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U.S. EPA proposed lifting amount of biofuels n 2021

June 30/2020

MOSCOW (MRC) -- The U.S. Environmental Protection Agency has proposed lifting the amount of biofuels that refiners must blend into their fuel next year to 20.17 billion gallons, from 20.09 billion this year, according to two sources familiar with the details of an agency draft proposal, said Hydrocarbonprocessing.

The 2021 volumes would include 15 billion gallons of conventional biofuels like ethanol and 5.17 billion gallons of advanced biofuels, according to the sources. The advanced biofuels mandate would include 670 million gallons of cellulosic biofuel, up from 590 million gallons in 2020, they said.

EPAТs proposal would also place the 2022 mandate for biodiesel at 2.76 billion gallons, from 2.43 billion in 2021, sources said. The agency sets biodiesel mandates two years ahead.

An EPA spokesperson declined to comment. The draft proposal is currently being reviewed by the White House.

The EPA is charged with setting biofuel and biodiesel blending requirements for the refining industry as part of the Renewable Fuel Standard, a regulation aimed to help farmers and reduce U.S. dependence on oil.

Under the RFS, refiners must blend billions of gallons of biofuels into the nationТs fuel pool or buy credits from those that do. Refiners say the obligations are too costly, while farmers benefit from an expanded market for their crops.

Small refineries can be exempted from biofuel blending if they prove that complying would cause them financial strain. The waivers have been a lightning rod for controversy, as the Trump administration has made wide use of the exemptions, angering biofuel advocates, who say they hurt ethanol demand.

As MRC informed earlier, 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. 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.

As MRC informed before, global oil consumption cut by up to a third in Q1 2020. 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 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim.  At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
Author:Anna Larionova
Tags:Bioplastiki, petroleum products, crude oil, PP, PE, petrochemistry.
Category:General News
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