company has signed a memorandum of understanding with Continual Renewable Ventures to establish the New Rise Australia platform in Australia, replicating its patented modular design and multi-fuel production model.

CEO Mihir Dange stated that the company is advancing aviation decarbonization through a “technology + capital + speed” integrated model, while delivering tangible returns for investors.

 

Translated with DeepL.com (free version)

Zhuoyue New Energy to invest 700 million RMB in Thailand biodiesel and HVO/SAF project

Zhuoyue New Energy announced on the evening of July 8 that it plans to invest RMB 700 million of self-raised funds in a bioenergy production project in Chonburi Province, Thailand. The project will be executed by its wholly owned subsidiary, Zhuoyue New Energy (Thailand) Co., Ltd.

The project includes the construction of a 300,000-ton-per-year biodiesel production facility and a 100,000-ton-per-year integrated HVO/SAF (Hydrotreated Vegetable Oil / Sustainable Aviation Fuel) production line, along with associated infrastructure. The entire project is expected to be completed over a 12-month construction period and will be carried out in phases. Phase one will focus on the completion of the biodiesel plant and its supporting facilities.

Currently, Zhuoyue’s Thai subsidiary has completed the necessary overseas investment filings, obtained an approval certificate from Thailand’s Board of Investment (BOI), and signed a land lease agreement. The project has now entered the land survey stage, and construction is progressing steadily.

Once completed, this project will significantly enhance Zhuoyue New Energy’s overseas production capacity and support its strategic expansion into the international biofuel market, particularly in Southeast Asia. The development aligns with global efforts to promote renewable energy and low-carbon transportation fuels, positioning the company as a competitive player in the growing HVO and SAF sectors.