Global Climate News

The article discusses several factors influencing energy markets in 2025, including tighter natural gas supply, OPEC+ decisions, shifting product demand (with increased NGLs and reduced demand for gasoline and diesel in China), the role of biofuels in the energy transition, and the increasing use of short-term energy options due to market uncertainty. The expected lifting of the temporary pause on new LNG export licenses in the US is anticipated to accelerate investments in the natural gas and LNG industry. S&P Global Commodity Insights believes that increases in OPEC+ output would put downward pressure on oil prices, potentially sending WTI futures to as low as $30 per barrel. New refined products supply from the Dangote refinery in Nigeria and the potential commissioning of the Olmeca refinery in Mexico will add pressure to existing refiners.

Africa and the Middle East are emerging as key players in sustainable aviation fuel (SAF) development. In Africa, South Africa has the potential to produce 3.2-4.5 billion liters of SAF annually, exceeding its domestic demand. The Middle East, particularly the UAE, is investing heavily in SAF production, aiming for 700 million liters annually by 2031. Saudi Arabia plans a major e-SAF plant producing 350 million liters annually by 2029. Challenges include feedstock availability and high upfront costs.

The US Department of Energy (DOE) and the Environmental Protection Agency (EPA) announced $6 million in funding for three projects to advance biofuel development. The projects will improve biofuel production, scale up production, and support the US bioeconomy. Funded projects include Air Company Holdings, Erg Bio Inc., and Terragia Biofuels.

The U.S. Department of Energy and the Environmental Protection Agency announced $6 million in funding for three projects to advance biofuel development. The projects will improve biofuel production, scale up production systems, and support the U.S. bioeconomy. Funded through the Inflation Reduction Act, the projects are located in three states and will support the Sustainable Aviation Fuel Grand Challenge goals.

Pan-Nordic Nordea event focused on the transition to a net-zero economy. Ørsted's transformation from fossil fuels to 90% renewable energy was highlighted, along with Neste's shift to sustainable aviation fuel and renewable diesel. Nordea, as the first Nordic bank with 2030 sustainability targets, emphasized active customer engagement and support for the transition.

US-based HYCO1 has developed CCR technology that transforms CO2 into renewable fuels. The company has also developed the HYCO1 CUBE CO2 Reformer and is working on projects to produce sustainable aviation fuel (SAF) and low-carbon base oils and lubricants from dairy waste.

The UK government implemented the Sustainable Aviation Fuel (SAF) Mandate, requiring at least 2% of all jet fuel used in flights departing the UK to be SAF from 2025, increasing to 10% by 2030 and 22% by 2040. This mandate aims to decarbonize air travel, support thousands of skilled jobs, and contribute to the UK's clean energy goals. A revenue certainty mechanism will also be introduced to attract investment in UK SAF production.

Indonesia is preparing for the implementation of the B40 biodiesel program in 2025. The program aims to achieve energy security and support a green and sustainable Indonesia. The Ministry of Energy and Mineral Resources (ESDM) is overseeing the implementation, and Pertamina has prepared two main refineries to support B40 production. The estimated biodiesel need is 15.6 million kiloliters per year.

Japan has revised its \"Sectoral Investment Strategy\" to boost investments in GX (Green Transformation) across 16 key sectors, including steel, chemicals, automobiles, batteries, hydrogen, and next-generation renewable energy. The revision aims to enhance predictability for businesses and accelerate Japan's GX implementation by clarifying investment promotion measures and providing a roadmap for the next 10 years.

India's CSIR launched a National Mission on Sustainable Packaging Solutions, aiming to develop advanced packaging materials and improve recycling methods. Additionally, CSIR-NIIST developed Jaivam, an eco-friendly, high-speed composting technology, and CSIR-NGRI discovered a potential geothermal reservoir in Eastern Ladakh, promoting sustainable energy development. CSIR also collaborated with Airbus on green aviation fuel development and introduced an electric tiller for sustainable farming.

Spain's ENAIRE awarded a contract to BP ENERGÍA ESPAÑA S.A.U. for the supply of aviation fuel. The contract, identified as DNA 63/2024, has a total value of €700,000 and was awarded on December 16, 2024. The initial tender, REF TEN-0001/LOT-0000, was valued at €847,000.

The European Commission has adopted a new Flight Emissions Label (FEL) regulation that will provide standardized methodology for calculating and displaying flight emissions information. Starting July 2025, airlines operating within or departing from the EU can voluntarily participate in this labeling system that will show passengers the estimated greenhouse gas emissions of their flights in kg CO2eq. The initiative aims to combat greenwashing, promote sustainable aviation fuels, and support the aviation sector's transition to net zero emissions.

Netherlands-based Power2X has partnered with Honeywell to implement Honeywell UOP’s eFining methanol-to-jet processing technology in its eFuels Rotterdam project. This large-scale facility will produce over 250,000 tonnes/year of eSAF (sustainable aviation fuel) using green hydrogen and imported methanol, contributing to Europe’s decarbonization goals and aligning with Honeywell’s energy transition portfolio.

The UK government has published its response to the Climate Change Committee’s 2024 Progress Report, outlining steps taken to accelerate net zero and meet climate targets. Key actions include lifting the onshore wind ban, approving major solar projects, launching Great British Energy (£125m funding announced for 2025-2026), delivering a record-breaking renewables auction, and investing £21.7bn in carbon capture and hydrogen industries. The UK also announced an ambitious 2035 NDC target to reduce greenhouse gas emissions by at least 81% compared to 1990 levels.

Indonesia-based PT Kilang Pertamina Internasional (KPI) has partnered with PT Gapura Mas Lestari (GML) to process 6,000 barrels per day of used cooking oil (UCO) at its Cilacap Green Refinery. This will produce approximately 300,000 kiloliters of Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF) annually, contributing to Indonesia’s cleaner energy goals and aligning with global sustainability objectives (SDG 7 and SDG 13).

The European Union Aviation Safety Agency (EASA) published a report on the state of the Sustainable Aviation Fuels (SAF) market in the EU in 2023. The report includes reference prices for different SAF types, an assessment of EU SAF production capacity, and an outline of emerging trends. The ReFuelEU Aviation Regulation mandates a minimum percentage of SAF blend with jet fuel, starting at 2% in 2025, increasing gradually to stimulate SAF production and reduce CO2 emissions.

US-based Oak Ridge National Laboratory (ORNL) and University of Illinois researchers have discovered a gene named 'Booster' in poplar trees that enhances photosynthesis and biomass growth by up to 200% in greenhouse conditions and 30% in field conditions. The discovery could significantly boost biofuel production efficiency and carbon capture capabilities. The gene has also shown success in other plant species, suggesting potential applications for improving crop yields without additional resource requirements.

The paper reviews green hydrogen production technologies, examining barriers and opportunities for sustainable development, with focus on water electrolysis, biomass gasification, and thermochemical processes.

Researchers developed an electrocatalytic process using RuPt/ACC catalyst to convert biomass-derived compounds into cycloalkanes under mild conditions, offering a renewable pathway for jet fuel production.

UK Transport Secretary Louise Haigh launched new Jet Zero Taskforce to tackle aviation emissions, with £450,000 investment in international aviation decarbonization and new SAF mandate requiring 22% sustainable jet fuel by 2040.