Asia’s lack of biofuels demand hinders investments – Exxon exec – Reuters.
An absence of biofuels demand in Asia-Pacific is making it exhausting for firms to justify pumping billions of {dollars} into tasks within the area, an ExxonMobil govt mentioned regardless of rising decarbonisation efforts worldwide.
Irtiza Sayyed, president of ExxonMobil’s low carbon options Asia-Pacific, mentioned at a convention throughout Singapore Worldwide Vitality Week:
The fact in Asia Pacific right here, what we’re discovering is that there isn’t sufficient demand for biofuels.
“From an business perspective, we’ve recognized numerous provide sources, however they’re not significant and materials sufficient to justify billions of {dollars} value of investments,” Sayyed added.
Biofuels, touted as one of many low-carbon options to gas airplanes and ships, are pricey to provide with restricted feedstock choices.
In Singapore, Shell earlier this yr paused a biofuels venture. Nevertheless, Finnish producer Neste has accomplished an enlargement at its plant within the metropolis state, boosting its sustainable aviation gas capability by as much as 1 million metric tons per yr.
Sayyed mentioned extra communication is required between the aviation and transport sectors to assist the expansion of provide from the biofuel sector.
The usage of biofuels, ethanol and biodiesel continues to extend globally. However utilization stays concentrated in a small variety of markets, usually necessary agricultural ones together with america, Brazil, India and Thailand, which may result in a surplus of biofuel feedstocks, BMI Analysis analysts mentioned in a shopper report. (Reporting by Trixie Yap; Modifying by Kirsten Donovan).
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Asia’s lack of biofuels demand hinders investments – Exxon exec, SINGAPORE, October 23, 2023
