Solazyme’s Parity-Cost, Algae-Based Biodiesel on Sale to Public
Jim Lane $27 per gallon? $15 per gallon? Fooey! Try algae-based fuels at “the same cost as regular diesel.” Month-long pilot program kicks off in the San Francisco Bay Area. In California, Propel Fuels and Solazyme (SZYM) are bringing algae-derived fuel to retail pumps for what we believe to be the first time in history. The two leading renewable fuel brands have come together to offer Solazyme’s algae-based SoladieselBD to drivers through Propel’s Bay Area network of retail renewable fuel locations. The month-long pilot program provides the industry’s first opportunity to test consumer response to this advanced...
Propel Fuels’ Sales of Neste Renewable Diesel Jump 15x
Jim Lane West Coast renewable fuel retailer says the launch of 100% drop-in renewable diesel has spiked sales on a per-outlet basis 5X jump in renewable content, and 3X jump in gallons sold. In California, Propel Fuels is reporting a 15X jump in per-outlet sales of renewable fuel for diesel engines, based on a 3X increase in gallons sold of its new Diesel HPR fuel and 5X increase in renewable content for Diesel HPR (100% renewable content, vs the 20 percent renewable content in B20 biodiesel, which Propel formerly sold). With the news, Propel is expanding...
Darling’s Renewable Diesel Diamond
In July 2013, Darling Ingredients (DAR: NYSE) and its joint venture partner Valero Energy (VLO: NYSE) commissioned the largest facility in North America to convert waste animal fats into renewable diesel. The facility was strategic located adjacent to Valero’s petroleum refining installation in Norco, Louisiana.
At the time the facility was capable of pumping out 12,000 barrels of renewable diesel per day that could be dropped directly into Valero’s distribution network and blended with fossil fuel. Even at that production level the facility showed promise to deliver strong dividends back to its owners. The partners named their venture Diamond Green Diesel and celebrated the unparalleled achievement.
The two partners in Diamond Green...
Neste Sells 1 Billionth Gallon of Renewable Diesel
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,”...
Neste Renewable Diesel Capacity Hits 2 Million Tons But Feedstock Constraints Loom
Finland’s Neste Oil Corporation
(NEF: F)
brought its fourth renewable diesel plant on-line in September 2011,
earning bragging rights to the world’s largest facility of its
kind. Located at the Port of Rotterdam, the plant has the
capacity to produce 800,000 metric tons of renewable diesel that
Neste brands NExBTL and claims is the “cleanest and highest-quality
renewable diesel on the market today.” Along with Neste’s
three other plants already in operation in Finland and Singapore the
fourth plant in Denmark brings Neste’s total production capacity to
2.0 million metric tons per year.
EPA’s 2018 Renewable Fuel Targets Disappoint Producers
In Washington, the Environmental Protection Agency released its final Renewable Fuel Standard renewable volume obligations for 2018. The agency finalized a total renewable fuel volume of 19.29 billion gallons , of which 4.29 BG is advanced biofuel, including 288 million gallons of cellulosic biofuel.
As the Renewable Fuels Association explained: “That leaves a 15 BG requirement for conventional renewable fuels like corn ethanol, consistent with the levels envisioned by Congress in the 2007 Energy Independence and Security Act. The 2018 total RFS volume finalized today represents a minor increase (10 million gallons) over the 2017 standards, and a modest increase...
REG: A Little ADM With Better Growth Prospects
Jim Lane At 8:30am, there’s a standing daily meeting of the key traders in Gary Haer’s sales group at Renewable Eenergy Group's (NASD:REGI aka REG) headquarters in Ames, Iowa. And they’re not kidding. Everyone stands. For 15 minutes there’s the rat-a-tat-tat of rumor, fact, competitors, pricing, spreads, the who’s selling what and where, the buying and selling of diesel, renewable diesel and biodiesel across North America. On most minds this Friday morning, what’s going to happen with corn prices? The USDA late on Thursday released its annual spring plantings report and it was a shocker. Corn acres...
Conversions To Renewable Diesel
by Helena Tavares Kennedy
The seasons are changing in many parts of the world right now, but what really is changing this autumn is how the world is looking at renewable diesel. Phillips 66 and REG’s announcement about a new renewable diesel plant on the U.S. West Coast planned for 2021 comes after a notable increase in refineries that are being converted and changed over to renewable diesel. Change is good, especially in this case.
As Bob Dylan sang, “For the loser now, Will be later to win, For the times they are a-changin’.” And who knew he was singing about the RFS...
Biodiesel Tax Credit Back In US Budget Deal
by Jim Lane
In Washington, the US Congress passed its budget deal, and among the items in the deal was a retroactive restoration of the $1 per gallon biodiesel tax credit for 2017. The bill did not include a provision for 2018 and future years.
The budget compromise had run into headwinds in the Senate, in the form of a voting delay imposed by Rand Paul of Kentucky, while opposition in the House from a group of Democrats and hardline conservatives had put the bill into some degree of jeopardy.Renewable Energy Group CEO Randy Howard said “We are pleased that Congress recognized...
EPA increases US Renewable Fuel Standard Volumes, But Only Slightly
Jim Lane In Washington, the U.S. Environmental Protection Agency announced final volume requirements under the Renewable Fuel Standard program today for the years 2014, 2015 and 2016, and final volume requirements for biomass-based diesel for 2014 to 2017. This rule finalizes higher volumes of renewable fuel than the levels EPA proposed in June, boosting renewable production and providing support for robust, achievable growth of the biofuels industry. “The biofuel industry is an incredible American success story, and the RFS program has been an important driver of that successcutting carbon pollution, reducing our dependence on foreign oil, and sparking...
Biodiesel’s Big Comeback
Jim Lane Filling up with Biodiesel in 2007. Photo source: Tom Konrad Darling of the mid-2000s, still beloved by its many fans biodiesel is increasingly a key to delivering advanced biofuels volumes now and even more so between now and 2022. Presentations by NBB CEO Joe Jobe and REG CEO Daniel Oh at ABLC 2013 explained the how and why. In the excitement over cellulosic biofuels and drop-ins, it is easy to forget that the backbone of advanced biofuels in the US and around he...
FutureFuel’s Future
by Debra Fiakas CFA Last week the president of renewable chemicals producer FutureFuel Corporation (FF: NYSE) turned in his resignation. Lee Mikles is around sixty and seems a bit young for retirement. He had been with the company from day one and served as the chief executive officer through the end of 2012. He owns 2.3 million shares of FutureFuel stock or about 5% of the outstanding shares. Maybe Mikles is just looking for a better paycheck. The last time the company disclosed compensation, Mikles was down for $36,000 in compensation as a director. Along with...
Waste Vegetable Oil: A Slick Way to Biofuel Your Portfolio
In August, I argued that Biodiesel stocks could be in trouble from more efficient ways to turn the oils and fats they use as feedstock into fuel, and concluded the article by saying that the likely winners are suppliers of oils and fats, not the processors. James Kingsdale, of Energy Investment Strategies has been thinking along the same lines. Last week he wrote an excellent overview of the major biofuels industries, including some stock picks. One of those stock picks was the diamond in the rough I wish I had known about when I wrote Biodiesel's Nightmare: Renewable Diesel...
EPA Ups Renewable Diesel Mandate By 30%
Jim Lane Biodiesel pump photo via Bigstock What will bigger targets mean for producers, livestock, obligated refiners, and the diesel-using public? In Washington, the EPA issued its final rule for 2013 establishing 1.28 billion gallons as next year’s biomass-based diesel volume requirement under the Renewable Fuel Standard (RFS), up from 1.0 billion gallons in 2012. “This 1.28 billion gallon level is in-line with what the EPA had originally proposed for 2013 dating back to last year,” commented Raymond James energy analyst Pavel Molchanov. “However, the...
Soladiesel Algae Fuel is a Monster Hit
Jim Lane Sales increase 35 percent at participating test sites and survey results reveal driver preference for algae-based Soladiesel over conventional fuels. In California, Propel Fuels and Solazyme (SZYM) announced that sales grew by 35 percent at Propel stations, offering SoladieselBD in a B20 blend during a 30-day retail pilot program, compared to non-test sites. The pilot was conducted at Propel’s Clean Fuel Points in Redwood City, San Jose, Berkeley, and Oakland. In addition, a follow-on consumer preference study with Propel’s customers found 92 percent of participants noted that they would be more likely to...
Ethanol and Biodiesel: Production Cost and Profitability
For a number of years, this (now old and outdated, but) very useful chart has been in circulation in energy circles, mapping the supply of energy to the world by looking not at prices, but at production costs. For one thing, it goes a long way to explaining why the price of oil can tumble so quickly when there is a fall off in demand, and explains why OPEC is troubled by unconventional oil in a way it is not so bothered by other energy sources such as renewable fuels. Renewables not only have been traditionally at the...
