Biofuels Digest Latest News for September 6th
The Latest News
Cepsa to supply SAF to Air Europa for monthly Madrid-Havana flight
In Spain, Cepsa and Air Europa have sealed an alliance whereby the energy company will supply 14.4 tons of sustainable aviation fuel (SAF) to the airline for one year to cover the first monthly Madrid-Havana flight. This is the first time that two companies in Spain have established a regular supply of this sustainable fuel for a specific air route.
During the period of collaboration between Cepsa and Air Europa, the emission of around 50 tons of CO2 will be avoided, equivalent to planting 575 trees.
The trips, which will feature 2% SAF in aircraft tanks, will serve as a test run ahead of the targets set by the European Union in its “ReFuelEU Aviation” legislative initiative, developed to boost sustainability in the airline industry. While there is no current obligation for airlines to use SAF, the new regulation requires European airlines to fly with 2% of sustainable fuel beginning in 2025, increasing to 6% in 2030 and 70% in 2050.
https://www.cepsa.com/en/press/air-europa-will-fly-to-cuba-with-cepsas-2g-biofuels
German biomethane trader’s bankruptcy leaves 50 public utilities in the lurch
In Germany, the German news agency DPA reports that BMP Greengas’ insolvency has left €200 million in undelivered biomethane contracts to 50 public utilities, leading the Association of Municipal Companies to ask for special permission to use fossil-based natural gas for power and heat production. Many utilities have been put at risk due to the lack of supplies. BMP Greengas filed for bankruptcy protection in August and hopes to restructure by October when it expects to return to the market.
https://www.marketscreener.com/quote/stock/ENBW-ENERGIE-BADEN-WURTTE-435762/news/Greengas-insolvency-municipal-association-demands-exemption-for-power-plants-44772017/
Advent Technologies Holdings secures significant order with Asian fuel cell integrator
In Massachusetts, Advent Technologies Holdings, Inc. announced a significant expansion order contract with a prominent fuel cell integrator operating in the Asian market. Under the terms of this agreement, Advent will provide its innovative eFuel-powered (“Serene”) fuel cell stacks to be incorporated in power applications within the leisure sector in the region.
The contract has a total initial value of $1.3 million. Deliveries are expected to commence in September 2023, with the supply chain projected to remain active throughout 2024 in accord with the customer’s specified timeline. The primary application of Advent’s fuel cell stacks is to serve as sustainable prime and back-up power sources in small cabins, working in conjunction with batteries.
The market for portable fuel cells, especially in the context of the leisure industry, is currently niche. However, because of the requirement to reduce carbon and other particulate emissions, this upswing in demand can be attributed to the increasing need for compact and portable fuel cell systems that are tailored to various leisure-related applications. The utilization of Advent’s Serene fuel cell stacks using liquid methanol as a hydrogen carrier fuel offers advantages in terms of transportation, logistics, and storage efficiency compared to gaseous hydrogen, thus enhancing operational safety.
Phillips 66 may invest in decarbonizing ADM’s coal-fired ethanol plants
In Minnesota, Bloomberg Law reports that as part of the joint venture negotiations between Phillips 66 and Archer Daniel Midland, Phillips may fund the decarbonization of ADM’s coal-fired ethanol plants, with the Decatur facility likely to be first, followed by Columbus or Cedar Rapids. ADM has been trying to spin out its wet-milled ethanol plants for several years but has been unsuccessful, so is exploring the possible JV with Phillips that could potentially include sustainable aviation fuel production.
https://news.bloomberglaw.com/environment-and-energy/phillips-66-in-talks-to-clean-up-adms-coal-fired-ethanol-plants
EIA data shows renewable diesel and other biofuels production reached 3B gallons per year in January
In Washington, Energy Information Administration data shows that in January 2023, U.S. production capacity of renewable diesel and other biofuels reached 3 billion gallons per year, surpassing U.S. biodiesel production capacity for the first time. Rising targets for state and federal renewable fuel programs and the renewal of biomass-based diesel tax credits are driving this growth in U.S. renewable diesel capacity.
The EIA began collecting data about U.S. capacity of renewable diesel and other biofuels in 2021. Since 2021, renewable diesel and other biofuels production capacity has more than tripled in the United States. Over the same period, biodiesel capacity has declined 13%. Renewable diesel is a fuel that is chemically equivalent to petroleum diesel and nearly identical in its performance characteristics. The same is not true of biodiesel, which is chemically different from petroleum diesel.
Nationwide, overall biofuels production capacity—which includes renewable diesel, biodiesel, ethanol, and other biofuels—reached 23 billion gallons per year (gal/y) in January 2023, a 6% increase in total production capacity from January 2022. Fuel ethanol accounted for 78% of U.S. biofuel production capacity, renewable diesel and other biofuels accounted for 13%, and biodiesel accounted for 9%.
JERA Americas & Uniper team with ConocoPhillips to develop low-carbon ammonia production in US Gulf Coast
In Texas, JERA Americas & Uniper announced a non-binding Heads of Agreement, together with ConocoPhillips, for an ammonia sale to Uniper and that moves their cooperation on development of a low-carbon ammonia production facility along the US Gulf Coast to the next phase. The announcement builds on a Memorandum of Understanding (MOU) the parties signed in September 2022 to assess the potential for developing ammonia production facilities in the region. The project would have an initial production capacity of 2 MTPA of low-carbon ammonia with potential for expansion in the future.
ConocoPhillips and JERA Americas (a wholly owned subsidiary of JERA Co., Inc.) plan to jointly develop the production facility project which would accelerate production and supply of low-carbon fuel to markets in the US, Europe, Japan, and greater Asia. The project will also include evaluation and development of carbon capture and sequestration (CCS) facilities. The proposed ammonia production facility would produce hydrogen and convert it into clean ammonia for transport to markets abroad with a target of achieving first commercial deliveries by the end of the decade.
https://www.businesswire.com/news/home/20230904687604/en/JERA-Americas-and-Uniper-Announce-Heads-of-Agreement-Signing-for-Low-Carbon-HydrogenAmmonia-Supply
NRDC analysis shows wind and solar alleviating need to burn wood in UK power stations
In the UK, analysis by NRDC shows that real renewables like wind and solar are already alleviating the need to burn millions of metric tons of wood in UK power stations.
In the first six months of 2023 (January-June), the use of genuine renewables avoided the burning of 32 million tons of wood in bioenergy power stations — mainly Drax.
Wind, solar, and hydro generated 44TWh of electricity, according to the National Grid. To produce the same amount of electricity from bioenergy would have required 32 million tons of wood pellets. That’s 3.5 times the UK’s current annual use of wood pellets, which stands at around 9 million tons. This would have required at least 501 shipments across the Atlantic (from Canada and the U.S. Southeast, where the UK obtains most of its wood pellets) – the largest single shipment to Drax power station was 63,907 tons.
Research: LUT University and the VTT develop new cellulose-based alternative packaging
In Finland, LUT University and the VTT Technical Research Centre of Finland are developing new environmentally friendly packaging solutions with 34 industrial partners. In the Films for Future (F3) research project, a cellulose-based alternative will replace the plastic films of cardboard packages. The program is funded by the European Regional Development Fund.
Packages with bio-based and bio-degradable films will make recycling easier, because they can be put straight into the cardboard recycling pile. Recyclability will also minimize the amount of waste and tackle littering.
The new film material will also meet the demands of the EU’s Packaging and Packaging Waste Directive, which deals with the shift to a circular economy and improving the quality of the environment.
Policy: UK Department for Transport to introduce SAF revenue support mechanism
In the UK, the Department for Transport (DfT) has committed to introducing a revenue certainty mechanism to support sustainable aviation fuel (SAF) production in the UK and boost its uptake, giving producers greater assurance about earnings from the SAF they produce.
This scheme, along with the introduction of a SAF mandate in 2025, will provide fuel security, grow the economy and help to create over 10,000 jobs by 2030, rising to 60,000 by 2050.
To do this, DfT will launch a consultation on the design and delivery of the scheme to bolster the development of SAF and drive further investment. The revenue certainty scheme, which is intended to be funded by industry, will give the aviation sector the launchpad to confidently invest in SAF and transition away from fossil fuel reliance.
https://www.gov.uk/government/news/new-measures-to-support-sustainable-aviation-fuel-industry
