On January 9, the European Biodiesel Board (EBB) welcomed the approval by EU member states of final duties on biodiesel (FAME) and renewable diesel, also known as hydrotreated vegetable oil (HVO), from China.

In July 2024, the EBB was granted provisional anti-dumping duties that are currently in force but subject to approval by EU member state governments.

This approval formally adopted the European Commission’s proposal to impose such anti-dumping duties at the Trade Defense Committee on January 8th. These final duties will be implemented as soon as possible over the next five years.

The next official step is the publication of the implementing regulations for the application of the final tariffs in the Official Journal of the European Union.

The final measures will be in place for five years from the date of publication.

The regulation must be published by February 14 at the latest.

The U.S. Department of Energy’s (DOE) Bioenergy Technologies Office (BETO) and the U.S. Environmental Protection Agency (EPA) announced $6 million in funding for three projects that will advance biofuels development and support U.S. leadership in energy and emissions innovation.

Funded by the Inflation Reduction Act (IRA), the projects will support research to improve performance and reduce the cost of high-impact biofuel production technologies; expand production systems through industry; and support the U.S. bioeconomy.

Located in three states, these projects will support the U.S. Department of Energy’s Sustainable Aviation Fuels (SAF) Grand Challenge goals by developing biofuel technologies that use sustainable biomass and waste feedstocks.

Malaysia’s Minister of Plantation and Raw Industries, Zohari Abdulgani, said the country supports Indonesia’s commitment to move forward with the B40 biodiesel program in 2025, despite recent delays in implementation. He noted that increasing the mandatory blend ratio of biodiesel is important to support the palm oil industry.

Zohary said Indonesia produces about 48 million tons of palm oil annually, of which about 25 percent is used for biodiesel production. Currently, Indonesia’s biodiesel blending ratio has reached the B40 level (biodiesel containing 40% of palm oil-based fuel), while Malaysia is still stuck at the B10 level.

The comments came after Johari witnessed the signing of a memorandum of cooperation between FGV Holdings and the Malaysian Palm Oil Board (MPOB).

Indonesia’s Energy and Mineral Resources Minister signed a decree on Friday allocating 15.6 million kiloliters of biodiesel for 2025 and asking the industry to adjust to a higher percentage of the blend by the end of next month. “The ministerial regulation has been signed,” Minister Bahlil Lahadalia told reporters, revealing that the government plans to increase the mandatory biodiesel ratio to 50 percent next year.

Eniya Listiani Dewi, a senior official at the Ministry of Health, said biodiesel producers and fuel retailers have until February 28 to adapt to the B40 blend. She cited technical challenges associated with fuel subsidies as the reason for the extension.

Of this year’s total allocation, KL7.55 million is for Public Service Obligation (PSO), covering areas such as public transportation, and sales will be subsidized by the country’s palm oil fund.

Translated with DeepL.com (free version)

The recent reversal of the upward trend in palm oil prices could affect Indonesia’s B40 biodiesel policy, which is scheduled to be introduced in January 2025, according to MAS. High palm oil prices have weakened Indonesia’s export competitiveness, leading to lower revenues from export taxes, a key source used to subsidize domestic biodiesel prices.

In response to this challenge, Indonesia may slow down the pace of implementation of the B40 policy to avoid an excessive shock to the market. This decision reflects the potential impact of high feedstock costs on the sustainability of the biodiesel policy and highlights the dilemma the government faces in balancing export revenue generation with the domestic energy transition.

The Minister of Energy and Mineral Resources, Balil Rahadarya, recently stated that the Government of Indonesia will not only emphasize the independence of oil and gas in achieving energy self-sufficiency, but will also vigorously promote the development of renewable energy. He emphasized that Indonesia aims to be a country that achieves independence in both conventional and renewable energy.

In line with President Prabowo Subianto’s Asta Cita vision for national development, the government is taking a number of strategic measures and plans to significantly increase renewable energy capacity over the next few years to support the global transition to cleaner and greener energy. Among them, a mandatory 40% biodiesel (B40) program will be implemented in 2025, followed by a B50 program in 2026, with the goal of reducing diesel imports and achieving energy independence.

In 2023, Indonesia’s biodiesel use reached 12.2 million kiloliters, with plans to increase to 12.5 million kiloliters by 2025. This move not only saves about US$7.9 billion in foreign exchange, but also adds Rp 15.82 trillion in value added by processing crude palm oil into biodiesel.

Minister Rahadaria placed special emphasis on the development of geothermal energy, which is expected to increase the share of renewable energy in the country’s energy mix to 14.1% by the end of 2024, with geothermal energy contributing 40%. Currently, geothermal power generation has made Indonesia the second largest geothermal power producer in the world, with an installed capacity of 2.6 GW.

In addition, the government is committed to increasing oil and gas extraction, optimizing energy block development, accelerating the penetration of electric vehicles, and improving energy efficiency. The Minister noted that cooperation with the private sector and communities was crucial to achieving national energy security. Through these comprehensive measures, Indonesia was on the path to stronger and more sustainable energy independence.

Brazil is significantly increasing its soybean processing capacity to meet biodiesel demand. Driven by the “Future Fuels” law, by 2027, the vegetable oil content of biodiesel will increase from 14% to 17%, driving a 34% surge in soybean oil demand. Biodiesel consumption is expected to increase from 9.3 billion liters in 2024 to 12.3 billion liters in 2027, underscoring its determination to promote clean energy and reduce dependence on fossil fuels. In order to secure the supply of soybean oil, the plant will expand its production capacity, while exports will be maintained at an average of 1 million tons per year, demonstrating the strategy of shifting to domestic consumption.

Kawasaki Kisen Kaisha Corporation (K Line) announced on 19 December that it supplied marine biofuel to Viking Ocean, a car carrier operated by the K Line Group, at Yokohama Oguro C-4 Terminal, a full-vehicle terminal operated by the K Line Group, on 9 December.

This is the first time that Kawasaki Kisen Kaisha has supplied biofuel to a vessel it operates in Japan.

The vessel is owned by Norwegian company Gram Car Carriers, a long-term partner of K Line.

Malaysian palm oil futures closed lower on Thursday and fell for the fifth consecutive session as they were dragged down by uncertainty over Indonesian and U.S. biofuel policies.

Analysts said crude palm oil prices continued to fall from Wednesday as sentiment in the global vegetable oil market changed this week, in addition to higher vegetable oil prices leading to uncertainty over Indonesian and US biofuel policies, which have led to increased subsidies for their respective projects.

Indonesia’s chief economy minister said the country will increase its gross palm oil export fee to 10 per cent from the current 7.5 per cent to subsidise biodiesel projects. Indonesia plans to increase the mandatory blending rate for palm oil-based biodiesel from 35% to 40%, or B40, on 1 January 2025, which means palm oil demand is expected to rise by nearly 3 million tonnes for the year if Indonesia rolls out B40 as expected.

Final Malaysian March palm oil closed down 0.38 per cent to 4,512 ringgit per tonne, while Dalian soybean oil fell 3 .48 per cent and palm oil 3 .83 per cent, and Chicago soybean oil rose 1 .01 per cent.

Portugal’s Galp Energia (GALP.LS) said on Thursday it expects to start building an industrial-scale unit at its Sines refinery in 2026 to produce biodiesel and biojet fuel from waste.

Last year, Galp set up a joint venture with Japan’s Mitsui & Co (8031.T) with a 75%-25% stake each, and the new label will invest 400 million euros ($415 million) in a hydrogenated vegetable oil (HVO) plant, which will produce 270,000 tonnes a year.