Renewable Diesel – Strong Q2 Despite Economy

The pandemic is showing there is a difference between ethanol and renewable diesel production during the economic downturn in recent months. Comments from one biofuels producer who makes both products highlights the reality. “The price of ethanol manufactured by our ethanol segment has also decreased due to a decline in demand. Because ethanol is primarily blended into gasoline, ethanol demand declined along with the decline in the demand for gasoline. Demand for renewable diesel, however, has not significantly declined due to continued demand for this low-carbon fuel despite the current economic environment; therefore, our renewable diesel segment has not been impacted as significantly as our refining and ethanol segments.”

Not surprisingly, the current economic environment has led other fuel producers to examine the renewable diesel sector as a way to mitigate RIN exposure using a strong margin…