Marathon Petroleum Corp. on May 6 reported improved first quarter EBITDA for its renewable diesel segment on increased utilization of its facilities, particularly the Martinez biorefinery in California, and higher margins. 

Segment adjusted EBITDA for the first quarter was a $42 million loss, compared to a $90 million loss reported for the same period of 2024. Renewable diesel margins were $26 million, compared to a $5 million loss. Marathon defines renewable diesel margins as sales revenue plus value attributable to qualifying regulatory credits earned during the period less the cost of renewable inputs and purchased product costs. 

During a first quarter earnings call, Marathon Chief Financial Officer John Quaid said the company’s renewable diesel facilities ran at approximately 70% capacity utilization during the first quarter, mainly as a result of unplanned downtime at both the Martinez facility, which is operated via a joint venture with Neste, and the company’s biorefinery in Dickinson, North Dakota. 

According to Quaid, the changing tax credit structure was the most significant headwind faced by the renewable diesel segment during the first quarter. Regarding operations, he said the company is working to optimize operations at the Martinez facility to operate at nameplate capacity while leveraging flexible logistics and pretreatment capabilities to enable a diverse slate and margin. He also noted the company has addressed operational issues that limited production during the first quarter, with both biorefineries positioned to run well during the second quarter.