Indonesia reaffirms B40 biodiesel program for January 2025

Nov. 13｜The Indonesian government on Wednesday reiterated to lawmakers that it will implement the B40 biodiesel program in January 2025 as part of the new government’s “Rapid Results” program, sources said.

The program was mentioned in a speech by Indonesia’s Energy Minister Bahlil Lahadalia, who also told a parliamentary hearing that the government expects to implement the B50 program in 2026.

Raising the biodiesel blend to 40% from the current 35% is meant to reduce fuel imports, which analysts say will increase palm oil demand and support prices.

Malaysian palm oil futures are up about 35% this year. At an industry conference last week, Oil World analyst Thomas Mielke estimated that the introduction of B40 would push prices up another 10-15 percent.

This statement from Indonesia’s energy minister about the timeline of the B50 implementation plan is more aggressive than a statement from a senior Indonesian official at the Indonesian Palm Oil Conference last week, who said last week that the government was considering increasing the biodiesel blend ratio by 2028.

Neste Signs Supply Agreement for Sustainable Aviation Fuel with Air Canada

Neste and Air Canada have signed an agreement to supply 60,000 metric tons (77.6 million liters) of pure Neste MY sustainable aviation fuel.Neste will deliver sustainable aviation fuel (SAF) blended with conventional aviation fuel to the Vancouver Marine Terminal beginning in December 2024, with further deliveries to be made in 2025.Neste will deliver SAF blended with conventional aviation fuel to the Vancouver Marine Terminal. The Vancouver Marine Terminal has a direct pipeline connection to the Vancouver International Airport’s fuel facility, allowing the airport to use blended SAF.

The agreement builds on the existing relationship between the two companies and supports Air Canada’s environmental sustainability commitments, which include a target for purchasing SAF to make up 1 percent of the airline’s projected aviation fuel use in 2025.In 2023, Neste supplied purchased SAF to Air Canada for use at San Francisco International Airport and Amsterdam Schiphol Airport.

Neste: Unexpected closure of Rotterdam refinery will affect renewable diesel deliveries

The Neste Rotterdam refinery was shut down due to a November 8, 2024 fire. The fire has now been extinguished with no injuries. Neste is currently investigating the incident and restoration work will start as soon as possible.

Based on our initial assessment, production at the Rotterdam refinery will be reduced for several weeks, affecting deliveries to renewable diesel customers. As a result, Neste has changed its 2024 total renewable products volume guidance:

The revised Renewable Products 2024 guidance reads, “Total Renewable Products volumes are expected to increase from 2023 to approximately 3.7 million tons (+/- 5%) by 2024, with SAF volumes expected to be 35-55 million tons. Renewable Products’ average comparable sales margins for the full year 2024 are expected to be in the range of $360-480/tonne.”

Previously, Renewable Products’ 2024 guidance was: “Total Renewable Products volumes are expected to grow from 2023 to approximately 3.9 million tons (+/- 5%) in 2024, with SAF volumes expected to be 350,000 to 550,000 tons. Renewable Products’ average comparable sales margin for the full year 2024 is expected to be in the range of $360-480 per ton”.

We are mitigating any impacts on our renewable diesel customers. The incident has no effect on the ongoing Rotterdam refinery expansion project.

Urge Congress to Extend $1 Per Gallon Biodiesel Tax Credit

On November 8, NATSO and SIGMA, representing nearly 80% of retail fuel locations, urged Congress to capitalize on growing momentum during the lame-duck session to extend several expiring tax credits, including the critical $1-per-gallon biodiesel blender tax credit. This tax incentive has been essential in reducing diesel costs, lowering transportation expenses, and supporting the nation’s renewable fuel market growth.

Both associations commended Senator Chuck Grassley (R-IA) for his commitment to preserving biodiesel tax incentives among key “must-pass” provisions. They expressed gratitude toward Representatives Mike Carey (R-OH), Annie Kuster (D-NH), and Claudia Tenney (R-NY), who co-sponsored bipartisan bill HR 9060 to extend the credit by one year.

The biodiesel blender tax credit plays a vital role in the short-term strategy to cut emissions in the trucking and rail industries. Despite its pivotal role, ongoing policy uncertainty—fueled by delays in guidance from the Biden administration on the 45Z clean fuel production credit—has created challenges for producers and retailers. HR 9060 has garnered support from diverse industry stakeholders, such as the American Trucking Association and various state soybean associations, emphasizing the credit’s importance.

Extending the tax credit would provide stability to the biodiesel and renewable diesel sectors, enabling them to continue reducing carbon emissions, keeping diesel prices low, and offering relief to consumers. This credit has helped expand the U.S. biodiesel market from 100 million gallons in 2005 to nearly 4 billion gallons in 2023, marking a significant step toward sustainable transportation.

Data suggests palm oil could plunge in December

Despite the recent resurgence of palm oil prices above RM5,000 per ton, which has inspired some investment banks to turn bullish on the outlook for plantation stocks, some brokers are still cautious on the outlook for palm oil, saying that the price of palm oil is likely to fall significantly by the end of this year, and therefore maintain a “neutral” rating for the time being.

Tat Securities analysts pointed out that today’s palm oil prices have exceeded RM5,000 per ton, about 15% higher than last month, which may be due to reduced supply and trade friction between the United States and China.

Meanwhile, the analyst reckons that China may panic buy soybeans before Trump is re-inaugurated as US president and increases tariffs on Chinese goods, which may have driven the recent rise in palm oil prices.

He also cited data from Intertek and Amspec to China’s palm oil exports in the first ten days of November, a significant month-on-month decline of about 15%, indicating that the country’s palm oil exports in October after a big rise in November has fallen sharply, signaling a softening of demand.

He added that the easing of tensions in the Middle East could lead to a slight reduction in crude oil prices, which in turn would impact palm oil prices.

In any case, the analyst raised his forecast for this year’s average palm oil price to RM4,200 per tonne from RM3,900 per tonne, given the current stronger-than-expected outlook for palm oil demand.

Kazakhstan to use bioethanol to produce aviation fuel

KazMunayGas and BioOperations have signed a framework agreement on the implementation of a project for the production of sustainable aviation fuel (SAF or Sustainable Aviation Fuel). Ltd. have signed a framework agreement on the implementation of a project for the production of sustainable aviation fuel (SAF or Sustainable Aviation Fuel).

It is known that the international consulting company ICF has previously proposed to use ATJ (Alcohol-to-Jet) technology for the production of sustainable aviation fuel – SAF.

The raw material for this aviation fuel is bioethanol, which BioOperations produces by using different types of grains. The company also produces by-products from further processing of grains such as bio-gum and starch.

KMG said the BioOperations plant, located in the city of Taynsha in North Kazakhstan, is one of Kazakhstan’s flagship companies engaged in the further processing of grain. Its production plant is strategically located along major highways and railroads, making logistics easy and fast.

KMG also noted that bioethanol derived from plant feedstocks is a high-quality, renewable and environmentally friendly fuel source. Consumption of bioethanol is growing and widely used globally, especially in EU countries.

It is reported that bioethanol produced by BioOperations is now being exported to EU countries and the UK.

ExxonMobil to supply B25 marine biofuel in Belgium

Hapag-Lloyd’s Colorado Express vessel has been successfully refueled with a B25 marine biofuel blend consisting of ExxonMobil’s premium HDME 50™ fuel, 0.10% Sulfur Emission Control Area (ECA) fuel, and waste biodiesel derived from waste cooking oil.

The direct blend meets the requirements of ISO 8217:2017 except for the fatty acid methyl ester (FAME) component.

The FAME content complies with EN 14214.

The bio-ingredient consists of materials certified to meet the sustainability requirements of RED II: the feedstock does not compete with the land for food production.

Indonesia seeks to become world palm oil pricer

Indonesia’s Agriculture Ministry has set a goal of making the island nation the world’s largest producer of palm oil by 2025.

Indonesia’s Deputy Minister of Agriculture Sudarjono said Indonesia aims to price the commodity on the world market as soon as possible. In order to achieve this goal, he called on farmers and businessmen to consider Indonesia’s palm plantations as high-priority agricultural areas that need special attention to strengthen the national economy.

Sudareno emphasised that Indonesia has been working to increase downstream processing of palm oil, including the higher-value B50 biodiesel. He noted that B50 is Indonesia’s ‘negotiating card’ in the international arena, and that B50 is expected to provide Indonesia with the opportunity to maximise the uptake of its palm oil production.

Repsol launches 100% renewable diesel brand

Repsol has launched its 100% renewable diesel commercial name – Nexa 100% Renewable Diesel – at its petrol stations.
Nexa 100% Renewable Diesel is uniquely formulated to optimise performance and extend the life of diesel vehicle engines.

It is made from organic waste and with today’s technology, net CO2 emissions have been reduced by up to 90 per cent compared to the fossil fuels it replaces, thanks to the renewable fuel’s low carbon intensity due to its organic origin.

Repsol currently supplies Nexa 100% renewable diesel to more than 580 petrol stations in the main cities and transport corridors of the Iberian Peninsula.

The multi-energy company, which has 537 petrol stations in Spain and 50 in Portugal, continues to expand its network of renewable fuel petrol stations, with the goal of exceeding 600 stations by the end of this year and 1,500 by 2025.

Use of B30 biofuel blends on the Norwegian Dawn cruise ship

Norwegian Cruise Line’s Norwegian Morning received a B30 sustainable biofuel blend from Dutch renewable fuel supplier GoodFuels during a call at the cruise terminal in Ijmuiden, the Netherlands.

GoodFuels’ parent company, FincoEnergies, delivered the biofuel blend on 22 July in partnership with KPI OceanConnect.

In a statement released yesterday (7 November), GoodFuels stressed that the biofuel is produced exclusively from certified 100% waste and residue feedstocks and avoids competition with food resources.