U.S. EPA Proposes Increase in Biofuel Blending Mandates

Driven by surging mandates for biomass-based diesel, the Trump administration on Friday proposed increasing the volume of biofuels that U.S. refineries must blend into the national fuel supply over the next two years. The biofuel industry welcomed the proposal after months of lobbying, as it also includes measures aimed at limiting biofuel imports.

According to the U.S. Environmental Protection Agency (EPA), the total renewable fuel blending target will rise to 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027, up from 22.33 billion gallons in 2025.

Under the Renewable Fuel Standard (RFS), refiners are required to blend a certain amount of biofuels or purchase Renewable Identification Numbers (RINs) from others that meet the obligation. Small refineries may apply for exemptions if they can prove economic hardship. A key driver of this proposal is increased demand for biomass-based diesel. The EPA has set the 2026 biomass-based diesel quota at 7.12 billion RINs, representing the tradable carbon credits generated from fuel blending.

The agency expects this mandate will result in 5.61 billion gallons of biodiesel being blended. The new rule also aligns with the EPA’s plan to reduce the number of RINs generated from imported biofuels. As a result, the projected RIN generation per gallon of biodiesel would decline to 1.27 in 2026 and 1.28 in 2027, down from the previous average of 1.6.

HMM refuels 1,300 tons of B24 marine biofuel oil

Shandong Port Qingdao Port Group Co., Ltd. (hereinafter referred to as “Shandong Port Qingdao Port”) announced on the 14th that at Berth 109 in the Qianwan Port Area of the Qingdao Zone of the China (Shandong) Pilot Free Trade Zone, the “Dayan You 8” vessel successfully supplied 1,300 tons of B24 marine biofuel oil to the international ocean-going vessel “HMM VANCOUVER.”

This marks the first successful biofuel oil bunkering operation for an international vessel at a northern Chinese port, ushering in a new chapter in green ship supply services for northern ports.

Total investment of US$2.8 billion to build a SAF plant using wood waste

On June 9, U.S. BioEnergy announced the signing of a memorandum of understanding with LP Building Solutions to establish a 20-year sustainable wood fiber supply agreement to provide raw materials for the company’s advanced biorefinery being built in Bon Wier, Texas.

Under the agreement, once finalized, LP will supply up to 2.2 million tons of wood biomass to the project annually. The biorefinery will convert forest thinnings and other wood waste into sustainable aviation fuel (SAF) and other low-carbon transportation fuels. The project site was finalized earlier this year, with the company having acquired over 1,600 acres of land locally and planning a total investment of $2.8 billion.

LP, which has over 50 years of experience in forestry and wood operations in eastern Texas, will serve as the project’s exclusive procurement agent, responsible for sourcing raw materials in a responsible and sustainable manner. All biomass procurement will strictly adhere to environmental standards and undergo third-party independent audit certification.

Steven Meadows, LP’s Natural Resources Manager, stated: “Our experience in sustainable forestry will facilitate the smooth progress of this project and also promote regional economic development and ecological management.”

Nick Andrews, CEO of the U.S. Bioenergy Company, emphasized: “A long-term stable raw material supply is key to the success of project financing. Collaborating with LP helps us reduce capital costs and demonstrates the company’s firm commitment to sustainable fuel production.”

The project is currently in the engineering design phase. Once completed, it will convert 1 million tons of wood waste annually into approximately 65 million gallons of net-zero transportation fuel and sequester over 50 million tons of carbon dioxide over its lifecycle. The project has secured approximately $150 million in tax incentives and credit support from various levels of government and has signed a 20-year SAF purchase agreement with Southwest Airlines, providing a solid foundation for future operations.

 

Translated with DeepL.com (free version)

A fleet of 45 ships begins using biofuel

On June 4, Regional Container Lines Public Co. Ltd. (RCL), a well-known container shipping company in Thailand, formally signed a Memorandum of Understanding (MOU) with the Energy Solutions Division of PTT Oil and Retail Business Public Co. Ltd. for the supply of marine biofuels. This marks Thailand’s first collaboration with an international partner to advance the use of biofuels in the container shipping industry, signifying a crucial step forward for the country in the field of green shipping, aimed at reducing carbon emissions from maritime transportation.

RCL stated that this initiative reflects the company’s firm commitment to sustainability as a core strategic priority and its proactive efforts to harmonize environmental protection with business development. As part of its “Responsible Progress” vision, RCL has already pioneered the use of biofuel-blended ultra-low sulfur fuel oil, laying the groundwork for a transition to cleaner marine energy and demonstrating its resolve in environmental management.

The company emphasized that the use of biofuels not only helps reduce greenhouse gas emissions but also reflects its responsibility to protect marine ecosystems, aquatic life, and coastal communities. RCL currently operates 45 vessels and maintains a global service network through 94 owned and agency offices. The company believes that the introduction of green fuels will strongly support the decarbonization process of the global shipping industry and drive its own long-term sustainable growth.

biofuels

India and Rotterdam Sign $1B Green Fuel Deal

At the World Hydrogen Summit in Rotterdam, India’s AM Green signed a significant Memorandum of Understanding (MoU) with the Port of Rotterdam Authority, aiming to establish a green energy corridor between India and Northwest Europe. The agreement targets the export of up to 1 million tonnes of hydrogen-based fuels annually, potentially generating trade worth up to $1 billion.

The partnership includes the development of infrastructure for hydrogen-derived fuels, sustainable aviation fuel (SAF), and port facilities in Rotterdam and along key shipping routes to Europe. Boudewijn Siemons, CEO of the Port of Rotterdam Authority, stated, “We are pleased to collaborate with AM Green BV to reinforce our commitment to the energy transition. This agreement is a major step toward building a robust supply chain for low-carbon fuels and chemicals. India’s vast green hydrogen potential, combined with Rotterdam’s strategic location and advanced infrastructure, creates a strong foundation for a sustainable energy corridor.”

Anil Chalamalasetty, Founder of AM Green and Greenko Group, emphasized that the collaboration is part of AM Green’s global growth strategy for green fuels, which includes plans for 5 million tonnes per annum (MTPA) of green ammonia and 1 MTPA of SAF. Initial production is set to begin in Kakinada, India.

This agreement not only strengthens energy connectivity between India and Europe but also marks a major milestone in advancing the global hydrogen and green fuels market.

EU announces ETS support mechanism fuel pricing details, promoting accelerated application of SAF

On May 26, the European Commission issued a Commission Notice clarifying the method for calculating the price difference between fossil jet fuel and qualified sustainable aviation fuel (SAF). This initiative represents a key step in the EU Emissions Trading System (EU ETS) to support the use of SAF.

Under the previously adopted Delegated Regulation (EU) 2025/723, this support mechanism allows the EU to allocate carbon allowances free of charge to commercial airlines using SAF in their flights, to offset the additional costs of SAF compared to jet fuel, thereby encouraging airlines to switch to cleaner fuels.

The Commission will publish the average price of aviation fuel for the previous year annually and calculate the price difference between jet fuel and qualified SAF based on these data. In the 2025 notice, the Commission listed the average prices and quota prices of relevant fuels for 2024, providing a basis for member states to conduct calculations in a unified and transparent manner.

These price references are derived from the technical report mentioned in Article 13 of Regulation No. 2023/2405 issued by the European Aviation Safety Agency (EASA). EASA pre-released the reference prices for aviation fuel in 2024 in its ReFuelEU Aviation Briefing on February 25, 2024, which will be used in the first official technical report to be published in September.

Currently, the competent authorities of each member state are calculating the number of free quotas available to their national aviation operators based on these standards and will submit the results to the European Commission by August 31. The Commission will then make the final allocation decision based on the information submitted by each country.

The European Commission stated that by establishing a clear and transparent price calculation mechanism, it will further promote the application of SAF in the aviation sector and contribute to achieving the EU’s broader climate and environmental goals.

SAF feasibility study underway in India

Honeywell and NTPC Green Energy, the green energy subsidiary of India’s National Power Corporation (NTPC), have formed a partnership to advance the local production of sustainable aviation fuel (SAF), according to Fuel Cells Works in the UK.

The project will be based on Honeywell’s eFining technology, which combines carbon dioxide emissions from thermal power plants with green hydrogen to synthesize a low-carbon fuel that can be used in aviation. The two companies aim to build a new closed-loop energy system centered on carbon capture and green hydrogen utilization.

D.M.R. Panda, Executive Director, NTPC, said, “SAF production is an important part of our strategy to build a green hydrogen center in Pudhimadarkar, Andhra Pradesh. As countries start mandating SAF blending for aviation fuels, this project will also open the door for more green hydrogen application scenarios.”

The feasibility study of the project is expected to be completed by mid-2025, and is expected to be a landmark project for India in terms of sustainable aviation fuel and green hydrogen fusion utilization in the future, according to the report.

B50 Biodiesel Program Could Push Up Global Palm Oil Prices

The Indonesian government recently announced plans to promote the production and use of biodiesel B50, i.e. to increase the proportion of biofuel in diesel to 50%. Agriculture Minister Andi Aman Suleiman said the policy is expected to drive up global palm oil (CPO) prices. The government plans to use about 5.3 million tons of CPO for B50 production and cut overall exports to 21 million tons from 26 million tons while maintaining exports to the European Union (2.3 million tons) and the U.S. (1.7 million tons) to drive up prices and boost farmers’ incomes.

Deputy Energy Minister Yuliot Tanjoo added that Indonesia already has enough fatty acid methyl ester production capacity to support the B50 program, and there is no need to expand oil palm plantations, only through the renewal of old trees to meet the new demand.The B50 program is expected to be formally launched next year, marking a further escalation of Indonesia’s biofuel strategy.

SAF Manufacturing Facility Built Inside Pittsburgh International Airport

On May 29, Avina Synthetic Aviation Fuels announced that it will partner with Pittsburgh International Airport (PIT) to build the airport’s first Sustainable Aviation Fuel (SAF) production facility. The project will utilize one of the leading Alcohol-to-Jet (AtJ) processes in the U.S. to help decarbonize the aviation industry.

Avina plans to build a state-of-the-art production facility on the south side of the Pittsburgh Institute of Technology (PIT Terminal) to produce ASTM-compliant aviation fuels. The facility will utilize KBR’s globally exclusively licensed PureSAFSM technology, which was developed by Swedish Biofuels to efficiently convert alcohol into jet fuel.

Avina said, “This project will not only reshape the Pittsburgh region’s energy infrastructure and boost the local economy, but also provide airlines with a convenient, cost-controlled way to access SAF, helping them achieve their sustainability goals.”

The project will be constructed in phases and is expected to produce more than 100 million gallons of SAF annually when fully operational, meeting the needs of the commercial aviation and cargo markets at PIT Airport and the surrounding area.

Malaysia promotes use of B20 biodiesel in ports

Malaysia’s Minister of Plantation and Raw Products, Datuk Seri Zohari Abdul Ghani, recently said the government is pushing for a transition from B10 to B20 palm-based biodiesel at the nation’s ports in support of the country’s greenhouse gas emissions reduction targets – to reduce GDP-based emissions intensity by 45% by 2030 and to realize a net zero carbon emissions.

Launching a pilot program for the use of B20 in ground service vehicles at the Kuala Lumpur International Airport (KLIA), Zohary noted that the policy not only promotes a green energy transition, but also strengthens Malaysia’s position as the world’s second largest palm oil producer. He said: “In the future, we hope that major ports such as Penang Port, Port Klang and Tanjong Parapas Port will also fully adopt B20 biodiesel. We are in the process of collecting data on operating costs for subsequent rollout.”

The pilot project is a collaboration between the Malaysian Palm Oil Board (MPOB), PETRONAS Dagangan, Malaysia Airports Holdings (MAHB) and Syarikat Teras Kembang, with PETRONAS Dagangan as the fuel supplier, MAHB as the airport operator and Teras Kembang is responsible for the management of the fuel refueling station.

Zohary emphasized that the introduction of B20 biodiesel for the first time in the industrial sector marks a key step in Malaysia’s drive towards sustainable energy development, as B20, which is a blend of 20% Palm Methyl Ester (PME) and 80% petroleum diesel, has the potential to reduce dependence on fossil fuels and greenhouse gas emissions, and contribute to the country’s low-carbon future.