Doug Haugh, chief commercial officer at Vertex Energy Inc., discussed the company’s efforts to expand the types of feedstocks processed in its renewable diesel unit during the company’s second quarter earnings call, held Aug. 9.   

Vertex in mid-2021 announced an agreement to acquire an oil refinery in Mobile, Alabama, and convert a portion of it to renewable diesel production. The newly completed renewable diesel unit began operations this spring. In late June, Vertex announced it had completed the first series of commercial sales transactions of renewable diesel. The company on July 25 announced the renewable diesel unit had achieved the company’s phase 1 installed capacity target of 8,000 barrels per day.

During the earnings call, Haugh said now that the company has achieved commercial production sales of renewable diesel and proven the unit to run at designate rates with yields at or better than target, Vertex has quickly shifted its focus to accelerating the deployment schedule of its multi-feedstock supply and production strategy.

According to Haugh, the economics of producing renewable diesel from refined, bleached and deodorized (RBD) soybean oil are currently unattractive under prevailing market conditions. The renewable diesel unit and its supply system are multi-feedstock capable, but Vertex had initially anticipated a longer break-in period to stabilize and streamline operations while utilizing RBD soybean oil during the initial operation period, Haugh explained. However, he said the company’s supply, engineering and operations teams have worked diligently and were able to introduce distillers corn oil (DCO) into the company’s feedstock blend last week. In addition to DCO, Vertex has worked to advance technical tallow, canola oil and crude degummed soybean oil (CDSO) through its feedstock approval process. With those approvals now in place, Haugh said Vertex has obtained attractively priced commercial quantities of CDSO, technical tallow, canola and DCO for this quarter.

In addition, Haugh said Vertex’s feedstock development team is sourcing supplies of other, lower carbon intensity (CI) feedstocks and lower cost alternatives in the used cooking oil (UCO) and fats, oils and grease (FOG) market while also working to build a longer-term supply of agricultural oils produced from cover crops.