SGS INSPIRE Newsletter September 2024

In August, the SGS Worldwide Fuel Survey team launched the . We are inviting e-fuel producers globally to supply one sample of the e-fuel that they are producing by the end October 2024. The results of the subsequent testing will be available to our customers as the primary data and within the SGS INSPIRE global reports on e-fuels. Please contact us via to take part in this survey.

Also in August, SGS INSPIRE published a , examining the current and potential role that e-fuels can play by 2030. This report provides an overview of the various types of e-fuel, including their definitions, production pathways and feedstock. It also highlights existing and upcoming production facilities worldwide.

Over summer, SGS INSPIRE published a regulatory limits and its actual content in gasoline and diesel and a regulatory limits and its actual content in gasoline.

In September, SGS INSPIRE held a webinar on “The promising panorama for renewable diesel in the U.S.” featuring George Hoekstra, president of Hoekstra Trading LLC and SGS INSPIRE market analyst for North America, Jorge Sierra. The Speaker provided an in-depth understanding of the evolving renewable diesel landscape in the U.S. The is available on-demand. SGS INSPIRE also published a report on hydrotreated vegetable oil (HVO) supply and demand in the U.S. The main findings from this report were presented during the webinar. The full report is available for purchase, contact us for more information: .

Also in September, SGS INSPIRE published the of the new European Commission on transport over the next five years. Our guest speaker was Julia Poliscanova, Senior Director for Vehicles & E-mobility supply chains at European NGO Transport & Environment (T&E). She explained her organization’s wish to see continuity with the Green Deal agenda. T&E wants the new European Commission to continue pushing for electrification of road transport, keep the Fit for 55 targets and tackle the remaining barriers such as permitting, low investment in electricity grids and not sufficient leveraging of demand side flexibility. She also wants them to give even more regulatory attention to decarbonization of aviation and shipping. She specifically noted that T&E is against revising the approved legislation on CO2 emission standards for cars and heavy-duty vehicles to avoid a negative impact on other value chains, such as battery manufacturing in Europe. We hope that you will enjoy hearing the different opinions from Brussels which SGS INSPIRE is bringing to you.

to discuss the SGS INSPIRE Global report on e-fuels’ position in the transportation sector, October 16, 9am CET.

Global maps of the number of electric vehicles and electric vehicle charging stations

SGS INSPIRE continues to provide a comprehensive overview of fuel standards all over the world with 106 for 44 different countries added in July and August. At SGS INSPIRE, we are constantly improving our databases to make them more accessible, robust and up to date. We provide the most actual data per territory and country, with globally standardized specification units and fuel properties. You can subscribe to our database by contacting us on .

SGS INSPIRE’s Fit-for-55 report was updated in September. It covers all 15 legislative proposals under the Fit-for-55 package, which aims to reduce greenhouse gas (GHG) emissions by 55% by 2030. Most of those legislative acts were formally adopted in 2023, except for the Energy Taxation Directive, which remains under consideration. This report includes all the final texts of the regulation.

In the UK, the first demonstration plant became operational in August 2024. The e-SAF is produced from carbon dioxide and hydrogen from renewable sources using a novel catalyst.

In Norway, the Norwegian Environment Agency (NEA) has delayed the outcome of its investigation into advanced biofuels not meeting the required criteria. The were consumed between 2017 and 2022.

The was published highlighting the growing market of biogenic fuels produced from biomass or other renewable sources (including bioethanol and biomethanol).

The was published reporting on the quality specifications, market information and actual quality of diesel in the Netherlands.

In July 2024, the EU Commission proposed a on the determination of CO₂ emissions and fuel consumption for heavy-duty vehicles, which introduced a methodology, including vehicles powered by hydrogen and other emerging technologies. This action highlights the growing role of hydrogen and hydrogen-based fuels in Europe's transportation sector, emphasizing their increasing significance in the region's transport infrastructure.

This summer, numerous , focused on alternative vehicle infrastructure, have been unveiled across Europe.

The European Commission set a November 21, 2024 for all biofuel and feedstock market participants to register transactions in the Union Database for Biofuels to prevent certification fraud, such as duplicate sustainability certificates.

On September 2, 2024, the European Commission issued for industry and transport under RED III, expanding RFNBO applications beyond transport fuels and clarifying their role in meeting emissions goals.

SGS INSPIRE published a Kyrgyzstan tackling the postponement of implementation of higher ecological classes K4 (50 mg/kg) and K5 (10 mg/kg) for locally produced diesel fuel to 2025, and the ongoing reconstruction of its two biggest refineries, Jalal-Abad and Junda, to facilitate production of K4 and K5 diesel fuel. The reflects Kyrgyzstan’s gradual movement towards the Euro 5 and Euro VI exhaust emission requirements. A joint Kyrgyz-Turkish , OJSC Kyrgyz-Turk K-NeftGaz, has been built in the Kok-Talaa village of the Batken region in Kyrgyzstan. Construction of the plant began in 2021 and was completed in June 2024.

In Bosnia and Herzegovina, Sistem Ecologica plans to restart its biodiesel plant , after a shut down due to fraud. The company is obtaining the necessary permits.

In August, Albania’s energy ministry launched a for a new EU-aligned regulation aiming to boost the share of biofuels and other renewable fuels in the country's transportation sector. The energy ministry was accepting comments on the regulation until September 23.

In the same month, SOCAR, Azerbaijan’s state oil company, has completed the construction and startup of a complex for production of gasoline corresponding to the ecological standard. The octane grades of the gasoline to be produced are RON 92 and RON 95.

In July, the Ministry of Energy of Tajikistan reported that funds and specialists were needed to launch . Tajikistan expects to establish cooperation with Tatneft to launch one of the country's largest oil refineries, in the free economic zone (FEZ) of Dangara.

Overview of diesel in Switzerland, Spain and Azerbaijan

Overview of gasoline in Spain, Azerbaijan and Tajikistan

Overview of bio-based gasoline in Spain

The U.S. administration plans to finalize guidance for the Inflation Reduction Act’s (IRA) by the end of this year. Known as the Clean Fuel Production Credit (CFPC), this tax incentive aims to boost domestic production of low-carbon fuels and will apply to biofuels produced between January 2025 and December 2027.

Biodiesel and renewable diesel producers will face a significant challenge as the USD 1 per gallon , a subsidy that has sustained the industry for several years.

in September 2024 reached 95.1 billion liters in the first half of 2024, marking a 5.7% increase compared to December 2023.

In August, the U.S. Environmental Protection Agency (EPA) initiated investigations into the national s amid concerns that some producers may be using fraudulent feedstocks.

U.S. production capacity for sustainable aviation fuel (SAF) could increase by the end of 2024 if announced capacity additions come online.

In July, the U.S. Department of Energy (DOE) announced a significant as part of the Inflation Reduction Act, to transform 11 automotive assembly plants across eight U.S. states into electric vehicle (EV) production facilities.

In August, the Canadian government announced that it would follow the U.S. by imposing a manufactured in China, as well as on other hybrid passenger cars, trucks, buses and delivery vans.

In July, American Airlines (AA) announced a conditional purchase agreement with the aviation startup Zero Avia to acquire intended to power aircraft on its regional routes.

In June, Environment and Climate Change Canada (ECCC) presented updated . These updates aim to address fraud and ensure the integrity of biofuel production using UCO.

In the same month, the U.S. issued new for model years (MY) 2027-2031.

In contrast to the oil refining sector, is disproportionately concentrated in one region. Nearly 90% of the country’s ethanol capacity is in Petroleum Administration for Defense District (PADD) 2, which encompasses the Midwest. The Midwest is home to most of U.S. corn farms, making it easier to source and transport feedstock.

Overview of bio-based gasoline in California

Overview of gasoline and bio-based gasoline in Canada

Overview of hydrogen as a transportation fuel in the U.S

In September 2024, Mexico issued general administrative for the integration of charging infrastructure for battery EVs and plug-in hybrid EVs into the National Electric System.

SGS INSPIRE attended the Latin American Refining Technology Conference held September 3-5, 2024, in Colombia. At the conference, showed how they are increasing their renewable fuel production capacity.

The percentage of in diesel reached a historical high in 2024 in Paraguay. A significant increase in Paraguay's installed production capacity of fatty acid methyl esters accompanies this increase in the blending mandate. SGS INSPIRE estimates an increase in diesel demand in 2024.

In 2024, Argentina's decreased to their lowest level since 2009, and gasoline imports have been at their lowest since 2020.

In the following years, an increase in anhydrous fuel in Ecuador is foreseen in the Ecopaís gasoline grade or the introduction of new grades. Ecuador has been a of non-fuel use ethanol in the past, and it will remain so in the short and long term. Ecuador's regular grade, RON 85, has the largest in 2024, followed by the premium grade. However, in 2024, most have been RON 95, followed by RON 80.

Mexico published a draft of an official standard to establish the maximum permissible for carbon monoxide, hydrocarbons, non-methane hydrocarbons, nitrogen oxides and particulate matter from the exhaust of new engines incorporated, or to be installed, in new non-road mobile machinery that uses diesel as fuel.

SGS INSPIRE attended the First Pan-American Congress on held on July 31, 2024, in Colombia. The last developments in sustainable aviation fuel policies, regulations, technologies and markets were presented, including the demand and supply projections of the International Air Transport Association (IATA).

Brazil published a legal framework for in August 2024. It establishes the Special Regime of Incentives for the Production of Low-Carbon Hydrogen and creates the Low-Carbon Hydrogen Development Program.

Uruguay's Regulatory Unit for Energy and Water Services approved a Resolution modifying the 10 mg/kg sulfur . The approved modifications include increasing the cetane number parameter, incorporating a polycyclic aromatic hydrocarbons limit and reporting the acid number parameter.

Overview of gasoline quality in Uruguay and Paraguay

Overview of diesel quality in Uruguay

In August, the government of the Republic of Korea published . The country aims to use biogas fuel to reduce carbon emissions and meet the net zero carbon emissions on time.

In the same month, Australia’s government mandated the implementation of the for new light-duty vehicle models introduced to the country from December 2025. In addition, Australia’s parliament passed a bill establishing the country’s first . The standards will come into effect on January 1, 2025. In September 2024, the government from mid-December 2024 to mid-December 2025.

Recently, the Philippines government worked with a state-owned company to (diesel containing up to 55% v/v of biodiesel) in its small power utility group power plant.

Malaysia’s government unveiled a blueprint aiming to as part of its aviation decarbonization goals for 2024 to 2050.

SGS INSPIRE published report on reflecting the development of the country’s Corporate Average Fuel Efficiency standards and the electric vehicle program.

SGS INSPIRE published a , showing the government’s push to upgrade the country's refineries to produce higher-quality diesel.

In September, Indonesia’s elected president announced a plan to increase the biodiesel blending mandate from the current B35 to .

Due to the COVID-19 pandemic, the Bapco Energies’ Sitra refinery upgrading project was delayed until the last quarter of 2024, this was updated in the.

In September, the state-owned petroleum company of the United Arab Emirates signed an agreement to of the Dubai airport service company.

Overview of gasoline and diesel quality in Bahrain and Nepal

Following in the Interstate Oil Committee meeting and Fuels Industry Association in South Africa (FIASA) in July, the key takeaways of the events were highlighted. Namely they were the security of supply and energy transition in South Africa and other African countries.

In early August, the Ethiopian Airlines Group signed a memorandum of understanding with Satarem America Inc. to produce and use in Ethiopia.

In Nigeria, new specifications for gasoline and diesel came into force at the beginning of 2024. Key changes included a reduction of the regulatory limit for sulfur content in both gasoline and diesel, amongst others. However, for local refineries, there is a waiver of the sulfur, permitting up to 650 mg/kg, and for imported fuels (including diesel and gasoline), there is a waiver for sulfur content of up to 200 mg/kg until January 2025. More detailed information can be found in Nigeria’s and reports.

Since 2022, the ultra-low sulfur diesel specification NT 04.49 (2021) has been. In force in Tunisia, replacing NT 04.49 (2007) standard. SGS INSPIRE’s has been updated with more recent information.

The new Tunisian unleaded gasoline specification NT 04.54 (2023) will be implemented from November 30, 2024, replacing NT 04.54 (2001). More detailed information can be found in our .

Overview of gasoline in Zimbabwe, Angola

Overview of diesel in Angola