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Valero reports profitable Q1 for ethanol, renewable diesel

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By Erin Voegele

April 26, 2022

BusinessProductionNorth America

Valero Energy Corp. released first quarter 2022 financial results on April 26, reporting both its ethanol and renewable diesel segments were profitable during the three-month period. Production of both fuels was up.

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Air Products announced on April 22 that it is teaming up with World Energy to build a new $2 billion major expansion project at World Energy's sustainable aviation fuel (SAF) production and distribution hub in Paramount, California.

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The U.S. EPA has released updated renewable identification number (RIN) data, reporting that 1.82 billion RINs were generated under the RFS in March, up from 1.65 billion that were generated during the same month of last year.

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Strategic Biofuels has finalized its partnership with leading engineering, procurement and construction (EPC) firm Koch Project Solutions for its Louisiana Green Fuels Project in Caldwell Parish, Louisiana.

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Refuel Energy Inc. announced on April 19 that planning is underway for the construction of a 3,000-barrels-per-day biorefinery in Ontario. The facility will produce hydrogenation-derived renewable diesel (HDRD) and sustainable aviation fuel (SAF).

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The Queensland, Australia, government on April 13 announced Australia-based Oceania Biofuels is developing a proposed 350 MMly (92.46 MMgy) renewable diesel and SAF biorefinery in Gladstone, a city located on the eastern coast of Queensland.

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The U.S. EPA on April 18 officially opened a 30-day public comment period on its proposed rule to approve RFS fuel pathways for renewable diesel, jet fuel, heating oil, naphtha and LPG produced from canola oil via a hydrotreating process.

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The IEA in March released a report predicting that global biofuels supply will reach 3.3 million barrels per day by 2026, up from 2.6 million barrels per day in 2020. The forecast was included in the IEA's Oil 2021 report.

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TotalEnergies and ENEOS Corp. announced a collaboration to jointly conduct a feasibility study to assess the production of sustainable aviation fuel (SAF) in ENEOS Negishi Refinery in Yokohama city, Japan.

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BDI-BioEnergy International has opened a next-generation biodiesel production plant in Bakersfield, California, in partnership with Crimson Renewable Energy Holdings LLC. The key innovation: the patented RepCAT technology with a recyclable catalyst.

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Sens. John Barrasso, R-Wyo., and Dianne Feinstein, D-Calif., on April 7 introduced legislation that aims to improve data reporting for renewable diesel and SAF, incentivize their production, and eliminate unnecessary labeling regulations.

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The U.S. EPA on April 12 published a proposed rule approve Renewable Fuel Standard pathways for renewable diesel, jet fuel, heating oil, naphtha, and liquefied petroleum gas (LPG) produced from canola/rapeseed oil via a hydrotreating process.

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On April 12, Agriculture Secretary Tom Vilsack announced steps the USDA is taking to implement President Biden's plan to enable energy independence by boosting homegrown biofuels, including HBIIP grants and SAF initiatives.

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USDA Rural Development Under Secretary Xochitl Torres Small on April 6 confirmed the agency expects to distribute $700 million in COVID-19 relief funds for biofuel soon and said a new funding round for the HBIIP will open this spring.

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During the 2022 Oregon AFL-CIO Biennial Convention, a resolution to support the Next renewable diesel project received a unanimous vote of support, reinforcing their stance on supporting responsible green projects that are committed to union labor.

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Capturing the interactions between biofuels and agricultural industries and their connections with other economic activities was key to a first-of-its kind study published by reseraches at Purdue University.

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The Illinois Soybean Growers is celebrating the passage of the organization's B20 legislation by the Illinois Senate. The bill transitions the sales tax incentive from 10 percent biodiesel blends to 19 percent.

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U.S. operable production capacity for fuel ethanol, biodiesel, and renewable diesel all increased in January, according to data released by the U.S. Energy Information Administration on March 31. Feedstock use was down when compared to December.

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British Airways has taken delivery of the first batch of sustainable aviation fuel produced by Phillips 66 Ltd., making it the first airline in the world to start using sustainable aviation fuel (SAF) produced on a commercial scale in the U.K.

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Renewable Energy Group Inc. has introduced of a line of branded fuel solutions, EnDura Fuels. TThe EnDura Fuels line consists of five biobased diesel fuels including REG's newest product, PuriD, a next-generation biodiesel.

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A report recently filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network shows that Canadian biodiesel production and consumption were both up in 2021. Renewable diesel consumption was down slightly.

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AECOM has signed a strategic agreement with Genifuel Corp. to propduce SAF and biogas from wild algae and biosolids. The partnership employs AECOM's algae harvesting process and conversion technology developed by the DOE and Genifuel.

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The U.S. Energy Information Administration's Annual Energy Outlook 2022 refernece case projects that renewable diesel supply (domestic production and net imports) will exceed biodiesel supply in the near term.

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The U.S. Department of Energy has announced a new $34.5 million funding opportunity to improve the current science and infrastructure for converting waste streams into valuable biofuels and bioproducts that can benefit the local energy economy.

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The U.S. EPA in holding webinars on March 23 and April 6 related to its January 2022 announcement that the agency is launching a new initiative under the TSCA that aims to streamline the review of new biobased fuels and chemicals.

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Reps. Angie Craig, D-Minn.; Randy Feenstra, R-Iowa; Cheri Bustos, D-Ill.; and Ashley Hinson, R-Iowa, on March 21 introduced the Home Front Energy Independence Act, a bill that aims to expand access to biofuels and ban Russian oil.

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The U.S. EPA has released updated renewable identification number (RIN) generation data, reporting that nearly 1.54 billion RINs were generated under the RFS in February, up from 1.26 billion generated during the same month of last year.

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British Airways will use sustainable aviation fuel (SAF) produced on a commercial scale in the U.K. after signing a multi-year agreement with Phillips 66 Limited, which will produce SAF at its Humber Refinery near Immingham.

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Ethanol Producer Magazine has announced the preliminary agenda for the 2022 International Fuel Ethanol Workshop & Expo (FEW) and co-located events taking place June 13-15, 2022, at the Minneapolis Convention Center in Minneapolis, Minnesota.

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Sens. Joni Ernst, R-Iowa, and Amy Klobuchar, D-Minn., on March 9 introduced the Home Front Energy Independence Act, a bill that aims to put into a law a ban on Russian oil and includes provisions to increase the use of biodiesel and other biofuels.

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