SGS INSPIRE Newsletter May 2024

We would like to introduce the latest addition to SGS INSPIRE's range of services: . Our 180 minutes expert-led sessions cover production processes, material compatibility, risk management, analysis of case studies and much more. They can be conducted online or in person and include interactive Q&A sessions. Reach out to us today to schedule a training session for your staff.

We are excited to announce the release of the highly anticipated results of our . The SGS Worldwide Fuel Survey (WWFS) is a comprehensive compilation of tested samples gathered at petrol stations across the globe.

This year's survey covers 92 countries and territories in Europe, Eurasia, Latin America, Asia Pacific, Africa, and North America. Our expert SGS inspectors gathered and shipped 710 gasoline and 463 diesel samples from October 2023 to March 2024 for thorough testing and analysis. At WWFS, we are also proud to present our second Worldwide Advanced Biofuel Survey, offering an in-depth analysis of 25 samples of HVO at petrol stations across Belgium, Denmark, Finland, Germany, Italy, Netherlands, Norway, Spain, Sweden, and the United States.

For more information on the Winter 2023/2024 Worldwide Fuel Survey and Worldwide Advanced Biofuel Survey, don't hesitate to contact Mrs. Anke Konzack at or visit .

We are also pleased to inform you that SGS has been accepted as a member of the . The RLCF is a voluntary alliance launched in 2022 and coordinated by the European Commission. The SGS INSPIRE team will manage the alliance membership and involve SGS experts.

On May 22, 2024, the SGS INSPIRE Team presented the findings of a new report on hydrotreated vegetable oil (HVO) supply and demand in selected European countries, including a demand projection for 2030 during a public . The webinar recording is freely accessible.

SGS INSPIRE analysis shows that HVO has strong growth potential in Europe. HVO, either as a blend or in its pure form (HVO100), will be key to meeting the new increased renewable targets for transport in the Revised Renewable Energy Directive (RED III). Today, HVO is blended in diesel in most Western European countries. On the supply side, a confidence boost is observed among investors with HVO supply projected to ramp up over the next decade. All major European refining players have plans to increase HVO production capacity. The full HVO .

In April, SGS INSPIRE released the of its Energy Talks podcast on ‘Electrification of heavy-duty transport: bigger vehicles, bigger challenges?’ This episode featured Koen Noyens, Head of Public Affairs at Milence, a joint venture between Daimler Truck, the TRATON Group and the Volvo Group. Koen Noyens explained that Milence will roll out a network of public charging facilities for long-haul heavy-duty vehicles across Europe. The conversation explored the challenges and bottlenecks standing in the way for players such as Milence and touched on how other regions/countries, such as China and India, approach electrification of the heavy-duty sector.

In April, SGS INSPIRE published a global map on the based on its sulfur content.

Global report on e-fuels

Global map on the market share of gasoline based on its octane rating

Global map on the availability of diesel exhaust fluid

SGS INSPIRE continues to provide a comprehensive overview of fuel standards all over the world with published in March and April. Those were global/international specifications and those from Canada, Germany, the Netherlands, Spain, Bulgaria, Czech Republic, the UK, Spain, Austria, Egypt and Yemen.

The SGS INSPIRE Global Database of Fuel Specifications provides the most actual data per territory and country, with globally standardized specification units and fuel properties. SGS is constantly improving its database to market it more accessible, robust and up to date.

On March 14, 2024, the European Commission (EC) approved a Delegated Act, expanding the types of feedstock allowed under Annex IX of the European Directive 2018/2001 (RED II). The updated list incorporates energy crops grown on intermediate or degraded land and permits the use of damaged food and feed crops.

During the same month, Germany's Federal Office for Agriculture and Food (BLE) updated its , adding new pathways like fuels and oils from cover crops, carinata seeds, grease traps, blood fractionation waste and biomethane from various organic materials.

In April 2024, the European Parliament (EP) approved the provisional agreement on Regulation (EU) 2019/1242, setting in the EU for 2030, 2035 and 2040. Later in May the Council of the EU finally adopted the new standards. The next step is the signing and publication of the regulation in the EU's Official Journal. It will come into force 20 days after this.

The EP approved a for voluntarily calculating transport service greenhouse gas (GHG) emissions. This regulation, part of the "greening freight transport" legislative package, aims to enhance freight efficiency and achieve climate neutrality by 2050. Further actions will be taken by the new EP after the June 2024 elections.

SGS INSPIRE made an analysis of the EU’s progress on its goals based on data from the European Alternative Fuel Observatory (EAFO). Growth of the electric vehicle (EV) fleet from 2020 to 2023 almost matches the increase in charging stations during the same period.

The , setting the minimum level of taxation on EU energy products, has an updated compromise text from April 17, 2024. This new text, obtained by SGS INSPIRE, addresses national concerns and updates tax rates and periods. The negotiations on the ETD will likely be settled after the upcoming elections.

In March, SGS INSPIRE published its , summarizing development in the renewable targets for 2024, as well as updates in the production capacities for advanced biofuels. RON 95 E10 gasoline grade (conventional gasoline containing up to 10% v/v of ethanol) reached a 61% market share of the gasoline in 2024.

A new SGS INSPIRE summarizes developments in renewable targets for 2024, and provides updates on production capacities and demand.

In April 2024, BP that it is supplying its 100% hydrogenated vegetable oil (HVO) product, bp bioenergy HVO, at four BP forecourts in the UK and seven BP forecourts in the Netherlands.

SGS INSPIRE has published three reports relating to Western Balkans: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia and Serbia: and .

A report on was published in April. It covers regulations and market information related to the use of liquefied petroleum gas (LPG) by the transportation sector in Central Asian countries ofKazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. in Kazakhstan was reported to have increased by 28% in 2023, to 2.2 million tonnes, compared to 2022.

In April 2024, in Kazakhstan a was prepared to differentiate prices for RON 92, RON 93 gasoline and diesel depending on the volume of consumption and the origin of vehicles.

The Turkmenbashi complex of oil refineries this April has started producing a diesel fuel called , designed for use in harsh climatic conditions. In Kyrgyzstan, are being modernized, which in the first phase will allow them to produce gasoline of ecological classes K4 (50 mg/kg of sulfur) and K5 (10 mg/kg of sulfur).

Azerbaijan in April 2024 has included the development of in various strategic documents, including the primary strategy of the country's socioeconomic development, which incorporates sections on the development of the hydrogen industry and the use of its resources for the domestic market and export.

Overview of gasoline quality in Kyrgyzstan

Overview of diesel quality in Azerbaijan

Overview of hydrogen in Europe (update)

Global: ammonia as an alternative fuel – policy and market updates

Overview of gasoline quality in the Netherlands

Overview of diesel quality in the Netherlands

Overview of bio-based gasoline in the Netherlands

At the beginning of March 2024, the California Air Resources Board (CARB) reported that , a 14% increase on 2022. This surge has reignited the debate over allowing E15 sales in California, the only U.S. state that has not approved E15.

On March 20, 2024, the . The regulations mandate significant cuts in greenhouse gases, hydrocarbons, nitrogen oxides and particulate matter by 2032. Additionally, the EPA introduced "Tier 4" pollutant emissions standards for non-methane organic gases, nitrogen oxides, particulate matter and PM, among other pollutants.

On March 29, the EPA , including freight trucks, public utility trucks, transit buses, shuttle buses, school buses and tractors for model years 2027 through 2032. The standards are technology-neutral and performance-based, allowing manufacturers to choose the emissions control technologies that best meet their needs.

On April 1, 2024, the State of , a legislation passed in 2022 designed to promote the use of higher biodiesel blends within the state. The required blend level to receive the exemption will increase over the coming years: from B14 to B17 on April 1, 2025, and from B17 to B20 on April 1, 2026.

Still in April, the EPA during the U.S. summer months (June to September). This decision marks the third consecutive year that the| administration has extended the availability of E15 (gasoline blended with 15% ethanol). The EPA's decision to issue this waiver responds to the extreme and unusual fuel supply circumstances.

The governor of Nebraska signed a legislative package that includes a within the state.

The U.S. Treasury Department and the Internal Revenue Service released under the Inflation Reduction Act for sustainable aviation fuel (SAF). These updated guidelines allow corn and soy-based ethanol to qualify for SAF tax credits.

The U.S. overview of diesel quality report indicates that due to the increasing adoption of electric vehicles (EV) and stringent fuel efficiency standards set by regulatory bodies. SGS INSPIRE analysis of U.S. Energy Information Administration data expects that diesel demand will decline at an average annual rate of 1.2% from 2023 to 2030.

, marking the third-highest level in U.S. history. Over the past couple of years, ethanol exports have grown by an average of 15.5% annually. The exported volume in 2023 represented a 9% increase over 2022 and the highest volume since 2019.

Overview of gasoline quality in U.S.

Overview of Renewable Identifications Numbers (RINs) in U.S.

Overview of vehicles in U.S

In May 2024, Brazil's National Agency of Oil, Natural Gas and Biofuels published new for automotive diesel and the obligations regarding quality control to be met by the economic agents that sell the product. In addition, a plan and schedule for phasing out 500 mg/kg sulfur diesel and 1,800 mg/kg sulfur diesel will be developed within six months of May 2, 2024.

Chile's Ministry of Energy published a Action Plan up to 2030. It includes the development of a green hydrogen plant in Cabo Negro, Magallanes to inject hydrogen into gas networks and carry out blending tests between fuels and hydrogen and fuels from hydrogen.

Brazil approved authorization granting the experimental use of navigation in April 2024. The approval follows the recent trend of tests on trucks and agricultural machinery with B100.

Mexico's demand will reduce in 2037 compared with 2023. This drop in automotive LPG consumption will result from new technologies that are becoming more attractive due to cost reduction. By contrast, these official forecasts project an increase in CNG automotive consumption.

In April 2024, Chile's Sustainable Aviation Fuel was published. The roadmap includes a target for 2050 for SAF's market share of the fuel used in Chile's national and international aviation.

SGS INSPIRE has published one report relating to . domestic production and consumption are forecast to increase in 2024 compared to 2023. The parameters that have shown the most non-compliances for gasoline are oxygen content, research octane number and vapor pressure within the framework of the liquid monitoring system.

Mexico's Secretariat of Energy indicated in its document Crude and Petroleum , that the national refining system will achieve its maximum throughput level in 2028. After 2025, optimal levels in the national refining system will be reached; attributed to the operation in coker configuration of the Miguel Hidalgo refinery and of the Ing. Antonio Dovalí Jaime refinery.

Mexico's Secretariat of Energy published its establishing state priorities regarding the adoption and deployment of hydrogen, its derivatives and processes. It is worth noting that Pemex published its Sustainability Plan, which projects that the demand for oil products will slow down from 2030.

Overview of diesel quality in Chile

Overview of gasoline quality in Ecuador

Overview of biobased gasoline in Ecuador

Overview of diesel quality in Ecuador

Overview of gasoline quality in Uruguay

Overview of diesel quality in Uruguay

Overview of gasoline quality in Paraguay

In January 2024, the Jordan’s refinery announced the to improve the fuel quality and increase its production capacity, aims to enable the implementation of Euro 5/V and Euro 6/VI vehicle exhaust emission standards.

In 2024, the Cambodian government officially switched to . During this period, they also announced plans to improve vehicle emission standards. One month later, in February 2024, the Saudi Arabian government adopted a similar measure, transitioning to , including both diesel and gasoline.

At the end of March, the Chinese government , primarily in response to the EU's initiation of an anti-dumping investigation into biodiesel in December 2023.

In April 2024, began operations. Additionally, several green hydrogen plants are currently under construction or in pilot production stages.

The Philippine government published draft implementation guidelines for calculating the , which covers Class M1 vehicles with internal combustion engines. Moreover, SGS INSPIRE updated the and country report.

In May 2024, a Singapore company announced that it would start testing in existing marine engines in the second half of 2025. In addition, the Singapore government will not allow the new light-duty vehicles to be registered from January 1, 2025, as detailed in this .

In May, SGS INSPIRE published a new report relating to the . The Bangladesh government set an ambitious target of electric vehicles by 2030, concurrently the country slowed down the promotion of compressed natural gas vehicles.

Due to several factors, the Thai government decided to phase out B10 in May 2024, more information was updated on the .

Overview of gasoline and diesel in Pakistan

Overview of diesel in Kuwait

Overview of vehicles and emissions in India

Overview of gasoline and diesel in Myanmar

Overview of bio-based diesel in the Republic of Korea

Overview of new energy vehicles (NEV) in China

In Algeria, both diesel and gasoline are produced in most of the country’s five refineries. In 2022, the majority of diesel and gasoline produced locally was consumed in the country. According to the government, modernization projects at Hassi Messaoud’s new refinery are expected to allow excess gasoline and diesel to be exported from 2024. However, according to the latest sources, this project might be delayed. The launch of other refineries in Biskra and Tiaret has been postponed from 2022 to post-2025. For more information, please refer to the Algeria: overview of and reports.

In addition, the Algerian government has plans to increase the use of liquified petroleum gas (LPG) in the transport sector, as detailed in this .

In Kenya, the recent developments include a new automotive biodiesel fuel specification published in 2023, KS2227:2023. The key changes in the new specification include a revision to the cold filter plugging point (CFPP) requirement and the test methods of several parameters. For more detailed information on other developments in the country, please refer to the .

Overview of gasoline in Kenya

Overview of diesel in Morocco

Overview of gasoline in Morocco