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NE US states low-carbon fuel program draws industry ire

December 25/2020

MOSCOW (MRC) -- US governors from Massachusetts and Connecticut announced their commitment to a low-carbon transportation program on Monday, but gasoline-related trade groups say it has flaws that will harm, rather than promote, use of fuels that produce fewer pollutants, according to Hydrocarbonprocessing.

Some oil refiners and energy trade groups have been more supportive this year of low-carbon fuel programs nationwide because the incentives can prove profitable for their industries.

The Transportation and Climate Initiative Program, or TCI-P, favored by the states would require large gasoline and diesel suppliers to purchase auctionable "allowances" for the pollution caused by combustion of fuels they sell in participating areas.

Trade groups, including the National Association of Truckstop Operators (NATSO) and the National Association of Convenience Stores (NACS), argue that TCI-P fails to effectively encourage investment in alternative fuels, and instead only penalizes fuel retailers that sell traditional fuel, according to a letter seen by Reuters addressed to a Massachusetts state official.

Another incentive program, California's Low Carbon Fuel Standard, allows refiners to generate tradable credits with production of lower carbon-intensive fuels.

"Market-oriented incentive policies have proven to drive private sector investment in clean fuels, but TCI's centralized, punitive structure will make businesses reluctant to embrace alternative fuels," said David Fialkov, counsel to NATSO.

Kathleen Theoharides, secretary for the executive office of energy and environmental affairs in Massachusetts, said that through the program, the market would encourage investment.

"This is certainly going to send a market signal that if they make investments in renewable blends, they can pass on a cheaper cost to consumers and outcompete their competitors," Theoharides said.

As MRC reported previously, earlier this month, NextChem, Maire Tecnimont Groups subsidiary for the development of projects and technologies for energy transition, and JFE Engineering Corporation, engineering and operative company of Japan Group JFE, have signed a commercial agreement which strengthens the cooperation between the companies. The agreement aims at developing in cooperation the model which considers waste as a resource to produce advanced fuels, hydrogen, fertilizers and low carbon chemical products.

We remind that in July 2020, Eni and NextChem, the Maire Tecnimont Groups subsidiary for green chemistry, strengthened their partnership one year after their first agreement. This partnership will conduct research for a new project to be developed in Taranto, in addition to ongoing engineering studies for a waste-to-hydrogen production plant at the Eni bio refinery in Venice, Porto Marghera, and for a waste-to-methanol production plant at the Eni refinery in Livorno.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, crude and gaz condensate, homopolymer PP, propylene, HDPE, ethylene, petrochemistry, Eni, Italy, Russia, USA, Japan.
Category:General News
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