66 million dollars for a new biodiesel plant

The Bolivian government has taken a key step in the industrialization of energy with the final stages of construction of the biodiesel plant II “Héroes de Senkata”, in which the state-owned YPFB is investing more than $66 million. Located in the Senkata area of El Alto, the plant, with a capacity of 1,500 barrels per day, will reduce dependence on imported diesel and contribute to the country’s energy security.

The project will utilize 98% vegetable oil and 2% waste cooking oil to produce biodiesel, promoting a circular economy and reducing environmental impact. This initiative demonstrates Bolivia’s strong commitment to promoting the energy transition and diversifying fuels.

U.S. Opposes SAF Proposal at ICAO Conference

The Government of the United States strongly opposes the recommendation on “sustainable” aviation fuel made during the 13th Triennial Meeting of the International Civil Aviation Organization (ICAO) Committee on Aviation Environmental Protection (CAEP).

This proposal to the ICAO Council for multi-cropping (i.e., growing two or more crops on the same piece of land) for the production of sustainable aviation fuel would unfairly penalize U.S. farmers, while benefiting Brazil more than the rest of the world. The U.S. government argues that this proposal is premature and lacks a sound technical or scientific basis. Despite these problems, CAEP has adopted the proposal to the detriment of U.S. farmers and the aviation industry, while increasing deforestation of endangered tropical forests.

The United States remains committed to constructive dialogue at ICAO and CAEP, and reaffirms its willingness to continue to work with Member States, U.S. industry, and other observers to develop recommendations that serve U.S. interests in order to maximize its contribution to ICAO.

In support of the recently issued Executive Order “Putting the United States First in International Environmental Agreements”, his delegation had worked with 33 Member States, United States industry and other observers to develop proposals that would maintain aviation safety, enhance United States leadership in the civil supersonic aircraft sector and address other key aviation industry issues.

German biodiesel blending rate, a record low

According to a March 4 announcement by the German Union for the Promotion of Oilseeds and Protein Plants (UFOP), Germany’s biodiesel-to-diesel blending ratio fell to an all-time low in November 2023, at 3.9 percent. This ratio has not been this low since the blending obligation was introduced in 2009.

According to the latest statistics released by the German Federal Office for Economics and Export Control (BAFA), the actual biodiesel blend was only 106,900 metric tons.

Furthermore, for the first time, total German biodiesel and renewable diesel consumption fell below 2 million metric tons between January and November 2023.

However, it is worth noting that in the 2024 quota year, the biodiesel blend reached its highest level of 8.5% in March.

Costa Rica plans renewed biofuel program

The Costa Rican government will relaunch an old energy project to replace fossil fuels with biofuels, according to El País. The initiative is in response to a request made by the country’s Vice President, Stephen Brenner, to the Legislative Assembly to deal with the Fuel Energy Transition Initiative, which was proposed more than a year ago.

According to a press release, the so-called 24,079 Recovery Project will replace the use of diesel fuel in heavy transportation with biomethane, a gas produced by the decomposition of organic agricultural, livestock and industrial waste, in the first phase.

The strategy consists of a phased, sector-by-sector gradual replacement of diesel, financed by the United Nations Joint Fund for Sustainable Development Goals and the Industrial Development Plan.

FutureFuel delays restart of biodiesel plant

Biodiesel and chemical producer FutureFuel Corp. issued an update on Feb. 28 on the timing of the planned restart of its biodiesel plant in Batesville, Arkansas. The plant produces 60 million gallons of biodiesel per year.

In January, FutureFuel had announced that it had been retrofitting the plant since last December. According to the plan, this retrofit was scheduled to be completed in February, making March the earliest the plant was scheduled to restart.

However, FutureFuel said that due to the effects of severe weather in the Batesville area in February, the company was not able to complete the retrofit work as planned and was unable to recover losses and restart the plant’s production process. As a result, the company now says biodiesel production will not resume until the end of March at the earliest.

U.S.-Canada Biofuels Tariff Battle on the Horizon

On March 4, the U.S. government announced new tariffs on a wide range of goods from Canada, Mexico and China, including a 10 percent tariff on biofuels entering the United States. This means that U.S. imports of Canadian biofuels will become more expensive, and this could trigger retaliatory tariffs in Canada, affecting U.S. biofuel exports.

On the same day, the Canadian government also said it would consider tariffs on U.S. imports of biodiesel. While biofuels are not yet on the list of retaliatory tariffs, Canada has added biodiesel and biodiesel blends with less than 70 percent content to the list of goods to be considered. This list will be subject to a 21-day public comment period, after which a decision will be made on whether to implement it.

Canada is the largest trading partner of the U.S. for ethanol and biodiesel. Based on 2024 data, Canada accounted for 88 percent of total U.S. exports of B30 biodiesel and biodiesel blends, or about 585,324.4 tons. Last year, Canada’s biodiesel exports amounted to $743.77 million.

In other words, the tariff war could have a big impact on U.S.-Canada biofuels trade, especially since Canada’s reliance on U.S. biodiesel might allow Canada’s retaliatory tariffs to put more pressure on the U.S. market.

UK proposes tax on aviation fuel suppliers to fuel SAF’s rise

March 4 (Bloomberg) — The U.K. government released a consultation paper on March 3 detailing how it will support the green fuel industry and provide market certainty for sustainable aviation fuel (SAF) producers. This is part of the UK government’s plan to drive decarbonization of the aviation industry and promote economic growth.

As SAF is still a nascent industry, the government proposes to address the current market uncertainty by introducing an industry-funded price guarantee (i.e. Revenue Certainty Mechanism, RCM). The core objective of this mechanism is to ensure that producers receive a stable revenue stream even if SAF prices fluctuate, which in turn will help airlines and consumers reduce costs. To fund the RCM, the government proposes to impose a variable tax on aviation fuel suppliers.

The implementation of the RCM will provide the necessary stability in the green fuel market to support the continued production of SAF, which in turn will contribute to the aviation industry’s decarbonization goals. The mechanism is designed to be similar to the successful model used by the UK in the renewable energy sector, and is intended to boost domestic SAF production, attract more investment, and promote green jobs.

The UK government says the measure is primarily designed to address price uncertainty in the SAF market, particularly in the early stages, and to help scale up early-stage technologies, while ensuring producers have a fair chance in a competitive market. The government will continually monitor the impact of the measure and may manage the liability by setting support volumes and price limits.

The proposal will also limit cost increases and ensure that consumers (particularly vacationers) are not exposed to significant price volatility. Cost increases are expected to be in line with routine changes to flight fares.

In addition, in January this year, the UK introduced the Sustainable Fuels Regulations, which require aviation fuel sources to progressively move towards sustainability to ensure market demand and drive domestic production, and the implementation of the RCM will complement these regulations to further drive the SAF industry.

As part of the UK’s Transformation Plan, the RCM will not only help achieve net-zero emissions, but will also attract significant investment in the SAF industry, create green jobs and promote innovation. UK Aviation Minister Mike Cain said, “We are committed to paving the way for green flying while protecting consumers.” Airlines and related industries also actively support the RCM and look forward to the mechanism to promote the long-term development of the industry.

The consultation will run until March 31, and the SAF RCM Bill is expected to be tabled in Parliament in the spring.

Bangchak delivers first shipment of B24 marine biofuel

On February 24, senior officials from Bangchak and NYK Line gathered to witness the delivery of the first shipment of B24 marine biofuel from the Bangchak Sriracha Public Co. Ltd. refinery. The momentous occasion took place at the port of Laem Chabang in Sriracha district, Chonburi province, Thailand, where the ship was successfully delivered by Nippon Yusen’s Iris Leader.

The delivery of B24 marine biofuel with a total weight of 470 metric tons marks an important breakthrough for Bangchak Sriracha in the field of biofuel. As a sustainable alternative fuel, B24 marine biofuel not only helps to reduce carbon emissions in the shipping industry, but also meets the increasing environmental requirements of the international market.

It is worth mentioning that this batch of B24 marine biofuel has been awarded the International Sustainability and Carbon Certification (ISCC EU), which ensures the sustainability of its source and the control of its carbon emissions. This supports Bangchak Sriracha in further expanding its market share and meeting the green energy needs of global shipping companies.

The success of this delivery not only demonstrates Bangchak Sriracha’s technological prowess in renewable energy, but also provides valuable insights into the global shipping industry’s transition to a low-carbon environment. The company has officially begun selling this international standard biofuel to liner customers, further advancing the shipping industry’s goal of green and sustainable development.

German Biodiesel Exports Hit Record High in 2024

In 2024, German biodiesel exports grew for the third consecutive year, exceeding imports by about 1.61 million metric tons.

According to information published by the German Federal Statistical Office, production reached a new record of about 3.2 million metric tons.

Rotterdam, the Netherlands, the most important hub for global trade in biofuels, remains Germany’s main trading partner for biodiesel, with biodiesel shipments up 20 percent year-on-year to just over 1.4 million metric tons.

Exports to Belgium rose by 80 percent to 638,300 tons, making Belgium the second largest recipient of German biodiesel.

In contrast, exports to the United States fell by 40 percent to 271,900 tons.Germany imported 1.6 million tons of biodiesel, a decline of about 3 percent compared to 2023, according to a study by the Agricultural Market Information Association (mbH).The largest exporters were the Netherlands, Belgium, Malaysia and Austria.

Promote local biodiesel production with at least 5% renewable fuel by 2026

Adrian Dix, B.C.’s Minister of Energy and Climate Solutions, recently announced that the provincial government will increase the share of Canadian biofuels in transportation fuels, aiming to support local producers, protect jobs, and reduce dependence on foreign energy sources. Under the provincial government’s plan, starting April 1, 2024, diesel biofuels sold in B.C. will have to meet the prescribed requirements of being produced in Canada. This policy will ensure that all biodiesel sold is locally made and meets the percentage produced in Canada requirement, in accordance with the provincial Low Carbon Fuel Standard.

By January 2026, B.C. will further increase the proportion of biofuels used, with the renewable fuel requirement in diesel increasing to between four and eight percent. In addition, starting January 1, 2026, gasoline must contain at least five per cent renewable fuel and is required to be sourced from Canadian production. The move is intended to protect B.C. from an influx of cheap, U.S.-subsidized biofuels into the market and ensure that Ontarians have access to a stable, reliable supply of homegrown fuels.

The policy also emphasizes that supporting local biofuel producers not only helps to ensure energy security, but also promotes economic growth and job creation in B.C. The provincial government is making important amendments to the Low Carbon Fuels Act to prioritize the use of Canadian-produced biofuels, which will provide greater stability to B.C.’s biofuel market.

Local biofuel companies such as Tidewater in Prince George, Parkland in Burnaby and Consolidated in Delta, for example, have been actively involved in the development and implementation of this policy.The B.C. government is working closely with local companies to ensure that the policy promotes sustainable industry growth while balancing environmental The B.C. government has demonstrated its leadership in advancing a clean energy future by working closely with local businesses to ensure the policy promotes a sustainable industry while balancing environmental and economic goals.