Bloomberg reported that some US fuel makers are overhauling facilities so they can produce so-called sustainable aviation fuel (SAF) amid slumping returns from renewable diesel. Valero Energy Corp, Philips 66 and Calumet Specialty Products Partners are among producers that have retrofitted renewable diesel plants to make SAF. Although SAF is currently a tiny niche in the global market for jet fuel, it is seen as a key to reducing airline emissions in the coming decade. The challenge is that it involves costly logistics and a more rigorous refining process relative to green diesel. The process yields small volumes of SAF but higher output of low value by-products like naphtha and propane.
According to Bloomberg also, Mewah International has confirmed the completion of its palm refinery project in Dumai, Indonesia. In a filing with the Singapore Stock Exchange, Mewah said that construction works have concluded, trial production is underway and the first export shipment slated for this month. The new refinery has an installed capacity of nearly 3,500 tonnes per day. The project, which was budged at US$95mil, was completed within its financial parameters.
S&P Global Platts reported that soybean meal export prices in Argentina have dropped to a discount to CBOT futures for the first time in 2 years amid a local soybean crop, crush recovery and weak demand. Platts assessed the FOB Upriver basis for August dates at minus US$2/st to CBOT August contract 27 June, a discount not seen for a front-month loading since 6 September 2022. The Argentine cargo market has been pressured by some weakness in export demand after months of high price levels compared with Brazil. Brazilian suppliers have been increasing their presence in the market at lower prices amid a loss of value in the local currency.
Recently, Apical Group held a groundbreaking ceremony at its PT Padang Raya Cakrawala (PT PRC) facility to mark the construction of a new palm refinery and fractionation plant for cooking oil. The new plants, which are located in Padang City, West Sumatra, are scheduled to be completed by 2025F. The new refinery will have a capacity of to process up to 3,500 tonnes per day while the cooking oil fractionation plant will have a capacity of 3,000 tonnes per day. Currently, PT PRC has a refining capacity of 1.2mil tonnes per year, which will double to 2.4mil tonnes upon the completion of the new refinery.
Biofuel International reported that approval from the US EPA for rapeseed oil to be used as feedstock in biofuel production has led to a sharp rise in import volumes. According to data published by the USDA, the upcoming season’s import demand is likely to reach 3.7mil tonnes compared to less than 1.8mil tonnes in 2018/2019.
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