Highlights
In November 2023, SGS INSPIRE published a summarizing fuel quality developments and emissions standards in 2023, as well as the changes we expect in 2024, based on announcements and potential regulatory and market movement.
A public took place in early December 2023 to present this report and its main findings.
We also published a global map of regulatory limits and the actual content of in gasoline.
Also in November, SGS INSPIRE launched the of its Energy Talks podcast ‘Synthetic and sustainable aviation fuel, from targets to reality,’ featuring Laurent Donceel, Deputy Managing Director of European aviation industry federation Airlines for Europe, and Klaas Pel, Global Head of Aviation Regulation at Neste.
The November 2023 edition of the Biofuels International magazine featured an article, , globally authored by the SGS INSPIRE team, on developments related to sustainable aviation fuels in the last decade.
The SGS Worldwide Fuel Survey team has developed a new report on stochastic preignition (SPI), also known as low-speed pre-ignition (LSPI), which is a limiting factor in modern, turbocharged gasoline direct injection technology. The automotive industry has found that the following parameters increase the likelihood of SPI events occurring:
•Higher aromatics
•Distillation final boiling point
•Fuel additives, like MMT, anilines, detergents
The dedicated report includes deep data analysis from 1422 samples from the Winter 2019/2020 fuel survey period until Summer 2023. All samples are coming from Europe. It includes a comparison with the national specifications, a trend analysis, and analysis by season, grade and country. The report is available for purchase.
Upcoming
Global map on ethanol regulatory limits
Specifications database
In the past two months, SGS INSPIRE added the following fuel specifications to the INSPIRE Global database:
•Pakistan’s 10 mg/kg sulfur gasoline (RON 91 Euro 5 gasoline, RON 95 Euro 5 gasoline, RON 97 Euro 5 gasoline, high speed diesel Euro 5) and diesel specifications
•Estonia’s alkylate gasoline specification
The diesel and gasoline have been harmonized according to their main characteristic properties. SGS INSPIRE is now working to merge ethanol blend into gasoline and biodiesel blend into diesel fuel types to optimize the current classification.
Europe and Eurasia
On October 31, 2023, the last few proposed legislations of the EU’s Fit for 55 package came into force:
•Directive EU 2023/2413 amending Directive (EU) 2018/2001, Regulation (EU) 2018/1999 and Directive 98/70/EC as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652 (also referred to as )
•Regulation (EU) 2023/2405 on ensuring a level playing field for sustainable air transport ()
The only remaining proposed legislation within the Fit for 55 legislation which must be finalized is the Revision of the Energy Taxation Directive. The two co-legislators should find agreement on this in 2024.
The new paraffinic diesel , Automotive fuels – Paraffinic diesel fuel from synthesis or hydrotreatment – Requirements and test methods (EN 15940:2023), approved by the European Committee for Standardization (CEN) in May 2023, is being implemented by national standard bodies in the 27 EU member states and in non-EU countries such as Norway, North Macedonia, Serbia, Switzerland, Türkiye and the UK.
Several products were introduced to the European market, such as the E10 gasoline grade (conventional gasoline containing up to 10% of ethanol) in Italy and HVO 100 (100% hydrogenated vegetable oil) in Ireland and Italy. It is worth highlighting that the E20 gasoline grade is available to a limited vehicle fleet, at a fuel station in Mannheim, Germany, as part of a trial.
Among the ethanol producers in Europe, Clariant has announced the of the new plant in Podari (Romania), following its failure to achieve targets. CropEnergies on the other hand, acquired EthaTec GmbH, another producer of ethanol from food waste.
In the UK, the first transatlantic flight to New York from London Heathrow airport fueled by was completed successfully. This was one of the 2023 commitments in the UK Jet Zero Strategy, set by the UK Department for Transport and now fulfilled by Virgin Atlantic and other partners.
SGS INSPIRE published overviews of vehicles for the and . Both reports introduced information on the vehicle emissions standards of each country, including updated fiscal policies, the current situation in vehicle markets/fleets, and a projection for further development.
, and the are moving forward in developing hydrogen as a fuel with various hydrogen projects underway.
We published an overview of diesel quality in Turkmenistan. The country’s refineries are being modernized, with plans to start producing low-sulfur diesel – but without an indicated time frame. In Turkmenistan, the state-owned Turkmenbashi complex of oil refineries (TCOR) began production of. In Belarus, is the market leader, with 728 filling stations in the country. During the first ten months of 2023, 34.4% of Russia's total export supplies of were redirected to non-European countries.
Upcoming
France: overview of gasoline report
Turkmenistan: overview of vehicles
Serbia: overview of diesel quality
Serbia: overview of vehicles
Serbia: overview of gasoline quality
North America
In October 2023, a group of U.S. senators reintroduced the Adopt Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation , which aims to modify the approved method for calculating the carbon reduction of fuels. Once adopted, this would likely increase the demand for low-carbon ethanol.
In November 2023, a group of U.S. House representatives introduced the , a piece of legislation aimed at promoting the development and domestic production of sustainable aviation fuels (SAF). This bill is designed to create new markets for biofuels derived from U.S. crops, and to endorse the use of the GREET model for measuring life cycle emission reductions. SGS INSPIRE follows this legislative process in the U.S.
In the same month, Southwest Airlines announced an for Sustainable Aviation Fuel (SAF) over a 20-year term. This agreement represents a nearly 18-fold increase over Southwest’s previous SAF purchase commitments.
Electric vehicles in the U.S. reached . Data from Q3 2023 indicates that the combined sales of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs) have reached a record market share in the LDV segment.
In December 2023, Canada's government announced the , with regulations mandating that by 2035 all sales of new light-duty vehicles (LDVs) must be zero-emission vehicles (ZEVs). One year after its implementation, the U.S. Inflation Reduction Act (IRA) has already played a crucial role in promoting second-generation biofuels and driving research and development efforts to convert non-food biomass feedstocks into sustainable fuels. SGS INSPIRE published the report . Key milestones include:
•69 announcements for new biofuel production facilities in the U.S. following the approval of the IRA
•Renewable diesel (RD) production of 35 million barrels (6,520 million liters), marking a significant 66% increase compared to 2021. RD production capacity in the U.S. is expected to grow by approximately 125% by 2025
•U.S. airlines have announced 18 Sustainable Aviation Fuel (SAF) offtake agreements, totaling over 16 billion liters
Upcoming
Overview of electric vehicles in the U.S.
Overview of non-road diesel in the U.S.
Latin America and the Caribbean
The Mexico’s decreased significantly during the last decade, which consequently increased the import rate. SGS INSPIRE estimates that in 2024 diesel production will represent only 40% of the diesel demand in Mexico.
In 2023, Brazil’s reached record export levels for commercially relevant volumes of biodiesel. Brazil's biodiesel is expected to increase in 2024 compared to 2023. In December 2023, the National Energy Policy Council of Brazil approved an for the blending of biodiesel in diesel from March 2024. At the same time, the Brazilian government suspended biodiesel imports and approved the creation of a working group to study the technical feasibility of increasing the anhydrous ethanol content mandate on gasoline.
Ecuador's Ministry of Energy and Mines presented a sustainable mobility project that plans to implement a mass public transport fleet based on . This also has the potential for producing sustainable aviation fuel or synthetic kerosene for air transport.
As of January 2024, electric vehicles purchased outside of Brazil will once again be gradually subjected to in the country. The taxation will depend on the level of electrification and the production processes of each model, among other factors.
Mexico's increased in 2022 and will continue increasing due to the delay in full operations at the Olmeca Refinery until 2025, and the increase of domestic energy demand.
Curaçao’s Council of Ministers approved for the Quality of Regulated Fuels, following the recommendations of . The new diesel and gasoline specifications include a reduction in the maximum limit for sulfur content, limits for density, limits for oxidation stability and a reduction in maximum limits for the content of hydrocarbons, among others.
Upcoming
Overview of vehicles in Brazil
Overview of bio-based gasoline in Paraguay
Asia and Oceania
Members of the Association of Asia Pacific Airlines have agreed to use a blend of and 95% v/v conventional aviation fuels from 2030, which involves 15 flag carriers in Asia.
In September 2023, the Chinese government started implementing the and M100 additives used in motor vehicles. The Chinese government published a in October 2023, which plans to promote electric power, SAF and other green energies in aviation. In November, SGS INSPIRE discovered that the presence of low-blending-ratio methanol fuels in China is in decline. Moreover, many local governments have removed the low methanol blend specifications. SGS INSPIRE published an .
In August 2023, the Indian government issued a notification that introduced a . This notification also highlighted the detailed methodology for measurement, reporting, monitoring, on-site verification and certification of green hydrogen. To help India reduce liquefied natural gas imports and achieve its greenhouse gas emission reduction targets, the Indian government set a from fiscal year 2025-26.
In October 2023, Indonesia's national airline conducted its inaugural with a 2.4% v/v blend of bio-based fuel. This marked the country's maiden SAF voyage. In October 2023, Japan released a preliminary version of partial revisions to the , valid as of January 2024.
Kuwait’s government is targeting the utilization of used cooking oil (UCO) as an alternative fuel feedstock. In November 2023, a decision was made to .
In November 2023, the inaugural engineering run of the was successfully conducted in Malaysia. This was designed by a Chinese state-owned institute.
The New Zealand government released in October 2023, which include various implementation timelines for different types of vehicles.
In July 2023, the government of for petroleum products, importers, distributors and retail operators. The government now allows foreign companies to import and distribute fuels in the country. In August, Chinese state-owned company Sinopec opened their first fuel station in Sri Lanka.
In September 2023, the Thai government declared the until the end of 2023, due to elevated crude palm oil (CPO) prices.
Upcoming
Overview of diesel quality in Philippines
Overview of vehicles in Philippines
Overview of vehicles in Singapore
Overview of gasoline quality in Thailand
Overview of diesel quality in Thailand
Overview of gasoline quality in Vietnam
Overview of diesel quality in Vietnam
Africa
In November 2023, Scania West Africa, TotalEnergies and Agence Nationale d’Appui au Développement Rural (ANADER) a biodiesel pilot in the Ivory Coast's capital city, Abidjan. The local transport company, SOTRA, will use biodiesel produced from local feedstock such as cocoa, rubber and agricultural waste. Buses powered by have also been rolled out in Koumassi, near Abidjan. This project was a collaboration between Iveco, an Italian vehicle manufacturer and SOTRA. These projects are being delivered as part of the Ivory Coast’s government’s Sustainable Transport project.
In November 2023, the Mauritanian Minister of Petroleum, Mines and Energy a strategic plan for the country to become a renewable energy hub and for the expansion of gas production. The national hydrogen roadmap highlights the potential for a total production of renewable hydrogen up to 20.1 million tonnes per year. Hydrogen policies are expected to be approved in the first quarter of 2024.
In November 2023, the Danish company, GreenGo Energy announced to produce up to 4 million tonnes of renewable hydrogen and 18 million tonnes of renewable ammonia per year in Mauritania from 2035.
Upcoming
Overview of vehicles in South Africa
Overview of gasoline in Egypt