AGL 37.72 Decreased By ▼ -0.28 (-0.74%)
AIRLINK 131.31 Decreased By ▼ -5.38 (-3.94%)
BOP 5.45 Increased By ▲ 0.03 (0.55%)
CNERGY 3.74 Decreased By ▼ -0.09 (-2.35%)
DCL 7.37 Decreased By ▼ -0.22 (-2.9%)
DFML 44.25 Decreased By ▼ -1.80 (-3.91%)
DGKC 79.75 Decreased By ▼ -0.60 (-0.75%)
FCCL 28.08 Increased By ▲ 0.05 (0.18%)
FFBL 54.35 Decreased By ▼ -0.86 (-1.56%)
FFL 8.55 Decreased By ▼ -0.03 (-0.35%)
HUBC 101.46 Decreased By ▼ -11.19 (-9.93%)
HUMNL 12.25 Decreased By ▼ -0.08 (-0.65%)
KEL 3.78 Decreased By ▼ -0.07 (-1.82%)
KOSM 7.02 Decreased By ▼ -1.05 (-13.01%)
MLCF 35.50 Increased By ▲ 0.39 (1.11%)
NBP 64.94 Decreased By ▼ -1.06 (-1.61%)
OGDC 171.85 Increased By ▲ 0.69 (0.4%)
PAEL 24.85 Decreased By ▼ -0.33 (-1.31%)
PIBTL 6.20 No Change ▼ 0.00 (0%)
PPL 132.10 Decreased By ▼ -0.75 (-0.56%)
PRL 24.49 Increased By ▲ 0.09 (0.37%)
PTC 14.18 Decreased By ▼ -0.34 (-2.34%)
SEARL 57.65 Decreased By ▼ -1.30 (-2.21%)
TELE 6.95 Decreased By ▼ -0.14 (-1.97%)
TOMCL 34.27 Decreased By ▼ -0.73 (-2.09%)
TPLP 7.77 Decreased By ▼ -0.32 (-3.96%)
TREET 14.04 Decreased By ▼ -0.26 (-1.82%)
TRG 44.60 Decreased By ▼ -0.99 (-2.17%)
UNITY 25.22 Decreased By ▼ -0.77 (-2.96%)
WTL 1.19 Decreased By ▼ -0.01 (-0.83%)
BR100 8,992 Decreased By -92.3 (-1.02%)
BR30 26,997 Decreased By -633.5 (-2.29%)
KSE100 85,020 Decreased By -432.8 (-0.51%)
KSE30 27,011 Decreased By -137.9 (-0.51%)
Markets Print 2021-06-19

Traders beef up US renewable fuel teams as demand soars

NEW YORK Commodity merchants and investment firms such as Citadel, Gunvor and Trafigura are bolstering US teams that...
Published June 19, 2021

NEW YORK: Commodity merchants and investment firms such as Citadel, Gunvor and Trafigura are bolstering US teams that specialize in trading renewable fuels as demand soars, according to people familiar with the matter.

Many trading firms already have an established presence in Europe, but the production of advanced biofuels that act as petroleum fuel substitutes has driven hiring in the United States in recent months, the sources said. Renewable fuels account for roughly 12 percent of US energy consumption, according to government data, and are growing every year.

In April, hedge fund Citadel made its first entry in the US renewable fuels trading space, a source close to the firm said. The firm brought in Jay McCall as head of North America Environmental Products Trading based in San Francisco, according to source familiar with the matter and his LinkedIn page. McCall previously was director of environmental commodities trading at DTE Energy Trading.

In the same month, commodities trader Gunvor hired Shane Foster to its renewable energy division based in New York, according to his LinkedIn profile.

Gunvor is already active in some US renewables markets such as biodiesel and feedstocks and the company is actively seeking to expand across the renewables supply chain, three of the sources said. Rival trader Trafigura is looking to hire traders specializing in renewable natural gas, renewable diesel and feedstocks, a source with direct knowledge of the matter said.

Last year, Trafigura hired Scott Adair in Calgary, Alberta, to trade power, renewable energy and environmental commodities.

Production of renewable fuels is rising as refiners look for ways to offset carbon emissions, and to take advantage of state and federal incentives such as California’s Low Carbon Fuel Standard which makes such fuel production lucrative.

US refiner Valero Energy Corp’s renewable diesel segment reported a record operating income of $203 million in the first quarter of 2021, while its petroleum refining unit posted a loss.

Several US petroleum refiners and other companies announced plans to produce more fuels from animal fats and soybean oils at their facilities, but the majority of those projects remain to be built.

Trading shops are also boosting efforts to reduce their carbon footprint.

DK Gunvor said in March that it aims to cut its Scope 1 and Scope 2 emissions by 40percent in absolute terms by 2025. Scope 1 covers direct emissions from owned or controlled sources, while Scope 2 covers indirect emissions from purchased electricity, steam, heating and cooling consumed by the reporting company. Gunvor has also set up a new subsidiary to invest in non-hydrocarbon projects.

Comments

Comments are closed.