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Description: Newsletter June 2021
Read our bimonthly update from the world's regions.
Publication date: Jun 21 2021

Newsletter June 2021

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Welcome to the newsletter of SGS INSPIRE, the newsletter that keeps you informed about the latest global developments in fuel quality. Read our update from the world's regions.
Global
SGS INSPIRE published several maps:
The analysis of the regulatory limits for ethers worldwide shows that, while many countries do not regulate them, many others allow them in high concentrations.
The review of the manganese regulatory limits reveals differences around the world, from its ban to allowing its addition up to 50 mg/kg.
The regulatory limits for sulfur in diesel and exhaust emission standards for non-road machinery show many countries already aligned with on-road ultra-low sulfur diesel standards.
The ethanol regulatory limits and blend share analysis shows that while most countries in the world allow ethanol in gasoline, it is mainly consumed in the Americas, Europe and the South-East Pacific region. E5 and E10 are the most common ethanol blends, other blends are mostly found in South America.
The octane share in gasoline per country reveals that the most common octane grades are RON 90-94. As for N-Methylaniline, the study shows that most countries do not regulate its content or do not allow it, and most countries do not use it. In the past few years, hydrogen has become the buzz word for transport and industry’s decarbonization globally. Therefore, SGS INSPRIE published a regional overview of hydrogen developments in Europe, South America and Asia Oceania. We looked at the policies promoting hydrogen production, its use for transport and the upcoming hydrogen production projects. While Asia is the largest hydrogen consumer, Europe has been very active in developing renewable hydrogen production capacity in the past few years. Both regions have been developing hydrogen strategies and fueling funding for hydrogen uptake in road transportation. So far, in Asia and Europe, hydrogen has been mainly used in public transportation and for special logistical purposes. South America has a great potential in developing renewable hydrogen capacity.
Upcoming
SGS INSPIRE will publish an overview of biofuel mandates applicable in 2021 and projection until 2025. The overview will include the average biodiesel and bioethanol blending level in diesel and gasoline respectively, based on SGS market survey and the projection for average biofuels blending for 2025.
Sustainable aviation fuels (SAF) are considered one of the means to decarbonize aviation sector by the International Civil Aviation Organization (ICAO), many airlines and producers of jet fuels, therefore, SGS INSPIRE will publish an overview about the SAF uptake, focusing on Europe and the U.S. This report will cover the regulatory requirements for aviation fuels, carbon reduction measures at ICAO, in the U.S. and Europe. We will also review the current and expected capacity for SAF production and drivers for its demand.
SGS INSPIRE will publish a new map on regulatory limits for methanol.
Specifications database
We updated fuel quality requirements from the following countries and territories in our global fuel quality specification database, which now contains 4,800 entries:
Armenia (jet fuel), Belarus (jet fuel), Canada (diesel, biodiesel blend, ethanol blend, LPG, aviation turbine fuel), Czech Republic (diesel, gasoline), Estonia (diesel, gasoline, biodiesel, paraffinic diesel), European Union (diesel), Global (aviation turbine fuel, kerosene), Kazakhstan (jet fuel), Kyrgyzstan (jet fuel), Malaysia (diesel, gasoline), Russian Federation (jet fuel), Saudi Arabia (diesel), United States (gasoline state-regulated), Viet Nam (reference fuel including diesel, gasoline, LPG).
Events
Webinar: Renewable Energy Directive (RED II) implementation by the EU member states
Join our webinar to get an overview of the EU member states 2030 targets for renewable energy share in transport, phase out of biofuels with high indirect land-use (ILUC) risk, restrictions on used cooking oil and animal fat-based biofuels and the sustainability certification.
Dates:
June 23, 2021, at 7:00 UTC (9:00 CEST)
June 24, 2021, at 14:00 UTC (16:00 CEST)
Webinar: The European Union revises its climate and energy legislation to deliver 55% greenhouse gas emissions reduction by 2030
On July 26, 2021, SGS INSPIRE will deliver a webinar to provide an overview of the Fit for 55 package, focusing on its possible implications for fuels (road, aviation and marine), vehicles, transportation and energy intense sectors.
Date: July 26, 2021, at 12:00 UTC (14:00 CEST)
Europe
In May 2021, an early draft of the impact assessment of the revision of the EU 2018 Renewable Energy Directive (RED II) was leaked. It suggests that the European Commission (EC) plans to propose new increased 2030 renewable energy share target for transport from 14% to 26%.
The EU gasoline country profile, section gasoline supply per ethanol grades indicates ethanol and bio-based gasoline grades available in European countries, that includes RON 95 E10 (gasoline blended with 10% v/v of ethanol) in the UK and Sweden as from Autumn 2021. RON 95 E10 is not introduced in the countries such as Austria, Croatia, Cyprus, Czech Republic, Greece, Italy, Malta, Poland, Slovenia, Portugal, Norway, Switzerland and Iceland.
The EU country gasoline country profile also indicates bioethanol mandates applicable in 2021. The Czech government is discussing a higher mandate for ethanol to facilitate RON 95 E10 introduction, similarly the UK is discussing a higher mandate for biofuels to accommodate RON 95 E10 grade. Several countries, like Austria, Denmark, France, Belgium and Italy are planning to phase out palm oil-based biofuels from 2021 -2023. Some countries, like Germany and the Netherlands plan to have 27 to 28% renewable energy share in transport by 2030.
Similarly, the EU diesel country profile, section diesel supply per biodiesel grades indicates bio-based (biodiesel and hydrotreated vegetable oil) sales in the European countries. It also includes Belgium which recently started distributing B10 (diesel blended with 10% v/v of biodiesel) grade. The EU diesel country profile also indicates bio-based diesel mandates applicable in 2021.
Bosnia and Herzegovina only recently proposed to legally limit sulfur content to 10 mg/kg in diesel and gasoline, although most of the gasoline and diesel sold on the market already complies with this limit for sulfur.
Upcoming
We are planning to publish new country profiles for Norway, Belgium and Turkey.
Commonwealth of Independent States
In March 2021, Fergana refinery in Uzbekistan started producing diesel with maximum sulfur content of 50 mg/kg for the first time. While Uzbekistan still allows 500 mg/kg sulfur in diesel, in the past few years it has been promoting fuel with lower sulfur content (up to 10 mg/kg). They can be found at Tatneft and Lukoil fuel stations. By 2023/2024, Uzbekistan plans to transition to 10 mg/kg sulfur limit for gasoline and diesel.
Upcoming
Gasoline and diesel country profiles for Armenia.
North America
The U.S. Environmental Protection Agency (EPA) issued a Final Rule delaying the deadlines for demonstration of compliance with Renewable Fuel Standard (RFS) obligations for compliance years 2019, 2020 and 2021. The U.S. EPA also had to defend its stance on small refinery exemptions to RFS obligations in a hearing on the matter in front of the Supreme Court.
Additionally, the U.S. EPA enacted emergency fuel waivers in response to the Colonial pipeline ransomware attack. It originally defined the waiver to include reformulated gasoline only, but then had to expand the waiver to cover all gasoline across a much larger number of states. Weekly data from the Energy Information Administration subsequently showed the actual impact of the Colonial pipeline shutdown on product supply.
President Joseph Biden proposed an infrastructure investment plan that included USD 621 billion to be earmarked for transportation-related projects. Biden’s administration also submitted an aggressive greenhouse gas emission cutting target, pledging to cut them by 50% by 2030.
Iowa and Minnesota released data on consumption of mid-level ethanol blends. Also, nationally, battery electric vehicles and hydrogen fuel cell vehicles deliveries reached new highs in the first quarter of the year.
Upcoming
U.S. hydrogen report.
South and Central America
In 2020, 131.76 billion liters of fuel were traded in Brazil, down 5.97% compared to 2019, reflecting the measures taken due to the COVID-19 pandemic.
Furthermore, Brazil reduced the mandatory blend content of biodiesel in fossil diesel from 13% to 10% during the months of May and June 2021. Moreover, the Brazilian National Agency of Petroleum, Natural Gas and Biofuels approved a new biodiesel commercialization model in Brazil. This model aims to liberalize the biodiesel market and promote competition.
Peru has issued a draft resolution to update vehicle exhaust emissions standards for light, medium and heavy-duty vehicles. The draft resolution schedules gradual introduction of more stringent standards until 2026.
The Government of Colombia issued Resolution 40111 on April 9, 2021, establishing new biofuel mandates per provinces. A new timeline for the introduction of these mandates has also been implemented.
The government of Argentina has proposed an update of the Biofuels Law, which expired in May 2021 but was extended by two months, reducing biofuel mandates.
SGS INSPIRE updated the country profiles of gasoline, diesel and vehicles of Bolivia and vehicles of Brazil, showing the increased consumption of the new E12 ethanol grade on the market or the growth of low sulfur diesel imports.
Upcoming
Update on the Central American country profiles of gasoline, diesel and vehicles.
Asia and Oceania
The Chinese government published the 2021 Task List for Energy Regulation which includes the adjustment of ethanol mandate, from nationwide to selected provinces. The government also submitted the final draft of E5 and E10 specifications for last review.
The Road Transport Authority of Dubai successfully conducted trials of B5 in abras, the traditional boats made of wood in the United Arab Emirates.
South Korea plans to increase its biodiesel mandate in stages, from the current B3 to B5 by 2030, starting with B3.5 from July 2021.
The Shanghai Municipality aims for pure electric vehicles to account for 50% of the new personal vehicles sales by 2025.
The Indian government approved the use of E100 as fuel in E100 compatible vehicles. The average blending percentage of ethanol in December 2020 to March 2021 period was 7.2% v/v, the highest since the Ethanol Blending Program started.
SGS INSPIRE updated the Philippines’ diesel profile showing the government’s new draft B3 and B4 specifications. May be implemented in stages prior to B5 in 2022.
Upcoming
The Philippines bio-based ethanol and diesel reports, and the diesel and gasoline overview country profiles for Qatar, Kuwait and Oman.
Africa
Sasol and Toyota South Africa Motors (TSAM) will start exploration of the development of a green hydrogen mobility ecosystem in South Africa.
The government of Nigeria and several companies are promoting the use of LPG and CNG for automotive use and these alternative fuels will be supplied in fuel stations.