Brittany Hook’s Post

As energy demands rise the pivot towards renewable sources is reshaping the oil industry's future.

#Shell is focused on a variety of #biofuels as part of its #energy #transition #strategy¹². Here are some key points: - **#Renewable Natural Gas (RNG)**: Shell acquired Nature Energy, the largest producer of RNG in Europe, and has around 30 new plant projects in the pipeline in Europe and the USA¹. RNG, or biomethane, can be used in transmission and distribution infrastructure, and for heating, cooking, and combined heat and power generation². - **#Sustainable #Aviation Fuel (SAF)**: Shell became the first company to supply #SAF to customers in Singapore in February 2022¹. SAF can help to significantly reduce emissions from flying². - **#Biodiesel and #Bioethanol**: Shell is one of the world's largest traders and blenders of biofuels¹. In 2022, around 9.5 billion litres of biofuels went into Shell’s fuels worldwide¹. - **Bio-LNG**: Shell began construction of a bio-LNG plant at the Energy and Chemicals Park Rheinland in Germany¹. Once operational, the plant will produce 100,000 tonnes of bio-LNG each year¹. - **Ethanol from Sugarcane Waste**: Shell's Brazilian joint venture Raízen is one of the world's largest biofuels producers¹. Shell announced an agreement with Raízen to buy 3.25 billion litres of ethanol made from sugar-cane waste¹. Shell aims to be a significant and profitable supplier of sustainable low-carbon fuels to help decarbonise harder-to-abate sectors including aviation, marine, and commercial road transport³. Source: (1) Biofuels - Shell Energy Transition Progress Report 2022. https://lnkd.in/gDaazazS. (2) Sustainable biofuels | Shell Global. https://lnkd.in/gySUxKQb. (3) Biofuels - Shell Sustainability Report 2023. https://lnkd.in/g3fvJ6DT. (4) Shell: Europe's biggest oil firm sets out carbon neutral plans - BBC. https://lnkd.in/gxpHhNmZ. (5) Shell: Europe's biggest oil firm sets out carbon neutral plans. https://lnkd.in/gSCyCN9x.

Major oil and gas companies are increasing their investments in the #biofuels sector, with a focus on sustainable aviation fuel (SAF). According to a report by consultancy Rystad Energy, 43 projects are expected to be operational by 2030, with a combined production capacity of 286,000 barrels per day (bpd). #middleeast

https://lnkd.in/drkB6C9w Quotes from the article: Major oil and gas companies have ramped up investments in the biofuels sector, betting on sustainable aviation fuel (SAF), with 43 projects expected to be up and running by 2030, consultancy Rystad said in a report. The energy research firm indicates that investments by industry giants such as ExxonMobil, Chevron, BP, Shell, TotalEnergies, and Eni, could add 286,000 barrels per day (bpd) of production capacity. The aviation industry accounts for nearly 2% of global energy-related carbon dioxide emissions. "As the energy transition progresses, these biofuels offer a practical, near-term solution to reduce emissions without requiring significant changes to current infrastructure," said Lars Klesse, analyst of bioenergy research at Rystad. BP leads the pack with the largest announced production capacity, reaching a combined 130,000 bpd. Strategic acquisitions, such as BP's purchase of Bunge Bioenergia and Chevron's takeover of Renewable Energy Group, have strengthened oil majors' positions in this space. Despite its higher cost compared to petroleum-based jet fuel, SAF uptake is gaining momentum. Government mandates are driving investments, with the European Union requiring a minimum of 2% of SAF use in aviation by 2025, and the Biden White House aiming to meet all U.S. aviation fuel demand with SAF by 2050. #aviation #aviationindustry #aviationemissions #aviationfuel #sustainableaviationfuel #saf #biofuels #usedcookingoils #vegetableoils #grease #animalfat #foodwaste #biomass #aircraft #aircraftemissions #airtravel #airlines #oilmajors #majoroilcompanies #bigoil #oilindustry #oilandgasindustry #upstream #downstream #refining #transportationfuels #jetfuel #kerosene #climatechange #globalwarming #anthropocene #humanactivity #greenhousegasemissions #carbondioxideemissions #energytransition #energyindustry

Spanish multinational oil and gas company CEPSA has achieved a significant milestone with the successful issuance of a €750 million bond. This funding is earmarked to advance the production of 2G biofuels, including sustainable aviation fuel (SAF), HVO, and hydrogen, marking a pivotal step in Cepsa's sustainability and transformation initiatives. Carmen De Pablo Redondo, CFO of Cepsa, expressed gratitude for the investment community's support, highlighting the confidence in Cepsa's transformation strategy and future business prospects. The bond issuance, the largest in Cepsa's history, strengthens the company's financial position, enabling it to meet debt commitments and execute strategic investment plans effectively. Cepsa's Positive Motion strategy, launched recently, aims to position the company as a European leader in 2G biofuels and green hydrogen production. The funds from the bond issue will play a crucial role in realizing this vision, including the deployment of ultra-fast electric chargers across its network. By 2030, Cepsa targets producing 0.8 million tons of SAF annually, equivalent to meeting a significant portion of European regulatory demand. Additionally, the company plans to achieve an overall production of 2.5 million tons of 2G biofuels by the same year, emphasizing its commitment to sustainable energy solutions. With a notable 35% share in Spain's aviation market and established partnerships with major airlines like Iberia, Cepsa is well-positioned to drive sustainable aviation initiatives effectively. Furthermore, Cepsa aims to lead in green hydrogen production in Spain and Portugal, with ambitious plans to establish 2GW equivalent capacity by 2030, contributing significantly to decarbonization efforts in the region. The company's recent reaffirmation of its investment-grade rating (BBB-) and stable outlook by S&P and Fitch underscores its financial stability and strategic direction, further boosting investor confidence in Cepsa's sustainable energy endeavors. For a comprehensive understanding of Cepsa's transformative journey and its impact on the energy industry, visit our blog. #AvfoilNews #Cepsa #2GBiofuels #GreenHydrogen #SustainableAviationFuel #PositiveMotionStrategy #InvestmentGradeRating #AviationMarket #Decarbonization

#Eni #cleanenergy How to traverse the energy transition is the multibillion-dollar question that all of Europe’s oil majors have been grappling with for years. Nobody has cracked it — as the recent strategic revisions from the likes of Shell prove. But one strategy is starting to show promise: Italian major Eni has taken the approach of setting up satellite businesses, which can independently tap capital markets and operate unencumbered by the rest of the legacy business. Eni is in talks with KKR to sell a 20 to 25 per cent stake in its biofuels business Enilive. The deal, if agreed, could potentially value the entire satellite, which also owns more than 5,000 fuel stations in Europe, plus cafés and a car-sharing business, at between €11.5bn and €12.5bn, Eni said. Debt-free, Enilive is expected to generate €1bn in ebitda this year. This would imply a forward enterprise value/ebitda multiple of 11.5 to 12.5 times, well above other biofuels businesses such as Neste, which currently trades on about 7 times. Source: #ft 👇 https://lnkd.in/d6p2qipA

Shell’s decision to pause the construction of its huge biofuel plant in Rotterdam follows bp’s decision to halt two projects in Germany and the U.S. For Shell this raises a question about the energy transition strategy - it has scrapped many offshore wind, solar, hydrogen and power businesses and projects in recent months, so if biofuels don’t work, what’s left in the low-carbon portfolio to grow and help reduce its net greenhouse gas emissions?

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, has announced a temporary halt on the construction of its 820,000 tonnes per year biofuels facility at the Shell Energy and Chemicals Park Rotterdam, Netherlands. This pause aims to address project delivery challenges and ensure future competitiveness amidst current market conditions. Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director, explained, "Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project." He emphasized Shell’s commitment to achieving net-zero emissions by 2050, with low-carbon fuels playing a crucial role in the company's strategy to help both Shell and its customers profitably decarbonize. Vigeveno added, "We will continue to use shareholder capital in a measured and disciplined way, delivering more value with fewer emissions." The biofuels facility, which received its final investment decision in September 2021, is designed to produce sustainable aviation fuel (SAF) and renewable diesel from waste. This strategic move is aligned with Shell CEO Wael Sawan’s focus on profitability since taking office last year. Under Sawan’s leadership, Shell has also scrapped hydrogen projects and pulled out of various markets to concentrate on core operations. This decision comes in the wake of similar announcements by bp, which has paused the development of two biofuel plants in Germany and the United States earlier this week. These moves reflect the broader industry trend of reassessing biofuels projects in response to shifting market dynamics and financial pressures. Read the article on our blog. #AvfoilNews #Shell #Biofuels #SustainableAviationFuel #RenewableDiesel #NetZeroEmissions #EnergyTransition #HuibertVigeveno #WaelSawan #Sustainability #EnergySector #ClimateAction

𝗥𝗲𝗻𝗲𝘄𝗮𝗯𝗹𝗲 𝗔𝘃𝗶𝗮𝘁𝗶𝗼𝗻 𝗙𝘂𝗲𝗹 𝗠𝗮𝗿𝗸𝗲𝘁 𝟮𝟬𝟮𝟰-𝟮𝟬𝟯𝟭. 𝗚𝗹𝗼𝗯𝗮𝗹 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 𝗥𝗲𝗽𝗼𝗿𝘁 This comprehensive report delves into the global Renewable Aviation Fuel market, encompassing aviation gasoline for piston engines and jet fuel for gas turbine engines, with a particular focus on renewable sources. It offers a thorough analysis, both quantitatively and qualitatively, covering manufacturers, regions, types, and applications. Recognizing the ever-evolving nature of the market, the report investigates competition, supply and demand dynamics, and the pivotal factors influencing shifting trends across diverse markets. It furnishes company profiles and product illustrations of key competitors, accompanied by market share projections for 2023. The Renewable Aviation Fuel market is categorized by type and application, and from 2019 to 2030, it provides precise calculations and forecasts for consumption values in terms of volume and value within these segments. This analysis serves as a valuable resource for businesses seeking expansion opportunities within specialized niche markets. 𝗧𝗼 𝗞𝗻𝗼𝘄 𝗙𝘂𝘁𝘂𝗿𝗲 𝗗𝗲𝗺𝗮𝗻𝗱 𝗼𝗳 𝗥𝗲𝗻𝗲𝘄𝗮𝗯𝗹𝗲 𝗔𝘃𝗶𝗮𝘁𝗶𝗼𝗻 𝗙𝘂𝗲𝗹 𝗠𝗮𝗿𝗸𝗲𝘁. 𝗥𝗲𝗾𝘂𝗲𝘀𝘁 𝗳𝗼𝗿 𝗥𝗲𝗽𝗼𝗿𝘁 𝗦𝗮𝗺𝗽𝗹𝗲 𝗣𝗗𝗙: https://lnkd.in/dXdTeZCP *𝗕𝘆 𝗧𝘆𝗽𝗲: Algal Biofuel, Plant Biofuel, Others *𝗕𝘆 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Commercial, Defense, Others *𝗕𝘆 𝗥𝗲𝗴𝗶𝗼𝗻: North America, Europe, Asia-Pacific, South America, Middle East & Africa *𝗕𝘆 𝗞𝗲𝘆 𝗣𝗹𝗮𝘆𝗲𝗿𝘀: Amyris, LanzaTech, General Biomass Company, Neste, TotalEnergies, Byogy Renewables, Inc., Sundrop Fuels, bp, Chevron, Aemetis, REG SYNTHETIC FUELS, LLC, Gevo, Inc., Terrabon, Envergent, INEOS, DONG Energy #renewable #aviationfuel #sustainableenergy #cleanenergy #biofuels #renewableaviation #alternativefuels #greenaviation #sustainability #renewablefuture

In light of shareholder’s demanding more divendes distribution, these energy transaction projects will continue to be challenged. This is coupled with customers looking for more competitive options for fuel sources.