Category Archives: Biodiesel

Indonesia’s B45 Biodiesel Transition: A Step Toward Green Energy

On September 12, Indonesia’s Energy Minister Bahlil Lahadalia announced a plan to implement a B45 biodiesel blend as a transitional step before adopting the B50 policy. This will increase the current mandatory palm oil blend from 40% (B40) to 45%, with a full transition to B50 planned for next year.

The move reflects Indonesia’s cautious yet flexible approach to promoting renewable energy and boosting domestic palm oil demand. The B45 phase aims to ensure policy stability while supporting the nation’s green energy goals. This strategy underscores Indonesia’s commitment to leveraging its palm oil resources to advance sustainable energy initiatives.

Japan and Brazil Set 2035 Target to Quadruple Global Sustainable Fuel Use

At the inaugural Ministerial Meeting on Sustainable Fuels held in Osaka, Japan and Brazil jointly announced an ambitious goal to quadruple global annual use of sustainable fuels by 2035, aiming to reduce dependence on fossil fuels.

The meeting, co-chaired by Japan’s Minister of Economy, Trade and Industry Yoji Muto, brought together representatives from more than 30 countries across Europe, Asia, and international organizations. Discussions centered on strategies to promote low-carbon fuels such as biofuels and hydrogen, highlighting their importance in global decarbonization.

Participants agreed on the need to expand the use of sustainable fuels in various sectors, including hybrid vehicles, while encouraging each country to adopt approaches tailored to its own circumstances. Muto stressed that achieving the 2035 target will require strong international cooperation and coordinated efforts between public and private sectors.

The outcome of the Osaka meeting is expected to be presented at the upcoming UN Climate Change Conference (COP30) in Brazil this November.

Southeast Asia Poised to Export Surplus Biofuels to Europe, Says Petronas Executive

A senior executive from Malaysia’s state energy company Petronas said Southeast Asia is set to export surplus biofuels to Europe and other markets as regional production capacity exceeds demand.

Speaking at the APPEC conference in Singapore, Ahmad Adly Alias, Petronas’ Vice President of Refining, Marketing and Trading, projected that Asia’s sustainable aviation fuel (SAF) capacity could reach 4 million tons annually by 2030.

He noted that Asia’s advantages lie in abundant feedstock, expanding production, and rising demand. Petronas is also developing a 650,000-ton bio-refinery in Johor with Italy’s Enilive, scheduled to start operations in late 2028.

Oil Majors Oppose EPA’s Imported Feedstock Credit Cuts

The U.S. Environmental Protection Agency has proposed cutting renewable diesel credits for fuels made with imported feedstocks, sparking strong opposition from oil majors. ExxonMobil, Chevron, and independent producers like Diamond Green Diesel argue the plan would disrupt supply chains and penalize facilities built specifically to process imported waste oils and fats. They warn it would raise costs and undermine existing investments, leaving coastal refineries at a disadvantage. In contrast, U.S. farmers and oilseed processors support the measure, hoping it boosts domestic soybean oil demand. A final decision on blending obligations for 2026–2027 is expected by the end of October.

Cosmo Oil to Launch Ship-to-Ship Biofuel Bunkering at Tokyo Port This Fall

Cosmo Oil announced on September 5 that it will launch a ship-to-ship (STS) biofuel bunkering project at Tokyo Port this fall in partnership with logistics and transport company NX Shoji. The initiative has been selected as part of the “Decarbonized Fuel Commercialization Promotion Project” led by the Tokyo Metropolitan Government and the Tokyo Environmental Public Service Corporation.

Under the plan, Cosmo will supply B24 fuel—a blend of A heavy oil and fatty acid methyl ester (FAME)—to vessels departing from or arriving at Tokyo Port. The project, backed by local government support, aims to accelerate the commercialization and adoption of marine biofuels, strengthen Tokyo Port’s role as a green hub, and promote the development of related industries in line with global shipping decarbonization efforts.

Canada Turns to Canola-Based Biodiesel Amid Extended Chinese Trade Ban

China’s decision to extend anti-dumping measures on Canadian canola until March 2026 has intensified pressure on Canada’s agriculture sector. In response, Prime Minister Mark Carney announced an incentive plan to boost domestic use of canola oil in biodiesel production, aiming to reduce reliance on exports and create new demand at home. While canola oil exports to China are limited, canola meal exports remain significant, with over 2 million tons shipped in 2024. At the same time, Canada achieved record sales to the U.S. last year, with combined canola oil and meal exports worth CAD 7.7 billion. By fostering biodiesel development and leveraging U.S. demand, Canada hopes to transform this trade challenge into an opportunity for energy transition and agricultural resilience.

White House Weighs Rule on Biofuel Exemptions and Refiners’ Obligations

The White House is reviewing a draft rule that could reshape the Renewable Fuel Standard by deciding whether to reallocate biofuel blending volumes recently exempted for small refineries.

The stakes are high: farmers depend on stable ethanol and biodiesel demand to support corn and soybean markets, while refiners seek relief from costly blending mandates. Last month, the EPA granted more than 140 exemptions from a backlog of applications, raising concerns among biofuel producers that overall blending targets would be undermined. The new proposal, covering 2023 and beyond, includes a preferred option and alternatives for redistributing those exempted gallons.

Its outcome will determine billions of gallons of U.S. biofuel demand and the balance between agricultural and oil industry interests.

U.S. Biofuel Imports Plunge to Decade Low After Tax Credit Shift

The U.S. Energy Information Administration (EIA) reported that imports of biodiesel and renewable diesel are set to fall to their lowest levels in more than a decade during the first half of 2025. This sharp decline follows recent changes to the federal fuel tax credit policy, which previously granted a $1 per gallon credit to both domestic production and imports. Under the revised framework, only domestically produced fuels are eligible, placing imports at a significant economic disadvantage.

According to EIA data, U.S. biodiesel imports averaged just 2,000 barrels per day in the first half of 2024, compared with 35,000 barrels per day in the same period a year earlier. Renewable diesel imports also plunged from 33,000 barrels per day to 5,000 barrels per day, marking the lowest levels since 2012. In addition to the tax credit changes, uncertainty around blending requirements and negative margins for blending have further dampened demand.

While consumption may rise in the coming months to comply with the Renewable Fuel Standard (RFS), EIA projects that U.S. net imports of biodiesel will remain depressed through 2025 and 2026, hitting their lowest point since 2012.

UK Proposes Anti-Dumping Duties on Chinese Biodiesel Imports

On August 22, the UK Trade Remedies Authority (TRA) published the Statement of Essential Facts (SEF) for its anti-dumping investigation into biodiesel imports from China. The investigation found that Chinese biodiesel was being dumped at unfairly low prices, causing material injury to UK producers. TRA also concluded that imposing anti-dumping measures would be in the economic interest of the UK.

The proposed measures include an ad valorem duty of 15.68% on exports from the Excellence Group and un-sampled cooperating exporters, while other exporters would face 54.64%. The investigation covers biodiesel fuels, particularly fatty acid methyl esters (FAME) and hydrotreated vegetable oils (HVO), whether in pure form or blends, commonly used for road transport in the UK.

Before a final decision is made, stakeholders are invited to submit comments or additional evidence by September 22 via TRA’s online Trade Remedies Service (TRS). The investigation was initiated on June 5, 2024, following an application from the Renewable Transport Fuel Association on behalf of UK producers. These proposed duties aim to mitigate injury to the domestic industry while maintaining fair competition, targeting imports sold below fair market value, and are subject to an economic interest assessment to ensure overall benefit to the UK economy.

EWABA Urges EU to Enforce Union Database to Curb Biofuel Fraud

The European Waste-based and Advanced Biofuels Association (EWABA) is pushing for the rapid adoption of the Union Database (UDB) to ensure the sustainability and traceability of biofuels across the EU. The database is designed to prevent fraudulent imports by recording every transaction from feedstock collection to final consumption. EWABA members have already completed two successful technical pilots involving biodiesel producers and waste collectors, confirming the system’s stability and reliability without major issues.

However, without binding targets and deadlines, the UDB risks limited effectiveness, leaving room for fraudulent practices that undermine fair competition and damage legitimate EU producers. While some member states have urged caution, the European Commission has emphasized that the system is already operational and requires mandatory use to achieve full traceability.

EWABA recommends an EU-wide coordinated plan to monitor participation, set a roadmap for improvements, and prioritize mandatory UDB implementation in mature liquid biofuel supply chains. Integration of national databases should not delay deployment, and coverage must extend to feedstock supply to prevent false data. EWABA stresses the urgency of clear implementation timelines, stronger enforcement, and immediate industry certainty to effectively combat fraud.