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NNFCC News Review: Biofuels Issue 144, March 2024

Category: biofuels
Published: 28/03/2024
Author: NNFCC
Each month we review the latest news and select key announcements and commentary from across the biofuels sector.

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Foreword 

Due to a combination of factors, Argent Energy is looking to close its biodiesel-producing facility in Motherwell, Scotland. The company has "made the difficult decision" due to issues including the competition it faces from imported low cost Chinese biodiesel which currently effectively faces no import tariff into the UK (where subsequently blended in the UK). They claim that the domestic producers have seen their market share reduced due to post-Brexit restrictions on importing Category 1 tallow from the EU. SNP MP for Motherwell and Wishaw, Marion Fellows, anticipates that there will be "huge knock-on effects" for the local economy if the closure went ahead.

Amid anticipation of the government’s publication of it response to the second SAF mandate consultation, which is expected to be published this spring, and the revenue certainty mechanism this is expected to deliver, several companies have advanced their plans for construction of new SAF manufacturing plants. Willis Sustainable Fuels (UK), following their award of £4.72 million grant from the Department for Transport’s Advanced Fuels fund competition, have received approval from the Redcar and Cleveland Borough Council for their Carbonshift PtL SAF refinery plant at Teesworks in Tees Valley. The plant is expected to produce 20 million litres of Sustainable Aviation Fuel (SAF) a year and has the potential to cut CO2 emissions by up to 85% when compared with traditional petrol-based aviation fuel. LanzaTech has also received permission from local authorities to build a 100 million litre per year SAF plant in Port Talbot, Wales, that could displace up to 1% of UK jet fuel demand. The firm has confirmed that the CO2-to-ethanol-to-jet facility will initiate production within 2026, with construction potentially set to begin later this year pending a Final Investment Decision (FID). The UK Government has set a target of having a minimum of five commercial-scale SAF plants under construction by 2025...

Other news this month includes:

Policy

  • EU biofuel policy, stable after two decades of fluctuation?
  • UAE commits to reducing carbon emissions under new national policy on biofuels

Markets

  • £6million equity raise for Renovare Fuels
  • Trafigura to acquire Greenergy
  • More...

Research and Development

  • University of Sheffield boosts development of sustainable aviation fuel
  • Scientists to tackle challenges of converting rice straw into next gen biofuels

Bioethanol

  • Ireland ethanol blend at new record, HVO demand dips
  • Ethanol producer CMAA launches new joint venture plant
  • Nissan starts trial of stationary power generation system fuelled by bio-ethanol

Biodiesel

  • Argent Energy to consider closing Scottish facility
  • Biodiesel plant closure would be ‘devastating’ for Lanarkshire
  • More...

Aviation and Shipping Biofuel

  • Plans green-lit for multi-million-pound sustainable aviation fuel plant at Teesworks
  • LanzaTech secures planning permission for Welsh SAF plant
  • More... 

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