The European CO2 price

Dear Readers,

In 2005, the European Union launched a major project that is unknown to many, yet remains one of the most successful examples of European cooperation: emissions trading. The Emissions Trading System (ETS) has contributed to reducing greenhouse gas emissions in Europe by half over the past 20 years. The ETS has so far only applied to industry and certain economic sectors – starting in 2027, it will also directly affect private households for the first time. The goal of the ETS is to reduce greenhouse gas emissions, especially CO2, in the EU. The continent is to be greenhouse gas neutral by 2050. To achieve this, a cap on CO2 emissions is set, which all companies covered by the system and wishing to operate in Europe may not exceed. This cap is reduced slightly each year. Every company that emits CO2, such as a power plant, an airline, or a large factory, requires a certificate – one certificate allows the emission of one ton of CO2. Companies can acquire the certificates in two ways: They can either receive them directly from the EU (either by bidding for them at an auction or through free allocation) or they can purchase them from another company. Certain sectors that the EU is determined to keep in Europe benefit from free allocation. However, the number of free certificates is continually being reduced. Trade between companies occurs when a company owns more certificates than it needs and can then sell the excess certificates to other companies. This rewards companies that emit fewer greenhouse gases. Conversely, companies that emit comparatively high levels of CO2 must pay more and thus have an incentive to convert their processes to climate-friendly bio-based plastics.

These bioplastics make an important contribution to a sustainable bioeconomy: They combine the outstanding properties of modern materials with the advantage of conserving fossil fuels and reducing CO2 emissions. The German Agency for Renewable Resources (FNR) will present selected projects at the international plastics trade fair K 2025, which takes place from October 8 to 15 in Düsseldorf.

According to EUROSTAT, imports of UCOME-based biodiesel (UCOME – Used Cooking Oil Methyl Ester) from third countries totaled 1.04 million tons between January and June 2025. This represents an increase of 223,335 tons, and China remains the leading supplier. UFOP calls for effective measures to prevent fraud. Further data and information are attached.

A bill has been passed in California that could lower gasoline prices in the state. The governor signed Assembly Bill 30 into law by Representative David Alvarez. This bill allows the sale of an additional gasoline blend—specifically, E15 fuel—in the state while the Air Resources Board (CARB) completes its ongoing work to determine whether the additional blend can meet the state’s clean air requirements. Last October, the governor directed CARB to expedite its study of how California can increase the percentage of ethanol in gasoline while protecting the environment. Allowing this alternative gasoline blend reduces the state’s dependence on petroleum and further diversifies its fuel supply, avoiding spikes in gasoline prices and the associated costs for consumers at the pump. More at: https://www.gov.ca.gov/2025/10/02/governor-newsom-signs-bill-expanding-fuel-options-to-cut-gas-prices/

Representatives from PetroVietnam met with FS executives to discuss a partnership for ethanol production and distribution in advance of the government’s new E10 blending regulations. PetroVietnam has restarted the Dung Quat bioethanol plant, with a capacity of 100 million liters per year. This project received significant government support but later became a non-profit project. The E10 commitment is being met through domestic production, but also through significantly increased imports. The company has also produced the country’s first sustainable aviation fuel. https://theinvestor.vn/petrovietnam-brazils-fs-seek-cooperation-in-biofuel-production-d16903.html

The German government is introducing an acceleration law for the production, transport, and storage of hydrogen. The federal government intends to accelerate the development of the infrastructure. The goal is to simplify and digitize the approval procedures and reduce bureaucratic hurdles. The expansion of the hydrogen infrastructure is therefore in the overriding public interest. This should accelerate planning and approval processes. According to the ministry, the draft law covers the entire supply chain, from production to import and storage to transport of hydrogen. More information at: https://www.handelsblatt.com/politik/deutschland/infrastruktur-kabinett-bringt-wasserstoff-beschleunigungsgesetz-auf-den-weg/100159423.html?xing_share=news

The Spanish Port of Alicante has taken an important step in its sustainability strategy by launching a preliminary market consultation (PMC) to prepare for the future concession for a green hydrogen production facility. The initiative, called PORTALI-H2, aims to position the port as an energy benchmark in the Mediterranean region, supporting the European Union’s decarbonization goals. With this initiative, the Port of Alicante aims to position itself at the forefront of the energy transition in the Spanish and European port system, pursuing the objectives of the European Green Deal and the EU’s “Fit for 55” plan, which outlines the roadmap to climate neutrality. The use of this mechanism is regulated by the Public Procurement Law and is increasingly being used to prepare complex tenders. In this case, the APA seeks to identify feasible technologies, compare schedules and budgets, and ensure that the final facility design meets the needs of the port and its logistics environment. https://www.puertoalicante.com/noticia/el-puerto-de-alicante-avanza-hacia-el-hidrogeno-verde-con-una-consulta-al-mercado-el-plazo-de-presentacion-de-propuestas-finaliza-el-30-de-septiembre/

Lithium mining is considered key for batteries and the automotive industry, especially for electric cars. Now the German government wants to examine whether Germany can produce its own lithium. Economics Minister Katherina Reiche (CDU) said on the sidelines of the cabinet meeting in Berlin that several projects are already being examined. She referred to the new raw materials fund, which is intended to facilitate investment. “Wherever we can make a contribution, we will do so,” she explained. More at: https://www.spiegel.de/wirtschaft/e-mobilitaet-regierung-setzt-auf-heimisches-lithium-fuer-batterien-a-705fab73-5104-45e6-a51c-9b29c89eb9fd?xing_share=news

Data from the US Energy Information Administration (EIA) shows that American ethanol production fell to 995,000 barrels (158 million liters) per day. This is due to seasonal maintenance work before new corn from the current crop enters the mills. Production fell below 1 million barrels per day for the first time since May. Ethanol inventories fell by 704,000 barrels to 22.764 million barrels due to continued strong demand. Exports also fell to 88,000 barrels per day, 24,000 barrels less than the previous week. https://www.brownfieldagnews.com/ethanol/

Anaergia’s subsidiary has signed an agreement to advance a key renewable natural gas infrastructure project in the City of Riverside, California. Under this agreement, and subject to certain financial closing and financing conditions, Anaergia’s development-stage project facility, the Riverside Bioenergy Facility, LLC (“RivBF”), will be sold to a developer with institutional investor financing. RivBF currently has a lease with the City of Riverside that, upon approval by the parties, will support the construction of infrastructure to convert organic waste into renewable natural gas. https://www.businesswire.com/news/home/20250908619215/en/Anaergia-Announces-Agreement-to-Provide-EPC-and-OM-Services-for-Project-in-Riverside-California

Die Entscheidung der kanadischen Regierung, Anreize für die Biokraftstoffproduktion zu schaffen, ist ein wichtiger Schritt zur Wiederbelebung des heimischen Energiesektors und zur Sicherung kanadischer Arbeitsplätze. „Kanadas Energiesicherheit muss unsere oberste Priorität bleiben“, sagte Unifor-Präsidentin Lana Payne. „Durch die Stärkung des Marktes für Biodiesel und erneuerbaren Diesel haben wir die Möglichkeit, gute Arbeitsplätze zu schaffen und Kanadas Energieversorgungskette zu stärken.“ Die von Premierminister Mark Carney angekündigte Initiative sieht über zwei Jahre hinweg mehr als 370 Millionen Dollar zur Unterstützung inländischer Produzenten vor. Ziel ist die Stabilisierung des kanadischen Biokraftstoffsektors als Reaktion auf neue US-Subventionen und -Politiken, die kanadische Energieexporte schwächen. https://finance.yahoo.com/news/biofuel-production-incentives-boost-industry-181300287.htmlguccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZWNvc2lhLm9yZy8&guce_referrer_sig=AQAAALbxKZ7IHgHFar1Hkq-l9DsI_F2CSSNS3eLg29lzEoks-hofNtUoIUy5m96NIv7SFqRCdv0EHWL69Hpvwn-yDt-qHj25fCcnlHLNhKObwdiOPMXJ988LNk64uocUtn_E2e3PvCDLfFQHgqShzVV8yN_V0NC_lYvYkQHACO88X166

Delta Air Lines, in partnership with Shell and Portland International Airport (PDX), has introduced sustainable aviation fuels (SAF) into the PDX fuel system. This marks the first commercial SAF supply at PDX. This achievement not only expands Delta’s SAF presence but also positions PDX—owned and operated by the Port of Portland—to capitalize on the continued growth of SAF in the U.S. The batch of over 400,000 gallons of SAF blend was produced in the U.S. from waste feedstock. Shell delivered the pure SAF shipment to Portland’s Zenith Terminal, where it was blended with conventional jet fuel to meet regulatory requirements and then delivered to PDX by barge, truck, and pipeline. Earlier this month, the SAF blend began entering the airport’s private fuel supply system. https://news.delta.com/delta-partners-shell-and-port-portland-first-commercial-scale-saf-uplift-portland-international

Allied Biofuels FE LLC Uzbekistan announced the signing of key land and water contracts with the regional government of Uzbekistan. This represents a critical milestone in the implementation of its green aviation fuel (SAF) project in the Khorezm region. This planned initiative represents an investment of USD 5.9 billion and will create the first fully integrated biorefinery for zero-carbon aviation fuel in Central Asia. The facility is expected to produce 382,000 tons of sustainable aviation fuel (SAF), 152,000 tons of electrosynthetic SAF (e-SAF), and 11,000 tons of renewable (green) diesel annually, supported by 2 GW of PEM electrolyzers. The project is the first step toward establishing a climate-smart aviation fuel supply chain in Uzbekistan and positions the Khorezm region as an emerging center for sustainable energy and industrial innovation. https://www.globenewswire.com/news-release/2025/10/02/3160164/0/en/5-9-billion-green-aviation-fuel-project-marks-strategic-milestone-for-Khorezm-as-global-green-energy-hub.html

Die Delorean Corporation hat mit Origin Energy Retail Limited einen verbindlichen Gasabnahmevertrag über die langfristige Versorgung mit erneuerbarem Biomethan aus ihrer Bioenergieanlage SA1 Salisbury in Edinburgh Parks, Südaustralien, abgeschlossen. Das erneuerbare Gas wird über das Gasnetz geliefert. Im Rahmen des Vertrags wird Origin jährlich bis zu 200 Terajoule Biomethan aus der SA1-Anlage von Delorean (derzeit im Bau) auf Take-or-Pay-Basis für einen Zeitraum von acht Jahren ab der voraussichtlichen ersten Gaslieferung im April 2026 bis März 2034 kaufen, mit einer weiteren zweijährigen Option für Origin bis März 2036. https://investorhub.deloreancorporation.com.au/announcements/7144475

Tata Steel and the Dutch government have signed a memorandum of understanding (MoU), representing an important step toward cleaner and future-proof steel production—developed in-house and in the Netherlands. The MoU contains agreements on targets, financing, and timelines aimed at creating a healthier living environment and reducing CO2 emissions by over 40%. The joint signing underscores the shared belief in more sustainable steel production in the Netherlands, also known as the “Green Steel Plan.” https://www.tatasteelnederland.com/en/sustainability/green-steel-plan/agreement?_gl=1*14gzcvz*_up*MQ..*_ga*MTgxNDA0MzU4MS4xNzU5NDM3MTM5*_ga_ZJG2C9ENNR*czE3NTk0MzcxMzgkbzEkZzAkdDE3NTk0MzcxMzgkajYwJGwwJGgw

Hurtigruten is launching its first climate-neutral biofuel cruise. Known for one of the world’s longest coastlines, this groundbreaking 4,000-kilometer round trip will sail along the Norwegian coast from Bergen to Kirkenes and back, underscoring the company’s commitment to innovation and environmental protection. The battery-hybrid ship MS Richard With will depart from Bergen on its regular coastal route, but for this milestone voyage, her tanks will be filled with 100% advanced biofuel. https://press.hurtigruten.com/pressreleases/hurtigruten-sets-date-for-groundbreaking-4000km-climate-neutral-biofuel-sailing-3407995

Led by Process Technical Services (PTS), Green Carbon Development has selected Axens Vegan® technology for its new renewable fuels production facility. Designed for a capacity of 10,500 barrels per day (BPSD), the Jasper project will utilize the Vegan® hydroprocessing solution to flexibly produce both sustainable aviation fuel (SAF) and renewable diesel (RD). This dual capability allows Green Carbon Development to respond to evolving market demands while maximizing carbon savings potential across the transportation sector. https://www.axens.net/

The Swiss company Schneider Electric and Climeworks have reached a major agreement to remove 31,000 tons of carbon dioxide from the atmosphere. This is Schneider’s first purchase of a highly durable CO2 remover and Climeworks’ largest portfolio contract to date. On behalf of Schneider, Climeworks will remove 31 kt of CO2 using three highly durable solutions: direct air capture and storage, bioenergy with CO2 removal and storage, and enhanced rock weathering. Each of these solutions can store CO2 for thousands of years. This groundbreaking agreement complements Schneider Electric’s emissions reduction efforts. The company is committed to achieving net-zero emissions across its entire value chain by 2050 and net-zero operations by 2030 (compared to a 2017 baseline), including a 90 percent reduction in Scope 1 and Scope 2 CO2 emissions. The carbon removal credits awarded from these projects will offset a portion of the estimated residual emissions once the company achieves this target. By securing access to highly resilient carbon removal today, Schneider Electric is addressing future offsetting needs while pursuing a drastic emissions reduction and supporting the expansion of an industry critical to achieving the net-zero goal. https://www.se.com/ww/en/about-us/newsroom/news/press-releases/schneider-electric-and-climeworks-sign-31-000-ton-high-durability-carbon-removal-agreement-68ca97a412177ee69900a743

BIOTECH ENERGY provides a technology that addresses the global challenges of environmental protection, climate protection and food security in one. The biotech company extracts renewable energy from biotechnological processes, thereby reducing greenhouse gas emissions. At the same time, it promotes sustainable food production and processing in order to meet the global demand for food.

BIOTECH ENERGY liefert eine Technologie, die die globalen Herausforderungen Umweltschutz, Klimaschonung und Ernährungssicherheit in hilft zulösen. Das Biotech-Unternehmen extrahiert erneuerbare Energie aus biotechnologischen Prozessen und reduziert damit Treibhausgasemissionen. Gleichzeitig fördert sie nachhaltige Lebensmittelproduktion und -verarbeitung, um die weltweite Nachfrage nach Nahrungsmitteln zu decken.

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