Indonesian Chandra Asri to build chlor-alkali, EDC unit

Spanish Market: Chemicals
18/06/25

Indonesian petrochemicals and energy firm Chandra Asri has signed an agreement with sovereign wealth funds Danantara and the Indonesia Investment Authority to jointly develop a chlor-alkali ethylene dichloride (CA-EDC) plant in Cilegon city, Banten.

Danantara and INA will jointly invest about $800mn in the project. The plant aims to boost Indonesia's production of caustic soda and EDC to strengthen industrial downstream self-sufficiency and reduce import dependency of inputs for industries such as water treatment, soap and detergent manufacturing, alumina refining and nickel processing.

In a first phase, Chandra Asri will build a plant with a production capacity of 400,000 t/yr of solid caustic soda (equivalent to 827,000 t/yr in liquid form) and 500,000 t/yr of EDC. A potential second phase could expand production and introduce chlorine derivatives, depending on the outcome of ongoing feasibility studies.

"The chemical sector underpins key value chains — from manufacturing to energy transition — especially in nickel processing and alumina refining," Danantara chief investment officer Pandu Sjahrir said. "This investment strengthens national resilience by reducing import dependence on essential products like caustic soda and EDC," he added.

The joint venture is expected to generate EDC export earnings of up to 5 trillion rupiah/yr ($306mn) and trim Indonesia's import bill for caustic soda by Rp4.9 trillion/yr.

By Haridas

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16/06/25

US biofuel feed prices jump on blending plan

Houston, 16 June (Argus) — Prices for US biofuel feedstocks have risen sharply since the US Environmental Protection Agency (EPA) late last week proposed ambitious biofuel blending targets for the next two years along with lower incentives for using foreign feedstocks. Futures prices for soybean oil, the most widely used input for biodiesel production, have led the feedstock gains as the market prices in potentially higher demand. The Nymex front-month contract for soybean oil rose by 6.3pc on 13 June and by an additional 7.8pc on Monday to 54.6¢/lb, the highest since October 2023. The proposed targets , released on 13 June, would mandate that an equivalent amount of 5.61bn USG of biomass-based diesel be blended in 2026 and 5.86bn USG in 2027. The proposed volumes exceeded most market expectations and industry requests of 5.25bn USG and were significantly higher than the current-year mandate of 3.35bn USG, fueling expectations for increased biofuel feedstocks demand. In addition, domestic feedstocks may face reduced competition from foreign feedstocks under the proposal, which would cut federal Renewable Identification Number (RIN) credit generation by 50pc for imported biofuels or fuels produced from foreign feedstocks. Biomass-based diesel D4 RINs for the current year rallied Monday morning, trading between 127-132¢/RIN, up significantly from Friday's close of 109¢/RIN. Used cooking oil (UCO) railcar volumes to the US Gulf coast were reported trading at 59¢/lb early Monday morning, a 3.5pc jump from Friday's closing price of 57¢/lb, with additional selling interest emerging in the 60s¢/lb. UCO offers for volumes into California were noted in the high 60s¢/lb, up from last week's close in the high 50s¢/lb. Distillers corn oil (DCO) fob truck volumes in the Midwest traded at 61¢/lb on Monday morning, reflecting a 9pc jump from Friday's close of 56¢/lb. Poultry fat fob truck volumes in the southeast were offered in the low 50s¢/lb, up from last week's closing levels in the low 40s¢/lb, but buying interest has not emerged at those levels. Activity for other renewable feedstocks remains limited for now, but market participants anticipate increased trading later this week, driven by the recent proposal and gains in futures markets. The EPA proposal is currently in an open comment period, with a public hearing scheduled for 8 July. By Payne Williams and Jamuna Gautam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EPA proposes record US biofuel mandates: Update

13/06/25

EPA proposes record US biofuel mandates: Update

Updates with new pricing, reactions throughout. New York, 13 June (Argus) — President Donald Trump's administration today proposed requiring record biofuel blending into the US fuel supply over the next two years, including unexpectedly strong quotas for biomass-based diesel. The US Environmental Protection Agency (EPA) proposal, which still must be finalized, projects oil refiners will need to blend 5.61bn USG of biomass-based diesel to comply with requirements in 2026 and 5.86bn USG in 2027. Those estimates — while uncertain — would be a 67pc increase in 2026 and a 75pc increase in 2027 from this year's 3.35bn USG requirement, above what most industry groups had sought. The proposal alone is likely to boost biofuel production, which has been down to start the year as biorefineries have struggled to grapple with uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and higher import tariffs. The National Oilseed Processors Association said hiking the biomass-based diesel mandate to the proposed levels would bring "idled capacity back online" and spur "additional investments" in the biofuel supply chain. The EPA proposal also would halve Renewable Identification Number (RIN) credits generated from foreign biofuels and biofuels produced from foreign feedstocks, a major change that could increase US crop demand and hurt renewable diesel plants that source many of their inputs from abroad. US farm groups have lamented refiners' rising use of Chinese used cooking oil and Brazilian tallow to make renewable diesel, and EPA's proposal if finalized would sharply reduce the incentive to do so. Biofuel imports from producers with major refineries abroad, notably including Neste, would also be far less attractive. The proposal asks for comment, however, on a less restrictive policy that would only treat fuels and feedstocks from "a subset of countries" differently. And EPA still expects a substantial role for imported product regardless, estimating in a regulatory impact analysis that domestic fuels from domestic feedstocks will make up about 62pc of biomass-based diesel supply next year. The Renewable Fuel Standard program requires US oil refiners and importers to blend biofuels into the conventional fuel supply or buy credits from those who do. One USG of corn ethanol generates one RIN, but more energy-dense fuels like renewable diesel can earn more. In total, the rule would require 24.02bn RINs to be retired next year and 24.46bn RINs in 2027. That includes a specific 7.12bn RIN mandate for biomass-based diesel in 2026 and 7.5bn in 2027, and an implied mandate for corn ethanol flat from prior years at 15bn RINs. EPA currently sets biomass-based diesel mandates in physical gallons but is proposing a change to align with how targets for other program categories work. US soybean oil futures surged following the release of the EPA proposal, closing at their highest price in more than four weeks, and RIN credits rallied similarly on bullish expectations for higher biofuel demand and domestic feedstock prices. D4 biomass-diesel credits traded as high as 117.75¢/RIN, up from a 102.5¢/RIN settle on Thursday, while D6 conventional credits traded as high as 110¢/RIN. Bids for both retreated later in the session while prices still closed the day higher. Proposed targets are less aspirational for the cellulosic biofuel category, where biogas generates most credits. EPA proposes lowering the 2025 mandate to 1.19bn RINs, down from from 1.38bn RINs previously required, with 2026 and 2027 targets proposed at 1.30bn RINs and 1.36bn RINs, respectively. In a separate final rule today, EPA cut the 2024 cellulosic mandate to 1.01bn RINs from 1.09bn previously required, a smaller cut than initially proposed, and made available special "waiver" credits refiners can purchase at a fixed price to comply. Small refinery exemptions The proposal includes little clarity on EPA's future policy around program exemptions, which small refiners can request if they claim blend mandates will cause them disproportionate economic hardship. EPA predicted Friday that exemptions for the 2026 and 2027 compliance years could total anywhere from zero to 18bn USG of gasoline and diesel and provided no clues as to how it will weigh whether individual refiners, if any, deserve program waivers. The rule does suggest EPA plans to continue a policy from past administrations of estimating future exempted volumes when calculating the percentage of biofuels individual refiners must blend in the future, which would effectively require those with obligations to shoulder more of the burden to meet high-level 2026 and 2027 targets. Notably though, the proposal says little about how EPA is weighing a backlog of more than a hundred requests for exemptions stretching from 2016 to 2025. An industry official briefed on Friday ahead of the rule's release said Trump administration officials were "coy" about their plans for the backlog. Many of these refiners had already submitted RINs to comply with old mandates and could push for some type of compensation if granted retroactive waivers, making this part of the program especially hard to implement. And EPA would invite even more legal scrutiny if it agreed to biofuel groups' lobbying to "reallocate" newly exempted volumes from many years prior into future standards. EPA said it plans to "communicate our policy regarding [exemption] petitions going forward before finalization of this rule". Industry groups expect the agency will try to conclude the rule-making before November. The proposed mandates for 2026-2027 will have to go through the typical public comment process and could be changed as regulators weigh new data on biofuel production and food and fuel prices. Once the program updates are finalized, lawsuits are inevitable. A federal court is still weighing the legality of past mandates, and the Supreme Court is set to rule this month on the proper court venue for litigating small refinery exemption disputes. Environmentalists are likely to probe the agency's ultimate assessment of costs and benefits, including the climate costs of encouraging crop-based fuels. Oil companies could also have a range of complaints, from the record-high mandates to the creative limits on foreign feedstocks. American Fuel and Petrochemical Manufacturers senior vice president Geoff Moody noted that EPA was months behind a statutory deadline for setting 2026 mandates and said it would "strongly oppose any reallocation of small refinery exemptions" if finalized. By Cole Martin and Matthew Cope Proposed 2026-2027 renewable volume obligations bn RINs Fuel type 2026 2027 Cellulosic biofuel 1.30 1.36 Biomass-based diesel 7.12 7.50 Advanced biofuel 9.02 9.46 Total renewable fuel 24.02 24.46 Implied ethanol mandate 15 15 — EPA Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK ETS emissions fell by 11pc on the year in 2024

12/06/25

UK ETS emissions fell by 11pc on the year in 2024

Seville, 12 June (Argus) — Emissions in sectors covered by the UK emissions trading scheme (ETS) declined by 11.5pc year on year in 2024, data published by the UK ETS authority show, slowing their decline slightly from the previous year. Stationary installations covered by the UK ETS emitted 76.7mn t of CO2 equivalent (CO2e), down by 12.9pc from 2023, the data show. But this was offset somewhat by a 2pc increase in aviation emissions to 8.99mn t CO2e. Overall UK ETS emissions now have declined for two consecutive years, having fallen by 12.5pc in 2023. Emissions under the scheme rose by 2.5pc in 2022, as a strong rebound in aviation activity following earlier Covid-19 restrictions outweighed declining stationary emissions. Stationary emissions have decreased in every year since the scheme launched in 2021. The majority of the decline in stationary emissions under the UK ETS last year took place in the power sector, where emissions dropped by 18.2pc to 30.6mn t CO2e. The country's last coal-fired plant, Ratcliffe-on-Soar, closed in September last year. And the share of gas-fired output in the generation mix dipped as wind, solar and biomass production and electricity imports edged higher. Industrial emissions also declined, by 8.9pc to 46.1mn t CO2e. The iron and steel sector posted the largest relative drop of 30pc to 6.54mn t CO2e. Emissions from crude extraction fell by 6.4pc to 6.0mn t CO2e, while emissions from gas extraction, manufacture and distribution activities decreased by 8.9pc to 5.3mn t CO2e. The chemicals sector emitted 2.28mn t CO2e, down by 5.2pc on the year. A total of 43 installations were marked as having surrendered fewer carbon allowances than their cumulative emissions since the launch of the UK ETS, as of 1 May. A further two installations failed to report their emissions by the deadline. "Appropriate enforcement action" will be taken against operators that fail to surrender the required allowances, the UK ETS authority said. Overall greenhouse gas emissions across the UK economy dropped by a smaller 4pc last year, data published by the government in March show. This decline also was driven principally by lower gas and coal use in the power and industry sectors, with smaller declines in transport and agriculture, not covered by the UK ETS, and an increase in buildings emissions, also out of the scheme's scope. Emissions under the EU ETS in 2024 dipped by a projected 4.5pc from a year earlier, based on preliminary data published by the European Commission in April. The UK and EU last month announced that they will "work towards" linking the two systems together. By Victoria Hatherick UK ETS emissions mn t CO2e Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India lowers edible oil import duties to 10pc

02/06/25

India lowers edible oil import duties to 10pc

Singapore, 2 June (Argus) — India has lowered import duties on crude edible oils by 10pc effective from 31 May, according to a statement published on the ministry of finance website on 30 May. Customs duties applied to crude palm, crude soybean, and crude sunflower oils were reduced to 10pc from an earlier 20pc. These oils now face effective import duties of 16.5pc compared to 27.5pc previously, including a separate agriculture infrastructure and development cess and a social welfare cess. But import duties for refined versions of the oils were unchanged at 32.5pc. The total effective import tax rate on refined palm, soybean, and sunflower oils remains at 35.75pc. Keeping duties on imported refined oils unchanged is expected to provide relief to the domestic refining industry because it will likely raise the rate of vegetable oil refining in the country, according to Anilkumar Bagani, commodity research head of Indian vegetable oil brokerage Sunvin Group. The move is likely to drive an increase in crude vegetable oil imports, displacing imports of refined oils, Bagani said. This could lower end product vegetable oil prices in India in the short term. But the increase in Indian demand could also cause crude vegetable oil prices to move higher at their respective origins, which could counteract the government's initial objective of lowering prices for the end consumer, he added. By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US tariff ruling could revive biofuel feedstock trade

29/05/25

US tariff ruling could revive biofuel feedstock trade

New York, 29 May (Argus) — A sweeping court ruling Wednesday against President Donald Trump's emergency tariffs could make foreign biofuel feedstock imports, which have wavered this year, more attractive. A three-judge panel on the US Court of International Trade struck down tariffs Trump set under a little-used economic emergency law, including bilateral tariffs on China, "reciprocal" tariffs on nearly every country, and levies on some Canadian and Mexican products to combat drug trafficking. The tariffs upended global trade flows, including by making recently fast-rising inputs for renewable diesel production like Chinese used cooking oil and Brazilian beef tallow more expensive. The trade court gave the government ten days to comply, though the Trump administration has asked for a pause on the ruling and pledged to appeal. Tariffs enacted under other laws, including sectoral tariffs on steel and aluminum imports, would remain intact. Trump could also still eye different authorities to revive his broader tariffs, which he sees as a crucial negotiating tool to counter what he has called unfair trade practices abroad. But the court's decision, if it holds, would still be a significant barrier to Trump's efforts to rewire global trade. The US could even be required to offer refunds of emergency tariffs that have already been paid. US levies on Chinese products imposed under the emergency law at one point reached 145pc, raising fears of a protracted trade war and global economic slowdown. Fewer options for foreign biofuel feedstocks because of tariffs also helped increase the price of domestic alternatives like US soybean oil, where futures were down 2pc in early trading Thursday, and compounded the pain for refiners struggling with major changes to biofuel tax credits. Biomass-based diesel production in the US has been down sharply this year because of all the policy shifts. Formerly fast-rising flow Before this year, renewable diesel and sustainable aviation fuel producers along the US Gulf and west coasts were expanding capacity and increasingly looking abroad for inputs. Waste feedstocks like used cooking oil and beef tallow are considered lower-carbon feedstocks than crops and thus generally fetch larger government subsidies — even if sourced from abroad. The US imported nearly 5.4bn lbs of used cooking oil in 2024, a record-high and with more than half that total coming from China. But Trump's tariffs sharply reduced the incentive to import foreign feedstocks. Duties on Chinese products have varied significantly but were last at 30pc before the court ruling, adding to existing 15.5pc charges on Chinese used cooking oil. Reciprocal tariffs of 10pc on nearly every country added new costs to Australian and Brazilian tallow too. US import data is only available through March, before Trump imposed his most far-reaching tariffs as part of an April "Liberation Day" announcement . But global feedstock traders more recently have said that the tariffs — and the unpredictability of future policy — have made global inputs riskier. While some tariffs are eligible for duty drawbacks, creating options for biofuel producers targeting foreign markets, US imports of Chinese used cooking oil were down 27pc in the first quarter compared to the same period last year. Other barriers remain Even if the court ruling holds, other policies could deter US biorefineries from relying too heavily on foreign feedstocks. For one, current government guidance around a new US clean fuel tax credit prevents refiners from claiming any subsidy for road fuels derived from foreign used cooking oil . Those rules also pin the carbon intensity of canola-based fuels as too high to claim any subsidy, choking off interest in Canadian canola oil imports that had been rising significantly before this year. And farm groups, worried that foreign feedstocks are hurting demand for US crops, are lobbying regulators and lawmakers for more severe limits. A party-line budget bill that passed the House this month would restrict clean fuel tax credit eligibility to fuels derived from North American feedstocks, a win for US oilseed crushers but a major blow to refiners reliant on foreign tallow. While that bill still needs Senate approval and changes would only kick in next year, the proposal is a clear signal from Republicans that refiners should start looking closer to home for renewable diesel inputs. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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