Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The report emphasizes the significant potential of crop straw as a biomass resource for energy transition and carbon sequestration, highlighting its role in achieving climate goals and supporting rural renewable energy industries [14][17]. Summary by Sections Introduction - Crop straw is identified as a crucial biomass resource for energy transition and achieving climate goals, with global biomass energy demand projected to exceed 100 exajoules (EJ) by 2050 [14][15]. Crop Straw Can Support the Development of the Biofuel and Carbon Removal Industries - China generates approximately 860 million tons of crop straw annually, representing a major biomass resource with an energy potential of up to 9.5 EJ [15][28]. - Crop straw can be converted into high-value energy products such as sustainable aviation fuel (SAF), biomethanol, and biomethane, aiding decarbonization in hard-to-abate sectors [15][31]. Current Status and Challenges of Crop Straw Resource Utilization - China's crop straw resources are abundant, with an actual collectible amount of about 770 million tons, providing a solid foundation for biomass industry development [50][49]. - The comprehensive utilization rate of crop straw has increased from 70.6% in 2010 to 88.5% in 2024, but the fuel-based utilization remains low [77][88]. Market Outlook and Opportunities - The industrialization of crop straw-based biofuels faces cost challenges, with production costs for SAF estimated at RMB 13,000–15,000 per ton and biomethane at RMB 3.6–5.9 per cubic meter [87][88]. - Opportunities exist to improve the crop straw collection, storage, and transportation systems, and to build integrated production models combining green hydrogen and crop straw [26][87]. Development Model and Action Considerations - The report suggests building the crop straw-based biofuel industry in line with local resources and emphasizes the need for coordination across the crop straw value chain [36][41].

Core Insights - ADM has launched a new carbon capture and storage project at its Columbus, Nebraska Corn Processing Complex, making it the largest bioethanol carbon capture facility globally [1] - The project utilizes Tallgrass's Trailblazer pipeline to transport captured carbon dioxide (CO2) from ADM's ethanol plant to Tallgrass' Eastern Wyoming Sequestration Hub [1] Company Overview - ADM is recognized as a global leader in providing innovative solutions derived from nature [1] - The Columbus facility is a significant step in ADM's commitment to sustainability and reducing carbon emissions in the bioethanol production process [1] Industry Impact - The establishment of the largest bioethanol carbon capture facility is expected to set a benchmark in the industry for carbon management practices [1] - The collaboration with Tallgrass for CO2 transportation highlights the growing importance of infrastructure in supporting carbon capture initiatives [1]

Core Insights - Borregaard has faced an unexpected outage at its Sarpsborg facility, affecting the production of a key chemical for speciality cellulose, leading to shipment delays for certain grades [1] - The company has engaged with experts to address the issue and mitigate customer impact, with expected deliveries of speciality cellulose in Q3 now projected at approximately 30,000 tonnes, down from the previously forecasted 35,000 to 38,000 tonnes [2] - The estimated negative impact on the Group's EBITDA for Q3 is projected to be between NOK 40 million and NOK 50 million [2] Production Impact - The outage has restricted cellulose production to grades outside standard specifications, causing delays in shipments [1] - Other product lines at the biorefinery, including lignin-based biopolymers, bio-vanillin, bioethanol, and cellulose fibrils, have not been affected by the outage [1] Financial Implications - The revised forecast for speciality cellulose deliveries indicates a significant reduction in expected output for Q3 [2] - The financial impact of the outage is quantified, with a projected EBITDA reduction of NOK 40–50 million for the quarter [2]

Group 1 - The UK Renewable Transport Fuel Association (RTFA) is urging the UK government to urgently revise the Sustainable Aviation Fuel (SAF) authorization policy to allow domestically produced crop-based bioethanol for aviation fuel production [1] - The RTFA warns that without action, the domestic bioethanol industry in the UK could face a fatal blow due to the new US-UK trade agreement allowing tariff-free imports of US ethanol [1] - The new trade agreement, effective from June 30, includes a tariff-free import quota of 1.4 billion liters of US ethanol, nearly equivalent to the total annual domestic market in the UK [1] Group 2 - UK producers such as Ensus and Vivergo Fuels are facing severe losses and shutdown risks due to the economic unviability caused by the tariff-free access of US ethanol [1] - Vivergo Fuels, a subsidiary of AB Foods, has set a shutdown deadline for mid-September, currently incurring losses of $3 million per month and has ceased raw material procurement since June [1] - Ensus, owned by CropEnergies, is also considering shutdown and is set to be put up for sale starting December 2024, with a reported loss of £19.86 million in the 2024 financial report [1]