2024-08-07 11:25

Aug 7 (Reuters) - The U.S. Environmental Protection Agency has launched investigations into the supply chains of at least two renewable fuel producers amid industry concerns that some may be using fraudulent feedstocks for biodiesel to secure lucrative government subsidies. EPA spokesperson Jeffrey Landis told Reuters that the agency has launched audits over the past year, but declined to identify the companies targeted because the investigations are ongoing. The production of biodiesel from sustainable ingredients, like used cooking oil, can earn refiners a slew of state and federal environmental and climate subsidies, including tradable credits under a program administered by the EPA called the Renewable Fuel Standard. But fears have been mounting that some supplies labeled as used cooking oil are actually cheaper and less sustainable virgin palm oil, a product that is associated with deforestation and other environmental damage. The issue came into focus following a surge in used cooking oil exports from Asia in recent years that analysts have said involves unrealistically high volumes relative to the amount of cooking oil used and recovered in the region. The European Union is also investigating feedstocks over the fraud concerns. The EPA audits began after the agency updated domestic supply-chain accounting requirements in July 2023 for renewable fuel producers seeking to earn credits under the RFS, he said. "EPA has conducted audits of renewable fuel producers since July 2023 which includes, among other things, an evaluation of the locations that used cooking oil used in renewable fuel production was collected," he said. "These investigations, however, are ongoing and we are not able to discuss ongoing enforcement investigations." U.S. senators from farm states have called for more oversight of biofuel feedstocks, saying federal agencies should be as rigorous in verifying imports as they are auditing domestic supply chains. "The Biden administration has created vigorous standards to verify, not just trust, American producers, and it is imperative that the same scrutiny is applied to imported feedstocks," six U.S. senators, led by Roger Marshall and Sherrod Brown, wrote in a June 20 letter to federal agencies. Another letter from 15 senators to the Treasury Department on July 30 urged the administration to exclude imported feedstocks like UCO from an additional clean fuel tax credit program passed in the Inflation Reduction Act. Sign up here. https://www.reuters.com/business/energy/us-epa-says-it-is-auditing-biofuel-producers-used-cooking-oil-supply-2024-08-07/

2024-08-07 11:25

JAKARTA, Aug 7 (Reuters) - Indonesia has relaxed rules requiring electricity projects financed by foreign investors to include locally-made parts in an effort to unlock concessional loans from international development banks, a government official said on Wednesday. Indonesia has pledged to boost the proportion of renewables in its energy mix and foreign lenders have promised to provide funding, including more than $20 billion under the Just Energy Transition Partnership (JETP) led by the Group of Seven countries. But the disbursement of funding for renewable power projects in the country has remained limited, which analysts have blamed partly on the mandatory local content rules. Under a new regulation just announced, Jakarta will exempt projects that receive at least 50% funding from foreign multilateral or bilateral lenders from the local content rules, Rachmat Kaimuddin, deputy minister of maritime affairs and investment, said. "If we're using funds from development financing agencies that have different procurement rules, in which we are a member, we can follow an agreement that we set," Rachmat said, referring to the move to relax the local content rules, in a briefing for the electrical industry. "The reason we're doing this is we want concessionality from development financial institutions." The new regime will also allow solar power plant projects to use imported panels, provided the project operator obtains a ministerial approval, signs a power purchase agreement before the end of 2024 and the plant operates by the first half of 2026. The solar panels must also come from companies that commit to investing in a production facility in Indonesia. Under the previous rules, the minimum local content for solar power plants was 60%. Rachmat said more details on local content requirements will be announced soon, with thresholds varying for different power plants or projects. Indonesia's state utility Perusahaan Listrik Negara has a plan to expand renewables-sourced power capacity by 20.9 gigawatts between 2021 to 2030, according to its current business plan. That plan is under review and PLN has said it wants to further invest in renewables. Sign up here. https://www.reuters.com/sustainability/indonesia-eases-local-content-rules-access-foreign-cash-renewable-power-projects-2024-08-07/

2024-08-07 11:23

KAMPALA, Aug 7 (Reuters) - Uganda's central bank reduced its key lending rate by 25 basis points to 10.00% (UGCBIR=ECI) , opens new tab on Wednesday, saying a recovery in the shilling currency had led to an improvement in the inflation outlook. The shilling hit a record low in late February, but has risen by more than 6% against the U.S. dollar since then, meaning there is less risk that a recent rise in inflation will prove to be persistent. Inflation rose to 4.0% year-on-year in July (UGCPIY=ECI) , opens new tab, still below the central bank's 5% medium-term target but up from 2.8% in January. "The MPC (Monetary Policy Committee) noted that ... the adverse impact of the past external shocks has abated and there has been some progress in moderating risks of inflation persistence," Central Bank Deputy Governor Michael Atingi-Ego told a news conference. "The inflation projection has been revised slightly downwards relative to the June 2024 forecast ... largely due to a lesser depreciated shilling exchange rate." Atingi-Ego attributed the recent uptick in inflation to sectors such as passenger transport, accommodation, sports and recreation. He said the Bank of Uganda expected inflation to continue rising moderately in the next four months due to seasonal factors, but to stabilise around the target of 5% by the first quarter of 2025. At the bank's last monetary policy meeting in June it expected inflation to only stabilise around 5% in the second half of next year. Atingi-Ego noted there had been a pickup in Uganda's economic growth, which averaged 6.7% in annual terms in the last two quarters of fiscal year 2023/24 compared with 5.3% growth in the previous two quarters. The bank's growth forecast for the 2024/25 fiscal year that started in July remains unchanged, at between 6.0% and 6.5%. "It was appropriate to reduce slightly the degree of monetary policy restrictiveness," Atingi-Ego said. Sign up here. https://www.reuters.com/markets/rates-bonds/uganda-central-bank-lowers-key-rate-inflation-risks-ease-2024-08-07/

2024-08-07 11:22

Aug 7 (Reuters) - Impala Platinum (IMPJ.J) , opens new tab said on Wednesday it will report a basic loss of up to 17.8 billion rand ($972.39 million) after suffering $1 billion of impairments due to the decline in the value of its assets on the back of plunging metal prices. Impala said in a trading update that earnings for the year to June 30 had fallen due to lower revenue arising from a 34% decline in platinum group metal prices realised over the period. Basic earnings for the period were affected by impairments of 16.5 billion rand at Impala's flagship Rustenburg operations, 1.6 billion rand at Impala Canada and 686 million rand at the Mimosa joint venture with Sibanye Stillwater (SSWJ.J) , opens new tab in Zimbabwe. A further 987 million rand decline in the carrying value of assets was recognised at Impala's Two Rivers joint venture with African Rainbow Minerals (ARIJ.J) , opens new tab in South Africa. Impala said it expects headline earnings of between 1.9 billion rand and 2.8 billion rand, up to 90% lower than last year's 18.8 billion rand. Headline earnings were hurt by a once-off, non-cash charge of 1.9 billion rand arising from the implementation of a share-based empowerment transaction benefiting previously disadvantaged entities including Impala Bafokeng employees, communities and a Black-owned consortium of investors. Impala will publish its financial results on Aug.29. ($1 = 18.3054 rand) Sign up here. https://www.reuters.com/markets/commodities/impala-platinum-flags-1-bln-impairments-after-metal-price-plunge-2024-08-07/

2024-08-07 11:20

GDANSK, Aug 7 (Reuters) - BASF (BASFn.DE) , opens new tab on Wednesday warned that it has to delay the supply of some products after a fire broke out last week at its plant in Ludwigshafen, Germany. The deliveries of selected vitamin A, vitamin E, and carotenoid products as well as selected aroma ingredients will be delayed until further notice, the German chemicals giant added. Force majeure declarations are intended to suspend a company’s contractual liabilities for supply outages in the wake of disasters that lie beyond its control. Sign up here. https://www.reuters.com/markets/commodities/basf-declares-force-majeure-some-supplies-due-fire-2024-08-07/

2024-08-07 11:18

Aug 7 (Reuters) - Industrial materials maker Entegris Inc (ENTG.O) , opens new tab said on Wednesday it has entered into a long-term supply agreement with chipmaker ON Semiconductor (ON.O) , opens new tab to provide technological solutions to help manufacture silicon carbide (SiC)-based semiconductors. WHY IT'S IMPORTANT The surge in adoption of artificial intelligence applications has thrust semiconductor manufacturers into the spotlight. Chipmakers are among the top beneficiaries of the AI boom, with the iShares Semiconductor ETF (SOXX.O) , opens new tab gaining nearly 7% since the start of this year, following a 65% surge in 2023. CONTEXT Billerica, Massachusetts-based Entegris supplies advanced materials and processes for semiconductor and other high-tech industries. Its offerings include chemical mechanical planarization (CMP), a critical process used to remove surface irregularities from silicon wafers during chip manufacturing. The company counts major chipmakers such as Taiwan Semiconductor Manufacturing (2330.TW) , opens new tab and Samsung (005930.KS) , opens new tab among its clients. KEY QUOTES "Entegris is well-positioned to offer complementary solutions, such as specialty gases, precursors, and graphite, to meet Onsemi's needs across other semiconductor manufacturing processes," said Dann Woodland, president of Entegris’ Materials Solutions. MARKET REACTION Shares of ON Semiconductor were up 2.5% premarket. Sign up here. https://www.reuters.com/technology/entegris-inks-supply-deal-with-chipmaker-semiconductor-2024-08-07/