Renewable Diesel and Biodiesel

Neste reaches 1B gallons renewable diesel sale, runs in fire trucks, ambulances and school vehicles In Texas, Neste U.S., Inc. (NEF.F, NESTE.HE, NTOIF, NTOIY) is celebrating its 1 billionth gallon of Neste MY Renewable Diesel sold in North America which has effectively helped reduce more than seven million metric tons of greenhouse gas emissions in the Earth’s atmosphere. This is the equivalent of removing 1.6 million passenger vehicles from the road for one year. “There’s never been a better time to take a closer look at the steps we’re taking to ensure we’re leaving our planet in a healthier state for future generations,”...

by Jim Lane In another small but sharp blow to the Trump Administration’s strategy for American manufacturing revival, news arrives from Texas of a second smaller biodiesel shuttering owing to “ challenging business conditions and continued federal policy uncertainty,” as Renewable Energy Group (REGI) phrased it in announcing the closure of its15 million gallons per year New Boston, Texas biorefinery.  The company is currently working with plant employees on relocation opportunities within the production network. The tax credit issue The forces impacting the US biodiesel industry at present are complex, but REG in this case is pointing the blame at the biodiesel tax...

by Bruce Comer, Ocean Park Advisors More industry players chose to develop and build new capacity rather than buy plants The North American biofuels industry experienced the fewest merger and acquisition transactions in recent history in 2017. There were only six M&A transactions, with a total estimated value of more than $100 million. They involved eight plants with 297 million gallons per year (MGPY) of production capacity. Half of these deals were for non-operating plants. A fourth deal was for a sub-scale demonstration plant. Contributing to the limited deal flow, two historically active acquirers, Green Plains and REG, did not close...

by Jim Lane “EPA Reneges on Trump’s Biofuels Deal”, said the Iowa Renewable Fuels Association in reacting to the US Environmental Protection Agency’s new plans for fulfilling federal renewable fuel requirements. EPA released a proposed supplemental rule for the Renewable Fuel Standard today, and the bioeconomy is up in arms, and the outrage is centered in farm country, once a Trump bastion of support. “IRFA members continue to stand by President Trump’s strong biofuels deal announced on Oct. 4, which was worked out with our elected champions and provided the necessary certainty that 15 billion gallons would mean 15 billion gallons, even after...

“The global economy likely faces an economic crash of horrible proportions in 2020, not for want of a nail but want of low-sulfur diesel fuel,” writes renowned energy analyst Phil Verleger in a note this month titled “$200 Crude, the Economic Crisis of 2020, and Policies to Prevent Catastrophe”. Not good timing for a White House re-election effort if, as expected, the blame falls on lack of preparedness in the 2017-2020 run-up to the projected crisis.. It’s a dire scenario but there’s hard data behind it, and though few go as far as Verleger, almost every expert is warning of a...