Indonesia’s crude palm oil export tax hike will make Malaysian crude palm oil more competitive

Industry experts believe that Indonesia’s decision to raise export taxes on crude palm oil (CPO) will boost demand for Malaysian CPO, making its price more competitive.

According to Dar Securities, Malaysia could see increased palm oil demand if Indonesia proceeds with plans to raise export taxes to support higher biodiesel blending requirements. The firm noted that an increase in Indonesia’s export tax to 10% would raise the price of Indonesian CPO by $26.49 per ton, making it even more expensive than Malaysian palm oil. Currently, Indonesian palm oil is already priced $146.30 per ton higher than Malaysian palm oil.

David Ng, a senior proprietary trader at IcebergX Sdn Bhd, echoed this sentiment, stating that the higher Indonesian export tax would enhance the competitiveness of Malaysian palm oil. “As a result, we anticipate stronger demand for Malaysian palm oil due to its lower price,” he added.

The expected rise in demand presents an opportunity for Malaysia to reinforce its position as a stable and reliable CPO supplier in the global market. As the world’s second-largest producer and exporter of crude palm oil, Malaysia can leverage its well-established infrastructure, commitment to sustainability, and Indonesia’s increased export costs to enhance its competitiveness.

With global buyers seeking more cost-effective alternatives, Malaysian crude palm oil producers stand to benefit from higher sales volumes and stronger market positioning in the palm oil industry.

Renewable diesel expansion project undergoing final commissioning

Chevron Corporation reported fourth quarter financial results on January 31st. During the earnings call, company officials confirmed that the renewable diesel expansion project at the biorefinery in Geismar, Louisiana, is in the final stages of commissioning.

The Geismar expansion project has been moving forward for several years with plans to increase the plant’s renewable diesel capacity from 90 million gallons to 340 million gallons.

The plant was the first renewable diesel plant in the U.S. In 2008, Dynamic Fuels LLC, a joint venture between Tyson Foods and Syntroleum Corp. broke ground on the former 75 MMgy plant, and the biorefinery came on line in 2010. in mid-2014, the Renewable Energy Group (REG) purchased the plant and held a grand opening in November of that year. In 2020, REG announced plans for an expansion, which began construction the following year, and was still in progress when Chevron acquired REG in mid-2022.

Plans for $600 million renewable fuel center put on hold

BP has suspended plans to build a $600 million renewable fuels center at its decommissioned Perth refinery. One of the reasons the project has been put on hold is that the developer is reassessing the level of demand and return on investment.

BP said it would adjust the delivery cadence of the Quinana renewable fuels project to improve capital efficiency and better align with government policy.

Industry sources said the lack of government incentives to drive demand for sustainable aviation fuel and renewable diesel was one of the reasons the project was put on hold.

Two years ago, BP began dismantling the refinery, which was built in 1955 and had been planned to be converted into a production site for sustainable aviation fuels and biofuels such as green hydrogen. The plant had planned to produce sustainable aviation fuel and renewable diesel from waste oil, tallow and waste cooking oil, which could be a direct replacement for existing fossil fuel aviation fuel and diesel.

FutureFuel Announces Overhaul to Continue Through February 2025

(NYSE: FF) (“FutureFuel” or the “Company”), a manufacturer of custom and performance chemicals and biofuels, today announced certain matters relating to its biodiesel production. production.

In late December 2024, FutureFuel initiated an annual maintenance and overhaul of its biodiesel plant. The overhaul proved to be more extensive than anticipated. As a result, the Company currently believes that the overhaul will continue through February 2025. Biodiesel production will not commence until the overhaul is completed.

Biodiesel production is supported by the Section 40(A) (Blender’s Tax Credit), which expires on December 31, 2024. This key incentive program has been replaced by the producer tax credit, IRA 45Z, which is effective January 1, 2025. However, sufficient details of IRA 45Z have not yet been released by the relevant government agencies. This has created a degree of uncertainty for the biodiesel industry, causing other biodiesel producers and their capacity to go offline. The Company will monitor this matter closely as it considers its biodiesel production methods and its role in the biofuels market.

Petrobras B24 Receives ISCC EU RED Certification

January 31 – Petrobras has received the international ISCC EU RED certification for the commercialization of renewable-content marine fuels at the Rio Grande Terminal (TERIG) in Rio Grande do Sul state. Petrobras produces VLS (Very Low Sulfur) B24, a blend of fossil-based fuels with 24% biodiesel, and in July 2024, Petrobras became the first company in the country to receive authorization from the National Agency for Oil, Gas and Biofuels (ANP) to commercialize renewable-content marine fuel. The ISCC EU RED certification, now awarded, marks the beginning of a product testing process that will begin at TERIG itself at the end of 2022.

Valero sells first SAFs

Valero Energy Corporation reported fourth quarter financial results on January 30, reporting that its ethanol and renewable diesel divisions were both profitable in the quarter. The company also announced that its Sustainable Aviation Fuel (SAF) program in Texas is fully operational.

The SAF program at DGD’s Port Arthur, Texas facility was successfully completed in the fourth quarter and is now fully operational. The program gives the plant the option to upgrade approximately 50 percent of its current 470 MMgy capacity to SAF.

Fischer, Valero’s senior vice president of product supply, trading and wholesaling, said the production process went smoothly and the company sold its first SAF in November, declining to speculate on expected SAF production in 2025, noting that the company has very good flexibility and that HVO renewable diesel fuel is currently as good as or better than SAF economically.

EcoCeres Considered for Europe

On January 31, Renewables Now reported that Hong Kong-based SAF producer EcoCeres is planning an initial public offering (IPO) on the European stock exchanges. The deal, which is scheduled for next year, could raise between $500 million and $1 billion, depending on market conditions, and values the entire business at around $5 billion, according to Bloomberg. EcoCeres, founded by Hong Kong-based Towngas, specializes in converting waste into renewable fuels, renewable chemicals and materials.

India’s Sustainable Aviation Fuel (SAF) Alliance to be launched

January 24, 2025 – The Carbon Market Association of India (CMAI) has announced the appointment of Vijay Nirani, Founder and Managing Director of TruAlt Bioenergy, as Co-Chair of the Sustainable Aviation Fuels Alliance (SAF) India.

This groundbreaking initiative will be officially launched at the inaugural India Climate Week (ICW) 2025, to be held February 3-7, 2025 at Le Meridien New Delhi.

India Climate Week 2025 is expected to be an important gathering of policy makers, industry leaders and environmental advocates to highlight India’s progress on climate action.

LanzaJet Selects Wilton International as its Next SAF Production Facility

LanzaJet announced on January 22 that it has selected Wilton International Airport on Teesside for its next production facility, the Speedbird project.

LanzaJet has partnered with Sembcorp Utilities (UK) Limited, a wholly owned subsidiary of Sembcorp Industries Limited, to develop an ethanol-based SAF facility at Wilton International in Teesside, UK.

In partnership with British Airways, the Speedbird project will produce more than 90,000 metric tons (30 million gallons) of SAF and renewable diesel fuel annually.

Capacity of 400,000 tons, SAF plant starts production

Enilive announced on January 22 that its first Sustainable Aviation Fuel (SAF) plant has been commissioned at the Gela biorefinery in Sicily, Italy, with a capacity of 400,000 tons per year. This is nearly one-third of the projected European SAF demand in 2025 following the implementation of the ReFuelEU aviation regulation.

Under the ReFuelEU aviation regulation, aviation fuel suppliers are required to ensure that a certain percentage of SAF is included in fuel supplied to air operators at EU airports, with the regulation requiring a minimum percentage of SAF starting at 2% in 2025 and gradually increasing to 6% in 2030, 20% in 2035, 34% in 2040, 42% in 2045 and 70% in 2050. The following are some examples of the changes that have been made to the program.

Since September 2022, Enilive has signed SAF supply agreements with several airlines. Initial production has been achieved using waste-based feedstocks thanks to synergies between the Gela biorefinery and other Eni facilities.

Enilive plans to increase its biorefinery capacity to more than 5 million tons per year by 2030 and to double its SAF capacity to 1 million tons per year by 2026 and again by 2030.