PHYSICAL PRODUCTS > COAL
The key to successful business ventures in biofuels is in understanding the complex nexus between, the food, feed and fuel supply chain and their markets. More simply, the most critical factor here is the relative price between the fuel product (determined by energy prices) and the feedstock crop or derivative (determined primarily by its competing demand for food and feed uses). Unlike crude oil and petroleum products, this is made more complex by evolving market intervention by governments in the seeking to reduce GHG (green house gases) emissions.
Considering this complex nexus and price volatility of both feedstocks and products, the trade is dependent on reliable sourcing and delivery, and risk management. This requires a deep techno-commercial understanding of the feedstock and biofuel product, and a host of issues on processing and distribution, a wide network of buyers and sellers, as well as the capacity to provide the necessary instruments for risk management.
Ginga has ventured into broking biofuels and its major feedstocks in Asia, and is developing the necessary skills to meet the market demands, through its wide experience in broking petroleum and palm oil products. Ginga is in a position to source for feedstocks and biofuels that meet the stringent requirements of buyers in Asia, the EU and USA, including the environmental sustainability of these products. Ginga also brings its wide experience in hedging and risk management in petroleum products into the biofuels market.
Ginga foresees the market evolving with new products and feedstocks coming into play in the future. The traded products in the near term are:
• Biodiesel Methyl Esters
• Biogasoline Ethanol
• Palm Oil as feedstock:
– Palm oil and derivatives (olein, stearin, fatty acid distillate)
– Palm kernel oil and derivatives (olein, fatty acid distillate)
– Other residues (from palm and kernel oils extraction and processing)
– Methanol (co-reagent for biodiesel production)