Italy ranks fourth in Europe for biofuel production

Gianni Murano, Chairman of the Italian Union for Mobility Energy (UNEM), stated that although the European Commission’s position on biofuels is still unclear, the Italian government has repeatedly called for an accelerated revision of vehicle emission standards, hoping to eventually open the use of biofuels and reduce carbon emissions through various technologies. Global demand and production of biofuels continue to grow, and Finnish company Neste estimates that by 2030, Europe’s demand for renewable diesel will reach 11 million tons, double the 4 million tons in 2023.

According to UNEM data, global biofuel production has increased by 44% since 2015, with Europe being the dominant region. Germany, France, Spain, and Italy are the largest producers. Italy has shown strong potential in renewable fuel supply, particularly in the availability of raw materials such as agricultural waste and used cooking oil, attracting significant investments in sustainable production. Italian company Adamant Group is driving the development of factories designed for advanced biofuels and circular economy projects and plays a key role in marine and aviation fuel production.

In 2024, Italy’s biofuel production is approximately 1.2 million tons, remaining stable compared to 2023. Eni is the largest player in Italy’s biofuel sector, with its subsidiary Enilive producing 1.65 million tons of bio-refined oil annually. The Marghera refinery can produce 400,000 tons of Hydrotreated Vegetable Oil (HVO) annually, and the Gela refinery produces 736,000 tons of HVO, with plans to produce Sustainable Aviation Fuel (SAF) by 2025. Additionally, the Italian company Hera has partnered with several catering giants to collect used cooking oil and convert it into biofuels. By 2028, it plans to increase its collection to 8,000 tons per year.

Dan-Bunkering Completes Biofuel Refueling for Union Bulk

Dan-Bunkering, a leading global bunker supplier, announced on March 18th that it has successfully completed a biofuel fill for its customer, Danish dry bulk owner and operator Union Bulk. This was Union Bulk’s first biofuel fill on March 9 for its vessel Blue Union Alpha.

The refueling was coordinated by Dan-Bunkering to meet the demand for specific fuel types on international routes. In a ship-to-ship operation, 300 metric tons of B24 Very Low Sulfur Fuel Oil (VLSFO) was added to Blue Union Alpha to enable it to successfully complete its voyage to Europe while complying with the regulatory requirements of the European Union’s FuelEU maritime and emissions trading system.

The addition of B24 VLSFO was critical to meeting EU emissions regulations before departing Singapore for the EU. The use of alternative fuels, such as biofuels, is one of the easiest ways to comply with FuelEU requirements and reduce emissions.

Government subsidizes SAF production in Japan

LanzaJet announced that Japan’s Ministry of Economy, Trade and Industry (METI) has selected Cosmo Oil to receive a FY2024 subsidy to support a project developed with Mitsui & Co. that plans to utilize LanzaJet technology. This funding marks an important milestone for large-scale domestic SAF production in Japan and for increasing the supply of SAF to the aviation industry.

Global demand for SAF is expected to grow rapidly, and Japan has set a goal of diversifying away from petroleum-based fuels by 10 percent by 2030 and adopting alternative fuels.Cosmo Oil plans to develop the project utilizing LanzaJet’s proprietary ethanol to SAF technology and leveraging the company’s expertise in plant operations, fuel quality control and logistics, as well as Mitsui’s capabilities in ethanol sourcing, which will establish a large SAF production facility and create new business opportunities in Japan’s growing biofuel industry.

Upon completion of the project, the Sakae logistics site will produce approximately 150,000 kiloliters of SAF and 17,000 kiloliters of renewable diesel per year starting in 2029.

TRA to investigate HVO biodiesel imports from the USA

The Trade Remedies Authority (TRA) yesterday (March 17, 2025) initiated an anti-dumping investigation and a countervailing investigation into imports of hydrogenated vegetable oil (HVO) biodiesel from the United States.

The investigation was initiated following a petition from UK biodiesel producers concerned about changes in the market since the last review in 2022. Recent evidence suggests that the price gap has narrowed and that HVO may now be competing directly with UK-produced biodiesel.

The investigation will determine whether imported HVO is being sold at unfairly low prices or subsidized and causing harm to UK industry.

Second-generation biodiesel (HVO) enters Hong Kong market

According to the website of Hong Kong Bauhinia Magazine on March 14th, recently, PetroChina’s Hong Kong-based organization, International Business (Hong Kong) Company Limited (referred to as State Affairs Hong Kong), for the first time sold second-generation biodiesel (HVO) to Hong Kong end-users to provide automotive fuels for the jet fuel refueling trucks at Hong Kong Airport, which expanded the value of the biofuel business and enhanced PetroChina’s green and low-carbon brand image in the Hong Kong market.

Eight organizations call for biodiesel tax credit extension

A coalition of eight organizations recently sent a letter to the House Committee on Fundraising urging Congress to extend the Section 40A Biodiesel Blender Tax Credit.

The Biodiesel Blender Tax Credit provides a $1 per gallon tax credit for the purchase of biofuels. It was introduced in 2004 and expired last year.

The biodiesel tax credit expires at the end of 2024, which has hit the biofuels supply chain hard. Many biofuel production facilities, especially biodiesel plants, have been downsized or closed altogether.

Organizations that signed the letter include the American Trucking Associations, the Clean Freight Coalition, the American Energy Marketers Association, the National Association of Convenience Stores, the National Association of Truckstop Operators, the National Institute of Energy and Fuels, SIGMA, the nation’s leading fuel marketer, and the Trucking Associations.

Request for moratorium on biodiesel blending due to high prices

On Wednesday, March 12, the Brazilian Union of Fuel and Lubricant Distribution Companies (Sindicom) submitted a request to the National Agency for Oil, Gas and Biofuels (ANP) to temporarily suspend the obligation to blend 14% of biodiesel in diesel fuel for a period of up to 90 days.Sindicom argues that the recent higher price of biodiesel compared to petroleum-based diesel fuel has led to fraudulent blending practices and that increased regulation is necessary. Sindicom argues that the recent higher price of biodiesel than petroleum-based diesel has led to fraudulent blending practices, hence the need for tighter regulation.

However, the Parliamentary Front for Biodiesel (FPBio) strongly opposed the proposal, calling it an attempt by distributors to “phase out” biodiesel, which could have a serious impact on the production sector. FPBio pointed out that the suspension of blending would result in 10 million tons of soybeans not being sold in the market, which would in turn reduce the supply of soybean meal by 8 million tons and push up feed prices, triggering inflation. The suspension of blending would result in 10 million tons of soybeans not being sold in the market, which would reduce the supply of soybean meal by 8 million tons, pushing up feed prices and causing inflation.

Mercedes-Benz procures 13,000 tons of sustainable aviation fuel (SAF)

March 13 – Mercedes-Benz has placed the largest single order for SAF with a DB SCHENKER customer.

The record-breaking agreement enables the global automotive company to reduce its CO2 emissions by 40,000 tons through the purchase of approximately 13,000 tons of SAF. The biofuel can be used for export air cargo from Frankfurt to Beijing and Shanghai.

Mercedes-Benz was one of the first customers when DB SCHENKER launched the world’s first scheduled cargo flights carried by SAF in 2021. Together, Mercedes-Benz and DB SCHENKER have reached another milestone.

SK Energy to supply 20,000 tons of SAF to Hong Kong by 2027

SK Energy announced on March 10 that it will become the first Korean refiner to supply large quantities of sustainable aviation fuel (SAF) to Hong Kong airlines.

After successfully exporting SAF to Europe in January this year, this achievement is expected to be an important foundation for the company to consolidate its leading position in the Asia-Pacific SAF market, a strategic region for Korean refiners, SK Energy said.

SK Energy has signed a contract with Hong Kong’s Cathay Pacific to supply no less than 20,000 tons of SAF by 2027.

SK Energy has been supplying SAF certified by the International Sustainability and Carbon Certification System Ltd. to Cathay Pacific at Incheon International Airport since November.

The two companies plan to gradually expand the use of SAF to more routes in the future.

The refinery said the agreement is another milestone for SK Energy as it has signed a stable SAF supply contract with Hong Kong’s largest airline just two months after becoming the first Korean refinery to export SAF to Europe.

UK opens first SAF plant to refine scrap tires

Wastefront announced on February 28, 2025, that construction has officially begun on its £100 million (approximately $129 million) tire-to-fuel facility at the Port of Sunderland in the United Kingdom. This milestone project marks a significant step forward in the production of sustainable aviation fuel (SAF) in the UK and will bring significant economic benefits to the North East region, with more than 100 local jobs expected to be created.

The facility uses advanced pyrolysis technology to convert waste tires into Tire Derived Oil (TDO) through anaerobic heating, which is then refined into sustainable fuels such as SAF, and its systems are designed to be self-sufficient, utilizing recovered gases generated during the pyrolysis process to power its operations.

The plant is being built in two phases: the first phase will be commercially operational by the end of 2026 and the second phase is expected to start up the following year. When fully operational, it will be able to process 10 million scrap tires per year, making it the largest facility of its kind in Europe. With approximately 55 million tires scrapped in the UK each year, Wastefront’s full-cycle process will effectively address this pressing waste disposal challenge. International Airlines Group (IAG), the first airline group in Europe to commit to a 10% SAF utilization rate by 2030, announced its investment in Wastefront in January this year to support its growth.

Looking ahead, Wastefront plans to operate four large-scale plants by 2030, with a combined annual production capacity of 128,000 tons of oil, equivalent to approximately 90,000 tons of SAF, a project that not only promotes sustainable energy, but also reinvigorates the environment and the regional economy through innovative technology. The Sunderland plant, the first full-cycle tyre-to-fuel facility in the UK, demonstrates the enormous potential of waste-to-energy.