London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950
info@mrcplast.com

Our Clients

Order Informer

 
Home > News >
 

US lawmakers include biofuels aid in latest proposed relief bill

May 18/2020

MOSCOW (MRC) -- US lawmakers introduced a relief bill that would include aid to biofuel producers after demand for the fuel plummeted because of the coronavirus pandemic, causing mass shutdowns in the industry, reported Reuters.

The bill, introduced by House Democrats, would reimburse producers that suffered unexpected market losses because of the pandemic from January 1 through May 1. It is not clear whether the bill as proposed will be passed into law.

Eligible producers would receive 45 cents a gallon for fuel produced during the January-May period, according to the bill. If a facility was unable to make fuel during one or more months during the period, the producer would receive 45 cents multiplied by 50% of the number of gallons produced from year-ago levels.

The proposed assistance to the biofuels industry follows pleas by trade associations and lawmakers. As governments ordered residents to stay at home to curb the virus spread, demand for gasoline fell, dragging biofuels along with it.

US laws require that refiners blend biofuels into the nations fuel pool or buy credits from those that do.

Around half of the industrys capacity is offline, and about 150 ethanol facilities have idled or cut rates, according to the Renewable Fuels Association.

"The Renewable Fuel Reimbursement Program represents a potential lifeline for the 350,000 men and women whose jobs depend on a healthy and vibrant ethanol industry," said RFA President Geoff Cooper.

As MRC wrote previously, global oil consumption cut by up to a third. What happens next in the oil market depends on how quickly and completely the global economy emerges from lockdown, and whether the recessionary hit lingers through the rest of this year and into 2021.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

We remind that, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.


mrcplast.com
Author:Margaret Volkova
Tags:Europe, Bioplastiki, PP, PE, LLDPE, crude and gaz condensate, PP block copolymer, homopolymer PP, propylene, LDPE, HDPE, ethylene, BASF, Borealis, BP Plc, LyondellBasell, Sabic, Total Petrochemicals, Rossiya, USA.
Category:General News
|
| More

Leave a comment

MRC help

 


 All News   News subscribe