Idemitsu Launches First Chemical Recycling Plant in Japan

News Japan’s Idemitsu builds chemical recycling plant Tokyo, 19 January (Argus) — Japanese refiner Idemitsu has completed construction of its first chemical recycling plant as part of efforts to promote a circular economy in the plastic industry. Idemitsu's subsidiary Chemical Recycle Japan (CRJ) has finished the construction of plastic recycling facilities at its Ichihara plant, neighbouring Idemitsu's Chiba plant in eastern Japan, the companies said on 19 January. Construction was completed in December 2025, and Idemitsu plans to begin commercial operations at the new chemical recycling plant in April 2026. The Ichihara facility can process 20,000 t/yr of plastic waste and produce around 14,000 t/yr of recycled oil. CRJ's facilities use catalysts to break down plastic waste into recycled oil. The resulting product is equivalent to light crude and contains no heavy distillates or wax, the companies said. Idemitsu plans to blend the recycled oil with conventional oil and use it at the existing refining and petrochemical units, aiming to add environmental value to selected chemical products. Plastics made from the recycled oil are expected to cost about three times more than conventional crude-derived plastics at the current plant scale, CRJ said. The company aims to expand capacity over time and eventually reduce the cost to less than twice that of conventional plastics, it added. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved. News API, ethanol groups clinch deal on US biofuel bill New York, 17 January (Argus) — The American Petroleum Institute (API) and ethanol groups have agreed on reforms to US biofuel policy that they would like to see, teeing up a last-minute lobbying campaign to get the provisions included in federal budget legislation this month. API and ethanol supporters that include the Renewable Fuels Association and Growth Energy have aligned around limiting refineries' future exemptions from biofuel mandates and making some changes to a bipartisan bill that would permit a higher-ethanol gasoline blend, according to four people familiar with the deal and draft text shared with Argus . The groups' final framework — which they will pitch to lawmakers in the hopes of swiftly adding it to government spending bills this month — would authorize sales of up to 15pc ethanol gasoline (E15) year-round. Summertime sales of ethanol blends above 10pc are restricted in most of the US because of rules meant to minimize smog. If passed into law, the deal would be a major victory for ethanol producers who have long claimed wider access to the typically-cheaper blend would benefit farmers and drivers alike. Oil majors have grown more comfortable with E15 too, preferring consistent nationwide rules to costly workarounds like a looming shift in the midcontinent to a boutique fuel blend that would allow more ethanol. While the E15 fix would take effect immediately, the energy groups want to keep existing rules around biofuel quotas and exemptions in place through 2027. Under the current system, the Environmental Protection Agency (EPA) requires oil companies to blend minimum volumes of biofuels while allowing hardship exemptions for some small refineries that annually process no more than 75,000 b/d of crude. Starting in the 2028 compliance year, relief would be awarded only to companies that process 75,000 b/d or less across all their refineries and that also maintain that eligibility each year. These smaller facilities would win automatic 75pc exemptions from biofuel quotas starting in 2028 without having to apply each year, effectively ending discretion for regulators to choose which refineries deserve exemptions. Under the proposal, EPA starting in 2028 also would not require larger oil companies blend more biofuels to offset exemptions granted to their smaller rivals. This longer phase-in would address concerns from some energy lobbyists that more immediate changes could delay EPA's work to finalize new blend mandates. The agency wants to finalize new blend quotas for 2026 and 2027 in the coming weeks. Fuel fight The draft bill's text could change as lobbyists pitch the agreement to lawmakers and try to minimize backlash from oil refiners, people familiar with the matter said. But there is little time for more negotiations, with advocates of the deal pushing Congress to include it in legislation to fund government agencies after 30 January. Lawmakers have expressed similar urgency. There may be "news soon" on updates to the existing E15 bill draft, bill sponsor and US senator Deb Fischer (R-Nebraska) said in an online interview with Brownfield Ag News this week. The current deal would be a substantial blow to refiners that have won exemptions for small units in the past but run too many larger facilities to qualify under the proposed rules, including independent refiners Delek and Par Pacific. Other merchant refiners worry that the biofuel lobby will use wider ethanol access as a pretext to push for higher blend mandates in future years, which they say risks refinery closures. The American Fuel & Petrochemical Manufacturers chief executive told Argus this week that his refinery members were divided over E15 talks. API had surprised its traditional oil refining allies last year by teaming up with ethanol interests on a larger biofuel policy package . Other biofuel producers have long wanted tighter restrictions on hardship waivers than the latest deal, another hiccup for negotiations. Particularly controversial among farm advocates is a holdover provision from the current E15 bill to grant some small refiners active credits they can use toward future mandates. API, the Renewable Fuels Association and Growth Energy as well as chief Senate bill sponsors Fischer and Shelley Moore Capito (R-West Virginia) did not immediately reply to requests for comment. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved. News Trump threatens 10pc tariff against UK, EU members Houston, 17 January (Argus) — President Donald Trump on Saturday threatened to impose a 10pc tariff on US imports from the UK and seven key members of the EU, citing their participation in a military mission in Denmark's Greenland territory, which he is threatening to annex. US imports from the UK, Denmark, Finland, France, Germany, The Netherlands, Norway and Sweden would be subject to a 10pc tariff from 1 February, rising to a 25pc tariff from 1 June, Trump announced via his social media platform. The tariff would remain in place until "such time as a Deal is reached for the Complete and Total purchase of Greenland", Trump said. Trump has stepped up discussion of taking over Greenland — a self-governing island under Denmark's control — following a US special forces raid that captured Venezuelan president Nicolas Maduro on 3 January. Denmark and Greenland have rejected US overtures to buy the island, as well as Trump's threat to take over the island by force. Trump is citing Greenland's alleged lack of military protection as the latest justification for his threats. He has denigrated Denmark's commitment to the island's defense against alleged threats from Russia and China. "They currently have two dogsleds as protection, one added recently," Trump said on Saturday. Denmark's foreign minister Lars Lokke Rasmussen, who traveled to Washington on 14 January to meet Trump administration officials, pushed back against that accusation. "Denmark has already stepped up our own contribution by committing additional funds for military capabilities — not [dogsleds], but ships, drones, fighter jets," Rasmussen said. The countries threatened with new tariffs by Trump joined Denmark to dispatch troops and military experts to Greenland on a mission to assess the island's security needs. Trump on Saturday said that the reconnaissance mission "journeyed to Greenland, for purposes unknown." EU leaders expressed solidarity with Denmark and called for dialogue, but they omitted mention of possible retaliation if Trump makes good on his threat to impose new tariffs. "Tariffs would undermine transatlantic relations and risk a dangerous downward spiral," European Council president Antonio Costa and European Commission president Ursula von der Leyen said in response to Trump's post. "Europe will remain united, coordinated, and committed to upholding its sovereignty." "Applying tariffs on allies for pursuing the collective security of Nato allies is completely wrong," UK prime minister Keir Starmer said on Saturday. "We will of course be pursuing this directly with the US administration." US imports from the UK already are subject to a 10pc import tariff, and imports from the EU face a 15pc tariff. While Trump is threatening tariffs against seven out of 27 EU members, the bloc collectively negotiates trade matters and sets tariffs. Trump is scheduled to attend the Davos Economic Forum in Switzerland on 21-22 January. A bipartisan delegation of 11 US senators and members of the House of Representatives traveled to Copenhagen on 16 January to express support for Denmark's government and push back against Trump's designs on Greenland. "There is no need, or desire, for a costly acquisition or hostile military takeover of Greenland when our Danish and Greenlandic allies are eager to work with us on Arctic security, critical minerals and other priorities under the framework of long-standing treaties," said US senators Jeanne Shaheen (D-New Hampshire) and Thom Tills (R-North Carolina), who were part of the congressional delegation. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved. News India's Essar plans SAF, HVO plant in 2028-29 Singapore, 16 January (Argus) — India's Essar Future Energy, part of Indian conglomerate Essar Global Fund, plans to build a 800,000 t/yr hydrotreated biofuels plant in India, projected to start operations between the second half of 2028 and early 2029. The plant will be located in the Gujarat state's Devbhumi Dwarka district and is expected to reach a final investment decision (FID) in the next few months, its chief commercial officer Nikunj Nangalia told Argus . It aims to process 1mn t/yr of hydrotreated esters and fatty acids (HEFA) feedstocks to produce around 800,000 t/yr of sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO), Nangalia said. The facility will consume fats, oils and greases as feedstock, primarily used cooking oil (UCO) from both domestic sources and imports from main UCO markets abroad. But Essar is also considering other feedstocks like tallow, palm oil mill effluent (Pome) oil and non-edible oils, Nangalia said. The SAF and HVO produced will have both ISCC EU and Corsia certification. A large part of the product will be shipped to the UK for captive consumption in Essar's Stanlow refinery, where it will be blended with fossil jet and diesel and supplied to the market to meet UK renewables targets. The remaining volumes will be exported to other destinations and supplied in India when SAF mandates come in, Nangalia said. India aims to achieve 1pc of SAF usage in international flights by 2027 , to rise to 2pc by 2028 and 5pc by 2030. The facility will require a 51bn rupees (US$566mn) initial investment, and subsequent capital injections in phases to total an estimated $1bn in capital expenditure over the next few years. This includes other required infrastructure such as pipeline logistics to ports, water treatment facilities and more. Essar Future Energy's chief executive Vibhav Agarwal signed an initial agreement with the Gujarat government this week to get approval to build the facility. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.