Category Archives: Biodiesel

Zhuoyue New Energy to invest 700 million RMB in Thailand biodiesel and HVO/SAF project

Zhuoyue New Energy announced on the evening of July 8 that it plans to invest RMB 700 million of self-raised funds in a bioenergy production project in Chonburi Province, Thailand. The project will be executed by its wholly owned subsidiary, Zhuoyue New Energy (Thailand) Co., Ltd.

The project includes the construction of a 300,000-ton-per-year biodiesel production facility and a 100,000-ton-per-year integrated HVO/SAF (Hydrotreated Vegetable Oil / Sustainable Aviation Fuel) production line, along with associated infrastructure. The entire project is expected to be completed over a 12-month construction period and will be carried out in phases. Phase one will focus on the completion of the biodiesel plant and its supporting facilities.

Currently, Zhuoyue’s Thai subsidiary has completed the necessary overseas investment filings, obtained an approval certificate from Thailand’s Board of Investment (BOI), and signed a land lease agreement. The project has now entered the land survey stage, and construction is progressing steadily.

Once completed, this project will significantly enhance Zhuoyue New Energy’s overseas production capacity and support its strategic expansion into the international biofuel market, particularly in Southeast Asia. The development aligns with global efforts to promote renewable energy and low-carbon transportation fuels, positioning the company as a competitive player in the growing HVO and SAF sectors.

45Z clause extended to 2029, credit raw materials limited to North American production areas

The U.S. Clean Fuels Coalition recently expressed strong support for the improvements to the Section 45Z clean fuel production tax credit included in the “Great Beautiful Act” passed by Congress, and thanked President Trump for his signature and support. The new legislation not only extends the 45Z tax credit through 2029 but also allows taxpayers to transfer credit amounts, providing unprecedented policy certainty for the biodiesel and renewable diesel industries, particularly for small producers.

Kovarik, Vice President of Federal Affairs at the Clean Fuel Association, expressed gratitude for Congress’ efforts to create conditions for industry recovery and growth, particularly thanking Iowa Senator Grassley for advocating for increased credit amounts for small agricultural biodiesel producers, helping them transition smoothly to the new Section 45Z system. Additionally, the bill extends the Section 40A small producer credit through 2026 and increases it to 20 cents per gallon. Facilities producing 60 million gallons annually can simultaneously qualify for both this credit and the 45Z credit, with the same transfer rules applying.

The new bill also requires the Treasury Department to expedite clarification of technical details, including “qualified sales” rules and other fuel sales arrangements, and to exclude indirect land-use change (ILUC) impacts from lifecycle emissions calculations starting in 2026, to more fairly assess the carbon reduction value of different feedstock pathways. Additionally, the credits will be limited to feedstocks grown in North America, strongly supporting the development of domestic agriculture in the United States.

biodiesel

Trump plans to strengthen mandatory biofuel requirements by 2027

The Trump administration has recently unveiled a significant proposal aimed at substantially increasing the proportion of renewable fuels blended into the U.S. fuel supply over the next two years. Led by the U.S. Environmental Protection Agency (EPA), the proposal recommends raising the total renewable fuel targets to 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027, up from the 22.33 billion gallons set for 2025. This initiative places strong emphasis on increasing the mandatory use of biomass-based diesel and includes provisions to limit the import of biofuels, aiming to boost domestic production.

The EPA proposes setting the Renewable Identification Number (RIN) quota for biomass-based diesel at 7.12 billion in 2026, which is expected to correspond to 5.61 billion gallons of fuel. It also estimates that each gallon of biomass diesel will generate 1.27 RINs in 2026 and 1.28 RINs in 2027, down from the previous estimate of 1.6 RINs per gallon. This reflects the agency’s policy direction to reduce reliance on imported RINs and prioritize the development of a domestic renewable fuel supply chain.

Argentina approves use of pure biofuels in shipping industry

According to BNamericas, Argentina has introduced new regulations regarding the use of biofuels in maritime transport. Under a reform announced by the Federal Energy Secretariat, biofuels can now be directly loaded into the fuel tanks of river and ocean-going vessels, or blended with fossil fuels for the same purpose.

The Secretariat stated that the use of biofuels in shipping is increasing due to their potential to significantly reduce greenhouse gas emissions in the maritime sector. This adjustment falls within the framework of Argentina’s Biofuels Law No. 27640 of 2021. A subsequent regulation, Resolution No. 689/2022, had previously exempted maritime activities from mandatory biodiesel blending and established a registry for biofuel producers and blenders.

The latest changes grant vessel operators greater flexibility in choosing the type and blend of fuel they use. Additionally, a new category of “fuel operators” has been introduced, expanding the regulatory structure and supporting the broader adoption of biofuels in maritime transport.

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.

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.

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.

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.