HKEPA calls for promoting the use of HVO

According to Hong Kong media news on May 29, the Business Environment Council (BEC) today released the report “Study on Biodiesel and Renewable Diesel in Hong Kong”, pointing out that renewable diesel (also known as Hydrogenated Vegetable Oil (HVO)), as a second-generation biofuel, can be used in place of traditional diesel without engine modification, and carbon emissions can be reduced by up to 90%, which is the key to the transition of decarbonization of transport and heavy industry. However, Hong Kong still faces significant barriers to expanding its use.

The study, which covered global market trends, local business surveys and focus group interviews, found that local businesses have a strong interest in renewable diesel, especially in industries where it is difficult to reduce emissions, but that penetration is constrained by issues such as opaque product information, limited supply channels and a lack of regulatory recognition of its status as legal for road use.

The association suggests that suppliers should enhance product data disclosure and public education to raise public awareness of the compatibility and environmental benefits of renewable diesel. At the same time, the government needs to update local regulations to align the standards with the International Sustainability and Carbon Certification (ISCC) and the latest European Union norms, and promote cross-sectoral collaboration to ensure the legal distribution and use of renewable diesel.

The study also calls for the inclusion of biofuels in Hong Kong’s climate transition policy, with higher blending ratios, third-party verification mechanisms, and greater traceability and transparency.

Boeing invests in SAF production

On May 29, Boeing Canada said it is investing millions of dollars in commercial ventures in British Columbia and Quebec with the ultimate goal of producing nearly 200 million liters of sustainable aviation fuel annually.

The announcement, made Wednesday, includes nearly $17.5 million in grants to two projects aimed at converting carbon captured from wood waste and industrial smokestacks into sustainable aviation fuel.

Boeing said the fuel, known in the industry as SAF, has the potential to reduce carbon emissions by up to 80 percent over its lifecycle and “offers the fastest pathway to decarbonization for the aviation industry.”

Boeing’s latest investment will be $10 million in Project Avance, a joint venture between Bioenergie AECN and Alder Renewables in Port Cartier, Quebec. The project aims to convert sawmill wood residues into low-carbon biocrude oil, which can then be converted into nearly 38 million liters of unblended jet fuel annually.

Malaysia reaches deal with China to expand palm oil supply

According to the Business Times, the Malaysian Palm Oil Council signed a memorandum of understanding with China’s New Land and Sea Corridor Operation Co Ltd, planning to promote logistics and trade cooperation on the Qinzhou-Chongqing port route. This agreement will open the way for Malaysian palm oil to further expand into the Chinese market.

Dato’ Tan Fong Heng, Deputy Minister of Plantation and Raw Industries of Malaysia, said that the agreement will not only help to increase the sales and production capacity of palm oil in China, but also deepen the bilateral institutional cooperation in the areas of carbon labeling, biofuels and green materials. He emphasized that Malaysia has the world’s leading sustainable certification system for palm oil, which will play a key role in green economy cooperation.

Meanwhile, Malaysia is also strengthening joint research and development with Chinese research institutions. Malaysia is working with Chongqing Jiaotong University to develop palm oil-based polyurethane acrylates for anticorrosive coatings, Business Times noted. This project is one of China’s key projects to expand the chemical applications of palm oil, and it is currently working with a number of Chinese companies to develop derivatives, with the goal of using palm oil products in a wide range of consumer scenarios, such as soup bases, snacks and environmentally friendly personal care products.

This series of actions shows that Malaysia and China are actively building a green supply chain, promoting palm oil from traditional edible oil to a new blue ocean of chemicals, new materials and environmentally friendly daily chemicals.

Virgin and Boeing Release Report on SAF Books and Claims System

Virgin Australia and The Boeing Company recently released a study by independent consultants Pollination, which provides insight into the policy challenges and potential opportunities of the ‘Book and Claim’ model of sustainable aviation fuel (SAF) accounting. The report was published at the University of New South Wales (UNSW). The report was launched at an industry event at the UNSW Centre for Decarbonization Innovation.

“The Book and Claim system allows airlines to account for carbon reductions by purchasing their environmental benefits without actually transporting SAFs, thereby reducing logistics costs and avoiding additional emissions. This flexible accounting mechanism is seen as an important tool to drive global aviation decarbonization, especially as SAF capacity is unevenly distributed.

For resource-rich Australia, this mechanism presents significant opportunities. With its abundant biomass and renewable energy resources, Australia could become a key player in the export of SAF production and environmental benefits to regions with limited capacity. At the same time, it can also integrate local and international market demand and promote local economic growth.

However, Australia’s current greenhouse gas accounting system does not yet have a mechanism for recording and recognizing the benefits of emissions reductions from SAFs purchased and used by domestic airlines overseas. The report calls on policymakers to improve the accounting framework for SAF cross-border claims as soon as possible to help Australia play a greater role in global aviation decarbonization.

China’s 26,000 tons of hydrocarbon-based biodiesel, sent to Europe

May 25th, recently, a huge ship “LE**” loaded with 26,000 tons of hydrocarbon-based biodiesel successfully set sail from CNOOC Taifu Terminal to the European market. This is the 6th hydrocarbon-based biodiesel export shipment guaranteed by Zhangjiagang Maritime Safety Bureau this year, marking the steady expansion of China’s green energy products in the international market.

According to statistics, since 2025, Zhangjiagang port has shipped 116,600 tons of hydrocarbon-based biodiesel, with a cargo value of about 1.34 billion yuan, opening up a “green channel” for the high-quality development of the local economy and the export of biofuel industry.

U.S. House Advances Biofuel Support: 45Z Tax Credit Extension and Feedstock Focus

In the early hours of May 22, the U.S. House narrowly passed the HR 1 bill, which includes key provisions to extend and update the 45Z Clean Fuel Production Tax Credit through 2031. The bill limits eligibility to fuels made from feedstocks produced in the U.S., Canada, or Mexico and excludes indirect land use change (ILUC) from lifecycle GHG calculations. It also directs the Treasury to assign distinct emission factors to manure-based feedstocks like dairy, swine, and poultry waste.

The legislation has been welcomed by the biofuel industry. Stakeholders from ethanol, sustainable aviation fuel (SAF), and biogas sectors praised the extended credit and feedstock-focused provisions for offering long-term policy certainty and encouraging investment. SAF Alliance noted the bill provides a strong foundation for scaling up SAF production, while biogas advocates highlighted the support for waste-to-energy systems. The bill now heads to the Senate for review.

Japan to phase in 10% biofuel blending from 2028

The Japanese government will introduce 10 percent biofuel blends in different parts of the country from 2028 and plans to roll them out nationwide by 2030, Kyodo News reported. The plan is to increase the proportion of biofuel blends to 20% a decade later. The exact location of the introduction will be decided this fall based on existing infrastructure capacity. In response to the rollout of higher percentages of biofuels, the government has asked automakers to introduce vehicles capable of running on 20 percent blends by the early 2030s.

Chevron Continues to Shrink Biodiesel Business, Announces Layoffs

Chevron is set to lay off 70 employees at the headquarters of its Renewable Energy Group (REG) in Ames, Iowa, according to a Worker Adjustment and Retraining Notification (WARN) filed with the Iowa Workforce Development Department. The layoffs are scheduled for June 18, 2024, and have been confirmed by a company spokesperson.

In a statement, Chevron said it is streamlining its operations to enhance efficiency and long-term competitiveness: “As previously announced, we expect these efforts will result in job reductions starting in 2025.”

Back in February 2024, Chevron announced plans to optimize its portfolio, leverage technology to improve productivity, and shift how and where work is done, including expanding the use of global service centers. The company anticipates reducing its workforce by 15% to 20% by the end of 2026, in line with its goal of cutting $2–3 billion in structural costs.

These moves follow Chevron’s $3.15 billion acquisition of REG in mid-2022. Since then, the company has been scaling back its biodiesel operations:

In early 2024, Chevron announced the closure of its biodiesel plant in Ralston, Iowa.
Around the same time, it shut down another facility in DeForest, Wisconsin.
In July 2024, Chevron will cease production at its biodiesel plant in Erding, Germany.

The layoffs and plant closures signal a strategic retreat from conventional biodiesel operations as Chevron pivots toward more streamlined and profitable business segments.

Greenergy Announces Suspension of Operations at Immingham Biodiesel Plant

Against the backdrop of a global surge in green energy, the UK’s home-grown production of renewable fuels has suffered frequent setbacks. Recently, Greenergy, the UK’s leading fuel supplier, announced that it will suspend operations at its biodiesel plant in Immingham, North East England, and initiate a strategic assessment of the plant’s commercial viability.

Greenergy said that despite significant cost-cutting measures previously taken at the plant, operational pressures have continued to intensify due to unfavorable factors in the current market environment, making it unsustainable. Employees of the plant will continue to be on board during the assessment period and the company is committed to working closely with them to properly move forward with subsequent arrangements.

The decision has sparked widespread concern within the industry. The European Waste-Based Biofuels Association (EWABA) noted that Greenergy’s temporary shutdown is another heavy blow to the UK renewable fuels industry. The association has long called for changes at the policy level, stating that “policy inaction and failures are pushing local production to the brink of collapse”.

EWABA has warned that the UK could lose all domestic renewable fuels capacity if urgent reforms are not taken – a sobering sign in the global race for green energy dominance.

Titan Aviation Fuels Supports Business Jet Operators Ahead of EU SAF Mandate

According to Corporate Jet Investor UK, Titan Aviation Fuels International is actively supporting business aviation operators in complying with upcoming EU fuel blending regulations. Set to take effect in January 2025, the regulation mandates that operators flying more than 500 flights annually must refuel with a 2% SAF blend at designated airports across mainland Europe.

Titan is closely monitoring which airports will be required to supply the 2% SAF blend, informing operators when and where compliance is necessary. The company is also assisting by providing clearly itemized invoices that reflect the SAF blend cost, helping operators demonstrate regulatory compliance.

In addition, Titan is working with operators to identify airports that can supply SAF blends on demand, as well as those that can provide standard Jet-A fuel for operators not listed under the EU’s ReFuelEU mandate.