This publication&rsquo;s survey of U.S. biomass-based diesel producers, conducted in early December, captured responses from qualified personnel at about one-fifth of the industry&rsquo;s operational facilities. While the number of plants represented in the survey offers a limited picture of the industry and its fleet of 100-plus plants, the sample includes both biodiesel and renewable diesel facilities. In fact, 19% of survey respondents specified some form of involvement with renewable diesel production in 2020, including one facility that produces both renewable diesel and sustainable aviation fuel (SAF). Every respondent was either a biodiesel producer exclusively, or a producer of both biodiesel and renewable diesel/SAF. Most respondents with a stated involvement in renewable diesel production were biodiesel plants involved with aggregating or pretreating feedstock for renewable diesel or SAF, not actual renewable diesel plants. In addition to those currently supplying feedstock to renewable diesel producers, several other respondents said they anticipate doing so in the future. This is notable, as a number of U.S. biodiesel plants are, or will soon be, supplying all or some of their product stream as ready-made feedstock for renewable diesel production. In July, for example, Marathon Petroleum Corp. purchased the 50 MMgy Duonix biodiesel plant in Beatrice, Nebraska, with the intention of using the facility to aggregate and pretreat feedstock for renewable diesel production in Dickinson, North Dakota. Other producers are expected to follow suit. &nbsp; Due to the survey&rsquo;s sample size, portions of the results may not be reflective of the industry as a whole. Feedstock usage among respondents, for example, appeared to be relatively consistent with known levels of utilization, except for a seemingly disproportionate number of respondents (71%) saying they process used cooking oil. The second most utilized feedstock among survey takers was soy oil, which came in at 62%. Nearly 43% of respondents utilize animal fats as a feedstock, while one-third said their facility processes one or more of the following inputs: waste vegetable oil, canola, distillers corn oil, tallow, and yellow grease. Fewer producers surveyed said they use brown grease, low- and high-FFA feedstocks, and virgin oils. Note: the survey&rsquo;s feedstock categories were non-exclusive and not volume specific; most respondents selected more than one feedstock.&nbsp; That industry&rsquo;s trend toward feedstock diversity may ultimately hit a wall, however, as the biodiesel and renewable diesel industry grows rapidly over the next several years. The U.S. biodiesel industry currently has the capacity to produce 2.8 billion gallons annually, with planned and proposed expansions (predominantly renewable diesel) potentially adding another 5.5 billion gallons of capacity by 2024, according to our page-20 feature, &ldquo;Renewable Diesel's Rising Tide.&rdquo;&nbsp;&nbsp; The NBB, in fact, has a stated vision for the industry to exceed not only 6 billion gallons, but 15 billion gallons by 2050. The organization believes this will be made possible by increased soybean production&mdash;driven by the world&rsquo;s rising demand for protein&mdash;which is expected to result in massive amounts of excess soy oil (as much as 5.5 billion pounds more by 2030) becoming available for biodiesel and renewable diesel production. Despite the expectation of increased feedstock homogeny in the future, more than one-third of surveyed producers said they anticipate changing or expanding the type of feedstock they process in the next 12 months, suggesting that 2021 could bring a continued reshuffling of the current biodiesel feedstock balance, with more producers looking to become multi-feedstock capable.&nbsp;&nbsp;&nbsp; What have historically been lower-cost, lower-quality feedstocks such as used cooking oil (UCO) and distillers corn oil (DCO) have risen in value during the pandemic due to restaurants (UCO suppliers) and ethanol plants (DCO suppliers) shutting or slowing down. DCO production, however, returned to near-normal levels later in 2020, after dropping by more than 50% earlier in the year. Rendering plants, too, were impacted by COVID-19, with the supply of animal fats being cut in half during the onset of the pandemic. Soybean crush levels have actually increased, but pricing has been volatile. Most (62%) of producers surveyed said their facility was online and operating close to full capacity in early December; another 29% said their plant was operating at a reduced rate; One producer indicated their plant was not operating due to an ongoing expansion project, while another respondent&mdash;representing multiple facilities&mdash;said some of the company&rsquo;s plants were running and at least one was not. Nine respondents said their facility was either undergoing, or actively considering, an expansion.&nbsp;&nbsp; More specific to COVID-19, two-thirds of responding producers lowered their production in 2020, either as a result of the pandemic or not. One-fourth of respondents said their plant lowered production by 10% or less during the pandemic, and one-fifth had dropped production 11% to 20%. Only 15% of survey respondents lowered production more than 30%, with two reporting facilities cutting output by more than half. Interestingly, 25% of respondents had not lowered their production at all during the pandemic, telling Biodiesel Magazine their production levels had either held steady or increased in 2020.&nbsp;&nbsp; Diesel demand has been resilient during COVID-19, even while gasoline and oil prices crashed hard during the onset of the crisis. Still, biodiesel didn&rsquo;t escape 2020 unscathed. Blending margins, even with the $1-per-gallon tax credit, were insufficient at times. That, in addition to demand destruction caused by lower overall fuel use, meant biodiesel producers were hit indirectly through a less powerful compliance pull. More generally, low prices at the pump, coupled with harder-to-find, costlier feedstocks, has made COVID-19 more formidable than it initially appeared. In fact, three-fourths of survey respondents lowered their production during the pandemic.&nbsp;&nbsp;&nbsp; Of those that pulled back on production in 2020, 35% initiated their reduction in March and 20% did so in April or May, as the pandemic worsened nationwide. The earliest reductions were in February, and the latest reported output reduction among respondents was in October. Some survey respondents chose not to indicate what month they first made reductions. Nearly 85% of all producers that reduced production during the pandemic later restored output partially. While none reported having reinstated output to full capacity by December, 54% had restored production by less than 10%; one-tenth had brought back output by 11% to 20%; and another 10% restored production by 31% to 50%. No plants fell into the 21% to 30% category, and none increased production by more than 50% from their pandemic low.&nbsp;&nbsp;&nbsp; When asked how COVID-19 has affected their business, the majority (57%) of producers said the pandemic has impacted them only moderately. Nearly one-third (29%) said the pandemic has impacted their business somewhat seriously or seriously, while over 14% said COVID-19 has not affected their business at all. Zero producers believed the pandemic severely impacted their business in 2020.&nbsp; &nbsp; A vast majority of U.S. biodiesel and renewable diesel producers altered their operational protocols during COVID-19, including adjustments to scheduling, meetings, training and other activities. In fact, only 10% of survey respondents said their facility had not made changes to operational protocols during the pandemic. About a quarter (24%) of survey takers reported making &ldquo;few changes;&rdquo; more than half (52%) reported &ldquo;numerous changes;&rdquo; and just 14% reported drastic changes. Over three-fourths (76%) of respondents said employees at their plant, or within their company, have missed work due to being COVID-19 positive or because of close-contact quarantines. Many producers (48% of all respondents representing 62% of those reporting COVID-19 positive employees or close-contact quarantines) reported experiencing staffing challenges during the pandemic.&nbsp;&nbsp; Aside from the obvious challenges of working in an industrial facility during a pandemic, most U.S. biodiesel plant employees have fared well. According to survey respondents, few biodiesel plants laid off or furloughed plant personnel during the pandemic. In fact, over 80% of respondents have not laid off or furloughed a single employee during the health crisis. Of the 20% of respondents that did, one-fifth of them laid off less than 5% of their personnel; 10% laid off between 6% and 10% of their personnel; and another 5% of survey takers laid off more that 25% of their staff during the pandemic.&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; For many producers, employee morale held strong during the pandemic. In fact, one-third of all responding producers said employee morale at their facility has not been impacted by the health crisis at all. A larger number of respondents (43%), however, said morale has been moderately affected; 14% said morale was somewhat seriously affected; and 10% said it was seriously affected. No respondents said the pandemic had severely impacted the morale of their employees.&nbsp; Eight out of 10 responding producers said their facility is still hiring, despite the ongoing pandemic, and 62% said their company has not suspended raises or bonuses. Nearly 24%, however, said their facility had, indeed, suspended raises, bonuses, or both, while 14% were unsure if raises and bonuses were still being offered.&nbsp;&nbsp;&nbsp; It&rsquo;s been widely reported that a number of U.S. biodiesel producers supplied glycerin to hand sanitizer manufacturers during the pandemic and, in fact, nearly 62% of survey respondents said they had. Another 5% said they had not supplied glycerin for sanitizer but were evaluating opportunities to do so. As COVID-19 worsened in the spring of 2020, it became clear that there was a global shortage of hand sanitizer. Given that two of the main ingredients in sanitizers are alcohol and glycerin, both U.S. ethanol and biodiesel producers helped meet the demand, selling or donating product locally, regionally and nationally. When asked to identify their primary challenge to maintaining or regaining normal operations, a high number of respondents (43%) said &ldquo;feedstock availability&rdquo; was their top concern. Nearly 20% said their primary area of concern was policy&mdash;maintaining the integrity of the Renewable Fuel Standard, preserving the biodiesel blender&rsquo;s tax credit (BTC) past 2022, and more. Several respondents (14%) said the pandemic itself (i.e., waiting on the vaccine rollout and keeping plant personnel safe) was their top worry; and another 14% said market stability and fuel prices was their No. 1 issue. Others said completing ongoing construction projects during the pandemic was their top concern.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; When asked to predict how long it would take for the biodiesel industry to fully recover from the COVID-19 pandemic&mdash;if they believed the industry had been harmed by it&mdash;a full one-third (33%) of respondents said it would take six months to a year to fully recover. However, the second most common answer, coming in at 24%, was that the biodiesel industry did not need to recover because it was &ldquo;largely unaffected by the pandemic.&rdquo; Other survey participants, however, agreed that the industry has suffered from the COVID-19 downturn, if only moderately: 10% said it would take one to three months to regain normalcy; 19% said it would take three to six months; and 14% said it would take more than a year. All said, about half of the respondents believed the industry did suffer damage from COVID-19, and that it would take six months to more than a year for the industry to fully rebound.&nbsp;&nbsp;&nbsp;&nbsp; Despite a general feeling among producers that the industry will remain in a state of recovery for several months, over half (53%) said they are currently investing (or considering investing) in new products or technologies that will enhance operational efficiency, expand the feedstocks they can process, or otherwise improve their operation. While some respondents were unwilling to share the details of their planned investments, some did. Investments included: biodiesel blending infrastructure; new pretreatment platforms; wastewater processing equipment; process improvements; enzymatic-assisted feedstock conversion; solar power installation; glycerin processing; and renewable diesel production. When asked how important the 2020 U.S. presidential election was to the future of the U.S. biodiesel and renewable diesel industry, and why, respondents provided an array of answers. Most, but not all, expressed optimism about the incoming Biden Administration. At press time in mid-December, President-Elect Joe Biden had just been officially confirmed as the nation&rsquo;s next president by The Electoral College, assuring that he will be sworn into office on January 20. Generally, survey respondents believed that the Biden Administration will be more &ldquo;climate focused&rdquo; and, therefore, more friendly to low-carbon, renewable fuels like biodiesel and renewable diesel. &ldquo;This was a very important election,&rdquo; one respondent said. &ldquo;We need a president who is mindful of the effects of climate change but also understands the benefits of using biomass-based diesels to reduce GHG, immediately.&rdquo; Another said, &ldquo;Electing politicians that have favorable opinions of renewable fuels is essential to the long-term growth of our industry.&rdquo; Others said having a Democrat in office &ldquo;will advance carbon reduction policies and reduce the likelihood of EPA granting small refinery exemptions (SREs);&rdquo; and that the Biden Administration poses &ldquo;less risk&rdquo; to the biofuels sector. The EPA&rsquo;s granting of SREs&mdash;and the impact of those actions on RIN values&mdash;was echoed by several respondents, as was the importance of fighting for the continuance of the biodiesel tax credit over the next 24 months. &ldquo;Our industry still requires some combination of RINs, the BTC, and/or LCFS to be competitive with fossil fuels,&rdquo; said another. &ldquo;We need a more robust RFS and additional clarity on the blender credit program past 2022,&rdquo; another producer said. &ldquo;We have already lost 2020 due to COVID and the late return of retroactive BTC payments.&rdquo; Other respondents were less specific about the industry&rsquo;s policy priorities, and more uncertain about the Biden administration. The impact of the new administration on the biodiesel industry will be &ldquo;neutral,&rdquo; one respondent said, echoing the sentiment of another who said the impact of the changeover would likely do &ldquo;nothing&rdquo; for the industry. One producer said, &ldquo;I personally think both parties have shown support for renewable energy. So, in regards to the future of the industry, I don't see the election having a large effect either way.&rdquo;&nbsp;&nbsp; Beyond the results of the election, the concerns of respondents were predominately related to upholding the integrity of the RFS and assuring the continuance of the BTC past 2022. One producer expressed concern about the RFS &ldquo;sunsetting,&rdquo; and another, the &ldquo;RFS reset,&rdquo; suggesting that some question the permanence of the nation&rsquo;s biofuels policy past 2022.&nbsp; Multiple respondents mentioned their concern about &ldquo;market size&rdquo; and &ldquo;volume increases,&rdquo; apparent references to planned and proposed renewable diesel capacity entering the market. And several producers indicated the importance of the Biden administration&rsquo;s unlikeliness to continue issuing unjustified SREs, citing the unprecedented number, and dubious nature, of exemptions granted to refiners during the Trump presidency. As one producer stated, &ldquo;It was the No. 1 item facing the industry and adding uncertainty.&rdquo; Author: Tom Bryan Biodiesel Magazine <a href="mailto:tbryan@bbiinternational.com">tbryan@bbiinternational.com </a> 701-746-8385

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Type of producer surveyed: biodiesel; renewable diesel, sustainable aviation fuel

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Feedstock aggregation/pretreatment activity 

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Production rebound from lowest point in 2020

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COVID-19's impact on operations and business

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Projected length of industry recovery (if in need of recovery)

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FROM THE WINTER ISSUE: Biodiesel Magazine's late-2020 survey of producers tells the story of a resilient, changing industry that's taken mostly indirect hits from the pandemic. Many producers lowered, but later ramped back up, production in 2020. 

Holding Strong: U.S. Biodiesel Producers Surveyed 

This aging Phillips 66 refinery in Rodeo, California, with access to the San Francisco Bay, is slated to be reconfigured to produce 680 MMgy of renewable diesel, renewable gasoline and sustainable aviation fuel. The project is dubbed Rodeo Renewed.

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An update on U.S. renewable diesel projects—operational, expanding, under construction and proposed—giving new purpose to aging oil refineries. The report represents a transformative volume of nearly 5.5 billion gallons of new or potential capacity. 

Renewable Diesel's Rising Tide

The National Biodiesel Board recently updated its longtime sustainability platform into a new, modern Biodiesel Sustainability Now website. This new site will house biodiesel and renewable diesel related sustainability posts from subject matter experts, stories from third-party news outlets, encourage next generation scientists to pursue biodiesel and renewable diesel research, share information on how to get involved in the industry, and much more. &ldquo;The biodiesel sustainability website gives our organization the ability to share biodiesel and renewable diesel&rsquo;s message as a solution to significantly reduce our carbon footprint and provide cleaner air to communities disproportionately impacted by petroleum diesel use,&rdquo; said Matt Herman, director of environmental sciences. &ldquo;The mission of the site is to convey that biodiesel and renewable diesel are sustainable solutions available today to combat climate change.&rdquo; The goal is to engage a wide range of readers and excite them about the future of biodiesel, a better, cleaner fuel choice available today. Viewers of the website can learn about emission reductions, biodiesel&rsquo;s contribution to a healthier environment, the relationship between food and fuel, and other sustainable efforts in the renewable fuel space.&nbsp; To view the revamped site, please visit <a href="https://biodieselsustainability.org/" target="_blank">biodieselsustainability.com</a>.

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The new website will house biodiesel and renewable diesel sustainability posts from subject matter experts, news from third-party outlets, and information for next-generation scientists interested in getting more involved in the industry.  

Biodiesel Sustainability Now website launched 

The National Biodiesel Board&rsquo;s annual advertising campaign hit the airwaves this fall with biodiesel education aimed to influence key decision makers on the many benefits of biodiesel and renewable diesel. &ldquo;The ad campaign strives to increase consumer acceptance and industry growth through education and promotion,&rdquo; says NBB Director of Communications Kaleb Little. &ldquo;Biodiesel is better and cleaner than petroleum diesel&mdash;with proven environmental, health, and economic benefits&mdash;and it is ready to use now. There are a million reasons to use biodiesel, but we have broken it down to the most basic benefits for this effort.&rdquo; Funded by the United Soybean Board, U.S. Canola Association, and a dozen Qualified State Soybean Boards, this educational campaign allows NBB to reach an audience unfamiliar with agriculture and the biodiesel and renewable diesel industry, as a major component includes targeted advertising in the mid-Atlantic, Washington D.C., and California regions. The impactful digital ads ran in The Washington Post, The Hill, Politico, Roll Call, more than two dozen news and information sites, and on social media.&nbsp; The campaign earned approximately 13 million impressions. With more than 25,000 clicks on the ads and 1.7 million video views, it&rsquo;s apparent that viewers are interested in taking action and learning more about biodiesel&rsquo;s impact across the nation. &ldquo;I'm excited we are able to highlight a handful of our hardworking members and industry stakeholders as part of the effort [in 2020],&rdquo; Little said. &ldquo;The unique stories of the individuals within our industry are one of the things that make it great. These are some of the most passionate, innovative, hardworking individuals&mdash;brought together by a common goal&mdash;bringing better, cleaner fuels to American consumers.&rdquo; NBB members involved in the national campaign include Governing Board member and Nebraska farmer, Greg Anderson; President of HERO BX, Chris Peterson; President and CEO of the North American Renderers Association, Nancy Foster; CEO of New Leaf Biofuel, Jennifer Case; President of Newport Biodiesel, Blake Banky; and Next Generation Scientist for Biodiesel Co-Chair, Zenith Tandukar. People can see the videos used throughout the campaign now on the NBB YouTube page. Also, to discover more about the campaign, please visit <a href="https://bettercleanernow.com" target="_blank">bettercleanernow.com</a>.

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Striving for greater consumer awareness, the NBB is trying to reach an audience unfamiliar with agriculture and the biodiesel and renewable diesel industry with targeted advertising in the mid-Atlantic, Washington D.C., and California regions. 

Ad campaign turns up the volume on biodiesel: Better, Cleaner, Now! 

As a member-driven and member-focused trade association, the National Biodiesel Board welcomed their membership for the annual fall meeting virtually, November 18-20, to focus on critical policy initiatives and move the biodiesel and renewable diesel industry forward. During this meeting, members participated in more than 80 virtual Hill visits with key policy makers in D.C. &ldquo;Meeting with elected leaders is one of the key reasons NBB gathers our membership,&rdquo; said Donnell Rehagen, NBB CEO. &ldquo;These visits, whether virtual or in person, help the biodiesel and renewable diesel industry create strong relationships with those fighting for biofuels on the Hill and make strides on policy essential to growing a better, cleaner fuel alternative.&rdquo; In addition, members heard from association leadership, key staff, and other subject matter experts on topics ranging from the RFS, technical advancements, sustainability program initiatives, the latest in state policy movement, communications campaigns, and more. During the meeting, the membership also elected representatives from the industry to serve on the Governing Board to help the development and success of biodiesel. &ldquo;As the national trade association for the biodiesel and renewable diesel industry, it is critical that we are led by a strong team of advocates from all sectors of the industry,&rdquo; said Rehagen. &ldquo;As we see consumers and policymakers leading the shift to cleaner transportation and heating fuels, NBB&rsquo;s Governing Board will continue to play a critical role in our goal to double our production and become a 6 billion gallon a year industry by 2030.&rdquo; NBB members voted to fill eight board member spots for two-year terms: &bull; Troy Alberts, Ag Processing Inc. &bull; Greg Anderson, Nebraska Soybean Board &bull; Tom Brooks, Western Dubuque Biodiesel LLC &bull; Tim Keaveney, Lake Erie Biofuels DBA HERO BX &bull; Mike Rath, Darling Ingredients Inc. &bull; Rob Shaffer, American Soybean Association &bull; Robert Stobaugh, Arkansas Soybean Promotion Board &bull; Paul Teta, Kolmar Americas Inc. Kent Engelbrecht, Tim Ostrem, Ryan Pederson, Harry Simpson, Paul Soanes, Chad Stone, and Dave Walton continue to serve on the board. The board elected Chad Stone to continue serving as Chairman, Mike Rath as Vice Chairman, Rob Shaffer as 2nd Vice Chairman, Ryan Pederson as Treasurer, and Troy Alberts as Secretary. NBB also extended its thanks to retiring Governing Board members Jeff Lynn and Bob Morton. &ldquo;We sincerely thank Bob and Jeff for their time and dedication over the years to biodiesel and renewable diesel,&rdquo; Rehagen said. &ldquo;We appreciated their ability to represent our members&rsquo; interest and advocate for our industry in critical moments, leading us to growth and success. NBB will miss their devoted leadership but we know they will continue as strong advocates for growth in our industry.&rdquo;

At its virtual 2020 membership meeting, the National Biodiesel Board shared technical and policy information with its members, elected governing board leaders, and participated in more than 80 virtual visits with lawmakers on the Hill.

NBB membership meeting sets virtual record in late 2020 

The Virtual National Biodiesel Conference &amp; Expo, taking place January 18-21, is the 2021 event the industry won&rsquo;t want to miss. This year, NBB&rsquo;s premier conference is going online to provide a new, safe opportunity for all attendees. Each year NBB provides the industry with the opportunity to learn, grow, and get business done, and this year will be no different. Now is the chance to claim a spot at the 2021 conference&mdash;where all the key players will come together online to keep the industry on the &ldquo;Rise.&rdquo; &ldquo;This annual conference is a chance to bring together the bright minds of the biodiesel and renewable diesel industry and showcase the vast opportunities for our member stakeholders,&rdquo; shares NBB Chief Operating Officer Doug Whitehead. &ldquo;Each year we encourage all interested in the industry to join us for a week of discovery and networking, which is necessary to help us all prosper.&rdquo; Whether an industry veteran or new to the biodiesel and renewable diesel world, the National Biodiesel Conference has plenty for all. Speakers will present thought-provoking and engaging sessions, with keynote speeches and panel discussions presented by subject matter experts. &ldquo;Our industry is proving its strength and commitment to better, cleaner fuel through this time of uncertainty,&rdquo; said Whitehead. &ldquo;The biodiesel and renewable diesel industry have worked tirelessly to keep this industry growing, collaborating, and coordinated as we face this unique time together, and we can&rsquo;t wait to kick off a new year with each of our members during the conference.&rdquo; Join us and register for the 2021 Virtual National Biodiesel Conference &amp; Expo by visiting <a href="https://www.biodieselconference.org/" target="_blank">biodieselconference.org</a>.

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The biodiesel and renewable diesel's big annual event draws the industry together to showcase opportunities for its member stakeholders. This year's virtual gathering will feature the industry's preeminent thought leaders and subject matter experts.

Virtual National Biodiesel Conference starts next week

The Biden administration is launching its agenda for the next four years with climate concerns and economic recovery as top priorities. NBB will work to open opportunities for the biodiesel industry within that agenda. However, NBB will also join the entire biofuel industry in asking the administration to address some unfinished business with the Renewable Fuel Standard (RFS). For the first time in five years, the Environmental Protection Agency missed the annual November 30 deadline for finalizing RFS obligations (RVOs) for the upcoming year. In fact, the agency did not even propose a 2021 RFS rule before the end of the year. The annual rule is crucial to all stakeholders because it sets market expectations. EPA is required to set biodiesel volumes a full 14 months in advance to give the industry and other stakeholders the proper signals. The biodiesel industry is currently waiting on EPA to set 2022 volumes for the biomass-based diesel RFS category. And the industry is expecting an increase in 2022, after being denied growth for 2021. The delay is disruptive as the RFS program heads into the next phase. In 2021, EPA will have to both establish the annual 2022 RFS obligations and set all RFS volumes for 2023. Just like it does for biodiesel, EPA will have to provide 14 months&rsquo; lead time to all of the RFS categories for 2023 and future years. So, this is absolutely the wrong time for EPA to leave the 2021 RFS rule to write itself. NBB has also worked to address EPA&rsquo;s misuse of small refinery exemptions (SREs). NBB estimates biodiesel producers lost 550 million gallons of market demand over three years because of these waivers. &ldquo;What the SREs did was take away the certainty from biodiesel producers, soybean growers and others, ultimately costing them value, costing biodiesel markets and ultimately returning less to the soybean grower in the value of that soybean oil,&rdquo; says NBB Vice President of Federal Affairs Kurt Kovarik. In late summer 2020, NBB launched a series of radio ads in six Midwestern states, highlighting the impact of SREs on farmers. Shortly after, in September, EPA Administrator Andrew Wheeler rejected more than 50 &ldquo;gap-filling&rdquo; exemption petitions. But EPA is still considering 60 petitions, including 32 for the 2019 compliance year. The compliance deadline for 2019 passed in March 2020. If EPA granted these retroactive exemptions, it would destroy demand for several hundred million additional gallons of biodiesel and renewable diesel over the coming year. NBB also joined with six other biofuel and agriculture trade associations to ask the U.S. Court of Appeals for the D.C. Circuit to set a timeline for EPA to settle a court order from 2017. In the case, biofuel groups challenged EPA&rsquo;s misuse of the general waiver to lower RFS volumes by 500 million gallons. EPA could have restored those gallons in any of the three most recent RFS rules but failed to do so. The groups are now asking the court to direct EPA to issue a separate rule to restore the lost gallons within a short time, rather than wait for another annual rule. NBB will make the case that addressing unfinished business with the RFS program is a good first step for the Biden administration to launch its carbon reduction strategy. The RFS has achieved measurable carbon reductions over the past decade and will continue to contribute to national goals into the future. Moreover, low-carbon fuel programs like California&rsquo;s and Oregon&rsquo;s are demonstrating that biodiesel and renewable diesel are the best tools available today for reducing carbon in transportation.

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With climate concerns and economic recovery being labeled top priorities for the Biden administration, the NBB will urge the incoming president to attend to unfinished business with the RFS as he rolls out a sweeping carbon-reduction strategy. 

Biden administration inherits RFS uncertainty

Biodiesel and renewable diesel are on the &ldquo;Rise&rdquo; in 2021. Our industry is on the cusp of a cultural shift in the way consumers think about their fuel. With a world desiring cleaner air, our industry anticipates a major transition from fossils fuels to clean energy sooner than we may have previously thought. We are entering a time when the environment and cleaner energy are finally taking their rightful place with consumers and policymakers, and we believe biodiesel and renewable diesel will play a huge role in this shift to lower carbon fuel. Throughout 2020 the National Biodiesel Board has been vocal about our Vision to reach 6 billion gallons by 2030 and 15 billion gallons by 2050. We have not let up on that message and will continue to raise our voices in 2021. This past year brought an additional wave of corporations announcing their commitments to carbon reduction. Major corporations including Amazon, Walmart, Ikea, Pepsi, McDonalds, and many others are setting aggressive carbon reduction goals. These goals will not just affect the operations of those corporations but also the operations of nearly all their suppliers. With a significant amount of greenhouse gases (GHGs) tied to transportation activities, it is inevitable that the corporations and their suppliers will seek out cleaner transportation fuels, expanding the market for biodiesel and renewable diesel. I remain bullish about our future because of the growing number of states that are taking it upon themselves to enact policies in the carbon reduction area. Just look at California&rsquo;s aggressive climate goals. Currently, California is forging ahead with its ambitious low carbon fuel standard (LCFS).&nbsp; This program, with a goal of 20% carbon reduction, has been in place for over 10 years and, to date, has helped California reach about a 7% reduction. Biomass-based diesel (BMBD) has been the biggest contributor to these reductions, currently making up nearly 45% of the credits generated. And, in gallons, it has been a remarkable story for our industry. Before the LCFS was enacted, BMBD was about a 14-million-gallon market. We believe 2020 may be the year that BMBD consumption in California reached 1 billion gallons. BMBD&rsquo;s contribution to carbon reduction in California suggests that as carbon policies around the country begin to take hold, we will see tremendous opportunities for growth for our industry. Our better, cleaner fuels can provide immediate and substantial air pollution benefits, including 80% reduction in both greenhouse gases and particulate matter, over 40% reduction in carbon monoxide, and significant reductions in other noxious pollutants, all of which are harmful to public health, particularly to vulnerable residents in poor and disadvantaged communities around the country. These immediate and substantial emission benefits can and should be an important part of any state, regional or national climate program, and part of an all-of-the-above strategy that facilitates decarbonization through advanced alternative fuels like biodiesel and renewable diesel. My excitement for the industry is tied to the changing demands of consumers, policymakers, and corporations. Our industry will finally have a place at the table with answers to long-pondered problems. We are only beginning to see the sweeping policy changes at the state and federal level for biodiesel and renewable diesel. This transformation may not be easy, the market opportunities won&rsquo;t just happen, it will take diligence and hard work. I am positive that as an industry we must remain together and continue to speak with one voice. I look forward to 2021 and the growth I am confident we will see. We will rise to the top with better, cleaner fuel now. Author: Donnell Rehagen CEO National Biodiesel Board

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With carbon reduction taking center stage, biodiesel and renewable diesel can provide immediate and substantial benefits, including 80% reduction in both greenhouse gases and particulate matter, an over 40% reduction in carbon monoxide, and more.  

Carbon Reductions On the Rise in 2021

Minnesota biodiesel plant installing wind turbine Renewable Energy Group Inc. is installing a wind turbine near its Albert Lea, Minnesota, biodiesel plant. The project will provide locally sourced, clean electricity, lowering the carbon footprint of the 30 MMgy biodiesel facility. The turbine, which will be built and operated by Minnesota-based Juhl Energy, will reduce the plant&rsquo;s associated carbon dioxide footprint by 68,000 tons per decade, displacing a portion of the fossil fuel-based electricity it uses. The single wind turbine will be located to the northwest of the facility. The site selection was made based on REG&rsquo;s desire to limit the impact of sound and shadow flicker to the surrounding residents.
REG promotes among leadership, hires new sales VP In December, Renewable Energy Group Inc. announced several changes within its senior leadership team. Chad Stone moved from chief financial officer (CFO) into a newly created role of senior vice president, commercial performance. Todd Robinson, formerly treasurer and executive director, investor relations, is now interim CFO. Brad Albin is now senior vice president, manufacturing and engineering; Natalie Merrill is senior vice president, business development. Trisha Conley and Bob Kenyon, both new additions to REG in 2020, will each be promoted to senior vice president positions, overseeing people development and sales and marketing, respectively. &ldquo;We believe these changes will strengthen our senior leadership team and ... accelerate growth in our areas of focus," said REG President and CEO Cynthia &ldquo;CJ&rdquo; Warner.
Neste opens two more renewable diesel stations in California Neste, an international renewable diesel producer and distributor, has opened two new fueling stations in the Central California cities of Stockton and Lodi. The company intends to create a "green fueling network" across the West Coast,&nbsp; making it easy for fleet managers to switch to renewable diesel. The company now has nine renewable diesel stations, strategically located near major commercial freight routes to accommodate fleet vehicles of all sizes. The new cardlock locations, open 24/7, are operated by Neste's authorized distributor, Van De Pol Petroleum. The two new pumps join seven existing Neste-branded renewable diesel stations in San Leandro, San Jose, Keyes, Ripon, Wasco, Buttonwillow and Shafter.
BDI to supply technology for Cargill plant in Belgium
Germany&rsquo;s BDI-BioEnergy International GmbH will supply the process technology for Cargill&rsquo;s new multi-feedstock biodiesel plant being built in Ghent, Belgium. The new 36 MMgy facility will be capable of processing a multitude of feedstocks, including fatty acids from vegetable oil refining, liquid residues from industrial processes, and fat recovered from sewage sludge. The plant will use BDI&rsquo;s latest technology, RepCAT, a patented biodiesel production system for low-quality, high-FFA feedstocks. The facility is scheduled to be commissioned in mid-2022. &ldquo;Our share in this lighthouse project represents the largest order volume in BDI&rsquo;s history,&rdquo; said Markus Dielacher, CEO of BDI. &ldquo;In spite of the generally known difficult economic conditions, we are very proud of this success. With the multi-feedstock biodiesel technology RepCAT we developed, Cargill will be able to make an important contribution to the decarbonization of the European transport sector.&rdquo;

Neste now has nine renewable diesel fueling stations in California. The latest pumps are in Stockton and Lodi.

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Industry news from the Winter edition of Biodiesel Magazine, including stories on REG's wind turbine installation and leadership promotions, Neste's newest U.S. renewable diesel pumps, and BDI's technology install for Cargill in Belgium. 

Business Briefs

In early December, as the first &ldquo;year of COVID&rdquo; ended&mdash;while the pandemic raged on pre-vaccine&mdash;our team at Biodiesel Magazine reached out to biodiesel producers with a simple set of questions: We asked how things were going, how morale was holding up, what condition their operation was in, and how severely&mdash;if that was even the right word&mdash;COVID-19 had impacted their business. We didn&rsquo;t expect a huge response, and few producers initially answered. But after a second (and then a third) e-mail to every biodiesel and renewable diesel plant in the U.S., the responses started to trickle in. Before long, we had enough of a participant sample (and I hesitate to use such statistical terms for our surveys) to justify sharing the results with our readers. In the end, only one-fifth of active U.S. biodiesel producers took part in our survey, but the insight extrapolated from their input seems both relevant and timely.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The feedback we compiled, detailed in our cover story, &ldquo;<a href="http://www.biodieselmagazine.com/articles/2517319/holding-strong-u-s-biodiesel-producers-surveyed">Holding Strong</a>," tells the story of a resilient industry that didn&rsquo;t so much suffer directly from COIVD-19&mdash;because diesel use held steady&mdash;but rather indirectly through a slackened compliance pull. Most producers said their facility was online and producing close to full capacity in December, while nearly a third said their plant was running at a reduced rate. There was plenty of good news to report from the survey. Generally, U.S. biodiesel plants have managed the pandemic well, keeping production online and people working. In fact, only 20% of producers surveyed laid off or furloughed employees in 2020; eight out of 10 respondents said their facility was still hiring; most reported only moderate hits to their business operations; and many are investing in new technologies, right now, despite the ongoing health crisis. It&rsquo;s been said that &ldquo;where you stand depends on where you sit,&rdquo; and that fairly describes biodiesel producers right now. While most surveyed said they believe the industry was, in fact, harmed by the pandemic and in the early stages of a months-long recovery, about one-fourth of them said they didn&rsquo;t think there was anything to recover from. The political opinions of U.S. biodiesel producers are also mixed. A majority of survey takers expressed optimism about the incoming Biden Administration&mdash;rooted mostly in the idea that Biden&rsquo;s EPA will manage the Renewable Fuels Standard (i.e., volume obligations and small refinery exemptions) more fairly than the agency did under Trump. In the words of one respondent, the copious approval of SREs was &ldquo;the No. 1 item facing the industry and adding uncertainty.&rdquo;&nbsp; Among the top concerns of producers heading into 2021, was the availability of feedstock. Given the extraordinary size of the currently expanding and under construction renewable diesel plants in the U.S. (check out &ldquo;<a href="http://www.biodieselmagazine.com/articles/2517318/renewable-diesels-rising-tide">Renewable Diesel&rsquo;s Rising Tide</a>"), their concern is perhaps understandable.
Author: Tom Bryan Biodiesel Magazine

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Generally, U.S. biodiesel plants have managed the pandemic adeptly, keeping production online and people working. Most reported only moderate hits to their business operations, and many are investing in new technologies, right now, despite COVID-19.

2021 Winter Issue

Business Briefs

Business Briefs

Columns

U.S. Biodiesel Producers Weathering Pandemic Well

Featured

Holding Strong: U.S. Biodiesel Producers Surveyed

Renewable Diesel's Rising Tide

2021 Winter Issue .css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

Business Briefs

Columns

U.S. Biodiesel Producers Weathering Pandemic Well

Featured

Holding Strong: U.S. Biodiesel Producers Surveyed

Renewable Diesel's Rising Tide

2021 Winter Issue