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EIA: US biodiesel capacity down slightly

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By Erin Voegele

August 25, 2022

BusinessProductionNorth America

The U.S. was home to 72 biodiesel plants with a combined capacity of 2.255 billion gallons per year as of Jan. 1, 2022, according to data released by the U.S. EIA. Capacity fell by three plants and 154 MMgy when compared to Jan. 1, 2021.

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U.S. production capacity for renewable diesel and associated fuels more than doubled between 2021 and 2022, reaching 1.75 billion gallons per year, according to data released by the U.S. Energy Information Administration.

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As of January 1, 2022, biofuel plant production capacity in the United States reached 21 billion gallons per year (gal/y) from 275 facilities. More than four-fifths of U.S. biofuel production capacity was for fuel ethanol.

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World Energy on Aug. 18 announced it is launching advanced engineering plans to convert its existing assets in Houston to launch a new SAF hub that will boost the company's SAF capacity by 250 MMgy. The hub is expected to be operational in 2025.

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President Joe Biden on Aug. 16 signed the Inflation Reduction Act into law, calling the legislation the “biggest step forward in climate—everâ€� and stressing it will allow the U.S. to boldly take additional steps towards meeting its climate goals.

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Thailand's production of biodiesel is expected to decline for the third consecutive year in 2022, according to a report filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network.

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Greater Commercial Lending has announced that New Rise Renewables Reno, a 44 MMgy renewable diesel faciltiy located in Reno, Nevada, is begining operations. The project was inagurated by local officials on Aug. 11.

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BBI International has announced the 39th Annual International Fuel Ethanol Workshop & Expo will be held June 12-14, 2023 at the CHI Health Center in Omaha, Nebraska. Speaker presentation abstracts will be accepted through Feb. 10, 2023.

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The Senate on Aug. 7 passed the Inflation Reduction Act of 2022 by a vote of 51 to 50 along party lines. Vice President Kamala Harris cast the tie-breaking vote. The bill includes a range of provisions benefiting biofuel and bioenergy prodcution.

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Calumet Specialty Products Partners L.P. expects to begin producing renewable diesel at its facility in Great Fall, Montana, within the next 60 to 70 days, according to comments made by CEO Todd Borgmann during a Q2 earnings call on Aug. 5.

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The U.S. exported 81,132.2 metric tons of biodiesel and biodiesel blends of B30 and greater in June, down from both 100,259.3 metric tons in May and 92,633 metric tons in June 2021, according to data released by the USDA FAS on Aug. 4.

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U.S. operatable biofuels production capacity was down slightly in May, according to data released by the U.S. Energy Information Administration on July 29. Feedstock consumption, however, was up when compared to both the prior month and May 2021.

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The first phase of Marathon Petroleum's renewable diesel conversion project at its Martinez refinery in California is expected to be mechanically complete by the end of the year, according to comments made by President and CEO Michael Hennigan.

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CVR Energy Inc. began operations at its newly converted renewable diesel unit at its Wynnewood refinery in Oklahoma in mid-April. That unit processed approximately 3,100 barrels per day of vegetable oil feedstock during the second quarter.

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Representatives of Shell International Petroleum Co Ltd. and Deutsche Lufthansa AG have signed a non-binding MOU for exploring the supply of SAF by Shell to the Lufthansa Group for seven years at airports across the globe, starting in 2024.

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Representatives of Shell International Petroleum Co Ltd. and Deutsche Lufthansa AG have signed a non-binding MOU for exploring the supply of SAF by Shell to the Lufthansa Group for seven years at airports across the globe, starting in 2024.

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Valero Energy Corp. released second quarter financial results on July 28, reporting record high renewable diesel production volumes and the sale of the company's 110 MMgy ethanol plant located in Jefferson, Wisconsin.

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Neste released second quarter financial results on July 28, reporting robust demand for renewable products during the three-month period and record quarterly comparable sales margin of $865 per ton, up from $700 per ton during the Q2 2021.

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The U.S. EPA has released updated renewable identification number (RIN) data showing that nearly 1.85 billion RINs were generated under the Renewable Fuel Standard in June, up from 1.77 billion RINs generated during the same month of 2021.

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Technip Energies has been awarded a significant contract by Neste for the expansion of their renewable products production capacity in Rotterdam, the Netherlands, as part of the existing partnership agreement between Technip Energies and Neste.

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The U.K. government on July 19 released its Jet Zero strategy. The initiative, in part, requires at least 10 percent SAF use by 2030. It also aims to kickstart a domestic SAF industry, supported by a new £165 million Advanced Fuels Fund.

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Demand for biodiesel and renewable diesel in the European Union was up in 2020 and 2021 despite the COVID-19 pandemic. That growth, however, is expected to stagnate in 2022, according to a report filed with the USDA.

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Horizon Power is pleased to announce it has signed a non-binding memorandum of understanding with FutureEnergy Australia to investigate opportunities to establish a renewable diesel industry in regional Western Australia.

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U.S. biofuels consumption has risen in 2022 and that growth is expected to continue, according to the U.S. EIA's latest Short-Term Energy Outlook, released July 13. Renewable diesel is expected to account for much of the increase.

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U.S. operable production capacity for ethanol and renewable diesel expanded in April, while biodiesel capacity fell slightly, according to data released by the U.S. EIA on July 5. Feedstock consumption was up when compared to April 2021.

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The U.S. Department of Energy on June 28 released its 2022 U.S. Energy and Employment Report, which includes new data on employment in the biofuels and bioenergy sectors. In general, employment in these sectors was up when compared to 2020.

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The Canadian government on June 29 published final Clean Fuel Regulations, which will require fuel producers and suppliers to meet increasingly stringent carbon reduction goals for gasoline and diesel.

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Members of the European Parliament (MEPs) on the Transport and Tourism Committee on June 27 voted 25 to six in favor of adopting a draft negotiating mandate on the ReFuelEU aviation rules, which sets a goal for sustainable aviation fuel (SAF) use.

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Neste Corp. has made the final investment decision to invest into new renewable products production capacity in Rotterdam. The decision is based on demand for renewable products growing substantially with customers' higher climate ambitions.

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The Qantas Group and Airbus will invest up to US$200 million to accelerate the establishment of a SAF industry in Australia in a landmark agreement signed on June 19 by Qantas Group CEO Alan Joyce and Airbus CEO Guillaume Faury.

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