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.

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 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.

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.

In order to accelerate the development of the Johor Bahru Special Economic Zone, six local Malaysian banks have signed a letter of intent with the Ministry of International Banking and Economy to help facilitate the attraction of capital to the zone. At present, the total investment intention of these banks has reached as high as RM2.35 billion, which fully reflects the high recognition of financial institutions on the future potential of the special zone.

It is reported that the cooperation includes Malayan Banking Berhad, as well as five international financial institutions such as United Chang Group, Galaxy International Securities, Sumitomo Mitsui Banking Corporation, Bank of America and HSBC. The exact amount of investment by the other five banks is yet to be officially disclosed.

Among them, against the backdrop of surging demand for sustainable biofuels, Alpine announced that its subsidiary plans to invest about RM350 million over the next three years to build a renewable energy feedstock pre-treatment and regenerative biodiesel refinery at Johor Tanjung Langsar Port. The project is expected to process approximately 600,000 tons of renewable feedstock oil per year and convert it into finished biofuel products.

This series of initiatives not only highlights the strong attraction of the Johor Special Economic Zone, but also shows the accelerating development trend of the integration of global financial capital and the green energy industry. With the simultaneous promotion of policy support and industry landing, Johor SEZ may become a new engine for green economy development in Southeast Asia.

The U.S. Department of Agriculture’s (USDA) latest World Agricultural Supply and Demand Estimates report, released on May 12, lowered its forecast for soybean oil consumption for biofuel production in 2024/25, but expects an increase in 2025/26.Soybean oil consumption for biofuels is forecast to be 13.1 billion pounds in 2024/25, a small increase from last month’s estimate of 13.25 billion pounds. downward revision. This figure, however, is expected to increase to 13.9 billion pounds in 2025/26, indicating continued growth in biofuel demand for soybean oil.

In terms of overall supply, U.S. soybean supplies in 2025/26 will be slightly lower than the previous year, mainly driven by lower production. Soybean production for the year is forecast at 4.34 billion bushels, with lower exports and declining production reducing total supply by less than 1%, despite higher beginning stocks. U.S. soybean crush is forecast to reach 2.49 billion bushels, up 70 million bushels from the previous year, helped by higher demand for soybean meal and increased exports.

On the price front, the 2025/26 average soybean price is forecast at $10.25 per bushel, up from $9.95 in 2024/25; soybean meal prices are forecast at $310 per short ton, up $10 year-on-year; and soybean oil prices are forecast at 46 cents per pound, up 1 cent year-on-year. Despite the pressured export outlook, U.S. soybean oil stocks are projected to increase 6 percent from the previous year.

Globally, soybean production in 2025/26 is forecast at 426.8 million tons, up 1%, with Brazil leading the way with a record production of 175 million tons, up 6 million tons from the previous year. Argentina, on the other hand, has seen production revised down to 48.5 million tons due to a shift in acreage to corn.

Global soybean crush is expected to grow 3% to 366.5 million tons, with China, the U.S., Brazil, Egypt, and Pakistan as the main driving forces. Global soybean exports are expected to grow 4% year-on-year to 188.4 million tons, with an 8.5 million-ton increase in exports from major South American exporters (Brazil, Argentina, Paraguay, and Uruguay) more than offsetting the decline in U.S. exports. China’s soybean imports are expected to reach 112 million tons, up 4 million tons year-on-year.

Global soybean ending stocks are expected to increase by 1.2 million tons to 124.3 million tons, with Brazilian and Argentinean stocks increasing to compensate for the decline in U.S. stocks. Overall, the global soybean industry continues to be driven by both biofuels and international demand.

On May 9, China Ship Fuel (CSF) successfully refilled 5,600 tons of bonded B24 biofuel oil for the vessel SALLY MAERSK at Guandong Terminal of Shanghai Yangshan Port, which set a new record for the amount of marine biofuel oil refilled at a single time in China.

Recently, U.S. Rep. Mike Carey, R-Ohio’s 15th District and a member of the House Fundraising Committee, and Rep. Mariannette Miller-Meeks, M.D., a Republican member of Iowa’s 1st District, co-sponsored a cross-party legislative proposal aimed at extending tax incentives for second-generation biofuels to further the development of the indigenous advanced biofuel industry. fuels to extend tax incentives for second-generation biofuels and further promote the development of a homegrown advanced biofuels industry.

The proposal seeks to extend the existing second-generation biofuel producer tax credit of up to $1.01 per gallon for qualifying fuels, such as corn fiber-based cellulosic ethanol. Since its inception, this tax incentive has been instrumental in driving investment in innovative fuel technologies and the scaled-up production of domestically produced advanced fuels.

Legislators say the continuation of this policy will further solidify U.S. technological advantage in the clean energy sector, while enhancing rural economic vitality and reducing dependence on fossil fuels. The bill, which is currently under consideration by the U.S. Congress and has the support of some Democratic lawmakers, is expected to become one of the focal points of the policy game in the coming months.

SK Incheon Petrochemicals announced on April 30 that it has officially launched and started supplying B30 marine biofuel in response to the shipping industry’s policy requirement to reduce greenhouse gas emissions.

The B30 fuel, which contains 30% bio-based components, was developed to meet the growing demand for sustainability in the shipping industry. The fuel is a 7:3 blend of SK Incheon Petrochemical’s straight-run fuel oil (SRFO) and biofuel supplied by JC Chemical.

The product, jointly developed by SK Incheon Petrochemical and SK Innovation’s Institute of Environmental Science and Technology, complies with the ISO 8217 international standard for marine fuels and was officially launched in the market on April 26th.