MOSCOW (MRC) -- The US Environmental Protection Agency's biofuel blending mandates for this year and next are likely to be in line with those of 2020 as the agency accounts for weaker fuel demand since the onset of the coronavirus pandemic, reported Reuters with reference to three sources familiar with the matter.
That would spare the US refining industry the added costs associated with the usual annual expansion in renewable volume obligations under the Renewable Fuel Standard, at the expense of biofuel producers and the corn industry which depend on regular increases to grow their businesses.
The RFS requires refiners are meant to blend billions of gallons of biofuels like corn-based ethanol and biodiesel into their fuel, or buy tradable credits from those that do. The required amount of biofuels can increase each year, in hopes of reducing foreign petroleum imports and helping farmers.
The EPA administers the program and is meant to propose new volumes mandates yearly. But the administration of former President Donald Trump delayed the 2021 proposal because of the pandemic, and ahead of an election in which he was courting voters in both the oil and farm sectors.
The agency is now intending to issue both the 2021 and 2022 volumes proposals this summer.
In its last finalized ruling, which came out at the end of 2019, the EPA mandated that refiners must blend 20.09 billion gallons of renewable fuel into nation's fuel mix for the 2020 compliance year. The mandate included 15 billion gallons of conventional biofuels like ethanol, with the rest including other forms of biofuels. The upcoming volume proposals are due to include requirements that are largely the same, the three sources said, citing the impact of the coronavirus pandemic.
The agency likely was also guided by volume targets set by Congress under the RFS for conventional biofuels and non-cellulosic advanced biofuels, one source said.
As MRC informed earlier, in April 2021, the US Environmental Protection Agency asked industry groups for their input on the future of the nation's biofuel policy after it ends its current phase in 2022. The consultations will provide a new opportunity for the oil, corn and biofuel lobbies to reshape the regulation, called the Renewable Fuel Standard, which has bitterly divided the two industries for more than a decade. Under the RFS, oil refiners must blend increasing billions of gallons of biofuels into the nation's fuel mix each year or buy trade able credits from those that do.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC