Dear reader,
For climate protection reasons, Europe wants to say goodbye to the combustion engine. Other countries, above all India, Brazil and the USA, are focussing on the final development and construction of ‘combustion engines’ that run on up to 100% CO2-neutral fuels. These are already making a greater contribution to climate protection than hydrogen or electrically powered engines. While the production of biofuels is constantly facing new hurdles in the EU, the USA is already producing 168,400 tonnes of bioethanol ‘per day’! More in attachment.
Brazil’s Stellantis began fuelling its Jeep and Fiat Flex Fuel vehicles – including the Renegade, Compass, Commander and Fiat Toro models with T270 Flex and Turbo 270 Flex engines – with 100% ethanol directly from the assembly line at the Goiana Automotive Center. An initiative that was launched in the presence of Brazilian Vice President Geraldo Alckmin. The Goiana plant, an important facility in the Stellantis production network, plays a central role in this sustainability initiative. The plant is responsible for the production of a range of Jeep and Fiat vehicles, and this new ethanol fuelling method is expected to reduce CO2 emissions by around 2,100 tonnes per year from the first fuel supply alone – a reduction of around 87% compared to conventional petrol. By 2025, all flex-fuel vehicles produced by Stellantis in Brazil will adopt a 100% ethanol fuelling method.
Brazilian Senate has approved a bill to expand the production and use of biodiesel and other biofuels such as ethanol, green diesel and biomethane. The bill, which will now go back to the Chamber of Deputies for a final vote, is expected to attract investments of R$ 200 to 250 billion. The aim of the law is not only to reduce carbon emissions, but also to promote the growth of the agricultural industry and create jobs in rural regions of Brazil.
India’s Minister of Petroleum and Natural Gas, speaking at the India Bio Energy & Tech Expo on 2 September, urged car manufacturers to produce vehicles compatible with E100 fuel. The government, which is actively working with the automotive industry, wants to expand the use of ethanol as part of its broader strategy to reduce dependence on crude oil imports and cut greenhouse gas emissions. The Minister praised the industry for its progress in producing E20 compliant vehicles and developing retrofit kits for older models. The government has already introduced E100 fuel at over 400 outlets across the country, taking an important step towards its goal of achieving a 20 per cent ethanol blend in petrol by 2025. More information is available on request.
The German government is not budging when it comes to the fraud involving climate protection certificates. Because the bioenergy sector believes it is reacting too cautiously and the consequences for domestic biofuel producers are becoming increasingly dramatic, an initiative has now been set up. It wants to inform the public about the incidents and thus build up more political pressure.
Representatives from across Australia’s agriculture and fuel supply chain have called on the Government to immediately develop a national low carbon liquid fuels strategy to realise the ambitious agenda outlined by the Federal Government in its Aviation White Paper released last week. Low carbon liquid fuels have been identified as a priority industry under the Government’s flagship Future Made in Australia programme and are a key part of the aviation industry’s future net zero ambitions. With its extensive agricultural resources, Australia has the capacity to produce significant quantities of feedstock for biofuels. The production of low-carbon liquid fuels from these feedstocks can play a key role in meeting national emissions reduction targets while boosting the rural economy. You can find out more under the link. https://asmc.com.au/a-national-biofuels-feedstock-strategy-to-give-flight-to-aviations-net-zero-ambitions-27-august-2024/
Please also take a look at the current UVOP information flyer on oilseeds and biofuels, which is attached.
The US Clean Fuels Alliance sent a letter to the US Treasury Department last week urging the agency to issue guidance on the §45Z Clean Fuels Production Credit, including safe harbours, by 1 September. The new production credit will be available from 1 January 2025, when the existing blender’s credit expires. Clean Fuels’ letter highlights the difficulties farmers, producers and fuel marketers will face in making the transition if they do not receive guidance on the regulations. https://advancedbiofuelsusa.info/clean-fuels-urges-treasury-to-immediately-issue-45z-guidance-and-safe-harbors
The Korean government will mandate the use of a SAF mix on all international flights leaving the country from 2027. Elsewhere, Cathay expects the Hong Kong government to come up with a ‘holistic plan’ to facilitate the use of sustainable aviation fuels in the city. https://bioenergytimes.com/hong-kongs-cathay-pacific-airways-urges-government-to-come-up-with-plan-to-help-local-airlines-make-switch-to-green-fuel/
Olam Agri, the world’s leading commodity producer in Rajgoli, India, has announced an investment of USD 60 million to set up a multi-input bioethanol plant next to its existing sugar factory. The plant, which is expected to be operational by March 2025, will produce ethanol from sugarcane and corn, catering to India’s shift to blended fuels such as E20. https://www.chinimandi.com/olam-agri-to-invest-around-60-million-in-multi-input-bio-ethanol-unit-at-rajgoli-in-maharashtra/
China’s biodiesel industry has begun to refocus on domestic markets after the European Union imposed anti-dumping duties of 12.8% to 36.4% on Chinese biodiesel exports in July. The duties, which affect almost 90% of Chinese biodiesel exports – 1.8 million tons in 2023 – have severely impacted trade with the EU, which sources 60% of its biodiesel imports from China. https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/agriculture/081624-eu-imposes-anti-dumping-duties-targeting-cheap-chinese-biodiesel-imports
The Spanish gas distributor Naturgy has already signed 45 contracts for the connection of biomethane plants to feed renewable gas into its gas distribution network. The feed-in capacity associated with these applications amounts to 2,400 GWh/year, which is equivalent to the gas consumption of almost half a million households in Spain. Broken down by autonomous community, Nedgia has signed a total of 13 connection contracts in Castilla y León, 10 in Castilla-La Mancha, 8 in Catalonia, 5 in Galicia, 4 in Andalusia, 3 in Navarra and 2 in the Comunidad Valenciana. 70% of the biomethane feed-in from these applications is concentrated in Castilla y León (630 GWh/year), Castilla-La Mancha (586 GWh/year) and Catalonia (449 GWh/year). https://www.veyt.com/articles/nedgia-contracts-shows-promise-for-the-spanish-biomethane-industry
SEKISUI and LanzaTech have signed a licence agreement to build waste-to-ethanol plants across Japan using LanzaTech’s advanced gas fermentation technology. This innovative process converts municipal and industrial solid waste into ethanol by capturing carbon from waste streams without chemical catalysts, heat or pressure, relying instead on a microbial catalyst. https://www.globenewswire.com/news-release/2024/09/03/2939447/0/en/LanzaTech-Signs-Master-License-Agreement-with-SEKISUI-to-Develop-Multiple-Commercial-Scale-Waste-to-Ethanol-Plants-Across-Japan.html
Hintco has signed a contract worth €397 million with Fertiglobe to supply 19,500 tonnes of renewable ammonia to Europe in 2027, with deliveries expected to reach 397,000 tonnes by 2033. The ammonia will be produced at Fertiglobe’s Egypt Green Hydrogen plant, which will be fuelled by 273 MW of new renewable electricity being built in Egypt to support the project. https://www.zawya.com/en/business/energy/fertiglobe-hintco-ink-442mln-deal-for-green-ammonia-supply-from-egypt-to-europe-hfv4ywbw
Iberia Maintenance has begun using 5% sustainable aviation fuel (SAF) in its engine test bench at the La Muñoza facilities, near the Adolfo Suarez Madrid-Barajas airport, in what marks another step towards the decarbonization of the sector. The use of this type of fuel will allow for a reduction of 115 tons of CO2 emissions per year. Iberia Maintenance thus becomes the first Spanish aeronautical maintenance provider to use continuously this type of fuel in its engine test bench for commercial airlines. https://grupo.iberia.com/news/28082024/iberia-maintenance-begins-to-use-cepsas-sustainable-aviation-fuel-in-its-engine-test-benches
Acciona and Plug Power have announced an investment of 49 million euros for the development of a green hydrogen production plant in Arteixo (Spain). The project, called Arteixo H2V, has been declared a strategic industrial initiative by the Galician government, which has accelerated the authorisation process. The plant will use renewable energy to produce around 3,000 tonnes of green hydrogen per year with the help of four 5-megawatt electrolyser modules. https://fuelcellsworks.com/2024/09/05/clean-energy/acciona-to-invest-euro49-million-in-new-green-hydrogen-production-plant-in-a-coruna
ETH researchers in Zurich have achieved a breakthrough in hydrogen storage technology: With the help of iron, hydrogen can be stored safely over long periods of time. The innovative method was demonstrated in a pilot plant on the Hönggerberg campus of ETH Zurich. The technology uses iron oxide to convert hydrogen into elemental iron, which can be stored and converted back into hydrogen when required – ideal for seasonal energy storage. https://www.ironpowerzone.com/tech/eth-zurichs-innovative-iron-reactors-revolutionize-hydrogen-storage/
Australian company Worley began initial engineering design work in September on a ground-breaking green ammonia project in Tarfaya, Morocco. This project, the world’s first Power-to-X green ammonia programme, will use wind and solar energy to produce green ammonia, a key component of sustainable fertilisers. The project in Tarfaya in southern Morocco includes extensive infrastructure such as hydrogen and ammonia plants, a transmission network and a temporary camp for 30,000 workers, which will later develop into a city. https://www.barlamantoday.com/2024/08/28/worley-ocp-to-begin-design-approach-for-major-green-ammonia-projects/
India’s drive to boost ethanol production from corn has made the country a net importer of corn for the first time in decades, driving domestic prices to record highs and impacting global supply chains. The policy shift, which comes with an increase in corn-based ethanol procurement prices, is aimed at reducing India’s dependence on sugarcane for biofuel while reducing carbon emissions by blending ethanol with gasoline. https://www.outlookbusiness.com/planet/sustainability/indias-ethanol-strategy-turns-corn-exporter-into-net-importer-strains-poultry-sector
Clariant has shut down its ethanol production plant in Romania. At the end of July, the International Chemical Investors Group (ICIG) signed an agreement with Clariant to purchase the decommissioned bioethanol plant in Podari, Romania. In future, the site will be operated by ICIG subsidiary Corden BioChem. As a biotechnological CDMO, Corden BioChem already operates one of Europe’s largest fermentation plants in the Frankfurt-Höchst industrial park in Germany. With the acquisition of the Podari site, Corden BioChem is expanding its capacities for aerobic fermentation. The site also provides Corden BioChem with new capacity for anaerobic fermentation. The size of the Podari digesters, between 300 and 2,500 cubic metres, will enable Corden BioChem to offer its customers large-scale fermentation services at competitive prices. As part of the reorganisation of the site into a flexible contract manufacturer for fermentation products, ICIG is planning further investments in the high double-digit million range, particularly for necessary downstream processes.
The Hungarian MOL Group has commissioned a 10-megawatt green hydrogen plant in Százhalombatta. The plant will be able to produce 1,600 tonnes of green hydrogen per year and is expected to reduce the Danube refinery’s carbon dioxide emissions by 25,000 tonnes per year. MOL will use the green hydrogen primarily for fuel production, supporting the company’s transition to a lower-carbon future. The plant is in line with MOL’s SHAPE TOMORROW strategy, which aims to make the region more sustainable and energy self-sufficient. By replacing natural gas-based processes, this project will gradually reduce the company’s overall carbon footprint. https://www.offshore-energy.biz/mol-group-opens-10-mw-green-hydrogen-plant-in-hungary/
Gensol Engineering Limited, in collaboration with Matrix Gas & Renewables, was awarded the EPC contract for India’s first biomass-to-green hydrogen project worth INR 164 crore. This landmark project, to be completed within 18 months, will convert 25 tonnes of bio-waste into one tonne of hydrogen per day and marks a critical milestone in India’s National Green Hydrogen Mission. https://www.mercomindia.com/gensol-matrix-develop-bio-hydrogen-project