Kenya,Israel Inks 5-Year Energy Deal
Kenya and Israel have signed a five-year Memorandum of Understanding for cooperation in the Energy sector.
According to a report by Capital FM, the State of Israel will support Kenya’s efforts towards the production of sustainable renewable energy through capacity building for technical and offering professional support as well as sharing experiences of the latest cutting edge technology in the energy sector.
The report said the State of Israel would also help Kenya to minimise technical and commercial losses; a critical endeavour that would aid the government’s quest for accelerated access to clean, reliable, efficient and affordable energy.
Among the key highlights of the Memorandum are that Israel will share her experiences in the area of renewable power storage and grid stabilisation to improve output into the grid, build the country’s capacity by improving professional training schools and establishing collaboration with universities and colleges of human capital development.
Other areas of collaboration include solar and other renewable energy, power storage and grid management, biomass, energy efficiency, geothermal energy, electric power production and transmission, critical infrastructure protection and resilience, and any other area deemed appropriate by both parties, read part of the MOU.
Speaking during the function, the Cabinet Secretary for Energy and Petroleum, Opiyo Wandayi, thanked the government of Israel for extending the technical support that would aid the country’s pathway to 100 per cent transition to green energy.
“With the signing of this understanding, we have established a framework through which we will collaborate to facilitate and encourage cooperation in the energy sector as well as share expertise in renewable energy resources development, innovation to improve reliability and quality of the distribution network and utilization for economic growth that is based on principles of impartiality, equality, reciprocity and common interest,” he said.
The CS said Kenya is set to benefit immensely from Israel’s vast fountain on knowledge on renewable energy and cutting-edge technology as the modernization of the country’s energy infrastructure continues.
Israel’s Ambassador, Michael Lotem, on his part, said that with the deal, Isreal wiuld help Kenya set up a Centre of Excellence for energy where human capital will be honned for the country’s sustainability of the green energy.
“It is the only surest way to through which as a country you will sustain the transition to green power,” said the envoy.
Present at the ceremony were the Principal Secretary, State Department of Energy, Alex Wachira, among other senior ministry officials.
Source:https://energynewsafrica.com
PDVSA Revokes Authorization For Chevron To Export Venezuelan Oil
Venezuelan state-owned oil firm PDVSA has revoked authorizations to U.S. supermajor Chevron to load and export crude from Venezuela this month, following the Trump Administration’s increased sanctions on Venezuelan oil exports and tariffs on its oil buyers, Reuters reports, quoting sources familiar with the matter.
The Trump Administration has already revoked Chevron’s license to operate in Venezuela and export oil from its oilfields, with May 27 the deadline for Chevron to wind down its operations in the South American country.
U.S. President Donald Trump has also announced that any country that buys oil or gas from Venezuela will pay a 25% secondary tariff on trades with the United States.
The tariffs stalled trade between Venezuela and China, the biggest buyer of oil from Venezuela. However, loadings to China have resumed this week, according to Reuters’s sources.
The cancellations of the authorizations to Chevron by PDVSA are the first impact the U.S. supermajor sees from the U.S.-Venezuela standoff because the company has a license until May 27, allowing it to load crude in April.
Two of PDVSA’s cancellations were for tankers that have already loaded crude, so the oil will have to be returned to Venezuela’s ports, the sources told Reuters.
The Trump Administration has also revoked licenses for supermajors Shell and BP and their partners to operate natural gas projects offshore Venezuela that plan to send gas to Trinidad and Tobago, the Caribbean island’s Prime Minister Stuart Young has said.
Since taking office in January, President Trump has started to tighten the screws on Venezuelan oil industry and exports, revoking Chevron’s license and the licenses of the European firms to export crude from the South American country, which holds the world’s largest crude oil reserves.
The U.S. Treasury has revoked a license for French oil firm Maurel & Prom to operate in Venezuela and is no longer allowing firms including Eni and Repsol to receive oil from Venezuelan state oil firm PDVSA in lieu of payments.
Source: Oilprice.com
Nigeria: New Era For Nigeria’s Power Sector As NISO Board Takes The Helm
Nigeria has formally inaugurated the board and management of the newly created Nigerian Independent System Operator (NISO).
This marks the official unbundling of the Transmission Company of Nigeria (TCN) into two separate entities.
Under the new structure, the Transmission Service Provider (TSP) will oversee TCN’s physical infrastructure, including transmission towers, power lines, and substations.
Meanwhile, NISO will take charge of system operations, managing load allocation from generation companies to distribution companies and eligible customers.
Speaking at the induction ceremony organized by the Bureau of Public Enterprises, NISO’s Managing Director/CEO, Engr. Abdu Mohammed, stated that the company is committed to enhancing the reliability and stability of the national electricity grid.
He emphasized that the grid would be managed transparently and pragmatically, ensuring all operators adhere to the rules.
Mohammed explained that the national grid would be managed in a transparent and pragmatic manner, ensuring that all operators play by the rules.
“Our major role in the power industry is to bring the needed changes in the system that will enhance availability, reliability, and quality of supply of electricity to Nigerians. In addition to that, we’re supposed to create an atmosphere, an environment of transparency, discipline, and orderliness in electricity business in Nigeria, meaning that participants in generation, transmission, distribution, and eligible customers behave in a passionate manner in line with the provisions of the market rules and the grid code.
“The coming on board of the NISO Board of Management will usher these qualities that are required to make the power sector tick, just like other power sectors in bigger jurisdictions.
“Now it’s a journey. It’s not a one-off business. The beginning of the journey starts today. We begin today, and we’re going to hit the ground running. Tomorrow, we’re going to Oshogbo, the National Control Center, to make sure that our operators are aligned to our vision, mission, objectives, and goals as enshrined in the Electricity Act 2023”, he added.
With the grid proving very unreliable following a series of collapses and trippings, Engr. Mohammed said: “We understand the challenges in the industry, and we’re going to tackle them pragmatically and systematically. We’re going to deal with these problems, and gradually, with speed and quality, we shall ensure that Nigerians enjoy a steady, reliable electricity supply in the near future.”
President Bola Ahmed Tinubu had two weeks ago appointed Dr. Adesegun Akin-Olugbade as NISO Board board chairman, with Engineer Abdu Mohammed as Managing Director.
The President also appointed four Executive Directors: Engineer Nafisatu Asabe Ali for Systems Operation, Engineer Shehu Abba-Aliyu for Systems Planning, Dr. Edmund Eje for Market Operations, and Mr. Babajide Ibironke for Finance and Corporate Services.
The Non-Executive Directors include Engineer Lamu Audu, representing Generation; Mrs Folake Soetan for Distribution; Mr Tajudeen Giwa-Osagie as Market Expert; Engineer Sule Ahmed Abdulaziz for Transmission, and Alhaji Mahmuda Mamman, Permanent Secretary at the Federal Ministry of Power.
Source:https://energynewsafrica.com
Ghana: ECG PSP Faces Stiff Opposition From TUC, PUWU
The Government of Ghana’s plan to introduce private sector participation in the electricity retail sector of both Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo) has sparked opposition from the Trades Union Congress (TUC).
The TUC had vowed to resist complete privatization of ECG, prompting the Minister of Energy and Green Transition, Mr John Abdulai Jinapor, to clarify the stance of government.
According to him, government is seeking to involve Private Sector Participation (PSP) in the revenue collection section of ECG and NEDCo operations, in order to enhance revenue collection and improve efficiency in power distribution.
However, at a press conference on Thursday, April 10, 2025, which was addressed by Public Utilities Workers Union (PUWU), the group resolved that they do not want either a complete privatization or private sector participation in ECG or NEDCo.
The union acknowledged the challenges in ECG operations, notably financial burden due to take or pay contracts, revenue collection bottlenecks, high cost of electricity procurement, excessive political interferences in ECG’s management, appointment of board members without recourse to competence, but said these do not warrant private sector participation.
The union emphasised that ECG remains a critical national asset, essential for driving Ghana’s economic development, ensuring national sovereignty and energy security, and fostering social equity.
“While the challenges facing ECG are significant, ranging from political interference to operational inefficiencies, privatization/PSP is not a viable or sustainable solution,” the union members said.
They argued that historical failures of privatization efforts in Ghana and across Africa demonstrate that surrendering public utilities to private investors often exacerbates existing inefficiencies, compromises national sovereignty, creates unemployment, implicates labour rights, and threatens energy security.
The union shared the view that addressing ECG’s challenges requires targeted reforms that would tackle the root causes of inefficiencies, such as depoliticizing management, enhancing accountability, and implementing effective controls in the energy value chain.
They further stressed the urgent need for renegotiation of Independent Power Purchase contracts from take-or-pay to take-and-pay, competent and merit-based appointments, ECG’s participation in the SHEP implementation, and the modernization of infrastructure can transform ECG into a financially viable and operationally efficient entity.
Instead of giving out ECG and NEDCo to private entities, they suggested that the Government of Ghana should give opportunities to ECG and also allow the company to borrow from the capital market to provide the necessary capital to strengthen the company’s operations while maintaining public ownership.
They called on government to prioritize the long-term interest of its citizens by ensuring that ECG remains under public control to guarantee affordable and equitable access to electricity, preserves national sovereignty, protects jobs, and supports broader socio-economic development.
Source:https://energynewsafrica.com
EU Countries Back Plan To Soften Gas Storage Rules Before Winter
European Union countries on Friday backed looser rules on filling gas storage ahead of winter, amid concerns that the bloc’s current binding regime inflates gas prices.
The EU’s gas storage rules were introduced in 2022 to ensure EU countries had a buffer of stored fuel during winter, after Russia cut gas deliveries, sending Europe’s gas prices soaring.
Ambassadors from EU countries approved the planned changes in a meeting on Friday, the council of the EU said in a statement.
The changes would let countries deviate by 10 percentage points from the EU’s requirement to fill gas storage to 90% of capacity ahead of winter, if market conditions are unfavourable.
The existing regime includes a binding commitment to fill storage to 90% capacity by November 1 this year. Countries agreed to keep this binding goal, but proposed amending its deadline to allow them to reach it at any time between October 1 and December 1.
Countries must now negotiate the final rules with the European Parliament. Negotiations are due to begin in May.
The changes will apply to EU filling targets for 2026 and 2027. They will also amend this year’s November target if countries and lawmakers approve them before that date.
Countries, including Germany, France and the Netherlands, have warned that the rules inflate gas prices by signalling to market participants when European buyers need to buy large volumes.
The negotiating stance backed by EU member countries would also let them deviate by an extra five percentage points from the 90% target in certain circumstances – for example, if technical constraints mean a storage facility takes more than 115 days to fill.
Countries also want to make voluntary the EU’s binding intermediate filling targets for the months leading up to November.
Industry group Eurogas urged policymakers to finalise the changes by July. The group said in a statement that uncertainty over the rules “creates additional challenges for market operators in making informed decisions regarding storage filling”.
Benchmark EU gas prices have tumbled since February, retreating to a near-nine-month low this week, in reaction to concerns of the economic fallout from U.S. President Donald Trump’s trade war, as well as the push from EU countries to ease storage-filling targets.
Source: Reuters
Ghana: PURC Announces 14.75% And 4.02% Increases In Electricity And Water Tariffs
The Public Utilities Regulatory Commission (PURC) has announced increases of 14.75% and 4.02% for electricity and water utilities tariffs, respectively, for the second quarter of 2025, effective May 3. The announcement follows the conclusion of the Commission’s Board meeting to discuss the quarterly tariff review on Friday, April 11, 2025.
Key factors that influence electricity tariff reviews include the exchange rate, inflation, Weighted Average Cost of Gas (WACOG), generation mix, and the cost of fuel and natural gas.
In a statement issued by Dr. Shafic Suleman, the Commission said a key variable factor that contributed significantly to the 2025 quarterly tariff adjustment was an inevitable attempt to pay half (50%) of an outstanding revenue of Gh¢976 million carried over from the previous three quarters of 2024.
The Commission emphasised that the remaining 50% will be spread over the subsequent quarters of the year.
“For the second quarter of 2025, a Weighted Average Exchange Rate of GHS 15.6974 to the USD was used for computation of the tariffs. This implied an under-recovery of GHS 0.1700 from the last quarter review in 2024.
“The Commission used an average three-month projected inflation rate of 22.49% for the second quarter of 2025.
“The applicable Weighted Average Cost of Gas (WACOG) for the second quarter of 2025 is USD 7.6289/MMBtu. This figure dropped from USD 7.8368/MMBtu, which was applied in the third quarter of 2024. The projected hydro-thermal generation mix for the quarter under review is 28.80% for Hydro and 71.20% for Thermal,” the Commission explained.
Source:https://energynewsafrica.com
In a statement issued by Dr. Shafic Suleman, the Commission said a key variable factor that contributed significantly to the 2025 quarterly tariff adjustment was an inevitable attempt to pay half (50%) of an outstanding revenue of Gh¢976 million carried over from the previous three quarters of 2024.
The Commission emphasised that the remaining 50% will be spread over the subsequent quarters of the year.
“For the second quarter of 2025, a Weighted Average Exchange Rate of GHS 15.6974 to the USD was used for computation of the tariffs. This implied an under-recovery of GHS 0.1700 from the last quarter review in 2024.
“The Commission used an average three-month projected inflation rate of 22.49% for the second quarter of 2025.
“The applicable Weighted Average Cost of Gas (WACOG) for the second quarter of 2025 is USD 7.6289/MMBtu. This figure dropped from USD 7.8368/MMBtu, which was applied in the third quarter of 2024. The projected hydro-thermal generation mix for the quarter under review is 28.80% for Hydro and 71.20% for Thermal,” the Commission explained.
Source:https://energynewsafrica.com Oil Prices Drop As China Retaliates With 125% Tariff On U.S. Goods
China hit back at the U.S. tariffs by raising on Friday the Chinese tariff on U.S. goods to 125% from 84% earlier, escalating the U.S.-China standoff.
“The U.S. imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense and is completely unilateral bullying and coercion,” China’s Finance Ministry said in a statement.
Oil prices, which had been climbing before China’s announcement, dropped in response to the news. At the time of writing, both WTI and Brent were in the red at $59.91 and $63.16, respectively.
U.S. President Donald Trump backed down earlier this week from a full-blown trade war with the entire world and announced a 90-day pause in the planned tariffs on all countries.
However, China remained in the crosshairs of the Trump Administration, which continued to impose higher and higher tariffs on imports from China.
The U.S. Administration had signaled that countries would be “rewarded” if they did not retaliate.
On Friday, China retaliated and hiked its tariff to 125% for U.S. goods.
“Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy,” according to a CNBC translation of a statement from the Customs Tariff Commission of the Chinese State Council. While equity markets took a breather with a short-lived relief rally after the 90-day tariff pause, oil prices continued to be hammered by the U.S.-China trade and tariff tit-for-tat as investors fear economic downturns would dent demand for oil. Early on Friday in Asian trade, crude oil prices were on track to book their second consecutive weekly loss as markets reel from President Trump’s tariff offensive. “While the pause offers some relief to markets, there’s still plenty of uncertainty on the trade front,” ING commodity analysts Warren Patterson and Ewa Manthey wrote in a note on Thursday. “This uncertainty is still likely to drag on global growth, which is clearly a concern for oil demand. Still, conditions are not looking as bad as they were just a few days ago.” Source: https://energynewsafrica.comThe Gambia Launches Technical Working Group For National Deep Decarbonization Pathways
The Gambia’s Ministry of Petroleum, Energy and Mines has launched a Technical Working Group (TWG) to develop the country’s National Deep Decarbonization Pathways (NDDPs), a crucial step towards transitioning to a low-carbon energy sector.
The TWG will collaborate with STANTEC, a consulting firm, to design NDDPs for The Gambia’s energy sector.
The Deputy Permanent Secretary of the Ministry of Petroleum, Energy and Mines, Mrs. Mansata M. Darboe said TWG will be responsible for codesigning the NDDPs and providing requested data and guidance to the consultant on the country-specific priorities.
This plan aims to support African member states in developing their national energy transition and decarbonization pathways.
The primary goal of this initiative is to support The Gambia’s transition to a low-carbon energy sector, aligning with global efforts to limit global warming to 2°C or less.
The NDDPs will provide a roadmap for the country’s energy sector transformation, ensuring sustainable development and reduced greenhouse gas emissions.
The Deep Decarbonization Pathways initiative is a global effort, with similar projects implemented in 35 countries across all continents.
Source:https://energynewsafrica.com
This plan aims to support African member states in developing their national energy transition and decarbonization pathways.
The primary goal of this initiative is to support The Gambia’s transition to a low-carbon energy sector, aligning with global efforts to limit global warming to 2°C or less.
The NDDPs will provide a roadmap for the country’s energy sector transformation, ensuring sustainable development and reduced greenhouse gas emissions.
The Deep Decarbonization Pathways initiative is a global effort, with similar projects implemented in 35 countries across all continents.
Source:https://energynewsafrica.com The Gambia: NAWEC Announces Emergency Power Shutdown In Banjul
The National Water and Electricity Company (NAWEC) has announced an emergency power shutdown in Banjul, effective Thursday, April 10, from 12:00 PM to 6:00 PM, affecting residents and businesses.
According to NAWEC, the shutdown is necessary to facilitate critical emergency maintenance work on both outgoing lines from Karpowership.
“This maintenance requires both engines to be temporarily taken offline during the shutdown period,” a statement issued by NAWEC said.
The company assured the public that its teams are working diligently to complete the work as quickly and safely as possible.
“Efforts will be made to minimize the impact on affected areas,” NAWEC said.
The company apologised for any inconvenience caused and appreciated the public’s patience and understanding during this time.
Source:https://energynewsafrica.com
Zambia: Gov’t Takes Delivery Of First Diesel Consignment Under Tazama Open Access System
Key Details
The Ministry celebrated this milestone, stating that it represents a significant achievement in implementing the TAZAMA Open Access system.
This system fosters equitable and transparent access to pipeline infrastructure for multiple importers.
“We are encouraged by the high level of professionalism, coordination, and dedication demonstrated by all teams involved in this critical process,” the Ministry said.
The Ministry acknowledges the efforts of the Energy Regulation Board, TAZAMA Pipelines Limited, participating importers, and technical teams for their collaboration and commitment to ensuring the smooth execution of the Open Access Framework.
The Ministry remains committed to advancing strategic reforms that foster long-term improvements in the energy sector and contribute to the sustainable development of the nation.
Source:https://energynewsafrica.com
- The MT ISABELLA vessel arrived on March 31 and began discharging into Tazama storage tanks on April 5, concluding on April 8, 2025, at 19:45 hours local time.
- The first diesel consignment was imported by three companies: Titanium Oil Corporation/ADNOC Joint Venture, Boltt Global Solutions Limited, and Indeni Energy Company Limited.
The Ministry celebrated this milestone, stating that it represents a significant achievement in implementing the TAZAMA Open Access system.
This system fosters equitable and transparent access to pipeline infrastructure for multiple importers.
“We are encouraged by the high level of professionalism, coordination, and dedication demonstrated by all teams involved in this critical process,” the Ministry said.
The Ministry acknowledges the efforts of the Energy Regulation Board, TAZAMA Pipelines Limited, participating importers, and technical teams for their collaboration and commitment to ensuring the smooth execution of the Open Access Framework.
The Ministry remains committed to advancing strategic reforms that foster long-term improvements in the energy sector and contribute to the sustainable development of the nation.
Source:https://energynewsafrica.com South Africa: Eskom Warns Vandalism Remains A Significant Threat To Continuous Electricity Supply And Public Safety, Losing $11.2 Million In A Year
Key Findings
“We urge communities to play a role in safeguarding the infrastructure that delivers electricity to their homes and businesses,” says Monde Bala, Eskom’s Group Executive for Distribution in a statement issued on Wednesday, April 9,2025.
“Reliable electricity is essential for daily life, preserving food, cooking, heating, lighting, and enabling children to study after dark. Protecting this infrastructure is a shared responsibility,” Monde added.
Vandalism results in unplanned power outages, often leaving homes and businesses without electricity for extended periods.
The restoration process can be prolonged, particularly when essential infrastructure such as transformers or high-voltage breaker components is damaged, as these items can take weeks to replace.
Although Eskom has seen a reduction in these crimes due to increased collaboration with law enforcement agencies and improved security measures, the problem persists and remains unacceptable.
“We cannot continue to lose members of our communities to these preventable incidents,” concludes Bala.
“Everyone must remain vigilant, report suspicious activities, and reject the notion that vandalism is an acceptable means of survival.”
Source: https://energynewsafrica.com
- Infrastructure vandalism and theft have cost Eskom approximately R221 million ($11,206,086.21) year-to-date (April 1, 2024, to February 2025), down from R271 million ($13,741,399.84) in the same period the previous year.
- Eskom commends the South African Police Service (SAPS) for its recent intelligence-driven operation, which led to the arrest of six suspects found in possession of Eskom property valued at R1.5 million.
- The suspects appeared in the Ngwelezane Magistrate’s Court on April 7, 2025.
“We urge communities to play a role in safeguarding the infrastructure that delivers electricity to their homes and businesses,” says Monde Bala, Eskom’s Group Executive for Distribution in a statement issued on Wednesday, April 9,2025.
“Reliable electricity is essential for daily life, preserving food, cooking, heating, lighting, and enabling children to study after dark. Protecting this infrastructure is a shared responsibility,” Monde added.
Vandalism results in unplanned power outages, often leaving homes and businesses without electricity for extended periods.
The restoration process can be prolonged, particularly when essential infrastructure such as transformers or high-voltage breaker components is damaged, as these items can take weeks to replace.
Although Eskom has seen a reduction in these crimes due to increased collaboration with law enforcement agencies and improved security measures, the problem persists and remains unacceptable.
“We cannot continue to lose members of our communities to these preventable incidents,” concludes Bala.
“Everyone must remain vigilant, report suspicious activities, and reject the notion that vandalism is an acceptable means of survival.”
Source: https://energynewsafrica.com Gambia: NAWEC Commissions New Switching Station In Farafenni To Enhance Power Reliability
The Gambia’s National Water and Electricity Company (NAWEC) has commissioned and energized the newly constructed switching station in Farafenni, North Bank Region. This achievement marks a significant milestone under the GERMP Backbone Access Project Phase 2, financed by the European Investment Bank (EIB), European Union (EU), and World Bank (WB).
According to NAWEC, the new switching station is a critical upgrade that enables improved power distribution, system flexibility, and reduced losses across the region. Prior to this development, the network relied on a 33kV line with limited capacity and significant constraints.
“The new infrastructure allows for efficient power importation and facilitates easier isolation during faults or maintenance, enhancing reliability for residents and businesses from Farafenni to Kerewan and Barra/Amdalai,” NAWEC said.
“This new infrastructure, implemented through NAWEC’s Project Implementation Unit, significantly enhances power reliability across the North Bank Region, ensuring quality delivery and timely execution.”
Commissioning works were completed on April 7, 2025, and electricity supply has been fully restored to all affected areas.
NAWEC says it will continue to monitor the system to maintain stability and optimal performance.
Source:https://energynewsafrica.com
UK: Gov’t Investigating Claims Green Fuel Contains Virgin Palm Oil
The UK government is investigating a fast-growing “green fuel” called HVO diesel amid claims of significant fraud, the BBC has learned.
HVO is increasingly popular as a transport fuel and for powering music festivals and its backers say it can curb carbon emissions by up to 90% as it can be made from waste materials like used cooking oil.
But industry whistleblowers told the BBC they believe large amounts of these materials are not waste but instead are virgin palm oil, which is being fraudulently relabelled.
And data analysed by the BBC and shared with the UK’s Department for Transport casts further doubt on one of the key ingredients in HVO, a material called palm sludge waste.
Europe used more of this waste in HVO and other biofuels in 2023 than it is thought possible for the world to produce.
In response to the BBC’s findings, the Department for Transport said they “take the concerns raised seriously and are working with stakeholders and international partners to gather further information”.
HVO, or hydrotreated vegetable oil, has been called something of a wonder-fuel in recent years as it can be used as 100% substitute for diesel reducing planet warming emissions.
UK consumption rocketed from 8 million litres in 2019 to about 699 million litres in 2024, according to provisional government figures.
Its green credentials rely heavily on the assumption that it is made from waste sources, particularly used cooking oil or the waste sludge from palm oil production.
But industry whistle-blowers have told the BBC that they believe virgin palm oil and other non-waste materials are often being used instead.
That would be bad news for the planet, as virgin palm oil is linked to increased tropical deforestation, which adds to climate change and threatening endangered species like orang-utans.
This palm oil “floods the market like cancer,” one large European biofuel manufacturer told the BBC.
They said that to stay in business they have to go along with the pretence that they are using waste materials.
Another whistle-blower, a former trader of these biofuels, also speaking anonymously, gave the BBC his account of one recent case dealing with supposedly waste products.
“I believe that what I bought was multiple cargos of virgin palm oil that has been wrongly classified as palm oil sludge,” they said.
“I called one of the board members and told them about the situation, and then I was told that they didn’t want to do anything about it, because the evidence would be burned.”
As well as this testimony, data compiled by campaign group Transport & Environment and analysed by the BBC suggests that more palm sludge waste is being used for transport biofuels than the world is probably able to produce.
The figures show that the UK and EU used about two million tonnes of palm sludge waste for HVO and other biofuels in 2023, based on Eurostat and UK Department for Transport figures.
EU imports of this sludge appear to have risen further in 2024, according to preliminary UN trade data, although the UK appears to have bucked this trend.
But the data analysed by the BBC, which is based on well-established UN and industry statistics, suggests the world can only produce just over one million tonnes of palm sludge waste a year.
This mismatch further suggests non-waste fuels such as virgin palm oil are being used to meet Europe’s rapid growth in biofuels, according to researchers and industry figures.
“It’s a very easy game,” said Dr Christian Bickert, a German farmer and editor with experience in biofuels, who believes that much of the HVO made with these waste products is “fake”.
“Chemically, the sludge and the pure palm oil are absolutely the same because they come from the same plant, and also from the same production facilities in Indonesia,” he told BBC News.
“There’s no paper which proves [the fraud], no paper at all, but the figures tell a clear story.”
Underpinning the sustainability claims of biofuels is an independent system of certification where producers have to show exactly where they get their raw materials from.
It is mainly administered by a company called ISCC, and in Europe it has a long-standing reputation for ensuring that waste materials turned into fuel really do come from waste, by working with national authorities.
But in Indonesia, Malaysia and China, three of the main sources of the raw ingredients claimed to be waste for HVO, supervision is much more difficult.
“ISCC is simply not allowed to send anybody to China,” said Dr Christian Bickert.
“They have to rely on certification companies in China to check that everything is OK, but China doesn’t allow any inspectors in from outside.”
This concern is echoed by several other groups contacted by the BBC.
Construction giant Balfour Beatty, for example, has a policy of not using the fuel, citing sustainability concerns.
“We just are not able to get any level of visibility over the supply chain of HVO that would give us that level of assurance that this is truly a sustainable product,” Balfour Beatty’s Jo Gilroy told BBC News.
The European Waste-based and Advanced Biofuels Association represents the major biofuel manufacturers in the EU and UK.
In a statement they said “there is a major certification verification issue that needs to be addressed as a matter of priority”, adding that the “ISCC should do much more to ensure that non-EU Biodiesel is really what it claims to be”.
In the light of growing fraud allegations, the Irish authorities have recently restricted incentives for fuels made from palm waste.
The BBC also understands that the EU is about to propose a ban on ISCC certification of waste biofuels for two-and-a-half years, although it is expected to say it is not aware of direct breaches of renewable goals.
It would then be up to individual member countries to decide whether to accept certifications.
In response, the ISCC said it was “more than surprised” by the EU’s move, adding that it had been “a frontrunner in implementing the strictest and effective measures to ensure integrity and fraud prevention in the market for years”.
“The measure would be a severe blow to the entire market for waste-based biofuels,” it said.
Source: BBC.com
Trump Revokes Oil Majors’ Gas Project Licenses Offshore Venezuela
The Trump Administration has revoked licenses for oil supermajors Shell and BP and their partners to operate natural gas projects offshore Venezuela that plan to send gas to Trinidad and Tobago, the Caribbean island’s Prime Minister Stuart Young has said.
Since taking office in January, U.S. President Trump has started to tighten the screws on Venezuelan oil industry and exports, revoking Chevron’s license and the licenses of the European firms to export crude from the South American country, which holds the world’s largest crude oil reserves.
The U.S. Treasury has revoked a license for French oil firm Maurel & Prom to operate in Venezuela and is no longer allowing firms to receive oil from Venezuelan state oil firm PDVSA in lieu of payments.
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has issued a wind-down license until May 27, 2025, authorizing M&P, Spain’s Repsol, and Italy’s Eni to undertake transactions necessary to conclude operations previously covered under the now-revoked license.
Now the withdrawal of the licenses has hit BP and Shell for two gas fields in Venezuelan waters that the supermajors plan to develop with Trinidad and Tobago and its National Gas Company (NGC).
The U.S. Treasury in early 2023 granted a license to Trinidad and Tobago, allowing the Caribbean nation to develop the Dragon gas field offshore Venezuela in partnership with Shell and do business related to the gas field with Venezuela’s state oil firm PDVSA.
The importance of energy security for Trinidad and Tobago was one of the reasons why the U.S. granted the initial license—to boost the energy security in the Caribbean basin.
But now the licenses for the Dragon field with Shell’s participation and the Cocuina-Manakin project involving Trinidad and Tobago and BP are revoked by the Trump Administration, making Trinidad and Tobago more vulnerable to a decline in its gas production.
Prime Minister Young said Trinidad and Tobago would seek a meeting with representatives of the U.S. Administration to pitch the importance of the gas projects for Trinidad.
Source: oilprice.com