(Yellow) Grease is the Word
Anna Simet
December 24, 2023
BY Anna Simet
There’s a common thread in this issue of Biodiesel Magazine, and that’s the value, collection and use of the most sought-after feedstock for renewable diesel and sustainable aviation fuel: used cooking oil (UCO). But soybean oil is king for U.S. biodiesel production by a landslide, accounting for nearly 70% of feedstock inputs, according to the U.S. EIA. While we saw a pretty steady increase in the use of UCO for biodiesel for several years (40% from 2014 to 2017, or 10% of total biodiesel inputs) that number has decreased to around 7% of total feedstock inputs since then. Based on the incredible number of renewable diesel and SAF facilities that have been built, are under construction or planned, that’s likely to remain steady or decrease, for biodiesel inputs. Interestingly, the U.S. is seeing a surge in Chinese UCO imports. A few months ago, Reuters reported that beginning two months after the Inflation Reduction Act over a one-year period, China shipped nearly $390 million worth of UCO to the U.S. While cheaper, imported UCO is good for its buyers, it’s not so good for our domestic companies whose businesses center of collecting, processing and selling UCO to biofuel producers.
In “Full Circle UCO” on page 20, I chat with Dave Kimball, president and CEO of Mahoney Environmental, which collects UCO from 70,000 to 80,000 restaurants and businesses. The company, owned by Neste as of March 2020, has been around for 70-plus years and has truly mastered what is a difficult and dirty job. During our discussion, Kimball told me the value of UCO has taken a considerable dip, on account of a surge of imports. While he is optimistic prices will rebound, it is yet another component of a complicated amalgamation of variables in this fast-growing renewable diesel and SAF industry.
Another one of our features, “The Value in Diversification” on page 26, details Green Energy Biofuel’s journey from a startup biodiesel company to a three-location grease collector/processor, biofuel feedstock supplier, grease trap cleaner, food waste disposal and composting company. The latter is the latest add to the company’s portfolio; its food waste depackager allows GEB to process 30 tons of waste per hour, with its Warrenville, South Carolina, plant accepting waste by both rail and truck. CEO Joe Renwick told contributing writer Keith Loria that they were previously spending a remarkable $400,000 per year in landfill fees for disposal of the company’s solid waste.
Shifting gears a bit, make sure you check out our page-36 contribution, written by Oakridge National Laboratory’s Michael Kass, that is focused on biofuel adoption in the marine industry. In the article, “Making the Case for Marine Biofuels,” Kass explores substituting heavy fuel oil with two possibilities—biodiesel and renewable diesel.
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I’ll end a note quoting Kass, which I think is relevant far beyond the marine industry when it comes to replacing fossil fuels with biofuels in the broader transportation industry: “…a multiple-fuel strategy is needed based on regional legislative initiatives, economies and unique bioresources. It’s not a one-size-fits-all approach, and will likely mean a higher degree of fuel flexibility than what is currently available.”
Author: Anna Simet
Editor, Biodiesel Magazine
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