11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
The Environmental Protection Agency (EPA) reported a solid rise in renewable fuel consumption during May. Renewable Fuel Standard (RFS) credit generation increased 19 percent from April with 1.26 billion credits recorded. April output had fallen 33.5 percent from March but is showing signs of strong recovery in May. Volumetric consumption in May was up 29 percent to 1.12 billion gallons. The D6 and D4 categories led the way as non-cellulosic ethanol production climbed 33 percent within the D6 category while non-ester renewable diesel output was up more than 25 percent in the D4 category.
Biomass-based diesel credit and volume generation has not suffered to the same extent at ethanol during…